Editor's note: This brief was summarised by The Property AI Team from a report by The Negotiator. Read the original article for full details.
Government Confirms Plans for Independent Regulation of Letting and Estate Agents
The Government has confirmed that estate and lettings agents will be regulated, with plans announced for independent regulation of property agents. The announcement, made by the Ministry of Housing, Communities and Local Government (MCHLG) as part of its latest move on leasehold reform, says the changes will give leaseholders, tenants and homebuyers better rights and protections.
Licensing and qualifications for agents
Under the plans, property agents will need a licence to operate, as well as appropriate qualifications. Agents who fall foul of the required standards could have their licences taken away by the regulator.
The department says a regulator can set codes of practice, such as standards of conduct and proper complaint handling for those it regulates.
Leasehold reform measures
Alongside the regulation plans, the Government says it will cap fees where homeowners need freeholder permission — for example, for keeping a pet. These powers will also cover privately managed estates, where homeowners can face charges for minor cosmetic changes to their properties.
As well as permission fees, the legislative changes will clamp down on administrative fees, where landlords charge for providing documents on request, such as building safety certificates, or even for simply notifying them of a change in mortgage provider. A public consultation will be launched on the scope of what should be capped and the amount for each item.
What happens next
The Government says the measures will "fundamentally rewire homeownership", supporting over 5 million existing leaseholders and future homeowners, who will benefit from stronger control, powers and protections.
No timeline was revealed, but the statement says the Government is committed to bringing forward these changes as soon as possible.
The announcement comes more than seven years after Lord Best's Regulation of Property Agents (RoPA) report recommended minimum qualifications and standards in the estate and lettings agency sector.
For letting agents and inventory clerks, the confirmation of licensing and qualification requirements is a significant development for the sector, though details on timing and the exact scope of the regime have yet to be set out.
Source: The Negotiator