Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
MPs Call for Tougher Leasehold Reform and Agent Regulation
The Housing, Communities and Local Government (HCLG) Committee has called on ministers to strengthen the proposed Commonhold and Leasehold Reform Bill. In a report published today, the cross-party committee described the draft legislation as an important step towards giving leaseholders more control over their buildings, but warned that the reforms do not go far enough.
The committee highlighted the need for further action on ground rents, property management, and service charges. MPs called for stronger protections against excessive fees and urged the government to introduce measures that would give homeowners greater control. The report also recommended the creation of an independent regulator for property management agents.
The committee supported the government’s plan to cap ground rents for existing leaseholders at £250 a year, but said the cap should be introduced by the end of 2027. The report questioned the proposed 40-year transition period for reducing ground rents to zero, suggesting that a 20-year timeframe could provide a fairer balance between leaseholders, freeholders, and institutional investors.
Formal regulation of property management agents was also recommended. The committee called for an independent regulator with powers to penalise rogue agents, including the ability to remove licences.
Florence Eshalomi, chair of the housing committee, stated that many leaseholders have waited too long for reform and now feel trapped in homes with rising costs and concerns about selling. She urged ministers to introduce the final Bill in autumn 2026.
These recommendations are particularly relevant for UK letting agents and inventory clerks, as they could lead to increased regulation and oversight of property management practices.
Source: Mortgage Strategy