Rayner's Plan for Property Agents and Leasehold Fee Caps Explained
Angela Rayner has said the government will legislate to create an independent regulator for property agents and consult on caps to leaseholder fees.
Ms Rayner told Labour's annual conference the package was presented as protection from “cowboy” agents and hidden fees BBC. Agents would need a licence to operate.
What the plan would do
A leaseholder owns the right to live in a property for a fixed term but does not own the building or land. The proposals would cover an estimated five million leaseholders in England and Wales. Housing is devolved, so they would not apply in Scotland or Northern Ireland.
Ms Rayner said some leaseholders had been charged £250 for permission to own a pet and £400 to change a front door. New legislation would create a power to cap such permission and administration fees paid to landlords. A public consultation (a formal call for views) would help decide the level. The caps would cover freehold estates and privately managed estates, where owners own their home but pay for shared areas. A separate consultation would cover administrative fees.
The regulator could set codes of practice on conduct and complaint handling. It could revoke licences from agents who breach the standards. Think of it like a driving licence for agents — it can be taken away if rules are broken.
What happens next
The plan sits alongside action on ground rent, the yearly payment leaseholders make to the landowner. Ministers have already announced a £250 yearly cap on ground rents in England and Wales. They expect it to start in late 2028. Ms Rayner said she was “capping and then scrapping” ground rents.
The Ministry of Housing, Communities and Local Government confirmed on 29 September that leaseholders will be given more rights and better protections under new rules, in a news story titled “Government goes further to protect leaseholders” Ministry of Housing, Communities and Local Government. In her 2023 conference speech, Ms Rayner said “We'll end the mediaeval leasehold system, with root and branch reforms.” Labour
The broader context here is implementation. A regulator with licensing and revocation powers is different from voluntary codes. It would need a register, enforcement staff and an appeals route, and none of that detail has been set out. The figure for any cap has still to be decided. Freeholders, managing agents and developers will want detail on scope, exemptions and existing leases. Leaseholder groups will press for pace, given the late 2028 date for ground rents. Conference pledges also need time in the Commons and the Lords, the two Houses of Parliament, before intent becomes law.
