Leaseholders ‘routinely gouged’ by freeholders, says minister

Leaseholders are being “routinely gouged” by freeholders and the managing agents acting on their behalf, the Housing Minister has said.

Matthew Pennycook, (pictured), said the Government was “taking on vested interests to protect leaseholders from exploitation”.

He made the claim in a post on X.com as he set out plans to cap fees and regulate property agents.

He said ministers would cap what he called exorbitant administration and permission fees, and legislate for the independent regulation of managing agents.

We will cap exorbitant administration and permission fees and legislate for the independent regulation of managing agents.”

His comments came after the Government announced that it will introduce independent regulation of property agents, “giving leaseholders, tenants and homebuyers a route towards better rights and protections”.

New licences

Under new plans, agents will be required to obtain a licence and appropriate qualifications to do the job, with the regulator able to take those licences away if they fall foul of the required standards.

The regulator could also set codes of practice covering conduct and complaint handling.

The likely blueprint is Lord Best’s 2019 Regulation of Property Agents report, which Pennycook has repeatedly said the Government is revisiting.

That report recommended a single regulator covering residential sales, lettings and management, with licensing and minimum qualifications for all agents.

The Ministry of Housing, Communities and Local Government confirmed to The Neg that the regulation of property agents will cover estate, letting and managing agents, as well as estate managers on freehold estates.

Nathan Emerson, Chief Executive of Propertymark,, exclusively told The Neg: “It is positive news that the Government steps in to regulate the sector and ensure the relevant protections are in place to protect consumers.

“Obviously this is a very recent announcement and a considerable amount of work will be required.”

“We look forward to receiving further clarification of the finer details from the department in due course.”

The post Leaseholders ‘routinely gouged’ by freeholders, says minister appeared first on The Negotiator.

Author: Gemma