In the House of Commons last week, Members of Parliament discussing the Leasehold and Freehold Reform Bill underscored the necessity for property agent regulation.
The bill aims to simplify processes for leaseholders, including extending leases, buying freeholds, and managing buildings and seeks to ban the sale of new leasehold houses.
Former Housing Minister Rachel Maclean MP emphasised the need for broader regulation in the property management sector. She urged: “There is a need for regulation of the property management sector more broadly…. I urge the Minister to continue to push ahead with a reform that must happen, if not on this side of a general election, then on the other side.”
Sir Peter Bottomley MP, Chair of the Leasehold and Commonhold Reform APPG, also highlighted concerns about the role of managing agents in leasehold blocks, stressing the need for a diverse range of reputable managing agents.
Propertymark has been a long-time advocate for the regulation of property agents and leasehold reform. Their efforts contributed to the introduction of the Leasehold Reform (Ground Rent) Act in June 2022 and the New Homes Ombudsman.
Propertymark suggests several areas for reform, including introducing statutory regulation of property agents, phasing out leasehold on new flats, and creating mechanisms to identify and contact freeholders.
Timothy Douglas, head of policy and campaigns at Propertymark, said this about the debate: “The Second Reading debate of the of Leasehold and Freehold Reform Bill has clearly highlighted the need for regulation of property agents and for the UK Government to look seriously at implementing the recommendations in Lord Best’s report.
“Overarching regulation of the sector is needed to support these reforms as well as proposals to change the private rented sector under the Renters (Reform) Bill.
“Regulation of property agents can protect consumers from bad practice and support businesses, ensuring fair competition and a level playing field for all.
“Propertymark will continue to make the case for regulation as the Bill makes its way to Committee Stage.”
