Government Plans Licensing Rules for Property Agents and New Leaseholder Protections

The UK Government has announced plans to introduce new regulation of property agents alongside further protections for leaseholders and homeowners living on privately managed estates.

The proposals, announced on 29 September 2026, include licensing requirements for property agents, new professional standards and potential restrictions on certain fees.

The Government says the reforms are intended to improve accountability in a sector where leaseholders can face substantial costs and disputes over property management.

Property agents could require licences

Under the proposed approach, property agents would be required to obtain licences and hold appropriate qualifications.

An independent regulator would be responsible for setting standards, including expectations around professional conduct and complaint handling.

The regulator could also be given powers to withdraw licences where agents fail to meet the required standards.

This would represent a significant change for the management and property agency sector.

However, the Government has not yet implemented the complete proposed regulatory framework.

New restrictions on leaseholder fees

The Government is also planning measures to address charges that leaseholders may face when requesting permission for certain activities.

Examples include fees for obtaining consent to keep a pet or make minor alterations to a property.

Additional administrative charges, such as fees for providing documents, are also among the areas being considered.

The Government intends to legislate to create powers enabling caps to be introduced.

A public consultation is expected to determine which fees should be covered and the appropriate limits.

No final schedule of fee caps has been established through this announcement.

What about privately managed estates?

The proposals are not limited to traditional leasehold flats.

Homeowners living on privately managed estates can sometimes face charges relating to estate management or permission for changes to their homes.

The proposed powers could also cover certain fees imposed in these circumstances.

This broadens the potential impact beyond conventional leasehold arrangements.

Who could benefit?

The Government estimates that more than five million existing leaseholders could benefit from the wider programme of reforms.

Potential advantages include clearer professional standards, improved complaint procedures and stronger controls over certain fees.

Property agents, landlords and management companies may also face additional compliance obligations.

The exact effect will depend on the final legislation and regulatory system.

Why this matters

For many homeowners, the cost and administration of maintaining or selling a leasehold property can be complicated.

Disputes over service charges, management arrangements and permission fees can create financial uncertainty.

Stronger regulation could provide clearer routes for raising concerns and holding property agents accountable.

However, whether the proposed system delivers meaningful protection will depend on its enforcement powers and practical implementation.

What happens next?

Further legislation, consultation and implementation details are expected.

Until the relevant rules take legal effect, leaseholders should not assume that all proposed fee caps or licensing requirements already apply.

Keep Updated UK will follow the development of the reforms and examine their implications for leaseholders, homeowners, landlords and property professionals.