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The UK Government has confirmed it will move forward with plans to end hidden commission payments on buildings insurance — a change welcomed for improving transparency, but one that raises new challenges for managing agents and landlords. Propertymark has warned that while reforms aim to protect leaseholders, unanswered questions around costs, VAT, and permitted activities could have significant consequences for the sector.
The Leasehold and Freehold Reform Act 2024 (LAFRA) was fast tracked through Parliament in May 2024, ahead of the last UK general election, but not all sections of the legislation have yet been brought into force. The reforms affect approximately 4.5 million leasehold homes in England and Wales, but are now being challenged by freeholders, who claim the provisions infringe their human rights.
The UK Government has set a deadline for the removal of unsafe cladding in England and introduced a new Remediation Bill to ensure that building owners will face legal consequences if they do not rectify life-critical fire safety defects in residential buildings over 11 metres in height by the end of 2031.
The UK and Welsh Governments have, today, 4 July 2025, launched a two-part consultation that includes proposals seeking to hold landlords and managing agents to account — Strengthening Leaseholder Protections Over Charges and Services.