What it means for Propertymark members
The UK Government's confirmation that property agents will become subject to licensing and qualification requirements represents a landmark moment for the profession. For many years, Propertymark has called for a regulatory framework that raises professional standards and provides greater consumer confidence across the sector.
However, significant questions remain regarding implementation, transitional arrangements and the role of existing qualifications and professional body memberships.
Propertymark’s conversation with officials from the Ministry of Housing, Communities and Local Government shortly after Angela Rayner’s conference speech discussed the possibility of an enhanced Building Safety Regulator taking an overarching role which would include regulation of property agents, although these proposals are at an early stage.
We will continue to work closely with the UK Government and policymakers as further details emerge, ensuring members' interests are represented throughout the development of the new regulatory framework. We also continue to be heavily involved in work on reform of homebuying and selling as a member of the Homebuying and Selling Council steering group.
Regulation of estate and letting agents around the UK
Learn more about where we are with the overall regulation of the industry and how it can vary in different countries.
Stronger powers against poor-quality rental homes
In his first Labour Party Conference speech as Prime Minister, Andy Burnham placed housing at the centre of the UK Government's plans, describing a secure home as the foundation for opportunity and economic growth. Drawing on his own family's experience of home ownership, Burnham outlined a programme of housing reform that combines a major expansion of social housing with increased intervention in the private rented sector.
Among the most notable announcements was a commitment to tackle substandard rented accommodation. Burnham said landlords letting the "worst quality homes" would be warned to improve conditions, but where they failed to act, councils would be given greater powers to acquire those properties and bring them back into use. He also indicated the UK Government is prepared to legislate further if necessary.
Alongside these proposals, Burnham confirmed plans for the largest council house building programme in decades, reforms to Right to Buy, and measures to bring empty homes back into use through greater local authority intervention.
Addressing poorly maintained properties should remain a key concern, with local authorities across England working closely with residents, landlords and property agents to understand why properties may fall below the required standard.
Every case will have different circumstances, so any proposals must be proportionate and recognise the individual circumstances of the property and those living in it.
Regulation of property agents confirmed
The announcement was made as part of a wider package of housing and leasehold reforms led by Angela Rayner, Deputy Prime Minister and Secretary of State for Housing. Under the proposals, property agents would be required to obtain a licence to practise and hold appropriate qualifications. An independent regulator would oversee the sector, set professional standards and codes of practice, and have the power to revoke licences where agents fail to meet required standards.
The new regime is intended to provide stronger protections for leaseholders, tenants and homebuyers. The regulator would be expected to oversee issues such as professional conduct, competence and complaints handling.
While the principle of regulation has now been confirmed, several key details remain outstanding. The UK Government has not yet announced how the regulator will be structured, what qualifications will be required, how licences will be funded, or when the new system will be introduced.
Professional property agents are increasingly being undercut by unqualified and inexperienced operators who are not held to the same professional standards. This is unfair to responsible businesses that invest in qualifications, training and compliance, and leaves consumers exposed to poor practice without adequate protection.
Building on the professional standards, structures and good practice already established across the sector will be critical to making this a success and ensuring the new regime is understood, enforced and adhered to consistently.
Further leasehold reforms set out
The regulation announcement forms part of a broader package of leasehold reforms, including new powers to cap a range of fees charged to leaseholders and homeowners on privately managed estates, such as charges associated with permissions, administration, and the provision of documents. A public consultation will determine which fees should be capped and at what level.
