If the plans are implemented as proposed, agents can expect clear templates and reporting duties, tighter response times, and, for block managers, mandatory Level 4 qualifications backed by enforcement. Section 20 changes should cut avoidable delay on routine works while keeping proper checks on large, long-term projects. The push to digital will streamline processes, but agents will still need robust arrangements for leaseholders who require paper copies.
Qualifications and enforcement: raise standards properly
Propertymark has consistently argued for full statutory regulation of agents, with qualifications, a statutory code and strong enforcement, to protect consumers across sales, lettings and block management. The consultation’s qualification proposals are a step towards that framework and align with our recommendations.
We support a minimum Level 4 qualification for managing agents, given the complexity of leasehold arrangements. We also propose modular routes so experienced property professionals can transition into block management efficiently.
The UK Government should assign a strong role for professional bodies in the enforcement of this standard and require membership as a prerequisite to practice in an agency.
Standardisation will reduce cost and error
Greater transparency benefits all parties involved – leaseholders would have a clearer understanding of their charges, and managing agents who can justify charges will deal with fewer disputes.
A new schedule of communications will be put in place for leaseholders, so they can expect to receive standard documents over the course of a year. These will include a new annual report, a standardised service-charge demand, and a notice of future demands.
Regulations that set out what must be included in these communications should ensure managing agents can add details, such as the expected disruptions linked to major works, and any unique or non-standard information about the building that may be important for residents to know.
Leaseholders will also benefit from extended rights to obtain documents, and whilst we agree with the proposed lists of information that can be requested and the right to retrieve documents for up to six years, the 28-day response time is too long and should be reduced to 14 days, reflecting what our members already achieve.
Better records support agents and assist sales
Prescribed information in standard formats will make it much easier to transfer management of a property between agents, which our members have reported can be a frustrating process when record-keeping is poor. It will also enable agents to provide better upfront information when listing a leasehold property for sale, both to speed up the transaction and to comply with their obligations under the Digital Market, Competition and Consumers Act 2024.
Reform Section 20 to be faster and more proportionate
Currently, processes for conducting ‘major works are outdated and often do not give residents enough notice of costly and disruptive projects. MHCLG proposes to adopt recommendations made by Lord Best in the Regulation of Property Agents report, including mandatory reserve funds, long-term Asset Management Plans (AMPs), and raising the threshold for consultation from £250 per leaseholder to £600.
Instead of a single flat figure, we propose a baseline, with higher thresholds for larger blocks to reflect the higher per-unit administration and works’ costs. We are also in favour of a shorter consultation period and a clear deadline to start works, so everyone knows when they must engage.
Next steps
The UK and Welsh Governments will use consultation feedback to draft secondary legislation to implement the Act and take forward further reforms. We will keep members updated as regulations are developed and timelines are confirmed.
