Leasehold and Freehold reform
The first part of the consultations focuses on details required to implement measures from Part 4 of the Leasehold and Freehold Reform Act 2024. This includes seeking views on the detail to implement measures on:
- Better service charge transparency, including new standardised service charge demand forms, annual reports, service charge accounts and administration charges.
- Improving buildings insurance transparency, including what information should be provided to leaseholders, so they have assurance they are getting fair value and are better able to challenge any unreasonable insurance charges.
- Rebalancing the litigation costs regime and removing barriers for leaseholders to challenge their landlord.
The second part of the consultation focuses on potential new reforms. In particular, it seeks views on:
- Reforming the Section 20 ‘major works’ procedure that leaseholders must go through when they face large bills for such works.
- Considering the case for greater protections for leaseholders paying fixed service charges, protections for client money, or improvements to the process for appointing a manager in cases of serious management failure (the “Section 24 process”).
- Opportunities to encourage the provision of information and services digitally to be more accessible and reduce costs but also ensuring safeguards so that all leaseholders receive the information they need.
Mandatory qualifications for Managing Agents
Importantly, the second part of the consultation also looks at introducing mandatory qualifications for managing agents to ensure that all agents have the knowledge and skills they need to provide a good service for leaseholders.
Propertymark met officials from the Ministry of Housing, Communities and Local Government in April to discuss the proposals and ensure the role of professional bodies, continued professional development and a code of practice are utilised as part of the plans. We also want to ensure that any proposals involve mandatory qualification requirements for sales and letting agents, forming an integrated blueprint for future reform across the property sector.
Propertymark engagement
The consultation closes on Friday 26 September 2025 and Propertymark will be engaging with members throughout the Summer. Any views, or if you want to be involved in the consultation process, contact [email protected].
Propertymark has long campaigned for reform of the leasehold system, including reducing costs and improving transparency to support agents and protect consumers. Proposals for new standardised service charge demand forms are welcome, but the reforms should go further. It must include the implementation of a code of practice and disclosure document concerning event fees in specialist retirement developments as drafted by the Law Commission in March 2017.
We continue to engage constructively with the UK Government on measures to introduce mandatory qualifications for Managing Agents. Professional bodies, continued professional development, and a code of practice must be utilised as part of the plans. We must also ensure that any proposals involve mandatory qualification requirements for sales and letting agents, to drive up standards and protect consumers when buying, selling and renting homes regardless of tenure, whilst also forming an integrated blueprint for regulatory reform across the property sector.
