MPs quiz property management companies over homeowner concerns

The House of Commons Housing, Communities and Local Government Committee has held a one-off evidence session to examine how property management companies operate and the impact this has on homeowners. Held on 17 June 2025, the session explored concerns about high service charges, lack of transparency, and limited control over how estates are managed, issues that Propertymark has repeatedly raised in our calls for regulation.

Low rise apartment block by canal

Evidence from across the sector

MPs heard from campaigners and industry representatives including Lord Best, former Chair of the Regulation of Property Agents (RoPA) working group, and Beth Rudolf, Director of Delivery at The Conveyancing Association, alongside representatives of the Competition and Markets Authority, FirstPort, and The Property Institute.

The Committee examined the experiences of homeowners, particularly those on new-build estates, who face management charges but have no say in how services are delivered or how money is spent. This growing model, commonly known as ‘fleecehold’, often leaves freeholders without basic consumer rights.

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A renewed call for agent regulation

Lord Best reiterated his calls for the UK Government to implement the RoPA recommendations made in 2019, which set out a framework for regulating agents across sales, lettings, and management. Despite cross-sector support, progress has been slow.

Propertymark continues to campaign for RoPA to be delivered in full. We believe regulation must apply to all agents to be effective, with clear standards, mandatory qualifications, and an independent regulator. Without a consistent framework, consumers remain exposed to poor practice and limited redress.

During the session, Beth Rudolph emphasised that the Codes of Conduct and best practice are already in place within the industry, and pushed back on concerns about the cost of regulation, highlighting that annual membership of Propertymark costs under £300.

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Leasehold reform still not reaching consumers

MPs also questioned whether the Leasehold and Freehold Reform Act 2024 will deliver meaningful change, as only a small number of measures have come into effect since it was passed.

Last year, Propertymark published Leasehold and Freehold Reform: What Has Changed?, based on the experiences of our member agents. The findings showed that leasehold properties remain difficult to sell due to short leases, escalating ground rents, and delays in getting information from management companies. Buyers are more likely to negotiate on price or withdraw altogether when issues arise.

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The Labour Government has committed to driving forward the enforcement of the Leasehold and Freehold Reform Act 2024. Propertymark has campaigned on leasehold reform since 2017, including the lack of a ban on new leaseholds, restrictions on ground rent, and no ground rent cap for existing leaseholders. This research, produced in 2023, highlights the ongoing issues and sentiments of Propertymark Member agents and is still prevalent in our campaign to drive change.

Next steps

Although the Committee’s session was a one-off, further scrutiny may follow. Propertymark will continue to work with policymakers to push for reform that protects consumers and supports a professional, accountable property sector.