The UK government confirmed on 29 September 2026 that it will introduce independent regulation of property agents and new powers to cap fees charged to leaseholders, according to a statement from the Ministry of Housing, Communities and Local Government (MHCLG) also reported by PropertyWire. Property agents will be required to hold a licence and “appropriate qualifications” to operate; an independent regulator will set codes of practice on conduct and complaint-handling, and will have the power to revoke licences from agents who fail to meet required standards. Separately, the government will legislate to give the Secretary of State powers to cap fees leaseholders are charged for landlord permissions — such as keeping a pet or making cosmetic changes — plus administrative charges for items such as building safety certificates and notifying landlords of a change in mortgage provider. A public consultation will follow on which fees are capped and at what level.
MHCLG said the package is designed to support “over 5 million existing leaseholders and future homeowners.” The fee-cap protections also extend to homeowners on privately managed freehold estates who face similar permission and administrative charges, not only leasehold flat owners. On which property agents the new regulator will cover, the reporting diverges: PropertyWire’s article on the licensing measure describes it applying to “estate and letting agents,” while its companion article on leasehold-agent regulation states the new rules apply “specifically to leasehold managing agents rather than traditional high street estate agents or lettings agents.” MHCLG’s own statement refers only to “property agents” without specifying scope.
The announcement is part of the government’s wider leasehold reform programme, following earlier changes under the Leasehold and Freehold Reform Act and the Renters’ Rights Act, including the abolition of Section 21 “no-fault” evictions and a one-month cap on advance rent. MHCLG said this is “the first time ever” the government has moved to introduce independent regulation of property agents. PropertyWire also reported that the government has committed to publishing a non-statutory Code of Practice for property agents, with the possibility of putting compliance on a statutory footing considered for the future.
MHCLG said it “is committed to bringing forward these changes as soon as possible and will set out more information in due course.” Beyond that, no regulator has been named, no licence fee or qualification level has been set, no fee-cap categories or amounts have been finalised, and no commencement date has been given — those details await the promised public consultation, according to the government’s statement and PropertyWire’s reporting.
References
GOV.UK (Ministry of Housing, Communities and Local Government) – Government goes further to protect leaseholders / PropertyWire – Government confirms mandatory licensing for property agents / PropertyWire – Government confirms regulation of leasehold managing agents
