Leaseholders will be given extra protections from “cowboy” property agents and hidden fees, Angela Rayner has announced.
The housing secretary told Labour’s annual conference the government would legislate for a new independent regulator and launch a consultation to cap “rip off” administrative fees.
The changes would cover the estimated five million leaseholders in England and Wales who can be forced to pay a landlord for simple changes to their home, despite having bought it.
Rayner told party activists she had heard of leaseholders being charged £250 for permission to own a pet and £400 to change their front door.
She said people in these situations were “powerless against the vested interests that only take, while giving nothing back in return”.
The government is already legislating, external to ban new leasehold flats, described in Labour’s 2024 election manifesto as a “feudal” system where people own the right to occupy a property via a lease for a limited number of years from a freeholder, or landlord, who owns the land.
Through the Commonhold and Leasehold Reform Bill, ministers want a commonhold system where residents collectively own and manage their buildings.
Now, Rayner is taking aim at the web of management companies that operate between leaseholders and their effective landlords.
She said the sector had many decent businesses which were “undermined by far too many cowboys, crooks and con artists”.
People excited at buying their own homes are “tricked” into using in-house services, meaning that “with no transparency or accountability, vultures can take advantage”, Rayner added.
“We will legislate for an independent regulation to rein these cowboys in,” she said, announcing legislation for an independent watchdog of property agents.
This includes estate agents, managing agents and estate managers.
