Parts of Lord Best’s Regulation of Property Agents report look set to finally become law in the latest stage of the Government’s leasehold reforms.
The Ministry of Housing, Communities and Local Government unveiled a consultation last week that aims to “switch on” measures in the Leasehold and Freehold Reform Act 2024.
The aim is to give the five million leaseholders in England and Wales more transparency on service charges to hold their managing agents and property managers to account.
Part of the consultation refers to Lord Best’s 2019 ROPA report and backs 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.
It also proposes new standardised service charge demand forms, annual reports, service charge accounts and administration charges.
The service charge forms should spell out clear and detailed information about how service charges are calculated and spent.
The Government said this will make it easier for leaseholders to challenge unreasonable bills and potentially save money where expenses are unjustified, with further reforms to stop them having to automatically pay for landlords’ litigation costs even where they have won their case.
Housing Minister Matthew Pennycook said: “The cost of living remains a pressing concern for leaseholders and many are struggling financially as a result of high and rising service charges, and other opaque and excessive leasehold costs.
“This bold package of reforms will arm leaseholders with greater rights and protections and empower them to challenge poor practice and unreasonable charges and fees – driving up leaseholder living standards as we work to bring the feudal leasehold system to an end as part of our Plan for Change.”
Justin Young, chief executive of the Royal Institution of Chartered Surveyors (RICS), described the announcement as an important step forward in raising standards and improving transparency in the leasehold sector.
He said: “Accountability and professionalism in property management is essential to give leaseholders confidence.
“Mandatory qualifications for managing agents will help to achieve this.
“We fully support the Government’s ambition to deliver meaningful, proportionate reform that has lasting benefit for consumers. The consultation recognises that professional bodies play a critical role in delivering trust and confidence. RICS’ work seeks to ensure the highest level of professionalism across our membership – and around 30% of leasehold properties are managed by an RICS Regulated Firm.
“Qualifications alone, however, are only part of the solution. RICS looks forward to working closely with department to achieve their vision, drawing on our deep regulatory experience and existing infrastructure.”
Liam Spender, counsel and head of real estate litigation at Velitor Law and the lawyer leading the Leaseholder Action claim over secret insurance commissions, said: “The Government’s announcement today is a long-overdue lifeline for leaseholders who have been trapped in an unfair system for too long.
“The move to standardise service charge demands and ban landlords from recovering legal costs is a welcome step forward. It will finally put an end to the shell game that leaseholders are forced to play just to trace their own money.
“The success of these reforms will hinge entirely on the quality of the enforcement regime. For too long, freeholders and managing agents have acted as though the rules do not apply to them. Any enforcement system will need real strength and teeth to change that mindset.”
The consultation closes on 26 September 2025.
