The housing minister has announced strict measures to tackle unfair service fees and what he described as the “wild west” of property management agents. As part of the government’s ongoing reforms to the leasehold system, Matthew Pennycook wants to put an end to practices like overcharging and sudden, unexpected repair fees. To help achieve this, he has initiated a public consultation on proposals, including requiring property managers to provide clearer information about their charges and to qualify as professionals for the first time.
Pennycook emphasized that the aim of the consultation is to address the suffering of leaseholders who urgently need relief. It’s the latest step toward potentially ending the “feudal” leasehold system, which affects 5 million homes in England. The minister pointed out that managing agents play a crucial role in multi-occupancy buildings and will be integral to future housing arrangements. He added that it’s currently too easy to become a managing agent, which has led to numerous poor practices.
The proposed changes to service charges aim to protect millions of leaseholders across the country from hidden and unfair charges. This includes tackling opaque and unjust service charges and other levies. In recent years, Pennycook has been driving changes to the leasehold system, including introducing some aspects of the 2024 Leasehold and Freehold Reform Act.
Despite the government’s pledge for reform, some campaigners express frustration at the pace of change, suggesting that the government is not acting swiftly enough. The 12-week consultation will invite feedback on implementing transparent fees and on ending what many consider to be unfair legal costs. In England and Wales, leaseholders often have difficulty getting clear explanations as to why certain charges are applied.
In addition to these changes, there will be consultation on reforms to how significant repairs are carried out, aiming to give residents more notice and control over costs. Pennycook is also set to publish draft legislation by the end of the year, aiming to eradicate the leasehold system for new-build flats and make it easier to convert existing homes into different tenures. He acknowledged that the resulting legislative package will be ambitious, with many components to align.
Source: https://www.theguardian.com/uk-news/2025/jul/04/housing-minister-vows-to-crack-down-on-property-management-wild-west
