Rayner Pledges Crackdown on ‘Cowboy’ Leasehold Agents

Housing Secretary Angela Rayner has announced a sweeping crackdown on what she described as “cowboy” property agents, pledging new legal protections for the estimated five million leaseholders in England and Wales. Speaking at the Labour party conference, Rayner outlined plans for an independent regulator and caps on administrative fees to combat what she termed a system of “injustice.”

The proposed measures aim to shield leaseholders from hidden costs associated with basic home modifications. Rayner highlighted specific examples of alleged abuse, noting that some residents have been charged £250 for permission to keep a pet and £400 to replace their front door. She argued that individuals in these positions are often left “powerless against the vested interests that only take, while giving nothing back.”

Under the government’s proposals, a new independent watchdog would be established to oversee estate agents, managing agents, and estate managers. This regulator would have the authority to set codes of practice, including standards for conduct and complaint handling, and would require all property agents to hold a license. Those failing to meet the required standards would face the risk of having their licenses revoked.

Additionally, the government plans to launch a public consultation to determine appropriate caps on permission and administration fees. These caps would apply to both freehold and privately managed estates, covering charges for cosmetic changes and requests for documents such as building safety certificates. Rayner emphasized that the government intends to introduce the legislation “as soon as possible.”

These announcements build upon existing legislative efforts, including the Commonhold and Leasehold Reform Bill, which seeks to ban new leasehold flats and introduce a commonhold system where residents collectively own and manage their buildings. Labour has previously characterized the current leasehold arrangement as a “feudal” system. Furthermore, a £250 cap on annual ground rents, which had stalled during the recent change in prime minister, is expected to come into force by late 2028, though some MPs are urging the government to accelerate this timeline to late 2027. Rayner indicated her intention to go further by “capping and then scrapping” ground rents.

The housing secretary did not address the government’s target of building 1.5 million homes in England by the next election, a goal she admitted earlier this month had only a “slim chance” of being met. In related announcements, ministers recently introduced a “Your First Home” policy to assist first-time buyers with a 2.5% deposit, and Rayner proposed strengthening council powers to take over empty homes to address homelessness and housing shortages—a move criticized by the Conservative party as a “desperate” attempt to salvage housing targets.