The government has announced plans to introduce regulation of property agents, including mandatory licensing and appropriate qualifications for estate agents, letting agents and property management agents. However, key details about how the new regime would operate have yet to be published.

The proposed regulator would have powers to set codes of practice covering matters such as standards of conduct and complaint handling. Agents would be required to obtain a licence and hold appropriate qualifications, with the regulator able to remove licences where the required standards are not met.

The government has not yet specified qualification levels, licensing costs, implementation dates or transitional arrangements. It has also not confirmed the regulator’s identity or precisely which activities and individuals would fall within the regime. These are important outstanding details for understanding how the proposed requirements would apply to letting and property management businesses.

The announcement goes further than the government’s previous home buying and selling reform roadmap, which proposed consulting on mandatory qualifications for estate and letting agents. It also follows the Regulation of Property Agents working group’s recommendations in 2019 for an independent regulator, a mandatory code of practice and minimum qualification requirements.

Licensing requirements and timetable remain unclear

Propertymark welcomed the commitment. Nathan Emerson, its CEO, said:

“Propertymark has long campaigned for action in this area and welcomes the UK Government’s commitment to stronger regulation of property agents.

“Professional property agents are increasingly being undercut by unqualified and inexperienced operators who are not held to the same professional standards.

“This is unfair to responsible businesses that invest in qualifications, training and compliance, and leaves consumers exposed to poor practice without adequate protection.

“Building on the professional standards, structures and good practice already established across the sector will be critical to making this a success and ensuring the new regime is understood, enforced and adhered to consistently.

“Propertymark looks forward to working constructively with the UK Government to ensure regulation delivers higher standards, effective enforcement and a genuinely professional property sector.”

Permission and administration fees also in scope

Alongside agent regulation, ministers plan to legislate for powers to cap permission and administration fees charged to leaseholders and homeowners on privately managed estates. A public consultation would determine which charges should be covered and the level of the caps.

The proposals address permission fees for requests such as keeping a pet, as well as charges relating to minor cosmetic changes on privately managed estates. Administrative charges identified in the announcement include fees for providing documents, such as building safety certificates, or for notification of a change in mortgage provider.

The government says it is committed to bringing forward the changes as soon as possible and will provide further information in due course.