Ahead of the BBC’s ‘Leasehold Day’ tomorrow, Housing Minister Matthew Pennycook MP has issued a statement on leasehold reform, including ‘at minimum’ mandating qualifications for property managers and likely regulation of managing agent firms. TPI urges every member to read the entire statement in detail.
The statement is generous and detailed, here is a high-level summary:
The 2024 Leasehold and Freehold Reform Act (LAFRA) has faults and needs fixing with further legislation. Also, it does not go far enough, for example ignoring some key Law Commission recommendations. Government can bring forward some bits of LAFRA in regulations and will do so next year. Otherwise, reform campaigners are asked to be patient while further reforms are delivered thoughtfully and carefully, not rushed through like LAFRA. Further primary legislation will be brought forward next year to extend right to manage provisions, reform the management of freehold estates, and much more. The BIG NEWS though, is mandating qualifications for professionals and likely regulation of property management firms.
Mr Pennycook said:
“Managing agents play a key role in the maintenance of multi-occupancy buildings and freehold estates, and their importance will only increase as we transition toward a commonhold future, and so we are looking again at Lord Best’s 2019 report on regulating the property agent sector, particularly in light of the recommendations in the final Grenfell Inquiry report. As part of our response to that report I can confirm that we will strengthen regulation of managing agents to drive up the standard of their service. As a minimum, this should include mandatory professional qualifications which set a new basic standard that managing agents will be required to meet. We will consult on this matter next year.”
Today's announcement is the result of many years of TPI's efforts to raise awareness and elevate standards within the professional building management sector and the Government’s commitment is in large part thanks to the hard work and campaigning of the Institute and the invaluable support of our members to ensure competence and protect residents.
Andrew Bulmer, TPI CEO said:
“Housing Minister Matthew Pennycook MP has today delivered a long-awaited and very positive statement. He has set out a realistic timeline to deliver strong reforms for leaseholders and freeholders with managed estates. Rightly critical of the shortcomings of the rushed and botched Leasehold and Freehold Reform Act 2024, he makes a sensible case to bring forward some reforms in 2025, but seeks patience from campaigners for further reforms to be delivered in good time while allowing for due rigour and care. A sensible approach.
For property managers, the statement is very welcome indeed. The importance of professional building management is recognised. ‘At minimum’, qualifications for building managers will be made mandatory, while Lord Best’s recommended regulation of property agents will be high on his agenda.
It seems this government agrees with leaseholders, landlords and the profession itself: property management is not a job for amateurs.”
Read Housing Minister Matthew Pennycook MP’s full statement here.
