Rayner Unveils New Watchdog to Crack Down on 'Cowboy' Leasehold Agents and Hidden Fees

Angela Rayner has unveiled plans for a new independent regulator to protect leaseholders from unscrupulous property agents and hidden charges, using her speech at Labour's annual conference to target what she described as the injustice at the heart of the leasehold system.

The housing secretary said the government would legislate to establish a watchdog with teeth, capable of setting standards of conduct and requiring property agents to hold a licence to operate. Those who fail to meet the required standards could have their licences stripped away, according to the proposals.

The measures are expected to cover the roughly five million leaseholders across England and Wales, many of whom currently face charges from landlords for even minor alterations to homes they have already purchased. Rayner cited examples she said she had heard from constituents, including fees of £250 simply for permission to keep a pet and £400 to change a front door.

In her address to party activists, Rayner argued that people caught in these arrangements are left powerless against vested interests that take from them while offering nothing in return. She acknowledged that the sector contains many reputable operators but claimed they are being undermined by far too many cowboys, crooks and con artists.

The announcement builds on existing efforts to overhaul the leasehold framework. Ministers are already working on the Commonhold and Leasehold Reform Bill, which aims to ban new leasehold flats and move residents towards a commonhold model where they collectively own and manage their buildings. The Labour manifesto for the 2024 election described the current leasehold arrangement as feudal, noting that buyers acquire only the right to occupy a property for a fixed term rather than owning it outright.

Rayner's latest intervention focuses on the network of management companies that sit between leaseholders and their effective landlords. She said buyers thrilled at the prospect of owning their own homes are often tricked into using in-house services, creating conditions where, absent transparency or accountability, vultures can take advantage.

Under the plans, the new regulator would be empowered to establish codes of practice covering standards of conduct and proper complaint handling for the companies it oversees. Property agents would be required to obtain a licence, and the government has said it wants to bring forward these changes as soon as possible. It remains unclear whether estate agents would fall within the regulator's remit.

Alongside the watchdog, Rayner said new legislation would create powers to cap the permission and administration fees that leaseholders pay to landlords. These caps would extend to freehold estates and privately managed estates, where residents can face additional charges for cosmetic changes to their properties or for requesting documents such as building safety certificates. A public consultation will be launched to determine the level at which the caps should be set.

The move supplements an already-announced £250 annual cap on ground rents paid by leaseholders in England and Wales, a policy that stalled during the change of prime minister over the summer. The government expects the ground rent limit to take effect in late 2028, though MPs have pressed for it to be introduced a year earlier. Rayner went further in her conference remarks, saying she was capping and then scrapping ground rents, hinting she may seek to go beyond a simple cap.

In her speech, Rayner did not reference the government's target of building 1.5 million homes in England by the next election. Earlier this month she acknowledged there was only a slim chance of meeting that goal. Last week, ministers announced a Your First Home policy aimed at helping first-time buyers in England with a deposit of just 2.5%, echoing the Help to Buy scheme introduced under the Conservatives in 2013.

Rayner also said she intends to strengthen council powers to take over empty homes, describing this as part of efforts to meet demand for council housing and address homelessness. The Conservatives criticised the package as a desperate attempt by Labour to try to hit its housing target.

The leasehold sector has faced growing scrutiny in recent years, with campaigners documenting cases of escalating service charges, opaque insurance arrangements and legal disputes over freehold management. One legal claim reported earlier this year concerned flat owners pursuing action over what they described as secret insurance charges. The government's reforms, if enacted, would mark one of the most significant shifts in English property law in decades, potentially reshaping how millions of people hold and manage their homes.

For leaseholders, the immediate attention will be on the consultation process and the timetable for legislation. The creation of a licensing regime for property agents would represent a major expansion of oversight in a market where consumer protections have historically lagged behind those in sectors such as financial services. Whether the regulator ultimately includes estate agents, and how forcefully it uses its power to revoke licences, will determine how far the promised crackdown reaches beyond the headline announcements.