England plans leaseholder fee caps and property-agent licensing: what changes now?

Babylon Radio
Listen nowEngland plans to cap some leasehold and managed-estate fees and introduce mandatory licensing for property agents. The government announced the policy on 29 September 2026, but the caps, licence rules and start dates are not yet in force. A public consultation and legislation must come first.
That distinction matters for international homeowners and buyers. The announcement signals a potentially important change, but it does not give leaseholders a new right to a specific fee cap today.
Information last verified: 2 October 2026.
What has the government announced?
The Ministry of Housing, Communities and Local Government says it will legislate to give the Secretary of State powers to cap certain permission and administration fees. The plan also covers homeowners on privately managed freehold estates who may face charges for minor changes to their property.
The same announcement sets out an intention to create independent regulation for property agents. Agents would need a licence and appropriate qualifications to operate. A regulator would be able to set codes of practice, including standards for conduct and complaint handling, and could remove licences where standards are breached.
The government says the package is intended to support more than five million existing leaseholders and future homeowners. The announcement concerns housing policy in England; Scotland, Wales and Northern Ireland have separate legal systems or devolved housing arrangements.
Which leaseholder fees could be capped?
The government has not yet published a complete schedule or any maximum amounts. Its announcement gives examples of the charges it wants the new powers to cover:
- Permission fees, such as charges for a landlord’s consent to keep a pet.
- Administration fees for supplying documents on request.
- Charges for notifying a landlord or managing party about a change of mortgage provider.
- Similar fees on privately managed estates, including charges linked to minor cosmetic changes.
A future public consultation will ask what should be capped and how much should be allowed for each item. Until that process is complete and the resulting rules take effect, the announcement should not be read as a fixed price list.
What would property-agent licensing change?
The proposal is broader than fee caps. The government intends to bring property agents under independent regulation for the first time, with licensing and qualification requirements.
For leaseholders, tenants and buyers, the practical aim is greater consistency and accountability. A regulator could establish minimum standards, set expectations for complaints and withdraw a licence from an agent that fails to meet the required rules.
Important details remain open. The government has not yet confirmed the licensing cost, the qualifications that will be accepted, which activities will require a licence, the transition period for existing agents or the final enforcement timetable.
When will the changes begin?
No commencement date has been announced. The government says it will bring forward the changes as soon as possible and publish more information in due course.
The expected sequence is:
- A public consultation on the scope and level of fee caps.
- Legislation giving the government the necessary powers.
- Detailed rules for caps, agent licensing, qualifications and regulation.
- A commencement date, which may include transitional arrangements.
Because several stages are still outstanding, buyers and leaseholders should not assume that a quoted fee is automatically unlawful under the new policy.
What should leaseholders and international buyers do now?
- Ask for a full fee schedule. Before buying a leasehold home or a property on a managed estate, request the current charges for permissions, documents, notices, resale packs and other administration.
- Check the legal documents. Have your conveyancer review the lease, estate-management arrangements and any restrictions that may trigger a charge.
- Keep records. Retain invoices, requests, correspondence and the clause relied on for each fee. These may be useful if you need professional advice or make a complaint.
- Separate policy from law. The 29 September announcement describes intended reforms. Existing contracts and current law continue to apply until new rules commence.
- Watch the consultation. The consultation should provide the first reliable detail on which charges are in scope and the possible cap levels.
What does this mean for expat property owners?
Owners who live abroad can be especially exposed to administration charges because a sale, remortgage, letting arrangement or request for consent may have to be handled remotely. The proposed caps could make some of those costs more predictable, while agent licensing could offer a clearer accountability framework.
For now, the most useful action is to identify the fees attached to your own lease or estate and avoid budgeting on the assumption that a future cap has already reduced them. If a charge is disputed or a transaction is time-sensitive, take advice on the law and contract as they stand today.
Frequently asked questions
Are leaseholder permission fees capped now?
No new cap took effect with the announcement. The government plans to legislate, and a consultation will consider the scope and amount of future caps.
Will every property agent need a licence?
The government says property agents will be required to obtain a licence and appropriate qualifications, but the final coverage, requirements and transition rules have not yet been published.
Does the announcement set maximum fees?
No. It gives examples of fees that may be covered, but no cap levels have been set.
Where can I follow the official update?
Read the 29 September 2026 announcement on GOV.UK. Future consultation and legislative documents should provide the operational detail.
Featured image: Park Modern residential building in Bayswater, London. Photograph by Charles, 2 September 2023, licensed under CC BY 2.0, via Wikimedia Commons. No changes made.
This article provides general information, not legal advice.