Published 30 September 2026 | By FJP Investment Editorial Team

Published 30 September 2026 | By FJP Investment Editorial Team

The government has announced plans to cap certain fees charged to leaseholders and homeowners on privately managed estates, alongside the introduction of independent regulation and mandatory licensing for property agents.

The measures, announced on 29 September 2026, are intended to provide greater protection for more than five million existing leaseholders as well as future homebuyers and tenants.

Under the proposals, ministers will legislate to create powers to cap some permission fees and administrative charges. Property agents would also need appropriate qualifications and a licence to operate.

However, the changes are not yet in force.

The government has not published the proposed monetary caps, the complete range of charges that will be covered or the implementation timetable. These details will be considered through further legislation and a public consultation.

What has the government announced?

According to the official government announcement, the reforms will cover two main areas.

• Powers to introduce caps on certain permission fees and administrative charges;
• Protection for leaseholders and homeowners on privately managed freehold estates;
• A public consultation on which charges should be capped and the appropriate amount for each one;
• Independent regulation of property agents;
• Mandatory licensing and appropriate qualifications for agents;
• Codes of practice covering areas such as professional conduct and complaint handling; and
• Powers allowing the regulator to remove an agent’s licence where required standards are not met.

The announcement refers broadly to property agents. The detailed scope of the licensing system, including precisely which estate agents, letting agents and property-management businesses will be covered, will need to be established through the legislation and accompanying rules.

What are leasehold permission fees?

A lease can require the leaseholder to obtain the landlord or freeholder’s consent before making certain changes or using the property in a particular way.

Depending on the wording of the lease, permission might be required before:

• Keeping a pet;
• Replacing windows or external doors;
• Changing flooring;
• Making alterations to the property;
• Subletting the property;
• Changing how the property is used; or
• Carrying out other work covered by restrictions in the lease.

The landlord, freeholder or managing party may charge for considering the request, issuing consent or completing the associated administration.

The government says leaseholders can currently face uncertainty about how much these requests will cost and have limited oversight of the charging process. Its proposed legislation would give the Secretary of State powers to introduce caps that landlords would be required to follow.

The existence and wording of any consent requirement will still depend on the individual lease. A cap on the fee charged for considering a request would not necessarily remove the underlying obligation to obtain permission.

Which administrative charges could be affected?

The proposals are also intended to address administrative fees charged for supplying documents or processing notifications.

The government specifically identified charges for:

• Providing building-safety certificates;
• Supplying documents requested by a leaseholder; and
• Recording a change in the leaseholder’s mortgage provider.

Other categories may be included, but the final scope has not been confirmed. A public consultation will consider which charges should be capped and the maximum amount permitted for each item.

Until that process has been completed and the necessary rules have taken effect, property owners should not assume that a universal cap already applies.

Will the changes cover freehold estates?

Yes, the government says the proposed powers will also cover homeowners on privately managed freehold estates where similar charges can apply.

A freehold homeowner may still be required to contribute towards the management and maintenance of communal roads, landscaped areas, drainage systems, play areas or other shared facilities.

Estate documentation can also impose restrictions requiring consent before certain alterations are made to the property.

This arrangement is sometimes informally described as “fleecehold”, particularly where homeowners believe they face leasehold-style charges despite owning their property on a freehold basis.

The proposed protections are therefore intended to extend beyond conventional leasehold flats.

Are service charges being capped?

The 29 September announcement does not introduce a general monetary cap on ordinary leasehold service charges.

Service charges normally contribute towards the cost of maintaining, repairing, managing and insuring a building or estate. Permission fees and administrative charges are separate categories, even though they may be collected by the same freeholder, landlord or managing agent.

FJP Investment’s guide to leasehold service charges explains what these recurring costs can include and what buyers should investigate before purchasing a flat.

The distinction is important:

• Service charges generally pay towards the ongoing operation and maintenance of the building or estate;
• Permission fees can arise when a leaseholder asks for consent to do something restricted by the lease;
• Administrative charges can apply when documents, information or formal notifications are processed; and
• Ground rent is a separate payment arising under some residential leases.

The government is pursuing wider reforms affecting service-charge transparency and ground rents, but buyers should not treat the latest announcement as an immediate cap on every cost connected with leasehold ownership.

How would property agent licensing work?

The government also intends to introduce independent regulation of property agents for the first time.

Under the announced approach, agents would be required to obtain a licence and hold appropriate qualifications before operating.

An independent regulator would be able to:

• Set professional standards;
• Establish codes of practice;
• Specify expectations for complaint handling;
• Oversee the licensing system; and
• Withdraw licences where agents fail to meet the required standards.

The proposed system could affect leaseholders, tenants, landlords and homebuyers because property agents are involved in sales, lettings and the management of many residential developments.

Important operational details remain outstanding, including the identity and structure of the regulator, the qualifications that will be accepted, licence costs, transitional arrangements and the timetable for implementation.

What does this mean for buyers today?

The announcement may ultimately provide greater certainty and accountability, but it does not remove the need to examine the current legal and management arrangements attached to a property.

Before purchasing a leasehold property, buyers should continue to establish:

• Which activities require the landlord or freeholder’s consent;
• What permission and administration fees are currently charged;
• Whether there is a published schedule of charges;
• Who manages the building or estate;
• How complaints and disputes are handled;
• The current service charge and its recent history;
• Whether major works are planned;
• Whether a reserve or sinking fund exists;
• The remaining length of the lease;
• Any ground-rent obligation; and
• Any restrictions affecting alterations, subletting, pets or use of the property.

A proposed future cap should not be used to disregard a charge that is currently contained in the lease or transaction paperwork.

Anyone buying before the new rules take effect should obtain appropriate legal advice based on the law and contractual arrangements that apply at the time of purchase.

Why does the announcement matter to overseas buyers?

Leasehold ownership is particularly common within the UK apartment market, including developments marketed to international purchasers.

An overseas buyer may have limited direct contact with the building and depend heavily on the managing agent for information, maintenance, payment administration and communication about major works.

Mandatory qualifications, licensing and stronger complaint-handling standards could therefore be relevant to international owners as well as UK residents.

However, overseas buyers should not assume that future regulation will remove every potential management or leasehold problem.

The quality of the individual development, the lease, the service-charge history, the reserve fund and the competence of the existing management structure will remain important.

How does this fit into wider leasehold reform?

The latest announcement forms part of a broader programme of leasehold and commonhold reform.

In July 2026, the government confirmed plans for clearer service-charge information, annual building reports, standardised demands and improved access to supporting documents. Many of those measures are expected to begin taking effect from 2027.

The government is also preparing wider legislation intended to reform commonhold ownership, restrict the use of leasehold for new flats and address ground rents.

These different measures should not be treated as though they have all taken effect at the same time.

Some provisions are already contained in legislation, others require implementation regulations and the permission-fee caps announced on 29 September still require legislation and consultation.

What happens next?

Several stages remain before leaseholders and property owners see the practical effect of the latest announcement.

The government will need to:

1. Introduce the necessary legislative provisions;
2. Define the Secretary of State’s powers to impose caps;
3. Consult on the charges that should be covered;
4. Determine the maximum permitted amounts;
5. Establish the regulatory and licensing framework for property agents;
6. Publish transitional and implementation arrangements; and
7. Confirm when the new requirements will take effect.

No application process or immediate mechanism for claiming a capped fee has been announced.

Leaseholders should therefore distinguish between a confirmed government policy announcement and an operational legal right that can already be enforced.

Final thoughts

The proposed reforms could represent a significant change for leaseholders, homeowners on privately managed estates and the property-agent industry.

Capping certain permission and administrative fees could provide greater predictability when property owners request consent or documents. Licensing and independent regulation could also create clearer minimum standards for businesses involved in selling, letting and managing residential property.

But the decisive details are still to come.

The government has not yet confirmed which fees will be capped, the maximum permitted amounts, the detailed licensing requirements or the date on which the new protections will begin.

For buyers and property owners, the sensible position is therefore to follow the reforms while continuing to assess each property under its current lease, charges and management arrangements.

This article is provided for general information and market commentary only. It does not constitute property, legal, tax, financial or investment advice, or a recommendation to purchase or sell any property. FJP Investment acts solely as an introducer and does not provide advice, assess suitability, arrange mortgages, conduct due diligence on a reader’s behalf, manage investments or hold client money.

Property values can fall as well as rise, and leasehold or estate-management charges can affect ownership costs and resale prospects. Appropriate independent professional advice should be obtained where required.