Housing Minister announces intention to Regulate the Property Sector
Ahead of the BBC’s ‘Leasehold Day’ on the 22nd November 2024, the Housing Minister, Matthew Pennycook, unveiled the government’s plan to transform the property sector by abolishing the leasehold system and replacing it with commonhold as the default tenure.
This pivotal reform is set to be implemented within the current parliamentary term, possibly alongside the long-awaited introduction of the Regulation of Property Agents (ROPA).
The ROPA report, published in 2019, with Lord Best chairing the working group, highlighted the necessity for property agents to possess formal qualifications, ensuring they have the requisite knowledge and skills to serve clients effectively.
These changes would make a minimum entry level 3 qualification mandatory for property agents, marking a significant step towards raising industry standards, enhancing professionalism, and safeguarding consumer interests.
The Housing Minister’s comments were made as he announced that the government intended to “finally bring the feudal leasehold system to an end”. He added that “For far too many leaseholders, the reality of home ownership has fallen woefully short of the dream – their lives marked by an intermittent, if not constant, struggle with punitive and escalating ground rents; unjustified permissions and administration fees; unreasonable or extortionate charges; and onerous conditions imposed with little or no consultation. This is not what home ownership should entail”.
He added that “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.”
GLM has long recognised the importance of professional development and qualifications in the property sector. Our comprehensive training programmes are designed to align with industry standards and regulatory requirements, equipping property agents with expertise.
“Our mission at GLM has always been to provide property professionals with the knowledge, confidence, and tools they need to excel in their roles,” says Susie Crolla, CEO of GLM. “The changes introduced by ROPA will elevate the industry, and we are proud to be at the forefront of training the next generation of qualified property agents.”
Our courses encompass a broad spectrum of essential topics, including property law, ethics, customer service, and the detail of leasehold and commonhold tenures. By providing in-depth knowledge and practical skills, we prepare our trainees to meet the challenges posed by the forthcoming regulatory changes.
Read the Full Statement here