The Labour Government intends to regulate property agents

Matthew Pennycook, The Minister for Housing and Planning confirmed during a question-and-answer session in the House of Commons on 28 October 2024, that the Government intends to introduce regulation of property agents.  He confirmed that the Government will set out its position on the regulation of letting, managing and estate agents in “due course”.

The Regulation of Property Agents was first proposed by the then Conservative Government who established a Working Group on the Regulation of Property Agents in 2018.  The Working Group’s final report was published in July 2019.  That final report recommended regulation by means of operating a licence scheme for property agents accompanied by mandatory codes of practice and qualifications to obtain a licence. The Working Group also proposed a new regulator to oversee approval of a property agent redress scheme and client money protection scheme. 

Earlier this year, the House of Lords Industry and Regulators Committee concluded an Inquiry into the regulation of property agents and called on the then Government to introduce regulation of property agents.  In particular, they recommended that the Government publish its full response to the Working Group’s final report from 2019. 

More detail is awaited from the current Government as to exactly how it intends to regulate property agents and whether it will implement the recommendations of the final report of the Working Group on Regulation of Property Agents in whole or part.  

The Government is already looking to reform Assured Shorthold Tenancies and the Renters' Rights Bill is working its way through Parliament.  The Government has also committed to implementing the remainder of the Law Commission’s recommendations on enfranchisement, commonhold and the right to manage from July 2020 and to consult on increased uptake of commonhold as a structure of ownership.  

There are also plenty of reforms happening outside of the property sector.  With so much on its plate already, it is not clear when the Government will have time to undertake a root and branch review of the regulation of property agents.  Key stakeholders in the residential and commercial property sector will be keeping a close eye on developments.

We are tracking developments on our Essential Residential hub.  Please contact Laura Bushaway, Lauren Fraser or your usual Charles Russell Speechlys contact if you have any queries.