Strengthening leaseholder protections over fees, charges and services: consultation

Closes 26 Sep 2025

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Qualifications of managing agents: mandatory qualifications for managing agents

4. Qualifications of managing agents  

4.1 Introduction

  1. Managing agents play a vital role in the housing market. They are appointed by the landlord in leasehold properties, or estate management companies in the case of freehold estates, to manage and maintain multi-occupancy buildings (or estates) on their behalf. They provide a variety of services and deliver a number of functions on behalf of their client, including significant financial responsibilities, resident liaison, managing disputes, arranging and managing contracts and ensuring compliance with statutory obligations. This section of the consultation specifically relates to managing agents of commonhold, leasehold and share of freehold properties and estate managers of freehold estates. It does not relate to estate or letting agents.
  1. Agents' services are paid for through a fee agreed with the landlord or estate manager, which is then passed on to leaseholders through the service charge and to homeowners on freehold estates through a management fee that forms part of the estate management charge.
  1. However, under existing law, anyone can become a managing agent. There is limited existing regulation and no legal requirement for agents to demonstrate that they possess the required knowledge and skills to carry out the required functions. This is important given the increasing complexity in managing buildings (particularly buildings over 18m tall), the complex financial responsibilities, the vital role managing agents will play when measures are brought forward to make commonhold the default tenure for new flats, as well as known challenges in managing common areas on freehold estates.
  1. As set out in our Written Ministerial Statement of 21 November 2024, the UK government is committed to protecting leaseholders in England from abuse and poor service at the hands of unscrupulous managing agents. We are determined that leaseholders and those living on freehold estates must be better protected from those agents who provide a poor service. Too often, leaseholders are left to endure unacceptable living conditions due to poor building maintenance, are not treated with courtesy or respect and have valid concerns ignored. Alongside this, the UK government is committed to supporting the many managing agents who provide a fair and competent service to leaseholders and to help the industry professionalise, attract talent and provide a pathway to a career in property management.
  1. In 2018 the previous UK government committed to regulate the whole property agent sector (covering estate, letting and managing agents) and commissioned a working group chaired by Lord Best to advise how to do it, yet over multiple years it failed to take any action. The UK government is looking again at Lord Best’s Report of July 2019, which made a range of recommendations, including codes of practice, qualifications, and a licensing scheme overseen by a new regulator for all property agents.
  1. Ahead of any decisions on wider elements of the report, the UK government believes that there is an overwhelming case to introduce mandatory professional qualifications for managing agents in England now. This will fulfil one of the key proposals of Lord Best’s Report. Accordingly, the proposals in this section of the consultation rely on the existing institutional framework to deliver mandatory qualifications, rather than any future changes we may consider. However, we are clear that this consultation is not the final step in the regulation of managing agents.
  1. Qualifications will ensure that managing agents have the skills they need to deliver their role to a high standard. They will provide reassurance to residents that agents are competent to manage their properties or estate, are able to pre-empt issues that arise as a result of poor maintenance and repair and can implement building safety measures in a timely manner. Leaseholders will benefit from improved value for money delivered by qualified managing agents through increased competence in procurement and financial issues. Qualifications will require commitment from agents, discouraging people from entering the profession for short-term reasons. Instead, qualifications will professionalise the important work of the sector, support the industry to attract and retain talent and provide an attractive pathway to careers in property management.
  1. Many agents in the sector have already gained professional qualifications from the range of accredited professional bodies in the sector who offer these. This is welcome, but we believe that given the importance of the role that agents play, a voluntary approach is not enough. The proposals set out in this consultation will equip all managing agents with the skills, knowledge and experience needed to provide leaseholders and freehold estate homeowners with a high-quality service.
  1. The Welsh Government are also interested to understand views on whether minimum qualifications for managing agents should be similarly mandated in Wales.

4.2 Existing Regulatory Requirements for Managing Agents in England

  1. Under the Enterprise and Regulatory Reform Act 2013, property agent firms whose activities include managing properties in England must belong to a government-approved redress scheme. There are two schemes currently approved by government – The Property Ombudsman (TPO) and Property Redress (PR). TPO and PR have a number of levers to encourage compliance with their regulations and requirements, including the ability to expel members. Non-compliance is overseen at a local authority level and also in some cases by the lead enforcement authority, the National Trading Standards Estates and Letting Agents Team (NTSELAT). If an agent continues to trade whilst not being a member of a scheme, the local authority can issue fines of up to £5,000. To rejoin either redress scheme, the agent must pay any outstanding fines and comply with the redress decision.
  1. Separately, the Secretary of State has powers under Section 87 of the Leasehold Reform Housing and Urban Development Act 1993 to approve, via Statutory Instrument, Codes of Practice in relation to managing agents in England. Failure to comply with the Code can be taken into account by the First-tier Tribunal and County Court in any decisions. To date, the UK government has approved two Codes:
    1. the Royal Institution of Chartered Surveyors residential management Service Charge Code (3rd edition); and;
    2. the Association of Retirement Housing Managers Code of Practice.
  2. Leaseholders may also apply to the First-tier Tribunal under Sections 21-24 of the 1987 Act to ask them to make an Order to appoint a manager to provide services to their block.
  1. Managing agents who work solely on behalf of estate management companies on freehold estates are not required to join a redress scheme. However, Part 5 of the 2024 Act seeks to put in place a regulatory framework for homeowners on freehold estates that broadly mirrors those protections that are in place for leaseholders. These measures will be subject to a future consultation this year and, once implemented, will enable these homeowners to better hold their managing agent to account. 

4.3 Existing Regulatory Requirements for Managing Agents in Wales

  1. There are similarities and differences between England and Wales in this area. The Enterprise and Regulatory Reform Act 2013 requirement that managing agents belong to a redress scheme does not apply in Wales. Similarly, the extension of the requirement to join a redress scheme to estate management companies on freehold estates by means of Part 5 of the 2024 Act also does not apply in Wales.
  1. Welsh Ministers are able to exercise the same powers under Section 87 of the Leasehold Reform, Housing and Urban Development Act 1993 to approve codes of practice.
  1. In Wales, leaseholders may apply to the Leasehold Valuation Tribunal to seek appointment of a manager under Sections 21-24 of the Landlord and Tenant Act 1987.
  1. Recognising these differences, Welsh Ministers are interested in exploring the potential for introducing minimum qualifications for managing agents in Wales. As such, we would welcome responses to the questions below from leaseholders and stakeholders who operate in Wales, and for input to specific questions included about whether there is a need to adapt proposals so that they function appropriately in Wales.