Strengthening leaseholder protections over fees, charges and services: consultation

4.6 Transition Arrangements

351. Many managing agents, especially if they belong to a professional body, already have some form of qualifications and are already meeting the proposed standards. However, many are not, and we recognise that we need to implement a transition period to allow existing managing agents time to gain relevant qualifications. In doing so, we would seek to ensure that the requirements do not disincentivise new agents from entering the market by preventing them from operating before they have gained qualifications. In particular, the UK government wants to encourage apprentices, students and trainees to develop careers as managing agents.  

352. We propose that a 36-month transition period is put in place from the date that legislation is passed within which individual managing agents must ensure that they have, or are working towards, a level 4 qualification. We would define ‘working towards’ in the relevant legislation or policy.

353. Where agents have a role with less responsibility and a level 3 qualification is required, we propose that the transition period for individual managing agents to ensure that they have or are working towards a level 3 qualification is two years.

354. We also recognise that, under the preferred option, a transition period for joining a designated professional body would be appropriate for both individual managing agents and managing agent firms. We consider that this transition period could match the proposed 36-month transition period for qualifications.  

4.7 Grandparenting

355. Many agents have undertaken or are undertaking qualifications that are already provided by the market. We do not want to make agents undertake duplicative or unnecessary training, or to discourage agents from undertaking training that is on offer now, and so we would expect that where agents already hold relevant qualifications to the required level or higher and that cover core requirements, they would not be expected to undertake new training. However, we would not expect that experience could be a substitute for a qualification.

356. We recognise that there may also be some cases where agents have undertaken or are undertaking qualifications that have provided part of the skills or knowledge required. In cases where agents are partially qualified, we would expect that agents are could ‘top up’ their existing qualifications through undertaking extra individual modules, rather than undertaking a whole new qualification.

viii) Costs and Impacts

357. We recognise that for some agents this proposal will result in higher costs, which will likely be passed on through management fees, though this would be shared between many leasehold customers and are likely to be relatively small. We also think that there can be value for money (VfM) improvements through qualified, competent managing agents, e.g. through gaining better VfM through procurements. We would welcome any further information on the cost incurred by individual agents to become qualified and the extent to which savings can be delivered through the efficiency gains of becoming qualified. We would also welcome further information about the costs and impacts to individuals and firms of the different enforcement approaches proposed.

358. We would also like to understand the likely costs and impacts of this intervention at a sector wide level. To support this, we would like to understand the proportion of managing agents that already hold qualifications and to what level.