Reform of the Property Sector - What’s on the Horizon?
A shift in towards regulation of the property sector is on the horizon within social housing and the Private Rented Sector.
Social Housing
It all began with former Housing Secretary Michael Gove’s announcement in 2023 that Social housing managers would be required to gain professional qualifications under the Social Housing (Regulation) Act 2023 to protect residents and raise standards in the sector and rightly so, in part as a result of the Grenfell Tower tragedy and in memory of two-year-old Awaab Ishak, who tragically died in 2020 due to prolonged exposure to severe black mould.
The Private Rented Sector
There have been discussions around regulating the Private Rented Sector and agents since Lord Best published the Regulation of Property Agents (RoPA) report in 2019; The working group recommended the uk government introduce a new independent regulator, mandatory qualifications for agents a a Code of Practice.
Over the last few years, both Rt Hon Steve Reed OBE MP, Secretary of State for Housing, Communities and Local Government and Matthew Pennycook MP, Minister of State have referenced regulating the property sector.
The Managing Agents (Regulation) Bill has completed it’s First Reading and is awaiting a Second Readin,. however, no date has yet been formally scheduled for the Second Reading debate. And whilst this may appear frustrating, the intention of the current government is to ensure that an independent regulator of managing agents is established, managing agents comply with a code of practice and a licensing scheme for managing agents is introduced. There will also be a requirement for Managing agents to be qualified to an appropriate level to carry out licensable activities. Many of the ‘elemnts’ within this Bill are taken from Lord best’s RoPA report.
However, it is important to note that the activities undertaken by Managing Agents (the management of blocks) are not the same as those undertaken by Letting Agents and Estate Agents. Whilst the 3 disciplines are interlinked and at times overlap, the duties carried out by the different property professionals differ immensely. It is therefore important for the Government and civil servants to have a really clear understanding of the ‘mechanics’ of these different disciplines. A qualification for Managing Agents will not have the same outcomes and objectives as a qualification written specifically for Estate Agents and Letting Agents.
19th June 2026 - A Roadmap for Home Buying and Selling
The publication of the Home Buying and Selling Roadmap may have come as a surprise to property professionals in England when it was published last week, but it was welcomed by many who have voluntarily invested in training and qualifications. The government proposals focus predominantly on improving the Home Buying and Selling process, next year, there will be a consultation on introducing mandatory qualifications for estate and letting agents and subject to the outcome of the consultation, legislate when parliamentary time allows.
What does the future hold?
Whether Keir Starmer’s resignation will change these proposals, only time will tell. What is very clear, however, is there is an appetite from the sector that regulation would only enhance the reputation of practitioners. Given that the global value of the property sector in the United Kingdom is so significant, it’s surprising that previous governments did not take this seriously.