Rayner pledges independent regulator to rein in "cowboy" property agents

Rayner said the property sector included many decent businesses, but that they were "undermined and undercut by far too many cowboys, crooks and con artists". She told delegates that homebuyers were being tricked into using overpriced in-house services, and that unqualified and unlicensed agents were mishandling clients' money with no transparency or accountability.

"We will legislate for independent regulation to rein these cowboys in," she said.

Under the proposals, set out in a government announcement published today, property agents would have to obtain a licence and hold appropriate qualifications to work in the sector. The regulator could set codes of practice covering standards of conduct and complaint handling, and would have the power to remove the licences of agents who fall short. The government says this would give leaseholders, tenants and homebuyers a route towards better rights and protections.

The announcement also targets the fees leaseholders pay for permission to make changes to their homes. Rayner said she had heard of leaseholders being charged £250 for permission to own a pet, £400 to change their front door and a further £60 to fit a doorbell.

The government will legislate to give the Secretary of State powers to cap such permission fees, with the powers extending to privately managed estates where homeowners face similar charges for minor cosmetic changes. Administrative fees, such as charges for providing building safety certificates or for being notified of a change of mortgage provider, will also be targeted. A public consultation will be held on what should be capped and by how much.

Ministers say the measures will support more than five million existing leaseholders as well as future homeowners, and have committed to bringing the changes forward as soon as possible, with further details to follow.

The pledge comes nearly nine years after ministers first announced plans to regulate the sector. In October 2017, then Communities Secretary Sajid Javid set out proposals for letting and managing agents to be regulated, and a working group chaired by Lord Best was later set up to recommend how, but its proposals were never put into law.

The reforms sit alongside existing government commitments, including legislation to ban new leasehold flats and plans to cap and then scrap ground rents for existing leaseholders.