The Legal Changes All Property Managers Need to Know: Part 1 - Regulation Announcement

The Legal Changes All Property Managers Need to Know: Part 1 - Regulation Announcement

By Joe Mallon MRICS FTPI

It’s been a while since I posted on my blog.

There have been so many changes and proposals flying around concerning leasehold that it’s been difficult to know when to sit down and update everyone.

Recently, I attended the TPI Conference, AGM and Fellows Day. It feels like a good time to update you all therefore.

So, I’m doing a series of posts to keep things manageable, starting with what regulation could mean for Block Managing Agents and the people leading them.

Regulation of Property Agents: Further Progress Expected in 2027–2028

“Groan!” some of you will say.

We’ve been hearing about regulation for decades. Will it ever actually happen?

My take is yes. The Government’s announcement on 29 September 2026 brought an independent regulator, compulsory licensing and mandatory qualifications firmly onto the agenda. Under the announced plans, agents who fail to meet the required standards could lose their licence to operate.

Speaking at Labour Party Conference, Angela Rayner put it plainly when describing bad actors:

“Conference, we will legislate for independent regulation to rein these cowboys in.”

An Independent Regulator?

Yes, that’s right - back on the agenda is the independent regulator.

The 2025 consultation focused on introducing mandatory qualifications through existing professional bodies. The September announcement goes further, proposing independent oversight backed by licensing. The Government says a regulator could set codes of practice covering conduct and complaints handling, with the power to withdraw licences where standards are breached.

For managing agency leaders, my reading is that preparation needs to extend beyond getting staff through exams. How your firm supervises work, handles complaints and maintains standards deserves attention too.

What qualifications will be required?

The 2025 consultation proposed Level 4 as the standard for block managers, with potentially lower requirements for support roles and higher requirements, such as Level 5, for directors or those with significant building safety responsibilities. These are proposals, with the final requirements still to be settled.

For context, TPI’s Level 4 leasehold management qualification leads to MTPI membership. That provides a useful reference point, although the qualifications accepted under the future regime remain to be confirmed.

What should managing agency leaders do now?

Start with a practical review of your team. Record who holds which qualifications, what responsibilities they carry and where further training or supervision is needed. Include directors and senior managers in that exercise.

Then look at the evidence behind your service: training records, continuing professional development, complaints handling and checks on the quality of work. Can you show how you identify mistakes and make sure they are addressed?

Build development time and costs into your business plan now. Leaving everyone’s qualifications until a deadline arrives could create an avoidable staffing and budget problem.

Think carefully about your business. Is there an aspect you’ve known for a while that could be brought up to date? Made more transparent? Now’s the time to begin any long-awaited internal changes - to get ahead of regulation.

When will it happen?

There is no confirmed commencement date for a licensing regime. The Government has promised further information before the end of the year. My expectation is further progress during 2027–2028, rather than a guaranteed start within that period.

My advice to managing agency leaders is to begin reviewing competence now. Understanding your team’s gaps is useful today, whatever timetable the Government eventually sets.

Start to think about regulation as an opportunity, rather than a threat. A time is coming soon when we all have the chance to rise above the bad practices perpetrated by poor firms.