Letting Agents Will Need a Licence and Leasehold Fees Will Be Capped. What Landlords Should Know Now.
RealYield Team
Property Analyst
On 29 September 2026, the government said it plans to cap the fees leaseholders get charged for routine permissions, and to bring in licensing for property agents for the first time. Neither has happened yet. There is no consultation open, no cap amount, no regulator, and no date.
If you own a leasehold flat as a buy-to-let, or you use an agent to manage any of your properties, both halves of this announcement eventually touch you. This article covers what was actually said, where the costs would sit in your numbers if the fee cap goes ahead, and what agent licensing would and would not change about your own responsibilities as a landlord.
What was announced
Speaking at the Labour Party conference, Housing Secretary Angela Rayner set out two separate measures as part of the government's wider leasehold reform agenda.
Permission and administrative fee caps. The government says it will legislate to give the Secretary of State powers to cap fees leaseholders are charged for routine permissions, such as requesting to keep a pet or to make cosmetic changes to a flat, and for administrative charges, such as providing documents on request or notifying a change of mortgage provider. The same powers would extend to people on privately managed freehold estates, who can face similar charges. Rayner gave examples rather than confirmed figures: a £250 fee to get permission to keep a pet, a £400 fee to change a front door, and a further £60 for a doorbell fitted to that door. She called fees like these "outrageous" and said leaseholders were paying for services that amount to nothing more than an email approving a request already theirs to make.
A public consultation will follow, to decide which fees get capped and at what level. No date for that consultation has been given.
Independent regulation of property agents. For what the government describes as the first time ever, property agents, which includes letting, managing and estate agents, would need a licence to operate, along with "appropriate qualifications". An independent regulator would set codes of practice covering conduct and complaint handling, and would have the power to revoke an agent's licence if standards fall short. The government says this is meant to protect leaseholders, tenants and homebuyers from being, in Rayner's words, tricked into overpriced or substandard service.
Frequently Asked Questions
Do I have to pay a capped leasehold fee right now?
No. As of October 2026, the government has only announced that it plans to legislate for powers to cap permission and administrative fees on leasehold properties. No consultation has opened, no cap amounts exist, and no commencement date has been set. Current fees, whatever your freeholder or managing agent charges, still apply until that changes.
What's the difference between a 'letting agent' and a 'property agent' in this announcement?
The government's own announcement uses the term 'property agents' throughout, which covers managing and estate agents as well as letting agents. Some trade press has reported it specifically as 'letting agent licensing', which narrows the framing. Until the government publishes more detail, treat 'property agents' as the accurate scope.
If my letting agent needs a licence, am I still responsible if something goes wrong?
Yes, and that would not change under what has been announced so far. Using a licensed agent would not transfer your legal responsibilities as a landlord, for gas safety, deposit protection, Right to Rent checks, or Renters' Rights Act compliance, to that agent. A licence governs the agent's own conduct and competence. It does not make them the one who answers to your tenant or the local council if your property falls short.
What examples has the government given of fees that could be capped?
In her Labour conference speech announcing the plans, Housing Secretary Angela Rayner cited a £250 charge to a leaseholder for permission to keep a pet, a £400 charge to change a front door, and a further £60 charge for a doorbell fitted on that door. These were used as illustrations of the kind of charge the government wants to bring under control, not confirmed cap levels.
Has regulating property agents been tried before?
Yes. A government-commissioned working group chaired by Lord Best recommended an independent regulator for property agents, with licensing and a single enforceable code of practice, in a report published in July 2019. Successive governments did not act on it. The announcement covered in this article is the first firm commitment to introduce something along those lines since then, though the detail, including the regulator, qualifications, and timetable, is still unconfirmed.
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