Commonhold and Leasehold Reform: Managing Agents

Chi Onwurah Excerpts

Thursday 2nd July 2026 Commons Chamber

[Florence Eshalomi]

I thank my hon. Friend for that intervention, and wish him a happy birthday—I am sure a good birthday present for him would be the regulation of managing agents for the sake of his constituents. Self-regulation does not work when there is no real enforcement, and leaseholders were clear with us that they do not just want mandatory qualifications. As Lord Best put it in his evidence to the Committee,

“being qualified doesn’t necessarily make people behave properly; you still need a code of practice and enforcement”.

What we need is a regulator with teeth—one that will issue meaningful sanctions against agents that treat homeowners like a revenue stream. For the worst offenders, that should include the removal of their licence to operate.

I should acknowledge that our inquiry heard from some campaigners who were concerned that regulation could add to the costs passed on to leaseholders via service charges. On balance, though, we think that regulation is now necessary to protect all leaseholders from rogue managing agents. The reality is that some leaseholders will not be able to convert to commonhold—some blocks will not be able to meet the 50% threshold to convert, and some blocks will have special features that mean they are not eligible. We cannot leave those homeowners behind.

Ultimately, commonhold is a vast improvement, but it will not always be as simple as hiring and firing agents. Commonholds are likely to appoint managing agents on contracts that last for several years, and they need to have confidence that they are appointing high-quality service providers. An independent code of practice would provide that assurance, so overall we think it would be a valuable addition to the final Bill—one that would benefit homeowners. Homeowners want a crackdown on poorly performing agents like FirstPort, with a regulator that has teeth and can deliver.

[Dame Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)]

Will my hon. Friend give way?

[Florence Eshalomi]

Very quickly.

[Dame Chi Onwurah]

My hon. Friend has mentioned a number of times that nobody should be left behind by this legislation. My constituents suffer from the actions of the St Mary Magdalene and Holy Jesus Trust, a supposed charity that refuses to allow them to extend their leases and is using a loophole in the current legislation, leaving them—as one constituent put it—as prisoners in their current homes. Does my hon. Friend agree that the legislation should address those concerns and liberate my constituents?