Question to the Department for Levelling Up, Housing & Communities:

To ask His Majesty's Government what steps they plan to take to stop managing agents charging leaseholders excessive commission charges for renewing buildings insurance.

The Leasehold and Freehold Reform Bill seeks to ban the placer of insurance on residential leasehold properties from receiving any form of commission that is passed on to leaseholders as a cost. Instead, costs relating to the placement and management of buildings insurance will be issued through a transparent handling fee, proportionate to the value of the work done. The detail will be set out in affirmative secondary legislation.

Transparency reforms within the Bill will require the placer of insurance to disclose information about their decision-making process when purchasing buildings insurance on behalf of leaseholders. These measures will support responsible, transparent, and accountable sourcing of buildings insurance for leaseholders of multi-occupancy buildings.