FirstPort’s response to the strengthening leaseholder protections consultation
Over the last few months, the Ministry of Housing, Communities and Local Government (MHCLG) has been consulting on its proposals to strengthen leaseholders’ rights to scrutinise and challenge charges and services and introduce mandatory qualifications for managing agents.
The “Strengthening leaseholder protections over charges and services” consultation is a step towards the government achieving its wider aim to reform the residential sector, ensuring greater transparency for leaseholders and raising standards within property management.
FirstPort is committed to driving greater transparency and higher standards across our industry, in what is an increasingly complex operating environment. In September, we published our first Quarterly Service Update, demonstrating our ongoing commitment to higher service standards for our customers and building greater trust.
As the country’s largest managing agent with a diverse portfolio spanning all kinds of developments, we have been liaising closely with MHCLG to provide our comprehensive view on how to create a fairer and more workable system for all.
Below, we have summarised the key proposals from the government’s consultation, their likely impact on the residential property sector, and FirstPort’s view on what needs to be done to ensure these reforms deliver on the government’s ambitions.
1. Improving transparency of information
The consultation proposed introducing a new annual report and standardised formats for service estimates and accounts. This is with the intention of making these documents more accessible for residents, helping them to more clearly understand the services they are receiving and how much they are paying for them.
Supporting resident understanding of charges is vital, and standardising the approach will ensure that leaseholders across the UK receive a consistent quality of service suitable to their building. We are also pleased to see that the government is separately looking at proposals to require estate agents and conveyancers to provide buyers with greater information during the purchase process.
The government’s proposed templates provide a good starting point for simpler developments; however, our experiences managing larger or more complex estates show that they may not effectively scale. Instead, we have advocated for some prescribed categories and minimum information requirements combined with flexibility in format to ensure better clarity and usability.
To support this, we have submitted to MHCLG example documents that illustrate the complexity of some developments and the level of detail required to meet leaseholders’ needs.
2. Digital first approach to resident communications
Alongside making documents clearer, the government wants landlords and managing agents to use electronic methods to communicate with residents – encouraging a “digital first” approach where appropriate. However, it acknowledges this won’t be suitable for all residents, so it suggests retaining paper documents as the default option.
We fully support the move to digital, which is reflected by the significant investment we made in relaunching our My Home customer portal earlier this year. Effective online tools enable efficient, transparent communication and allow residents to access information and documents at their convenience. They are also more sustainable than paper alternatives.
However, we recognise that digital communication may not suit everyone and support proposals that preserve choice – allowing leaseholders to continue receiving paper-based correspondence if they prefer.
3. Making consultations for major works fit for purpose
The government is proposing to raise the cost thresholds for works at which leaseholder consultations are triggered and to index them to inflation moving forward. It is also considering a majority dispensation process, allowing leaseholders to agree collectively to bypass consultation where appropriate. Reforms to qualifying long-term agreements, particularly those covering energy costs are also being looked at.
These changes are intended to modernise outdated thresholds, which have remained static for more than two decades.
Under current legislation, consultation is required if works exceed £250 per leaseholder or if annual contract costs exceed £100 – levels that often capture relatively minor works, especially in smaller blocks, adding time, cost, and frustration for leaseholders.
We support the proposals to raise and index the thresholds and welcome the introduction of majority dispensation as a pragmatic way to streamline decision-making and reduce unnecessary expense. However, we recognise that as property managers, it is our role to bring people together and help find consensus. In streamlining some formal consultations, we should have more time to engage meaningfully on the things that matter most to residents. This will be particularly important as the government aims to promote commonhold.
We also endorse reforms to long-term agreements, particularly around energy costs, as these would allow us to secure better long-term value, provide greater budget certainty, and protect leaseholders from market volatility.
4. Embedding long-term financial planning into leasehold management
As part of its proposed reforms, MHCLG is considering introducing mandatory Asset Management Plans (AMPs) and reserve funds to support sustainable, long-term maintenance of residential buildings.
These measures aim to ensure that leaseholders contribute fairly over time towards the upkeep and renewal of shared assets, reducing the risk of large, unexpected costs for future residents.
While these proposals are designed to promote financial planning and protect the long-term condition of buildings, some leaseholders remain concerned that they may not directly benefit from the reserve funds accumulated during their period of ownership.
FirstPort supports the introduction of AMPs and mandatory reserve funds as part of a holistic approach to responsible property management. However, we have shared data to help illustrate the potential impact on service charges and affordability. The government’s proposals anticipate AMPs being prepared by a surveyor. This will introduce an additional cost. We have also advocated for simplified AMPs prepared by a property manager for straightforward buildings to mitigate the cost to homeowners.
We have urged the government to work with valuers and mortgage lenders to ensure reserve funds are properly recognised in property valuations and affordability assessments so that leaseholders receive fair credit for their contributions when selling their homes.
5. Mandatory qualifications for managing agents
The government is proposing to raise professional standards across the property management sector through the introduction of structured qualifications and mandatory training requirements. This drive toward professionalisation aims to enhance competence, consistency, and public confidence – mirroring similar reforms recently implemented in the social housing sector.
We fully support the professionalisation of the industry and already invest heavily in staff training. All FirstPort employees are supported in achieving TPI Level 2 property management qualifications, and many have already qualified and are now progressing to Levels 3 and 4. We welcome proposals for higher-level qualifications as a means of improving standards and strengthening the reputation of the sector.
However, we believe qualifications should be tailored to specific roles rather than imposed as a blanket requirement. For example, targeted certificates in areas such as service charge accounting or building safety would ensure staff develop expertise relevant to their role. This would better reflect the complex nature of modern property management.
We also encourage the government to consider the cost implications of professionalisation – such as higher salaries, ongoing CPD, and membership fees – to ensure that higher standards are achieved in a way that remains affordable for leaseholders.
A better way forward
The government’s consultation is a positive step forward in empowering leaseholders and driving up standards across the property management sector.
There has been understandable scrutiny on managing agents in recent years, and we want to set the bar in terms of what good looks like.
However, to do this, there must be flexibility within any regulations so that they are suitable for developments of all types. It’s vital that property managers are empowered to use their judgement effectively and make the right decisions for residents.
Our contribution to the consultation offers evidence-based guidance to ensure regulations can adapt for different development types and customers. We look forward to learning more about the outcomes of the consultation in due course and remain committed to supporting government’s reform agenda so we can continue to improve services for customers, their homes, and their communities.
