Nearly five million leasehold homes could face a significant shake-up in how they are managed following Government proposals to introduce an independent regulator for property agents, as new analysis from residential property management specialist Rushbrook reveals that annual service charges have risen by more than 26% in just one year.
The proposed reforms would place estate agents, residential managing agents and estate managers under greater regulatory scrutiny, with additional measures being considered to tackle excessive administration fees and strengthen financial transparency across the leasehold sector.
Rushbrook has welcomed the proposals, arguing that the growing sums of money handled by managing agents make stronger professional standards and greater accountability increasingly important.
The announcement comes as Rushbrook’s analysis of the latest Government figures reveals approximately 4.902 million leasehold dwellings in England, including 4.633 million within the private sector. Almost 1.911 million are privately rented properties, representing 39% of all leasehold dwellings, while flats account for 82.4% of the total.
These figures demonstrate the potential impact of greater regulation on landlords, managing agents, residential property investors and the wider block management sector.
The growing financial responsibility placed on managing agents is particularly evident in rising service charges.
Rushbrook’s analysis of Government data shows that the average annual service charge paid by owner-occupier leaseholders reached £2,169 in 2024–25, representing a 26.2% increase on the previous year.
Over five years, average annual service charges have risen by 33.4%, reflecting increasing expenditure associated with maintaining and operating residential buildings.
Ground rents have also increased, with average annual payments among owner-occupier leaseholders rising from £235 in 2023–24 to £315 in 2024–25, an increase of 34.3%.
While these figures highlight growing financial pressures, Rushbrook emphasises that higher charges do not automatically indicate poor management. Inflation, maintenance expenditure and the wider costs associated with operating residential properties have all placed pressure on budgets.
Nevertheless, the scale of expenditure reinforces the need for transparent service charge administration, effective financial planning and clear communication between managing agents, landlords and residents.
The Government’s proposed reforms also seek to address additional administration fees, which can vary considerably depending on the managing agent and the service required.
Published fee schedules examined by Rushbrook reveal charges of £50 to £60 for permission to keep pets, £60 to £150 for alterations consent and £100 to £250 for management information or LPE1 sales packs.
Other examples include remortgage administration fees of £80 to £150, notices of transfer costing £80 to £100 and certificates of compliance ranging from £120 to £150.
Roma Sharma, Managing Director of Rushbrook, believes stronger regulation represents an opportunity to reinforce confidence in the residential management profession.
“Property managers are entrusted with people’s homes and increasingly substantial sums of their money, so it’s only right that professional standards keep pace with that responsibility,” she said.
Sharma acknowledged that inflation and rising property maintenance costs have contributed to higher charges, but stressed that fees must remain fair, transparent and justifiable.
She added that reputable operators should welcome greater scrutiny, particularly given the significant number of privately rented properties operating within the leasehold sector.
For residential management companies, the proposed changes underline the growing importance of professional competence, financial accountability and consistent service delivery.
As the management of residential buildings becomes increasingly complex, the ability to demonstrate value, maintain properties effectively and provide transparent financial information will remain central to building confidence among leaseholders, landlords and investors.
With almost five million leasehold homes potentially affected, the proposed reforms could mark an important turning point in the professionalisation of UK residential property and block management.
Data tables and sources
Government leasehold dwelling estimates show 4.902m leasehold dwellings across all tenures, of which 4.633m are within the private sector. The private rented sector accounts for 1.911m leasehold dwellings, comprising 337,000 houses and 1.574m flats.
GOV.UK – Leasehold dwellings 2024 to 2025
Government English Housing Survey data was used for average annual ground rents and service charges paid by owner-occupier leaseholders.
GOV.UK – English Housing Survey data on leaseholders
Example administrative charges were taken from published fee schedules.
Jigsaw Homes – Additional administration fees for leaseholders
Enfield Council – Leasehold administration chargesView the full data tables and sources online here.
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