Leeds-based property managers Watson have welcomed government reforms aimed at ending the ‘Wild West’ of poor managing agent behaviour. The firm, which specialises in residential block management, has issued a white paper: ‘UK Leasehold Reforms: Government Steps Up to Strengthen Leaseholder Rights.’ The comprehensive document details the key actions needed for reform, and how the government has intervened to strengthen leaseholder rights.
As the government moves to abolish new leasehold tenures and crack down on unregulated agents, Watson is urging the wider UK property industry, including developers, Residents’ Management Companies (RMCs), and investors, to prepare for a market where professional accountability is no longer optional, but mandatory.
Watson MD Ian Omant explains: “The UK residential property sector is standing on the threshold of its most significant structural overhaul in decades. Following the government’s comprehensive announcements throughout 2024 and 2025 regarding Leasehold Reform, the era of the so-called “feudal” system is coming to a close.”
Ian observes that for Watson, a leading residential block management firm, these legislative changes are not a disruption, but a long-awaited validation of their business model, which is built on transparency, accreditation, and leaseholder empowerment.
“For years, the leasehold sector has been plagued by systemic issues that have disadvantaged millions of homeowners. We’re pleased to see that the government’s critique has been blunt: the system is outdated, and the property management sector suffers from a lack of regulation.”
He adds that Housing Ministers have rightly identified that, until now, anyone could establish themselves as a managing agent without formal training or oversight. This regulatory gap has allowed rogue agents to levy opaque service charges, neglect maintenance, and trap leaseholders in cycles of escalating costs.
Ian says: “At Watson, we recognise that the newly announced reforms tackle these injustices head-on. The key measures include four key elements.
“The first of these is standardised service charges, which will require detailed, clear breakdowns of costs to prevent hidden fees.
“Second, the shift to Commonhold will mean the abolition of leasehold for new flats, reinvigorating Commonhold as the default tenure. This will give owners true control over their buildings.
“Also, the regulation of agents will introduce mandatory qualifications and a code of practice to stamp out rogue operators.
“Finally,” adds Ian, “there will be a rebalancing of legal costs, preventing landlords from automatically passing their legal fees to leaseholders during disputes.”
Ian explains that the best-performing managing agents are already prepared for the future of housing.
He comments: “While much of the industry scrambles to adapt to these rigorous new standards, Watson has long anticipated this regulatory pivot.
“The government’s description of the sector as a ‘Wild West’ is accurate for too many, but it is a label we have worked tirelessly to distance ourselves from. As a firm already accredited by The Property Institute (TPI) and regulated by the Royal Institution of Chartered Surveyors (RICS), Watson has voluntarily adhered to the strict codes of conduct that the government is now seeking to legislate.”
Ian says that perhaps the most transformative element of the reforms is the shift in power. The government is making it easier for leaseholders to claim the Right to Manage (RTM), purchase their freehold, or convert to Commonhold. Crucially, the reforms will also grant leaseholders the power to veto and replace underperforming managing agents.
This specific change presents a significant risk to complacent agencies but an opportunity for client-focused firms.
“The ability for leaseholders to easily replace their managing agent is a major change for the industry,” says Ian. “It introduces genuine market competition based on quality of service. We welcome this. We have supported numerous blocks in navigating the RTM process, transitioning them from developer control to resident control. We operate on the principle that we must earn our contract every day.”
As the UK moves toward a Commonhold-preferred future, he explains that developers must also pivot. The sale of new leasehold flats will eventually cease, replaced by structures where residents own the freehold collectively. This requires a management partner who understands the intricacies of resident-led governance.
Ian suggests that for existing RMC directors currently navigating the complexities of the Building Safety Act and the new leasehold reforms, the need for a qualified partner has never been greater. He says that the days of the “amateur” agent are numbered. Compliance regarding fire safety, insurance commissions, and client money protection requires a level of professional rigour that only regulated firms can provide.
“The reforms are broad and complex, and our white paper has been produced to help owners and RMC directors understand the scale of positive legislative changes that are imminent. It’s designed as a practical guide to the legislative changes that property owners expect and deserve.”
The Watson white paper ‘UK Leasehold Reforms: Government Steps Up to Strengthen Leaseholder Rights.’ is available as a download from the Watson website, www.watsonpm.co.uk.