Almost a year ago, we examined the growing chorus of voices advocating for increased regulation across the estate agency sector. Since then, despite a change in government, the issue of formal regulation has never left the table. At the same time, the pressures and expectations on agents have continued to rise.

While regulation can often feel like more red tape, it’s also an opportunity – if done right – to bring credibility, consistency, and clarity to an industry that’s often accused of lacking all three in the eyes of the public and policymakers. Indeed, while many agents already operate to high professional standards, formal regulation could help challenge outdated perceptions and shine a light on the best of the sector.

So, what do we expect to happen next?

An open letter to MPs

 In early 2024, a coalition of industry bodies, including the British Property Federation (BPF), Royal Institution of Chartered Surveyors (RICS), Federation of Private Residents’ Associations (FoPRA), The Property Institute (TPI), and Propertymark, issued an open letter to Angela Rayner, Secretary of State for Housing, Communities and Local Government.

In the letter, they called for the introduction of a regulated framework for property agents, urging the government to:

• Set standards for those working in the residential agency sector, through a Code of Practice
• Introduce mandatory qualifications and competence standards
• Ensure individuals and firms raise service standards through the introduction of regulation of property agents to the above code of conduct, and in line with the principles of better regulation.

A further push – leasehold reform as a gateway

Subsequently, the Property Institute, backed by the Conveyancing Association, drafted another open letter addressed to Matthew Pennycook MP, Minister of State for Housing and Planning. This letter called for the regulation of property agents to be included in the secondary legislation underpinning the Leasehold and Freehold Reform Act 2024.

The Act received royal assent on 24 May 2024 and is being implemented in stages, with secondary legislation and further measures expected to be introduced over the coming years.

This recent push focuses initially on leasehold property managers, but the broader aim is clear: to create a foundation that could eventually lead to regulation across the board. The logic is simple – build an educated, qualified, and accountable community of agents to enhance trust across the property transaction process.

What could regulation mean for estate agents?

Understandably, many agents feel cautious – or even frustrated – about the idea of further oversight. Common concerns include:

• Will this mean more hoops to jump through?
• More bureaucracy?
• More risk of falling foul of rules?

But here’s the potential upside:

• A level playing field: Clearer rules and professional standards mean all agents are held to the same baseline.
• Greater professional recognition: Regulation could help elevate the public perception of estate agency work and distinguish professional agents from unregulated operators.
• Closer industry collaboration: Conveyancers, lenders, and others in the property chain are all calling for greater consistency. A regulated framework could help deliver it.

What can estate agents do to prepare for greater regulation?

The conversation around agent regulation is far from over, and the direction of travel is clear. Being proactive now doesn’t just help you prepare you for what’s coming, it helps to protect your reputation, enhances trust with your clients and professional partners, and frees you to focus on growth, not firefighting.

At Legal Eye, we’re already supporting estate agents to implement the kind of robust policies, training, and audit trails that are likely to form the backbone of future regulatory expectations. Whether it’s AML compliance, data protection, complaint handling, or due diligence, we offer practical, commercially sound solutions, not off-the-shelf checklists or unrealistic tick-box exercises.

If you’re unsure where your current processes stand or you’d like to explore what “regulation-ready” looks like for your agency, our experienced team is here to help. We’re not here to add to your workload, we’re here to make sure it’s manageable, compliant, and future-proof.