THE government’s announcement on leasehold and ground rents has strengthened the rights of the people living in 440,000 leasehold properties in the South West.

With ground rents capped at £250, those paying more than that will see their annual bills fall by hundreds of pounds. After 40 years, ground rents will be further reduced to a peppercorn rate, meaning nothing will be paid. The newly published Commonhold and Leasehold Bill will see leaseholder’s rights and protections strengthened, and Labour has banned new leasehold flats.

New flats will be built as commonhold, with the ground now being owned by the residents, instead of landlords. Commonhold residents will be able to run their buildings as they wish, empowered to make decisions over building spending, repairs, and local rules. For those living in leasehold flats currently, the Bill will make conversion to commonhold easier.

Whilst this is incredibly welcome news, this is only the start, and I believe there is more to do: Next, we must and end the scourge of extortionate service charges. The property management companies operate in a ruleless, wild west-esque broken sector which gives management companies a license to print money. Too often, I’ve had constituents write to me to in distress as they struggle to pay ever increasing service charges for worsening service. There is a distinct lack of transparency – perhaps event honesty – when it comes to explaining what residents are paying for with their hard-earned cash.

I’ve long campaigned for better regulation of property management companies. Property management is about the maintenance of basic communal infrastructure, but for big players like FirstPort – that were hauled infront of the Housing Minister, and a committee of MPs last year – it’s a license to print free money. Before Christmas I met with TPI - a professional body for residential property managers in England, Scotland, and Wales – who have also called for better regulation within the sector. It is apparent to me that the only way to tackle the issues plaguing the sector – rogue landlords, extortionate service charges, terrible service – is for the government to introduce a proper regulator. A regulator for the sector has the potential to protect residents, increase transparency, and be pro-growth: Leading to a better-functioning market and clearer standards, rather than more bureaucracy.

By reigning in the cowboy property management companies, it’d create a fairer playing field for the hardworking property managers who are playing by rules. A regulator would provide meaningful reform, restore confidence in the leasehold system and, instead of burdening the sector, would streamline reporting and addressing market failures, ultimately ensuring a better functioning market overall. If the property management companies won’t self-regulate, the state must step in and protect residents from less than scrupulous companies.

In the coming weeks, I’ll be pressing minister for housing and planning, Matthew Pennycook, calling for a state regulator of the property management sector. The news around leasehold reform is a step in the right direction: whilst we’re tackling leasehold – next up must be service charges.