New rules have been proposed by the Government for how agents, landlords and freeholders can make insurance claims.
The new “allowed premiums” will prevent property owners and agents from sharing commissions with agents. 
It will also increase transparency about the insurance costs faced by leaseholders, the Department for Housing, Communities and Local Government said.
Scrutinizing costs
Under the Leasehold and Freehold Reform Act 2024, passed by the previous Conservative government just before the general election, leaseholders will also be able to scrutinize their insurance costs.
However, introducing these new measures will require secondary legislation, which the Government is consulting on.
“This legislation recalibrates the legal fees regime and establishes powers to remove barriers that may prevent leaseholders from challenging their landlords.
transparency
“Powers to increase transparency in service charges have also been introduced, giving leaseholders greater scrutinization and the ability to challenge unreasonable costs,” MHCLG said.
“This includes disproportionate remuneration for services in arranging and managing insurance, as well as commissions and other financial benefits given to landlords, freeholders and property managers unrelated to the services provided. There is a possibility that
Robert Poole, Director of Glide (part of Leaders Romans Group) said: “This is the right direction for the sector and one that provides transparency for leaseholders, so we will be open to consultation and largely support its objectives.”
“However, the increased cost of arranging insurance may exceed the proposed allowable premium and administration fees may increase to cover this.”
feudalism
Housing Secretary Matthew Pennycook confirmed last month that Labor intended to “abolish tenancy” this parliament and make commonhold the “default” tenure.
He said the government would do what was necessary to “finally end the feudal tenancy system”.
