By Felix Keen, Director for Industry Engagement at FirstPort, the UK’s leading residential property manager.
The residential property sector is changing. For those living in flats and shared living arrangements the Government’s current focus on strengthening commonhold, lowering barriers to enfranchisement, and increasing regulation could all have an impact.
FirstPort has long been an advocate for bold and balanced reform, particularly more regulation of the whole property management sector, which we see as essential to improving customer confidence in what we do. Progress has already begun. Last year a working group led by property expert Lord Best set out proposals for Government for a new regulatory framework. The aim is to strengthen many of the principles of good practice which currently exist at the more professional end of the sector, and to root out the less scrupulous habits which exist among some less-professional operators.
Since then parliamentary momentum has slowed, understandably because of the pandemic and other priorities. But as we approach a new year, now is the time for action so that Lord Best’s proposals can be adopted into law.
One rule for all
In the past, regulation of the property management sector has been intermittent and at times lax. A number of voluntary codes of practice currently hold operators to account, but set different standards for different parts of the market. This means there is very little consistency- the leading, professional managers offer high-quality service, while those at the other end of the sector often provide much less.
The new system will change that, and we expect that everybody who works in our sector and holds responsibilities at a development will need to be trained, qualified, and licensed under the same rules. At FirstPort, this is already part of our training and development programme, and we are confident that the vast majority of our colleagues already hold the right credentials or have the knowledge to achieve them comfortably. But for others it will mean a change in how they operate, and who they employ to look after sites and residents.
Empowering residents
The managing agents’ role is often behind the scenes, but the way our role is adapting will need to take centre stage as the way we work in partnership with residents evolves and strengthens.
Ultimately, regulation is about empowering residents. Everyone who lives in a development will have an opportunity to be more involved in how it is run, with more control over big decisions and day-to-day tasks. But more powers mean more responsibilities, and as residents are granted greater control over things like finances, insurance, and fire safety, informed advice will become more important.
Professional property managers will be best placed to provide support, and we expect that to become a major part of our role – another reason why operators need to be held to the highest standards.
The framework is likely to involve two-tier regulation, covering both companies and individuals. This will give residents confidence in the firms they employ, as well as the individuals they work with on a daily basis. From our point of view, it is a positive step as it provides an extra impetus for our colleagues to take on new qualifications and opens up opportunities for accreditation and training.
Maintaining momentum
Different buildings work in very different ways, and some will find the transition to more resident involvement easier than others. But fundamentally the principle of providing more confidence, clarity, and choice for those in communal living arrangements is a positive move forward. This is an exciting new chapter for how residents and managing agents work together, and we hope that government can bring forward change as soon as possible.
Want to know more? Just get in touch…
At FirstPort, we understand the pressures and complexities that property management creates for a Residents’ Management Company – we’re here to help you. With over 40 years’ experience, we work with RMC directors to help them meet their management and legal obligations, whilst delivering a high quality service for their leaseholders.
To find out more, call us on 01582 393 756 or visit www.firstport.co.uk/rmc.
