© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
The Ringley Group have recently produced a market research report into the ownership, services, management and running costs of apartment buildings in London. Here Mary-Anne Bowring shares some highlights.
Apartment buildings
There are currently 1,252 apartment buildings across inner London containing 30+ dwellings, 60% of which are in Zone 1 and the Docklands constructed during the last property boom. The balance comprises 2,123 smaller apartment buildings with up to 29 dwellings and commercial premises.
Subletting
Between 50-60% of all inner London apartments are sublet, rising to an estimated 70+% for the newer blocks constructed since 2005, underpinning the strength of the buy-to-let sector during the property boom. However when it comes to controlling service charges just 9.5% of tenants have control over their own building management costs resulting in excessive bills, unnecessary services or obtaining limited benefit.
Service Charges
Service charges for Knightsbridge and Mayfair residences over 4,500sqft in size can be in excess of £25,000 per annum but enjoy a high level of facilities and services. Annual service charges for more typical two bedroom apartments vary hugely by postcode, with areas like Chelsea and Canary Wharf typically commanding £2,600 to £6,000 per annum while in Tooting the equivalent costs are £800 to £950 per annum – but often receive an inferior level of service with fewer facilities like gyms, pools, increased security or concierge.
Value for money?
Many individual flat owners often don’t receive the value they deserve. Thousands of pounds a year can be saved simply by increasing involvement in the management of the building - yet only 9.5% in Central London appear to be doing so.
Analysis
The lack of control that residents in the capital have over the management of their building suggests that leaseholders are either apathetic, unaware of other cost effective alternatives, or lack the support and momentum required to initiate a change. Worse still, it indicates that leaseholders are unaware that if they cannot afford to buy their freehold that they can still take control of the management of their building by exercising their right to manage, a no-fault procedure.
Mary-Anne Bowring is Managing Director of the Ringley Group.
Survey Notes
The survey data was collected during 2011 by a combination of door-to-door surveys, interviews, map references and checks at the Royal Mail and Land Registry across 15 inner London postcodes from Vauxhall in the south to Hampstead in the north, Maida Vale in the west to the Docklands in the east.