All Change Please!

The report shows that the CMA considers the service delivered by Property Managers to be effective and efficient, but nonetheless recognised that there were issues concerning the level of service, value for money and “ability to obtain redress”. The report concludes that there is scope for improvement of existing measures to protect leaseholders and that this will be “best dealt with through targeted measures… rather than through a fundamental reform of the regulatory framework”.

It is not yet known exactly how the recommendations will be implemented but it’s reasonable to expect far-reaching legislative changes which will affect everyone in the sector.

2014 has been an important year for case law in the sector, not least of which being the eagerly awaited Court of Appeal decision: Phillips v Francis. Prior to the successful appeal, if the cumulative costs of all the works to a building exceeded £250, in any one accounting period landlords, RMCs and managing agents found themselves faced with the prospect of having to carry out s.20 consultation on all of those works.

Now common sense has prevailed and we’ve returned to what we’re familiar with, and what Martin v Maryland gave us (the application of the £250 threshold to any one “set” of works) doing away with many hours spent in consultation, not to mention the additional cost.

Towards the end of 2014, another case was heard which is sure to have wide-ranging ramifications in the industry (although we have yet to receive the decision). In Ninety Broomfield Road the Court of Appeal will decide (hopefully once and for all) whether one RTM company can acquire the right to manage of multiple self-contained blocks.

More abstractly, variations in lessee demographics can affect the work of a Property Manager; globally, people are living longer thereby raising issues such as potential alterations to premises, lessees with reduced capacity to handle their own affairs and the risk of discrimination claims.

As more people take on leases, awareness of lessee rights and legislation grows among the population. This presents a unique situation for Property Managers where leaseholders in their properties potentially know more about the law governing their situation than they do.

Changes to lessees result in changes to working practices for Managing Agents: working patterns are in a state of flux with more of us working flexible hours and from a variety of locations (home, office, in the field), and industry regulation becomes tighter with the introduction of ARMA-Q, the growth of the IRPM Members exam syllabus, the new RICS code of practice and the change of Chair at LEASE.

The property management industry is an ever-changing beast, morphing and mutating into a complex and highly pressurised environment. Property Managers need to be well-equipped to deal with challenges from all quarters on a daily basis.