By Robert Poole, director – block administration, Glide Property Administration, a part of LRG
The previous decade has seen a rising concentrate on leaseholder rights, and in the previous couple of years, that focus has intensified into full-scale reform. With the Leasehold and Freehold Reform Act 2024 now enacted and additional measures underneath session, managing brokers are going through extra than simply legislative change. They’re witnessing a whole shift in how their position is perceived and the way their service is scrutinised.
On the centre of this transformation is the leaseholder. Extra empowered, extra knowledgeable, and more and more vocal, leaseholders are now not passive recipients of block administration choices. By way of on-line boards, authorized assets, and even AI-powered instruments, residents are difficult service ranges, questioning prices, and demanding accountability. This cultural shift has far-reaching implications.
For managing brokers, the change is palpable. Day-to-day, it means extra queries, extra requests for documentation, and extra stress to justify choices. E mail volumes are greater. Telephones are busier. And expectations round communication and responsiveness have by no means been higher. Property managers aren’t simply facilitator, they’re educators, negotiators, and infrequently the primary level of contact for more and more refined leaseholder considerations.
And but, this shift is occurring within the context of authorized uncertainty. Whereas components of the Leasehold and Freehold Reform Act have been enacted,corresponding to adjustments to lease extension rights and right-to-manage eligibility. Many provisions are pending additional session or are caught up in judicial overview. Brokers are working in a limbo: anticipated to behave as if the reforms are already reside, however with out the readability or infrastructure to help them.
So what does this imply in observe? For a lot of companies, it’s about leaning into transparency forward of regulation. Offering leaseholders with finances breakdowns, explaining main works prices in plain language, and proactively publishing insurance coverage preparations. These actions not solely anticipate authorized adjustments, but additionally construct belief and cut back the probability of problem.
Coaching is one other precedence. With reforms concerning every part from permitted charges to service cost disclosure, groups want common updates and entry to specialist recommendation. Essentially the most profitable companies are investing in steady skilled improvement, constructing inner information hubs, and dealing extra carefully with authorized and compliance companions.
Expertise additionally performs a crucial position. On-line portals might help handle data requests, ship real-time updates, and preserve a transparent audit path of communications. They permit transparency at scale, making it simpler to proof choices and exhibit service requirements. For brokers managing giant or complicated portfolios, tech isn’t a luxurious; it’s a necessity.
However maybe an important shift is cultural. The reforms aren’t nearly compliance. They’re about redefining the connection between managing brokers and leaseholders. It’s about transferring away from a ‘we all know finest’ strategy and dealing extra brazenly with leaseholders. Individuals need transparency from the beginning, not simply once they push for it and managing brokers should be proactive, not simply responsive.
That is particularly essential in a sector the place poor practices by a minority have broken belief. Hidden charges, aggressive enforcement, and poor communication have created reputational challenges for the trade. Now could be the time for skilled brokers to point out how they’re completely different and why their work provides real worth.
The transition received’t be with out problem. Elevated scrutiny, tighter regulation, and better service expectations will put stress on groups and margins. However there’s additionally alternative. Brokers who can articulate their worth, exhibit moral practices, and help leaseholders by complicated adjustments will stand out.
Leaseholder reform is right here. It brings with it each challenges and prospects. For managing brokers, the trail ahead isn’t just about adapting to new guidelines. It’s about setting new requirements. One of the best companies received’t look forward to reform to be enforced. They’ll lead it.
