Shaping a better system for property management

FirstPort is committed to driving greater transparency and higher standards across our industry, in what is an increasingly complex operating environment. In September, we published our first Quarterly Service Update demonstrating our ongoing commitment to higher service standards for our customers and building greater trust.

While we await the consultation’s findings and government’s next steps, we’ve summarised some of the key takeaways from the consultation, their likely impact, and what needs to be done to ensure these reforms deliver on the government’s ambitions.

1. Improving transparency of information

The consultation proposed introducing a new annual report and standardised formats for service estimates and accounts so residents can more clearly understand services and how much they are paying.

The government’s proposed templates provide a good starting point for uncomplicated properties; however, we need to make sure that these effectively scale for more complex developments with flexibility in format to ensure better clarity and usability. To help shape this, we have shared examples of documents that illustrate the level of detail required for more complex developments.

2. Digital first approach to resident communications

The government wants landlords and managing agents to use electronic methods to communicate with residents – encouraging a ‘digital first’ approach where appropriate. However, it acknowledges this won’t be suitable for all residents, so it suggests retaining paper documents as the default option.

We know that digital communication allows for a more sustainable and efficient way of engaging with residents. As a business we have invested in our My Home customer portal and can see firsthand how this enables more efficient, transparent and convenient contact.

We recognise that digital communication may not suit everyone and support proposals that encourage a transition over time, with the right support for customers who need it.

3. Making consultations for major works fit for purpose

In a bid to modernise outdated thresholds, the consultation proposes raising the cost limits that trigger leaseholder consultations and indexing them to inflation.

In our response, we shared our experience of how the current thresholds can negatively impact relatively minor works, especially in smaller blocks, adding time, cost, and frustration for customers.

We recognise that as property managers, it is our role to bring people together and help find consensus. In streamlining some formal consultations, we should have more time to engage meaningfully on the things that matter most to residents. This will be particularly important as the government aims to promote commonhold.

4. Embedding long-term financial planning into leasehold management

As part of its proposed reforms, MHCLG plans to introduce mandatory Asset Management Plans (AMPs) and reserve funds to support sustainable, long-term maintenance of residential buildings.

We know from experience that these factors ensure customers contribute fairly over time towards the upkeep and renewal of shared assets, reducing the risk of large, unexpected costs for future residents.

Some customers remain concerned that they may not directly benefit from the reserve funds accumulated during their period of ownership. To help demonstrate the potential financial impact of the government’s proposals on homeowners, we have shared data illustrating the potential effects on service charges.

5. Mandatory qualifications for managing agents

The government is proposing to raise professional standards across the property management sector through the introduction of structured qualifications and mandatory training requirements.

We fully support the professionalisation of the industry and are working towards all operational staff achieving at least a TPI Level 2 qualification. Many have already qualified and are now progressing to Levels 3 and 4.

We believe qualifications should be tailored to specific roles rather than a blanket requirement for anyone working with a managing agent. Targeted certificates in areas such as service charge accounting or building safety would help to better ensure staff develop expertise relevant to their role. This would better reflect the complex nature of modern property management and the various specialist skillsets required.

A better way forward

The government’s consultation is a positive step forward in empowering customers and driving standards across the property management sector.

Our contribution to the consultation offers evidence-based guidance to ensure regulations can adapt for different development types and customers. We look forward to learning more about the outcomes of the consultation in due course and remain committed to supporting government’s reform agenda so we can continue to improve services for customers, their homes, and their communities.

By Mairead McErlean, Head of Compliance and Regulatory Affairs, The FirstPort Group