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Rising Service Charges Drive Increase in Right to Manage Applications

You have recently received the yearly service charge bill for the leasehold flat you own and rent out. Opening the envelope, you sigh as you realise the charges have increased yet again, this time by 15%. Over the past few years, you have grown increasingly frustrated as the fees charged by your building’s management company continue to rise steeply. Though you want your property well-maintained, you feel powerless against the endless price hikes. Your patience has worn thin. This year’s exorbitant bill may prove to be the last straw before you take action. If other flat owners in your building feel similarly burdened, you could join together to establish a Right to Manage company in Leeds. By taking control of your building’s management, you and your neighbours may finally rein in the unreasonable fees. The time has come to stand up against unaccountable charges and take back power over your property. Your future begins by reaching out to fellow leaseholders today.

Service Charges Are Skyrocketing for Leasehold Owners

As service charges for leasehold flat owners rise due to inflation and increasing costs of building maintenance in Yorkshire, many are struggling with substantial increases. According to research, nearly two thirds of leasehold landlords would consider establishing an RTM or block management company in Leeds to gain more control over costs.

Steep Annual Price Hikes

With living expenses climbing, a majority of flat owners and landlords have experienced service charge increases of at least 10% annually, with some seeing spikes of 21% or more. At present, average yearly service charges amount to £1,580, with one fifth of owners paying over £2,000. Landlords in London face the steepest charges at an average of £1,994 per year, an 11% jump in just two years.

Taking Back Control

RTM and block management companies in Yorkshire allow leaseholders to assume building management in Leeds duties from the freeholder, providing more influence over expenses and operations. A sizable portion of leasehold landlords would consider joining or starting one of these entities. Emily Allott, Block Manager at Valor Block Management Leeds, confirms “Rising costs and service charges have created difficulties for many landlords. Forming an RTM company is an appealing option to gain more control and have a say in how funds are allocated.”

The Future of Service Charges in Yorkshire

If trends continue, service charges may well surpass rent payments for some leaseholders, especially in high-cost areas. RTM companies in Leeds and similar groups are a viable solution for concerned flat owners and landlords to curb unreasonable price hikes and ensure charges accurately reflect the real costs of property maintenance in Leeds. With oversight and input from those directly affected, service charges can be kept at an affordable level.

Otherwise, the future of the leasehold system itself may be in question if charges become unbearable for a large segment of the population. There are already calls for legislative reform, and public support for change is building momentum. For now, collective action at a local level through RTM companies and block management Leeds groups may be the most effective approach.

What Is Right to Manage (RTM) and How Can It Help?

RTM allows leaseholders to take over block management in Leeds responsibilities from freeholders and managing agents. By setting up an RTM company, you and other leaseholders can gain more control and oversight over costs and services.

Reduce and Control Costs

With an RTM, leaseholders can gain better visibility into service charges and ensure money is being spent properly. Cost efficiencies may be found by re-tendering contracts or changing suppliers. Service charges may also be reduced by limiting unnecessary work or expenses. Overall, RTM provides leaseholders the means to gain control and lower costs.

Improve Services

RTM companies are run by leaseholders with a vested interest in high-quality services. Block management in Yorkshire can be tailored to the specific needs and priorities of residents. For example, cleaning schedules can be increased or landscaping improved. Essential repairs and maintenance will also be addressed promptly under resident management.

Build Community

Forming an RTM company brings leaseholders together around a shared goal. This can help build rapport, cooperation, and a sense of community among neighbours. With residents actively involved in property management in Leeds, there are more opportunities for direct communication and addressing any issues. Community spirit is an added benefit of RTM.

RTM provides leaseholders the power to gain control, reduce costs, improve services, and build community. While the process requires effort and time, many see significant rewards and an enhanced living experience. RTM may be an appealing option for leaseholders seeking more say in the management of their property.

A Step-by-Step Guide to Exercising Your Right to Manage in Yorkshire

Research the Right to Manage Process

As a leaseholder, you have the legal right to take over management responsibilities for your building from your freeholder by following the Right to Manage (RTM) process. First, thoroughly research the RTM process to understand your rights and responsibilities. You will need to prove you and fellow applicants own at least two-thirds of the total number of flats in the building.

Find Other Interested Leaseholders

Next, canvass interest from other leaseholders in your building to determine if you have the required number of applicants to proceed. Explain the benefits of RTM, including potential cost savings from reduced service charges and greater control over building works. If there is sufficient interest, hold an initial meeting to discuss next steps.

Serve Notice of Claim

Once you have the required number of qualifying leaseholders, serve notice on the freeholder, any intermediate landlords, and any others entitled to receive rents under a lease. The notice must include details of the premises and applicants. After two months, the RTM will be acquired if no counter-notice is received. The freeholder can object but must apply to the tribunal.

Set Up a Company and Bank Account

Establish a company limited by guarantee to take on the legal responsibility of the RTM. Open a business bank account to handle funds related to management of the building. You will charge service charges to leaseholders and pay for works/services as needed.

Develop a Business Plan

Create a comprehensive business plan outlining how you will effectively manage all aspects of the building. Detail service charge budgets in Leeds, planned/ongoing works, key contracts, and management structure. Communicate the business plan to all leaseholders to promote transparency and set proper expectations before taking over management duties.

Prepare for Handover and Begin Managing

Once all notices have been served and no objections remain, prepare to take over management on the handover date. Make arrangements to obtain all building records/documentation, keys, and access devices from the current manager. On the handover date, you officially become responsible for all management activities, including services, repairs, insurance, and finances. Provide updates to leaseholders on the transition and next steps.


Leaseholders in Yorkshire have an opportunity to collectively manage their building and ensure service charges are fair and work is done efficiently. By forming a Right to Manage company, residents can work together to oversee these responsibilities. While setting up this type of resident-led management requires some initial time and effort, the long-term benefits of self-management make it worthwhile. Unreasonable fees and lack of accountability do not need to persist. Interested leaseholders should start the process now to transfer management oversight to the residents.

Professional guidance is available to help navigate this process. Valor Property Management has 15 years of experience with block management in Yorkshire. They can complete the legal procedures to acquire Right to Manage status for the leaseholders, without requiring landlord consent. As experts in ownership rights, Valor can handle the entire process to transition management responsibilities to the resident-led company.

For professional facilities management services in Yorkshire, please contact Valor Block Management Leeds at 32 Park Cross Street, Leeds LS1 2QH, call 0113 222 4537, or email to discuss assistance options.