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If you own a flat, sit on a residents’ management company, or are responsible for managing a residential block or estate, you’ll likely be familiar with service charges. They play an important role in maintaining communal areas, arranging repairs and ensuring buildings are managed safely and efficiently.
To help improve standards across the industry, the Royal Institution of Chartered Surveyors (RICS) has introduced a new edition of its Service Charge Residential Management Code, bringing greater focus to transparency, communication and accountability. The updated Code came into force on 7th April 2026 and reflects recent changes in building safety legislation.
While it may sound like a technical update, the changes are designed to make things simpler and clearer for everyone involved.
One of the most common frustrations leaseholders have is understanding exactly what they’re paying for and how service charge money is being spent.
The updated Code encourages managing agents and landlords to be more open about costs, provide clearer financial information and communicate more effectively with residents. Its aim is to promote fairness, consistency and better relationships between all parties.
More transparency around service charges
The new guidance places greater emphasis on producing clear budgets and easy-to-understand financial reports.
Leaseholders should have a better understanding of where their money is going, while managing agents are encouraged to present information in a more straightforward and accessible way.
Better communication with residents
Good communication can often prevent issues from becoming disputes.
The Code reinforces the importance of keeping residents informed about planned works, service charge spending and decisions that affect their building. Regular updates and clear explanations can go a long way towards building trust.
Stronger focus on accountability
The revised guidance highlights the importance of maintaining accurate records and having clear processes in place when making decisions about service charge expenditure.
For professional managing agents, it’s about demonstrating that funds are being managed responsibly and in the best interests of the building and its residents.
Reflecting new building safety requirements
The Code has also been updated to take account of wider changes introduced through the Building Safety Act and Fire Safety Act.
As building safety remains a key priority across the residential sector, property managers are expected to understand and comply with these evolving responsibilities.
In simple terms, leaseholders should benefit from greater clarity.
You should find it easier to understand service charge budgets, what your payments are being used for and how decisions are being made about your building. Better communication should also help reduce misunderstandings and address concerns more quickly.
For managing agents, many of the principles in the new Code will already form part of day-to-day best practice. However, the update provides a useful opportunity to review processes and ensure communication, reporting and record-keeping remain fit for purpose.
As regulations continue to evolve, residents rightly expect a high level of transparency and professionalism from those responsible for managing their homes.
With increasing regulatory requirements and greater expectations around transparency, residential block management is becoming more complex.
Professional managing agents can support resident management companies, freeholders and landlords by:
At GFW, we work closely with clients to deliver practical, transparent and proactive management solutions tailored to each development.
The new RICS Service Charge Residential Management Code is a positive step for the sector. It promotes clearer communication, greater transparency and more consistent standards, helping to build confidence among leaseholders while supporting good property management practices.
At GFW, we welcome measures that improve understanding and trust between residents, landlords and managing agents. By staying ahead of industry changes and maintaining open communication, we can help ensure residential developments are managed effectively, fairly, responsibly and transparently.
The introduction of the new Code provides an ideal opportunity to review current management practices. Questions to consider include:
GFW can assist with management reviews and best-practice assessments to help ensure developments remain compliant and effectively managed.
If you are a landlord, resident management company director, right-to-manage company, or leaseholder seeking advice on service charges, compliance or residential block management, GFW’s experienced team would be pleased to assist. We offer tailored support to help developments operate efficiently, transparently and in line with current best practice.
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