Leaseholders across England and Wales are increasingly pursuing the Right to Manage (RTM) as a direct response to systemic failures in traditional block management. Driven by leasehold reform momentum, heightened obligations under the Building Safety Act 2022, and rising frustration over opaque service charges, RTM applications are no longer a niche strategy — they are a mainstream reaction to escalating costs and perceived mismanagement.
Key takeaways
- The Leasehold and Freehold Reform Act 2024 substantially broadened RTM eligibility by increasing the non-residential floorspace limit from 25% to 50%, unlocking self-management for thousands of mixed-use developments.
- Opaque service charges and hidden commissions remain the primary driver of disputes, with government and sector findings consistently identifying cost transparency and poor value for money as the leading complaints among leaseholders.
- The Building Safety Act 2022 has introduced stringent statutory duties and potential criminal liability for designated Accountable Persons and RMC directors, accelerating RTM adoption as leaseholders seek direct control over compliance and safety appointments.
- First-tier Tribunal (Property Chamber) challenges and sector surveys show that disputes over unreasonable major works, lack of Section 20 consultation, and unexplained fee increases frequently serve as the final catalyst for RTM campaigns.
The Triple Pressure on Leaseholders
The surge in RTM activity is the result of three converging forces. First, legislative momentum has shifted political and public focus toward leaseholder empowerment. The Leasehold and Freehold Reform Act 2024 introduced landmark changes, including the right to extend leases to 990 years (updating the statutory terms under the 1993 Act) with abolished marriage value, standardized service charge accounts, and the removal of freeholder litigation cost-recovery barriers. This statutory shift has emboldened leaseholders to reject status quo management.
Second, the Building Safety Act 2022 has fundamentally altered the risk landscape. RMC directors and designated Accountable Persons now carry direct statutory responsibility for structural safety, cladding remediation, and fire risk management — duties historically delegated to managing agents. The legal mandate to maintain the "Golden Thread" of building information, register higher-risk buildings, and implement Mandatory Occurrence Reporting has created a compliance burden that many legacy managing agents struggle to deliver. As a result, leaseholders are stepping in to ensure competent governance and protect themselves from severe regulatory and legal fallout.
Third, service charge disputes have reached a boiling point. Inquiries by consumer bodies and data from the Leasehold Advisory Service (LEASE) demonstrate widespread dissatisfaction with financial transparency. Unexplained budget spikes, undisclosed insurance broker commissions, and delayed communal repairs have severely eroded trust. When managing agents fail to provide itemised accounts, tender contracts competitively, or adhere to Section 20 statutory consultations, residents feel alienated from their own investments. RTM offers a statutory route to regain control over budgets, bank accounts, and procurement.
Why the Pipeline Isn’t Slowing — It’s Accelerating
What sets today’s RTM wave apart is its self-sustaining momentum. Once a single building successfully secures management, the model is replicated across neighbouring developments. Supported by national advocacy groups like the Leasehold Knowledge Partnership (LKP) and the National Leasehold Campaign (NLC), successful leaseholders share case studies demonstrating lower insurance premiums, transparent accounting, and responsive contractor management, proving to neighbouring blocks that self-determination is viable.
The rise of dedicated property technology has also lowered the barrier to entry. Modern proptech platforms, open-banking accounting software, and digital compliance registers allow leaseholders to benchmark contractor quotes, scrutinise historic expenditure, and manage corporate filings without the administrative friction of the past. These tools demystify block governance, making RTM feel less like a complex legal gamble and more like a structured operational upgrade.
The Road Ahead: From Reaction to Resolution
RTM is no longer merely a defensive dispute mechanism; it is becoming a standard governance model. As buildings navigate ongoing safety deadlines and tighter statutory reporting standards, leaseholders recognise that controlling their block is essential to maintaining property values, ensuring resident safety, and eliminating arbitrary fees.
When a managing agent fails to supply transparent ledgers, justify expenditure, or resolve essential maintenance, RTM provides a clear, statutory mechanism to intervene. Supported by expanding legal rights and modern digital governance tools, the transition from reactive frustration to independent management has never been more accessible.