Block Management UK Ltd risen to the challange Block and estate managers have faced their most demanding years – but have risen to the challenge The last five years have been a turbulent time for block and estate management – with the Grenfell tragedy, Brexit, the pandemic and the cost-of-living crisis transforming the sector. The industries have changed dramatically, and companies have had to adapt quickly to each new challenge as they arose. Here, David Collinson, MD at Block Management UK, reflects on the last few years and how companies like his have changed the way they operate under the most difficult of circumstances. Grenfell The tragedy at Grenfell was a turning point for all that are involved in the management of blocks of flats, a moment of tragedy that brought the challenges of the sector into the public eye. The sector changed overnight, with many leaseholders in high rise blocks fearing their property could be fitted with the same dangerous cladding, along with many other safety defects. Since then, companies such as ours have worked tirelessly on behalf of leaseholders to ensure their buildings are safe, and I must say without much help from the government. Its only now some five years later they appear to be doing the right thing, and to be honest their efforts are still falling short, with many leaseholders still caught up in the aftermath of building safety defects. Changes to our portfolio The changes in the industry over the last few years have been stark. A noticeable change within the leasehold arena is that ten years ago our portfolio would have been 80% buy-to-let and 20% owner-occupied. That has dramatically changed and has actually switched around - now we have around 20% buy-to-let in some areas, and 80% owner-occupied. This shows many buy-to-let investors have simply moved away from investing in leasehold flats, fuelled by Brexit and the cost-of-living crisis. Brexit has added to the switch from buy-to-let to owner-occupied, with tax changes on landlord income making buy-to-let unprofitable for some. We have also noticed a lot of people with buy-to-lets have simply moved out of the market. The cost-of-living crisis has unfortunately compounded this, pushing more people out of the position of upgrading from a flat to a house and, even though service charges are split across many flats, we have seen significant increases in soft service costs and utilities. Accidental landlords, typically someone forced into retaining or inheriting their flat, also face a difficult challenge as in many cases they are reliant on rental income to cover the cost of outgoings. It's not always viable to raise the rent to cover fluctuating service charges, placing an additional burden on them. Brexit in particular has brought even more challenges to the sector, particularly in maintenance and the supply chain for parts. For example, almost all lifts in residential blocks are produced abroad, and that means it has been difficult at times to secure parts for repair. Even some of the biggest lift service providers have not been able to fulfil orders. It’s not easy when, in reality, a lift is an essential piece of equipment many rely on day to day. Covid-19 pandemic Leaseholders and block management were also severely affected by the coronavirus pandemic. As a key service provider, it was vital companies like ours remained open throughout the pandemic to provide our services to the people living in the properties we manage. We relied on cleaning companies and repair services to support us throughout, so a lot of work went into ensuring these services continued uninterrupted. It was very tough time for our residents, and we had enormous sympathy for the position many were in. We put ourselves in the shoes of someone who was used to getting up at 6.30am in the morning to go off to work who is now locked in their flat for most hours during the day and is not allowed out. I can understand being couped up inside was a challenging time for people. Pair that with Covid outbreaks and vulnerable people we had to make sure were shielded correctly – there was a lot of pressure on us to make sure people were safe. How the sector has changed We redefined our role a few years ago – we’re not just property or block managers, we are people managers too. I would say around 70% of our work now is helping people, and we are not necessarily compensated for that – it can be difficult but extremely rewarding. Years ago you would only really speak to the client, a freeholder or residents’ management company’s board of directors – but now it has become much more complex and people-focussed. And as technology has progressed, we have had to move with the times too. With social media platforms now playing a huge part in many people’s daily lives, we have been constantly developing our in-house software to deliver two-way instant communications, as this is what many of our clients now expect. People are now used to the ease of the Amazon model – if you need something, a few clicks later and, hey presto, it’s with you the next day – and we have tried to optimise our software to be as fast and efficient as possible. It has been a challenging few years for the sector, and we have had to dramatically transform the way we work. But through it, the sector has grown and developed, learning some important lessons on the way - something I think is for the better. For more on Block Management UK and its services, visit www.blockmanagementuk.ltd (17 March 2023 )

Block Management UK Ltd risen to the challange

Block and estate managers have faced their most demanding years – but have risen to the challenge

The last five years have been a turbulent time for block and estate management – with the Grenfell tragedy, Brexit, the pandemic and the cost-of-living crisis transforming the sector.
The industries have changed dramatically, and companies have had to adapt quickly to each new challenge as they arose.

Here, David Collinson, MD at Block Management UK, reflects on the last few years and how companies like his have changed the way they operate under the most difficult of circumstances.

Grenfell
The tragedy at Grenfell was a turning point for all that are involved in the management of blocks of flats, a moment of tragedy that brought the challenges of the sector into the public eye.

The sector changed overnight, with many leaseholders in high rise blocks fearing their property could be fitted with the same dangerous cladding, along with many other safety defects.

Since then, companies such as ours have worked tirelessly on behalf of leaseholders to ensure their buildings are safe, and I must say without much help from the government.

Its only now some five years later they appear to be doing the right thing, and to be honest their efforts are still falling short, with many leaseholders still caught up in the aftermath of building safety defects.

Changes to our portfolio
The changes in the industry over the last few years have been stark.

A noticeable change within the leasehold arena is that ten years ago our portfolio would have been 80% buy-to-let and 20% owner-occupied.

That has dramatically changed and has actually switched around - now we have around 20% buy-to-let in some areas, and 80% owner-occupied.

This shows many buy-to-let investors have simply moved away from investing in leasehold flats, fuelled by Brexit and the cost-of-living crisis.

Brexit has added to the switch from buy-to-let to owner-occupied, with tax changes on landlord income making buy-to-let unprofitable for some. We have also noticed a lot of people with buy-to-lets have simply moved out of the market.

The cost-of-living crisis has unfortunately compounded this, pushing more people out of the position of upgrading from a flat to a house and, even though service charges are split across many flats, we have seen significant increases in soft service costs and utilities.

Accidental landlords, typically someone forced into retaining or inheriting their flat, also face a difficult challenge as in many cases they are reliant on rental income to cover the cost of outgoings. It's not always viable to raise the rent to cover fluctuating service charges, placing an additional burden on them.

Brexit in particular has brought even more challenges to the sector, particularly in maintenance and the supply chain for parts.

For example, almost all lifts in residential blocks are produced abroad, and that means it has been difficult at times to secure parts for repair.

Even some of the biggest lift service providers have not been able to fulfil orders. It’s not easy when, in reality, a lift is an essential piece of equipment many rely on day to day.

Covid-19 pandemic
Leaseholders and block management were also severely affected by the coronavirus pandemic.
As a key service provider, it was vital companies like ours remained open throughout the pandemic to provide our services to the people living in the properties we manage.

We relied on cleaning companies and repair services to support us throughout, so a lot of work went into ensuring these services continued uninterrupted.

It was very tough time for our residents, and we had enormous sympathy for the position many were in.
We put ourselves in the shoes of someone who was used to getting up at 6.30am in the morning to go off to work who is now locked in their flat for most hours during the day and is not allowed out.

I can understand being couped up inside was a challenging time for people.

Pair that with Covid outbreaks and vulnerable people we had to make sure were shielded correctly – there was a lot of pressure on us to make sure people were safe.

How the sector has changed
We redefined our role a few years ago – we’re not just property or block managers, we are people managers too.

I would say around 70% of our work now is helping people, and we are not necessarily compensated for that – it can be difficult but extremely rewarding.

Years ago you would only really speak to the client, a freeholder or residents’ management company’s board of directors – but now it has become much more complex and people-focussed.
And as technology has progressed, we have had to move with the times too.

With social media platforms now playing a huge part in many people’s daily lives, we have been constantly developing our in-house software to deliver two-way instant communications, as this is what many of our clients now expect.

People are now used to the ease of the Amazon model – if you need something, a few clicks later and, hey presto, it’s with you the next day – and we have tried to optimise our software to be as fast and efficient as possible.

It has been a challenging few years for the sector, and we have had to dramatically transform the way we work.

But through it, the sector has grown and developed, learning some important lessons on the way - something I think is for the better.

For more on Block Management UK and its services, visit www.blockmanagementuk.ltd

(17 March 2023 )

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