Synopsis
This article looks at the latest edition of the service charge residential management code of practice, which has been brought in by the Royal Institution of Chartered Surveyors. There is a look at the background to the code, why it’s been updated, and the specific changes that have been made from the previous edition.
The blog also looks at the services offered by Maunder Taylor, who are members of the RICS and also offer residential management services, either for blocks or for individual properties.
This article will take between three and four minutes to read.
One of the most contentious areas of property management relates to service charges on leasehold properties. The Royal Institution of Chartered Surveyors (RICS) has just brought out a new edition of its code of best practice. Here, Maunder Taylor, take a closer look at the key elements.
Maunder Taylor – Chartered Surveyors in Totteridge
As well as being chartered surveyors – and members of the RICS – Maunder Taylor also act as property managers. One of our key services is residential block management, which we offer in Welwyn Garden City, Potters Bar and across North London and Hertfordshire.
The Last Edition of the Code
The code was first published in 1997 and has undergone multiple revisions to address legislative changes and industry standards. It is designed to promote transparency and fairness relating to service charges, and it is used by courts and the First-tier Tribunals to settle any related disputes.
The update was considered necessary to take account of the various changes in the law over the last 10 years; it also extends the scope of the code to include for-profit and non-profit social housing providers.
It involved expert input, stakeholder consultation, and a public feedback process, with more than 340 responses.
The New Code in 2026
The fourth edition of the code was published in March and became effective earlier this month. The key elements to incorporate were major updates from The Building Safety Act 2022 and The Fire Safety Act 2021. Both were largely driven by the Grenfell Tower fire in London in June 2017, which claimed 72 lives and exposed shortcomings in UK building regulations.
The updated code provides specific guidance on how costs related to building safety should be handled within service charges. It also helps distinguish between standard maintenance and the new, complex statutory requirements for high-risk buildings (those over a certain height).
The RICS has tightened the rules on how money is handled and reported to leaseholders; managers and landlords are expected to be transparent about any commissions, mark-ups, or administration fees earned from third-party services (like insurance or utilities). And year-end accounts must now be signed off within four months of the year-end. If a manager fails to meet this deadline, they must provide a formal written explanation to all leaseholders.
The code now expects a formal review of all major service contracts (cleaning, gardening, lift maintenance) at least every three years to ensure pricing remains competitive. And there is an encouragement to engage in Alternative Dispute Resolution as a way of resolving service charge disputes, rather than going to a tribunal.
The Purpose of the New Additions
As well as reflecting the changes in the law, the latest edition of the code seeks to improve general standards, promote consistency in service charge management, reduce the causes of disputes and encourage sustainable, planned and cost-effective long-term maintenance with planned preventative maintenance.
The professional standard also emphasises that landlords and managing agents must demonstrate competence, objectivity and transparency. It calls for “clear communication, timely documentation, and a value-for-money approach to service delivery”.
Contacting Maunder Taylor
As chartered surveyors in Totteridge, we offer professional valuations on properties, lease extensions and probate issues. We can act for either landlords or tenants when it comes to rent reviews, and we can help when it comes to getting you the right amount and type of insurance.
And our residential block management expertise means we can manage service charges, maintenance, and any regulatory compliance for Resident Management and Right to Manage companies.
To get in touch, you can either call our main Whetstone office on 020 8446 0011; if you have a residential block management inquiry, then call 01707 665 666.
FAQs
Q: Is the new RICS Code of Practice actually a law?
A: While the Code itself isn’t a piece of legislation, it is a Statutory Instrument approved by the Secretary of State for Communities, Housing and Local Government (currently Steve Reed MP).
This means it has significant legal weight. If a management dispute reaches a tribunal, the judge will use this code as the ‘gold standard’ to determine if your manager has acted reasonably. For RICS-regulated firms like ourselves, following these professional standards is mandatory.
Q: Does the 2026 Code apply to all properties in the UK?
A: No. It applies specifically to residential leasehold properties in England. However, RICS strongly recommends that practitioners in Wales, Scotland, and Northern Ireland follow these guidelines as a benchmark for professional best practices.
Q: Is the updated code accessible online?
A: Yes, it can be found via this link.