Industry News

Title: Block Management Companies Challenged By Unprofitable Growth


Description:

The Fixflo Leasehold and Block Management Market Report has found that although most block management companies have achieved portfolio growth, they are struggling to translate that increase in revenue and workload into increased profits.

The Report which was supported by ARMA, MRI Software, News On The Block and Flat Living received responses from more than 170 block management companies which according to ARMA figures equates to more than 19% of the block management market.

Within the headline figure of 95% of respondents having experienced portfolio growth over the past 5 years, two distinct cohorts emerge with just under half of respondent businesses growing at more than 35% over that time period with a quarter having significantly slower growth at less than 10%.

Unsurprisingly, there is a strong correlation between the use of specialist technology to assist property managers and a company’s ability to scale its business with over three-quarters of those companies in the top tier of growth (35%+) having invested in specialist block management software. Interestingly, those companies that made further investment in add-on solutions for repairs and maintenance have the highest number of leasehold units managed per property manager. Block Management Companies surveyed, as a whole, are taking a proactive approach with repairs and maintenance technologies. When asked about how likely they would invest in software to help manage different block management processes, Repairs & Maintenance came up top. 

While 60% of respondents expressed that the upcoming regulation of managing agents poses a challenge to their professional career, over 75% of all individuals surveyed agreed that a higher barrier to entry will prevent rogue agents from (re)entering the market. 

The wide ranging “state of the sector” report also looks at the expansion of businesses into Build To Rent, disruption brought about by commonhold and biggest concerns identified by block management companies in the short term. It also provides block management companies with an opportunity to benchmark their business performance.

  • The Fixflo Leasehold and Block Management Market Report was presented at the ARMA Conference on 17 October 2019
  • A full copy of the report can be accessed here

Description: Wed, 23 Oct 2019 15:29:00 +0100

Title: Best practice advice for fire safety in flats


Description:

ARMA has issued a ‘Fire Safety Management in Flats’ Guidance Note to share best practice with professional Fire Safety personnel involved in the residential leasehold sector, including managing agents, developers and landlords.

The Guidance Note  (https://arma.org.uk/downloader/ty5/ARMA_Fire_Safety_Guidance_6.pdf) has been produced in line with statutory guidance and industry best practice and independently reviewed by Hampshire Fire and Rescue Service, ARMA’s Primary Authority Partner.

Dr Nigel Glen, CEO of ARMA, said: “ARMA members have access to over 100 Guidance Notes on a wide range of topics affecting leasehold properties.  This is the only one that has been made available to non-ARMA members, as we wish to promote Fire Safety industry-wide.

“Our commitment to Fire Safety includes running dedicated training, technical support and advice, and a 24/7 ARMA Crisis Line to support members in the event of an emergency”.


Description: Tue, 22 Oct 2019 15:59:00 +0100

Title: Sector Experts Team Up to Survey the Leasehold Industry as Reform Looms Large


Description:

Industry-leading repairs and maintenance management software provider, Fixflo, in conjunction with ARMA, has launched an annual leasehold and block management survey, amidst the controversial discussions about commonhold and the overall leasehold reform.

The Fixflo Leasehold and Block Management Market Report 2019 aims to understand the challenges and opportunities that lie ahead for property professionals in the sector. With a myriad of external challenges such as leasehold reform, the regulation of managing agents and Brexit looming large on the horizon, the industry is facing one of its toughest years since ARMA’s founding in 1991. In spring 2019, Fixflo, ARMA and MRI Software recognised the value an industry-wide survey could bring to more data-driven debate on the policy issues and a project led by Fixflo to remedy the lack of research was soon underway. Leading industry publications News On The Block and Flat Living will be driving the campaign as key media partners.

Rajeev Nayyar, Managing Director of Fixflo, said, “On top of the uncertainty of Brexit, leasehold reform is imminent. With the findings from this report, we can better respond to the needs of the industry and see on a granular level, what support or technological solutions can help property professionals through the testing period ahead and turn any challenges into opportunities. We will run the survey annually to keep abreast with what block management companies are concerned with.”

ARMA, the leading trade association for residential managing agents, wanted to understand the challenges and opportunities faced by leasehold block managing agents, and the way they apply technology. Dr Nigel Glen, Chief Executive Officer of ARMA is eager to learn where block management companies need help most, “Many of our members voice their concerns over external and internal challenges such as the leasehold reform, regulation of managing agents and Brexit, and the increasing difficulty in hiring talent. The survey will give us actionable data and guide the development of our training offerings and more.”

James Lavery, Marketing Director of MRI Software commented on the survey, “As a leading provider of software solutions for the leasehold sector, we're delighted to support this research, and look forward to gaining further insight into how residential property management organisations are responding to market pressures while maximising opportunities through tech.”

The Fixflo Leasehold and Block Management Market Report 2019 is now calling for leasehold and block management companies to have their say. Personnel of any seniority in the sector are welcome to respond to the survey, which is open for submissions until 31 August 2019.

Access the survey here: http://bit.ly/fixflosurvey

Five lucky respondents will be chosen at random and receive a £100 Amazon voucher.


Description: Thu, 01 Aug 2019 18:01:00 +0100