According to block management experts Urban Owners, which has opened a regional office in Sheffield, the costs associated with running a leasehold block of flats, or a development incorporating leasehold properties, could be reduced by an average of 30%, equating to an average saving of £400 per household per year (see Table A).

Leaseholders often pay thousands of pounds each year in service charges for maintenance and repairs to their block, yet do not necessarily see value for that money. Slow responses from managing agents, shoddy or expensive repairs and a lack of transparency and accountability are frequent complaints.

Government statistics show that 7.2% of households in Yorkshire are under leasehold ownership, compared to only 4.3% in the Midlands¹. There are approximately 106,000 leasehold properties in Yorkshire, meaning that leasehold property owners in the region could be paying out an unnecessary £42 million a year.

Under the Commonhold and Leasehold Reform Act (2002), leaseholders of flats have the right to acquire the 'Right to Manage' of their property from the freeholder, This is a process that involves taking over the responsibility of the management of the block and is an opportunity leaseholders of flats in the Yorkshire are increasingly taking up.

In response to demand in Yorkshire, Urban Owners has opened a new office in Sheffield, which will join its head office in London to offer its Block Administration Services, a unique system of managing leasehold properties, both flats and houses, that puts the leaseholder firmly in control.

The leaseholder, rather than a managing agent, direct how money is spent and how services are delivered on their behalf. By using Block Administration Services, leaseholders can avoid expensive management fees and ensure transparency over the use of their funds, rather than falling victim to unscrupulous practices that are commonplace in the managing agent industry. Not only does this save money, time and stress, but it can also make the property more saleable.

Steve Wylie, Director at Urban Owners, comments:

"People often spend considerable amounts of time making sure they get the best deal on their own property's contents insurance, but it is surprising how many leasehold property owners don't stop to consider how they can considerably reduce service charges, which are usually a much bigger expense.

The simple fact is that many managing agents, sometimes in collusion with freeholders, are taking leasehold property owners for a ride by charging excessive fees, taking commissions and not being accountable for how funds are spent. There are over 100,000 leaseholders in the Yorkshire and they shouldn't stand for this poor service. By opening an office in the North, Urban Owners hopes to raise awareness of these bad practices and highlight the benefits of change to leaseholders."

Table A: Average savings per leasehold property per annum

* Legal services, bank & accountancy charges, utilities, security and lifts

¹ SOURCE: Communities and Local Government (www.communities.gov.uk/housing)