Right to Manage: how flat owners can take over running their building

If leaseholders are unhappy with how their block of flats is run, the law gives them a tool: the Right to Manage (RTM). It lets a group of flat owners take over the day-to-day management of the building — arranging maintenance, cleaning, repairs and insurance — either directly or through a professional managing agent. Here is how it works, based on GOV.UK guidance.

What is the Right to Manage?

It is a statutory right for flat owners to take over management of their building. Its key feature is that it is “no fault”: you do not have to prove the landlord has managed the building badly, and you do not need the landlord's consent. The landlord still owns the building, but everyday management passes to the leaseholders.

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Which buildings qualify?

The right does not apply to every property. Under GOV.UK rules the building must be made up of flats — houses do not qualify. At least two-thirds of the flats must be leasehold, with leases that were granted for more than 21 years. The building must be mainly residential: non-residential use (shops, offices) cannot exceed half of the total floor area. There is an exception: if the building was not purpose-built as flats (for example, a converted house), has no more than four flats, and you or an adult family member has lived in one of them as your only or main home for the past 12 months, the building may not qualify.

How many neighbours do you need?

First, the owners set up an RTM company. Any number of owners can form it, but before it can take over management, members must hold at least half of the flats in the building. The landlord also gets a vote — at least one, depending on how many units they own — but their total votes are capped at one-third of the votes held by all the leaseholders.

What is the process and the timescale?

The company first sends other owners a notice inviting participation. It then serves a claim notice on the landlord stating it intends to take over management. The notice gives two dates: the date the landlord must respond by, and the date the company intends to take over. The landlord's response deadline cannot be less than one month from the date of the notice.

What if the landlord objects?

The landlord can dispute the claim by serving a counter-notice, but only on three grounds: the building does not qualify; the company has not complied with the legal requirements; or its members do not hold at least half the flats. No other reason is allowed. If the landlord objects, the company must apply to the First-tier Tribunal (Property Chamber) within two months of the date of the counter-notice, and the tribunal decides whether the company can manage the building.

What does it cost and where to get help?

Leaseholders must pay their own costs throughout the transfer. GOV.UK does not set a fixed government fee for the procedure itself; the main expense is the paperwork and, in a dispute, the tribunal. Free advice is available from LEASE (the government-funded Leasehold Advisory Service). Before you start, check on the official GOV.UK pages that your building qualifies, and line up your neighbours: without owners of half the flats you cannot get the process going.