Should Block Managers Be Regulated Like Financial Advisors?

When you think about who handles your money, few roles face more scrutiny than financial advisors. They operate within strict regulatory frameworks, demonstrate qualifications, follow codes of conduct and remain accountable for how they manage clients’ funds. Now consider block management. Managing agents oversee service charges, reserve funds, major works budgets and long-term financial planning for entire buildings, often involving hundreds of thousands of pounds. Yet the UK does not hold block managers to the same level of formal, statutory regulation. So the question is a fair one: should it?

At its core, block management is not just about buildings, it’s about money, trust and decision-making.

A managing agent is responsible for:

• Collecting and administering service charges
• Managing reserve funds for future works
• Procuring contractors and overseeing large-scale spending
• Advising on maintenance strategies that directly impact costs

For leaseholders, these decisions affect not only day-to-day living conditions but also long-term financial commitments. In many ways, the role mirrors financial stewardship – just within the context of property rather than investments.

Regulation is ultimately about more than rules, it’s about trust. Financial advisors are required to act in their clients’ best interests, disclose conflicts, maintain transparency and provide recourse if things go wrong. These expectations build confidence in the system.

Block management involves similar ethical questions:

• Are funds being managed transparently?
• Are decisions made in the best interests of leaseholders?
• Is there clear accountability if something goes wrong?

Without consistent regulation, these standards depend heavily on the integrity and professionalism of individual managing agents.

There is growing discussion across the property sector about introducing tighter oversight.

Advocates argue that regulation could:

• Raise minimum competency standards
• Improve consistency across the industry
• Strengthen consumer protection
• Increase confidence among leaseholders

Given the scale of financial responsibility involved, the argument is difficult to ignore.

However, regulation alone is not a guarantee of good service. What matters just as much is how seriously managing agents take their professional responsibilities. This is where accredited firms stand apart.

Organisations such as Propertymark set clear standards for their members, including:

• Adherence to professional codes of conduct
• Ongoing training and continuing professional development
• Independent redress schemes
• Client money protection requirements

For managing agents who commit to these standards, accountability is not imposed – it is embedded into how they operate.

At Brompton Block Management, we recognise that trust is earned through transparency, consistency and professionalism – not simply through compliance. Our commitment to Propertymark accreditation reflects a belief that managing agents should hold themselves to high, externally recognised standards. This includes clear financial reporting, ethical decision-making and open communication with leaseholders.

In practice, this means:

• Service charge funds are handled with care and clarity
• Decisions are explained, not obscured
• Long-term planning is prioritised over short-term fixes
• Accountability is built into every stage of management

While the industry continues to evolve, we believe that professional responsibility should not wait for regulation to catch up.

There is a strong argument that they should be – at least in principle. The financial and practical responsibilities of block managers justify higher standards, clearer oversight and greater consistency across the sector. But perhaps the more immediate question is more, should managing agents behave as though they already are? For the best operators, the answer is yes. Because whether through formal regulation or professional integrity, the outcome should be the same – buildings that are well managed, funds that are handled responsibly and leaseholders who feel informed, protected and respected. And ultimately, that’s what good block management looks like.