Landlords and facilities management professionals must work together to make sure the £250 rent cap doesn’t lead to a deterioration in standards.
Adam Atkins, a facilities management specialist, responded to government plans to cap ground rents from 2028.
Atkins said: “There is a clear link between the cap and the potential for reduced investment in areas such as FM (facilities management).
“This is of real concern not only from a compliance perspective, with multiple regulatory requirements to consider, but also due to the potential implications for the safety and comfort of everyone using these buildings.”
He added: “There is plenty of time to put plans in place to mitigate the negative financial impact, whether that is reducing budgets in other, less essential, areas, or sourcing an alternative FM provider if their current one is unwilling to work with them to find efficiencies.
“We have two years for the FM sector and landlords to work together to ensure effective solutions are implemented – as we simply must not allow this decision to downgrade FM standards across residential developments in the UK.”
Service charges – rather than ground rents – usually cover elements such as maintenance and compliance.
Average charges currently stand at £304 according to the English Housing Survey.