StraPlex | England and Wales
Managing Your Own Block of Flats
Most flats in England and Wales are leasehold: you own a lease of your flat and a landlord owns the building. Flat owners can still run the building themselves, through a right to manage (RTM) company, through a company that owns the freehold (a share of freehold), or under commonhold. Each route uses a company the owners control, and each company has yearly duties at Companies House and under service charge law.
The short answer
- Right to manage lets the flat owners' RTM company take over management from the landlord without proving bad management.
- With a share of freehold, a company owned by some or all of the flat owners owns the building's freehold.
- Commonhold lets each owner hold the freehold of their own unit, with a commonhold association running the shared parts. Conversion now needs every leaseholder and lender to agree.
- Whoever demands service charges must follow the Landlord and Tenant Act 1985: reasonable costs, consultation over £250 per flat, and a summary of rights with every demand.
- The company must file a confirmation statement every year and annual accounts within 9 months of its year end.
Three ways to run your own block
| Route | Who owns the building | Company | Name ends |
|---|---|---|---|
| Right to manage | The landlord keeps the freehold; the RTM company takes over management | Private company limited by guarantee | RTM Company Limited |
| Share of freehold | A company owned by some or all of the flat owners | Flat management company with bespoke articles | Set by the owners |
| Commonhold | Each unit-holder owns the freehold of their unit | Commonhold association, limited by guarantee | Commonhold Association Limited |
A residents' management company or share of freehold
Companies House describes a flat management company as "set up to manage a property divided into a number of separate flats. Each flat owner usually has a lease of their own flat. But they can also be a member of a management company that owns the freehold (or lease) of the entire building." On selling, Companies House says: "If the members own shares in the company, they usually transfer their shares to the new owners when they sell their flat." Registering one costs £100 online and needs bespoke articles of association.
GOV.UK's How to Lease guide says that where your landlord is a company owned by the leaseholders and you are a member, "that is where you own a 'share of the freehold'". Flat owners can get there by collective enfranchisement: qualifying tenants of at least half the flats can have the freehold bought for them, where at least two-thirds of the flats are on long leases.
Small buildings
- Right to manage does not apply to a converted building with a resident landlord and no more than 4 units. It always applies to a purpose-built block that qualifies.
- In a 2-flat building, both qualifying tenants must be members of the RTM company to claim.
- An accountant's certificate on the service charge summary is needed only when more than four dwellings pay.
- The new annual statement of account duty (from 1 November 2027 in England) applies only where a tenant shares costs with three or more other homes.
- A 2026 government consultation proposed "micro-commonholds" of 4 units or fewer, possibly run by a single director. No decision had been published when we checked.
What the company files each year
- A confirmation statement at least once every 12 months, up to 14 days after the review period ends: £50 online or £110 on paper. Not filing can mean a fine of up to £5,000 and strike-off, and striking off an RTM company ends its right to manage.
- Since 18 November 2025 every director must verify their identity before the confirmation statement is accepted.
- Annual accounts within 9 months of the year end (first accounts within 21 months of registration). Late penalties start at £150. A small company with no significant transactions can file dormant accounts.
- Changes to directors or people with significant control reported within 14 days.
- GOV.UK says a company "is usually dormant for Corporation Tax if it ... is a flat management company", but it must still file accounts and the confirmation statement.
- Accounting records kept for 3 years and minutes for at least 10 years (Companies Act 2006).
Service charges, whoever runs the block
The Landlord and Tenant Act 1985 sections 18 to 30 apply to anyone with a right to enforce payment of a service charge, and an RTM company is treated as the landlord for them. That means reasonable costs only, consultation before works costing any flat more than £250, a summary of tenants' rights with every demand, money held on trust, and the right of each owner to challenge a charge at the First-tier Tribunal. The service charges guide covers each rule.
England and Wales only. Scotland and Northern Ireland have their own law: GOV.UK says RTM companies and commonhold associations do not exist there. Law text read on legislation.gov.uk and guidance on GOV.UK on 31 October 2026.
Common questions
How do I manage my own block of flats? +
Through a company the flat owners control: an RTM company under the right to manage, a company that owns the freehold (share of freehold), or a commonhold association. The company takes on the management duties, including service charges, insurance and repairs, and files with Companies House every year.
What is a residents' management company? +
A company owned by the flat owners that manages the building. For one building safety rule the Leasehold and Freehold Reform Act 2024 defines it as a company limited by guarantee whose members are tenants of homes in the building, or one whose shares are mostly held by those tenants.
What is share of freehold? +
Where the building's freehold is owned by a company owned by some or all of the flat owners, and you are a member of that company. GOV.UK's How to Lease guide uses that description.
What is block management? +
Running a block of flats: collecting service charges, arranging repairs and insurance, keeping accounts and dealing with owners. The landlord, an RTM company or a management company does it, either itself or through a managing agent.
Do we need a managing agent? +
No. GOV.UK says that with right to manage the owners can run the building themselves or pay a managing agent. The same choice applies to a share of freehold company.
Does a flat management company need to file accounts? +
Yes. Every company must file annual accounts and a confirmation statement. GOV.UK's words on Corporation Tax, "usually dormant" for a flat management company, are a separate question.
How much does the confirmation statement cost? +
£50 online or £110 on paper, paid with the first statement in each 12-month period.
Does a management company have to hold an AGM? +
The Companies Act 2006 does not require one for a private company that is not a traded company. The company's articles or the leases may require one, and a general meeting needs at least 14 days' notice.
Do these rules apply in Scotland? +
No. GOV.UK says RTM companies and commonhold associations do not exist in Scotland or Northern Ireland, and points Scottish readers to the Scottish government's guidance on property factors.
What changed for leaseholders in 2025 and 2026? +
From 3 March 2025 the right to manage rules changed: a higher non-residential limit and new cost rules. From 31 January 2025 the two-year wait before a freehold purchase or lease extension claim was removed. New service charge demand and accounts rules start in England from 1 April 2027 and 1 November 2027.
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