Now that we’re fully back into the swing of things with the Christmas backlog cleared, inboxes back under control, and the final chocolates and Twiglets well and truly polished off, it feels like the right moment to pause and properly set the tone for the year ahead.
And 2026 feels different.
As Director of Levels Property Management, this year is about setting even higher standards across block and estate management, at a time when our industry is under more scrutiny and more responsibility than ever before.
The regulatory and legislative landscape continues to shift and managing agents who don’t evolve will be left behind.
What 2026 is bringing to our sector and why it matters:
The direction of travel for block and estate management is now very clear, and it affects managing agents, directors, and leaseholders alike.
Building Safety Act – from preparation to enforcement
Across the sector, many managing agents spent 2023–2025 preparing for the Building Safety Act. In 2026, the focus shifts decisively to evidence, delivery, and enforcement. The Building Safety Regulator has made it clear that higher-risk buildings must demonstrate ongoing compliance, not just historic assessments.
For everyone involved, this means:
- More documented decision-making
- Increased professional oversight
- Higher expectations on managing agents to evidence competence
- Increased costs where buildings have not been proactively managed
Where safety systems, records, or accountability structures are weak, the financial and operational impact will be felt quickly.
Leasehold reform and service charge scrutiny
Leaseholder awareness is at an all-time high. With continued reform following the Leasehold and Freehold Reform Act, service charges are under greater scrutiny than ever before. Industry bodies consistently report that disputes most often arise not from cost alone, but from a lack of explanation, poor lease interpretation, or unclear apportionment.
In practical terms, this means:
- Budgets must be defensible, not just historic
- Lease interpretation must be accurate and consistent
- Managing agents must expect more questions – and be prepared to answer them clearly
The days of opaque budgets and unexplained balancing charges are numbered.
Insurance transparency and commission pressure
Insurance remains one of the largest single service charge costs for many developments. Ongoing attention around commissions and conflicts of interest continues to reshape expectations. Leaseholders, directors, and regulators are increasingly asking:
- Who is being paid?
- Why are premiums increasing?
- What value is actually being delivered?
For managing agents, 2026 requires transparency, independence, and a clear audit trail. For leaseholders, it means better visibility but also an understanding that market conditions still affect pricing.
Rising operational and compliance costs
Inflationary pressures, contractor shortages, and increased compliance requirements continue to push costs upward across the sector. However, industry data consistently shows that reactive management costs more than planned, well-communicated expenditure.
The impact for everyone:
- Poor planning leads to sharper cost spikes
- Strong reserve fund planning smooths financial pressure
- Clear communication reduces disputes, delays, and distrust
Digital access becoming the baseline expectation
The industry is also seeing a clear shift in expectations around access to information. Leaseholders increasingly expect:
- 24/7 visibility of financial and compliance documents
- Faster responses supported by accurate data
- Fewer manual processes and duplicated requests
Transparency is no longer defined by how much information is available, but by how accessible and understandable it is.
How we’re responding at Levels:
At Levels, we’ve been building our systems and processes with this direction of travel firmly in mind.
Through the MyLevels Portal and App, leaseholders and directors have 24/7 access to key financial information, compliance documents, budgets, and building updates. This isn’t about technology for the sake of it. It’s about giving people clarity, visibility, and confidence in how their building is being managed.
Alongside this, LeaseClear has been developed to remove ambiguity around lease interpretation, charging structures, and obligations. Too often in this industry, assumptions are made where certainty should exist. LeaseClear is about bringing structure, accuracy, and consistency to an area that directly impacts fairness and trust.
Technology alone isn’t the answer, but when it’s combined with strong governance, clear processes, and accountability, it raises standards across the board.
Our non-negotiables remain the same:
Transparency
Service charge budgets should be understandable, traceable, and clearly explained. If leaseholders can’t see where their money is going, we haven’t done our job properly.
Compliance
From health & safety and fire regulations to financial governance and lease obligations, compliance is about protecting people, buildings, and directors alike. It isn’t optional and it can’t be treated as an afterthought.
Clear communication
Good management isn’t silent. We believe in proactive updates, plain-English explanations, and accountability. Especially when decisions are complex or challenging.
Every decision we make, from contractor selection to budgeting methodology, comes back to one core question:
Does this protect the building, the people who live there, and the long-term value of the asset?
2026 is the year the industry continues to be challenged and rightly so! Great managing agents should be visible, informed, financially literate, and genuinely invested in outcomes, not just administration.
We’re proud of what we’ve built so far, but even more excited about what lies ahead.
Integrity • Information • Innovation
These aren’t just values. They’re the standards we believe managing agents will be judged by in the years to come.
Here’s to higher expectations, better management, and raising standards across the sector in 2026.
