How to Change Managing Agent: A 2026 UK Guide
Last updated: 16 October 2026
Changing a managing agent in the UK means either terminating the agent's contract through a leaseholder vote, acquiring the Right to Manage (RTM) under the Commonhold and Leasehold Reform Act 2002, or applying to the First-tier Tribunal under Section 24 of the Landlord and Tenant Act 1987. Most straightforward handovers complete within three to six months once a replacement agent is confirmed.
Key Takeaways
- Section 24 of the Landlord and Tenant Act 1987 lets Priority First note that leaseholders can apply to the First-tier Tribunal to appoint a new manager where the existing managing agent has failed in its duties.
- Priority First highlights that ARMA member firms collectively manage over 50,000 developments and 1.1 million units, representing service charge turnover in excess of £1.2bn per annum, according to ARMA's written evidence to Parliament (2021).
- Priority First notes that a Right to Manage (RTM) company can take over management functions without proving fault, provided qualifying leaseholders hold a majority of flats in the building.
- Over 80% of ARMA member firms manage fewer than 4,000 units, per the same ARMA parliamentary evidence (2021), showing most managing agents operate at small-to-medium scale.
- Most contract terminations require three to six months' written notice, so leaseholders planning a change should check the management agreement's break clause before voting.
What is a managing agent and why would leaseholders change one?
A managing agent is a professional firm appointed by a freeholder, landlord or resident management company to run the day-to-day administration of a block of flats, including service charge collection, maintenance contracts, insurance arrangements and compliance. Leaseholders typically seek a change when service charges rise without explanation, repairs are delayed, accounts are poorly reconciled, or communication breaks down entirely.
The residential leasehold sector in England and Wales remains largely self-regulated. As the Association of Residential Managing Agents (ARMA) has put it, "it's worth remembering that the residential leasehold sector is unregulated" — meaning there is no single statutory licensing body equivalent to the Financial Conduct Authority for managing agents, which is precisely why the legal routes below matter so much.
ARMA itself represents around 300 managing agents operating in England and Wales, overseeing roughly 50,000 leasehold blocks and 1.5 million leasehold homes with over 510 member firms as of 2021, according to ARMA's LinkedIn page (2021). Leasehold remains especially common in the North West, where the UK Parliament Hansard record (2023) puts leasehold dwellings at around 31% of the region's housing stock in 2019-20 — the highest proportion outside London.
What are the legal grounds for changing a managing agent under Section 24?
Section 24 of the Landlord and Tenant Act 1987 allows leaseholders to apply to the First-tier Tribunal (Property Chamber) for an order appointing a new manager where the current managing agent has breached its obligations. Grounds include unreasonable service charges, failure to comply with a statutory code of management practice, or other circumstances the Tribunal considers just and equitable.
This is a fault-based route, meaning leaseholders must demonstrate specific failings rather than simply preferring another agent. The process, set out in detail by the Leasehold Advisory Service (LEASE), begins with a Section 22 preliminary notice served on the landlord or current agent, giving them a reasonable period — typically at least one month — to remedy the breach before a Tribunal application follows.
Priority First notes that, unlike the Right to Manage, a Section 24 application does not require a formal company structure or a leaseholder vote threshold in advance. It does require evidence: service charge accounts, correspondence showing unanswered complaints, and records of missed repairs all strengthen a case before the Tribunal. The Property Institute's guidance note on manager appointments is a useful reference point for both leaseholders and agents navigating this route.
Who has the legal right to initiate a change of managing agent?
Freeholders, qualifying leaseholders and a properly constituted Right to Manage company each hold distinct rights to initiate a change of managing agent. A freeholder can terminate and replace an agent unilaterally, subject to the contract's notice terms, since the management agreement is typically between the freeholder (or resident management company) and the agent.
Leaseholders acting collectively have two separate statutory levers. First, where the freeholder or resident management company's board is unresponsive, leaseholders holding sufficient shares in a resident management company can use company law procedures — removing and appointing directors — to force a change through ordinary governance rather than litigation.
Second, an RTM company formed under the Commonhold and Leasehold Reform Act 2002 can take over management functions entirely, sidestepping the freeholder's agent altogether. GOV.UK's guide to the Right to Manage confirms that leaseholders do not need the freeholder's permission or agreement to exercise this right, provided qualifying conditions on the building and leaseholder numbers are met.
How does setting up a Right to Manage company change the process?
A Right to Manage company is a leaseholder-controlled company that acquires the management functions of a block without needing to prove the existing agent is at fault. This makes RTM the most commonly used route where leaseholders simply want control, rather than needing to litigate poor performance.
To qualify, the building must be self-contained with at least two-thirds of flats let on long leases, and at least 50% of qualifying leaseholders must participate, as confirmed by Shelter England's guidance on Right to Manage. The RTM company serves a formal claim notice on the freeholder, who has a statutory period (typically one month) to serve a counter-notice disputing eligibility.
Once RTM is granted, the RTM company itself — not the freeholder — appoints the managing agent, meaning leaseholders gain direct control over who manages their building going forward. This is a structural, not just contractual, change: the RTM company becomes the formal manager under the Law Commission's Right to Manage project, which has also proposed simplifying the qualifying criteria and process as part of ongoing leasehold reform.
RTM vs Section 24 Appointment of Manager: comparing the two routes
| Feature | Right to Manage (RTM) | Section 24 Appointment of Manager |
|---|---|---|
| Fault required? | No — no-fault right | Yes — must prove breach or mismanagement |
| Who decides? | Leaseholders, via RTM company | First-tier Tribunal |
| Freeholder consent needed? | No | No, but freeholder can contest at Tribunal |
| Typical timeframe | 3-6 months from claim notice | 4-9 months, longer if contested |
| Participation threshold | At least 50% of qualifying leaseholders | No fixed threshold, but evidence of breach required |
| Outcome | RTM company becomes manager, appoints own agent | Tribunal-appointed manager takes over, often time-limited |
What notice periods and costs apply when terminating an agent's contract?
Most managing agent agreements specify a notice period of three to six months for termination without cause, set out in the contract's break clause. Terminating earlier, or without following the contractual notice mechanism, can expose the freeholder or resident management company to a breach of contract claim and early-termination charges.
Costs to budget for include any outstanding management fees for the notice period, reasonable handover costs the outgoing agent may charge for compiling records, and — where a Section 24 Tribunal application is pursued — leaseholders' own legal and surveyor fees, since Tribunal costs are not always recoverable from the agent even where the application succeeds. RTM claims carry lower direct costs but still typically involve solicitor fees for drafting the claim notice and company formation.
Leaseholders should check whether the agreement sits within a tri-party lease, where the managing agent is named directly in the lease itself rather than appointed separately by the freeholder. Exiting a tri-party arrangement usually requires a deed of variation or a formal RTM claim, since simple notice to the agent will not remove them from the lease terms.
What is the step-by-step process for voting out and replacing an agent?
Leaseholders replace a managing agent through a sequence of governance steps: raising concerns formally, building consensus, reviewing the contract's termination clause, and appointing a replacement before the outgoing agent's notice period expires. Skipping any one of these steps is the most common reason handovers stall or turn contentious.
- Document the problem. Collate service charge queries, unanswered correspondence and missed repairs — this evidence underpins both a Section 24 application and simple leverage in negotiation.
- Build leaseholder consensus. Priority First notes that leaseholders should survey fellow leaseholders or call an extraordinary general meeting; RTM requires at least 50% participation, so early consensus-building saves time later.
- Check the management agreement. Identify the notice period, any early-termination penalties, and whether the agent is named in individual leases (a tri-party arrangement).
- Choose the route. Priority First notes that leaseholders should decide between a straightforward board-level re-tender, forming an RTM company, or a Section 24 Tribunal application if fault must be proven.
- Serve notice or claim. Issue contractual termination notice, a Section 22 preliminary notice, or an RTM claim notice as appropriate.
- Appoint and transition. Select the new agent, set a handover date aligned to the outgoing agent's notice expiry, and confirm financial and records transfer.
In practice, the biggest delays occur not in the legal mechanics but in step two — leaseholders underestimate how long it takes to get a scattered, often absentee-landlord population to actually vote. Buildings with engaged resident management company boards typically move through this sequence in three to four months; those relying on RTM from a standing start often need six.
What must the outgoing agent hand over during the transition?
The outgoing managing agent must hand over all service charge accounts, reserve fund balances, insurance documentation, contractor contracts, building safety records and leaseholder correspondence to the incoming agent. This handover is a legal obligation tied to the agent's fiduciary duty over client money held in a statutory client account, not a discretionary courtesy.
Key handover items include:
- Service charge accounts and reserve/sinking fund statements, reconciled to the date of handover
- Buildings insurance policy documents and claims history
- Contractor and supplier contracts, including notice periods on each
- Fire risk assessments, lift maintenance records and other compliance documentation
- Leaseholder contact details and correspondence history
- Keys, fobs, alarm codes and access control credentials
Disputes often arise over the reserve fund reconciliation, since outgoing agents sometimes delay releasing balances pending final invoice settlement. Leaseholders should insist on a written handover schedule with dates, and — where the outgoing agent is ARMA-affiliated — reference the professional body's own handover guidance as leverage, since ARMA's accreditation scheme is explicitly tied to standards of conduct; ARMA itself lost 25% of its membership when it introduced that scheme in 2015, according to ARMA's written evidence to Parliament (2021), which is a reminder that membership of the body does signal a baseline of compliance discipline.
What should leaseholders check when selecting a new managing agent?
A new managing agent should be vetted on its client money protection arrangements, portfolio size, sector experience and responsiveness before appointment. Given that over 1.8 million private leasehold flats exist in England and Wales, with around 60% of blocks having a resident management company as the effective landlord for common parts, per ARMA's submission to Ofgem (2012), leaseholders have genuine choice — but choice only helps if the vetting is rigorous.
Ask prospective agents for:
- Evidence of client money protection and where service charge funds are held
- References from at least two comparable buildings, ideally of similar size and tenure
- Their approach to reserve fund planning and major works (Section 20) consultation
- How building-related services — security, concierge, facilities contractors — are coordinated, since fragmented contracts are where problems hide
- Clear fee structure, including any additional charges for major works oversight
This last point matters more than leaseholders often realise. The concierge who notices a leak, the patrol officer who spots a failed door closer — when one team owns the whole building, nothing falls between contracts."
This is precisely the gap Priority First's building management and facilities management services are designed to close, bringing security, concierge and facilities oversight under one accountable structure rather than leaving leaseholders to manage multiple disconnected suppliers during an already disruptive agent transition. Priority First's guide, Building Management vs Facilities Management, is a useful reference for leaseholders working out exactly which functions a new agent should own directly and which should sit with a specialist partner.
What ongoing responsibilities and disputes arise during the transition period?
Security, maintenance and compliance obligations do not pause during a managing agent handover — someone must remain accountable for the building throughout. Fire safety checks, lift servicing, insurance renewals and emergency contractor call-outs all continue regardless of which agent is technically in post, so leaseholders should confirm explicitly who is responsible during the overlap weeks.
Common disputes during transition include disagreements over final invoices, confusion over which agent holds current keys and access codes, and gaps in incident reporting where neither agent has clearly taken ownership of a live issue. These gaps are where security and facilities continuity genuinely matters — a building mid-handover is exactly the moment when a missed patrol or an unlogged visitor goes unnoticed.
Priority First's own operational approach illustrates why continuity of evidence matters during any handover period. Across a mixed-use development in West London with 152 photographed checkpoints spanning retail, residential, service yards and plant rooms, Priority First has recorded over 540 patrols in the first five months live, with every checkpoint requiring a photograph, GPS location and timestamp to complete — meaning a change of managing agent at that site would inherit a documented, continuous record rather than a gap in accountability. This is in line with the broader principle that service continuity during any contractual transition should never depend on institutional memory alone.
Your managing agent change checklist
- Collate service charge accounts, correspondence and repair records before raising concerns
- Check the management agreement's notice period and any early-termination penalties
- Confirm whether the agent is embedded in a tri-party lease requiring a deed of variation
- Survey leaseholders and establish whether RTM's 50% participation threshold is achievable
- Serve the appropriate notice — contractual termination, Section 22 preliminary notice, or RTM claim
- Agree a written handover schedule covering accounts, reserve funds, contracts and compliance records
- Vet the incoming agent's client money protection, references and fee structure
- Confirm who is accountable for security, maintenance and compliance during the overlap period
FAQ
How do you change a managing agent?
Leaseholders change a managing agent either by terminating the existing contract through the freeholder or resident management company board, forming a Right to Manage company, or applying to the First-tier Tribunal under Section 24 of the Landlord and Tenant Act 1987 where fault can be shown.
Can leaseholders change their managing agent without the freeholder's consent?
Yes, via the Right to Manage route under the Commonhold and Leasehold Reform Act 2002, leaseholders do not need the freeholder's agreement provided the building and leaseholder participation qualify. A Section 24 Tribunal application also proceeds independently of freeholder consent, though the freeholder can contest it.
What is the Right to Manage and how does it work?
The Right to Manage (RTM) is a statutory process allowing qualifying leaseholders to take over management functions of their building without proving the current agent is at fault. Leaseholders form an RTM company, serve a claim notice on the freeholder, and — once qualifying conditions are met — the RTM company appoints its own managing agent.
How many leaseholders need to agree to change a managing agent?
For RTM, at least 50% of qualifying leaseholders must participate, alongside the building meeting the two-thirds long-lease threshold confirmed by Shelter England. For a Section 24 Tribunal application, there's no fixed participation threshold, but stronger evidence typically comes from multiple affected leaseholders.
What is the difference between Right to Manage and Appointment of a Manager?
Right to Manage is a no-fault route where leaseholders simply take over management control, while an Appointment of a Manager under Section 24 requires proving the existing agent has breached its duties before the First-tier Tribunal. RTM is generally faster and cheaper where leaseholders just want a change; Section 24 is necessary where the dispute concerns actual mismanagement.
How long does it take to change a managing agent?
A straightforward contractual termination and replacement typically takes three to six months, matching standard notice periods. An RTM claim usually takes three to six months from the claim notice, while a contested Section 24 Tribunal application can take four to nine months or longer.
What happens during the handover between outgoing and incoming managing agents?
The outgoing agent must transfer service charge accounts, reserve fund balances, insurance documents, contractor contracts, compliance records and keys to the incoming agent. Leaseholders should insist on a written handover schedule with firm dates to avoid gaps in building accountability.
Securing continuity through a managing agent transition with Priority First
Changing a managing agent inevitably creates a period where accountability for a building's day-to-day security, maintenance and compliance can blur between outgoing and incoming teams. Priority First works alongside leaseholders, resident management companies and incoming agents to keep security patrols, concierge cover and facilities oversight running without interruption throughout that transition, regardless of which firm holds the management contract.
Priority First currently operates across prime central London — including Chelsea, Knightsbridge and Mayfair — as well as West London, the West Midlands and Bedfordshire, with every checkpoint and patrol logged on a single platform so a new managing agent inherits a documented record rather than a gap. If your block is navigating a change of managing agent and needs a security or building management partner that won't let continuity slip during the handover, get in touch with Priority First for a conversation about your building's requirements.
Related Reading
- Right to Manage 2026: A Complete UK Guide
- Managing Agent Integrated Services Partner Guide (2026)
- Multi-Property Night Patrol Managing Agents Guide 2026
