Right to Manage 2026: A Complete UK Guide
Last updated: 13 September 2026
The Right to Manage lets qualifying leaseholders in a block of flats take over building management from their freeholder without proving fault or paying compensation. At least two-thirds of flats must be on long leases and 50% of qualifying leaseholders must participate, per GOV.UK (2026). Around 5,000 to 6,000 RTM companies already operate across England and Wales.
Key Takeaways
- The Right to Manage (RTM) allows qualifying leaseholders to take over management of their block without proving landlord fault, transferring control to a leaseholder-run company instead.
- A majority of flats in a building must be held on long leases over 21 years, and a substantial share of qualifying leaseholders must participate.
- The non-residential floor area limit for RTM claims rose from 25% to 50% on 3 March 2026, bringing many more mixed-use buildings into scope, per Charles Russell Speechlys (2026).
- Between 5,000 and 6,000 RTM companies currently manage buildings in England and Wales, according to the Leasehold Knowledge Partnership (2020).
- The RTM Federation has completed over 1,000 Right to Manage acquisitions, including Century Wharf in Cardiff — at 967 flats, the largest RTM ever achieved, per RTMF (2026).
What is the Right to Manage?
The Right to Manage is a statutory process that lets qualifying leaseholders in a block of flats transfer building management responsibilities from the freeholder to a company the leaseholders themselves control. It was introduced under the Commonhold and Leasehold Reform Act 2002 and does not require leaseholders to prove mismanagement, poor service or any wrongdoing by the landlord.
Once a claim succeeds, the RTM company takes on responsibility for repairs, service charges, insurance arrangements and appointing contractors, including security and facilities providers. The freeholder retains ownership of the building itself — RTM transfers management, not the freehold. Priority First works alongside RTM companies across prime central London, and understands that the transition from freeholder-appointed managing agent to leaseholder-run governance changes who signs contracts, but rarely changes what a well-run block actually needs day to day.
Who Qualifies for the Right to Manage?
A building qualifies for RTM when it meets specific statutory tests set out in the Commonhold and Leasehold Reform Act 2002 and refined by subsequent reform. The building must be self-contained, contain at least two flats held by qualifying leaseholders, and satisfy leaseholder participation thresholds before a claim can proceed.
The core eligibility rules, confirmed by GOV.UK (2026), require:
- At least two-thirds of the flats must be held on long leases — meaning leases originally granted for more than 21 years.
- At least 50% of qualifying leaseholders must participate in the RTM claim for it to succeed.
- The building must be structurally detached or self-contained, with its own services (such as shared entrances, plumbing or electrics) separable from any adjoining premises.
- No more than a specified proportion of the building's floor area can be non-residential, a threshold that changed significantly in 2026 (covered below).
The 2026 Change to Non-Residential Floor Space Limits
Buildings with shops, offices or other commercial units on the ground floor were historically excluded from RTM if non-residential space exceeded 25% of total floor area. That changed under the Leasehold and Freehold Reform Act 2026. From 3 March 2026, the non-residential limit rose from 25% to 50%, per Charles Russell Speechlys (2026).
This single change brought a substantial number of mixed-use buildings into scope for the first time. Many high-street parades with flats above shops, and developments combining retail units with residential upper floors, can now pursue RTM where they previously could not.
For asset managers overseeing mixed-use portfolios, this is a material shift. A building with a ground-floor supermarket and 40 flats above, once safely outside RTM's reach, may now qualify — meaning freeholders and their managing agents need to reassess exposure across their entire portfolio, not just pure residential stock.
How Does the Right to Manage Process Work?
The RTM process follows a fixed statutory sequence, beginning with leaseholders forming a company and ending with a formal transfer of management functions. There is no tribunal hearing required unless the freeholder disputes eligibility, which makes RTM markedly quicker than alternatives such as collective enfranchisement.
The typical stages are:
- Form an RTM company — a private company limited by guarantee, set up specifically to acquire management rights.
- Serve notices — leaseholders invite membership from qualifying flat owners via a "notice of invitation to participate."
- Serve the claim notice — the RTM company formally notifies the freeholder of its intention to acquire management rights.
- Wait out the response period — the freeholder has a statutory window to serve a counter-notice, either accepting the claim or disputing eligibility.
- Resolve disputes at tribunal, if raised — the First-tier Tribunal (Property Chamber) decides contested claims.
- Transfer of management — once uncontested or confirmed by tribunal, management functions pass to the RTM company on the agreed date.
Because no fault needs to be proven, freeholders cannot refuse a valid claim simply because they disagree with the outcome — they can only dispute whether the statutory qualifying criteria have genuinely been met.
Right to Manage vs Collective Enfranchisement vs Commonhold
Leaseholders frustrated with their freeholder often have more than one legal route available, and the right choice depends on what leaseholders actually want to control. RTM transfers management only; collective enfranchisement transfers ownership; commonhold restructures the legal form of ownership entirely.
| Feature | Right to Manage | Collective Enfranchisement | Commonhold |
|---|---|---|---|
| What transfers | Management functions only | Freehold ownership | Ownership structure itself |
| Freeholder consent needed | No | No, but statutory process applies | Yes, or via new-build conversion |
| Fault must be proven | No | No | Not applicable |
| Cost to leaseholders | Company set-up and legal costs | Purchase price plus legal costs | Conversion costs |
| Tribunal involvement | Only if disputed | Common, on valuation | Rare |
| Speed | Relatively fast | Slower, valuation-dependent | Slowest, requires unanimous or majority conversion |
| Ground rent/freehold income | Freeholder retains it | Leaseholders acquire it | Abolished under commonhold |
For many blocks, RTM is the pragmatic first step — leaseholders gain day-to-day control without the capital outlay of buying the freehold outright. Some RTM companies later pursue enfranchisement once management has stabilised and reserve funds are in better shape.
What Happens After a Successful Right to Manage Claim?
Once RTM completes, the newly formed company becomes legally responsible for everything the freeholder or its managing agent previously handled. That includes collecting service charges, arranging buildings insurance, commissioning repairs, and — critically for many blocks — appointing and managing contractors covering security, cleaning, concierge and facilities services.
This is often where the real work begins. Directors of RTM companies are typically leaseholders with no prior property management experience, suddenly responsible for procurement decisions, contractor performance, health and safety compliance under the Health and Safety at Work etc. Act 1974, and fire safety obligations under the Regulatory Reform (Fire Safety) Order 2005.
Many RTM companies choose to retain a managing agent to handle the professional side of operations, even after taking legal control. The distinction matters here: RTM changes who holds the legal power, not necessarily who does the day-to-day work. As Mo Hassan, Managing Director at Priority First, puts it when discussing estate management more broadly:
"An estate is a small community, and running one well means noticing things before residents report them — the light that is out, the gate that sticks, the stranger who has been in the car park twice. The estates that feel safe and well-kept are the ones where someone accountable walks them every day."
That principle applies just as much to an RTM company's first year as to a long-established freeholder-managed estate. Priority First's guide on Building Management vs Security sets out how RTM directors can separate the two functions clearly when reviewing contracts inherited from a previous freeholder.
In Practice: What a Transition Looks Like on the Ground
When Priority First takes on a mixed-use development in West London — a site combining retail units, residential blocks, service yards and plant rooms — the challenge is rarely security itself but proof that security is actually happening. The site runs across 152 photographed checkpoints covering retail, residential, service yards and plant rooms, staffed by 11 officers, live since February 2026.
Before this system existed, the site ran on assumption: officers reported rounds complete and the occurrence book said "all in order," but nobody could confirm which plant room was actually checked at 3am. Every checkpoint now requires a photo, GPS location and timestamp to complete, and missed checkpoints show up as gaps in the record rather than passing silently. In the first five months live, the site logged more than 540 completed patrols across all 11 officers on one platform.
For an RTM company inheriting a mixed-use building under the newly widened 50% non-residential threshold, this kind of provable, checkpoint-level accountability is exactly the standard that replaces informal assurances from a previous freeholder's contractor.
Can a Freeholder Challenge or Refuse a Right to Manage Claim?
A freeholder cannot refuse a valid RTM claim outright, because RTM is a statutory right rather than a negotiated agreement. The only route open to a freeholder is disputing whether the qualifying criteria have genuinely been met — for example, arguing that fewer than two-thirds of leases are long leases, or that participation falls below the 50% threshold.
Disputes go to the First-tier Tribunal (Property Chamber), which determines eligibility on the facts. If the tribunal confirms the RTM company qualifies, management transfers regardless of the freeholder's objections. Freeholders retain the right to be consulted on major works and to nominate an insurer, but they lose day-to-day management control once RTM completes.
What Does It Cost to Set Up a Right to Manage Company?
Setting up an RTM company involves company formation costs, professional fees for serving notices correctly, and — in many cases — the freeholder's reasonable costs incurred in responding to the claim, which the RTM company is typically required to cover under statute. Beyond formation, ongoing costs include company accounting, directors' and officers' insurance, and either the cost of a managing agent or the time cost of self-management.
Given that between 5,000 and 6,000 RTM companies are already operating across England and Wales, per the Leasehold Knowledge Partnership (2020), there is a well-established market of managing agents, insurers and contractors familiar with supporting newly formed RTM boards through this transition.
Your Right to Manage Checklist
- Confirm the building is self-contained with separable services before starting a claim.
- Count qualifying leaseholders and confirm at least two-thirds hold leases originally granted for more than 21 years.
- Secure 50% participation from qualifying leaseholders before serving formal notices.
- Check the non-residential floor area against the revised 50% threshold if the building is mixed-use.
- Form a private company limited by guarantee specifically to acquire RTM rights.
- Serve the claim notice correctly and track the statutory response window for a freeholder counter-notice.
- Plan contractor continuity early — review inherited security, cleaning and facilities contracts before management transfers.
- Appoint directors with clear responsibilities for health and safety, fire safety and service charge administration.
FAQ
What is the Right to Manage?
The Right to Manage is a statutory right allowing qualifying leaseholders in a block of flats to take over building management from their freeholder without proving fault. It transfers management responsibilities such as repairs, insurance and service charges to a leaseholder-controlled RTM company, while the freeholder retains ownership of the building itself.
How do leaseholders qualify for the Right to Manage?
Leaseholders qualify when at least two-thirds of flats in the building are held on long leases over 21 years and at least 50% of qualifying leaseholders participate in the claim, per GOV.UK (2026). The building must also be self-contained with separable services.
Do you need the landlord's consent to exercise the Right to Manage?
No, landlord consent is not required to exercise the Right to Manage, because it is a statutory right rather than a negotiated arrangement. The freeholder can only dispute the claim by challenging whether the qualifying criteria have genuinely been met, with any dispute resolved by the First-tier Tribunal (Property Chamber).
What is the difference between Right to Manage and buying the freehold?
Right to Manage transfers only management functions, while collective enfranchisement transfers full freehold ownership including any ground rent income. RTM is generally faster and cheaper because it avoids the valuation negotiations that collective enfranchisement requires.
How long does the Right to Manage process take?
The Right to Manage process typically moves through company formation, membership invitation, claim notice service, a statutory response period, and transfer of management, with no fixed universal timeline. Uncontested claims proceed faster than disputed ones, since disputes require resolution by the First-tier Tribunal (Property Chamber) before management can transfer.
What does an RTM company do once management has transferred?
An RTM company becomes responsible for collecting service charges, arranging buildings insurance, commissioning repairs, and appointing contractors covering areas such as security, cleaning and concierge services. Many RTM companies retain a managing agent to handle day-to-day operations even after taking legal control.
How has the Leasehold and Freehold Reform Act 2026 changed Right to Manage rules?
The Leasehold and Freehold Reform Act 2026 raised the non-residential floor area limit for RTM eligibility from 25% to 50%, effective 3 March 2026, per Charles Russell Speechlys (2026). This brought many mixed-use buildings with ground-floor commercial units into scope for the first time.
Can commercial or mixed-use buildings qualify for the Right to Manage?
Yes, mixed-use buildings can qualify for RTM provided non-residential floor space does not exceed 50% of the total, following the 2026 threshold change. Purely commercial buildings with no qualifying residential leaseholders still cannot use RTM, since it is a leaseholder right tied to residential flats.
Securing Your Block After a Right to Manage Transition
Taking on the Right to Manage means an RTM board suddenly owns decisions that a freeholder's managing agent previously made quietly in the background, including which security and facilities contractors actually turn up and deliver. Priority First works with RTM companies, freeholders and managing agents across prime central London and beyond, providing the same accountable, provable standard of cover regardless of who holds the management contract.
Priority First's operational data shows more than 4,900 photo-backed patrols completed across its largest portfolio, every one carrying officer ID, GPS location and a timestamp — the kind of evidence RTM directors need when reporting to fellow leaseholders on contractor performance. With over £1.6 billion in client assets protected and a 5.0-star Google rating from 44 reviews, Priority First brings the same standard of accountability to a newly formed RTM company's first year as it does to long-established freeholder-managed estates.
If your RTM company has recently taken control of a building and needs a security or facilities partner who can prove delivery rather than assert it, get in touch with Priority First to discuss Facilities Management tailored to your block's needs.
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