Right to Manage boosts Horizon Management’s portfolio with 347 homes

Right to Manage boosts Horizon Management’s portfolio with 347 homes

Horizon Management has taken on management of 347 homes in Sheffield and Merseyside following leaseholders’ exercise of their statutory Right to Manage (RTM). The appointments reflect growing leaseholder activism and recent legislative reforms.

Horizon Management began managing 168 apartments at Millsands in Sheffield’s Riverside Exchange from 12 August 2026, after running the entire RTM process on behalf of leaseholders. The firm also took over management of 179 apartments in two converted mill buildings at East Float Quay, Birkenhead, starting 10 August 2026.

The acquisitions come amid rising service charges and changes under the Leasehold and Freehold Reform Act 2024, which have made RTM more accessible to leaseholders. Horizon Management’s founder highlighted the increasing desire of leaseholders to control decisions affecting their homes.

Details of the RTM acquisitions and management transition

At Millsands, Horizon Management acted for leaseholders across three buildings — Cracknell, Redgrave and Pinsent — comprising 168 apartments. The firm established the RTM company, secured the necessary leaseholder participation, prepared and served statutory notices, and progressed the claim. No counter-notice was served by the incumbent parties, so the claim was admitted. Horizon Management’s management commenced on 12 August 2026.

In Merseyside, leaseholders acquired RTM through two separate companies covering Mill 1 and Mill 2 at East Float Quay on Dock Road, Birkenhead. These two converted mill buildings contain 179 apartments. Horizon Management supported residents through the RTM process and prepared the management transition, including agreements, insurance, contractor arrangements, resident communications, and liaison with the outgoing managing agent. Management began on 10 August 2026.

Horizon Management also managed practical preparations such as handover from the previous agent, building insurance, contractor arrangements, resident engagement, site staffing, and TUPE arrangements for existing on-site employees. The firm intends to appoint locally based contractors at both sites.

Context of rising service charges and RTM reforms

The appointments come as financial pressures on leaseholders intensify. Hamptons’ 2025 Service Charge Index reports the average service charge in England and Wales at £2,405 for 2025, or £200.42 monthly — the first time the monthly average has exceeded £200. Service charges have risen 55.6% over the decade to 2025, outpacing Consumer Price Index inflation of 39.8%.

Reforms introduced by the Leasehold and Freehold Reform Act 2024, effective from March 2025, have made the Right to Manage more accessible. The limit on non-residential floorspace within a building was raised from 25% to 50%, broadening the scope to more mixed-use developments. Additionally, leaseholders are no longer routinely liable for the freeholder’s costs of an RTM claim, removing a significant financial barrier.

These changes have contributed to increased leaseholder willingness to exercise RTM rights, seeking greater control over their homes and service charges.

Implications for landlords and managing agents

Leaseholders’ growing use of RTM rights signals a shift in control over management decisions in multi-occupancy buildings. For landlords, this means that managing agents may face more frequent challenges and transitions triggered by leaseholders. Agents should be prepared for RTM claims and understand the statutory process, which includes establishing RTM companies, serving notices, and managing handovers.

Managing agents working with leaseholders considering RTM should provide clear guidance on the process and potential implications. For agents appointed after RTM claims succeed, the role extends beyond traditional management to supporting leaseholders who are often new to managing their buildings.

Landlords and agents should also monitor service charge levels and ensure transparency, as rising costs are a key driver behind RTM activity. The increased accessibility of RTM means that leaseholders’ appetite for control may continue to grow, especially in mixed-use developments now within scope.

What landlords and agents should consider now

Landlords and managing agents should review their portfolios for properties where leaseholders might have the right to manage, especially mixed-use buildings with significant non-residential floorspace. Understanding the RTM process and recent reforms is essential to anticipate potential claims and prepare for smooth transitions if they occur.

Agents should maintain thorough records of management agreements, building insurance, contractor arrangements, and communications with residents, as these will be critical during handovers. Engaging proactively with leaseholders and addressing service charge concerns may reduce the risk of RTM claims.

For leaseholders considering RTM, having a managing agent experienced in the statutory process and subsequent building management is vital. Horizon Management’s dual role in running the RTM process and managing the buildings afterward exemplifies this approach.

Keeping your portfolio ready for RTM challenges

Membership of The Landlord Association (TLA) offers landlords and letting agents access to compliance resources and practical information relevant to RTM and leasehold management. TLA’s developing property management platform, ORBIT, currently in BETA testing, is designed to help members organise portfolios, manage rental documents, and record key actions such as repairs, inspections, and communications with leaseholders.

ORBIT’s tools can assist in preparing for RTM claims by maintaining evidence of compliance and facilitating smooth transitions if management changes. TLA membership also provides updates on regulatory developments affecting leasehold and tenancy law, helping members stay informed and responsive to changes in the sector.

Exploring TLA membership and ORBIT BETA access can support landlords and agents in adapting to the evolving management landscape shaped by RTM reforms and leaseholder activism.

Looking ahead, the trend of leaseholders exercising their Right to Manage is likely to continue as financial pressures persist and leasehold reform progresses. Landlords and agents who stay informed and prepared will be better positioned to manage these transitions effectively.

Sources: Letting Agent Today