Block Management Fees Explained
Block management fees are the costs charged by a managing agent to administer a shared building on behalf of leaseholders and freeholders. Understanding how much block management costs and what should be included helps you make an informed decision and avoid paying for a service that fails to deliver value.
How Block Management Fees Work
Block management fees are the professional charges levied by a managing agent for overseeing the day-to-day running of a block of flats or multi-unit residential development. The fee covers the administrative, financial, and operational work involved in keeping a shared building safe, well-maintained, and legally compliant. It is usually shown as a separate line item within the annual service charge budget that leaseholders pay.
Most block management companies in the UK charge on a per-unit, per-annum basis. This means the fee is calculated by multiplying a fixed annual amount by the number of units in the building. The per-unit model is widely regarded as the fairest approach because it scales with the size of the development and allows leaseholders to compare costs easily across different providers. Some agents charge a percentage of the total service charge budget, but this model can create a conflict of interest because the agent benefits financially when expenditure increases.
At Block, we use straightforward per-unit pricing with no hidden extras. Our fee proposal is fully itemised before you commit, so you know exactly what you are paying for and what is included. We believe transparent property management fees are the foundation of a trustworthy relationship between managing agent and client.
Per-Unit Pricing Explained
Block management cost per unit is calculated as a fixed annual amount multiplied by the number of flats in the development. A 20-unit block at 250 pounds per unit would have an annual management fee of 5,000 pounds, shared equally among leaseholders through the service charge. This transparent model makes it straightforward to compare quotes from different providers.
What Is Included in Block Management Fees?
Understanding what your management fees for flats actually cover is essential when evaluating whether you are receiving value for money. A reputable block management company will clearly set out every service included in the fee, with no ambiguity about what is covered as standard and what may incur an additional charge.
At Block, the following core services are included within our standard block management fees for every building we manage. We tailor the scope of work to match the specific requirements of each development, ensuring you only pay for what your building genuinely needs.
Service charge budget preparation, demand collection, arrears management, and certified year-end accounts
Coordination of planned preventative maintenance and reactive repairs across all communal areas
Health and safety compliance including fire risk assessments, electrical testing, and legionella checks
Competitive block insurance sourced through our broker network with full claims management
Section 20 consultation management for qualifying works exceeding 250 pounds per leaseholder
Dedicated named property manager as your single point of contact for all building matters
Regular management reports, building updates, and AGM facilitation for directors and leaseholders
Online resident portal providing access to documents, accounts, and maintenance request tracking
For a comprehensive overview of how we manage shared buildings, visit our block management page. To understand how we handle the financial side, see our service charge management guide.
Factors That Affect Block Management Costs
How much does block management cost? The answer depends on several variables specific to each building. Understanding these factors helps you evaluate whether a quote represents fair value and why fees may differ between providers or between buildings of different sizes and complexity.
The following are the main factors that influence block management fees in the UK.
Number of Units
Block size is the single biggest factor in determining the per-unit fee. Smaller blocks with fewer than ten units typically attract higher per-unit costs because the fixed administrative workload is spread across fewer leaseholders. Larger developments benefit from economies of scale.
Scope of Services Required
Buildings with lifts, concierge services, extensive grounds, car parks, or complex mechanical and electrical installations require more management input and specialist contractor oversight, which increases the overall management cost.
Location of the Property
Property management fees in the UK vary by region. Buildings in London and the South East typically attract higher fees due to increased operating costs, higher contractor rates, and the complexity of managing properties in densely populated urban areas.
Condition and Age of the Building
Older buildings or those in poor condition require more reactive maintenance, more frequent compliance inspections, and closer oversight of major works programmes. This additional workload is reflected in the management fee.
Complexity of Lease Arrangements
Buildings with complex or inconsistent lease terms, mixed-use elements, or multiple freeholders require additional legal and administrative work, which can increase the management fee to reflect the extra time and expertise involved.
Level of Leaseholder Engagement
Blocks with active residents management companies or engaged directors may require more frequent reporting, meetings, and communication. While this engagement leads to better-managed buildings, it does involve additional management time.
Typical Fee Ranges and Industry Averages
Average block management fees in the UK typically fall within the following ranges, based on block size and the scope of services provided. These figures provide a useful benchmark when comparing quotes, but it is important to look beyond the headline number and understand exactly what is included in each proposal.
| Block Size | Typical Fee Per Unit Per Year | Notes |
|---|---|---|
| 2–10 units | £300–£500 | Higher per-unit cost due to fixed admin spread across fewer leaseholders |
| 11–30 units | £200–£350 | Most common range for mid-sized residential blocks in the UK |
| 31–60 units | £175–£275 | Economies of scale reduce per-unit cost for larger developments |
| 60+ units | £150–£250 | Large blocks with dedicated on-site staff may vary further |
These ranges reflect average block management fees UK for standard residential blocks without significant additional complexities. Buildings with lifts, swimming pools, extensive grounds, or mixed-use elements may fall above these ranges. London and South East properties also tend to attract higher fees than buildings in the Midlands, North, or other regions.
When comparing quotes, always ask for a detailed breakdown of what is included. A lower headline fee that excludes essential services such as compliance management, insurance arrangement, or Section 20 consultation work will ultimately cost more than a slightly higher fee that covers everything as standard. The cheapest managing agent is rarely the best value.
If you are currently paying above these ranges or feel your current provider does not offer value for money, we can provide a free benchmarking review. Contact us to switch managing agent and see how our transparent pricing compares.
Value for Money - What Sets a Good Managing Agent Apart
What is a reasonable management fee for leasehold property? The answer is not simply about finding the lowest price. A good managing agent delivers value that far exceeds the cost of their fee by reducing long-term maintenance expenditure, securing competitive contractor rates, keeping the building compliant with all statutory obligations, and protecting the property's value through proactive management.
Poor management, on the other hand, costs leaseholders far more than any saving on the headline management fee. Deferred maintenance leads to expensive emergency repairs. Inadequate compliance management exposes the building to enforcement action. Hidden commissions on block insurance and contractor invoices inflate the service charge without delivering any additional benefit to residents.
Transparent, fully itemised fee proposals with no hidden commissions or undisclosed income streams
Competitive contractor procurement that delivers quality work at fair prices, reducing long-term costs
Proactive planned maintenance that prevents expensive reactive repairs and extends the life of building components
Rigorous compliance management that keeps the building safe and avoids costly enforcement action
Clear, regular financial reporting so leaseholders always know exactly where their service charge money goes
Dedicated property manager who knows your building and responds promptly to all enquiries
Block delivers all of these as standard. Our approach to block management is built on the principle that transparency, accountability, and proactive service are what leaseholders deserve. To learn more about how we protect your building, visit our block insurance page or explore our full range of block management services.
Our Transparent Pricing Approach
At Block, we believe that block management fees should be completely transparent. Too many leaseholders across the UK pay inflated service charges because their managing agent takes undisclosed commissions on insurance policies, marks up contractor invoices, or charges vaguely defined supplementary fees that were never clearly agreed at the outset.
Our pricing model is different. We provide a detailed, fully itemised fee proposal before you commit. Every charge is explained clearly, and there are no hidden extras. We do not take commissions on block insurance placements, we do not mark up contractor invoices, and we do not charge for services that should be included as standard within a professional block management service.
Our service charge management fee is shown as a clear, separate line item within the annual budget. Leaseholders can see exactly what they are paying for management and can compare our fee against the cost and quality of the service we deliver. We welcome scrutiny because we have nothing to hide.
Free, No-Obligation Quote
Ready to find out how much block management costs for your building? Contact us or call 0161 371 7190 for a tailored quote based on your building's specific requirements. We will visit the property, review the lease, and provide a detailed proposal within five working days. There is no obligation and no pressure.
Frequently Asked Questions About Block Management Fees
What is a typical management fee?
A typical block management fee in the UK ranges from around 150 to 500 pounds per unit per year, depending on the size of the building, the scope of services required, and the location of the property. Smaller blocks with fewer than ten units often sit at the higher end of the range because fixed administrative costs are spread across fewer leaseholders. Larger developments benefit from economies of scale and may attract a lower per-unit fee. The management fee is usually included as a line item within the annual service charge budget.
Can I refuse to pay management fees?
In most cases, leaseholders cannot simply refuse to pay management fees. The obligation to contribute to service charges, which include the managing agent fee, is written into the terms of your lease. If you withhold payment, the freeholder or management company may take legal action to recover the debt. However, if you believe the fees are unreasonable or the services provided are inadequate, you have the right to challenge them at the First-tier Tribunal (Property Chamber). It is advisable to seek legal advice before withholding any payment and to document your concerns in writing.
How much can you charge for management fees?
There is no legal cap on block management fees in the UK, but the Landlord and Tenant Act 1985 requires that all service charges, including the management fee, must be reasonable. What constitutes a reasonable fee depends on the size of the building, the range of services provided, and the standard of management delivered. Leaseholders have the right to challenge fees they consider unreasonable at the First-tier Tribunal. At Block, our fees are fully transparent and reflect the genuine cost of delivering a high-quality, professional management service.
Is a 1% management fee good?
A 1% management fee is a pricing model sometimes used in buy-to-let property management, where the fee is calculated as a percentage of rental income. This model is rarely used in block management, where fees are typically charged on a per-unit, per-annum basis rather than as a percentage. In block management, the quality and scope of the service matter far more than the headline fee. A low fee with hidden commissions on insurance or contractor mark-ups can cost leaseholders significantly more than a transparent, slightly higher management fee with no hidden extras.
What is a reasonable management fee for leasehold property?
A reasonable management fee for a leasehold property depends on the number of units in the building, the services included, the condition of the property, and the complexity of the lease arrangements. As a general guide, fees between 200 and 400 pounds per unit per year are common for well-managed blocks of flats in the UK. The fee should cover core services including service charge administration, building maintenance coordination, compliance management, insurance arrangement, and leaseholder communication. Any additional services such as major works project management or Section 20 consultations may incur supplementary charges.
Are management fees tax deductible in the UK?
For buy-to-let landlords who own a leasehold flat as an investment property, the service charge and management fee paid to the block managing agent are generally allowable expenses that can be deducted from rental income for tax purposes. For owner-occupiers living in their own leasehold flat, management fees are not tax deductible because they are a personal living expense rather than a business cost. If you are a freeholder who receives ground rent or other income from the building, management costs associated with that income may also be deductible. Always consult a qualified accountant for advice specific to your tax situation.
Get a Transparent Block Management Quote Today
Whether you are looking for a managing agent for a new development, want to switch from your current provider, or simply want to benchmark your existing block management fees against a transparent alternative, we are here to help. Every quote is tailored to your building's specific needs, with no hidden charges.