Residents Associations: A Guide for Blocks of Flats
Everything you need to know about residents association management in the UK. From setting up a residents association and understanding its powers, to the key differences between a residents association vs management company, this guide answers the questions that matter most to flat owners and leaseholders across the country.
What Is a Residents Association?
A residents association is a group of leaseholders within a block of flats or housing estate who come together to represent their collective interests. Unlike a residents management company (RMC), which is a limited company registered at Companies House with direct legal responsibility for managing a building, a residents association UK body is primarily an advisory and consultative organisation. It does not hold management authority over the property and cannot make binding decisions about service charges, maintenance, or insurance.
The distinction between a residents association and other management structures is important. A right to manage (RTM) company is formed by leaseholders to take over management from the freeholder under the Commonhold and Leasehold Reform Act 2002. A flat management company is a professional managing agent appointed to handle the day-to-day running of the building. A residents management company is typically established by the original developer and written into the lease. A residents association, by contrast, is formed voluntarily by the leaseholders themselves and exists to give them a collective voice rather than direct control.
So, is a residents association a legal entity? In most cases, no. A residents association is not a company and is not registered at Companies House. However, it can gain formal recognition under the Landlord and Tenant Act 1985, which grants it certain statutory rights. This recognised status is what gives a flat owners association its limited but meaningful powers within the leasehold framework.
How to Set Up a Residents Association
Understanding how to set up a residents association is straightforward, but getting the foundations right from the start will determine how effective the association becomes. A well-organised residents association can be a powerful voice for leaseholders and a constructive partner for the freeholder and managing agent. Here are the essential steps involved.
To qualify for formal recognition under the Landlord and Tenant Act 1985, the association must represent at least 60 percent of the qualifying tenants in the building. Recognition can be granted by the landlord voluntarily or, if the landlord refuses, by application to a member of the local Rent Assessment Committee panel. Once recognised, the association gains statutory consultation rights that strengthen its position considerably.
- Gauge interest among fellow leaseholders by speaking to neighbours and distributing a letter or email explaining the purpose and benefits of forming a residents association
- Hold an initial meeting to discuss the objectives of the association, elect a committee with a chair, secretary, and treasurer, and agree on basic rules of membership
- Draft a written constitution that sets out the name of the association, its objectives, membership criteria, committee structure, meeting procedures, voting rules, and how funds will be managed
- Ensure the association represents at least 60 percent of qualifying tenants in the building to meet the threshold for formal recognition under the Landlord and Tenant Act 1985
- Write to the freeholder or landlord requesting formal recognition of the association, providing evidence of membership levels and a copy of the constitution
- If the landlord refuses recognition, apply to a member of the local Rent Assessment Committee panel for a determination
- Begin holding regular meetings with documented minutes and establish a constructive working relationship with the freeholder or managing agent
The cost of setting up a residents association is minimal. There are no registration fees or filing obligations at Companies House because the association is not a limited company. The main costs are likely to be printing and postage for communications, and potentially a small membership subscription to cover administrative expenses. This makes a freehold residents association an accessible option for any group of leaseholders who want to have a greater say in how their building is managed without taking on the full responsibilities of a residents management company.
Residents Association vs Management Company
The question of residents association vs management company comes up frequently among leaseholders who want to understand where power and responsibility lie within their building. While both structures involve leaseholders, they operate at fundamentally different levels of authority and legal standing.
A residents management company is a corporate entity with legal obligations and direct management control. A residents association is a representative body with consultation rights but no management authority. Understanding this distinction is essential when deciding which structure is right for your block.
Residents Association
- Voluntary group of leaseholders with no Companies House registration
- Advisory and consultative role - cannot make binding management decisions
- Right to be consulted on managing agent appointments when formally recognised
- Can request service charge summaries and appoint a surveyor
- No direct authority over maintenance, insurance, or budgets
- Low cost to establish with no ongoing company filing obligations
Residents Management Company
- Limited company registered at Companies House with legal duties
- Direct management responsibility for the building and common parts
- Authority to appoint and dismiss the managing agent
- Sets service charge budgets, commissions works, arranges insurance
- Directors have legal obligations under the Companies Act 2006
- Requires proper governance, accounts, and Companies House filings
Many buildings benefit from having both a residents management company that handles formal management responsibilities and a residents association that provides a broader forum for leaseholder engagement. For guidance on director duties within a management company, see our block management directors guide. If your leaseholders want to take over management entirely, explore the right to manage process.
What Can a Residents Association Do?
Understanding what is the role of a residents association and the scope of its powers helps leaseholders set realistic expectations. A formally recognised residents association has several important statutory rights under the residents association rules UK framework established by the Landlord and Tenant Act 1985, but it also has clear limitations that leaseholders should understand.
The powers of a recognised residents association include the following rights, each of which gives the association a meaningful role in holding the freeholder and managing agent accountable for the standard of leaseholder rights and building management.
Powers and Rights
- Right to be consulted on the appointment of a managing agent by the landlord
- Right to appoint a qualified surveyor to advise on service charge matters
- Right to request a written summary of service charge costs from the landlord
- Right to inspect accounts, receipts, and supporting documents relating to service charges
- Right to be notified during Section 20 consultation for major works or long-term agreements
- Right to make observations and nominations during the Section 20 process
Limitations
- Cannot make binding management decisions about the building
- Cannot directly appoint or dismiss a managing agent
- Cannot set or approve service charge budgets
- Cannot commission maintenance works or arrange building insurance
- Cannot compel the freeholder to act on its recommendations
- Has no company law standing or obligations at Companies House
Where leaseholders want greater control than a residents association can provide, forming a right to manage company or working with an existing residents management company are the most effective routes. If your building already has a management company but the current agent is underperforming, our guide on how to change your managing agent explains the process in detail. You can also learn more about the annual general meeting process, which is the primary forum for leaseholder engagement in a managed building.
Frequently Asked Questions About Residents Associations
What power does a residents association have?
A recognised residents association has specific statutory rights under the Landlord and Tenant Act 1985. These include the right to be consulted on the appointment of a managing agent, the right to appoint a qualified surveyor to advise on service charge matters, and the right to request a written summary of service charge costs and inspect the supporting accounts and receipts. The association can also be consulted during Section 20 consultation processes for major works. However, a residents association does not have direct management control over the building. It cannot hire or fire a managing agent unilaterally, set service charge budgets, or make binding management decisions. Its power is advisory and consultative, which is why many flat owners choose to form a residents management company or exercise the right to manage for greater control.
Is a resident association the same as a management company?
No. A residents association and a residents management company are fundamentally different entities. A residents management company is a limited company registered at Companies House with legal obligations under the Companies Act 2006 and leasehold legislation. It has direct responsibility for managing the building, collecting service charges, arranging insurance, and maintaining the property. A residents association is an informal or formally recognised group of leaseholders that represents their collective interests but does not have management authority. The association can lobby, consult, and request information, but the management company or freeholder makes the binding decisions about the building.
How to run a resident association?
Running a residents association involves establishing a committee with a chair, secretary, and treasurer, adopting a written constitution that sets out the rules of membership and decision-making, and holding regular meetings with properly documented minutes. The association should aim to represent at least 60 percent of the qualifying tenants in the building to meet the threshold for formal recognition under the Landlord and Tenant Act 1985. Good practice includes maintaining open communication with all leaseholders through newsletters or email updates, keeping accurate records of any voluntary contributions collected, engaging constructively with the freeholder or managing agent, and ensuring that meetings are inclusive and well-organised so that all residents have the opportunity to participate.
What is the role of the residents association?
The role of a residents association is to represent the collective interests of leaseholders in dealings with the freeholder, the managing agent, or the residents management company. A recognised association provides a formal channel through which leaseholders can raise concerns about building management, request information about service charges, and be consulted on decisions that affect the property. The association acts as a forum for discussion and a collective voice, ensuring that the views of individual flat owners are heard and considered. It complements rather than replaces the work of a management company, and many buildings benefit from having both an active residents association and a professional managing agent working together.
Can residents remove a management company?
Leaseholders cannot simply remove a residents management company because it is usually a structural requirement of the lease. However, leaseholders who are members of the RMC can change the directors at a general meeting, effectively changing the leadership and direction of the company. If the concern is with the managing agent rather than the management company itself, the directors have the authority to terminate the management agreement and appoint a new managing agent, subject to any contractual notice period. Where the freeholder has appointed an unsatisfactory manager, leaseholders may exercise the right to manage under the Commonhold and Leasehold Reform Act 2002 or apply to the First-tier Tribunal for the appointment of a new manager under Section 24 of the Landlord and Tenant Act 1987.
What is the role of a director in a residents association?
Strictly speaking, a residents association does not have directors in the company law sense because it is not a registered company. Instead, the association is typically run by a committee with elected officers such as a chair, secretary, and treasurer. The chair leads meetings and represents the association in communications with the freeholder or managing agent. The secretary handles correspondence, meeting notices, and minutes. The treasurer manages any voluntary funds collected by the association. If the association is part of or works alongside a residents management company, that company will have formally appointed directors with legal duties under the Companies Act 2006, including the duty to act in the best interests of the company, exercise reasonable care and skill, and avoid conflicts of interest.
Need Professional Block Management Support?
Whether your residents association is looking for a better managing agent, your flat owners association wants to explore the right to manage, or your residents management company needs professional support with service charges, compliance, and day-to-day block management, Block is here to help. We support leaseholder groups and management companies across the UK with transparent, expert property management.