Operating in an evolving market means that managing agents must be adaptable to the changing requirements of legislative bodies, government, clients and customers.
At FirstPort, we are committed to working closely with these parties to ensure we are at the forefront of positive change in our industry, underpinned by our key principles: collaboration, simplicity, clarity and consistency, to ensure we are delivering the best possible service.
To do that we’ve set out four areas where we are taking action to communicate changes and raise standards in our service. These areas have been identified through a process of engagement with customers and, more recently, conversations with their members of parliament.
1. Service charges
The challenge
The period of high inflation experienced over the last few years has naturally pushed up the price of many of the services FirstPort procures to keep buildings in working order.
The Property Institute’s (TPI) Service Charge Index provides an industry benchmark. It shows that service charges have risen across the entire property management industry over the past five years. This has principally been due to substantial increases in building insurance, utility costs and adjusting to new building safety regulations.
Significantly higher bills have understandably placed greater scrutiny on service charges, particularly in the context of the wider cost of living
crisis. Consumers now demand a far more detailed level of information to understand what they are paying for as they more carefully manage their personal and family finances
Our commitment to customers
It is clear that our industry has not kept pace with these heightened consumer expectations and is inconsistent in making sure residents clearly understand the costs making up their service charge. To adapt to these changing demands, we are:
- We are revising the way we share service charge estimates, invoices, and year-end accounts with residents. This begins with the introduction of a newly formatted invoice designed to improve clarity and ease of understanding for customers. As part of a wider review of all service charge communications, we are committed to enhancing transparency through restructured documents, the use of graphical explainers, and a dedicated section within our customer portal. The revised formats will be trialled with customers in the second half of 2025, with full adoption planned across the business by the end of the year.
- Implementing explainer documents which outline in customer friendly language how to read and digest the information we send to them. This will include things like ‘how to navigate our invoices’ and ‘how to read a statement of expenditure’. This will be available to customers from mid-May 2025.
- Whilst we carry out internal exception reporting during the production of service charge accounts and service charge estimates, we have added additional controls in place which will drive differing levels of engagement and communication by our Operations team with customers prior to a service charge estimate or year end account invoice landing with them such as additional explanatory resident surgeries and additional opportunities for questions to be raised on costs. This will be happening from May 2025 onwards.
2. Standards & quality of service
The challenge
People are proud of their homes and rightly expect high standards. This includes management of the things that residents can readily see, such as upkeep of communal areas and maintenance, but also confidence that properties are being looked after longer-term so that they hold their value. The need to manage properties in line with regulation – including significantly more stringent building safety requirements – is also critically important.
Our commitment to customers
We are taking steps to drive up and demonstrate service quality, including in areas where we recognise our teams have been inconsistent. We are doing this by:
- Bringing our teams closer to customers. Operational and customer service teams have been re-organised into dedicated regions. This ensures that our operational teams have a close knowledge of, and accountability for, residents’ homes under their watch. All our support, customer service, and service charge teams are now office based within those regions driving greater cohesion between operators and their support functions. This is delivering results in reducing maintenance queries and customers reporting poor service standards (20% since December 24).
- Rolling-out a new performance regime. This covers nine core metrics to produce an overarching operational performance score. It creates stronger oversight and governance of property standards and staff capability. Where necessary this has seen us reconfigure teams and points of contact so residents receive the level of service we expect. Since implementation in August 2024 we have seen an 18% reduction in staff needing further support from management. This is continuously being monitored by our board.
- Investing in training. We are now enrolling all our staff – regardless of their role – on an industry leading 12 week intensive training programme, accredited by The Property Institute. This course is typically undertaken by front line staff but has now been rolled out for our support teams as well. This approach builds on a rigorous new training and careers programme that was introduced in August last year. Over 1,300 operational staff have already successfully completed the programme with 300 more to have completed it by Summer 2025 and a view to all having obtained a TPI Level 2 certification by Autumn 2025.
OVER 1,300 OPERATIONAL STAFF have already successfully completed the 12 week training programme
3. Procurement of services and value for money
The challenge
As we have outlined in section two, we need to strike the right balance between keeping costs as low as possible for our residents, while making sure the quality of work is not compromised.
In the vast majority of cases we are confident we get this balance right, but there are instances where the quality of a repair or regular service has not been up to standard – and that should not be acceptable.
When we are managing residents’ homes, we also need them to be confident they are getting value for money. That relies on clear communications and transparency as we have discussed in the previous section.
Our commitment to customers
- Implementing new ways for customers to raise their dissatisfaction with completed works within our customer platform. Our customer support specialists will be working with the operators on the front line to ensure swifter review and resolution in the event there are works that need to be reviewed and potentially reopened.
- Focusing on our supply chain. Driving standards at both a national and localised level as part of our wider performance management that we explain in section two.
- Improving our explanation of works. We are focusing on the ways we communicate with residents as to why work is being undertaken, clearly explaining the need for work to be done and why a particular supplier has been chosen.
- Providing greater transparency in the procurement process. This includes communicating with customers how the suppliers chosen represent value for money. This is particularly important in instances where customers have a preferred local supplier, but we opt for someone else for technical or safety reasons.
How we procure services
Under our management contract we ordinarily have responsibility for procuring all services to maintain homes so that they are safe and comfortable – from regular cleaning, to routine maintenance, to critical repair work. FirstPort does not charge commission or receive any referral fees for work by our supply chain. Our time and experience in procuring these services is reflected transparently in our management fee.
Our supply chain process is rigorous at both a national and local level to ensure value for money while making sure that properties are maintained for the long-term and in line with rising regulatory standards in areas like building safety and health and safety.
We operate a multi-stage process:
- Registration: In order to register as a FirstPort supplier, businesses or sole-traders must have a SafeContractor ‘Safety Schemes in Procurement’ approved by the Health and Safety Executive, as well as pass relevant credit checks and provide proof of the necessary trade qualifications. This is a base-level requirement, with further assessments made for specialist trades or services as needed.
- Tendering: Depending on the nature of the work, individual jobs will be put out to tender to multiple parties from our approved supplier list and to others where homeowners have made supplier nominations:
- For Framework suppliers (these can be national or local scale), pricing is agreed through a competitive tender process, with these prices locked for as long as possible to the benefit of our customers. At the time of tender, we compare their proposals against the
existing pricing and perform wider research to review the average costings within the UK for the trade or service being provided. If any supplier is charging higher than the average, we negotiate with them to bring this down. As the pricing is locked for the duration of the framework, this protects customers from increases due to unforeseen circumstances such as increases in inflation. - We also conduct ad-hoc benchmarking. For example, if a site identifies a supplier charging lower rates than the existing framework option. We then approach the framework supplier to ask them to match the cheaper rates that have been identified.
- For Framework suppliers (these can be national or local scale), pricing is agreed through a competitive tender process, with these prices locked for as long as possible to the benefit of our customers. At the time of tender, we compare their proposals against the
- Ongoing review: Operational staff review suppliers on their on-site performance. Where suppliers are failing to meet the expected standards agreed at the tender stage, they are given the opportunity to improve their performance. Where no improvements are seen they are removed from the job and considered for removal from the supply chain.
Cost of suppliers
As service charges have risen in recent years, we have simultaneously seen an increase in queries relating to the costs of suppliers chosen to perform certain services. In some cases, residents will point to preferred local options at a cheaper price point.
We act in the best interests of residents when taking a long-term view of risk and property value. There are occasions when choosing a supplier with the appropriate accreditation and qualifications will involve paying slightly more than an alternative.
Framework suppliers are often preferred for higher-risk works such as working at height or conducting risk assessments on statutory assets such as gates, lifts, and fire assets. This is because their documentation, accreditations and insurance will have been subject to regular checks by our procurement teams. This validates they are suitable and insured to complete these works and have the capability to correct any issues that may arise.
We appreciate, however, that for some lower-risk trades, such as garden maintenance, cleaning or handyman works, it can be beneficial to approach a local supplier that is not on our framework providing they meet FirstPort’s health and safety requirements.
We welcome these requests but ultimately must ensure that all suppliers are qualified to deliver the tasks to the appropriate standards. This is important to protect the interests of all parties associated with the property against risk.
How we manage building insurance
Building insurance premiums across residential property have risen in recent years. This is due to a combination of factors, which include general inflation, heightened building safety concerns post Grenfell and climate risk. Overall, the pool of insurers with an appetite to cover residential buildings has reduced and this has resulted in rising premiums.
Nonetheless, there are still choices to be made. The decision on which cover to take out rests with the building owner or resident management company where it is in place.
The policy is typically placed by brokers which advise clients on their options based on a range of factors including:
- Level of coverage required for the property, focusing on those areas where claims are most likely to be made
- Insurer appetite and capacity for buildings of differing risk profiles
- The level of claims being experienced, reflecting both the local and national market
KSI is run independently from FirstPort but is part of the wider group of companies that FirstPort itself belongs to. This type of relationship is not uncommon in property services but it is important that we are transparent with customers over the nature of the connection, so that they can be confident they are receiving the best service and value for their needs.
Ultimately, we are confident that KSI provides this value in the cases where it represents our customers. It is a specialist broker in the residential market, regulated by the FCA, which allows it to secure competitive products. Policies are placed with top-rated insurers to ensure a level of cover that is proportionate to risk.
KSI and all the brokers we work with will typically receive commission from the policy provider, as is normal practice in the insurance industry. KSI’s rate of commission will vary depending on the policy but is ordinarily between 5.5% and 16% of the overall premium. These rates have not increased for many years and in some cases they have fallen.
KSI does not:
- Charge fees for insurance, except in cases where it is not receiving commission from the policy provider
- Charge for document production or administration for amendments throughout the lifecycle of the policy
FirstPort does not receive any commission from Knight Square or any other broker for referring work.
While premiums across the industry have remained stubbornly high, there are indications that this may soften through 2025. Greater risk certainty in areas of regulation, including the building safety regime, should support lower premiums.
4. Transparency, accountability and response times
Redress and compensation
In cases where service issues are escalated to a complaint, our objective is to resolve the problem in a way that meets the needs of all parties, which may include residents, their neighbours, ourselves and the freeholder. Typically, our focus is on seeking to address the root cause of an issue and to fix it, while limiting costs incurred.
Residents can receive financial compensation for a variety of reasons, from historical issues dating back from when a scheme was being developed to an overcharge in energy billing. Where these costs need to be recovered from a third party such as the energy supplier, we will do this on residents’ behalf.
In cases where FirstPort has been at fault, we will issue compensation on a case-by-case basis commensurate to the scale of the issue and ensure payment is expedient. In many cases this compensation may involve consulting with third parties and whichever party instructs our services – the freeholder or resident management company.
Where necessary, disagreements over service charge spend can be escalated to the First Tier Tribunal or the county court.
Our expectation is that any new regulatory framework for managing agents would include a compensatory regime, levelling the playing field in the sector and driving consistency in standards.
The challenge
Our customers expect a seamless approach to communication. They want to be able to access information quickly online and have multiple options for contacting their managing agent.
In the case of property management, issues can often be complex, and will sometimes take time to resolve. Getting them sorted may also be reliant on third parties. We are aware this makes it more important to maintain regular communication with customers and to set realistic timetables to resolve issues.
Communication is central to many of the concerns our customers raise with us. We are taking action to modernise and streamline our processes to bring them in line with the levels of service seen across other industries.
Our commitment to customers
- Redefining our strategy putting customer satisfaction at the core. Practically this has included localising teams, investing in new systems and processes, enabling customer feedback and a dedication to resolving queries as quickly as possible
- Giving customers quick access to information around the clock. We have invested in improving and relaunching our ‘My Home’ digital platform, giving residents immediate access to relevant information about their property, providing a faster means of communicating queries and keeping them updated on progress.
- Since its relaunch in April 2024, over half our customers have now signed up to My Home. 20% of all our contact with customers comes through the platform with around 8,000 of them logging on each day
- We are investing further in the platform to provide more user capability and information around service charges and financial information which we know is important to our customers.
- Bringing customer service centres back to the UK. As of February 2025 we have re-established all FirstPort telephony teams in the UK, to reflect our new localised focus. Teams are based regionally, supporting our local property managers and fostering a closer relationship with our customers. This has driven a 17% reduction in customers contacting us by phone due to improvements in first time resolution and optimisation of My Home where customers can self serve.
- Focusing on faster resolution. We want to deliver a greater consistency of service allowing issues to be triaged and resolved quicker. Our new approach to customer communications has improved the speed at which we acknowledge queries, and first time response times have fallen by 23% helping customers access support more efficiently. We have a target to reduce this by a further 18% in 2025.
- Listening to customers’ priorities. We care about what our residents think about the service they receive. To reflect that we’re actively asking our customers what they want from us – and introducing new ways for them to provide feedback. This is being achieved through a new customer satisfaction survey introduced in May 2025, initially focused on areas we know customers want to see improved.
Timeline for proposed changes and improvements
How the market is changing
Systems of ownership and management responsibilities are rapidly changing in England and this is set to accelerate further with new reforms being brought forward by Government, including to strengthen and encourage the adoption of commonhold. This is part of a wider trend towards greater resident involvement in making choices over how their homes are financially held and run.
Ownership and management models
In a traditional leasehold and freehold arrangement, the freeholder has responsibility for maintaining the overall fabric of the building. This includes common areas. Under the terms of their lease, individual homeowners will be responsible for contributing funds to pay for these services.
By comparison, under commonhold, each homeowner has a joint and indivisible share of the common parts of the property. Decisions over
the property, and payment to maintain it, are shared jointly. In practice, commonhold only exists in England and Wales in very few cases. The objective behind the emerging legislation is to make this the default tenure for new developments. A similar system is widely used in Scotland.
In both arrangements, there are choices for each party to make over the delegation of responsibility for management.
The overwhelming trend within the leasehold system has been for residents to hold greater responsibility over management choices. This can be set up in two ways:
- From the early stages of development, the original developer – for example, a large housebuilder – will make provision to set up a Resident Management Company (RMC)
- For existing developments, residents can choose through a ballot mechanism to secure a Right To Manage
Historically, the vast majority of property managers’ clients were freeholders. Today, that accounts for a much smaller part of our business, with the majority of our appointments made through a resident-led system.
Figure 1 explains the common types of entities that instruct FirstPort as seen today.
Growing complexity
The clear trend within both a commonhold or leasehold system is towards residential-led management, both making residents increasingly our direct clients. It is therefore within our commercial interest to ensure we provide a high-quality, competitively priced, service.
This shift has, however, brought with it added complexity. Lease arrangements now tend to be more complicated than the traditional two-party system (Figure 1), with more stakeholders involved in the management process. It is our job as the property manager to balance the requirements – both legal and personal – of all parties to the agreement.
In cases where resident-management is in place, the arrangement will typically include a ‘named manager’. This role is designed to avoid the risk of management responsibilities being neglected.
Particularly on larger developments, there can be a range of entities responsible for managing different sections of land or real estate. This
can understandably create confusion, and there is a need for greater collaboration between all entities to educate and communicate with residents to help them understand the impact on them.
An example demonstrating the complexity of a typical lease arrangement on a new development over time can be found in figure 2.
Figure 1 below provides a detailed breakdown of the common types of instructing entities seen today.
Figure 2: an example demonstrating the complexity of a typical lease arrangement on a new development over time.
Data supplied: April 2025
