The code was updated to take into account changes to good practice as well as changes to legislation, such as the Building Safety Act 2022 and the Fire Safety Act 2021.
The 4th edition
The Service charge residential management code sets out best practices for managing residential leasehold properties with a focus on raising standards, promoting consistency and ensuring transparency.
The 4th edition of the code, reviewed by the Ministry of Housing, Communities and Local Government (MHCLG) and approved by the Secretary of State, is effective from 7 April 2026. It applies only to residential leasehold properties in England, but practitioners operating in other parts of the UK are encouraged to follow the best practice guidelines contained in the code.
This code is written to promote desirable practices in respect of the management of residential leasehold property, with the latest edition of the code reflecting recent developments in legislation, such as the Building Safety Act (2022) and the Fire Safety Act (2021) and good practice. Effective property management requires cooperation and a shared understanding of procedures and potential problems.
It is intended to be followed by RICS members and regulated firms acting as managing agents, and all parties responsible for or affected by service charges including social housing providers, landlords, leaseholders and occupiers. Additionally, parts are specifically intended for other parties such as property owners and professional advisers.
The code was laid as a Statutory Instrument on 17 March 2026 – available here.
The code aims to:
- Improve general standards and promote best practice, consistency, reasonableness and transparency in the management and administration of long leasehold residential property.
- Ensure the timely issue of all documentation including budgets and year end accounts.
- Reduce the causes of disputes and to give guidance to resolving disputes where these do occur.
Downloads
Service Charge Residential Management Code 4th edition (PDF 2.54MB)
Published date: 17 March 2026
Service Charge Residential Management Code 4th edition - Basis of Conclusions (PDF 0.13MB)
Published date: 17 March 2026
Service Charge Residential Management Code 4th edition - Changes from 3rd edition (PDF 1.27MB)
Published date: 17 March 2026
A hard copy of the code is available in the Library of the RICS London office. Please contact knowledge@rics.org to book an appointment if you would like to view it.
RICS will be running a free to attend webinar on the code, summarising the updates, on 10 April 2026, 10:00-11:00 BST. To register for the webinar, click here.
FAQs
The 4th edition of the code has been reviewed by the Ministry of Housing, Communities and Local Government (MHCLG), which, to be sufficiently thorough, has taken time given the scope and impact.
In order for the code to have Secretary of State approval, which gives it formal recognition under relevant legislation, MHCLG carried out both a legal review and a policy review of the code. It ensures that the code covers all relevant statutory provisions around service charge management.
The expert group consisted of representatives from the below bodies/firms:
- Anthony Gold Solicitors
- ARHM
- Block Property Management
- First Tier Tribunal (Property Chamber) Residential Property
- Homeground Management
- Lambert Smith Hampton
- Leasehold Consultancy Services Ltd (representing the Association of Retirement Housing Managers)
- National Housing Federation
- The Property Institute
- Residential Management Group
- Thrive Housing Association
RICS carried out an 8-week public consultation on the code, from 4 April to 30 May 2022. All feedback received from the public consultation was reviewed by the expert group before the final draft of the code was agreed.
RICS also took into consideration, feedback in the consultation received from:
- Leasehold Advisory Service (LEASE), often referred to as "Lease Advice", who provide free, independent advice specifically for leaseholders and park homeowners, acting as a consumer advocate in this area.
- The Federation of Private Residents Association Ltd, who represent the interests of private residential leaseholders, tenants, and residents' associations, offering advice and support on various issues related to tenancy and management of residential complexes.
RICS, as part of the consultation, also held roundtables with several Local Authorities, who acknowledged that the code sets out good practice in the administration of service charges. They are committed to working towards putting the code into practice when it becomes effective.
RICS also spoke with several Housing Associations, who must abide by various other industry codes and fed back that the RICS code demonstrates good practice and would ensure consistency for consumers/leaseholders.
Should you have concerns about a RICS member or RICS regulated member firm, you can contact RICS.
There have been several structural and textual changes between the 3rd and 4th editions of the code. These include new sections and updated guidance based on new and proposed legislative changes, as well as additional glossary definitions and clearer text for some sections, A full breakdown of the changes is included in the Basis of Conclusions.
The 3rd edition
Whilst the 4th edition of the code is effective from 7 April 2026, the 3rd edition of the code still applies to leasehold management disputes reviewed by the First Tier Tribunal, if they relate to acts or omissions that took place before 7 April 2026. Once all of these cases have been processed, the 3rd edition will be archived.
The code has been reviewed and updated by an expert group under the guidance of Jeff Platt, the technical author, who has extensive experience in leasehold and service charge management. Following Secretary of State approval for the fourth edition of the code, it was also reviewed by the Ministry for Housing, Communities and Local Government (MHCLG).
Download
Service Charge Residential Management Code 3rd edition (PDF 0.79MB)
Published date: 26 May 2016