Building safety and compliance: what a self-managing block can't ignore

Taking control of your building through RTM is, for most leaseholders, a genuinely positive step. You gain transparency, you can hold contractors accountable, and you make the decisions that affect where you live. But it comes with something that is sometimes underestimated in the early enthusiasm of a successful claim: real legal duties, personally held by the directors of the RTM company.

This is not a counsel of despair. Many leaseholder-run blocks manage compliance thoughtfully and well, often better than the professional managing agents they replaced. But it requires knowing what the duties are, keeping track of them systematically, and not letting anything slip through the cracks. The consequences of getting it wrong — in some areas — can be serious.

Directors' duties under the Companies Act 2006

The directors of an RTM company are, first and foremost, directors of a company. That means the duties in the Companies Act 2006 apply to them personally. In summary, directors must:

• Act within their powers (within the company's articles and the law)
• Promote the success of the company for the benefit of its members
• Exercise independent judgement
• Exercise reasonable care, skill, and diligence
• Avoid conflicts of interest
• Declare any interest in a proposed transaction or arrangement

These are not abstract obligations. A director of an RTM company who ignores a known compliance risk, or who fails to exercise reasonable care in overseeing contractors, may find themselves personally exposed if something goes wrong.

The good news is that the standard applied to volunteer directors — people who are leaseholders, not professional managers — takes their circumstances into account. The law requires reasonable care, skill, and diligence in the context of the director's actual knowledge and experience. But that does not mean the duties can simply be ignored. "I didn't know" is much less of a defence once you have taken on the role and been put on notice of the relevant obligations.

The compliance landscape: a survey

The following is a general overview of the main areas. It is not exhaustive, and the specific requirements in each area can be complex. The purpose is to give directors a clear picture of the terrain, not a complete technical guide to each obligation.

Fire safety and fire risk assessment

Every residential block with common parts has fire safety obligations. The foundation is the requirement for a fire risk assessment of the common parts, carried out by a competent person. The assessment must be kept up to date and must be acted upon — identified hazards must be addressed and the assessment reviewed periodically and after any significant change to the building.

The Regulatory Reform (Fire Safety) Order 2005 is the primary framework. The "responsible person" for the common parts — typically the RTM company — is legally required to ensure an adequate assessment is in place and that fire precautions are maintained.

This is one of the non-negotiable items. A fire safety failure is not just a compliance issue; it is a matter of life safety.

Buildings insurance

The leases will typically require the building to be insured, and the RTM company, as the manager, takes on responsibility for putting that insurance in place. Buildings insurance must:

• Cover the full reinstatement value of the building (not the market value — the cost to rebuild it from scratch)
• Meet any requirements specified in the leases
• Be renewed and the policy kept current

It is also strongly advisable for the RTM company to hold directors' and officers' (D&O) liability insurance. This covers the directors personally against claims arising from decisions they make in running the company. Given the breadth of the compliance obligations directors take on, D&O cover is not an optional extra — it is prudent protection for volunteer leaseholders who are doing their best in a complex role.

Health and safety in common parts

The common parts of the building — staircases, corridors, the car park, the bin store, communal gardens — are subject to general health and safety obligations. As the manager, the RTM company must take reasonable steps to ensure these areas are safe for residents, visitors, and contractors.

Practically, this means:

• Regular inspections of common areas
• Prompt attention to hazards (trip risks, lighting failures, broken balustrades)
• Appropriate risk assessments where relevant
• Safe systems of work for contractors operating in the building

A documented inspection regime, even a simple one, provides evidence of a systematic approach and protects directors if something does go wrong.

Lift inspections

If the building has a lift, it must be inspected regularly by a competent engineer under the Lifting Operations and Lifting Equipment Regulations 1998 (LOLER) and the Provision and Use of Work Equipment Regulations 1998 (PUWER). Lifts require periodic thorough examination — the exact frequency depends on the lift and its use — and a written report must be obtained and acted upon.

A lift that is out of thorough examination, or where identified defects have not been addressed, is a compliance failure that the RTM company as operator is responsible for.

Electrical safety in common areas

Electrical installations in the common parts should be subject to periodic inspection and testing by a qualified electrician. The resulting Electrical Installation Condition Report (EICR) identifies any issues and grades them by urgency. Urgent defects must be addressed promptly.

This is distinct from individual flats, where different obligations apply to landlords of rented properties. The RTM company's responsibility is the common-part electrical installations: lighting, power in common areas, door-entry systems, and so on.

Gas safety in common areas

If there are gas appliances in the common parts — a communal boiler, for example — they require an annual gas safety check by a Gas Safe registered engineer, with a record kept and made available. As with electrical safety, this is specifically about installations the RTM company is responsible for, not individual flats.

Asbestos management

Buildings constructed or refurbished before 2000 may contain asbestos. The Control of Asbestos Regulations 2012 impose a duty to manage asbestos in non-domestic premises and common parts of residential buildings. This means:

• Identifying whether asbestos-containing materials are present (through a survey if necessary)
• Assessing the risk they pose
• Managing the risk — which may mean leaving materials in good condition in situ, encapsulating them, or removing them
• Keeping a record (an asbestos register) and making it available to contractors working in the building

Asbestos that is in good condition and not disturbed typically does not need to be removed. But it does need to be identified, recorded, and managed.

Water safety and legionella

The RTM company has a duty to assess and manage the risk of Legionella bacteria in water systems in the common parts — particularly where there are communal water tanks, cooling towers, or other water systems that could harbour and disperse bacteria.

For most residential blocks, the risk is relatively low if the water system is straightforward and well-maintained. But a risk assessment is still required, and records should be kept. Where risks are identified, a control scheme should be put in place.

The building safety regime for higher-risk buildings

For taller and more complex residential buildings — broadly, those at higher risk by virtue of their height and occupancy — there is a more onerous regulatory regime introduced under the Building Safety Act 2022. This involves registration, a building safety case, a residents' engagement strategy, and ongoing obligations to a Building Safety Regulator.

This article does not attempt to summarise all of those requirements. If your building falls within the higher-risk building regime, you will need specialist advice to understand and implement the full set of obligations. The stakes — and the complexity — are considerably higher than for a conventional low-rise block, and the regulatory framework is still evolving.

Keeping track: the case for a systematic approach

Reading through this list, it is easy to see how a well-intentioned but under-resourced RTM company could find itself with compliance gaps. A fire risk assessment done, but then not reviewed when the building had new works. A lift inspection overdue because no one was tracking the renewal date. An asbestos register prepared at takeover but never shared with contractors.

The antidote is a tracked system. Every compliance obligation should have:

• A clear owner (typically a director or a contractor)
• A due date
• A record of completion
• An alert when renewal is approaching

Reeve OS includes a compliance tracker that does exactly this — maintaining a schedule of all statutory obligations, logging when they were last completed, and generating reminders when action is needed. Having everything in one place, visible to all directors, removes the reliance on one person's memory or inbox. When a director leaves or a contractor changes, the records stay with the block, not with an individual.

Self-management is empowering — and that is why it matters

None of this should deter leaseholders from pursuing RTM. The compliance obligations that fall on an RTM company are largely the same ones that were already supposed to be being met by the previous manager — often, when a block pursues RTM, one of the motivations is that compliance was being neglected under the old arrangement.

What changes is accountability. When you are the director of the RTM company, you are accountable in a way that a leaseholder never is. That is a significant responsibility, but it is also what gives RTM its power: you are no longer at the mercy of someone else's negligence. You have the tools and the authority to get it right.

FAQ

Do the directors of an RTM company need professional qualifications?

Not currently. However, directors owe duties of care and must exercise reasonable skill in the role. As managing-agent regulation develops and professionalisation proposals advance, the expectations on self-managing directors may increase. Taking relevant training — through organisations such as the Association of Residential Managing Agents (ARMA) or the Institute of Residential Property Management (IRPM) — is sensible.

Are directors personally liable if something goes wrong?

It depends. Directors can be personally liable for breaches of their statutory duties or where they have acted recklessly. This is one reason why directors' and officers' (D&O) liability insurance is important — it provides a financial backstop in the event of a claim against a director acting in good faith.

What if we cannot afford all the compliance work at once?

Prioritise by risk. Fire safety and lift inspections are not optional; they protect life safety. Other areas can be addressed in a planned sequence, but having a documented plan — rather than an undifferentiated backlog — demonstrates that you are taking the obligations seriously.

Where can we find a competent fire risk assessor?

The National Fire Chiefs Council and the Fire Industry Association publish registers of competent assessors. Your insurer may also have recommendations. Check that whoever you engage is suitably qualified and insured for the work.

Does RTM change anything about compliance for individual flats?

No. RTM gives the RTM company management functions over common parts and the building envelope. What happens inside individual flats — including any letting obligations landlord-members have to their own tenants — is separate. Leaseholders who let their flats have their own obligations as landlords; the RTM company's role does not extend to those.