Legal responsibilities flummox Resident Directors
A new survey reveals nearly 90% of those legally responsible for residential developments are out of their depth.
A report believed to be the biggest ever proprietary research project undertaken with Resident Directors to date, has revealed some alarming statistics.
FirstPort, which works with 1,300 Resident Management Companies, conducted its second Resident Director Survey, which tested the opinions of Resident Directors regarding the new regulatory landscape. This will require them to keep up to date with proposed changes to building safety regulations and leasehold reform, whilst identifying and responding to the choices and challenges presented.
Despite this, 88% of the Directors surveyed said they do not have a good understanding of the issues, and when asked about time allocated to their duties, half (50%) of all Directors spend the least amount of their time staying informed about regulation and legislation changes.
When asked their feelings towards the proposed changes, there is a mix of scepticism (14%), apprehension (12%) and intrigue (10%). However, many Directors feel it’s too early to say (41%) how they feel about these changes and the impact they will have on their development.
21% of Directors surveyed have worked in the property industry, and almost half (48%) have no previous professional experience relevant to this role.
Despite the potential changes on the horizon, many Directors appear undeterred by the altering landscape, with 59% expecting to remain in their role beyond the next three years.
Unsurprisingly, the changing conditions do not appeal to everyone, with 34% of those surveyed saying that were they to leave their role in the future, the time required to carry out their duties adequately would be the most likely reason to step down.
Nigel Howell, Chief Executive at FirstPort said, “Regulatory changes in recent years – and indeed changes still to come – will no doubt give leaseholders greater opportunities to decide how their developments are managed. It is vital that those residents responsible for managing developments are supported to bring more meaningful, democratic choice to their fellow residents.
Read the full report www.firstport.co.uk/rds22
