For anyone who owned or managed buildings, the news in September 2007 was likely to prompt a fresh look at spending plans. On 14 September 2007 it was announced that Northern Rock had received emergency support from the Bank of England, and queues formed outside its branches. Nobody yet knew how far the effects would spread, but borrowing was already harder and confidence was lower.
The risk of cutting repairs
When money is uncertain, maintenance is often the first budget to be cut. That is understandable, but it is rarely a saving. A blocked gutter left for a winter becomes damp in a wall. A slipped slate becomes a rotten rafter. Deferred repairs tend to come back larger and more expensive, and they can reduce the value of the building and its attractiveness to tenants and lenders.
A better approach: plan, prioritise, phase
- Know what you have. A current condition survey tells you which items are urgent and which can safely wait.
- Prioritise by risk. Put items that keep the building wind and watertight, or that affect safety and legal compliance, at the top.
- Phase the rest. Spread work over several years in a planned maintenance programme, so that spending is predictable.
- Combine work sensibly. Group items that need the same scaffold or access, so you pay for it once.
- Keep reserves. For blocks of flats, a reserve fund built up through the service charge makes large items easier to fund when the time comes.
For leaseholders and managing agents
Where major works will be recharged through the service charge, early communication matters even more when household budgets are under pressure. A clear long term plan, shared with leaseholders, helps them understand what is coming and why. Consultation under section 20 of the Landlord and Tenant Act 1985 should be started in good time.
How we help
We prepare condition surveys and costed maintenance plans that let owners make informed choices about what to do now and what to plan for. See our Planned Preventative Maintenance and Major Works services, and how a decade of spend was planned for a listed London building.