After almost a decade, on 17 March 2026, the Royal Institution of Chartered Surveyors (RICS) released the long‑awaited 4th edition of the Service Charge Residential Management Code.

Approved by the Secretary of State, the Code, last updated in 2016, provides updated guidance on the management of residential property in England where residents pay variable service charges. 

Importantly, for the first time, the new edition brings registered providers within the scope of key parts of the Code, which is a significant development for the social housing sector and those managing mixed‑tenure developments.

The updated Code reinforces best practice in budgeting, accounting, procurement, consultation, complaints handling, risk management and communication with residents. It also sets clearer expectations for managing agents regarding engagement and handling client money. 

The overarching themes are transparency, fairness, and professionalism, ensuring that landlords, managing agents, RMCs, and RTMs deliver value‑for‑money services in a consistent and accountable way.

Reflecting the evolving regulatory environment, the 4th edition places much stronger emphasis on fire safety, health and safety responsibilities and compliance with the Building Safety Act 2022. This aligns the Code with the heightened expectations for those responsible for residential blocks and helps embed a more structured, risk‑aware approach to management.

The Code also promotes long‑term and sustainable management practices, including planned preventative maintenance, long‑term asset planning and the use of reserve funds where permitted. These principles aim to minimise disputes, deliver cost‑effective maintenance and support the long‑term health of buildings.

Looking ahead, the Code recognises that further change is coming under the Leasehold and Freehold Reform Act 2024. Several provisions, such as a ban on insurance commissions, a standardised service charge format, annual reporting and information rights for residents, are expected to supersede parts of the current edition once implemented. The new Code acts as a bridge, helping the sector prepare for an increasingly transparent and regulated landscape.

With the new Code taking effect on 7 April 2026, landlords, managing agents, and now registered providers should familiarise themselves with the new requirements and begin preparing now. This includes reviewing and updating internal service charge policies and procedures, and training staff on the new requirements. Early preparation will help ensure a smooth and confident transition as the new Code comes into force.

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