RMC vs Adoption Management Model
With the introduction of new legislation in November, developments will incorporate onsite Biodiversity Net Gain with a required 30-year covenant to ensure its delivery. With such a long-term legal requirement that could see the developer penalised for any failures, it is important for housebuilders as well as Local Planning Authorities to carefully consider suitable ongoing management.
There are two management options typically used by developers. The first is an adoption approach where an organisation takes full management responsibility and liability for the areas in perpetuity. The second is a residents management company model (RMC), where liability falls to homeowner directors and signatories of the S106.
The question is, which model is best to deliver BNG successfully?
It is worth remembering that there are already many aspects of open space management that require specialist expertise including play areas, woodlands, and SuDS features. With members of the public accessing open spaces, risks must be carefully managed. With the addition of Biodiversity Net Gain 30-year covenants and the crucial role these will play in providing spaces for nature, it is vital that open spaces are managed by experienced bodies with the capability and expertise to oversee the ongoing requirements both for biodiversity and health and safety over the long term.
| RMC | Meadfleet | |
| Homeowners safe from legal liability | No | Yes |
| In-house ecological and technical expertise | No | Yes |
| Resident input | Yes | Yes |
| Long-term management and accountability | No | Yes |
| Customers invoiced in arrears | No | Yes |
| Objective and Independent | No | Yes |
The RMC model compels (sometimes unwilling) homeowners to become directors, legally responsible for the management of the open space and associated liabilities.
If directors no longer have the time or energy for the role or if they move house, efforts can languish. Furthermore, this role is likely to be outside their level of expertise and there is a risk that subjectivity creeps into the decision-making process. Whilst a managing agent is likely to be appointed for the day-to-day management, this model is open to manipulation by resident directors who may not have the interests of the development as a whole or may be averse to certain areas of expenditure. Where managing agents are appointed, this can be on a short-term basis with no long-term accountability or obligation and a desire to please RMC directors.
Self-management may seem to offer more choice and input, but the reality is often complex systems including intricate administrative and accounting processes, which can result in higher charges, inactivity, and confusion. Directors are burdened with legal and administrative issues including enforcement action which could see them personally liable.
The reasons above cast doubt as to whether the resident management model could ensure the successful delivery of BNG legislation requirements.
A lifetime management model with in-house expertise to manage all aspects of open space features objectively and responsibly over the long-term will help ensure a developer’s legacy is protected and risks are minimised. Developers should look for long-standing organisations with a proven reputation for excellence and expertise and the in-house specialist knowledge required. This approach also helps reduce customer costs and provides clear lines of accountability.
Open space management companies should be experts in managing open spaces for biodiversity and engaging customers in the benefits of managing areas for wildlife. In-house ecologists that will take on the adaptive management, monitoring, and surveying requirements of BNG and can provide support to developers throughout the process which will ensure a seamless transition through the new regulations.
To learn how Meadfleet can successfully manage Biodiversity Net Gain on your open spaces, please get in touch:
enquiries@meadfleet.co.uk / 01438 890780
About Meadfleet
Meadfleet are a leading sustainable land-adopting management company. We have in-house ecologists with expertise in the BNG metric and are already applying the principles of Biodiversity Net Gain across our existing open space portfolio in England and Wales. Established in 1995, Meadfleet manage over 330 developments and 42,000 residential properties in our portfolio, with a strong balance sheet.
Meadfleet offers management of Biodiversity Net Gain delivery both on a managed development and on offsite areas, either via customer contributions or commuted sums. Our adoption model relieves developers of ongoing liabilities and management costs.
The Meadfleet model removes onerous liabilities from homeowners yet still encourages their input and engagement into the management of their local environment. We are committed to providing an excellent service to residents as demonstrated by our Excellent rating on Trustpilot and are members of The Property Ombudsman Scheme (TPOS), offering customers free, independent redress should they feel it is required. We are happy to work with residents groups and positively encourage the creation of these on the developments we are involved with. We believe this opens an effective two-way dialogue between homeowners and ourselves.
As a land-adopting management company, Meadfleet take long-term responsibility of open space, building customer and community relations and implementing perpetual management and improvement plans. We take a holistic and independent approach to managing areas of open space for the benefit of all residents, biodiversity and the wider environment.