The Truth About Service Charges seminar took place at the IoD on the 23 January 2007. The seminar explored the complex relationship which exists between managing agents, landlords and tenants in relation to service charge costs and services in UK commercial property.

One of the day’s speakers, Dr John Calvert, from Loughborough University Business School announced the latest findings of the study into the UK multi-let office sector. Dr Calvert reported that there are ‘no beacons of good practice’ and that the industry is a long way from meeting the requirements of the RICS Code, due to come into effect in April 2007.

Keynote speaker Michael Slade, from Helical Bar Plc and Matthew Punshon from the Asset Factor described how the service charge industry is a long way behind the FM and PFI sectors. Matthew went on to explain that there are no defined service levels with service charges, making it difficult for managing agents to define what they do.

The afternoon speakers explored the legal position. Stephen Jourdan from Falcon Chambers provided a case law update looking at how case decisions relate to the RICS Code and highlighted that there is currently no statutory regulation for commercial property. Richard Bedford from Burges Salmon, event sponsor, reviewed the legal position in service charge disputes since the publication of the first RICS Guide to Good Practice in 1996.

Property Solutions has, since the seminar, committed to sponsoring Loughborough University to undertake a further study this year looking at the industry’s reaction to the Code of Practice. This Loughborough study is due to be published at the end of 2007/beginning of 2008.

If you have any further comments relating to the seminar or commercial property service charges, then please visit the feedback section of the website.