Roger Southam, chairman and chief executive of Chainbow, comments: “Unlike other low-storey apartment complexes, residential towers need more care because more people in one location puts increased pressure on facilities such as lifts, refuse systems and security. In my experience, the management of these facilities, as well as ongoing maintenance, is usually the difference between a tower being perceived as a social housing complex or private residence. Perception of a property generally reflects its resale value, so even if a flat in an inferior complex looks like it should be in an interior design magazine, it will usually sell for less.”

Mr Southam is of the opinion that these misconceptions stem from the original residential towers of the 1960s and 1970s, which, because of inexperienced developers and budget restrictions, did not allocate funds for property management.

He continues: “In older residential towers, property management was usually overlooked and this is especially true for the social housing estates. However, we have witnessed many instances where managing agents have been introduced to former social housing flats that are now private residences, and the value of properties have increased.”

It is often the case, he added, that where a complex delivered excellent facilities and management when launched, but due to cost-cutting, services and luxury facilities were abandoned which inevitably reduced their appeal and resale value.

Chainbow has been advocating for developers of new complexes to reverse these trends and recently it has been approached to consult on managing facilities for several developments from the design stage.

“The consultation processes usually starts at the obvious level but as the project progresses, we tend to advise on issues such as car park security features, bin collection and fire exit plans. These are the everyday items residents notice but are usually overlooked by architects or buy-to-let investors,” explained Mr Southam.

B2L investors

Many residential tower developers target buy-to-let investors who are largely unaware of a building’s deterioration over time and in turn do not see the decrease in the value of their property.

“Because buy-to-let investors don’t live on the premises,” Mr Southam continued, “they do not realise details such as fire escape doors being left open for anyone to access, council trucks not being able to access refuse areas and car parks that allow people to drive out without a security pass, can affect the long-term sustainability and appeal of these types of development.”

An emerging trend shows several developers of residential towers have partnered with hotel chains to help manage the upkeep of facilities as well as provide residents with shared hotel services. While most managing agents applaud the innovative concept of these partnerships, some warn they are likely to have a short shelf-life and inflate residents’ expectations.

Mr Southam explained: “Residents who buy into developments, partly because they know a hotel chain is the managing agent, could be setting themselves up for a disappointment. These hotels usually offer residents services guests can expect but residents need to realise these add-on services do not come for free.

“Residential developments are only going to increase in order to meet London’s every increasing housing demand. In order to ensure the longevity of these developments, effective property management needs to be addressed now. Maintenance, security and cleanliness are key to ensuring residential tower apartments secure a strong resale value. What is also very important is the services promised to buyers at the point of sale are delivered and not shelved to reduce expenses,” he concluded®Å½