PM (Property Managers) Forum
Insights from the Property Managers Forum: Addressing Industry Challenges Together
Cushman & Wakefield, Portman Square, London
The following notes are a summary of the discussion that took place at the Remit Consulting Property Managers’ Forum, in December 2024. This was kindly hosted by Cushman & Wakefield and addressed two significant areas: the impact of government and regulatory changes, and challenges in supply chain management.
Navigating Change: Government and Regulatory Impacts
Negative commercial impacts
The forum highlighted the far-reaching consequences of increased National Insurance contributions (effective April 2025) and the rising Living Wage. These changes are expected to inflate service charge costs, particularly in areas such as cleaning and security, where part-time, lower-wage roles are predominant. Additional challenges include:
Margin pressure: Property managers face the difficult task of providing premium services within constrained budgets.
Contract transparency: There is a growing demand for open-book contracts, intensifying scrutiny of costs.
Fee compression: Asset managers withdrawing unrecoverable fees from fixed charges are reducing property managers’ operational budgets.
Concerns were also raised about the rising business rates, particularly in the retail sector, and their knock-on effects on food and beverage operators. These financial pressures could increase voids in managed properties while operational costs persist. Participants noted that such challenges erode confidence, further hampering growth in the sector.
Workforce challenges
Labour market dynamics are also shifting. With rising costs, organisations are leaning more heavily on outsourcing, temporary recruitment, and automation. An ageing workforce, paired with shorter probation periods and reduced training budgets, complicates succession planning. Increased public transport costs further deter office returns, affecting urban economies.
Legislative pressures
Emerging regulations such as Martyn’s Law, leasehold enfranchisement reforms, and enhanced health and safety requirements for high-rise buildings add layers of complexity to property management. Furthermore, meeting Environmental, Social, and Governance (ESG) targets, including achieving net-zero emissions for buildings, introduces new operational and financial burdens.
Supply Chain Management: Navigating Complex Pressures
During the forum, supply chain challenges emerged as a second major theme.
Key issues discussed included:
Procurement strategies: Property managers are increasingly turning to regional procurement frameworks to balance responsiveness and scale.
ESG and compliance: Meeting sustainability goals and monitoring modern slavery and diversity within supply chains demand additional oversight.
Cost management: Post-Brexit workforce constraints and increasing supplier costs necessitate a balance between cost efficiency and service quality.
Participants noted the industry-wide need for greater awareness that reduced service charge budgets inevitably impact service quality. The focus has shifted from incentivising strong supplier performance to retaining reliable partners amid an increasingly strained supply chain landscape.
Broader Considerations: Office Returns and Data Sharing
The forum also touched on broader issues, including the evolving expectations for office spaces. Property managers suggested consulting office fit-out contractors to better understand occupier priorities, from desk space and meeting rooms to breakout areas.
Another concern was data sharing. While transparency fosters trust, participants observed that property managers are increasingly hesitant to share data, viewing it as a competitive advantage.
Summary
The December 2024 Property Managers Forum highlighted a range of issues currently affecting property management, including financial pressures driven by legislative changes, workforce challenges, and supply chain constraints. Discussions reflected the complexity of managing costs, maintaining service quality, and adapting to emerging regulations, such as ESG targets and health and safety requirements.
The session provided participants with an opportunity to reflect on shared challenges and consider practical approaches to managing these pressures across their organisations. For further details about the Property Managers Forum or future sessions, please contact: elijah.lewis@remitconsulting.com.