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A sinking fund is designed to be utilised almost like a savings account, to save for the future, for any major works or repairs that are required. During the first possibly five years of the initial build of any flats, there are normally very few major problems associated with maintenance and it is at this time that the residents should consider instructing their agent to open a separate bank account, in which to store funds for the future.

Maintaining all items within a block of flats, during the first few years, is relatively economical, however as fair wear and tear and age starts to take effect, items become increasingly more costly to repair and often need to be replaced.

This sinking fund can also be utilised to save for decoration of external or internal areas, roofs or any large unforeseen repairs.

The ability of a reserve / sinking fund, this money is already in the account, to enable works to go ahead, rather than invoicing for extra monies to the owners, when works are due.