Over three million leaseholders across England will benefit from stronger rights that will help challenge unfair service charges, starting from 1 April 2027.
Over three million leaseholders will have more control of their cash and stronger rights to tackle unfair service charges, as the government delivers another everyday fix to stop homeowners being left out of pocket by unfair costs.
From 1 April 2027, leaseholders will gain strong powers to demand information about their service charges, making it easier to see what they are paying for and why.
This will give people a clearer picture of how their building is managed, maintained, repaired and insured. Leaseholders will be able to ask for information from previous years and landlords will need a good reason to refuse to provide it.
From the same date, leaseholders will also get stronger protection from having to pay their landlord’s legal costs when they challenge a charge. This will end a huge barrier to fighting costs, by stopping landlords from charging leaseholders whether they win or lose, as a power to put them off.
Landlords will need court or tribunal approval to pass on any legal costs to leaseholders and to balance the scales of justice, leaseholders will get the new right to claw back their own legal expenses too.
Together, these changes will make it easier for leaseholders to understand and challenge unfair costs – another everyday fix tackling a real cost of living concern for homeowners, families and aspiring first-time buyers.
Prime Minister Andy Burnham said:
It is simply wrong that millions of leaseholders can be hit with unfair charges, then face another bill just for challenging them. That isn’t right, and where we can act quickly to change it, we will.
Today’s changes are only the beginning. We’re giving leaseholders stronger rights now, while we press ahead with the bigger reforms needed to put power back in homeowners’ hands and end the feudal leasehold system for good.
Housing Minister Matthew Pennycook said:
Rapidly escalating and frequently opaque service charges are placing huge financial strain on hard-pressed leaseholders across the country.
Today, we’re acting to protect them by introducing regulations that will improve the fairness and transparency of service charges so that unreasonable increases can be more easily challenged.
As we work to dismantle the feudal leasehold system in this Parliament, we won’t leave existing leaseholders behind.
Even stronger rules from 1 November 2027
From 1 November 2027, leaseholders will automatically get clearer information about the charges they are being asked to pay – whether their building is owned by a private landlord, council or housing association.
This includes detailed information about the building insurance they help pay for, along with stronger protections against excessive or unreasonable fees for arranging and managing that insurance. Leaseholders will also receive clearly set out information on admin fees they could face.
Private landlords will have extra requirements. They will have to use simpler, standardised service charge demand forms and provide financial accounts and annual reports – giving leaseholders clearer information about what they are being charged and how their money is being spent.
Clearer service charge reporting extended to social housing from 1 November 2028
From 1 November 2028, councils and housing associations will also have to provide their leaseholders with the new standardised service charge demand forms, financial accounts and annual reports.
Plans form part of a wider leasehold shake-up
These changes bring in key protections from the Leasehold and Freehold Reform Act 2024, giving leaseholders more information and greater power over the costs they are asked to pay.
Further reforms are also planned through the Commonhold and Leasehold Reform Bill, which is due to be introduced in Parliament before Christmas 2026.
Chief Executive of the Leasehold Advisory Service, Kion Ahadi said:
Service charges are the most common issue leaseholders contact us about. We welcome these changes as an important step forward in helping people understand what they are paying for and challenge costs they believe are unfair.
Leaseholders need clear information about how their money is being spent and a fair opportunity to raise concerns.
Better access to that information and stronger protection from landlords’ legal bills will give them more confidence to hold their landlord to account.