Regulations give England’s leaseholders stronger rights to challenge service charges

Five sets of regulations giving over three million leaseholders in England stronger rights to challenge service charges were laid in Parliament on Thursday, the government said.

Subject to Parliamentary approval, the rules start in stages on 1 April 2027, 1 November 2027 and 1 November 2028.

The reforms do not cap service charges, because buildings still need to be maintained, repaired and insured, the housing ministry said in its explainer for leaseholders.

A separate Bill, due before Christmas 2026, would cap existing ground rents at £250, a limit that is not part of these regulations.

From that date leaseholders gain powers to demand information about their service charges, including from previous years, and landlords will need a good reason to refuse.

Leaseholders will also get stronger protection from paying a landlord’s legal costs when they challenge a charge.

Landlords will need court or tribunal approval to pass on any legal costs, and leaseholders will gain a new right to claw back their own legal expenses.

A sixth set of regulations, setting out how the litigation cost reforms will work, is due before the end of 2026 and will also commence on 1 April 2027.

From 1 November 2027, leaseholders will automatically receive clearer information about charges, whether the landlord is a private owner, a council or a housing association.

That includes detailed information on the building insurance they help pay for, and stronger protection against excessive or unreasonable fees for arranging and managing it.

Private landlords must also use simpler, standardised service charge demand forms and provide financial accounts and annual reports from the same date.

Councils and housing associations must provide the standardised demands, accounts and annual reports from 1 November 2028, an extra 12 months to adapt their accounting systems.

Their leaseholders still receive the 1 November 2027 insurance and administration charge changes, the housing ministry said.

Housing minister Matthew Pennycook said “rapidly escalating and frequently opaque service charges are placing huge financial strain on hard-pressed leaseholders across the country.”

Kion Ahadi, chief executive of the Leasehold Advisory Service, said: “Service charges are the most common issue leaseholders contact us about.”

Prime Minister Andy Burnham said it was “simply wrong that millions of leaseholders can be hit with unfair charges, then face another bill just for challenging them.”

The measures put into effect protections from the Leasehold and Freehold Reform Act 2024, following consultations in 2024 and 2025.

The latest consultation ran for 12 weeks from 4 July to 26 September 2025 and covered service charge and building insurance transparency and unjustified litigation costs.

Under the Act’s service charge provisions, damages for a landlord’s failure to meet an information request may not exceed £5,000.

The Commonhold and Leasehold Reform Bill, due in Parliament before Christmas 2026, would also make it easier for existing leaseholders to move to commonhold.