Timetable set for service charge and legal costs reforms

The government has set a timetable for making it easier for leaseholders in England to see what their landlord is charging them and why. These changes begin on 1 April 2027.

The changes form part of the Leasehold and Freehold Reform Act 2024. They will be introduced in stages, with further requirements starting in November 2027 and November 2028. The timetable covers service charge information, buildings insurance, administration charges and legal costs.

Requesting information

Leaseholders will have a new right to request certain information about service charges and the management of their building.

This will include access to information such as maintenance invoices and fire safety documents, going back up to 6 years.

When landlords bill you for costs later

Landlords generally have 18 months from incurring a service charge cost to either send you a bill or notify you in writing that you will need to contribute. If they do neither within that period, they generally cannot require you to pay that cost through a variable service charge – a charge that changes according to the costs involved.

The reforms will introduce a standard notice for landlords to use when they notify you that they will bill you later. It will explain that costs have been incurred, that you will need to contribute and when you can expect the bill.

Legal costs in disputes

Leaseholders will also gain a new right to ask a court or tribunal to order their landlord to pay some or all of their legal costs in certain types of disputes.

Landlords will generally need court or tribunal approval before passing their legal costs on to leaseholders through variable service charges or administration charges, subject to exceptions.

The new legal-cost rules will not apply to proceedings issued before 1 April 2027.

Clearer service charge bills and information

New requirements for service charge demands, accounts and annual reports will start to take effect for landlords other than social landlords.

These include standard service charge demands and an annual report with information about the building’s condition and planned major works.

The new accounts requirements will apply where costs are shared through variable service charges payable for at least 4 homes.

Buildings insurance

Landlords will have to provide information about buildings insurance. There will also be limits on which payments for arranging or managing insurance they can pass on through variable service charges.

These changes do not generally remove your existing obligation to contribute to the cost of buildings insurance.

Administration charges

Both private and social landlords will have to publish a list of administration charges they charge or propose to charge. This will show the amounts or explain how they are calculated.

The new requirements for service charge demands, accounts and annual reports will extend to social landlords. For this timetable, that category includes social housing providers and certain joint-venture landlords.

This later date applies to those particular requirements and their associated enforcement provisions. It does not postpone the whole reform package for leaseholders with social landlords.

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.

You can continue to use your existing rights to request service charge information and challenge unreasonable charges. The rights available depend on the type of charge and your circumstances.

If you are considering legal action, seek advice about your circumstances, including any deadlines and potential costs, before deciding when to apply.

Read our guidance on service charges and administration charges, or our leasehold reform updates.