Three million leaseholders to gain greater protections

Over three million leaseholders will soon gain powers to demand information about their service charges, making it easier to see what they are paying for and why, the government says.

From 1 April 2027, leaseholders will be able to ask for information from previous years and landlords will need a good reason to refuse to provide it, giving people a clearer picture of how their building is managed, maintained, repaired and insured.

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, the government says.

Landlords will need court or tribunal approval to pass on any legal costs to leaseholders, leaseholders will get the new right to claw back their own legal expenses too.

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 MP 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.”

Additionally, 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.

And private landlords 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.

Councils and housing associations will also have to provide their leaseholders with the new standardised service charge demand forms, financial accounts and annual reports.

The 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.”