Leaseholders are to receive clearer information about service charges and stronger protections against unfair costs under reforms confirmed by the government.
The measures are part of the Leasehold and Freehold Reform Act 2024 and are intended to give leaseholders more control over their homes and money. Ministers said the changes would make it easier to see what charges cover, understand how service charge money is spent and challenge unfair costs.
Following consultation with leaseholders, landlords and industry groups, the government said it would proceed with measures expected to come into force as soon as possible from 2027.
Landlords will be required to provide an annual report giving leaseholders information on the health and condition of their building and plans for major works. A new service charge demand form will set out detailed information about payments and what they cover.
In disputes, including those over service charges, new rules will protect leaseholders from automatically bearing their landlord’s legal bills without challenge. Leaseholders will also be able to apply to recover their own costs.
Landlords will have to provide certain building information on request, such as fire safety information and maintenance invoices, going back up to six years and within clear response timeframes. The government has also launched two consultations on enfranchisement reforms, including valuation rates and landlord fees when leaseholders seek to extend a lease or buy a freehold.