New flat service charge rules for the UK coming in 2027
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, the Ministry of Housing said on Thursday (12 November).
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, the Ministry 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,” said Prime Minister Andy Burnham.
“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.”
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.
