Section 20 consultation, step by step

Section 20 consultation is the process a landlord must follow before major works, or a long contract, that will cost leaseholders more than a set amount. If it is missed, what the landlord can recover from each leaseholder may be capped at £250 for works, or £100 a year for a long-term contract.

What is Section 20 consultation?

Section 20 of the Landlord and Tenant Act 1985 requires consultation before major works or long-term contracts. It gives leaseholders a say before large bills are committed. The detailed steps are set out in the Service Charges (Consultation Requirements) (England) Regulations 2003.

When does it apply?

• Works that will cost any one leaseholder more than £250.
• A contract lasting over 12 months that will cost any one leaseholder more than £100 a year.

The limits are per leaseholder, not for the whole building. In a block of 10 flats where the works share equally, a job costing more than £2,500 in total would pass £250 per flat. (This is an illustration, not a fixed rule. Your lease sets how each flat's share is worked out.)

What are the stages for major works?

1. Notice of intention. Describes the works and invites comments and contractor nominations for 30 days.
2. Estimates. At least two estimates are shared, with a further 30 days for comments.
3. Reasons. If the contract is not given to a nominated contractor or the lowest estimate, the reasons must be given.

Leaseholders can read the notices, send written comments and nominate a contractor. The landlord must have regard to what leaseholders say.

What can you do at each stage?

• At the notice of intention: Ask what problem the works solve, and whether a survey or specification is available. Suggest a contractor if you know a reputable one.
• At the estimates stage: Compare the estimates. Ask why one was chosen over another, and what is included in the price.
• After the contract is awarded: Keep the notices. If the final cost is much higher than the estimate, ask for an explanation in writing.

What if consultation is missed?

Recovery is capped at £250 per leaseholder unless the tribunal grants dispensation. Urgent works, such as an emergency roof repair, are the usual reason to seek it. Dispensation is a decision for the First-tier Tribunal, so a landlord cannot simply decide it for itself.

Does it cover every kind of bill?

No. Routine items, such as day-to-day cleaning or a small repair under the limit, do not need Section 20 consultation. Your lease and the service charge accounts show what is charged. If you are not sure whether a job needs consultation, ask your managing agent to explain which limit applies and why.

What changes are proposed?

Government has proposed raising the limits to £600 for works and £300 for long-term contracts. This is a proposal, not yet law. Until the law changes, the current limits of £250 and £100 apply.

Frequently asked questions

Does Section 20 apply to emergency repairs? The rules still apply in principle. Where the work cannot wait, a landlord can ask the tribunal for dispensation, either before or after the work.

Can I suggest my own contractor? Yes. During the first 30-day period you can nominate a contractor, and the landlord must try to get an estimate from them.

Will I see the estimates? Yes. The estimates stage is there so that leaseholders can see them and comment.

Can I still challenge the cost after consultation? Yes. Consultation is separate from whether a cost is reasonable. See our guide on challenging a service charge.

Where can I read the rules? The Act and the 2003 Regulations are on legislation.gov.uk. The sources are listed at the foot of this page.