The law behind your service charge, in plain English
Your lease sets the rules for your building. These laws sit on top of every lease in England.
In force Not yet in force Proposed
Service charges and money
| Law | What it means for you | Status |
|---|---|---|
| Landlord and Tenant Act 1985, s19 | Costs count only if reasonably incurred, and works must be of a reasonable standard. | In force |
| LTA 1985, s20 | Consultation before works costing any leaseholder over £250, or long-term contracts costing any leaseholder over £100 a year. | In force |
| LTA 1985, s20B | Costs must be demanded, or notified in writing, within 18 months of being incurred. | In force |
| LTA 1985, ss21, 21B and 22 | You can ask for a summary of costs and inspect invoices. Every demand must include a summary of your rights. | In force |
| LTA 1985, s27A | Either side can ask the First-tier Tribunal whether a charge is payable and reasonable. | In force |
| Landlord and Tenant Act 1987, s42 | Service charge money is held on trust for leaseholders. | In force |
| Commonhold and Leasehold Reform Act 2002, Sch 11 | Administration charges must be reasonable and can be challenged. | In force |
Management and control
| Law | What it means for you | Status |
|---|---|---|
| CLRA 2002, Part 2 | Right to Manage without proving fault. Since 3 March 2025, up to 50% non-residential floor space allowed. | In force |
| LTA 1987, Part II | The tribunal can appoint a manager where management has seriously failed. | In force |
| LTA 1987, ss47 and 48 | Demands must show the landlord’s name and address, and an address for notices in England and Wales. | In force |
| RICS Service Charge Residential Management Code, 4th edition | Approved by the Secretary of State and effective from 7 April 2026. Courts and tribunals can take it into account. | In force |
Building and fire safety
| Law | What it means for you | Status |
|---|---|---|
| Regulatory Reform (Fire Safety) Order 2005 | The Responsible Person must assess fire risk in common parts and act on it. | In force |
| Fire Safety Act 2021; Fire Safety (England) Regulations 2022 | Structure, external walls and flat front doors are in scope. Residents must get fire safety information; fire door checks apply above 11m. | In force |
| Building Safety Act 2022 | Higher-risk buildings must be registered and have a safety case. Qualifying leaseholders are protected from most historic remediation costs. | In force |
| Remediation deadlines | Unsafe cladding to be fixed by the end of 2029 (18m+) and 2031 (11–18m), with criminal penalties. | Proposed |
Companies and residents
| Law | What it means for you | Status |
|---|---|---|
| Companies Act 2006 | RMC and RTM directors have legal duties; accounts and a confirmation statement must be filed every year. | In force |
| LTA 1985, s29 | A recognised tenants’ association can be consulted on works and on appointing an agent. | In force |
| Redress scheme membership | Managing agents in England must belong to an approved redress scheme. We are members of The Property Ombudsman. | In force |
What’s coming
| Law | What it means for you | Status |
|---|---|---|
| Leasehold and Freehold Reform Act 2024: transparency | Standard demand forms, an annual report and published administration charges; expected from 2027. | Not yet in force |
| LFRA 2024, Part 5 | Rights for homeowners on private estates to information and to challenge estate charges. | Not yet in force |
| Section 20 thresholds | Proposed rise to £600 for works and £300 for long-term contracts. | Proposed |
| Managing agent qualifications | Level 4 proposed as the minimum for leasehold block managers. | Proposed |
General information, not legal advice. For free independent advice, contact LEASE, the Leasehold Advisory Service. Last reviewed 3 October 2026.
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