The government confirmed on 15 July 2026 that it will bring in clearer service charge information and new legal costs protections for leaseholders, and launched two consultations on enfranchisement.
Key facts
- Who: Leaseholders who pay service charges, landlords who issue them, and leaseholders considering a lease extension or freehold purchase
- From: Announced 15 July 2026; measures to come into force as soon as possible from 2027
- Source: Stronger leasehold protections in crackdown on hidden fees
What the government has confirmed
Following consultation with leaseholders, landlords and industry groups, the government says it will proceed with a series of measures under the Leasehold and Freehold Reform Act 2024. The aim is to make it easier to see what leaseholders are charged for, how service charges are spent, and how to challenge unfair costs.
The changes, to come into force as soon as possible from 2027, include:
- An annual report. Landlords will have to give leaseholders a clear picture of the health and condition of their building and plans for major works.
- A new service charge demand form. It will set out detailed information about service charge payments and what they cover.
- New rules on legal costs in disputes. Leaseholders will be protected from paying their landlord's legal bills without challenge, and will be able to apply to recover their own costs.
- Building information on request. Landlords will have to provide certain information, such as fire safety information and invoices for maintenance works, going back up to six years, with clear timeframes for responses.
Enfranchisement consultations
Two public consultations launched on the same day to drive forward enfranchisement reforms, the next step in making it easier for leaseholders to extend a lease or buy a freehold. Together they explore two plans:
- setting specific valuation rates in regulations, to reduce disputes over cost and give leaseholders more certainty about the price of enfranchising
- protecting leaseholders from covering their landlord's solicitor, valuer or administrative fees during the process
The 2024 Act sets a new method for calculating the price of a statutory lease extension or freehold purchase. It removes the requirement to pay marriage value, caps the treatment of ground rents in the valuation at 0.1% of the freehold value, and allows the government to prescribe the deferment and capitalisation rates. It also requires each party to bear their own process costs, with exceptions.
The government says these measures will complement the upcoming Commonhold and Leasehold Reform Bill, which it says will ban leasehold for new flats and cap ground rents at £250.
What this means for leaseholders
The new service charge and legal costs rules are due to come into force as soon as possible from 2027.
If you are in a dispute over service charges, or are planning a lease extension or freehold purchase, it is sensible to keep your demands, invoices and correspondence and to get advice on your own position. The plans on valuation rates and process costs are still being consulted on.
Sources
- GOV.UK, Stronger leasehold protections in crackdown on hidden fees, 15 July 2026