Strengthening leaseholder protections over charges & services

On 4 July 2025 the government published a consultation which looks at implementing certain aspects of the Leasehold and Freehold Reform Act 2024 (LFRA) as well as other proposed reforms to residential leasehold charges and services.

Measures covered by the consultation include:

Transparency on fees and charges - measures under the LFRA

The consultation seeks views on the information to be included in the new annual report which landlords will be required to provide to leaseholders, as well as potential exemptions to the requirement to provide the report (the government's starting point being there should be no exemptions). It is also seeking views on a new standardised service charge demand form and the minimum level of information and detail that should be provided in this document.

The LFRA allows for a new 'future demand notice' which requires landlords to 'notify leaseholders of future service charge costs' and also an enhanced regime in relation to the information landlords must provide to tenants on request. The consultation is seeking views on these measures.

The above measures may also apply to certain social housing tenants and the consultation looks at how these may be implemented.

Views are sought on the provision of more information to tenants about insurance costs (which is separate to the consultation on insurance commissions and fees to which the government responded on 11 July 2025) and also the form and content of a new statutory written statement of the annual accounts.  The consultation also considers the measures in the LFRA which seek to 'rebalance the litigation costs regime'.

The consultation also includes examples of proposed new forms and templates in relation to the above.

New additional service charge reforms

The government has taken the view that the LFRA reforms do not go far enough.  Further to previous government announcements the consultation also considers:

• Reforms to the consultation process under section 20 of the Landlord and Tenant Act 1985. This includes potentially raising the level at which a section 20 consultation is required to £600 for major works per leaseholder and £300 for Qualifying Long Term Agreements per leaseholder.

• Whether further regulation is needed in relation to the way service charge funds are held and managed.

• Mandating the use of reserve funds for new and potentially also existing leases.

• Whether further protections are needed for those paying fixed service charges.

• Options to allow for greater use of electronic communication for correspondence and documents.

• Reviewing powers to appoint a manager or replace a managing agent.

• Regulation of managing agents. In the consultation the government states it 'believes there is an overwhelming case to introduce mandatory professional qualifications for managing agents in England now'. The consultation considers the requirements for a new regulatory regime.  The government notes that this consultation is 'not the final step in the regulation of managing agents' and that it will respond to the July 2019 Report on the Regulation of Property Agents in due course.

The consultation runs from 4 July 2025 for 12 weeks and closes on 26 September 2025.

In the executive summary the government also reiterates its commitment to commonhold and to publishing an 'ambitious draft' Leasehold and Commonhold Reform Bill later this year.