Service Charges Are Getting More Transparent

If you own a leasehold flat, there's a good chance you've opened a service charge bill and thought, "what on earth is this for?" You're not alone. Unclear demands and surprise costs are among the biggest bugbears for leaseholders.

The good news is that change is on the way. On 15 July 2026 the government confirmed a package of measures to make service charges clearer, and to make it fairer to challenge them when something doesn't look right. Here's what's coming for leaseholders in England.

What's changing

The changes come from the Leasehold and Freehold Reform Act 2024. After consulting leaseholders, landlords and the industry, the government has confirmed four key changes:

• An annual report. Landlords will have to give leaseholders a yearly report on the health and condition of their building, including any plans for major works. No more nasty surprises when a big repair bill lands out of nowhere (or at least, fewer of them).
• A new standard service charge demand form. Every demand will set out what you're paying and what it covers, in a consistent format with a budget, so it's easier to see what you're being charged for and spot anything that doesn't add up.
• Fairer legal costs in disputes. If you end up in a dispute with your landlord, for example over service charges, the landlord will need a court or tribunal's approval before putting its legal costs through the service charge, and you'll be able to apply to recover your own costs in some cases. At the moment, the fear of paying both sides' legal fees puts a lot of leaseholders off challenging anything at all.
• A right to building information. Landlords will have to hand over certain information on request, such as fire safety information and invoices for maintenance work, going back up to six years, within set time limits.

When will it happen?

The government says the changes will come into force as soon as possible from 2027. They need secondary legislation to switch them on, and the government has said it will use at least five statutory instruments, to be laid before Parliament later in 2026. Private landlords will get 12 months' notice of most of the new requirements.

So, nothing changes overnight. But if you're a leaseholder, 2027 should be the year your service charge paperwork starts to look a lot more helpful.

These changes are also part of a bigger picture. The forthcoming Commonhold and Leasehold Reform Bill is set to ban leasehold for most new flats and cap ground rents at £250, and the government has consulted on making lease extensions and freehold purchases cheaper. Our catch-up on where leasehold reform has got to explains what's in force and what isn't, and our piece on lease extensions covers whether to extend now or wait.

What does this mean for you?

• Already a leaseholder? Keep hold of your service charge demands, accounts and any correspondence with your managing agent. Once the new rules are in, you'll have more information to compare against, and more confidence to question anything that looks off.
• Buying a flat? Service charges are one of the most important things to look at before you commit. We'll always review the service charge history, budgets and any planned major works as part of your purchase, so you know what you're signing up for. Our guide to freehold vs leasehold covers the other checks.
• Selling a flat? Buyers (and their lawyers) are asking more questions about service charges than ever. Getting the management pack and service charge information together early can stop your sale stalling. Our guide to how long conveyancing takes explains where leasehold sales tend to slow down.

The bottom line

Clearer bills, better information and a fairer playing field when things go wrong. It's not the end of leasehold just yet, but it's a genuinely useful step for anyone paying a service charge.

If you're buying or selling a leasehold property and want someone to make sense of the service charges for you, send the team at Bonsai Law a message. Our fees page sets out what we charge, and we work with clients anywhere in England and Wales through online conveyancing.

Sources

• MHCLG, Stronger leasehold protections in crackdown on hidden fees (15 July 2026)
• MHCLG, Government response to the Strengthening leaseholder protections over charges and services consultation (15 July 2026)
• HomeOwners Alliance, Leasehold reform latest news 2026 (updated 21 October 2026)

This reflects the position on 3 November 2026. The detail will be set by regulations that are not yet made, so take advice on your own lease before you act.