The leasehold shake-up giving owners new rights over service charges
On 15 July 2026, the government confirmed the next phase of its leasehold reform programme, setting out a package of service charge transparency measures that will be implemented from 2027 under the Leasehold and Freehold Reform Act 2024. That legislation received Royal Assent in May 2024 and is already on the statute book. The measures announced in July represent the government's confirmation of how specific provisions within it will be applied in practice. Alongside the confirmed measures, two separate consultations were launched on enfranchisement reform. Those consultations are not yet decided policy, and the distinction matters for anyone currently navigating a leasehold situation.
What is confirmed for 2027
The confirmed measures, to be implemented as soon as possible with 2027 as the target, cover three practical areas.
The first is an annual building report. Landlords will be required to provide leaseholders with a mandatory annual report setting out the condition of the building and any planned major works. This gives leaseholders advance sight of significant expenditure before it is committed, allowing time to scrutinise costs and query anything that does not appear reasonable.
The second is a standardised service charge demand form. Currently, service charge demands can vary significantly in what they include and how costs are broken down. The standardised form will require information to be presented consistently, making it easier for leaseholders to compare costs, identify anomalies, and challenge anything that requires explanation.
The third is an extended right to information. Leaseholders will be able to request supporting documentation including fire safety documents and maintenance invoices covering up to six years. Landlords will be required to respond within defined timescales. This right to look back over several years of expenditure is a meaningful change from the current position, where obtaining historical documentation can be difficult.
What is under consultation and not yet decided
On the same day, two public consultations were launched to explore further enfranchisement reforms. The first covers plans to set specific valuation rates in regulations, which would reduce the disputes over pricing that currently make lease extension and freehold purchase an uncertain and expensive process for many leaseholders. The second covers the detail of the limited exceptions under which a leaseholder may still owe their landlord a fixed contribution toward costs - the general principle that each party pays their own legal, valuation, and administrative costs is already settled by the 2024 Act, and the consultation is refining how the exceptions to that principle will work in practice.
These are consultations, not confirmed policy. Their outcomes will be determined by the government following a review of the responses received, and the timescale for that has not been announced.
The Commonhold and Leasehold Reform Bill
The government has confirmed that the measures set out in July will complement a forthcoming Commonhold and Leasehold Reform Bill, which is described in the announcement as upcoming. That bill is expected to include a ban on leasehold for new flats, a cap on ground rents at £250 per year, and provisions to make the transition from leasehold to commonhold more accessible for existing flat owners. The bill had not received Royal Assent as of the date of the July announcement and should not be treated as confirmed law until it does.
What this means in practice for leaseholders now
The confirmed 2027 measures are the most immediately actionable part of this package. For leaseholders who currently receive service charge demands that are difficult to interrogate, the standardised demand form and the right to request up to six years of supporting documentation represent a material improvement in their ability to assess whether they are being charged fairly. The annual building report gives advance warning of major works programmes rather than the surprise demands that have caused difficulty for many leaseholders.
None of these rights are in force yet. The 2027 implementation timeline gives landlords and managing agents a preparation period.
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