The Leasehold and Freehold Reform Act 2024 (Commencement No. 4 and Saving Provision) (England) Regulations 2026 (SI 2026/1128), made on 25 October 2026, has set when the service charge reforms in Part 4 of the Act take effect in England. The reforms will come in over three stages between April 2027 and November 2028.
Each change applies to existing leases as well as new ones from the date it takes effect. The only exception is the litigation costs changes, which do not apply to proceedings issued before 1 April 2027.
The commencement regulations set the dates only. How the reforms work in practice will depend on further regulations from the Government, including prescribed forms, the information leaseholders must receive, and the rules on permitted insurance payments. The Government has not yet published these regulations or any accompanying guidance.
6 November 2026
The Government can begin making the detailed regulations. Nothing changes yet for leaseholders, landlords or managing agents.
1 April 2027
- Fixed service charges are brought within the statutory definition of a service charge, so the new information, demand and annual report rules will apply to them as each takes effect. The reasonableness and consultation protections continue to apply only to variable service charges
- Where costs are demanded more than 18 months after they were incurred, landlords will need to have given leaseholders a prescribed 'future demand notice'. This replaces the current 18-month notice, and regulations may cap what can be charged at the figures given in it
- Leaseholders gain a new right to request information about their service charges
- Landlords can no longer recover their legal costs through service charges or administration charges unless they apply to a court or tribunal and it orders otherwise. Leaseholders will be able to apply for an order that the landlord pays some or all of their legal costs, in types of proceedings to be set out in further regulations. These changes do not apply to proceedings issued before 1 April 2027.
1 November 2027
- Service charge demands must follow a standard format. If a demand doesn’t comply, the lease’s non-payment and late-payment terms do not apply to that charge
- Where costs are shared between four or more dwellings, landlords must provide an annual statement of account, with an accountant’s report, within six months of the end of each accounting period. Landlords must also provide an annual service charge report within one month of the end of each accounting period
- Commissions, fees and other payments for arranging or managing insurance can only be passed on to leaseholders through variable service charges if they are 'permitted insurance payments' under regulations. Leaseholders can apply to the tribunal for repayment of amounts charged in breach, and for damages
- Landlords must give leaseholders prescribed information about the buildings insurance each time a policy is bought or renewed
- Landlords must publish a schedule of administration charges. A charge can only be made if it has been on the schedule for at least 28 days.
1 November 2028
The demand, accounts and annual report rules, and their enforcement, extend to social landlords and certain joint venture arrangements involving them.
What Happens Next
Further regulations and Government guidance are needed before members can put these changes into practice.
The Property Institute (TPI) will update this page as each set of regulations is published and will support with guidance for members once the detail is known.
For further information on LAFRA 2024 and the latest provisions, please read more HERE.
