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 come within statutory regulation for the first time
- Leaseholders must receive a prescribed 'future demand notice' where costs will be demanded later. This notice replaces the current 18-month notice and may limit what can be charged
- 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 a court or tribunal orders it. Leaseholders can ask for their own legal costs to be paid by the landlord. 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, late-payment terms in the lease cannot be enforced
- Landlords must provide annual service charge accounts and reports
- Insurance-related commissions and fees can only be charged to leaseholders where they meet rules on 'permitted insurance payments'. Leaseholders will be able to recover amounts charged in breach
- 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 enforcement rules 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.
