Leasehold service charges explained: rights, rules and how to challenge

Service charges are a regular source of dispute in leasehold homes, especially flats. The starting point is the lease itself, because it sets out how the service charge is organised and what can be charged. From there, the current law gives leaseholders rights to information, consultation on some larger bills, and a route to challenge charges at tribunal in some cases. This article separates current law from reforms that have been passed but are not yet in force.

What service charges cover

Your lease is the key document. It sets out how the service charge is organised and what can be charged, so whether a cost is payable depends first on the wording of the lease rather than on a general rule stated here.

Your right to information

If you pay a service charge, you can ask for a written summary showing how the charge is worked out and what it is spent on, and you can inspect supporting paperwork such as receipts. Under section 21 of the Landlord and Tenant Act 1985, the landlord must supply the written summary within 6 months of the end of the accounting period it covers. GOV.UK says the landlord must provide service-charge information, and section 25 of the Landlord and Tenant Act 1985 makes failure without reasonable excuse to comply with duties under sections 21, 22 or 23 a summary offence punishable by a fine up to level 4 on the standard scale. Separately, section 21B requires every service-charge demand to be accompanied by a summary of tenants’ rights and obligations, and a tenant may withhold payment if that summary is missing.

Major works and Section 20

You have the right to be consulted if your contribution will be more than £250 for planned work, or more than £100 a year for work and services lasting more than 12 months. This is usually referred to as a Section 20 consultation. Under section 20 of the Landlord and Tenant Act 1985, if the consultation requirements are not met, and there is no tribunal dispensation, the relevant contributions payable by tenants are limited.

How to challenge a charge

You may be able to apply to a tribunal if you think a service charge is unreasonable, the standard of work is unsatisfactory, or you do not think you should be paying it at all. GOV.UK also says there are limits: you cannot apply if you agreed the charge, if the dispute is already being dealt with elsewhere, or if you pay a fixed charge.

The 2024 reforms: what is in force

The Leasehold and Freehold Reform Act 2024 would change the service-charge rules by replacing sections 21, 21A and 21B with a new standardised demand regime, and by replacing the current section 25 criminal offence with a tribunal enforcement route with damages capped at £5,000. But those service-charge changes were not in force at Royal Assent, and legislation.gov.uk revision data dated 29 June 2026 lists them as changes yet to be applied. On that basis, sections 21, 21B and 25 of the Landlord and Tenant Act 1985 remain the current law.

Key facts

Source: GOV.UK - Leasehold property: service charges — Guidance checked August 2026

Source: GOV.UK - Leasehold property: service charges — Guidance checked August 2026

Source: GOV.UK - Leasehold property: service charges — Guidance checked August 2026

Source: legislation.gov.uk - Landlord and Tenant Act 1985 s.25 — Guidance checked August 2026