Social landlords must improve service charge transparency under new leasehold reforms

Councils and housing associations will have to proactively provide their tenants with greater transparency around service charges starting next autumn if new rules are approved by parliament.

Yesterday (Thursday), the government introduced secondary legislation to parliament which would mean tenants of registered providers and private landlords will automatically receive clearer information about service charges. Subject to approval, these new regulations would be introduced from 1 November 2027.

Private landlords will also be required to provide residents with new standardised service charge demand forms, financial accounts and annual reports. These requirements will be brought in a year later on 1 November 2028 for social landlords.

The reforms, designed to help tenants challenge unfair service charges, are part of a wider leasehold shake-up to bring in key protections from the Freehold Reform Act 2024.

From 1 April 2027, leaseholders will be able to demand information about their current service charges and those from previous years, with landlords having to justify refusal.

They will also be protected from having to foot their landlord’s legal bill when they challenge a charge, regardless of the outcome, and get a new right to be compensated for their own legal expenses.

Prime minister Andy Burnham said the new measures aim to “end the feudal leasehold system for good”.

The government is planning further reforms through the Commonhold and Leasehold Reform Bill, which is due to be introduced in Parliament before Christmas 2026.