How to Challenge Your Service Charge in 2026 — A Step-by-Step Guide for UK Leaseholders

Before you challenge anything, it helps to know exactly what the law gives you. The Landlord and Tenant Act 1985 is your primary tool, and it is powerful.

Section 21 gives you the right to request a written summary of service charge costs. Your landlord or managing agent must provide this within one month of your request, or six months from the end of the accounting year — whichever is later.

Section 22 goes further, giving you the right to inspect the actual receipts, invoices, and supporting documents behind those costs. You can do this within six months of receiving the Section 21 summary, and the landlord must make the documents available within 21 days.

Section 20 requires your landlord to consult you before carrying out major works costing more than £250 per flat. If they failed to consult properly, their ability to recover those costs through the service charge is significantly limited.

Not all overcharges are obvious. The most common ones to look for are:

Hidden insurance commissions

Your managing agent may arrange buildings insurance and may receive a share of broker commission. FCA work found that, in arrangements it reviewed, freeholders received up to 30% of broker commission and property managing agents up to 50%. That supports asking for evidence; it does not prove the position in your building. Further LAFRA insurance-transparency measures have been announced but are not all in force.

Inflated management fees

Management fees vary with the building, services, geography and responsibilities. A high percentage or multiple management layers can justify questions, but no unsupported universal percentage proves that a fee is unreasonable. Ask for the management agreement, scope and evidence of the work performed.

Phantom maintenance charges

Where a qualifying section 22 inspection right arises, the supporting documents may help test charges for cleaning, repairs or surveys. Missing evidence justifies focused questions; it does not by itself prove that a cost was not incurred or is legally irrecoverable.

Reserve fund irregularities

Sinking funds and reserve funds must be held in a separate interest-bearing account. If your managing agent is not doing this, or if the fund appears disproportionately large relative to the building’s planned maintenance, this is worth scrutinising.

Start by writing to your managing agent or landlord requesting a summary of service charge costs under Section 21 of the Landlord and Tenant Act 1985. Keep your letter brief and factual — you do not need to explain why you are asking.

Send the letter by email and follow up with a printed copy by recorded post. Keep copies of everything — they may become important if the matter escalates.

Once you receive the summary, you have six months to request the underlying documents under Section 22. Write again to request access to all receipts, invoices, and contractor records supporting the summary you received.

Once you have the accounts and supporting documents, go through them systematically. For each line item, ask three questions:

• Is this charge permitted by your lease? Your lease sets out exactly what can and cannot be charged. Any cost not covered by the lease schedule cannot be recovered through the service charge.
• Is the amount reasonable? Compare costs against market rates. A cleaning contract at £800/month for a 20-flat block with no concierge should raise questions. Obtain alternative quotes if necessary.
• Can it be evidenced? Every charge should have a corresponding invoice or receipt. If it does not, it is potentially unjustified.

It is worth doing this for at least three years of accounts, not just the most recent year. Overcharges tend to be systematic — the same inflated insurance commission year after year, for example — and three years of evidence is significantly more compelling than one.

Once you have identified specific overcharges with supporting evidence, write a formal challenge letter to your managing agent. A well-written challenge letter does several things:

• Identifies each disputed charge with the specific line item and amount
• Explains why you consider each charge unjustified, citing Section 19 of the LTA 1985
• References your lease schedule to show the charge is not permitted, where applicable
• States the total amount disputed and requests a credit against future charges or a direct refund
• Sets a reasonable deadline for response — typically 28 days
• Notes that you reserve the right to apply to the First-tier Tribunal if the matter is not resolved

Tone matters. Keep the letter factual, specific, and professional. Managing agents respond far better to a documented challenge citing specific legal provisions than to a general complaint about costs being too high.

A well-documented letter gives the recipient a clear opportunity to answer each point, correct an error or provide missing evidence. Outcomes vary and LeaseScan does not promise settlement, repayment or avoidance of proceedings.

If your managing agent fails to respond within the deadline, or responds but refuses to address your specific points, you have two main routes forward.

The First-tier Tribunal (Property Chamber)

The First-tier Tribunal can determine whether service charges are reasonable and payable. As of July 2026, the listed fee for an application concerning liability for a service charge is £114 and the hearing fee is £227, subject to fee changes and Help with Fees. Representation is not compulsory, but obtain advice where the issues, sums or risks justify it.

LAFRA 2024 contains reforms intended to rebalance litigation-cost recovery, but commencement matters. Check the rules in force when proceedings are contemplated and obtain advice on costs exposure rather than assuming the future regime already applies.

Right to Manage

If the issues are systemic rather than isolated, you and your fellow leaseholders may consider exercising your Right to Manage — taking over the management of the building entirely. This requires the support of more than 50% of qualifying tenants and removes the managing agent from the equation altogether.

How LAFRA 2024 may strengthen your position

The Leasehold and Freehold Reform Act 2024 contains important reforms, but as at 24 July 2026 many transparency measures still await commencement or implementation. Treat the following as the direction of reform, not universal duties already in force.

• Insurance transparency is due to be strengthened through new disclosure requirements after implementation and notice.
• Legal cost protections are due to be rebalanced, but the applicable commencement position must be checked before relying on them.
• Transparency requirements are being strengthened, including standardised demand formats and mandatory annual reports that will make overcharges easier to identify.
• Document access rights are due to be extended; the government said in July 2026 that it plans to commence the new information-on-request measure as soon as possible in 2027.

For a challenge made now, rely on the lease and law currently in force. Label future reforms separately.

When to get professional help

You can challenge your service charge yourself — and many leaseholders do successfully. But there are situations where professional support makes a significant difference:

• When the accounts are complex and span multiple years
• When the overcharges involve insurance commissions that require FCA benchmarking
• When your managing agent is unresponsive or disputes your analysis
• When the amounts involved justify the investment in a professional audit

A professional audit can organise the documents, compare charges with the lease and relevant evidence, and explain which points appear supported, disputed or unresolved. It is not a substitute for legal advice or tribunal preparation.

At LeaseScan, our Standard Audit costs £295 and takes 2–3 weeks. We do not promise a particular saving. The report identifies charges that appear unsupported, inconsistent with the lease or in need of further explanation; the landlord may provide more evidence, agree an adjustment or dispute the finding.