Some requirements for residential service charge demands are already in force, while several further transparency reforms in the Leasehold and Freehold Reform Act 2024 are still awaiting implementation. This guide explains the difference so that leaseholders do not rely on a future rule as though it already applies.
A specific statutory defect can affect whether a service charge is presently payable. For example, Section 21B of the Landlord and Tenant Act 1985 generally allows a tenant to withhold a variable service charge when the prescribed summary of rights and obligations has not accompanied the demand, until that requirement is met. That does not mean every missing detail makes the entire demand unenforceable. Do not stop paying solely because of a general checklist.
Existing provisions of the Landlord and Tenant Act 1985 remain central. They cover reasonableness, consultation, information requests, time limits and prescribed information accompanying demands. The lease itself also matters because the landlord must follow its charging machinery.
The Leasehold and Freehold Reform Act 2024 creates further measures, including standardised demand forms, annual reports, enhanced information rights, insurance transparency and litigation-cost reform. On 15 July 2026 the government confirmed how it intends to implement many of them, but also said that private landlords would receive notice before several measures take effect and that some information rights are planned for 2027. They must not yet be presented as universal current duties.
Under the existing requirements of the Landlord and Tenant Act 1985 (Section 21B), every service charge demand must be accompanied by a summary of leaseholders’ rights and obligations. This is not optional — it is a statutory requirement. Without it, the demand is not properly served and you may withhold payment.
Other checks may arise under existing legislation and the lease, including:
Section 21B LTA 1985: “A demand for the payment of a service charge must be accompanied by a summary of the rights and obligations of tenants of dwellings in relation to service charges.” Where a demand does not comply, the tenant may withhold payment of the service charge until the requirement is met.
Additionally, where the landlord has no address registered in England and Wales, they cannot enforce the service charge until a valid address is provided. This catches a significant number of offshore freeholder structures.
Check your most recent demand against each of these. If any are missing, your demand may be non-compliant.
A prescribed document summarising your legal rights must accompany every demand. It’s usually a separate sheet. If it wasn’t included, the demand is defective.
The demand must show the landlord’s full name and an address in England and Wales where notices can be served. A PO Box or overseas address is insufficient.
Check that you can identify the period and basis of the charge and compare it with the lease. A vague period may justify clarification, but it is not automatically the same as a Section 21B defect.
A breakdown helps you understand and test the charge. Standardised demand forms under the 2024 Act are planned, but their future requirements should not yet be treated as current grounds for withholding payment.
The demand must state when payment is due. If no deadline is given, the obligation to pay is unclear — which has implications for any enforcement action.
Ask for the premium, broker, remuneration and placement information where it is unclear. The government has confirmed future insurance-transparency measures, but absence from a 2026 demand does not by itself establish unenforceability under an uncommenced LAFRA provision.
The demand must be served on you individually — not just posted on a noticeboard or emailed without prior agreement. Incorrect service is a ground for challenge even if the amounts are correct.
If your demand fails any of the checks above, you have a number of options.
The first step is to write formally to your managing agent identifying the specific defect and stating that you consider the demand non-compliant. Be specific — cite the statutory requirement they have failed to meet. This creates a paper trail and often prompts quick compliance.
“I am writing about the service charge demand dated [DATE] for [ADDRESS]. The prescribed summary of rights and obligations does not appear to have accompanied the demand. Please confirm whether it was served and, if not, provide it. I understand that Section 21B of the Landlord and Tenant Act 1985 permits the relevant service charge to be withheld until that specific requirement is met. Please also provide [OTHER INFORMATION] so that I can understand the charge. This request does not rely on any provision that is not yet in force.”
Where a demand is genuinely non-compliant under Section 21B (missing the summary of rights), you may legally withhold payment until a correct demand is served. However, once a corrected demand is served, payment becomes due and you should pay promptly to avoid forfeiture risk.
Do not use demand non-compliance as a reason to simply stop paying — use it as leverage to get a properly documented demand that you can then scrutinise and, if necessary, challenge on the substance.
If the landlord continues to pursue payment of a defective demand, you can apply to the First-tier Tribunal under Section 27A of the LTA 1985 for a determination that the charge is not properly due. A demand issued in breach of statutory requirements is a strong ground for such an application.
A LeaseScan audit checks demand format compliance as part of every review — alongside the full line-by-line analysis of your charges, insurance benchmark, and lease cross-reference.
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The four-month rule published by RICS in 2025 belongs to its Service charges in commercial property professional standard. It should not be presented as a new statutory deadline for residential leasehold accounts.
For residential management, the RICS Service Charge Residential Management Code is the relevant code. Its 2026 fourth edition states that year-end service charge accounts should generally be issued within six months of the service charge year end, subject to the lease and the status of the code. Separately, Section 20B of the Landlord and Tenant Act 1985 contains an 18-month restriction on recovering relevant costs unless the statutory conditions are satisfied.
Insurance remuneration is a legitimate area for scrutiny. FCA work found that, in arrangements it reviewed, freeholders received up to 30% of broker commission and property managing agents up to 50% of broker commission. Those figures describe the FCA sample; they are not proof that your own premium contains the same amount.
The government confirmed in July 2026 that it will introduce further insurance-transparency requirements under the 2024 Act and intends to give relevant parties notice. Until those measures commence, request and assess the information without asserting that non-disclosure automatically makes the insurance charge unenforceable under LAFRA.
Write to your managing agent formally requesting disclosure of:
The direction of reform is toward greater transparency, but current rights and future measures must remain distinct. A strong challenge uses the lease, law in force and actual supporting evidence. It does not overstate an announced reform.
If you’re unsure whether your demand is valid, or whether the charges within it are reasonable, a LeaseScan audit covers both — demand format compliance as well as the full line-by-line analysis of every charge.