Leasehold Reform: A New Era of Compliance

With the Government consultation on leasehold reform now closed, Brethertons Solicitors says landlords, RMCs, RTM companies and managing agents must prepare for a new era of compliance. Proposals for standardised service charge demands, administration charge schedules, and mandatory qualifications for managing agents could reshape how leasehold property is managed.

The consultation, which closed on 26 September 2025, follows the Leasehold and Freehold Reform Act 2024 receiving Royal Assent last year. While the Act sets out a framework for reform, the detail is to be fleshed out through secondary legislation, and this consultation signals how wide-ranging those changes may be.

Specialist leasehold advisers at the firm are monitoring the judicial review and the consultations, and they stress that, regardless of pending changes, practitioners should continue acting within the boundaries set by the various legislation already in force.

Among the headline proposals are:

• Standardised Service Charge Demands: including prescribed forms for initial, interim, and reconciliation demands, alongside statutory budgets.
• Future Demand Notices: stricter rules on the form and content of section 20B(2) notices, with invalid notices rendering costs unrecoverable.
• Extended Leaseholder Rights to Information: including access to building safety reports, financial contracts, and insurance details within 28 days.
• Administration Charge Schedules: landlords required to publish prescribed schedules alongside annual reports.
• Standardised Accounts & Annual Reports: clear, statutory requirements for financial reporting and service charge information.
• Restrictions on Litigation Costs: reversing the current presumption, so landlords cannot recover legal costs through service or administration charges without tribunal approval.
• Regulation of Managing Agents: mandatory membership of a professional body, compulsory qualifications, and regulated activities.

Roger Hardwick, Residential Leasehold Partner at Brethertons Solicitors, comments:

“These proposals go far beyond tweaks to leasehold law – they signal a cultural shift towards greater transparency and accountability in the sector. While the Government’s intention is to strengthen protections for leaseholders, the detail will matter enormously. These reforms could also trigger further challenges if stakeholders feel property rights are being curtailed without enough flexibility.

“For leaseholders, the changes promise real empowerment through standardised demands, clearer financial reporting, and stronger rights to information. For landlords, RMCs and RTM companies, the challenge will be adapting to new compliance duties that could bring cost and administrative burdens.

“Just as with earlier reforms, leaseholders will need to carefully budget for how these changes could affect their service charges and long-term costs, while landlords and managing agents will need to plan their management strategies with confidence under a more prescriptive framework.

“Questions remain about how flexible the prescribed forms will be, whether transitional provisions will ease the burden on landlords, and how managing agents will meet regulatory and training requirements. Brethertons will be monitoring the legislative process closely to ensure our clients can navigate these changes with confidence.

“In the meantime, leaseholders and landlords alike should continue to manage their service charges and property obligations as they always have, while seeking legal guidance to prepare for the changes ahead.”