Landlord and Tenant Act 1985

What it does

Sections 18 to 30 of the Act are the core rules for service charges on flats. They apply on top of whatever the lease says: the lease decides what can be charged, and the Act limits how.

Why it matters if you run your own block

A freehold, RMC or RTM company that collects service charges is the “landlord” for these purposes, so every duty below applies to you as much as to a commercial freeholder or agent.

Key sections

• Section 18: what a service charge is (a variable amount for services, repairs, maintenance, improvements, insurance or management).
• Section 19: costs are recoverable only if reasonably incurred and the work is of a reasonable standard. Advance charges must be reasonable.
• Section 20: consultation before qualifying works (over £250 for any one flat) and long-term agreements (over 12 months and over £100 a year for any one flat). See the Service Charges (Consultation Requirements) Regulations.
• Section 20B: costs demanded more than 18 months after they were incurred cannot be recovered unless a written notice was given within the 18 months.
• Section 20C: a leaseholder can ask a tribunal to stop legal costs being added to the service charge.
• Sections 21 and 22: a leaseholder can ask for a summary of costs and then inspect accounts and receipts.
• Section 21B: every service charge demand must come with the prescribed summary of rights and obligations, or the leaseholder can withhold payment.
• Section 27A: either side can ask the First-tier Tribunal (Property Chamber) to decide what is payable.
• Section 30A and Schedule: leaseholders’ rights to information about buildings insurance.

Coming changes

The Leasehold and Freehold Reform Act 2024 will replace the information rights and add standard demand forms, annual reports and standardised accounts. Those parts are enacted but not yet in force; the government expects the first measures in 2027.