New service charge rules from 2027: what self-managed blocks should prepare

What happened

In July 2026 the government published its response to the 2025 consultation “Strengthening leaseholder protections over charges and services”. It confirmed how it will use the powers in Part 4 of the Leasehold and Freehold Reform Act 2024. None of the measures is in force yet: each needs regulations, and the government said it plans five sets of regulations by the end of 2026.

The response confirmed:

• a standard service charge demand form, including the year’s budget;
• a notice of future demands, warning leaseholders of significant costs coming up;
• a prescribed annual report on the building, covering its condition and planned major works;
• standard service charge accounts, with an “agreed-upon procedures” report (ISRS 4400) as the default check, and thresholds to be set in the regulations;
• a right to ask for information, reaching back six years;
• a published schedule of administration charges;
• more openness about buildings insurance and the fees paid to whoever arranges it;
• limits on landlords recovering their legal costs through the service charge without a tribunal or court order.

What it means for your building

Most of these rules are aimed at landlords and managing agents who keep leaseholders in the dark. A block run by its own freehold or right to manage company may still be the “landlord” or manager the rules apply to, so directors should expect to use the new forms too. The good news is that a board that already shares its budget, accounts and plans with every leaseholder will find little new work.

What to do now

• Keep six years of service charge records together: budgets, accounts, invoices, contracts, insurance schedules and the reasons for big decisions.
• Write a short plan of major works for the next five to ten years. It will feed the annual report and the notice of future demands.
• If you use a broker for buildings insurance, ask in writing what commission or fee they receive.
• Wait for the regulations before changing your demand template. We will report when each one is made.

How Freeholdpilot helps

Freeholdpilot keeps budgets, invoices, contracts and decisions in one record that every leaseholder can see, and builds the year’s budget and demands from it. When the prescribed forms are published, the templates will follow them.