Challenging a service charge

The rules, as the statute states them

Costs reasonably incurred, works of a reasonable standard (section 19)

Section 19 of the Landlord and Tenant Act 1985 says relevant costs are taken into account in a service charge "only to the extent that they are reasonably incurred", and the cost of services or works only if they "are of a reasonable standard". Where a charge is payable before the costs are incurred, "no greater amount than is reasonable is so payable". Whether a cost meets those tests is decided case by case, on the evidence. s.19, legislation.gov.uk.

The tribunal can decide whether a charge is payable (section 27A)

Section 27A says an application may be made to the tribunal "for a determination whether a service charge is payable and, if it is", by whom, to whom, how much, when and how. It applies "whether or not any payment has been made". It does not apply to a matter the tenant has agreed or admitted, or that a court or arbitration has decided. s.27A, legislation.gov.uk. The application form and the fee are on GOV.UK.

The 18-month rule (section 20B)

Section 20B says that if relevant costs were incurred more than 18 months before a demand for payment is served, the tenant "shall not be liable to pay so much of the service charge as reflects the costs so incurred", unless within those 18 months the tenant was notified in writing that the costs had been incurred and would later be required to be paid. s.20B, legislation.gov.uk.

Consultation on major works (section 20)

Section 20 limits what can be recovered for "qualifying works" and "qualifying long term agreements" unless the consultation requirements have been complied with or the tribunal has dispensed with them (section 20ZA). The Service Charges (Consultation Requirements) (England) Regulations 2003 set the thresholds: works where the relevant contribution of any tenant is more than £250 (regulation 6), and agreements where it is more than £100 in an accounting period (regulation 4). s.20, s.20ZA, reg. 4, reg. 6, legislation.gov.uk.

The landlord's costs of the case (section 20C)

Section 20C says a tenant "may make an application for an order that all or any of the costs incurred, or to be incurred, by the landlord in connection with proceedings" before the tribunal "are not to be regarded as relevant costs" in a service charge. The tribunal "may make such order on the application as it considers just and equitable in the circumstances". s.20C, legislation.gov.uk. On this site: in 634 of 1,015 decisions where the order was asked for and decided, it was made.

A demand comes with a summary of rights (section 21B)

Section 21B says a demand for 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", and that a tenant "may withhold payment" of a charge demanded without one. While it is withheld, lease terms on non-payment or late payment "do not have effect". The right lasts only until a compliant summary is given: it suspends payment and does not cancel the charge. (The section itself does not use the word "until": it ties the right to "the demand" and speaks of "the period for which he so withholds it".) s.21B, legislation.gov.uk.

A summary of the costs, and inspecting the accounts (sections 21 and 22)

Section 21 says a tenant "may require the landlord in writing to supply him with a written summary of the costs incurred" in the last twelve-month accounting period (or, where the accounts are not made up that way, the twelve months before the request), and the landlord "shall comply with the request within one month of the request or within six months of the end of the period", whichever is later. Section 22 says that within six months of obtaining the summary the tenant may require "reasonable facilities" for inspecting "the accounts, receipts and other documents supporting the summary" and for taking copies. The facilities are to be available for two months, beginning not later than one month after the request; inspection is free of charge and copies can carry a reasonable charge. s.21 as it remains in force, s.22, legislation.gov.uk.

The landlord's name and address (sections 47 and 48 of the 1987 Act)

Section 47 of the Landlord and Tenant Act 1987 says a written demand "must contain" the landlord's name and address (and an address in England and Wales for notices, if that address is elsewhere). If it does not, the service charge or administration charge in it is "treated for all purposes as not being due" at any time before that information is given by notice to the tenant. Section 48 says the landlord "shall by notice furnish the tenant with an address in England and Wales" for notices, and until then rent, service charges and administration charges are treated in the same way. Neither applies while a receiver or manager appointed by a court or tribunal is collecting the charges. s.47, s.48, legislation.gov.uk.

The Leasehold and Freehold Reform Act 2024: what has commenced

As checked on 1 November 2026, no service charge provision of the Act (Part 4, sections 53 to 63) is in force. The rules above are the rules in force on that date. The one part of Part 4 in force is section 64, only so far as it inserts section 20J of the 1985 Act as regards right to manage, from 3 March 2025 (S.I. 2025/131, reg. 2(e)). The Commencement No. 4 and Saving Provision (England) Regulations 2026 (S.I. 2026/1128), made on 25 October 2026, set these dates, in England:

Not in those regulations, and not yet in force on that date: sections 65 to 67 (appointment of a manager, sales information) and the rest of section 64. What the new rules will require depends on regulations still to be made. LEASE keeps a current guide. Each statement above is quoted from or paraphrases the provision linked; the link is the authority, not this page.