The Leasehold and Freehold Reform Act 2024 is set to change how service charges are reported, demanded and challenged
Matthew Pennycook has announced the results of the consultation on strengthening leaseholder protections over charges and services. Most measures are still forecast for 2027, or 12 months after they land in a Statutory Instrument but the direction of travel is clear: more transparency, standardised paperwork, and stronger leaseholder rights. Here’s what landlords and managing agents need to know now.
What is LAFRA actually reforming?
The Leasehold and Freehold Reform Act 2024 aims to increase transparency, standardise service charges, and give leaseholders stronger rights over the information they receive and the costs they’re asked to pay.
What new reporting will landlords have to produce?
An annual report on the health and condition of the building, plans for major works, and declarations of any relationships with third parties such as managing agents — plus standardised forms for service charge demands, budget comparisons, reconciliations, and notices about delayed demands.
What rights are leaseholders gaining?
A right to request a statutory list of information on service charges, management, maintenance, repair and insurance — reaching back six years, with response times on a sliding scale by complexity. Landlords will also need to publish a clear administration charge schedule, and disclose relationships between landlords, managing agents, brokers and insurers.
What's changing in how service charge accounts are prepared?
A prescribed format — balance sheet, income and expenditure account, sinking fund detail is coming, with Government still deciding which ISRS standard to apply and whether accounts must be signed off by appropriately qualified professionals. We’re already working with our accounting teams to be ready for day one.
What about litigation costs?
The Government is rebalancing the regime: landlords will need court or tribunal approval to recover litigation costs through service charges, while leaseholders gain new rights to recover their own costs in specified circumstances, still to be confirmed.
Anything else moving in parallel?
Yes, a temporary cut to the domestic VAT rate on electricity (not gas or water) applies from 1 October 2026 across England, Scotland and Wales, and Homes England has opened Cladding Safety Scheme funding for buildings under 11 metres, open 17 August for eight weeks.
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