The 2027 service charge reforms
On 15 July 2026 the government confirmed how the service charge reforms in the Leasehold and Freehold Reform Act 2024 will work in England. They change what landlords and managing agents must give leaseholders, and how.
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What changes
- Standardised service charge demands
- Demands will follow a new standard form, setting out what leaseholders are being asked to pay and what it covers.
- Annual reports to leaseholders
- Landlords will give leaseholders an annual report on the condition of their building and the plans for major works.
- Standardised accounts
- The Act provides for service charge accounts in a standard format. The format itself will be set out in regulations.
- Information on request
- Leaseholders will be able to ask for building information, such as fire safety information and invoices for maintenance works, going back up to six years, with clear timeframes for a response.
- Legal costs
- Where there is a dispute, for example over service charges, leaseholders will be protected from paying their landlord's legal costs without challenge, and will be able to apply to recover their own.
When
The government has said the changes will come into force as soon as possible from 2027.
A regulator and licensing regime for property agents was announced in September 2026, with details to follow.
What is still to come
The standard forms, the contents of the annual report and the accounts format will be set out in further regulations. Until they are published, every format, including the ones Insulor produces, is a draft.
What it means for your firm
Each block will need its demands, annual report and accounts in the new formats, and each information request answered within its timeframe. For a small firm that is a great deal of new paperwork on top of an accounting system that was not built for it.
Where Insulor fits
Insulor works from the files you export from your current system. It drafts each document in the current draft format and links every figure to its source. You review and approve everything before it is sent, and service charge accounts still need sign-off by a qualified accountant. Insulor does not guarantee compliance.
Sources
- Stronger leasehold protections in crackdown on hidden fees, GOV.UK, 15 July 2026
- Leasehold reforms explained, MHCLG blog, 15 July 2026
This page is a plain-English summary, not legal advice.