Resident guidance: All Housing residents - Last updated 23 March 2026
How we consult on major works that impact service charges
At Anchor we’re committed to making sure you are always well informed and involved - especially when it comes to substantial works or improvements that might affect your service charges. The law sets out a clear process, called Section 20 consultation, which we must follow for major works or long-term service contracts where costs exceed certain thresholds.
On this page we explain how Section 20 ensures you get a say before major works happen and the three-stage process we follow.
In this guidance you’ll find:
- What is Section 20 and why does it matter?
- What are Qualifying Long Term Agreements?
- The differences in our responsibilities to tenants and leaseholders
- How does the consultation process work?
- Understanding your rights and opportunities to be involved
- How to get more help or advice on Section 20
What is Section 20 and why does it matter?
Section 20 of the Landlord and Tenant Act 1985 protects you by ensuring you get a say before major works happen - like repairs, upgrades, or new service agreements - that could cost you more than £250 for a single project or over £100 per year for a long-term contract.
This consultation process gives you the chance to understand what’s planned, review estimated costs, and have your voice heard before anything moves forward.
What are Qualifying Long Term Agreements?
A Qualifying Long Term Agreement (QTLA) is needed when Anchor plans to enter into a contract for services or works - such as repairs, maintenance, or communal services - that will last for more than 12 months and may impact residents’ service charges.
Before putting a QTLA in place, we’ll consult with all affected residents to ensure you’re fully informed and have the opportunity to give feedback on the proposals. This process is designed to promote transparency, protect your interests, and make sure you have a say in the long-term services that help maintain and improve your community.
The differences in our responsibilities to tenants and leaseholders
It’s important to know that our responsibilities under Section 20 mainly apply to leaseholders (those who own their property on a leasehold basis and pay variable service charges). Leaseholders must be consulted before major works or long-term maintenance agreements are put in place and have a right to comment or suggest alternative contractors.
For tenants, while we remain committed to openness and keeping you informed about planned works where these affect your home or communal areas, the formal Section 20 consultation process does not apply in the same way. However, we always strive to provide all residents with timely information, listen to your feedback, and minimise the impact of any major works in your community.
How does the consultation process work?
We follow a clear three-stage process to keep you fully informed during a consultation:
- Notice of Intention: We’ll write to let you know about planned works or a new contract, explaining why it’s needed and what it might include. You’ll have 30 days to send us your comments or suggest contractors you’d like us to consider.
- Statement of Estimates: Once we’ve gathered quotes, we’ll share at least two different estimates with you and invite your views for another 30 days. We’ll also explain how you can come and inspect the estimates in person if you wish.
- Notice of Award: When we’ve chosen a contractor, we’ll let you know who they are, why they were selected, and provide a summary of any comments received and our responses.
Throughout, your feedback helps shape the decision-making process and ensures the best outcome for residents.
Understanding your rights and opportunities to be involved
If you ever have questions about what’s happening we’re always here to help.
- You can share your views, concerns, or objections at each stage of the consultation process.
- Leaseholders can suggest alternative contractors during the consultation.
- We’ll respond to all observations in writing, letting you know how they’ve been considered.
How to get more help or advice on Section 20
If you’d like to know more about the Section 20 process or anything discussed on this page please speak to your location manager or contact the Customer Experience Hub on 0800 731 2020.