Strengthening leaseholder protections over charges and services

The Leasehold and Freehold Reform Act 2024 contains a number of provisions designed to standardise and increase the transparency of service charges so that leaseholders (homeowners who own their property on a leasehold basis) are able to better scrutinise and challenge costs if they consider them to be unreasonable.

The Government is currently consulting on important reforms introduced under this Act. These proposals focus on strengthening protections for leaseholders, particularly around how charges and services are managed.

On 4 July 2025, the consultation document “Strengthening Leaseholder Protections over Charges and Services” was published, outlining a range of changes designed to make service charges clearer, fairer, and more transparent for homeowners in England and Wales.

Why does it matter?

For many years, leaseholders have raised concerns about how service charges are calculated, communicated, and challenged. At times, residents have felt left in the dark about what they are paying for or faced difficulties accessing key information. The Government’s proposals aim to change that by ensuring charges are transparent, fair, and accountable.

At Anchor, we already place a strong emphasis on openness around service charges. We hold annual resident meetings. Alongside this, we provide detailed budgets in advance to help residents understand how charges are set and what they cover.

The consultation builds on these kinds of practices by exploring new national standards. If introduced, these could help ensure consistency across the sector, making it easier for leaseholders everywhere to access information, challenge unfair costs, and have greater confidence in how their homes are managed.

Key proposals under consideration

• Annual reports that outline building condition, planned major works, and key contacts
• Standardised service charge demand forms and detailed accounts for greater clarity
• Publication of administration charge schedules for any extra fees
• Greater transparency on building insurance, helping residents check value for money and highlight potential conflicts of interest
• Easier access to documents, such as maintenance reports and service charge breakdowns
• Rebalancing litigation costs, so leaseholders aren’t unfairly burdened when raising concerns
• Reforms to major works planning, including mandatory reserve funds and improvements to Section 20 consultation
• Mandatory qualifications for managing agents, raising the standard of management services

How to get involved

The consultation is open now and will close on 26 September. 

Leaseholders are encouraged to respond directly to the Government to ensure their voices are heard. You can do so through the government website here, which will direct you to an online survey. 

Anchor will be making a formal submission to the consultation to ensure the interests of our residents and leaseholders are represented. We are closely monitoring developments as proposals evolve and secondary legislation is introduced, and we will keep homeowners informed about what these changes mean in practice and how they could affect you.