Andy Burnham confirms major rule change for over 3 million homeowners from April 2027

Detailed summary

More than three million leasehold homeowners will soon gain stronger rights to challenge spiralling service charges. The changes are due to take effect from April 1, 2027, and…

More than three million leasehold homeowners will soon gain stronger rights to challenge spiralling service charges. The changes are due to take effect from April 1, 2027, and will give leaseholders new legal entitlements to request more information about what they’re paying for. The move aims to give people a clearer picture of how their building is managed, maintained, repaired and insured.

The new rules will allow leaseholders to ask for information from previous years, and landlords will need a good reason to refuse to provide it.

From the same date, leaseholders will also get stronger protection from having to pay their landlord’s legal costs when they challenge a charge, ending the deterrent of landlords charging leaseholders whether they win or lose.

Landlords will need court or tribunal approval to pass on any legal costs to leaseholders, and leaseholders will gain the new right to claw back their own legal expenses.

Prime Minister Andy Burnham said: “It is simply wrong that millions of leaseholders can be hit with unfair charges, then face another bill just for challenging them. That isn’t right, and where we can act quickly to change it, we will.

“Today’s changes are only the beginning. We’re giving leaseholders stronger rights now, while we press ahead with the bigger reforms needed to put power back in homeowners’ hands and end the feudal leasehold system for good.”

Housing Minister Matthew Pennycook MP said: “Rapidly escalating and frequently opaque service charges are placing huge financial strain on hard-pressed leaseholders across the country. Today, we’re acting to protect them by introducing regulations that will improve the fairness and transparency of service charges so that unreasonable increases can be more easily challenged.

“As we work to dismantle the feudal leasehold system in this Parliament, we won’t leave existing leaseholders behind.”

Rules will strengthen from November 1, 2027, with leaseholders set to receive clearer information…

Opening of the article, excerpted from Daily Express. To read the rest, open the article on the publisher's site.