Leasehold changes: what they mean for you and how to get help with housing costs

If you own a leasehold property, you'll soon have greater protection and a clearer picture of what you're paying for.

The government is to introduce new rules that will make service charges easier to understand, give you more information about your building, and strengthen your rights if you disagree with costs.

What are leasehold service charges?

If you own a leasehold property, such as a flat or apartment, you own the right to live there for a set number of years. You don't own the building itself, that's owned by a landlord or freeholder.

As a leaseholder, you usually pay service charges to your landlord or management company. These charges help cover your share of the costs of maintaining, repairing and managing the building and any shared spaces.

What's changing?

Following consultation with leaseholders, landlords and industry groups, the government has confirmed it will introduce new measures to make service charges more transparent and give you stronger protections.

You'll receive clearer information

Your landlord will have to provide you with an annual report explaining:

• the overall condition of your building
• its financial position
• any planned major works that could affect future costs

You'll also receive a new, standardised service charge demand that clearly sets out what you're paying for and how your money will be spent.

You'll be able to request more information

If you want to know more about your building or your service charges, you'll be able to ask your landlord for information such as:

• fire safety documents
• invoices for maintenance and repair work, going back up to six years
• other key building information

Landlords will also have to respond within set timeframes.

You'll have stronger protection if there's a dispute

If you challenge service charges or another leasehold issue, new rules are designed to better protect you from automatically having to pay your landlord's legal costs.

You'll also be able to apply to recover your own legal costs in some cases.

When will the changes happen?

The new rules are set to come into force as soon as possible from 2027.

Struggling with rent or housing costs?

If you're finding it difficult to keep up with your rent or other housing costs, you may be able to get financial support.

Universal credit

Universal credit may include extra money to help people of working age with rent and service charges. 

This housing element is usually included in your monthly payment and paid directly to your landlord.

You can also apply for additional support from your universal credit if you're dealing with financial hardship.

Housing benefit

If you’re over state pension age, you might qualify for housing benefit through your local council. 

Some people under pension age may also be eligible, particularly if they live in supported or temporary housing.

The amount you receive depends on:

• your age
• where you live
• the size of your household

Discretionary housing payment (DHP)

If your rent is already partly covered by universal credit or housing benefit, you may be able to get a discretionary housing payment (DHP) - short-term payments that can help with rent or other housing costs.

You can apply for a DHP through your local council.

Charity grants

Organisations like Turn2us can help you find and apply for grants and other financial support from charities and local community groups.

Try our household bills calculator

If you’re worried about how rising costs could affect your finances, it could also be worth trying our free and interactive household bills calculator.

In just a few minutes, you’ll get a personalised estimate of how your monthly costs could change, with results tailored to where you live, so you’re not caught out when new bills arrive.

Once you’ve done this, you can take the next step by using our handy budget planner to map out your monthly finances. 

It’s free and easy to use.

Find out what benefits you could claim

If you’re struggling to keep up with household bills, remember that you might be entitled to some support.

We can check you’re getting all the benefits you’re eligible to claim with our benefits calculator.