If you own a leasehold flat in England or Wales and you’ve ever received a bill for building repairs or maintenance, you’ve been affected by Section 20 of the Landlord and Tenant Act 1985 — whether you knew it or not. This piece of legislation is one of the most important protections available to leaseholders, yet it’s also one of the least understood. Here’s everything you need to know about what it actually says, what it’s supposed to do, and where it falls short.
What Is Section 20?
Section 20 of the Landlord and Tenant Act 1985 requires landlords (freeholders or their managing agents) to consult leaseholders before carrying out “qualifying works” — works that will cost any individual leaseholder more than £250. A separate consultation requirement applies to “qualifying long-term agreements” (contracts for services lasting more than twelve months costing more than £100 per leaseholder per year).
The consultation is governed by the Service Charges (Consultation Requirements) (England) Regulations 2003 (or equivalent Welsh regulations). These set out precisely what notices must be served, in what format, and with what content.
What Does the Consultation Require?
For qualifying works, the consultation process has two stages:
Stage 1: Notice of Intention (NOI)
The freeholder must serve a written notice on each leaseholder describing the proposed works and their reasons for considering them. Crucially, this notice must invite leaseholders to nominate a contractor to provide a quote, within 30 days. The notice must also invite observations from leaseholders within 30 days.
Stage 2: Notice of Proposal (NOP)
The freeholder must then obtain at least two estimates or quotes. If a leaseholder has nominated a contractor, they must obtain a quote from that contractor too. The freeholder then serves a Notice of Proposal on all leaseholders, showing the estimates and inviting observations within 30 days. The notice must state where further details can be inspected.
After the 30-day observation period closes, the freeholder can enter into the contract. If they want to choose a contractor who is not the lowest quoted, they must give written reasons.
What Happens If They Don’t Comply?
If a freeholder carries out qualifying works without following the correct consultation process, the law limits what they can recover through the service charge to £250 per leaseholder — regardless of the total cost. This is a powerful deterrent and a significant remedy for leaseholders where breaches occur.
The freeholder can apply to the First-tier Tribunal for dispensation from the requirements if they can show it is reasonable to grant it — but the tribunal takes into account all circumstances, including any prejudice caused to leaseholders.
What Section 20 Doesn’t Do
This is equally important. Section 20 does not:
- Require the freeholder to choose the cheapest quote
- Require works to be carried out to any specific standard
- Cap the total amount that can be charged for properly-consulted works
- Prevent freeholders from padding specifications or managing agent fees
- Give leaseholders a veto over whether works proceed
In other words, Section 20 creates a process — but it doesn’t automatically produce a fair price. A freeholder can follow every procedural step correctly and still charge significantly above market rate. The consultation process provides a framework, not a guarantee.
The Reasonableness Test: Your Real Protection
The deeper protection comes from Section 19 of the same Act: service charges are only recoverable to the extent that the costs were “reasonably incurred” and works were carried out to a “reasonable standard.” This is the provision under which you can challenge inflated charges at the First-tier Tribunal, regardless of whether the Section 20 consultation was technically compliant.
Together, Sections 19 and 20 create a two-layer protection: first, a fair process (Section 20); second, a reasonable price (Section 19). Leaseholders can challenge on either or both grounds.
Does Section 20 Apply in Scotland or Northern Ireland?
No. Scotland has its own tenement law regime under the Tenements (Scotland) Act 2004, and different rules apply. Northern Ireland has separate housing legislation. Section 20 and the consultation requirements specifically apply in England and Wales.
What’s Changing Under the Leasehold Reform Act?
The Leasehold and Freehold Reform Act 2024, which received Royal Assent in May 2024, contains provisions that are gradually being brought into force. While the core Section 20 framework remains in place for now, leaseholders should be aware that the legislative landscape is evolving. We will update our guides as key provisions come into force.
Think your bill might be inflated? Get an independent assessment from Section20.org.uk — 48-hour turnaround, fixed fee. Email info@rapidqs.uk, WhatsApp us at +44 7438 628277 (5-minute response guaranteed), or fill in our contact form at section20.org.uk