The Section 20 consultation process is a legal procedure that landlords and freeholders in England and Wales must follow before carrying out major works to a building where leaseholders contribute to the costs. It is one of the most important protections available to leaseholders — but it is also widely misunderstood. This guide explains exactly how the process works and what to expect at each stage.
Why Does the Section 20 Consultation Process Exist?
The Section 20 process is set out in the Landlord and Tenant Act 1985, as amended by the Commonhold and Leasehold Reform Act 2002. It applies whenever proposed major works would cost any individual leaseholder more than £250.
The purpose is straightforward: to ensure leaseholders are informed, consulted, and given an opportunity to have their views taken into account before significant sums are spent on their behalf. Without this protection, landlords could commission expensive contractors without any scrutiny from the people who ultimately pay the bills.
Stage 1: Notice of Intention
The process begins with the landlord serving a Notice of Intention on all leaseholders (and any recognised tenants association). This notice must:
- Describe the proposed works
- Invite leaseholder observations within 30 days
- Invite leaseholders to nominate a contractor they would like the landlord to obtain a quote from
This stage is your first opportunity to engage. Submit your observations in writing — question whether the works are necessary, whether the specification is appropriate, or nominate a contractor who may offer better value. The landlord is legally required to have regard to your observations.
Stage 2: Notice of Proposals
After considering observations and obtaining quotes (including from any nominated contractor), the landlord serves a Notice of Proposals. This notice must:
- Include at least two estimates from contractors
- Include the estimate from any nominated contractor
- Again invite observations within 30 days
At this stage, you can scrutinise the estimates and raise concerns about the chosen contractor, specification, or value for money. Submit your observations in writing and keep copies of everything.
Stage 3: Notice of Reasons (Where Applicable)
If the landlord does not intend to accept the lowest estimate or a nominated contractor’s quote, they must serve a Notice of Reasons explaining why. This step is important for transparency and accountability — if the landlord cannot give adequate reasons, this can be raised at the First-tier Tribunal.
What Happens If the Landlord Does Not Follow the Process?
If a landlord fails to comply with the Section 20 consultation requirements, the consequences are significant. In most cases, they will be limited to recovering no more than £250 per leaseholder for the works in question — regardless of the actual cost. They can apply to the Tribunal for dispensation from the requirements, but the Tribunal will only grant this if it is satisfied that leaseholders have not been prejudiced.
This means procedural compliance matters — and leaseholders should keep a close eye on whether the correct process has been followed.
Need help navigating a Section 20 notice? Contact us at section20.org.uk