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Millions of Leaseholders in the UK Gain Stronger Rights to Challenge Unfair Service Charges

The package would require court approval for legal cost pass-throughs and give leaseholders new rights to challenge service charges.

  • The Government announced new powers yesterday for leaseholders to challenge service charges and prevent freeholders from passing excessive legal costs onto residents in England and Wales.
  • Housing Minister Matthew Pennycook described the leasehold system as 'feudal,' citing long-standing complaints about opaque and expensive service charges that strain hard-pressed homeowners across the country.
  • Under new regulations, leaseholders can demand detailed information about maintenance, repairs and insurance costs going back up to six years, while landlords must obtain tribunal approval before passing legal fees to residents.
  • Pennycook insisted Labour remains committed to ending leasehold homeownership, calling the forthcoming Commonhold and Leasehold Reform Bill 'the most ambitious overhaul of land and property law in a generation.'
  • From April 1, 2027, homeowners will receive expanded powers to audit service charges as the Government moves to make commonhold the default structure for new flats, ending leasehold sales.
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GOV.UK broke the news in United Kingdom on Wednesday, November 11, 2026.
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