New statutory requirements are to be introduced around leasehold service charges

The government is going ahead with a suite of reforms to strengthen protections for leaseholders, including more transparency around service charge costs.  On 15^th July, the MHCLG published its response to the consultation on planned reforms in this area.  Social landlords will need to provide a standardised service charge demand form but will not be required to provide tenants with an annual report in order to avoid overlap with the Social Tenant Access to Information Requirements (STAIRs).  Housing associations will have to prepare written statements of account for each block, including details of reserve funds where applicable.  However, they will be exempt from “the full requirement to comply with a reporting standard” and will not have to have the report prepared by an external qualified accountant.  While the government plans to implement these measures in 2027, social landlords will be given 24 months’ notice, taking into account the challenges associated with their larger portfolios and accounting practices.