Leaseholder Management: Balancing safety, cost, and fairness

The position of leaseholders in blocks of flats owned by social landlords has always involved a delicate balance between safety, cost, and fairness. Leaseholders are often required to meet a range of financial obligations, including but not limited to, service charges, ground rent, and at times substantial demands for major work.

While these cost implications can be challenging, the social housing sector is heavily regulated, and social landlords are accountable under regulatory and legislative frameworks to ensure that buildings are safe and properly maintained.

So, where does the balance lie for social landlords?

In the latest consultation launched in July 2025, on strengthening leaseholder protections over charges and services, The Housing Minister Mathew Pennycook described the sector as a ‘wild west’, a description that resonates with many social landlords. In response, the government is now progressing a programme of leasehold reform aimed at improving transparency, consistency, and fairness.

The consultation was designed to help implement key parts of the Leasehold and Freehold Reform Act 2024, the key areas under consideration were:

• Transparency of charges: Standardised demand forms for service charges, annual reporting requirements, and clearer admin and insurance costs.
• Major works reform: Reviewing consulting processes (including Section 20) and making billing clearer and more predictable for leaseholders. 
• Professional standards for managing agents: Considering mandatory qualifications and stronger accountability for agents responsible for delivering services to leaseholders.

The consultation closed in September 2025, and the government has since introduced a legislative cap on ground rents of £250 per year, changing to a peppercorn cap after 40 years.

As leasehold law continues to evolve, social landlords can prepare by:

• Engaging with leaseholders early and transparently, particularly around forecast costs and major works planning, to build trust and avoid disputes.
• Asses managing agent arrangements and plan for potential professional qualification requirements, including training and recruitment and implement performance monitoring measures. 
• Review, update, or establish governance around leaseholders by ensuring policies, procedures, and strategy documents align with both existing statutory duties and the emerging expectations signalled by leasehold reform. 
• Monitor developments by staying informed on new legislation, guidance, and consultations to maintain trust and ensure compliance with regulatory compliance and leaseholder obligations.

By preparing now, social landlords can get ahead of the curve, implement changes more promptly and smoothly, and balance safety, costs, and fairness in leaseholder management.

If you're looking for support understanding how to prepare for the evolving leasehold law, reach out to get in touch with our team of experts.