Section 20 consultation: your rights when your landlord plans major works

In short

Are you a leaseholder? Then this is for you. Sometimes a landlord plans big works that cost more than £250 per leaseholder. When that happens, they must talk to you first. This is called a Section 20 consultation. It is the law under the Landlord and Tenant Act 1985. If your landlord skips this step, there is a limit on what they can charge you. Knowing your rights here can save you a lot of money.

What Section 20 is

Section 20 is part of the Landlord and Tenant Act 1985. It was changed by the Commonhold and Leasehold Reform Act 2002. The law says your landlord or management company must follow a set process. They must do this before any qualifying works that cost more than £250 per leaseholder in total.

This applies to:

• Roof repairs or replacement
• Lift replacement or major overhaul
• External decoration or painting
• Major structural repairs
• Installation of new heating or communal systems

It also applies to qualifying long-term agreements. An example is a maintenance contract worth more than £100 per leaseholder per year.

The three-stage consultation process

The consultation has three formal stages. Your landlord must finish each one before they move to the next.

Stage 1: Notice of intention

First, the landlord writes to all leaseholders. They also write to any recognised tenants association (RTA). The letter says they plan to carry out works. This notice must:

• Describe the works
• Explain why the works are needed
• Invite observations within 30 days
• Invite nominees: leaseholders can put forward a contractor they want the landlord to approach for a quote

You have 30 days from the day you get this notice. In that time you can send your views or name a contractor. Do this in writing. Keep a copy for yourself.

Stage 2: Notice of estimates

Next, the landlord must get at least two estimates for the works. Did you name a contractor in Stage 1? Then they must ask that contractor for an estimate too. After that, the landlord writes to all leaseholders again. This letter must have:

• A summary of the estimates received
• A copy of the nominated contractor's estimate (if applicable)
• A further 30-day observation period

Stage 3: Notice of reason (if the lowest estimate is not chosen)

Sometimes the landlord does not pick the lowest estimate. Sometimes they do not pick the estimate from the contractor you named. If that happens, they must write to all leaseholders and explain why. This letter is the notice of reason.

What happens if the landlord skips the process

What if your landlord does not follow the Section 20 process the right way? Then there is a limit on what they can charge. They can only recover £250 per leaseholder through the service charge for those qualifying works. This is true no matter what the works really cost. The limit does not happen on its own. You would need to raise it as a challenge. But the limit is set in law.

You can apply to a tribunal if you think the landlord did not follow the process. In England, this is the First-tier Tribunal (Property Chamber). In Wales, it is the Leasehold Valuation Tribunal.

How to object during the consultation window

Maybe you are worried about the works, the estimates, or the choice of contractor. If so, put your views in writing within the 30-day window. You can:

• Question whether the works are necessary
• Ask for more detail about the scope
• Challenge the estimates as unreasonably high
• Nominate your own contractor and ask for them to be included

Keep dated copies of everything you send.

If you suspect overcharging

The works may be finished. You may feel you have paid too much through the service charge. If so, you can apply to the First-tier Tribunal. They will decide whether the service charge is reasonable. The Tribunal can lower the amount you owe.

You should also check two things. First, does your landlord hold the service charge funds in a designated trust account? This is the law. Second, are you getting yearly accounts for the service charge?

What to do

1. Read any Section 20 notices carefully and note the observation deadline.
2. Make your observations in writing within 30 days, and nominate a contractor if you have one.
3. Keep copies of all notices, your responses, and any estimates you receive.
4. Contact the First-tier Tribunal if you believe the process was not followed, or if works have been carried out without any consultation at all.
5. Speak to a housing solicitor or law centre if the amounts involved are large. Legal advice on leasehold service charges is available from the Leasehold Advisory Service (LEASE) at lease-advice.org.

Where we fit in

Support for Tenants helps with housing disrepair claims. Maybe major works by your landlord have left your home in worse shape. Maybe they caused new faults. Or maybe the building is still in a dangerous state, even though you were charged for the works. If so, you may have a disrepair claim as well as any service charge dispute.

Call us free on 0800 030 4669, send the short form, or message us on WhatsApp. See also can I be charged for repairs in my council flat and where to get other housing help.

Sources

• Section 20, Landlord and Tenant Act 1985 (legislation.gov.uk)
• Commonhold and Leasehold Reform Act 2002 (legislation.gov.uk)
• First-tier Tribunal (Property Chamber) (GOV.UK)