The Standardised Service Charge Demand Form: What the 2027 Leasehold Reforms Require

TL;DR: The Leasehold and Freehold Reform Act 2024 will require every service charge demand in England to use a government-specified form, with specified information, delivered in a specified way. The provision is on the statute book but not yet in force. MHCLG's 15 July 2026 response says the regulations will be laid later this year, private landlords get 12 months' notice, and leaseholders will start to see changes during 2027. Until then, the current section 21B, 47 and 48 requirements apply in full.

Check what every demand must contain today →

#What the Standardised Demand Form Changes

Section 55 of the Leasehold and Freehold Reform Act 2024 removes sections 21, 21A and 21B of the Landlord and Tenant Act 1985 and inserts a new section 21C. Under section 21C, the government sets the form of a service charge demand, its content, and how it reaches the leaseholder.

A landlord may not demand the payment of a service charge unless the demand (a) is in the specified form, (b) contains the specified information, and (c) is provided to the tenant in a specified manner.

Landlord and Tenant Act 1985, s.21C(1), inserted by Leasehold and Freehold Reform Act 2024, s.55

The change is in who designs the demand. Today you choose the layout and the level of detail, provided the statutory accompaniments are attached. Under section 21C, the regulations set a minimum layout and content for every landlord in England. The consultation described that as "a minimum level, rather than limit the level of detail", so you can still add more.

#When It Comes Into Force

The demand form is not a live obligation. Sections 54 to 58 of the 2024 Act, which cover demands, accounts, annual reports, information requests and enforcement, did not commence at Royal Assent (Leasehold and Freehold Reform Act 2024, s.124(3)). legislation.gov.uk marks each of them "Prospective". The three commencement regulations made so far brought other parts of the Act into force and left these sections untouched.

The timetable comes from MHCLG's government response to its 2025 consultation, published on 15 July 2026. It says the reforms will be laid in Parliament "later this year through a minimum of five complementary statutory instruments", and that leaseholders "will start to see changes during 2027."

For the demand form and the annual report, the response sets notice periods:

• Private landlords: 12 months' notice of the measures.
• Social landlords: 24 months' notice.

No commencement date has been published. Treat "2027" as the government's stated plan, and watch for the regulations themselves.

#What the Form Will Contain

The government response confirms the content will "largely reflect what was proposed in Annex B" of the consultation. Paragraph 42 of the consultation proposed that the initial demand of each year includes:

1. The names and addresses of the leaseholder, the landlord and the property.
2. The total amount payable for the period, based on the budget.
3. Payment details and the payment deadline.
4. The consequences of non-payment.
5. An annual budget setting out planned spending on maintenance, insurance and management.

The budget will follow the consultation's Option 1, a list of high-level headings. The response says that list will be expanded, so the final headings are not yet known. The ten headings proposed in paragraph 49 were: management fees, utilities, security costs, grounds maintenance, health and safety obligations, general repairs and maintenance, building insurance costs, professional fees, contribution to reserve fund, and on-site staff wages.

Four further points from the response affect how you run the demand cycle:

• Previous-year comparison. The initial demand must show a comparison with spending in the previous accounting period.
• Interim and reconciliation demands. These mirror the format of the initial demand, without the budget. The consultation proposed that a reconciliation demand explains the nature and amount of any over or underspend, with a table of budget against actual costs.
• Delivery by post. The form goes by post unless the leaseholder agrees to receive it digitally.
• Local authority landlords. They get a bespoke form.

#A Worked Example

Take a hypothetical 30-flat block with equal shares and a £60,000 annual budget, demanded in two halves.

Today, the first half-yearly demand to Flat 12 can be a one-page invoice for £1,000 with a due date. It must include the landlord's name and address, with the prescribed section 21B summary attached. No statute requires the budget on the demand itself, though your lease may.

Under the proposed form, the same demand carries the budget by heading, with last year's spending beside it. The insurance line might read £18,000 against £15,600 last year, and health and safety obligations £7,500 against £4,200. The leaseholder can see on the demand itself which lines went up.

The numbers are illustrative. The point is practical: if your accounts do not already hold last year's actual spending under the same headings as this year's budget, you cannot fill in the comparison column.

See how Brocade builds budgets and demands from the same categories →

#What Happens If a Demand Does Not Comply

The sanction for a defective demand changes. Under today's section 21B, a leaseholder who receives a demand without the summary of rights may withhold payment until it is provided. Under section 21C(2), a non-compliant demand means lease provisions on non-payment or late payment "do not have effect in relation to the service charge". In practice, the lease's interest and late-payment clauses stop applying to that charge.

Section 58 of the 2024 Act adds a route to the tribunal. A leaseholder can apply on the ground that the landlord demanded a service charge without complying with section 21C(1).

Damages under this section may not exceed £5,000.

Landlord and Tenant Act 1985, s.25A, inserted by Leasehold and Freehold Reform Act 2024, s.58

The tribunal can also order the landlord to issue a compliant demand within 14 days. Damages cannot be passed back to leaseholders through the service charge.

The name-and-address rule changes too. Section 55(4) switches off the section 47 "not due" sanction in the Landlord and Tenant Act 1987 where section 21C already requires the same information, so a missing name or address is dealt with under section 21C instead.

#The Future Demand Notice and the 18-Month Rule

Section 54 of the 2024 Act replaces the section 20B(2) notice with a "future demand notice", which must be in a specified form, contain specified information and be given in a specified manner. The 18-month limit in section 20B(1) stays. Regulations may require the notice to state an estimated cost, an expected contribution and an expected demand date, and may limit what you can recover by reference to those figures.

MHCLG plans to commence the future demand notice as soon as possible in 2027. Until it does, a section 20B(2) notice in your own wording remains valid.

#What to Do Now

1. Keep today's demands compliant. Attach the prescribed section 21B summary to every demand, include the landlord's name and address, and confirm each leaseholder has been given an address for service under section 48. The demand template guide covers each requirement.
2. Map your budget lines to the ten proposed headings. If your budget uses more detailed lines, record which heading each one rolls up to, so the switch is a regrouping exercise when the final list is published.
3. Keep last year's actuals under the same headings. The comparison column needs them. If you changed managing agent mid-year, get the outgoing agent's figures by category now.
4. Record delivery consent. Note which leaseholders have agreed in writing to digital service. Everyone else will get the form by post.
5. Log cost incurrence dates. Regulations may require the future demand notice to state estimated costs and expected demand dates, and recovery may be limited by reference to them.
6. Watch for the regulations. Private landlords get 12 months' notice of the measures, so the regulations being laid is your signal to start. Our compliance calendar will carry the dates once they are set.

The RICS Service Charge Residential Management Code, 4th edition, approved by SI 2026/298 and in force since 7 April 2026, already flags these reforms. The managing agent service charge checklist covers the rest of the annual cycle.

#Questions

#Is the standardised service charge demand form in force yet?

No. Section 55 of the Leasehold and Freehold Reform Act 2024, which creates it, has not been commenced. MHCLG said on 15 July 2026 that the regulations will be laid later in 2026 and private landlords will get 12 months' notice.

#What will the standardised service charge demand form contain?

The government response says the form will largely follow Annex B of the 2025 consultation: names and addresses of leaseholder, landlord and property, the total payable, payment details and deadline, consequences of non-payment, and an annual budget under high-level headings with a comparison to the previous accounting period.

#What happens if a demand does not use the new form?

Once section 21C of the Landlord and Tenant Act 1985 is in force, lease provisions on non-payment or late payment will not have effect for that service charge. A leaseholder can also apply to the tribunal, which can order a compliant demand within 14 days and award damages of up to £5,000.

#Do current service charge demand rules still apply?

Yes. Until the new provisions commence, every demand in England still needs the section 21B summary of rights and obligations and the landlord's name and address under section 47 of the Landlord and Tenant Act 1987, and the landlord must have given an address for service under section 48.

#Does the new regime change the 18-month rule?

Section 54 of the 2024 Act replaces the section 20B(2) notice with a future demand notice in a specified form, and regulations may limit recovery by reference to what it states. The 18-month limit itself stays. MHCLG plans to commence the future demand notice as soon as possible in 2027.

#Further Reading

• Leasehold and Freehold Reform Act 2024, section 55: demands for service charges (prospective)
• Government response: Strengthening leaseholder protections over charges and services (MHCLG, 15 July 2026)
• Service Charge Demand Template UK: What Must Be Included
• Section 20B Notices and the 18-Month Rule

This article is for informational purposes. For advice on a specific lease or demand, consult a qualified property solicitor.

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