What is Section 20?
Section 20 of the Landlord and Tenant Act 1985 limits what landlords can recover through variable service charges unless they consult about qualifying works or agreements, or obtain tribunal dispensation. Consultation gives you a chance to question the proposal; it is not a vote to approve it. LEASE explains Section 20 (opens in a new tab).
England uses the 2003 consultation regulations (opens in a new tab). Wales uses separate 2004 consultation regulations (opens in a new tab). Both have different procedures for different types of works and contracts.
General information checked on 8 October 2026, not legal advice. Check the procedure applicable to your notice and property before treating a charge as capped or withholding payment.
When Section 20 applies
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Qualifying works: more than £250
Consultation is normally needed if any leaseholder's contribution to a set of qualifying works exceeds £250. Use the proportions in the lease, rather than dividing the bill equally unless the lease requires equal shares.
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Qualifying long-term agreements: more than £100 a year
A qualifying agreement lasts more than 12 months. Consultation is normally needed if any leaseholder contributes more than £100 in an accounting year. Not every long contract qualifies: statutory exclusions and transitional provisions apply.
LEASE gives threshold examples (opens in a new tab).
Illustrative calculation
A £40,000 roof repair divided equally between 20 flats costs £2,000 per flat. That exceeds £250. This is an arithmetic example, not a typical repair price or an assumption about your lease.
If several work packages appear related, ask the landlord to explain how it identified the set of works and calculated your contribution. Get advice if that classification is disputed.
The consultation stages
The following describes the usual route for qualifying works outside an existing qualifying long-term agreement where public procurement notice requirements do not apply. Other routes differ, including whether contractor nominations are available.
- Stage 1
Notice of intention
The notice describes the work or tells you where to inspect its description, explains why it is needed and invites written observations and contractor nominations. The consultation period is 30 days.
- Stage 2
Estimates and observations
The landlord obtains estimates, including at least one from an unconnected contractor, and provides a statement with at least two estimates. It summarises the first-stage observations and its response, makes estimates available for inspection and allows another 30 days for written observations.
- Stage 3
Reasons for the award, where required
Unless the selected contractor gave the lowest estimate or was a leaseholder or recognised tenants' association nominee, the landlord must give reasons within 21 days of entering the contract, together with the required response to observations. LEASE explains the award notice (opens in a new tab).
See LEASE's stages (opens in a new tab) and the English regulations, Schedule 4 (opens in a new tab). The two response periods alone total 60 days; obtaining estimates adds time. There is no fixed overall completion period for the whole project.
Your rights during consultation
Where nominations are allowed, the landlord must try to obtain an estimate from the required nominee or nominees. It does not have to obtain one from every person nominated. Where several leaseholders nominate different contractors, the nomination-count rules determine which must be approached; a recognised tenants' association has separate nomination rights. Read the nomination rules (opens in a new tab).
- Respond in writing to the address given in the notice before its deadline.
- Ask about the specification, necessity, alternatives and estimated contribution.
- Keep the notice, your observations and evidence of when you sent them.
- Coordinate with neighbours and check nominees can meet the tender requirements.
The landlord must consider observations but need not agree with them. A consultation response does not replace a formal application if a dispute later needs a tribunal decision. LEASE explains how observations are handled (opens in a new tab).
Consequences of non-compliance
Limits depend on consultation and dispensation
Without the required consultation or dispensation, recovery is limited to £250 per leaseholder for qualifying works, or £100 per accounting year under a qualifying long-term agreement. These are recovery limits, not fines. A landlord can seek dispensation after the event. Read LEASE's guidance on failure to consult (opens in a new tab).
Keep evidence of missing notices, shortened response periods or ignored nominations. Check the applicable procedure before concluding there was a breach: the stages above do not apply to every contract.
Dispensation from consultation
A landlord can ask the tribunal to dispense with consultation, including for urgent work or retrospectively. An emergency does not automatically remove the requirement. Under the approach in Daejan v Benson, the tribunal examines relevant prejudice caused by the consultation failure, such as losing an opportunity to challenge unnecessary or excessive costs.
Explain what you would have said or proposed if properly consulted and provide evidence of the disadvantage. The tribunal may impose conditions. Dispensation addresses consultation only; it does not establish that every cost is reasonable or recoverable under the lease. LEASE explains dispensation and prejudice (opens in a new tab).
Qualifying long-term agreements (QLTAs)
Long-term cleaning, maintenance or management contracts may qualify. An ordinary 12-month contract does not qualify merely because the annual bill exceeds £100. See LEASE's contract examples (opens in a new tab).
Qualifying works under an existing QLTA can still require a separate consultation above £250 per leaseholder. That route uses a notice explaining the works, the reasons and the landlord's estimated total expenditure on and connected with the works. Leaseholders have 30 days for observations. The landlord must reply in writing to each timely observation within 21 days of receiving it. There is no fresh contractor-nomination and estimates process. See England's Schedule 3 (opens in a new tab) and Wales's regulations, Schedule 3 (opens in a new tab).
Ask when an existing agreement was entered into and which consultation rules applied then. Buying your flat later does not itself require the landlord to consult again on that agreement.
How to challenge
Write to the landlord with the notices, dates and charges you dispute. A section 27A application can ask whether charges are payable, including consultation compliance and reasonableness. Use the First-tier Tribunal in England (opens in a new tab) or Leasehold Valuation Tribunal in Wales (opens in a new tab).
For an English service-charge liability application, the current fee is £114 plus £227 if a hearing is needed; fee help may be available. Wales has separate fees. Legal costs and possible recovery through your lease need separate consideration: read our service charge disputes guide and the July 2026 fee update (opens in a new tab).
What changes next?
Reform proposals do not replace current consultation
The government's 15 July 2026 response says it will respond separately to proposals to reform the major works regime. Its wider charge-transparency changes are planned to start in England during 2027. Wales decides its own implementation. Keep following current Section 20 notices and deadlines. Read the government's response (opens in a new tab).
How Residents Circle helps
Use the community forum to discuss proposals, compare questions and share contractor recommendations. Keep original notices and send formal observations through the route the notice specifies.