Section 20 consultation
England & Wales
Section 20 consultation is the statutory process the landlord of a block of flats in England or Wales must follow before charging leaseholders for major works or long-term contracts through the service charge. Under section 20 of the Landlord and Tenant Act 1985 and the Service Charges (Consultation Requirements) (England) Regulations 2003, the landlord must consult when works will cost any one leaseholder more than £250, or a contract lasting more than 12 months will cost any one leaseholder more than £100 a year.
What counts as qualifying works and long-term agreements
Qualifying works are works on the building or its common parts, such as roof replacement, external redecoration, window renewal or lift refurbishment. The threshold is tested against each leaseholder’s share, not the total bill. In a block of 20 flats paying equal shares, a £10,000 job costs each leaseholder £500, so it needs consultation. In a block of 50 equal shares, any job above £12,500 crosses the line.
A qualifying long-term agreement is a contract for more than 12 months, such as cleaning, lift maintenance or a multi-year managing agent contract, that will cost any leaseholder more than £100 a year. Long-term agreements have their own consultation procedure, and so do works carried out under one.
The four stages for major works
Stage 1, notice of intention. The landlord gives every leaseholder, and any recognised tenants’ association, a notice describing the works and why they are needed. It invites written observations and the nomination of a contractor, allowing at least 30 days.
Stage 2, estimates. The landlord obtains estimates, including one from a contractor nominated by a leaseholder where it can, and at least one from a contractor wholly unconnected with the landlord.
Stage 3, statement of estimates. The landlord sends a statement setting out at least two of the estimates and a summary of the observations received with its responses, says where all the estimates can be inspected, and allows at least 30 days for further observations.
Stage 4, notice of reasons. If the landlord chooses a contractor who was neither nominated nor the cheapest, it must explain why within 21 days of signing the contract. With two 30-day windows and time to obtain estimates, the whole process usually takes three to four months.
What happens if the landlord does not consult
A landlord that skips or breaks the process can recover no more than £250 from each leaseholder for the works, or £100 a year for a long-term agreement, unless the tribunal grants dispensation under section 20ZA. Following the Supreme Court’s decision in Daejan Investments Ltd v Benson [2013] UKSC 14, the tribunal asks whether leaseholders suffered real prejudice from the failure, and it can grant dispensation on conditions, such as the landlord paying the leaseholders’ costs. Landlords facing genuinely urgent works, such as an unsafe roof, often apply for dispensation before starting.
In England the application goes to the First-tier Tribunal (Property Chamber). In Wales the same rules apply under the 2004 Welsh regulations, and applications go to the Leasehold Valuation Tribunal.
Proposed changes to Section 20
The £250 and £100 thresholds have not changed since 2003. In its 2025 consultation on leaseholder protections, the government proposed raising them to £600 for major works and £300 a year for long-term agreements. Its response of 15 July 2026 left major works reform for a separate, later response, so the current thresholds and stages still apply.
What Section 20 means if you let a flat
From working with self-managing landlords across the UK, we find a Section 20 bill is one of the largest unplanned costs on a leasehold buy-to-let, and it often lands with only a few months’ warning. As the leaseholder you pay it, not your tenant, and you cannot recharge it as a separate fee under the Tenant Fees Act 2019. Money already in the sinking fund may reduce what is demanded. Our guide to what to do when you get a Section 20 notice covers how to respond at each stage and how to budget for the bill.
Frequently asked questions
What is the Section 20 threshold?
£250 per leaseholder for a single set of works, and £100 per leaseholder per year for a contract lasting more than 12 months. Above either figure the landlord must consult before it can recover the full cost.
Can I refuse to pay for Section 20 major works?
Not simply by refusing. If the consultation was not followed, your liability may be capped at £250 unless the tribunal grants dispensation. If the cost itself is unreasonable, you can ask the tribunal to decide what is payable, as our guide to challenging a service charge explains.
Does Section 20 apply to RTM and residents’ management companies?
Yes. Any body that charges leaseholders a service charge under their leases must consult, including an RTM company or a residents’ management company running a block.
