© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
Leasehold properties in the UK face more regulation as the government gets to grips with the increase in flats among the nation’s housing stock.
Almost half of all new housing completed in 2006-7 was flats and with the government’s target to provide three million homes by 2020, this trend will only continue.
Most changes will be amendments to the Commonhold and Leasehold Reform Act 2002, welcomed at the time as the most significant piece of legislation affecting flat owners for generations.
Changes owners and the industry can expect include:
Requirements for landlords to provide a specified level of accounting information about service charges Rules for service charge monies to be held in designated client accounts which meet certain requirements Service charge statements to contain prescribed minimum information Obligations on accountants with respect to the service charges statement Restrictions on the type of accountants who can carry out service charge accounting Updates to the Service Charge Residential Management Code in conjunction with the Royal Institution of Chartered Surveyors A fair and efficient statutory mechanism for determining contributions of individual participating leaseholders to the purchase price, where agreement cannot be reached The proposed changes follow implementation of sections 152 and 156 of the 2002 Act. Addressing the annual meeting of the Federation of Private Residents’ Associations (FPRA), a government spokesman said stressed that the legislative program for leasehold property is ‘a priority’ and that it is important that ‘...any final provisions are appropriate for their purpose and above all workable.’