Leasehold and Freehold Reform Act 2024

55 Service charge demands

(1) The LTA 1985 is amended in accordance with subsections (2) and (3).

(2) Omit the following sections—

(a) section 21 (request for summary of relevant costs);

(b) section 21A (withholding of service charges);

(c) section 21B (notice to accompany demands for service charges).

(3) Before section 22 insert—

“21C Service charge demands

(1) 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.

“Specified” means specified in regulations made by the appropriate authority.

(2) Accordingly, where a demand for payment of a service charge does not comply with subsection (1), a provision of the lease relating to non-payment or late payment of service charges does not have effect in relation to the service charge.

(3) The appropriate authority may by regulations provide for exceptions from subsection (1) by reference to—

(a) descriptions of landlord;

(b) descriptions of service charge;

(c) any other matter.

(4) Regulations under this section—

(a) are to be made by statutory instrument;

(b) may make provision generally or only in relation to specific cases;

(c) may make different provision for different purposes;

(d) may include supplementary, incidental, transitional or saving provision.

(5) A statutory instrument containing regulations under this section is subject to the negative procedure.”

(4) In the LTA 1987—

(a) in section 47 (landlord’s name and address to be contained in demands for rent etc), after subsection (3) insert—

“(3A) Subsections (2) and (3) do not apply in relation to a written demand for payment of a service charge if section 21C of the Landlord and Tenant Act 1985 requires the demand to include information which subsection (1) also requires the demand to include.”;

(b) in section 47A (building safety information to be contained in demands for rent etc), after subsection (3) insert—

“(3A) Subsections (2) and (3) do not apply in relation to a written demand for payment of a service charge if section 21C of the Landlord and Tenant Act 1985 requires the demand to include information which subsection (1) also requires the demand to include.”