Landlord Section 20 Consultation UK 2026 — Major Works Service Charge Process

What triggers Section 20 consultation?

Section 20 is triggered by 'qualifying works' — works on a building or its common parts where the contribution of any one leaseholder would exceed £250:

• The threshold is £250 per leaseholder per set of works — if the total works cost £10,000 and there are 10 equal-share leaseholders, each paying £1,000, the threshold is clearly exceeded
• The works must be ones whose costs are recoverable via a service charge under the lease
• Section 20 does not apply to routine or planned maintenance within existing long-term agreements (those are covered by separate Section 20ZA qualifying long-term agreements)
• Emergency works where carrying out the consultation would cause unreasonable delay are exempt — but the landlord must still give notice to leaseholders of the works as soon as reasonably practicable and apply to the Tribunal for retrospective dispensation
• Both England and Wales are covered under the same legislation
• Right-to-manage companies (RTMs) that took over management from a freeholder are bound by Section 20 in exactly the same way as the freeholder was

Stage 1: Notice of Intention

The first stage is a written Notice of Intention sent to all leaseholders and any recognised tenants' association (RTA):

• The Notice must describe the works in general terms, say why the landlord considers the works necessary, and invite leaseholders to make written observations within 30 days
• The notice must also invite leaseholders to nominate a contractor they would like to be invited to tender for the works within 30 days
• The Notice must be served on every leaseholder and on any RTA. Service can be by first class post, hand delivery, or electronic means if the lease permits
• The 30-day observation period is a minimum — you cannot move to Stage 2 until the observation window closes
• You must have regard to any observations received (you are not bound by them, but you must consider them and respond if requested)

Stage 2: Notification of Estimates

After the 30-day Stage 1 period, you must obtain at least two competitive estimates and circulate them:

• Obtain at least two estimates from different contractors. If a leaseholder nominated a contractor in Stage 1, you must include that contractor in the tendering process (and invite them to tender even if they do not respond)
• Send a notice to all leaseholders and any RTA that: (a) lists the estimates obtained, (b) summarises the observations received in Stage 1, (c) invites further observations on the estimates within 30 days
• Include a copy of the estimate from any nominated contractor and one other estimate — or, if you prefer a contractor whose estimate was not the lowest, give reasons in writing why
• The estimate notice must show the full names and addresses of all contractors who provided estimates
• Again, have regard to observations received during this 30-day period

Stage 3: Notice of Reasons (if preferred contractor is not lowest)

If you award the contract to a contractor who did not provide the lowest estimate, a further notice is required:

• If the lowest estimate comes from a contractor who was nominated by a leaseholder and you do not choose that contractor, you must serve a notice explaining why
• If the chosen contractor was neither the lowest-price estimate nor a nominated contractor, serve a notice explaining why the chosen contractor was selected
• This notice is served within 21 days of the contract being awarded
• Failure to provide a valid written reason for preferring a higher-cost contractor exposes you to a service charge challenge at the First-tier Tribunal

Penalty for failure: the £250 cap

Failure to comply with the Section 20 process has a specific statutory penalty:

• If you fail to carry out any required stage, or if you fail to allow the required 30-day observation periods, you lose the right to recover more than £250 from any individual leaseholder for those works through the service charge
• This cap applies regardless of the actual cost of the works — if the works cost £50,000 and you have 20 leaseholders who each should pay £2,500, you can only recover £250 from each (a total of £5,000 vs £50,000)
• The cap applies per set of works — deliberate splitting of works into smaller projects to avoid the threshold is likely to be treated by the Tribunal as a single set of qualifying works
• Leaseholders may raise Section 20 compliance as a defence in any First-tier Tribunal (Property Chamber) application to determine the reasonableness of service charges

Dispensation from Section 20 consultation

The First-tier Tribunal (Property Chamber) can grant dispensation from all or part of the Section 20 consultation process:

• Grounds for dispensation: urgency (works needed immediately to prevent further damage), or where consultation would be unreasonably burdensome given the circumstances
• Retrospective dispensation: where emergency works have already been carried out, the Tribunal can grant dispensation retrospectively. The landlord must show the works were genuinely urgent and cannot be reversed
• Prospective dispensation: apply before starting works if you have urgent circumstances. The Tribunal can grant dispensation subject to conditions
• Dispensation is not automatic — the Tribunal must be satisfied that it is just and equitable to do so, having regard to any prejudice caused to leaseholders
• Apply as soon as possible if emergency works are required — delay in applying for dispensation damages your credibility before the Tribunal
• Costs awards: the Tribunal can order costs against landlords who have behaved unreasonably in failing to follow the consultation process without applying for dispensation

Frequently asked questions