Service charges have become one of the most sensitive issues in residential block management.
Costs have risen sharply in recent years, and leaseholders are increasingly frustrated by charges that feel hard to understand, hard to compare, and even harder to challenge.
The direction of travel from government is clear: more transparency, more standardisation, and fewer barriers to challenge.
A lot of the detail is still being implemented via secondary legislation, but block management companies can prepare now—because the operational impact is mainly about how you present information and how you evidence decisions.
1) More standardised service charge information
The Leasehold and Freehold Reform Act 2024 introduced a framework to improve how service charge and insurance information is provided, and government consulted in 2025 on how to implement the new requirements (including new standardised formats and documents).
For managing agents, the practical shift is towards:
- clearer, more consistent service charge demands
- more usable annual reporting
- service charge accounts that are easier for leaseholders to scrutinise and compare year-on-year
2) Stronger focus on “value for money” and service standards
The same consultation is not just about numbers—it’s also about helping leaseholders understand what services they’re getting and whether those services are reasonable. That pushes the industry toward better evidence: specifications, KPIs, inspection notes, and performance reporting that ties spend to outcomes.
In plain terms: it’s harder to defend a cost if you can’t show the standard delivered.
3) Buildings insurance transparency
Buildings insurance is a major line item and a frequent source of disputes. The 2024 Act includes measures aimed at improving transparency around building insurance policies and charges, and the 2025 consultation asked how this information should be provided.
That means block managers should expect growing pressure to:
- explain policy details in plain English
- show how commissions/fees (where applicable) are treated
- evidence that insurance arrangements represent fair value
4) Major works consultation and Section 20 reform direction
Major works are where relationships break down fastest—large bills, surprise scopes, competing professional opinions. Government has signalled reform of the major works regime as part of the wider package to protect leaseholders and improve confidence in how costs are incurred and recovered.
Even before any rule changes land, the best protection is process: clear scoping, staged consultation, transparent tendering, and an audit trail that explains why decisions were made.
5) Possible regulation/qualification expectations for managing agents
One of the most important signals in the 2025 consultation is the direction toward mandatory qualifications / professional standards for managing agents.
For the industry, that’s less about box-ticking and more about raising the baseline: consistent competence, better complaints handling, and more reliable delivery for residents and clients.
What block management companies can do now
You don’t need to wait for every regulation to be final to improve outcomes. A practical short list:
- Make service charge packs easier to read: plain-English summaries, consistent headings, and a “what changed this year?” box.
- Tie spend to service: link each major cost line to the service delivered, inspection outcomes, and contractor performance.
- Run a pre-issue sense-check: would a leaseholder understand this without a managing agent interpreting it?
- Strengthen procurement evidence: tender comparisons, scope notes, and reasons for appointment.
- Improve communication rhythm: fewer surprises, more predictable updates—especially around major works.
How Langford Estates can help
Service charges become contentious when information is unclear, works feel poorly controlled, or communications come too late.
Langford Estates helps landlords and management clients tighten the day-to-day systems behind service charges—from contractor management and specification control, to compliance-led oversight, reporting, and documentation that clearly supports decisions.
The goal is simple: better transparency, fewer disputes, and smoother delivery of services that protect long-term asset value.