Section 20 Consultation Guide | Coopers Inventory Services

Section 20 refers to consultation requirements under the Landlord and Tenant Act 1985, together with the accompanying regulations.

In simple terms, the process gives affected leaseholders advance information about certain proposed expenditure and an opportunity to make observations before significant costs are incurred through their service charges.

Section 20 can apply to:

Qualifying Works

Major works where the contribution required from any one leaseholder exceeds £250.

and

Qualifying Long-Term Agreements

Certain agreements lasting more than 12 months where the contribution required from any one leaseholder exceeds £100 in an accounting year.

The rules are intended to provide transparency and give leaseholders an opportunity to have input into expenditure for which they may ultimately have to pay.

“Qualifying works” can cover works carried out to a building or other premises for which leaseholders are required to contribute through their service charges.

Depending on the building and lease, examples could include:

The crucial issue isn't simply whether somebody describes the project as “major works.”

The Section 20 consultation requirements generally become relevant where the cost attributable to any individual leaseholder exceeds £250.

An Example

Suppose major external works to a block will cost £20,000.

If there are 10 leaseholders each required to contribute £2,000, the £250 threshold is clearly exceeded.

Section 20 consultation would therefore ordinarily be required before proceeding, subject to the particular circumstances.

Section 20 isn't only about one-off building works.

It can also apply when a landlord proposes entering into a Qualifying Long-Term Agreement, generally an agreement lasting more than 12 months where the cost payable by any one leaseholder exceeds £100 in an accounting year.

Depending upon the arrangements, this might potentially include longer-term contracts for services provided to the building.

Again, whether a particular contract qualifies depends upon the agreement and circumstances, so professional advice should be obtained where there is uncertainty.

Depending upon the management structure of the building, responsibility could sit with the party responsible for arranging the relevant works or services and recovering the cost through service charges.

That might include a:

• freeholder

• landlord

• Resident Management Company (RMC)

• Right to Manage (RTM) company

• managing agent acting on behalf of the responsible party

The precise responsibilities should be considered alongside the leases and management arrangements for the building.

The exact procedure can vary depending upon the type of works or agreement and the circumstances.

For many qualifying works, however, there are up to three main stages.

The first stage is normally the Notice of Intention.

This informs leaseholders that works are being proposed and explains the nature of those works and why they are considered necessary.

Leaseholders generally have 30 days in which to make written observations.

In applicable cases, leaseholders and a recognised tenants' association may also nominate a contractor from whom the landlord should seek an estimate.

The consultation isn't simply about informing leaseholders after a decision has already been made.

It gives them an opportunity to:

• understand what is proposed

• ask questions

• make observations

• raise concerns

• and, where applicable, nominate a contractor

The landlord must have regard to observations received during the consultation.

After the initial consultation period, estimates are obtained for the proposed works.

For the standard private-sector qualifying-works process, leaseholders are then provided with information about at least two estimates.

The notice should also include relevant information about the contractors, an indication of the leaseholder's expected contribution where possible, and a summary of observations previously received together with the landlord's response.

Leaseholders are normally given a further 30 days to submit written observations on the estimates.

This gives leaseholders another opportunity to engage with the process before the contract is awarded.

A further notice may be required once the contractor has been selected.

For example, where the landlord does not choose the lowest estimate or a contractor nominated by a leaseholder or recognised tenants' association, they may need to explain their reasons for awarding the contract to the chosen contractor.

Where required, this notice is generally issued within 21 days of awarding the contract.

Not every Section 20 consultation follows exactly the same three stages, so the appropriate procedure needs to be established for the particular works or agreement.

This is one of the most important reasons property managers and freeholders need to understand the rules.

Where the required consultation process hasn't been followed, the landlord's ability to recover the cost from leaseholders can be substantially restricted.

For qualifying works, recovery can generally be limited to:

£250 per leaseholder

and for a qualifying long-term agreement:

£100 per leaseholder per year

unless the landlord obtains dispensation from the consultation requirements.

That can have serious financial consequences.

Imagine works costing £50,000 are carried out on a block containing ten leasehold flats without the required consultation.

If the landlord subsequently discovers that recovery from the leaseholders is restricted, the financial exposure could be significant.

This is why Section 20 shouldn't be treated as an administrative formality to deal with after the works have been commissioned.

Sometimes it isn't practical to complete the normal consultation procedure before works need to begin.

An emergency might require urgent action to protect the building or its occupants.

In appropriate circumstances, a landlord can apply to the First-tier Tribunal (Property Chamber) for dispensation from some or all of the consultation requirements.

That does not mean that calling something an emergency automatically removes the Section 20 requirements.

Where urgent major works are required and the normal consultation process cannot reasonably be followed, appropriate specialist or legal advice should be obtained. The Government provides a specific tribunal procedure for applications for dispensation.

Not necessarily.

Section 20 provides leaseholders with a right to be consulted.

It doesn't generally give an individual leaseholder an automatic veto over necessary works.

Leaseholders can make observations about matters such as:

• whether the work is necessary

• the proposed scope

• costs

• estimates

• contractors

• timing

• concerns about the proposals.

The responsible landlord or management company must have regard to relevant observations, but consultation does not necessarily mean that everyone must agree before works can proceed.

No.

The lowest estimate doesn't automatically have to win.

There may be legitimate reasons for selecting another contractor — experience, specification, quality, capability or other relevant factors may be important.

However, choosing a contractor other than the lowest tender or an appropriately nominated contractor can trigger additional requirements to explain the reasons for that decision.

The important principles are transparency, proper consultation and a documented decision-making process.

Section 20 itself is not an inventory service.

But there is a useful connection for property and block managers.

Major works often arise because the condition of a building, communal area or component has changed or deteriorated.

Maintaining good property records can therefore be valuable in professional property management.

Depending upon the property and management arrangements, records might include:

Property condition reports

↓

Inspection records

↓

Maintenance reports

↓

Specialist surveys where required

↓

Works identified

↓

Section 20 consultation where applicable

↓

Works undertaken

↓

Updated property records

The important distinction is that an inventory or inspection report may document visible condition, but it doesn't determine whether Section 20 applies or replace a specialist survey, specification of works or statutory consultation.

For block and property managers, good record keeping becomes particularly important because multiple parties may be involved.

That could include:

• freeholders

• leaseholders

• managing agents

• contractors

• surveyors

• insurers

• Resident Management Companies

• Right to Manage companies.

Clear property records can help create a documented history of condition and observations over time.

Potentially — but this distinction is important in an article we're publishing in August 2026.

The Government has been consulting on reforms to leasehold service charges and the major-works regime, including proposals to change the Section 20 process and raise the financial thresholds.

The Government itself notes that the current £250 qualifying-works threshold has remained unchanged for more than 20 years.

However, proposals and consultations aren't the same thing as rules already in force.

For the purposes of this guide, the existing Section 20 thresholds remain:

Qualifying works: more than £250 per leaseholder

Qualifying long-term agreement: more than £100 per leaseholder per accounting year.

Before commissioning significant works:

Clear Property Records for Professional Property Management

Effective property management relies on good information and consistent records.

With more than 20 years' experience, Coopers Inventory Services works with landlords, letting agents, property managers and block-management professionals across Surrey and surrounding areas.

Our professional property reporting services provide detailed written and photographic records of visible property condition, helping clients maintain clear and consistent documentation.

Where a report identifies a matter requiring specialist investigation, maintenance or further assessment, the appropriate property professional can then determine the next steps.

Coopers does not administer Section 20 consultations, determine service-charge liability, provide legal advice or certify compliance with leasehold legislation.