--- title: "Service Charge Regulations 2026: What the Five New Rules Do" url: https://manage.management/blog/service-charge-regulations-2026-what-the-five-new-rules-mean-for-your-block description: "Service charge regulations 2026: the five rules laid on 12 November, the insurance disclosure document, the commission ban and what RMCs must do by 2027." author: "Franklin Baeza" published: 2026-11-13T06:33:33.000Z updated: 2026-11-13T07:36:29Z categories: ["Service Charges","Governance & Compliance"] publisher: Manage.Management language: en-GB --- # Service Charge Regulations 2026: What the Five New Rules Do Service charge regulations 2026: the five rules laid on 12 November, the insurance disclosure document, the commission ban and what RMCs must do by 2027. On 12 November 2026 the government laid five sets of regulations in Parliament that switch on the service charge reforms in Part 4 of the Leasehold and Freehold Reform Act 2024. Subject to approval, leaseholders in England can request service charge information and are protected from landlords' legal costs from 1 April 2027, and from 1 November 2027 private landlords, including RMCs and RTM companies that demand service charges under section 30 of the Landlord and Tenant Act 1985, must use standard demand forms, accounts and annual reports. The insurance rules are already made: under the Building Insurance Information (England) Regulations 2026, landlords must give leaseholders a Building Insurance Disclosure Document within 60 days of each policy being taken out. This post explains what each of the five regulations does, which parts are confirmed and which still need a vote, and what resident directors should do now. It is written by Manage.Management, the UK block management platform for RTM and RMC directors, leaseholders and managing agents. It covers leasehold flats in England and is general information, not legal advice. ## Key takeaways - Five statutory instruments were laid on 12 November 2026. Three need approval by both Houses of Parliament before they can take effect. - The Building Insurance Information (England) Regulations 2026, SI 2026/1181, were made on 10 November 2026 and come into force on 1 November 2027. - From 1 November 2027, landlords must give leaseholders a Building Insurance Disclosure Document within 60 days of a policy being effected, including commissions, quotes obtained and any connections with the insurer or broker. - From 1 November 2027, commission-sharing with landlords and managing agents is banned and replaced by a transparent "permitted insurance payment". - From 1 April 2027, landlords will in most cases need court or tribunal approval to recover legal costs through a service or administration charge, with a limited exemption for lower-value costs. - A sixth set of regulations on litigation costs will be laid before the end of 2026. ## What are the five regulations laid on 12 November 2026? They are five linked statutory instruments that put the detail into the 2024 Act. The housing minister's [written ministerial statement HCWS470](https://questions-statements-api.parliament.uk/api/writtenstatements/statements/1959311) says three are subject to the affirmative procedure and need parliamentary approval. [The Property Institute's summary](https://www.tpi.org.uk/guidance/government-news/lafra-2024-part-4-regulations-laid/) names all five: | Regulations | What they do | Main start date | | --- | --- | --- | | Service and Administration Charges (England) Regulations 2026 | Standard forms for demands, annual reports, accounts, future demand notices and administration charge schedules; the information leaseholders can request and response times | 1 April 2027 (information), 1 November 2027 (forms) | | Service Charge (Qualified Accountant) (England) Regulations 2026 | Who can act as the qualified accountant for the new service charge accounts | 1 November 2027 | | Building Insurance (Permitted Insurance Payments) (England) Regulations 2026 | Bans recovering landlord and managing agent insurance commissions through the service charge; allows a permitted payment for real work | 1 November 2027 | | Building Insurance Information (England) Regulations 2026 (SI 2026/1181) | The Building Insurance Disclosure Document, its content and deadlines, including for brokers and insurers | 1 November 2027 | | Litigation Costs (Exceptions from Limitations of Service and Administration Charges) (England) Regulations 2026 | The exception and suspensions to the rule that landlords need approval to recover legal costs | 1 April 2027 | The start dates themselves are already law under the [Commencement No. 4 Regulations](https://www.legislation.gov.uk/uksi/2026/1128/contents/made), which we explained in our post on the [confirmed timetable for the 2027 reforms](https://manage.management/blog/leasehold-reform-timetable-confirmed-service-charge-insurance-and-legal-cost-changes-from-2027). The government's [announcement on 11 November 2026](https://www.gov.uk/government/news/flat-owners-handed-massive-boost-to-fight-rip-off-service-charges) says councils and housing associations get an extra 12 months, to 1 November 2028, for the new demands, accounts and annual reports. At the time of writing, only SI 2026/1181 is published on legislation.gov.uk. The draft text of the other four was not yet available, so the details below for those come from the ministerial statement and The Property Institute's summary. Check the final text before relying on a specific deadline. ## What must the Building Insurance Disclosure Document include? It must set out who insures the building, how the policy was chosen, what it covers and costs, and who earns what from it. [Regulation 3 of SI 2026/1181](https://www.legislation.gov.uk/uksi/2026/1181/made) lists the content: 1. Insurer and broker. Names, addresses and contact details, and how to make a claim. 2. How the policy was chosen. The number of insurers asked for quotes, the number of alternative quotes obtained, and the landlord's reasons for choosing the policy or for not getting quotes. 3. Cover. Policy number, type, period, a summary of insured and excluded risks, any excess, and the main features and benefits. 4. Values. The reinstatement value and the sums insured for the building and, where stated, the flat. 5. Cost. The total premium, Insurance Premium Tax, any VAT and the cost payable by the leaseholder. 6. Payments and connections. Any commission to a broker or third party, other remuneration or incentives, non-monetary benefits, and any corporate or insurance connections, including shared directors or persons with significant control. The deadlines are tight. The landlord must ask brokers and other parties for the information within 14 days of the policy being effected, they must reply within 14 days, and the landlord must give leaseholders the document within 60 days of the policy being effected. If the landlord receives the policy more than 10 days late, the 60 days run from receipt. If a tribunal orders compliance, the landlord has 14 days. The regulations contain no exemption for small buildings or resident-led companies. Our guide to [what leaseholders can see about buildings insurance today](https://manage.management/blog/buildings-insurance-for-blocks-of-flats-what-leaseholders-are-entitled-to-see) explains the current rules. ## What happens to insurance commissions? From 1 November 2027, landlords and managing agents can no longer pass their insurance commissions on to leaseholders. The ministerial statement says commission-sharing "will be banned and replaced with transparent permitted insurance payments", so leaseholders pay only for specific insurance-related work. According to The Property Institute, permitted insurance payments can be recovered only through variable service charges, and leaseholders can apply to the tribunal to recover anything charged in breach and for damages. Broker commission is not banned outright, but the disclosure document must show it. If your RMC receives any commission or fee linked to the block's policy, review it now. ## What changes on 1 April 2027? Two rights start in April 2027: a statutory right to request information, and new limits on landlords' legal costs. Both apply to existing leases from the day they start. - Information requests. Leaseholders can ask for information about service charges, insurance and the management, maintenance and repair of the building, including from previous years. The Service and Administration Charges Regulations set what can be requested, response periods and limited exceptions. - Legal costs. Landlords will in most cases need court or tribunal approval before recovering litigation costs through a service or administration charge. The statement confirms "a targeted, proportionate exemption" so that lower-value costs recovered as administration charges do not need approval. Leaseholders also gain a right to recover their own costs, with approval. - Future demand notices. The Property Institute says landlords who bill costs more than 18 months after incurring them must first send a prescribed future demand notice, replacing the current section 20B notice. Our guide to [the 18-month rule under section 20B](https://manage.management/blog/section-20b-the-18-month-rule-on-late-service-charge-demands) explains how that rule works today. The new litigation cost rules do not apply to proceedings issued before 1 April 2027. A further set of regulations on litigation costs will be laid later in 2026. Our guide to [administration charges](https://manage.management/blog/administration-charges-what-landlords-can-charge-and-how-to-challenge-them) covers the legal cost changes for fees in more detail. ## What changes on 1 November 2027? Most of the day-to-day paperwork changes for private landlords, including resident-led companies, on 1 November 2027. Demands, accounts, annual reports, insurance information and administration fees all move to prescribed forms. - Standard demands. If a service charge demand is not in the prescribed form, lease terms on non-payment and late payment do not apply to that charge, according to The Property Institute. - Accounts and annual reports. Where costs are shared between four or more homes, The Property Institute says landlords must provide an annual statement of account with a qualified accountant's report within six months of the end of each accounting period, and an annual service charge report within one month. See our guide to [preparing service charge accounts](https://manage.management/blog/service-charge-accounts-how-to-prepare-them-right). - Administration charge schedules. Every landlord must publish a schedule of its administration fees. A fee is payable only once it has been on the schedule for 28 days. - Insurance. The disclosure document and the commission ban begin, for all landlords including councils and housing associations. ## What should RMC and RTM directors do now? Start with records and templates, because both April and November 2027 rules reach back into your existing paperwork. The steps below follow The Property Institute's guidance to its members and the published regulations. 1. Gather six years of records. Make invoices, insurance documents, accounts and contracts easy to find, ready for information requests from April 2027. 2. Ask your broker for disclosure now. Request the commission, quotes and connection details you will need for the disclosure document, and agree how the broker will meet the 14-day deadlines. 3. Diary future demand notices. List any costs you may bill more than 18 months after they are incurred. 4. Stop planning to charge legal costs automatically. From 1 April 2027, assume you need an order unless the lower-value exemption applies. 5. Draft your administration charge schedule. List every fee and its lease basis, ready to publish before 1 November 2027. 6. Talk to your accountant and software provider. Ask whether they will meet the qualified accountant rules and support the new demand, account and report forms. The [Manage.Management service charge tools](https://manage.management/features/service-charges) keep demands, invoices and payments in one record for self-managed blocks, and our [page for RMC and RTM directors](https://manage.management/directors) explains how the platform supports resident-led boards. ## Frequently asked questions ### When do the new service charge rules start? The rules start in three stages in England, subject to parliamentary approval of three of the five regulations. Information requests and the legal cost limits start on 1 April 2027. Standard demands, accounts, annual reports, insurance disclosure and administration charge schedules start on 1 November 2027 for private landlords. Councils and housing associations follow for demands, accounts and reports on 1 November 2028. ### Do the new rules apply to RMCs and RTM companies? Yes, in most cases. Section 30 of the Landlord and Tenant Act 1985 says a landlord includes any person with a right to enforce payment of a service charge, which covers RMCs and RTM companies that demand service charges. They must use the new forms from 1 November 2027. The insurance information regulations contain no exemption for small or resident-led blocks. Check the final text of the remaining four regulations for any specific exceptions. ### What is a Building Insurance Disclosure Document? It is a standard document that landlords must give leaseholders under SI 2026/1181 from 1 November 2027. It shows the insurer and broker, how many quotes were obtained and why the policy was chosen, the cover, excess, reinstatement value, premium and taxes, the leaseholder's share, and any commissions or connections. It must be provided within 60 days of the policy being effected. ### Are insurance commissions banned? From 1 November 2027, landlords and managing agents cannot pass their own insurance commissions on to leaseholders through the service charge. They can recover a transparent permitted insurance payment for real work arranging and managing the policy instead. Commission paid to a broker is not banned, but it must be shown in the Building Insurance Disclosure Document so leaseholders can see it. ### Are the regulations law yet? Not all of them. The Building Insurance Information (England) Regulations 2026 were made on 10 November 2026 and take effect on 1 November 2027. Three of the five regulations need a vote in both Houses of Parliament before they can be made. A sixth set on litigation costs will be laid before the end of 2026. The start dates are already fixed by the Commencement No. 4 Regulations. ## Service charge regulations 2026: the short answer The five regulations laid on 12 November 2026 turn the 2024 Act's service charge reforms into working rules. From April 2027 leaseholders gain information rights and protection from landlords' legal costs, and from November 2027 every private landlord, including RMCs and RTM companies, must use standard demands, accounts, reports and an insurance disclosure document. Directors have about a year to prepare. Last reviewed: 13 November 2026 by Franklin Baeza, Manage.Management. This article is general information for England and Wales, not legal advice. Check the current position with a qualified adviser before acting. --- Source: [Service Charge Regulations 2026: What the Five New Rules Do](https://manage.management/blog/service-charge-regulations-2026-what-the-five-new-rules-mean-for-your-block) on the Manage.Management blog.