Section 20 works and consultation
Section 20 works are major works on a block of flats that the landlord must consult leaseholders about before any one of them pays more than £250. This guide, from painters, decorators and builders in Beckenham, sets out the threshold, the consultation stages and what an estimate should show.
Which works need a Section 20 consultation
Section 20 of the Landlord and Tenant Act 1985 protects leaseholders who pay a service charge. Before carrying out “qualifying works”, the landlord has to consult them. The Act defines qualifying works simply as “works on a building or any other premises”. In practice that covers most major works, such as redecorating the outside of a block, painting the communal areas, and roof or window repairs.
The Section 20 threshold is £250. The landlord must consult if the works would make any one leaseholder's contribution more than £250. The cost includes VAT and any consultants' fees, such as a surveyor's. Where flats pay different shares, the test is the flat that pays the largest share.
A separate rule covers long-term agreements, such as a cleaning or maintenance contract lasting more than twelve months (a “qualifying long-term agreement”). These need consultation if any leaseholder would pay more than £100 in an accounting period.
The three stages, step by step
Unless the works need public notice, the consultation has three stages, set out in Schedule 4 of the Service Charges (Consultation Requirements) (England) Regulations 2003. Landlords who must advertise the works publicly follow a different version, in which leaseholders cannot nominate a contractor.
Notice of intention. The landlord writes to every leaseholder, and to any recognised tenants' association, describing the works and why they are needed. The notice invites written comments and the name of a contractor the landlord should ask for an estimate. You have 30 days, counted from the date of the notice. The Leasehold Advisory Service (LEASE) notes that for a posted notice, that date is usually treated as two working days after posting.
Statement of estimates. The landlord gets estimates and sends a free statement giving the price of at least two of them, with a summary of the comments received and the landlord's reply. At least one estimate must come from someone wholly unconnected with the landlord. If a nominated contractor gave an estimate, it must be one of those in the statement. All the estimates must be open to inspection, and a second 30-day period for comments follows.
Notice of reasons. Within 21 days of signing the contract, the landlord explains why they chose that contractor. This notice is not needed if the contract goes to a nominated contractor or to the lowest estimate, and it does not open a new comment period.
Because stages one and two each allow 30 days for comments, The Property Institute, the trade body for residential leasehold management, says a consultation takes at least two to three months, even when estimates come in quickly. It advises agents to allow a little more than 30 days in case of postal delays. The law itself sets no total length.
When the landlord does not consult
If the landlord skips the consultation or gets it wrong, each leaseholder's contribution to the works is capped at £250. The cap is a ceiling, not a flat charge: each leaseholder still pays only their share under the lease. In a block of eight flats with equal shares, for example, the most the landlord could recover is 8 × £250, or £2,000.
You can also challenge the charge if the landlord went through the stages but did not follow the rules properly, for example by ignoring your written comments.
Dispensation and urgent works
Dispensation is the First-tier Tribunal's permission for the landlord to skip some or all of the consultation. The landlord can apply before or after the work, and the tribunal can agree if it finds that reasonable. A landlord might apply in advance when, for example, the works are very urgent, such as a serious roof leak or an unsafe building; all the leaseholders already agree the work is needed; or only a few specialist contractors can do it, such as work on a particular make of lift or on heritage stonework. If you challenge a charge, the landlord is likely to apply for dispensation, even if the work is already done. Dispensation does not settle the price: you can still challenge the charge if you think it is unreasonable.
Since the Supreme Court's decision in Daejan Investments v Benson (2013), the tribunal asks whether leaseholders were prejudiced by the failure: whether they paid for inappropriate works or paid more than was appropriate. If you think you lost out:
- pay the bill, but say in writing that you are paying under protest;
- set out what you would have said if you had been consulted properly, such as nominating a cheaper contractor or suggesting changes to the works;
- show how that would have saved you money.
Once leaseholders show a credible case, the landlord must answer it. If there was no loss, the tribunal usually grants dispensation. If there was, it can refuse dispensation, so the £250 cap applies, or grant it on condition that the service charge is reduced to make up the loss. It can also require the landlord to pay the leaseholders' reasonable costs of the application.
If you run the block yourselves
The Property Institute (TPI) points out that the law makes no distinction between a professional landlord and leaseholders managing their own block through an RMC or RTM company, and that tribunals have applied the rules strictly: an honest mistake, or following the “spirit” of Section 20, may not be enough. If the consultation fails, the shortfall above the £250 cap has to come from somewhere, and TPI warns that the RMC's directors could be liable for negligence. It also notes why a friendly block still needs the formal process: a flat may be sold mid-works to a new owner, or the work may turn out poor, and then leaseholders may refuse to pay.
Reasonable costs and the tribunal
A proper consultation does not make every charge payable. Under section 19 of the 1985 Act, costs count only if they are reasonably incurred and the work is of a reasonable standard. Under section 27A of the same Act, a leaseholder can ask the tribunal whether a charge is payable, even before the work is done. LEASE explains how to challenge a service charge at the tribunal.
What a contractor provides during a Section 20
For a redecoration or repair job, a useful estimate:
works from a written specification, so every contractor prices the same job;
is broken down by area and item: access and scaffolding, repairs, preparation, the number of coats and the finish;
states what is excluded and what would be charged as extra;
says how long the price holds, which matters when the consultation runs for months.
A leaseholder's final bill usually covers more than the contractor's price: surveyor's and managing agent's fees, any contingency and VAT. Ask for each to be shown separately, so it is clear what you are being asked to pay for.
When you reply to the notice of intention, your written observations can ask what the works include, question whether they are needed, ask whether a reserve or sinking fund will cover part of the cost, and suggest other ways of doing the work. From a contractor's side, useful questions are whether a repair would do instead of a replacement, whether the specification sets out the preparation and the number of coats, and whether scaffolding can serve other planned works, such as roof or window repairs, instead of going up twice. LEASE's guide to responding to a Section 20 consultation covers each notice, and LEASE also publishes example notices showing what a private landlord's notice usually contains.
If you are a leaseholder, you can nominate a contractor by sending their details in writing to the address in the notice within the first 30 days. The landlord must try to get an estimate from them. The notice should explain any criteria the landlord will use, such as insurance or certificates, and managing agents often ask a nominated contractor for proof of insurance, health and safety arrangements and references before they accept an estimate. To nominate us, give our company name, Andrews Building & Decorating Services Ltd, and our registered address, 78 Beckenham Road, Beckenham BR3 4RH.
For our other guides, see our decorating and building guides.
We paint and repair communal areas and the outside of blocks: see our communal area painting and exterior painting pages. Leaseholders, managing agents and freeholders can contact Andrews Building & Decorating to ask for an estimate.
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Frequently asked questions
Call 020 8249 7303
Can I refuse to pay a Section 20 bill?
Not if the landlord consulted properly, the work is needed and the cost is reasonable. If the landlord didn't consult and the tribunal hasn't excused it, your share is capped at £250. If you disagree, you can pay, say in writing that you are paying under protest, and ask the First-tier Tribunal to decide whether the charge is payable: the law says paying does not by itself count as agreeing to it.
Who pays for Section 20 works?
The leaseholders pay through the service charge, in the shares each lease sets out, with usually no cap as long as the charges are reasonable, and a reserve or sinking fund may cover some or all of it. Councils and housing associations usually offer payment plans for major works, private landlords can be asked but do not have to, and the Building Safety Act 2022 protects some leaseholders from the cost of fixing unsafe cladding and other historic safety defects.
Can the landlord bill me before the consultation?
Yes, if your lease allows service charges to be demanded in advance, but the landlord must still consult before starting the work.
Should I buy or sell a flat with a Section 20 notice outstanding?
That is a decision for you and your conveyancer. If you are buying, ask the seller and the managing agent what works are planned and what your share is likely to be, and factor it into your offer; if you are selling, give your conveyancer any notice you have received.
Does Section 20 apply to a share of freehold or an RTM company?
Yes. It applies to all landlords, including residents' management companies (RMCs) and right to manage (RTM) companies, so a block the leaseholders own or run must still consult even if everyone has voted for the work, and its directors could be liable for negligence if they skip it.
What if leaseholders nominate different contractors?
The landlord must try to get an estimate from the contractor with the most nominations, or from one of those tied for the most. A nomination from a recognised tenants' association counts separately, so the landlord may have to approach its nominee too.