Section 20 – The Need for Change
In years past, when major works were needed in a block of flats, leaseholders had little say. Managing agents or landlords could spend large sums without consultation — a system ripe for abuse. Thankfully, legislative changes introduced the Section 20 consultation process under the Landlord and Tenant Act 1985 to protect leaseholders by requiring formal consultation before significant expenditure.
However, the pendulum may have swung too far.
The current Section 20 rules are rigid, complex, and often unworkable in practice — particularly for smaller blocks. The law applies the same consultation requirements to a three-flat converted house as it does to a 300-unit development. This lack of proportionality frequently leads to unnecessary delays, mounting frustration, and rising costs.
At Colin Cohen Property Management, we manage many smaller blocks — typically under 24 units — across North and Greater London. Despite leaseholders often unanimously agreeing on urgent or necessary works, the requirement to complete a full consultation (or seek dispensation via the First-tier Tribunal) can delay essential repairs, cause additional damage, and inflate costs.
The consultation process, while well-intentioned, is increasingly being misused or misunderstood. In smaller, resident-led freehold or Right to Manage companies, where owners have full oversight and agree on the works, the law still forces a bureaucratic and time-consuming process — even when funds are available and no objections are raised.
I have raised this issue with The Property Institute (formerly ARMA and IRPM), ALEP, and the FPRA, all of whom recognise the issue. However, no legislative change has been made, and the Government currently has no plans to revise the Section 20 thresholds. This is surprising, as an amendment to the consultation limits could be achieved through secondary legislation — a simple and efficient parliamentary process.
The current framework is no longer fit for purpose. I urge all sectors of the residential leasehold industry to unite in calling for reform. The law must become more flexible, scalable, and practical — particularly for smaller blocks and resident-controlled buildings.
Until then, this “one-size-fits-all” approach will continue to frustrate responsible leaseholders, delay essential works, and undermine the very protections the law was meant to provide.