What is the section 20 consultation for landlords?

Owning a leasehold property in the UK means that you have heard of the Section 20 consultation. Major works are inevitably a part of property management, whether it’s a leaky roof or a car park that is in desperate need of maintenance. But this can also easily become a nightmare with regard to procedure. 

The Section 20 consultation is a legal requirement that is designed to ensure leaseholders don’t pay large sums of money for work to be completed on their building. As a landlord, failing to adhere to this process can lead to financial strain. Here, we’ll walk you through the Section 20 process so that you know exactly what is expected of you as a landlord. 

What is a Section 20 Consultation?

A Section 20 consultation falls under the Landlord and Tenant Act 1985, and it is there to ensure that those who pay the service charges (leaseholders) have a say in how their money is ultimately spent when it comes to qualifying works or long-term agreements. 

As a landlord, you are not allowed to hire a contractor to do repairs and then send the bill to your tenants without their knowledge. Instead, you will need to consult them using a multi-stage notification process. 

H3: When do you need to use the Section 20 consultation process?

Essentially, there are two primary thresholds that trigger the Section 20 consultation process: 

1. Qualifying works: these count as one-off repairs, maintenance or improvements made to the property. If the cost of the repairs and improvements exceeds £250, you’ll need to consult with your tenant. 
2. Qualifying long-term agreements (QLTA): these include any contracts that last for more than 12 months. They include services, such as cleaning, gardening or lift maintenance. If the cost to any one leaseholder is more than £100 in a year, you’ll need to consult your tenants. 

The 3 stages of the Section 20 consultation process

The section 20 consultation process is a series of notices that allows leaseholders to comment on the work being done and the opportunity to put forward their own contractors if they think it would be more beneficial. 

Stage 1: The notice of intention

This is the first step in the process where the landlord sends a formal notice to every leaseholder explaining the proposed work to be done and the reason behind the decision. Tenants then have 30 days from the day the notice was sent to comment and share their thoughts on this. 

This is when tenants have the opportunity to nominate any contractors they have contact with instead of your proposed contractors. 

Stage 2: Notice of estimates

Once you have received quotes from all contractors, including one from the tenant’s recommendation and one unconnected to you as the landlord, you’ll need to issue the second notice to the tenant. 

The statement needs to include a summary of the estimated quotes you’ve received, as well as make them available for tenants to have a look at. From this point, tenants have 30 days to provide their comments and thoughts on the costs involved. 

Stage 3: The notice of award of contract

If, as the landlord, you decide to award the contract to a contractor who was not the cheapest option or not nominated by the tenant, you’ll need to issue a third notice within 21 days of signing the contract.

 In this notice, you’ll need to explain to your tenants why you’ve chosen the specific contractor. This notice can be skipped, however, if you’ve chosen the contractor who is the cheapest. 

Penalties for non-compliance

If you don’t manage to follow the Section 20 consultation process properly, you could be subject to severe penalties. For example, if you failed to send out a specific notice or didn’t allow enough time in between consultations for your tenants to respond, you’ll receive a cap on how much you’ll be able to recover. 

Regardless of the actual cost of the work, you will be limited to recovering:

• £250 per leaseholder for qualifying work
• £100 per leaseholder for long-term agreements

Can you ever bypass the Section 20 consultation process? 

If you, as the landlord, can’t wait two to three months to complete the consultation due to an emergency, you’ll be able to apply to the First-tier Tribunal (Property Chamber) for a Dispensation Order under Section 20ZA.

Examples of this kind of emergency include a pipe bursting and flooding the building or a balcony becoming structurally unsafe. 

If they are deemed fit by the tribunal, they will grant a dispensation. So, if the work was necessary and the price was fair, you have a better chance of dispensation being granted. There may be times, however, where the tribunal makes the landlord pay the leaseholder’s legal costs as a condition of the dispensation. 

Key compliance tips for 2026

Keep these tips in mind when looking to implement the Section 20 consultation process so that it is done correctly: 

1. Don’t rush the calendar: make sure you also account for postage time when waiting for responses from leaseholders. Look at making the period 32-33 days to account for this. 
2. Respond to observations: make sure that you take all comments and opinions made by your leaseholders into consideration and always respond to them.
3. The “qualifying works” definition: courts will view multiple smaller jobs that are related as one, so don’t try to avoid consultation by submitting smaller £250 jobs. 
4. Professional help is an investment: if you don’t have a lot of experience running a Section 20 consultation process, you can always get a professional to help you to avoid major financial losses. 

The section 20 consultation is the backbone of being able to manage your property efficiently, and allows you to be able to move the costs of major works from your personal bank account. 

Are you looking for landlord insurance to provide extra protection for your property? If so, make sure to get in touch with our team of specialists at CIA Landlords on 01788 818 670.