LEASEHOLD AND FREEHOLD REFORM ACT 2024
New service charge templates
Preparing your team and Resident for 2027
The Leasehold and Freehold Reform Act 2024 is bringing changes to service charge reporting and transparency in England, with new requirements taking effect in stages from 2027.
These include standardised demands, annual reports and accounts, administration charge schedules and insurance disclosures. We are preparing Resident to support these changes and have outlined below what we will update, alongside the preparations for your team and professional advisers.
The documents linked below are the government’s consultation drafts. They may change and should be used for planning, rather than treated as the final prescribed forms.
Regulations laid in Parliament
Five sets of regulations implementing these requirements were laid before Parliament on 12 November 2026. The dates below are subject to Parliamentary approval.
The table sets out our proposed division of responsibilities. Resident’s template updates relate to documents produced through the software; your team will remain responsible for checking the information, obtaining any necessary approvals and issuing documents correctly.
Annual report
Resident: create the report template.
Your team: review the building, management, compliance and works information needed to complete it.
Service charge demand
Resident: update demand templates.
Your team: check property details, payment information and the process for issuing demands.
Detailed service charge budget
Resident: update the budget format.
Your team: review expenditure categories, apportionments and comparative figures.
Reconciliation demand
Resident: update the template.
Your team and accountant: agree the year-end figures and any balancing charges or credits before issue.
Future demand notice
Resident: update the relevant notice template.
Your team: review how costs approaching the 18-month deadline are identified, checked and notified.
Administration charge schedule
Your team: review fees, calculation methods and the process for publishing and updating the schedule.
Resident: support the revised format where produced through the system.
Insurance information
Your team and insurance broker: agree who supplies the required disclosures and revise your renewal and communication processes. Review how the information will be recorded and shared through Resident.
Service charge accounts
Your accountant and bookkeeping team: review the proposed accounts format and reporting requirements.
Resident: review supporting financial reports and data outputs.
Financial statement regarding service charge accounts
Your accountant: review the proposed statement, declarations and professional requirements.
Your team: agree instructions and allow time within the year-end process.
When the changes take effect
Moving to the new version of Resident
The new version of Resident will automatically include the updated templates for documents generated within the system, aligned with the final requirements as they take effect. Your team will still need to ensure the underlying information is complete and that your internal processes are ready.
Continuing with the existing version
If you will still be using the existing version when the relevant changes take effect, you will need to liaise with the Resident team ahead of time to schedule a review and update of your templates. Please allow for this when planning your workload and migration timetable.
For now, we recommend sharing the proposed documents with your property management and bookkeeping teams, speaking to your accountants and insurance providers, and identifying any information or processes that need attention.
