Leasehold building-insurance fee rules are due from 1 November 2027

• The government said five sets of regulations are being laid in Parliament on 12 November under the Leasehold and Freehold Reform Act 2024, subject to Parliamentary approval. The texts were not yet published on legislation.gov.uk.
• From 1 November 2027, leaseholders in England are due to receive detailed building-insurance information and stronger protections against excessive or unreasonable fees for arranging and managing that insurance, the government said. Commencement regulations made on 25 October already set that date.
• From 1 November 2027, the 2024 Act's restriction on recovering insurance-arranging and management costs through variable service charges is due to apply in England, with permitted payments to be defined in regulations subject to Parliamentary approval.

The government said five sets of regulations are being laid in Parliament on 12 November, subject to Parliamentary approval, to give leaseholders in England service-charge and building-insurance protections.

From 1 November 2027 they will get "detailed information about the building insurance they help pay for, along with stronger protections against excessive or unreasonable fees for arranging and managing that insurance", the Ministry of Housing, Communities and Local Government said. A commencement order made on 25 October sets that date in England for the insurance provisions of the Leasehold and Freehold Reform Act 2024.

Section 59 of the Act sets out the forthcoming restriction: costs of arranging or managing insurance, including incentives and remuneration, will be excluded from variable service charges unless attributable to "permitted insurance payments" specified in regulations. The instrument that would define those payments was not yet published on legislation.gov.uk.

The new protections would sit alongside FCA requirements in force since 31 December 2023 for multi-occupancy building insurance. These require disclosure in cash terms of total commission received by the firm and its associates, and remuneration or other financial incentives offered or given by the firm to third parties, including the freeholder. Firms must tell the customer to pass the information promptly and in full to leaseholders.

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Sources

• MHCLG: Flat owners handed massive boost to fight rip-off service charges (11 November 2026)
• The Leasehold and Freehold Reform Act 2024 (Commencement No. 4 and Saving Provision) (England) Regulations 2026 (SI 2026/1128)
• Leasehold and Freehold Reform Act 2024, section 59
• FCA PS23/14: Multi-occupancy building insurance (29 September 2023)
• FCA instrument FCA 2023/34 (ICOBS 6A.7, in force 31 December 2023)

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