By law, landlords must consult before carrying out certain works or entering into a long-term agreement with a contractor or supplier.
A Section 20 consultation is a legal process in the UK that landlords must follow before carrying out certain types of work or entering into long-term agreements that tenants or leaseholders will be required to contribute to through their service charges.
It comes from Section 20 of the Landlord and Tenant Act 1985, as amended by the Commonhold and Leasehold Reform Act 2002. The purpose is to protect leaseholders from unexpected or excessive costs.
Landlords must consult leaseholders if they plan to:
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Carry out major works that will cost any individual leaseholder more than £250
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Enter into a long-term agreement (lasting more than 12 months) for services or works that will cost any tenant or leaseholder more than £100 per year.
The process typically includes:
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Notice of intention – informing leaseholders of the proposed works or agreement and inviting observations
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Estimates and proposals – providing details of proposed contractors and costs
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Observations and feedback – leaseholders can comment or nominate contractors
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Notification of award – informing leaseholders of the chosen contractor and reasons.
We must issue a Notice of Intention to carry out works or enter into a long-term agreement. It must include:
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A general description of the proposed works or services
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The reasons for carrying them out
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An invitation for leaseholders to submit observations within 30 days
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An opportunity to nominate contractors to be invited to tender.
After receiving tenders, we (the landlord) must issue a Notice of Estimates. It must include:
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At least two estimates (including any nominated contractor)
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A summary of leaseholders’ observations from Stage One
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An invitation to comment on the estimates within 30 days.
This stage is required only if the chosen contractor is not the lowest bidder or was not nominated by tenants or leaseholders
We must issue a Notice of Reasons, explaining why they selected that contractor.
Public notice
In UK public procurement, a public notice is an official announcement that informs suppliers and the public about key stages in a procurement process. These notices are required under the Procurement Act 2023 and are part of a broader transparency regime designed to ensure fairness, openness and accountability in how public contracts are awarded.
These notices are typically published on platforms like Find a Tender, Contracts Finder, or relevant devolved portals.
In this scenario, you will not have the right to suggest a contractor. This will be made clear in the Notice.
Frequently Asked Questions
Residents are consulted because the proposed works or agreements exceed cost thresholds (£250 for major works or £100/year for long-term contracts) and will be charged through service charges.
Yes, if the works are deemed necessary and the consultation process is properly followed. However, you can challenge costs if you believe they are unreasonable.
Yes, during Stage one of the consultation, you can nominate contractors to be invited to tender.
If the process isn’t followed correctly, YHG (the landlord) may only recover a limited amount from you (typically capped at £250 per leaseholder for major works).
You can submit observations during the consultation period, and these must be considered by YHG (the landlord). However, objections don’t automatically stop the works.
Contractors are selected based on tenders received. If the chosen contractor isn’t the lowest bidder or wasn’t nominated, we (YHG) must explain their decision in a Notice of Reasons.
You can challenge costs through the First-Tier Tribunal (Property Chamber) if you believe charges are unreasonable.
Yes, you typically have 30 days to respond to each stage of the consultation.
It’s a contract lasting more than 12 months for services like cleaning or maintenance, which also requires consultation if costs exceed £100 per customer per year.
Yes, we must provide at least two estimates and allow you to inspect them during Stage Two.