Section 21: Leaseholder Rights to Cost Summaries
Your complete guide to Section 21 of the Landlord and Tenant Act 1985. Understand your statutory right to request a summary of service charge costs, the requirements for accountant certification, and how to enforce compliance when your landlord fails to respond.
What Is Section 21 of the Landlord and Tenant Act 1985?
Section 21 of the Landlord and Tenant Act 1985 gives leaseholders a powerful statutory right to request a written summary of the costs that make up their service charges. This provision forms a central part of the transparency framework built into leasehold law, ensuring that leaseholders are not required to pay charges without understanding how their money has been spent.
The Statutory Right to a Cost Summary
Under Section 21, any leaseholder who pays a variable service charge can make a written request to the landlord for a summary of the relevant costs for the most recent accounting period. This right is available regardless of the lease terms, and the landlord cannot contract out of the obligation.
The cost summary must cover the service charge accounting period and provide sufficient detail for the leaseholder to understand what expenditure was incurred and how it relates to the service charge demand. This right applies equally to residential blocks managed by private landlords, housing associations, and local authorities.
Why Section 21 Matters for Leaseholders
Without the Section 21 right, leaseholders would have no guaranteed mechanism to see how their service charge funds have been applied. The provision underpins the broader principle that service charges must be reasonable and that leaseholders should be able to verify the costs before paying.
- Transparency - leaseholders can see exactly what they are paying for and check whether costs are reasonable
- Accountability - landlords must demonstrate that service charge income has been spent properly and in accordance with lease terms
- Enforcement - non-compliance is a criminal offence, giving the provision real teeth
For a broader understanding of the statutory framework governing service charges, see our Landlord and Tenant Act 1985 guide.
How to Request a Cost Summary Under Section 21
The process for requesting a Section 21 cost summary is straightforward but must follow certain requirements to be legally effective. Understanding these requirements ensures your request triggers the landlord's statutory obligation to respond within the prescribed timeframe.
Making a Written Request
The request must be made in writing. While the Act does not prescribe a specific format, the request should clearly identify the leaseholder, the property, and the accounting period for which the summary is sought. It is advisable to send the request by recorded delivery or email with a read receipt so that you have evidence of delivery.
The request should reference Section 21 of the Landlord and Tenant Act 1985 explicitly to ensure the landlord understands this is a statutory demand rather than an informal inquiry. This removes any ambiguity about the nature of the request and the consequences of non-compliance.
Timeline for Compliance
Once a valid written request is received, the landlord must provide the summary of costs within one month of the request, or within six months of the end of the accounting period to which the charges relate - whichever deadline expires later. This dual timeframe ensures that landlords have adequate time to prepare accounts while still being held to a reasonable deadline.
- One-month deadline - from the date the landlord receives the written request
- Six-month deadline - from the end of the relevant accounting period
- Whichever is later - the landlord must comply by the later of these two deadlines
Who Can Make the Request
Any qualifying tenant who is liable to pay a variable service charge can make a Section 21 request. This includes individual leaseholders, joint leaseholders, and in some cases the secretary of a recognised tenants' association acting on behalf of its members. The right extends to all leaseholders in a building, and multiple leaseholders can make independent requests.
If you are a member of a recognised tenants' association, the secretary can make a single request covering all members, which can be a more efficient approach for larger developments.
For more detail on service charge law and your rights as a leaseholder, visit our service charge law guide.
What Must Be Included in a Section 21 Cost Summary
The Section 21 summary of costs is not merely a list of totals. The Act sets out specific requirements for what the summary must contain, and for larger buildings, it must be independently verified by a qualified accountant. Understanding these requirements helps you assess whether the summary you receive is compliant.
Statutory Requirements for the Summary
The cost summary must include the following information, broken down in a manner that allows the leaseholder to understand the expenditure:
- Total costs incurred - the overall expenditure for the accounting period covered by the summary
- Itemised breakdown - costs must be grouped by category so the leaseholder can see how money has been spent on different services
- Amounts outstanding - any costs that have been incurred but not yet paid must be separately identified
- Relevant accounting period - the period to which the summary relates must be clearly stated
- Statement of Section 22 rights - the summary must inform leaseholders of their right to inspect supporting documents
Accountant Certification for Four or More Dwellings
Where the building or development contains four or more dwellings, the summary of costs must be certified by a qualified accountant. This is a critical requirement that adds an independent layer of verification to the process. The accountant must confirm that:
- The summary is a fair summary of the costs incurred during the accounting period
- The summary is consistent with the accounting records held by the landlord or managing agent
- The expenditure shown in the summary has been properly incurred and supported by documentation
If the summary is not certified when it should be, the landlord has not complied with the Section 21 obligation. Leaseholders should check whether certification has been provided and, if not, raise this as a compliance failure.
Common Deficiencies in Cost Summaries
In practice, many cost summaries fall short of the statutory requirements. Common issues include insufficient itemisation, failure to include a statement of Section 22 rights, missing accountant certification, and presenting the summary in a format that obscures rather than clarifies expenditure. Leaseholders should review the summary carefully and raise any deficiencies with the landlord in writing.
For a comprehensive overview of service charge components and how they should be presented, see our service charge guide.
Section 22: Right to Inspect Supporting Documents
Section 22 of the Landlord and Tenant Act 1985 works in tandem with Section 21 to provide a complete transparency mechanism. Once a leaseholder has received a cost summary, Section 22 grants the right to inspect the underlying documents that support the figures in the summary. This allows leaseholders to verify the accuracy of the accounts and identify any discrepancies.
Accessing Invoices and Receipts
Under Section 22, leaseholders can request access to a wide range of supporting documentation, including:
- Invoices - original invoices from contractors, suppliers, and service providers
- Receipts - proof of payment for goods and services charged to the service charge account
- Contracts - maintenance agreements, insurance policies, and other contracts relevant to service charge expenditure
- Accounting records - bank statements, ledgers, and other financial records that underpin the cost summary
The landlord must make these documents available for inspection at a reasonable time and place within one month of the written request. The leaseholder also has the right to take copies, although the landlord may charge a reasonable fee for providing them.
The Inspection Process
The inspection must be offered at a reasonable time and place. This typically means during normal business hours at the landlord's or managing agent's office, or at the property itself. The landlord cannot make the inspection unreasonably difficult or impose excessive conditions.
If you plan to inspect the documents, it is advisable to bring a checklist of the items shown in the cost summary so you can systematically match invoices and receipts to the expenditure categories. This approach helps identify any gaps or unexplained charges.
Requesting Copies of Documents
In addition to the right to inspect, leaseholders can request copies of the supporting documents. The landlord must provide these within one month of the request. While the landlord can charge a reasonable copying fee, the fee must reflect the actual cost of reproduction and cannot be used as a deterrent. Where documents are available electronically, it is reasonable to expect digital copies at minimal or no cost.
For detailed guidance on conducting a thorough review of service charge documentation, see our service charge audit guide.
What Happens If the Landlord Fails to Comply
The Landlord and Tenant Act 1985 treats failure to comply with Section 21 seriously. Non-compliance carries both criminal penalties and practical consequences that can significantly impact the landlord's ability to recover service charges. Understanding these consequences helps leaseholders enforce their rights effectively.
Criminal Offence and Penalties
A landlord who fails to provide a Section 21 cost summary within the statutory timeframe commits a summary offence. Upon conviction, the landlord is liable to a fine. This criminal sanction applies regardless of whether the failure was deliberate or merely negligent, making it one of the stronger enforcement mechanisms available to leaseholders in service charge disputes.
It is important to note that the landlord has a reasonable excuse defence. If the landlord can demonstrate that the failure was due to circumstances beyond their control, a court may accept this as a defence. However, administrative oversight, resource constraints, or simple neglect will generally not constitute a reasonable excuse.
The Six-Month Deadline and Its Consequences
The six-month rule is particularly significant. If the landlord fails to supply the cost summary within six months of the end of the accounting period, this failure can be used as evidence in Tribunal proceedings to challenge the reasonableness of service charges. The Tribunal will consider whether the lack of transparency has prejudiced the leaseholder's ability to assess the charges.
- Evidence in disputes - failure to comply strengthens leaseholder challenges at the First-tier Tribunal
- Management failures - persistent non-compliance can support an application for the appointment of a manager
- Right to manage - a pattern of non-compliance may strengthen a collective application to exercise the Right to Manage
Withholding Service Charges
While there is no automatic right to withhold service charges simply because a Section 21 summary has not been provided, the failure to supply adequate information about costs can be a relevant factor when the Tribunal determines whether charges are reasonable. Leaseholders should exercise caution before withholding charges and should seek legal advice to understand the risks.
If you are considering withholding service charges due to non-compliance, it is advisable to place the disputed amount in a separate account and to document all attempts to obtain the cost summary. This demonstrates good faith and protects your position should the matter proceed to the Tribunal.
For guidance on handling service charge disputes and arrears, see our service charge arrears guide.
Using Sections 21 and 22 Effectively
Knowing your rights under Sections 21 and 22 is only part of the picture. Using these provisions strategically can make a significant difference in service charge disputes, Tribunal applications, and day-to-day management oversight. Here are practical tips for getting the most from these statutory tools.
Practical Tips for Leaseholders
- Request annually - make a Section 21 request every year as a matter of routine, not just when you suspect problems
- Keep records - retain copies of all requests, responses, and summaries to build a comprehensive audit trail
- Compare year on year - review cost summaries across multiple years to identify unusual increases or new charges
- Coordinate with neighbours - work with other leaseholders to share information and present a unified challenge where necessary
- Follow up in writing - if the landlord does not respond, send a follow-up letter noting the deadline and the consequences of non-compliance
Coordinating with Tribunal Applications
If you are considering an application to the First-tier Tribunal to challenge service charges, Sections 21 and 22 are invaluable preparation tools. By requesting and reviewing the cost summary and supporting documents before making your application, you can:
- Identify specific charges to challenge with evidence rather than making general allegations of overcharging
- Demonstrate non-compliance - if the landlord has failed to provide the summary, this can be presented as evidence of poor management
- Build a paper trail - documented requests and responses show the Tribunal that you have acted reasonably and followed proper procedures
- Support cost reduction - detailed invoices may reveal that work was overpriced or unnecessary, supporting a challenge on reasonableness grounds
Using Sections 21 and 22 as a foundation for your Tribunal application gives your case structure and credibility. The Tribunal expects applicants to have made reasonable efforts to resolve matters before bringing a formal application.
For a complete guide to making an application to the First-tier Tribunal, see our First-tier Tribunal guide.
Frequently Asked Questions About Section 21 Information Rights
What is a Section 21 summary of costs?
A Section 21 summary of costs is a statutory document that leaseholders can request from their landlord under the Landlord and Tenant Act 1985. It provides a breakdown of service charge expenditure for a given accounting period, showing how money collected through service charges has been spent. The landlord is legally obliged to supply this summary within one month of the request, or within six months of the end of the accounting period, whichever is later.
What is the 6 month rule for service charge accounts?
The six-month rule requires the landlord to provide the summary of costs within six months of the end of the accounting period to which the service charges relate. If a leaseholder makes a written request under Section 21, the landlord must comply within one month of the request or within six months of the end of the relevant accounting period, whichever deadline falls later. Failure to meet this deadline is a criminal offence carrying a potential fine.
Can leaseholders inspect service charge invoices?
Yes. Under Section 22 of the Landlord and Tenant Act 1985, leaseholders who have received a Section 21 summary of costs have the right to inspect the supporting documents, including invoices, receipts, and contracts. The landlord must make these documents available for inspection within one month of a written request, and must also provide copies if requested, though the landlord may charge a reasonable fee for copying.
Does the landlord have to provide an accountant-certified summary?
Yes, if the building contains four or more dwellings. Where the service charges relate to a building or group of buildings with four or more qualifying units, the summary of costs must be certified by a qualified accountant. The accountant must confirm that the summary is a fair reflection of the accounts, that the expenditure has been incurred, and that the summary is consistent with the accounting records. For buildings with fewer than four dwellings, accountant certification is not required.
What happens if the cost summary is not provided?
If the landlord fails to provide a Section 21 summary of costs within the required timeframe, the landlord commits a summary offence and may face a fine upon conviction. Additionally, leaseholders may use the failure as grounds to challenge service charges at the First-tier Tribunal. The non-compliance can also support an application under the Landlord and Tenant Act 1987 for the appointment of a manager or the right to manage.
Can I withhold service charges if Section 21 is not complied with?
While failure to provide a Section 21 summary does not automatically give leaseholders the right to withhold service charges, it significantly strengthens any challenge to service charge demands. Leaseholders can apply to the First-tier Tribunal to determine the reasonableness of charges where adequate cost information has not been supplied. The Tribunal may find that charges are unreasonable if the landlord has failed to provide transparency through the statutory summary process.
Need Help With Section 21 Information Rights?
Whether you need to request a cost summary, enforce compliance, or challenge unreasonable service charges at the First-tier Tribunal, our experienced block management team can help. We ensure full transparency and statutory compliance for every property we manage.