Q&As

Section 121 LPA 1925: Modern Service Charges and Rentcharges

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Published by a LexisNexis Property expert

Published on: 16 April 2025

Have remedies under section 121 of the Law of Property Act 1925 been removed in relation to a modern ‘service charge’ type charge payable by owners on an estate (eg a typical newbuild type estate where there might be common areas, etc paid for collectively by way of variable charge, payable by positive covenant). Are these estate rentcharges?

The Leasehold and Freehold Reform Act 2024 (LFRA 2024) amended the Law of Property Act 1925 (LPA 1925) and introduced a new concept of a ‘regulated rentcharge’ (LFRA 2024, ss 113(2) and 124(2)(a) and LPA 1925, s 120A(1)). A ‘regulated rentcharge’ is any rentcharge of a type that could not be created under section 2 of the Rentcharges Act 1977 (RcA 1977)—see LPA 1925, s 120A(1) and Practice Note: Rentcharges—apportionment, termination and enforcement (which refers to ‘regulated rentcharges’ as ‘Historic Rentcharges’).

On and from 27 November 2023, remedies under LPA 1925, s 121 are no longer available in relation to a ‘regulated rentcharge’ (LPA 1925, s 121(1A) and LFRA 2024, s 113(5)). Note that there are anti-avoidance provisions that apply (see LPA 1925, s 122A).

An

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