The Procurement Act 2023 (the Act), which came into force on 24 February 2025, introduces changes that will impact landlords when consulting residents under section 20 of the Landlord and Tenant Act 1985 (section 20) in advance of carrying out qualifying works or entering into qualifying long-term agreements, where the value of proposed contracts is above the threshold that requires public notice. 

This is because from 24 February 2025, the definition of public notice in the Service Charges (Consultation Requirements) (England) Regulations 2003 and the Service Charges (Consultation Requirements) (Wales) Regulations 2004 (the regulations) have been changed to replace reference to the ‘Public Contracts Regulations 2015’ with the ‘Procurement Act 2023’.

This amendment reflects the shift in public procurement legislation and ensures consistency with the new framework established under the Act and the requirement to advertise over threshold contracts in England and Wales on the UK Government’s Central Digital Platform (Find a Tender). In addition, for Welsh landlords, contracts must also be advertised on the Welsh Government’s Welsh Digital Platform (Sell2Wales).

These requirements replace the previous requirements under the Public Contracts Regulations 2015 and align with the new transparency obligations introduced by the Act.

The updated definition means landlords must update their section consultation policies, procedures and documentation to reflect the change. 

In particular, landlords must ensure that their template notice of intention, where public notice is required under both Schedule 2 and Schedule 4, part 1 of the updated regulations, is updated to reflect the change.

This will include changing any reference to the Public Contracts Regulations 2015 to the Act and making it clear in the notices that residents will not be asked to nominate contractors from whom the landlord should try to obtain an estimate because the proposed contract requires public notice under the Act and therefore that the landlord will be advertising the contract through the applicable Digital Platform(s). 

If landlords fail to consult residents following section 20 (including the updated Regulations), then the amount it can recover is limited to either:

• £100 per year where there is a qualifying long-term agreement; or
• £250 for qualifying works; unless 
• dispensation from the section 20 consultation requirements is obtained from the First-tier Tribunal (Property Chamber) (in England) or the Leasehold Valuation Tribunal (in Wales). 

Next steps for landlords and for more information

Landlords should act now to ensure a smooth transition and full compliance with the updated regulations.  

For further advice on how these changes impact on your obligations under section 20, please contact Penny Bournes.