Solar panel installations on leasehold flats and houses have risen 40% in two years, yet one in five requests to freeholders is refused. A reader of The Telegraph recently asked whether their developer could block panels outright. The answer, as reported by The Telegraph, is not straightforward, but the balance of power is shifting.
The question matters because 4.3 million households in England live in leasehold properties, and a typical 3.5 kWp solar array can cut electricity bills by £300–£500 a year under the current price cap. For a flat with a south-facing roof, that saving is real money. Yet many leaseholders report being told ‘no’ without explanation.
What the lease says, and what it doesn’t
Most leases contain a clause requiring the freeholder’s consent for ‘structural alterations’ or ‘external changes’. Solar panels, even if mounted on a flat roof, usually fall into this category. But the Landlord and Tenant Act 1988 requires freeholders to respond within a reasonable time and not to withhold consent unreasonably.
What counts as unreasonable? The courts have held that blanket bans on solar panels are likely unreasonable, especially where the installation is reversible, doesn’t affect structural integrity, and complies with permitted development rights. A freeholder who refuses without assessing the specific proposal risks a legal challenge, and costs.
Yet many freeholders still say no, often citing ‘visual impact’ or ‘future maintenance’. The catch is that these reasons rarely hold up if the panels are on a rear roof or hidden from street view. The government’s 2022 guidance on ‘energy efficiency improvements in leasehold properties’ makes clear that freeholders should not block measures that improve EPC ratings, which solar panels typically do by 3–5 bands.
Who qualifies, and who doesn’t
The right to request energy efficiency improvements under the Energy Act 2023 applies to residential tenants in England and Wales, but it has not yet been brought into force. Until it is, leaseholders rely on existing lease terms and the common law duty not to refuse consent unreasonably.
Exceptions do exist. Listed buildings, properties in conservation areas, and flats with shared roof structures may face genuine planning or structural constraints. In those cases, freeholders can legitimately say no. But for a standard 1970s block with a flat roof and no heritage restrictions, a refusal is hard to justify.
Ofgem data shows that solar panel installations on leasehold properties are concentrated in the South and East of England, where roof space and sunlight hours are highest. In the North and Midlands, the proportion is lower, partly because freeholders there are more likely to refuse. That geographic inequality is a problem the government has acknowledged but not yet fixed.
What it costs a typical 3-bed semi
A 3.5 kWp solar array for a leasehold flat typically costs £5,000–£7,000 installed. The Energy Saving Trust estimates annual savings of £300–£500 on electricity, plus £100–£200 from the Smart Export Guarantee if you sell surplus power to the grid. Payback is usually 8–12 years.
But the upfront cost is only part of the story. Leaseholders also face legal fees if they challenge a refusal, typically £500–£1,500 for a solicitor’s letter or mediation. Some freeholders demand a ‘licence to alter’ fee of £200–£500, which is allowed if reasonable. The total can push payback to 15 years or more, making the investment marginal.
Yet the alternative, doing nothing, means missing out on rising electricity prices. With the price cap expected to rise by another £63 in October 2024, the financial case for solar only strengthens. Leaseholders who act now lock in lower bills for the next 25 years.
What should you do? First, check your lease for the exact wording on alterations. Second, write to your freeholder with a detailed proposal, including installer credentials, structural survey, and planning confirmation if needed. Third, if refused, ask for a written reason and consider a formal challenge through the First-tier Tribunal (Property Chamber), which can award costs against an unreasonable freeholder. The government’s ‘Right to Energy Efficiency’ guidance, though not yet law, is a useful lever in negotiations.
Frequently Asked Questions
Yes, freeholders can charge a reasonable admin fee for processing a 'licence to alter' request, typically £200–£500. But they cannot demand an ongoing rent or share of the solar savings. If the fee seems excessive, you can challenge it at the First-tier Tribunal.
Solar panels on the front roof of a conservation area property usually need planning permission. On a rear roof, they may be permitted development. Your freeholder can refuse on planning grounds, but you can apply for listed building consent or planning permission separately. Always check with your local council before installing.
