First-tier Tribunal Confirms Reasonableness of Service Charges
📌 In brief
The First-tier Tribunal confirmed that the service charges for the years 2017/18, 2018/19, and 2019/20 were reasonable and payable. However, the tribunal ruled that the costs of the proceedings should not be added to future service charges.
⚖️ Legal holding
Service charges for the years in question are reasonable and payable according to the Landlord and Tenant Act 1985.
📖 Technical summary
The tribunal confirmed the reasonableness of service charges for three years but ruled that the costs of the proceedings should not be added to future service charges.
📜 Headnote Official document
The tribunal confirmed the reasonableness of service charges for the years 2017/18, 2018/19, and 2019/20 but ruled that the costs of the proceedings should not be added to future service charges. The decision was made by Tribunal Judge Peter Ellis and Tribunal Member Vivek Chadha on 3 February 2022.
📚 Full judgment Official document
OUTCOME: Allowed
FIRST TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) CASE REFERENCE : BIR/00FK/LSC/2021/0007 PROPERTY : [ADDRESS], Derby. [POSTCODE] APPLICANT: [redacted] APPLICANT'S REPRESENTATIVE : Ms [COUNSEL] RESPONDENT : [redacted]
Reasonableness of Service Charges. S27A Landlord and Tenant Act 1985 Liability to pay costs. S20C Application under Para 5 Schedule 11 Commonhold & Leasehold Reform Act 2002 TRIBUNAL : Tribunal Judge Peter Ellis Tribunal Member [NAME] OF HEARING : 18 January 2022 DATE OF DECISION : 03 February 2022
__________________________________________________________ Decision __________________________________________________________ © 2022
1. Service Charges for the year 2017/8 in the sum of £3484.32 are reasonable and payable.
2. Service Charges for the year 2018/9 in the sum of £3628.56 are reasonable and payable.
3. Service Charges for the year 2019/20 in the sum of £3965.56 are reasonable and payable.
4. The costs incurred by the Respondent in connection with these proceedings are not to be regarded as relevant costs to be taken into account in determining the amount of service charges payable by the Applicant
5. The Applicant is not liable to pay an administration charge in respect of costs of these proceedings.
1. On 27 September 2021 the Applicant issued this application relating to service charges for the years 2017/18, 2018/19 and 2019/20. The Applicant also asked for orders under section 20 C a Landlord and tenant Act 1985 (the Act) and 5A Schedule 11 Commonhold and Leasehold Reform Act 2002.
2. Directions were given for the service of evidence by the Tribunal on 29 September 2021. The parties eventually complied with the directions and the matter was listed for a paper determination.
3. Although the service charges for the years in question exceeded £3000 pounds in each year the amount in dispute related to the sums charged for gas and water. The point at issue was whether or not the Respondent had properly apportioned those charges to the Applicant and the calculation of and application of any refund due to the Applicant for overpayments. The issues are summarised in the Tribunal’s Directions.
4. The parties’ respective submissions clarified the issues between them. The Respondent agreed to reapportion the relevant charges which had the effect of reducing the gross sum payable in each year. The Applicant has agreed and accepted the revised charges and the application of any refund due to him.
5. The Respondent in its submissions conceded that it would not add the costs of these proceedings to the future service charges payable by the Applicant. Also, it agreed to make no claim for the cost of the proceedings as an administration charge payable by the Applicant.
6. As the parties have now settled upon the correct method of apportioning charges for utility payments the Tribunal is able to confirm that the revised gross charges for years in question are reasonable and payable and orders accordingly.
7. If either party is dissatisfied with this decision they may apply to this Tribunal for permission to appeal to the Upper Tribunal (Lands Chamber). Any such application must be received within 28 days after these written reasons have been sent to the parties (rule 52 of The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013).
Tribunal Judge Peter Ellis.
📊 How courts decide similar cases
Among 12 similar decisions in this collection:
- First-tier Tribunal (Property Chamber) Tribunal Sets £6,192.43 in Service Charges for Assured Tenancy in Sandown
- First-tier Tribunal (Property Chamber) Tribunal Orders £4,425 Refund for Overpaid Insurance Service Charges in Lon…
- First-tier Tribunal (Property Chamber) Tribunal Grants Landlord Permission for Urgent Roof Repairs in Horsham
- First-tier Tribunal (Property Chamber) First-tier Tribunal Rules on Service Charges for 2020-2021
- First-tier Tribunal (Property Chamber) Tribunal Grants £4381 Dispensation for Urgent Roof Repairs Without Full Con…
- First-tier Tribunal (Property Chamber) Tribunal Rules Service Charges Unreasonable for Assured Tenancy in London
- First-tier Tribunal (Property Chamber) Tenant Wins Service Charge Refund Due to Lack of Proper Notice
- First-tier Tribunal (Property Chamber) First-tier Tribunal (Property Chamber) Decision — Case 4171818
- First-tier Tribunal (Property Chamber) Tribunal Varies Improvement Notice for Assured Tenancy in Derby
- First-tier Tribunal (Property Chamber) Tribunal Varies Improvement Notice to Remove Several Hazards
- First-tier Tribunal (Property Chamber) Tribunal Sets £1,200/month Rent for Assured Tenancy in London
- First-tier Tribunal (Property Chamber) Tribunal reduces service charge for six flats in SW18 to £998.48
A snapshot of this collection — not a prediction of your case's outcome.
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The respondent agreed to reapportion the utility charges, which reduced the total amount payable each year.
- The applicant accepted the revised charges and the application of any refund due.
- The costs of these proceedings will not be added to future service charges payable by the applicant.
- The applicant is not liable to pay an administration charge for the costs of these proceedings.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tribunal confirmed that the service charges for the years 2017/18, 2018/19, and 2019/20 were reasonable and payable, totaling over £11,000.
What was the dispute about?
The dispute was about the reasonableness of service charges for three consecutive years, totaling over £11,000.
How did the court decide, and why?
The court decided that the service charges were reasonable and payable, based on the proper apportionment of charges for utilities as per the Landlord and Tenant Act 1985.
Which laws or rules were applied?
The Landlord and Tenant Act 1985, specifically sections 27A and 20C, were applied.
What was the argument that mattered most?
The argument that mattered most was the proper apportionment of charges for utilities, ensuring that the service charges were reasonable and payable.
Was the decision for or against the person who brought the case?
The decision was for the person who brought the case, confirming that the service charges were reasonable and payable.
What does this mean for someone in a similar situation?
For someone in a similar situation, it means that service charges can be challenged if they are not properly calculated and apportioned.
What evidence or documents mattered?
The judgment does not specify the exact evidence or documents that mattered, but it likely included detailed calculations and records of the service charges.
