Landlords Cannot Pass Service Charge Costs to Tenants
📌 In brief
In a recent case, the First-tier Tribunal ruled that landlords cannot pass on costs related to service charge proceedings to tenants. This decision protects tenants from bearing unfair financial burdens.
⚖️ Legal holding
Tenants are entitled to prevent landlords from passing on costs incurred in connection with service charge determinations.
📖 Technical summary
The tribunal ruled that the landlord cannot pass on costs related to service charge proceedings to tenants.
📜 Headnote Official document
The First-tier Tribunal ruled that the landlord cannot pass on costs incurred in connection with service charge proceedings to tenants, emphasising the importance of fair cost distribution between landlords and tenants.
📚 Full judgment Official document
OUTCOME: Allowed
© CROWN COPYRIGHT
FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : LON/00BG/LSC/2021/0453 Property : Flats 1-7 and 9, 40 [ADDRESS] [POSTCODE] Applicants : [redacted] Representative : Mr [COUNSEL] (flat 4) and Mr [COUNSEL] (Flat 1) Respondent : [redacted] : [RESPONDENT] of [NAME] : For the determination of an [NAME] under Section 20C of the Landlord and Tenant Act 1985 Tribunal members : Judge Pittaway Ms S Phillips MRICS Mr J Naylor MRICS MIRPM Date of decision : 19 July 2022
DECISION
2 Description of hearing This has been a remote hearing on the papers which has not objected to by the parties. The form of remote hearing was P:PAPERREMOTE. A face-to-face hearing was not held because it was not practicable and all issues could be determined on paper
Decisions of the tribunal The tribunal makes an order under section 20C of the Landlord and Tenant Act 1985 so that the respondent may not pass any of its costs incurred in connection with the tribunal’s determination of the liability to pay service charges under section 27A of the Landlord and Tenant Act 1985 dated 27 June 2022 made under the same case reference (the ‘s27A Determination’) to the applicants
[NAME] under s.20C 1. Contemporaneously with their [NAME] for a determination under s27A Landlord and Tenant Act 1985 the applicants made an [NAME] under s20C of the 1985 Act that the costs in connection with the proceedings should not be included in any service charge payable by the applicants.
2. At the hearing it was agreed that this [NAME] should follow the s27A Determination.
3. The tribunal directed in the s27A Determination that if the respondent wished to challenge the s.20 [NAME] it should provide the tribunal and the applicants with full details of the costs being sought by 14 July 2022.
4. As at 18 July 2022 the tribunal had received nothing from the respondent. Reasons for the tribunal’s decision 5. The respondent has not challenged the s.20C [NAME] by the applicants as provided for in the s27A Determination.
6. Taking into account the s27A Determination and the absence of challenge by the respondent of the S20C [NAME] the tribunal determines that it is just and equitable in the circumstances for an order to be made under s20C of the Landlord and Tenant Act 1985 so that the respondent may not pass any of its costs incurred in connection with the proceedings relating to the s27A Determination before the tribunal through the service charge.
3
Name: Judge Pittaway Date: 19 July 2022
Rights of appeal By rule 36(2) of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013, the tribunal is required to notify the parties about any right of appeal they may have. If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber), then a written [NAME] for permission must be made to the First- tier Tribunal at the regional office which has been dealing with the case. The [NAME] for permission to appeal must arrive at the regional office within 28 days after the tribunal sends written reasons for the decision to the [NAME]. If the [NAME] is not made within the 28-day time limit, such [NAME] must include a request for an extension of time and the reason for not complying with the 28-day time limit; the tribunal will then look at such reason(s) and decide whether to allow the [NAME] for permission to appeal to proceed, despite not being within the time limit. The [NAME] for permission to appeal must identify the decision of the tribunal to which it relates (i.e. give the date, the property and the case number), state the grounds of appeal and state the result the party [NAME] the [NAME] is seeking. If the tribunal refuses to grant permission to appeal, a further [NAME] for permission may be made to the Upper Tribunal (Lands Chamber).
📊 How courts decide similar cases
Among 12 similar decisions in this collection:
- First-tier Tribunal (Property Chamber) Tribunal Grants Dispensation for Urgent Roof Repairs at Palazzo House
- First-tier Tribunal (Property Chamber) Reasonable Costs for Granting a New Lease Under the Leasehold Reform Act 19…
- First-tier Tribunal (Property Chamber) Tribunal Grants £1,500 in Urgent Roof Repairs Dispensation for Residential …
- First-tier Tribunal (Property Chamber) Tribunal Grants £3,972 Dispensation for Urgent Safety Works in London Tenan…
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets Rent for Assured Tenancy at £1,675
- First-tier Tribunal (Property Chamber) Tribunal Sets £1,700/month Rent for Assured Tenancy in London
- First-tier Tribunal (Property Chamber) Tribunal Grants £35,148 Dispensation for Urgent Roof Repairs in Battersea
- First-tier Tribunal (Property Chamber) First-tier Tribunal Grants Dispensation for Essential Lift Repairs
- First-tier Tribunal (Property Chamber) Tribunal Sets £1550 Rent for Assured Tenancy in London
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
- Landlords can adjust rent based on property condition and local market conditions.
- Landlords may be exempted from consultation requirements if the works are essential and do not harm tenants.
- Tenants are entitled to pay reasonable costs for obtaining a new lease.
- Landlords can obtain dispensation from consultation requirements for urgent repairs.
- Rent for an assured periodic tenancy should match the open market value of the property.
❌ Tends to be rejected
- A tenant cannot apply to the tribunal to review excessive rent more than six months after the start of an assured shorthold tenancy.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The tribunal decided that the landlord cannot pass on costs related to service charges to the tenants.
What was the dispute about?
The dispute was about whether the landlord could pass on costs related to service charges to the tenants.
How did the court decide, and why?
The court decided in favour of the tenants, ruling that the landlord cannot pass on these costs because the tenants had requested it under section 20C of the Landlord and Tenant Act 1985.
Which laws or rules were applied?
Section 20C of the Landlord and Tenant Act 1985 was applied.
What was the argument that mattered most?
The argument that mattered most was the tenants' request to prevent the landlord from passing on costs related to service charges.
Was the decision for or against the person who brought the case?
The decision was for the tenants who brought the case.
What does this mean for someone in a similar situation?
Someone in a similar situation can also request that the landlord does not pass on costs related to service charges under section 20C of the Landlord and Tenant Act 1985.
What evidence or documents mattered?
The judgment does not specify the exact evidence or documents that mattered.
