dispensation request
📖 What is dispensation request? Meaning and definition
In UK tenancy law, particularly concerning service charges, landlords are usually required to consult with tenants before carrying out major works or entering into certain long-term agreements. This consultation process is outlined in Section 20 of the Landlord and Tenant Act 1985. However, there are situations where a landlord might need to bypass these requirements, and in such cases, they can make a 'dispensation request' to the First-tier Tribunal (Property Chamber).
The Tribunal's primary focus when considering such a request is whether the tenants would be genuinely disadvantaged or 'prejudiced' by the landlord's failure to follow the consultation rules. The financial impact on the landlord if dispensation is not granted, or the nature of the landlord themselves, are not considered relevant factors. Dispensation can be granted even if the landlord significantly failed to meet the consultation requirements.
The Tribunal has the power to grant dispensation 'as it thinks fit', meaning it can impose conditions if appropriate. For example, a Tribunal might grant dispensation for urgent roof repairs to prevent water ingress, but it would assess if tenants were prejudiced by the lack of consultation regarding the cost or scope of those repairs. If the Tribunal finds no real prejudice, or if the costs involved are below a certain threshold (e.g., £100), the need for dispensation may not even arise, or it might be granted with conditions to protect the tenants' interests.
📋 Requirements
- The application must be made under Section 20ZA of the Landlord and Tenant Act 1985.
- The Tribunal will focus on whether tenants are prejudiced by the lack of consultation requirements.
- The financial consequence to the landlord of not granting dispensation is not a relevant factor.
- The nature of the landlord is not a relevant factor.
- Dispensation should not be refused solely because the landlord seriously breached consultation requirements.
- The Tribunal has power to grant dispensation as it thinks fit, provided any terms are appropriate.
📝 Procedure
- An application is submitted to the Tribunal under Section 20ZA Landlord and Tenant Act 1985.
- The Tribunal considers all submitted evidence and any objections from respondents (tenants).
- The Tribunal assesses the real prejudice to tenants flowing from the landlord’s breach of consultation requirements.
- The Tribunal makes a determination, which may include granting dispensation, refusing it, or granting it with conditions.
💡 Examples
- A landlord applied for dispensation from Section 20 consultation requirements for urgent roof repairs needed to prevent water damage to the building.
- The Tribunal granted a landlord's dispensation request after finding that a human error in the consultation process did not cause real prejudice to the tenants.
- A landlord's request for dispensation was rejected because the agreement in question was not a 'qualifying long-term agreement', meaning the need for dispensation did not arise.
- The Tribunal refused dispensation where the cost of services fell below £100, concluding that consultation or lack thereof would have had no practical effect.
📚 Legal basis
- Landlord and Tenant Act 1985
- Service Charges (Consultation Requirements) (England) Regulations 2003
❓ Frequently asked questions
What is Section 20 consultation?
Section 20 of the Landlord and Tenant Act 1985 requires landlords to consult with tenants before carrying out major works or entering into long-term agreements that will incur significant service charges, typically above a certain financial threshold.
Why would a landlord request dispensation?
A landlord might request dispensation if they were unable to follow the Section 20 consultation requirements, perhaps due to urgency (like emergency repairs), an oversight, or a belief that consultation would not be practical or necessary in the circumstances.
What does the Tribunal consider when deciding on a dispensation request?
The Tribunal primarily considers whether the tenants have suffered 'real prejudice' due to the landlord's failure to consult. Factors like the landlord's financial situation or their identity are not relevant to the decision.
Can dispensation be refused if the landlord seriously breached the rules?
No, dispensation should not be refused solely because the landlord seriously breached or departed from the consultation requirements. The focus remains on the prejudice to tenants.
Can the Tribunal impose conditions if it grants dispensation?
Yes, the Tribunal has the power to grant dispensation 'as it thinks fit', which means it can impose appropriate conditions to protect the tenants' interests, even if the request is granted.
What if the works are very minor or inexpensive?
If the cost of the services or works falls below a certain threshold (e.g., £100 as mentioned in one case), the need for consultation, and therefore dispensation, may not arise, as the lack of consultation would have no practical effect.