Service charge delight for landlords

Landlords of residential property will be delighted by a Court of Appeal decision restoring the “sets” approach to determining qualifying works for residential service charges. The “aggregated” approach significantly increased the consultation burden for landlords and potentially placed them in a difficult position when dealing with emergency repairs.

Separate sets of work should be identified for the purpose of establishing whether the relevant costs exceeded the recoverable limit and therefore triggered the consultation process. The £250 per tenant limit was intended to provide a “triviality threshold”.

If in doubt, do get in touch for clarification on what a service charge is, when consultation is required, the penalties for failing to comply with consultation requirements and the time limits for making service charge demands.

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