Decision summary

CAM/00KA/LSC/2023/0019 — service charge decision

In CAM/00KA/LSC/2023/0019, decided 6 December 2023, the First-tier Tribunal considered 9 disputed service charge items at Flat 52, Highview Court, Dudley Street, Luton and reached a mixed result: 8 items were reduced or disallowed. Full decision on GOV.UK below.

Property: Flat 52, Highview Court, Dudley Street, Luton
Decision date: 6 December 2023
Full decision: Read on GOV.UK

Managing agent named in the decision: Y & Y Management Ltd.

What was challenged and what the tribunal decided

ItemDemandedAllowedOutcomeGrounds
Other charges (2017/18-2022/23)——Disallowed entirelyCosts unreasonably incurred (s19(1)(a))
Repairs & maintenance (2018/19 onwards)£538£484.20ReducedCosts unreasonably incurred (s19(1)(a)), Historic neglect
Management fees (2017/18-2022/23)——ReducedFee excessive for service delivered, Costs unreasonably incurred (s19(1)(a))
Cleaning (2017/18-2022/23)——Disallowed entirelyOther grounds
Major works (2022/23-2023/24)——ReducedFee excessive for service delivered, Costs unreasonably incurred (s19(1)(a))
Lifts (2017/18-2022/23)——ReducedCosts unreasonably incurred (s19(1)(a))
Other charges (2017/18-2022/23)——Disallowed entirelyLeaseholder evidence insufficient
Other charges (2017/18-2022/23)——Disallowed entirelyLeaseholder evidence insufficient
Gardening & grounds (2017/18-2022/23)——Allowed in full—

Key passages (verbatim)

“it will not be reasonable for the Respondent to demand payment of any communal electricity charges from the leaseholders… these charges were not reasonably incurred”
On other charges
“we therefore intend to apply a reduction of 10% to the £538.00 in issue under this head in respect of the years £2018/19 onwards, i.e. £53.80.”
On repairs & maintenance
“the quality of the service provided by Y & Y Management in all the years of account save the most recent…was so poor that it is necessary to reduce the amount of the charge by 50%”
On management fees
“The question whether it is fair and reasonable that the Applicants should have to bear the same proportion…it is clear that the owners of flats with balconies receive a substantially smaller benefit…their exposure to it should accordingly be reduced by 50%, a reduction of £69.00.”
On cleaning
“it is manifestly inappropriate that Y & Y should be paid a management charge of 15% of the contract price of £10,080.00… It is not therefore reasonable for Landlord to incur any additional costs paying it to manage a project which it ought to have been managing anyway.”
On major works
“Avon accepted in the course of evidence that the charge of £580.81 by RCUK, purportedly in relation to a lift telephone line, was not properly made and ought therefore to be deducted.”
On lifts
“It is difficult in these circumstance to avoid the conclusion that the true purpose of Avon's application was to divert any liability which might arise in this case (and possibly others too) on to the asset-less Second Respondent and so render enforcement more difficult for the Applicants.”
Of Avon Ground Rents Limited
“we find that it was vexatiously, abusively and unreasonably made.”
Of Avon Ground Rents Limited / Y & Y Management Ltd
“We were unimpressed by Mr Gurvits' evidence, such as it was, in relation to each these points. We felt that it was his purpose, so far as possible, to divert our attention away from the examination of questions relating to the solar panels.”
Of (Y & Y Management Ltd)
“Y & Y's failures to get to grips with the security problems, solar panel issues, maintenance issues and problems with the lifts, despite the considerable best efforts of Mr Pilgrim, were the result of negligence and/or indigence on the part of Mr Shipman and Mr Bloom.”
Of Y & Y Management Ltd (Ben Shipman and Aaron Bloom)

This summary is assembled from the structured record of the published decision; amounts appear only where the tribunal stated them. Always rely on the full decision itself.