CHI/00HB/LSC/2022/0051 — service charge decision
In CHI/00HB/LSC/2022/0051, decided 21 December 2022, the First-tier Tribunal considered 7 disputed service charge items at Huller & Cheese, Redcliff Backs, Bristol, BS1 6WJ and reached a mixed result: 7 items were reduced or disallowed. Full decision on GOV.UK below.
Property: Huller & Cheese, Redcliff Backs, Bristol, BS1 6WJ
Decision date: 21 December 2022
Full decision: Read on GOV.UK
Managing agent named in the decision: JPW Property Management Ltd.
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Management fees (2017) | £10,800 | £7,860 | Reduced | Fee excessive for service delivered, Costs unreasonably incurred (s19(1)(a)) |
| Management fees (2018) | £21,600 | £15,720 | Reduced | Fee excessive for service delivered, Costs unreasonably incurred (s19(1)(a)) |
| Management fees (2019) | £21,600 | £15,395 | Reduced | Fee excessive for service delivered, Costs unreasonably incurred (s19(1)(a)), Standard not reasonable (s19(1)(b)) |
| Management fees (2020) | £22,032 | £15,720 | Reduced | Fee excessive for service delivered, Costs unreasonably incurred (s19(1)(a)) |
| Other charges (2020) | — | — | Reduced | Standard not reasonable (s19(1)(b)) |
| Management fees (2021) | £22,032 | £15,720 | Reduced | Fee excessive for service delivered, Costs unreasonably incurred (s19(1)(a)) |
| Management fees (2022) | £20,032 | £15,720 | Reduced | Fee excessive for service delivered, Standard not reasonable (s19(1)(b)) |
Section 20C order: partial.
Key passages (verbatim)
“For the second half of the 2017 service charge year, the management fees are limited to £6,550.”
“the relevant costs for management fees which are reasonably incurred (or reasonable in amount) for the 2018-22 service charge years shall not exceed £13,100pa”
“the Tribunal applies the deduction over a period of 6 months leading up to the date of the Ombudsman's 2019 report. This produces a deduction of £325 from the relevant cost of management fees in that service charge year”
“the relevant costs for management fees which are reasonably incurred (or reasonable in amount) for the 2018-22 service charge years shall not exceed £13,100pa”
“the Tribunal accordingly limits the relevant costs of the service charge accounting in 2020 by discounting the relevant costs by £486.50”
“the relevant costs for management fees which are reasonably incurred (or reasonable in amount) for the 2018-22 service charge years shall not exceed £13,100pa”
“there is no evidence that the regulatory regime explains the significant difference in management fees charged by JPW. Still less is it shown that professional accreditation justifies the significant extra expense to the lessees who ultimately have to pay the bills.”
“No evidence was given to support the suggested experience of the managers, still less to show that the four alternative quotations were based on the employment of inexperienced property managers. All agents purport to employ good staff, but there is simply no evidence to differentiate between the various firms on this account.”
“it certainly appears that additional managing agents' fees may have been charged by JPW in some years.”
“the Tribunal notes there is evidence Mr Blackford tested the market in around 2017, but no evidence the First Respondent has ever re-tendered the management work since then.”
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.