Decision summary

CHI/23UE/LSC/2020/0056 — service charge decision

In CHI/23UE/LSC/2020/0056, decided 12 February 2021, the First-tier Tribunal considered 19 disputed service charge items at Fitzalan House, Park Road, Gloucester and reached a mixed result: 9 items were reduced or disallowed. Full decision on GOV.UK below.

Property: Fitzalan House, Park Road, Gloucester
Decision date: 12 February 2021
Full decision: Read on GOV.UK

Managing agent named in the decision: Peak Estates Limited (PEL).

What was challenged and what the tribunal decided

ItemDemandedAllowedOutcomeGrounds
Cleaning (2019)£8,547.20£7,904ReducedCosts unreasonably incurred (s19(1)(a))
Cleaning (2020)£8,000£8,000Allowed in full
Reserve fund contributions (2019)£1,350£1,350Allowed in full
Reserve fund contributions (2020)£1,500£1,500Allowed in full
Buildings insurance (2019)£7,073.85£4,922.18ReducedApportionment error, Landlord could not evidence the cost
Buildings insurance (2020)£4,900£4,900Allowed in full
Repairs & maintenance (2019)£7,160.19£5,708.19ReducedCosts unreasonably incurred (s19(1)(a)), Landlord could not evidence the cost, Works not necessary
Repairs & maintenance (2020)£1,500£1,500Allowed in full
Other charges (2019)£207.84£207.84Allowed in full
Other charges (2020)£1,150£1,150Allowed in full
Utilities (2019)£1,278.66£605.48ReducedCosts unreasonably incurred (s19(1)(a)), Landlord could not evidence the cost
Utilities (2020)£1,400£700ReducedCosts unreasonably incurred (s19(1)(a))
Gardening & grounds (2019)£532.80£340.80ReducedCosts unreasonably incurred (s19(1)(a))
Gardening & grounds (2020)£1,400£700ReducedCosts unreasonably incurred (s19(1)(a))
Lifts (2019)£4,099.20£4,099.20Allowed in full
Lifts (2020)£2,000£2,000Allowed in full
Management fees (2019)£8,000£4,000ReducedFee excessive for service delivered, Standard not reasonable (s19(1)(b))
Management fees (2020)£6,300£6,300Allowed in full
Administration charges (2019)£250£0Disallowed entirelyCosts unreasonably incurred (s19(1)(a)), Not payable under the lease

Section 20C order: granted.

Key passages (verbatim)

“The Tribunal accepts that the charge for all cleaning, excluding the carpet cleaning costs, in 2019 of £7,904 is reasonable.”
On cleaning
“The budget for cleaning costs for 2020 is £8,000 ... the Tribunal determines it is reasonable.”
On cleaning
“Carpet cleaning 1,350.00”
On reserve fund contributions
“Carpet cleaning 1,500.00”
On reserve fund contributions
“The amount shown in the accounts of £7,073.58 is determined to be unreasonable. The Tribunal determines that a reasonable amount is £4,922.18.”
On buildings insurance
“The Applicant has not challenged the 2020 insurance charge.”
On buildings insurance

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.