CHI/43UF/LSC/2023/0063 — service charge decision
In CHI/43UF/LSC/2023/0063, decided 14 February 2024, the First-tier Tribunal considered 21 disputed service charge items at 1A The Driftbridge, Reigate Road, Epsom, Surrey and reached a mixed result: 18 items were reduced or disallowed. Full decision on GOV.UK below.
Property: 1A The Driftbridge, Reigate Road, Epsom, Surrey
Decision date: 14 February 2024
Full decision: Read on GOV.UK
Managing agent named in the decision: Bells Southfields Ltd.
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Cleaning (2017) | £11,400 | £5,292 | Reduced | Costs unreasonably incurred (s19(1)(a)), Fee excessive for service delivered |
| Other charges (2017) | £480 | £0 | Disallowed entirely | Not payable under the lease, Duplication of charges |
| Cleaning (2018) | £11,760 | £5,292 | Reduced | Costs unreasonably incurred (s19(1)(a)), Fee excessive for service delivered |
| Management fees (2018) | £7,800 | £5,460 | Reduced | Standard not reasonable (s19(1)(b)), Fee excessive for service delivered |
| Other charges (2018) | £960 | £0 | Disallowed entirely | Duplication of charges |
| Cleaning (2019) | £11,760 | £5,292 | Reduced | Costs unreasonably incurred (s19(1)(a)), Fee excessive for service delivered |
| Management fees (2019) | £7,800 | £5,460 | Reduced | Standard not reasonable (s19(1)(b)), Fee excessive for service delivered |
| Other charges (2019) | £960 | £0 | Disallowed entirely | Duplication of charges |
| Cleaning (2020) | £10,800 | £5,292 | Reduced | Costs unreasonably incurred (s19(1)(a)), Fee excessive for service delivered |
| Management fees (2020) | £8,400 | £5,880 | Reduced | Standard not reasonable (s19(1)(b)), Fee excessive for service delivered |
| Legal & professional costs (2020) | £720 | £0 | Disallowed entirely | Not payable under the lease |
| Legal & professional costs (2020) | £1,935.83 | £452.40 | Reduced | Landlord could not evidence the cost, Costs unreasonably incurred (s19(1)(a)) |
| Cleaning (2021) | £8,800 | £5,292 | Reduced | Costs unreasonably incurred (s19(1)(a)), Fee excessive for service delivered |
| Management fees (2021) | £8,640 | £6,048 | Reduced | Standard not reasonable (s19(1)(b)), Fee excessive for service delivered |
| Legal & professional costs (2021) | £1,935.83 | £420.50 | Reduced | Landlord could not evidence the cost, Costs unreasonably incurred (s19(1)(a)) |
| Cleaning (2022) | £7,635.29 | £5,292 | Reduced | Costs unreasonably incurred (s19(1)(a)), Fee excessive for service delivered |
| Management fees (2022) | £9,600 | £6,720 | Reduced | Standard not reasonable (s19(1)(b)), Fee excessive for service delivered |
| Other charges (2022) | £1,200 | £0 | Disallowed entirely | Duplication of charges |
| Repairs & maintenance (2017) | £2,869 | £2,869 | Allowed in full | — |
| Repairs & maintenance (2018) | £3,565.94 | £3,565.94 | Allowed in full | — |
| Gardening & grounds (2018) | £2,414 | £2,414 | Allowed in full | — |
Section 20C order: granted.
Key passages (verbatim)
“the respondents have failed to satisfy the tribunal that the amounts sought to be charged to the tenants for janitorial services were 'reasonably incurred'”
“no separate charge may reasonably be made for accounting under para 3.5 of the Code. In short, the costs of accountancy in 2017-19 and 2022 referred to above were not reasonably incurred under s.19(1)(a) of the Act.”
“the respondents have failed to satisfy the tribunal that the amounts sought to be charged to the tenants for janitorial services were 'reasonably incurred'”
“the tribunal considers the amount of service charge payable by the applicant for the services of the managing agents should be limited by 30% under s.19(1)(b) of the Act.”
“no separate charge may reasonably be made for accounting under para 3.5 of the Code. In short, the costs of accountancy in 2017-19 and 2022 referred to above were not reasonably incurred under s.19(1)(a) of the Act.”
“the respondents have failed to satisfy the tribunal that the amounts sought to be charged to the tenants for janitorial services were 'reasonably incurred'”
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.