MAN/30UM/LSC/2022/0123 — service charge decision
In MAN/30UM/LSC/2022/0123, decided 5 April 2024, the First-tier Tribunal considered 10 disputed service charge items at Various flats at the Power Mill and Loom, Holcombe Road, Rossendale and reached a mixed result: 3 items were reduced or disallowed. Full decision on GOV.UK below.
Property: Various flats at the Power Mill and Loom, Holcombe Road, Rossendale
Decision date: 5 April 2024
Full decision: Read on GOV.UK
Managing agent named in the decision: Regent Management Group Limited.
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Buildings insurance (2020-21) | £22,568 | £12,140 | Reduced | Undisclosed insurance commission, Insurance not market tested, Costs unreasonably incurred (s19(1)(a)) |
| Buildings insurance (2021-22) | £35,629 | £19,181 | Reduced | Undisclosed insurance commission, Insurance not market tested, Costs unreasonably incurred (s19(1)(a)) |
| Buildings insurance (2022-23) | £44,751 | £24,168 | Reduced | Undisclosed insurance commission, Insurance not market tested, Costs unreasonably incurred (s19(1)(a)) |
| Major works (2021-22) | — | — | Allowed in full | — |
| Legal & professional costs (2021-22) | £655 | £655 | Allowed in full | — |
| Legal & professional costs (2020-21) | £1,255 | £1,255 | Allowed in full | — |
| Utilities (2021-22) | — | — | Allowed in full | — |
| Other charges (2021-22) | £3,229 | £3,229 | Allowed in full | — |
| Other charges (2021-22) | — | — | Allowed in full | — |
| Other charges (2020-21) | £268 | £268 | Allowed in full | — |
Section 20C order: granted.
Key passages (verbatim)
“2020/21 – actual premium £22,568 ... £19,181 adjusted (1.58/1.00) £12,140 Overpayment £10,428”
“2021/22 – actual premium £35,629 (a factor increase of 1.58 for the year) ... £24,168 adjusted (1.26/1.00) £19,181 Overpayment £16,448”
“2022/23 – actual premium £44,751 ... Applicants' quote + 15% £24,168 Overpayment £20,583”
“the Tribunal is unable to reach any conclusion that the work has been carried out in any way that has involved any unreasonable work at unreasonable standard or at unreasonable cost.”
“It is not unreasonable for them to act in that manner if the costs themselves are reasonable and there is no evidence to suggest otherwise.”
“It is not unreasonable for them to act in that manner if the costs themselves are reasonable and there is no evidence to suggest otherwise.”
“The Tribunal is firmly of the view that this is not the position that pertains here. There are two significant errors made by the Respondent or its agents in relation to the building. As findings of fact the Tribunal has noted that there are no housing association tenancies in respect of flats within the buildings, nor are they listed buildings.”
“Furthermore, the Tribunal has serious concerns as to the real world competitiveness of the policies negotiated, given the commission payable to the brokers (25%) and the Respondents (20%). The Tribunal is in no way satisfied that the amounts are reasonable for either of those parties.”
“the amount of work required to administer the policies and the small number of claims dealt with suggests that the amounts are not reasonable.”
“the work suggested being done by the brokers in the open market to place the policy, as detailed in paragraph 21 merely indicate scratching at the surface of proper market enquiries.”
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.