Challenging a service charge

The rules, as the statute states them

Only reasonable costs can be charged

Section 19 of the Landlord and Tenant Act 1985 says relevant costs are taken into account in a service charge "only to the extent that they are reasonably incurred", and works or services only if they are "of a reasonable standard". s.19, legislation.gov.uk.

The tribunal can decide whether a charge is payable (section 27A)

Section 27A says an application may be made to the tribunal "for a determination whether a service charge is payable and, if it is", by whom, to whom, how much, when and how. It applies "whether or not any payment has been made". It does not apply to a matter the tenant has agreed or admitted, or that a court or arbitration has decided. s.27A, legislation.gov.uk. The application form and the fee are on GOV.UK.

The 18-month rule (section 20B)

Section 20B says that if relevant costs were incurred more than 18 months before a demand for payment is served, the tenant "shall not be liable to pay so much of the service charge as reflects the costs so incurred", unless within those 18 months the tenant was notified in writing that the costs had been incurred and would later be required to be paid. s.20B, legislation.gov.uk.

Consultation on major works (section 20)

Section 20 limits what can be recovered for "qualifying works" and "qualifying long term agreements" unless the consultation requirements have been complied with or the tribunal has dispensed with them (section 20ZA). The Service Charges (Consultation Requirements) (England) Regulations 2003 set the thresholds: works costing any one tenant more than £250, and agreements costing any one tenant more than £100 a year. s.20, s.20ZA, the 2003 Regulations, legislation.gov.uk.

The landlord's costs of the case (section 20C)

Section 20C says a tenant "may make an application for an order that all or any of the costs incurred, or to be incurred, by the landlord in connection with proceedings" before the tribunal "are not to be regarded as relevant costs" in a service charge. The tribunal makes the order if it considers it "just and equitable in the circumstances". s.20C, legislation.gov.uk. On this site: in 634 of 1,016 decisions where the order was asked for and decided, it was made.

A demand must come with a summary of rights (section 21B)

Section 21B says a demand for payment of a service charge "must be accompanied by a summary of the rights and obligations of tenants of dwellings in relation to service charges", and a tenant "may withhold payment" of a charge demanded without one. s.21B, legislation.gov.uk.

Statutes change. The Leasehold and Freehold Reform Act 2024 amends several of these provisions as its sections are brought into force; LEASE keeps a current guide. Each statement above is quoted from or paraphrases the section linked; the link is the authority, not this page.