My Service Charges Are Excessive — Can I Challenge Them?
Leaseholders who believe their service charges are excessive, unreasonably incurred, or relate to work of poor quality can apply to the First-tier Tribunal (Property Chamber) to determine what is payable.
Quick Answer
Under section 19 of the Landlord and Tenant Act 1985, service charges (costs of maintaining and managing a leasehold property) are only payable to the extent that they are reasonably incurred and the services or works are of a reasonable standard. You can apply to the First-tier Tribunal (Property Chamber) for a determination of whether service charges are payable and in what amount. The process is relatively accessible and does not require a solicitor.
Full Explanation
Leaseholders of residential flats are typically required to pay service charges to their freeholder (or management company) to cover the costs of maintaining, repairing, and managing the building. The amount and items covered are set out in the lease. Section 19 of the Landlord and Tenant Act 1985 imposes a reasonableness requirement — service charges are only payable where costs were reasonably incurred and the standard of work or services was reasonable. This is a statutory limitation that cannot be excluded by the lease.
Additional protections include: the right to request a summary of costs (section 21 LTA 1985), the right to inspect accounts and receipts (section 22 LTA 1985), consultation requirements for major works over £250 per leaseholder or long-term agreements (section 20 LTA 1985 — failure to consult limits recovery to £250 per leaseholder), and the right to be notified of demands via a demands notice containing the landlord's name and address.
The First-tier Tribunal (Property Chamber) has jurisdiction to determine: whether a service charge is payable, in what amount, and by when. Applications are made on Form LR11 or online. The Tribunal fees are modest (£100–£200). Many leaseholders represent themselves successfully at the Tribunal. The Tribunal can award costs against either party but does not routinely do so — unreasonable behaviour is the trigger.
A section 20 consultation failure is a powerful argument. If the landlord did not carry out the required statutory consultation before undertaking major works, each leaseholder's liability is capped at £250 for those works — regardless of the actual cost — unless the Tribunal grants dispensation from the consultation requirement (which it will only do if granting dispensation does not prejudice the leaseholders).
Legal Basis
- §Landlord and Tenant Act 1985, sections 18–30
- §Commonhold and Leasehold Reform Act 2002
- §Leasehold and Freehold Reform Act 2024 (further reforms, phased commencement)
What To Do
Request a Summary of Accounts
Under section 21 of the Landlord and Tenant Act 1985, you have the right to request a summary of costs from the last accounting period. The freeholder must provide this within 1 month (or within 6 months of the accounting period ending, whichever is later). Follow up by requesting copies of invoices under section 22.
Check Whether a Section 20 Consultation Was Carried Out
For any works costing more than £250 per leaseholder, the landlord must follow the s.20 consultation procedure — two stages of notice and opportunity for leaseholders to nominate contractors. If consultation was not carried out correctly, the charge for those works is capped at £250 per leaseholder.
Write to the Freeholder Challenging the Charges
Set out in writing which charges you dispute and why (unreasonable cost, poor quality, lack of consultation, etc.). Ask for evidence that the charges meet the reasonableness standard. Keep a copy of your letter and any response.
Apply to the First-tier Tribunal
If the dispute cannot be resolved, apply to the First-tier Tribunal (Property Chamber) using the online portal or Form LR11. Attach copies of the service charge demands, your lease, correspondence, and any expert evidence (e.g., a surveyor's report on the reasonableness of works costs).
Consider Collective Action With Other Leaseholders
Service charge disputes often affect multiple leaseholders in the same building. Acting collectively reduces legal costs, shares evidence-gathering, and is more persuasive to the freeholder and the Tribunal. Consider forming a Residents' Association (which can be formally recognised under the Landlord and Tenant Act 1985).
Important Deadlines
Important Warnings
Do not withhold service charges pending a dispute without a Tribunal determination — the freeholder may pursue the arrears and seek forfeiture of your lease. Apply to the Tribunal instead.
Forfeiture of a leasehold for service charge arrears is subject to strict safeguards, but the threat alone can be stressful. Seek advice if you receive a forfeiture notice.
The Tribunal can only determine what is payable — it cannot order improvements or repairs directly. Apply for an improvement notice via the local authority if the building is not being maintained.