Automated Summary
Key Facts
The First-tier Tribunal determined service charges for grounds maintenance at 46 Redcote Close, Southampton SO18 5SU between 2017/18 and 2020/21. Applicant Jason Kauder disputed charges citing poor contractor performance and incorrect apportionment (1/100th vs claimed 1/120th). Respondent Clarion Housing adjusted costs after acknowledging some non-contract items and offered a 10% deduction for 2017/18, 2018/19, 2019/20, and 2020/21. Final determined charges: 2017/18 £97.42, 2018/19 £95.96, 2019/20 £132.54, with 10% deduction applied to 2020/21 after actual costs are known. The Tribunal confirmed costs were allocated to 100 properties as per tenancy terms.
Issues
- The Applicant disputes the apportionment of service charges, claiming 1/120th of total costs should apply (based on 120 properties), while the Respondent argues 1/100th is correct (based on 100 units). The Tribunal must resolve this discrepancy under clause 1.3.5 of the tenancy agreement.
- The Tribunal must determine if the service charges for grounds maintenance (2017/18, 2018/19, 2019/20, 2020/21) are reasonable under section 19 Landlord and Tenant Act 1985, considering both the cost and quality of work relative to the contract terms and apportionment methodology.
- The Applicant alleges the contractor (Envirocare) failed to adhere to contract terms (e.g., hedge height reduction to 1m, regular attendance, leaf raking). The Tribunal must assess if this non-compliance affects the reasonableness of charges under section 27A.
Holdings
- The Tribunal determined the service charges payable for 2017/18 as £97.42, applying a 10% reduction to the grounds maintenance costs (excluding the £432 tree works) and adjusting the 15% management/administration charge accordingly. This reflects the Applicant's complaint about the contractor's failure to meet contractual standards and the Tribunal's assessment of photographic evidence showing substandard maintenance.
- For 2018/19, the Tribunal set the service charge at £95.96. This included a 10% deduction from the grounds maintenance costs (after removing the £432 tree works and rubbish clearance charges) and recalculating the management/administration fee. The decision acknowledges the Applicant's concerns about inconsistent service delivery but deems the adjusted amount reasonable.
- The Tribunal permitted the Respondent to allocate costs to properties that directly benefit from specific works (e.g., communal garden maintenance for 42-47 Redcote Close) from 2019/20 onwards, aligning with the tenancy agreement's apportionment terms.
- For 2020/21, the Tribunal ruled that a 10% deduction will be applied to the grounds maintenance costs once actual expenses are known before calculating the Applicant's liability. This maintains the same adjustment mechanism as previous years for service charge disputes.
- The 2019/20 service charge was determined as £132.54. The Tribunal accepted the Respondent's revised apportionment method (1/6th for communal garden costs benefiting 6 properties and 1/100th for other estate costs) and applied a 10% reduction to grounds maintenance charges based on photographic evidence of poor maintenance.
Remedies
- The Tribunal permitted the Respondent to allocate the cost of works to properties that receive the benefit, as adopted from the 2019/20 financial year onwards.
- The Tribunal determined the service charges payable are £97.42 for 2017/18, £95.96 for 2018/19, £132.54 for 2019/20, and a 10% deduction will be applied to the actual Grounds maintenance cost for 2020/21 before calculating the Applicant's liability.
Legal Principles
The tribunal applied section 27A of the Landlord and Tenant Act 1985 to determine service charge liability, focusing on whether costs were reasonably incurred and services met a reasonable standard under section 19. The tenancy agreement's clause 1.3.5 allowed cost allocation to properties benefiting from services, and the tribunal assessed reasonableness based on evidence of service quality and compliance with contractual terms.
Cited Statute
Landlord and Tenant Act 1985
Judge Name
D Banfield
Passage Text
- 54. Given this acceptance and the evidence of lack of maintenance in at least some areas of the estate as demonstrated in the photographs taken by the Applicant on 21 January 2021 I consider a modest reduction of 10% to the Grounds maintenance charges excluding the one-off payment for tree works should be made for 2017/18, 2018/19, 2019/20 and 2020/21 together with a resultant adjustment of the 15% Management and Administration charge all as set out in the table below.
- 57. That the Respondent may allocate the cost of works to those properties that receive the benefit of them and as adopted from 2019/20 onwards.
- 55. The Tribunal therefore determines that the service charges payable are as follows; 2017/18 £97.42 2018/19 £95.96 2019/20 £132.54 56. For 2020/21 the Tribunal determines that once the actual cost of Grounds maintenance is known a deduction of 10% will be applied before calculating the Applicant's service charge liability.