Service Charge Disputes UK: Challenge Unfair Fees

What this document is

A service charge is the contribution a leaseholder pays towards the costs a landlord incurs in running and maintaining the building and any shared areas. The exact items covered will be set out in your lease, but typically they include things like buildings insurance, cleaning of communal hallways, lift servicing, grounds maintenance, external decoration, and contributions to a reserve fund for bigger future works such as a new roof.

In England and Wales, service charges on residential long leases are primarily governed by the Landlord and Tenant Act 1985. Under section 19 of that Act, costs can only be recovered to the extent they are reasonably incurred, and any work or services must be of a reasonable standard.

Section 20 sets out a consultation procedure the landlord must follow before carrying out major works above a certain threshold or entering into long-term agreements, and failure to consult properly can cap what the landlord is allowed to recover from each leaseholder. Leaseholders also have statutory rights to request a summary of costs and to inspect supporting documents.

How to use this document

1. Read your lease carefully. Before raising a dispute, go back to the lease itself. It defines what the landlord can charge for, how costs are apportioned between flats, when demands can be issued, and whether a reserve fund is permitted. Many disagreements are actually about what the lease does or doesn't allow, not about the figures on the demand.
2. Request a breakdown of the costs. Write to your landlord or managing agent and ask for a detailed written breakdown of what makes up the charge, together with copies of invoices and contracts where relevant. Leaseholders have statutory rights to this information, and in many cases seeing the supporting paperwork either resolves the concern or pinpoints exactly what is being disputed.
3. Raise your concerns in writing. Put your objections in a clear letter or email, setting out which specific items you dispute and why, for example because the cost looks excessive, the work was not done properly, or the section 20 consultation process was not followed. Keep the tone factual and keep copies of everything you send and receive.
4. Try to resolve it without a hearing. Many freeholders and managing agents will negotiate once a leaseholder shows they understand their rights. You can also consider mediation, or if your landlord is a member of a redress scheme or professional body, you may be able to use their complaints process. Resolving matters informally is almost always quicker and cheaper than a tribunal application.
5. Apply to the First-tier Tribunal (Property Chamber). If discussions break down, you can apply to the tribunal for a determination under section 27A of the Landlord and Tenant Act 1985 on whether a service charge is payable and, if so, how much. The tribunal is designed to be accessible to leaseholders without solicitors, though many people still choose to take guidance before filing.

Common questions