Landlord and Tenant Act 1985

19 Limitation of service charges: reasonableness. E+W

(1) Relevant costs shall be taken into account in determining the amount of a service charge payable for a period—

(a) only to the extent that they are reasonably incurred, and

(b) where they are incurred on the provision of services or the carrying out of works, only if the services or works are of a reasonable standard;

and the amount payable shall be limited accordingly.

(2) Where a service charge is payable before the relevant costs are incurred, no greater amount than is reasonable is so payable, and after the relevant costs have been incurred any necessary adjustment shall be made by repayment, reduction or subsequent charges or otherwise.

[F1 (2A) A tenant by whom, or a landlord to whom, a service charge is alleged to be payable may apply to a leasehold valuation tribunal for a determination—

(a) whether costs incurred for services, repairs, maintenance, insurance or management were reasonably incurred,

(b) whether services or works for which costs were incurred are of a reasonable standard, or

(c) whether an amount payable before costs are incurred is reasonable.

(2B) An application may also be made to a leasehold valuation tribunal by a tenant by whom, or landlord to whom, a service charge may be payable for a determination—

(a) whether if costs were incurred for services, repairs, maintenance, insurance or management of any specified description they would be reasonable,

(b) whether services provided or works carried out to a particular specification would be of a reasonable standard, or

(c) what amount payable before costs are incurred would be reasonable.

(2C) No application under subsection (2A) or (2B) may be made in respect of a matter which—

(a) has been agreed or admitted by the tenant,

(b) under an arbitration agreement to which the tenant is a party is to be referred to arbitration, or

(c) has been the subject of determination by a court or arbitral tribunal.]

(3) An agreement by the tenant of a [F2 dwelling] (other than an arbitration agreement F3 . . .) is void in so far as it purports to provide for a determination in a particular manner, or on particular evidence, of any question—

(a) whether costs incurred for services, repairs, maintenance, insurance or management were reasonably incurred,

(b) whether services or works for which costs were incurred are of a reasonable standard, or

(c) whether an amount payable before costs are incurred is reasonable.

F4 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F5 (5) If a person takes any proceedings in the High Court in pursuance of any of the provisions of this Act relating to service charges and he could have taken those proceedings in the county court, he shall not be entitled to recover any costs.]

Textual Amendments

F1 S. 19(2A)-(2C) inserted (1.9.1997) by 1996 c. 52, s. 83(1); S.I. 1997/1851, art.2 (with Sch. para. 1)

F2 Word substituted by Landlord and Tenant Act 1987 (c. 31, SIF 75:1), s. 41, Sch. 2 para. 2(a)

F3 Words in s. 19(3) repealed (1.9.1997) by 1996 c. 52, s. 227, Sch. 19 Pt. III; S.I. 1997/1851, art. 2 (with Sch. para. 1)

F4 S. 19(4) repealed (1.9.1997) by 1996 c. 52, s. 227, Sch. 19 Pt. III; S.I. 1997/1851, art. 2 (with Sch. para. 1)

F5 S. 19(5) added by Landlord and Tenant Act 1987 (c. 31, SIF 75:1), s. 41, Sch. 2 para. 2(b), but is repealed (prosp.) by Courts and Legal Services Act 1990 (c. 41, SIF 76:1), ss. 124(3), 125(7), Sch. 20

Modifications etc. (not altering text)

C1 S. 19 amended by Local Government Act 1985 (c. 51, SIF 81:1), s. 57(7), Sch. 13 para. 24 (as substituted by Housing (Consequential Provisions) Act 1985 (c. 71, SIF 61), s. 4, Sch. 2 para. 61) and Housing Act 1988 (c. 50, SIF 61), s. 79(12)

C2 Ss. 18-30 modified (1.4.1995) by S.I. 1995/401, art. 18, Sch. para. 10(b)

Ss. 18-30 extended (5.7.1994) by 1994 c. 19, ss. 39, 66(2)(b), Sch. 13 para. 23(b) (with ss. 54(5)(7), 55(5), Sch. 17 paras. 22(1), 23(2))

C3 Ss. 18-30 modified (30.9.2003 for E. and 30.3.2004 for W.) by 2002 c. 15, ss. 102, 181(1), Sch. 7 para. 4; S.I. 2003/1986, art. 2(a); S.I. 2004/669, art. 2(a)

Ss. 18-30B extended (30.9.2003 and 28.2.2005 for E. for certain purposes otherwise prosp. and 30.3.2004 and 31.5.2005 for W. for certain purposes and otherwise prosp.) by 2002 c. 15, ss. 172, 181(1); S.I. 2003/1986, art. 2(c)(ii) (subject to Sch. 2); S.I. 2004/669, art. 2(c)(ii) (subject to Sch. 2); S.I. 2004/3056, art. 3(h) (subject to art. 4 (as amended by S.I. 2005/193, art. 2)); S.I. 2005/1353, art. 2(h) (subject to art. 3)

C4 S. 19(1)(2) excluded by S.I. 1988/1283, art. 2, Sch. para. 2(a)

C5 S. 19(3) excluded by S.I. 1988/1283, art. 2, Sch. para. 2(b)

C6 S. 19(5) excluded by S.I. 1988/1283, art. 2, Sch. para. 5