Solicitor Lauren Johnson, in our Dispute Resolution team, explains a landlord's obligations and a tenant's rights when major works need to be undertaken on a building.
When a landlord in intends to carry out major works to a building above a certain value they must consult with the tenants where those costs are payable through service charge.
For properties in England, the regulations can be found in the Service Charges (Consultation Requirements) (England) Regulations 2003.
The Consultation Regulations state that landlords must comply with the section 20 consultation requirements if:
- The landlord plans to carry out qualifying works; and
- The qualifying works would result in the contribution of any tenant being more than £250.
What is considered as qualifying works?
Qualifying works are works are considered to be works on a building or any other premises. Usually, these are repairs, maintenance or improvement works.
However, services such as window cleaning, gardening, or cleaning are not usually considered qualifying works.
What is the consultation process for qualifying works?
If the landlord intends to carry out qualifying works which would result in a tenant paying more than £250 for the works, then the Consultation Regulations must be complied with.
The consultation process is set out in Schedule 4, Part 2 to the Consultation Regulations. There are three stages:
Stage 1: Consulting on the landlord’s notice of intention to carrying out qualifying works
The landlord must give each tenant written notice of their intention to carry out the qualifying works. The Consultation Regulations set out what information the notice must contain, which includes:
a) A description of the proposed works
b) The landlord’s reason for carrying out the proposed works
c) Offer each tenant the opportunity to make observations in relation to the proposed works and to nominate a contractor that the landlord should obtain an estimate from
d) Give the date on which the consultation period ends. Tenants are usually given 30 days.
Stage 2: Consulting on the landlord’s notice of estimates for the qualifying works
In stage two, the landlord must provide the tenants with a notice of the details of at least two cost estimates for the works.
If any of the tenants have put a contractor forward, the landlord must obtain an estimate from that contractor.
The landlord must obtain one estimate from a contractor who they are not connected with.
A summary of the observations received on the landlord's notice of intention and the landlord's responses to those observations should be included in the notice of estimates.
Tenants have 30 days to make their observations under stage 2.
Stage 3: Notice of entry into contract for qualifying works
Within 21 days of entering into a contract for the qualifying works, the landlord must give each tenant a written notice, which:
- Gives the landlord's reasons for awarding the contract
- Summarise any observations made in respect of the estimates by the tenants
- Sets out the landlord's response to the observations.
The landlord does not have to comply with stage 3 if a tenant nominated the contract, or if the contract is for the lowest estimate.
Dealing with residential service charges can be difficult and can escalate quickly. Whether you are a landlord or tenant, our Dispute Resolution team can advise on property related disputes.
For further information or legal advice, please contact law@blandy.co.uk or call 0118 951 6800.
This article is intended for the use of clients and other interested parties. The information contained in it is believed to be correct at the date of publication, but it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional advice.
