Posted 03.11.14
The decision of the High Court in Philips v Francis has been overturned by a ruling in the Court of Appeal.
The decision overturned a High Court judgment in 2012, which ruled that "qualifying works" under the 1985 Landlord and Tenant Act included all works on a property during the course of a service charge period, no matter how minor.
The Court of Appeal has confirmed that a single set of qualifying works should be determined in a common sense way regarding whether items of work are subject to the same contract, done at more or less the same time or are otherwise connected or of similar character.
Once confirmed, managers and landlords will no longer need to consult on almost all works carried out to a property. Instead, common sense will prevail as to what constitutes "qualifying works", being subject to the £250 limit for any one leaseholder.
The Court has also made clear that in cases where consultation is not required, tenants have additional protection under the Act, allowing them to challenge the costs of any works which are not reasonably incurred or of a reasonable standard.
