Leasehold and Freehold Reform Act 2024

(25A) (1) A tenant may make an application to the appropriate tribunal on the ground that the landlord— (a) demanded the payment of a service charge otherwise than in accordance with section 21C(1); (b) failed to provide a report in accordance with section 21E. (2) On an application made under subsection (1), the tribunal may make one or more of the following orders— (a) an order that the landlord must, before the end of the period of 14 days beginning with the day after the date of the order— (i) demand the payment of a service charge in accordance with section 21C(1); (ii) provide a report in accordance with section 21E; (b) an order that the landlord pay damages to the tenant for the failure; (c) any other order which the tribunal considers consequential on an order under paragraph (a) or (b). (3) A person (“C”) may make an application to the appropriate tribunal on the ground that another person (“D”) failed to comply with a requirement under section 21F or 21G. (4) On an application made under subsection (3), the tribunal may make one or more of the following orders— (a) an order that D comply with the requirement before the end of the period of 14 days beginning with the day after the date of the order; (b) an order that D pay damages to C for the failure; (c) any other order which the tribunal considers consequential on an order under paragraph (a) or (b). (5) Damages under this section may not exceed £5,000. (6) The appropriate authority may by regulations amend the amount in subsection (5) if the appropriate authority considers it expedient to do so to reflect changes in the value of money. (7) A landlord may not for any purpose set off damages payable by the landlord to a tenant under this section against any present or future liability of the tenant to the landlord. (8) Where a landlord is “the payee” for the purposes of section 42 of the Landlord and Tenant Act 1987, and the landlord uses sums that are held on trust under that section to pay damages under this section, such use is a breach of that trust. (9) Amounts payable by way of damages under this section are not to be regarded as relevant costs to be taken into account in determining the amount of any variable service charge payable by a tenant (whether or not a tenant to whom the damages are paid). (10) A lease, contract or other arrangement is of no effect to the extent that it would make provision contrary to subsections (7) to (9). (11) Regulations under this section— (a) are to be made by statutory instrument; (b) may make provision generally or only in relation to specific cases; (c) may make different provision for different purposes; (d) may include supplementary, incidental, transitional or saving provision. (12) A statutory instrument containing regulations under this section is subject to the negative procedure.

Insurance

Limitation on ability of landlord to charge insurance costs

59

After section 20F of the LTA 1985 insert—

(20G) (1) Excluded insurance costs are not to be regarded as relevant costs to be taken into account in determining the amount of any variable service charge payable by a tenant. (2) “Excluded insurance costs” are any costs (whether or not they are expressed as forming part of an insurance premium) that— (a) are attributable to payments made, or to be made, to arrange or manage insurance, and (b) are not attributable to a permitted insurance payment. (3) Payments made to arrange or manage insurance include payments made— (a) for the purpose of providing an incentive to enter into, or arrange for another person to enter into, a particular contract of insurance; (b) as remuneration for any work done, however described, in relation to— (i) a contract of insurance before or after it has been entered into, or (ii) insurance generally without a particular contract of insurance in contemplation. (4) A “permitted insurance payment” is a payment of a description specified in regulations made by the appropriate authority. (5) The regulations may provide that a payment is a permitted insurance payment by reference to— (a) the kind of person to or in respect of which the payment is made; (b) the circumstances in which the payment is made; (c) the method by which the amount of the payment is calculated (which may be a method specified in the regulations); (d) the nature of its connection with work done, costs incurred or time spent; (e) any other matter. (6) In this section, a reference to a payment includes— (a) a non-monetary benefit; (b) a right to retain money or a non-monetary benefit instead of paying or giving it to another person. (7) Regulations under this section— (a) are to be made by statutory instrument; (b) may make provision generally or only in relation to specific cases; (c) may make different provision for different purposes; (d) may include supplementary, incidental, transitional or saving provision. (8) A statutory instrument containing regulations under this section (whether alone or with other provision) is subject to the affirmative procedure. (20H) (1) This section applies if, despite section 20G(1), a tenant pays a prohibited amount to any person. (2) For the purposes of this section, a “prohibited amount” is an amount that is— (a) demanded as a variable service charge, and (b) attributable to excluded insurance costs. (3) The appropriate tribunal may, on the application of the tenant— (a) order the person to which the prohibited amount was paid to return all or any part of the amount to the tenant; (b) order— (i) the tenant’s landlord, (ii) a person that benefited from the payment of the prohibited amount, or (iii) a person that benefited from a payment to which the excluded insurance costs are attributable, to pay damages to the tenant. (4) Damages under subsection (3)(b) must— (a) equal or exceed the prohibited amount paid; (b) not exceed an amount that is three times the prohibited amount paid. (5) If the appropriate tribunal orders that more than one person is to pay damages to the tenant under subsection (3)(b)— (a) the tribunal may order that those persons are to be jointly, severally, or jointly and severally liable to pay the damages, and (b) the references in subsection (4) and paragraph (a) to the damages are to the damages payable by all of those persons taken together. (20I) (1) It is an implied term of a lease under which a service charge is payable that, if the landlord incurs costs attributable to a permitted insurance payment, the tenant must pay the landlord the amount of those costs. (2) Such an amount— (a) is a variable service charge for the purposes of section 18, and the provisions of this Act relating to service charges apply accordingly; (b) is payable irrespective of whether a lease, contract or other arrangement provides for it to be payable as a service charge. (3) A lease, contract or other arrangement is of no effect to the extent it would limit the amount payable by the tenant under this section.

Duty to provide information about insurance to tenants

60

• (1) The Schedule to the LTA 1985 (rights in relation to insurance) is amended as follows.

• (2) After paragraph 1 insert—

(1A) (1) Sub-paragraph (2) applies where a service charge payable by a tenant of a dwelling consists of or includes an amount payable directly or indirectly for insurance. (2) The landlord must— (a) obtain specified information about the insurance, including by requesting the information from another person, and (b) within a specified period after insurance is effected in relation to the dwelling, provide that information to the tenant. “Specified” means specified in regulations made by the appropriate authority. (3) Regulations under sub-paragraph (2) may provide for circumstances in which a specified period is to be extended. (4) Paragraph 1B makes further provision about requests by the landlord under sub-paragraph (2)(a). (5) The appropriate authority may by regulations make provision as to the form and manner in which the information is to be provided. (6) For the purposes of this paragraph, insurance is “effected” in relation to a dwelling whenever an insurance policy is purchased or renewed in relation to the dwelling. (7) The landlord may charge the tenant for the costs of complying with the duty in sub-paragraph (2). (8) The appropriate authority may by regulations provide for exceptions to the duty in sub-paragraph (2) by reference to— (a) descriptions of landlord; (b) descriptions of insurance; (c) any other matter. (9) In this paragraph, “information” includes a document containing information and a copy of such a document. (10) Regulations under this paragraph— (a) are to be made by statutory instrument; (b) may make provision generally or only in relation to specific cases; (c) may make different provision for different purposes; (d) may include supplementary, incidental, transitional or saving provision. (11) A statutory instrument containing regulations under this paragraph is subject to the negative procedure. (1B) (1) Sub-paragraph (2) applies where a landlord requests information from another person under paragraph 1A(2)(a). (2) That person must provide the landlord with any of the information requested that is within the person’s possession. (3) A person (“A”) must request information from another person (“B”) if— (a) the information has been requested from A under paragraph 1A(2)(a) or this sub-paragraph, (b) A does not possess the information when the request is made, and (c) A believes that B possesses the information. (4) B must provide A with any of the information requested that is within B’s possession. (5) A person must provide information they are required to provide under this paragraph before the end of a specified period beginning with the day on which a request for the information is made. (6) In this paragraph, “specified” means specified in regulations made by the appropriate authority. (7) A person who provides information to another person under this paragraph may charge that person for the costs of doing so. (8) The appropriate authority may by regulations— (a) provide for how a request is to be made under paragraph 1A(2)(a) or this paragraph; (b) provide that a request may not be made until the end of a particular period, or until another condition is met; (c) make provision as to the period within which a request under sub-paragraph (3) must be made; (d) provide for circumstances in which a duty to comply with a request under paragraph 1A(2)(a) or this paragraph does not apply; (e) make provision as to how information requested is to be provided. (9) Regulations under this paragraph— (a) are to be made by statutory instrument; (b) may make provision generally or only in relation to specific cases; (c) may make different provision for different purposes; (d) may include supplementary, incidental, transitional or saving provision. (10) A statutory instrument containing regulations under this paragraph is subject to the negative procedure. (1C) (1) A tenant may make an application to the appropriate tribunal on the ground that the landlord failed to comply with a requirement under paragraph 1A. (2) On an application made under sub-paragraph (1), the tribunal may make one or both of the following orders— (a) an order that the landlord comply with the requirement before the end of a period specified in regulations made by the appropriate authority; (b) an order that the landlord pay damages to the tenant for the failure. (3) A person (“C”) may make an application to the appropriate tribunal on the ground that another person (“D”) failed to comply with a requirement under paragraph 1B. (4) On an application made under sub-paragraph (3), the tribunal may make one or both of the following orders— (a) an order that D comply with the requirement before the end of a period specified in regulations made by the appropriate authority; (b) an order that D pay damages to C for the failure. (5) Damages under this paragraph may not exceed £5,000. (6) The appropriate authority may by regulations amend the amount in sub-paragraph (5) if the appropriate authority considers it expedient to do so to reflect changes in the value of money. (7) Regulations under this paragraph— (a) are to be made by statutory instrument; (b) may make provision generally or only in relation to specific cases; (c) may make different provision for different purposes; (d) may include supplementary, incidental, transitional or saving provision. (8) A statutory instrument containing regulations under this paragraph is subject to the negative procedure.

• (3) Omit paragraphs 2 to 6.

• (4) In paragraph 9(1)—

• (a) for “Paragraphs 2 to 8” substitute “Paragraphs 1A to 8”;

• (b) for the words from “in which case” to “does not”, substitute “in which case paragraphs 1A, 1B, 7 and 8 apply but paragraph 1C does not.”

Administration charges

Duty of landlords to publish administration charge schedules

61

In Schedule 11 to the CLRA 2002 (administration charges)—

• (a) omit paragraph 4 (notice in connection with demands for administration charges);

• (b) before paragraph 5 insert—

(4A) (1) A person must produce and publish an administration charge schedule in relation to a building if the person is the landlord of the tenants of one or more dwellings in that building. (2) An “administration charge schedule” is a document setting out— (a) the administration charges which the landlord considers may be payable by one or more of those tenants, and (b) for each charge— (i) its amount, or (ii) if it is not possible to determine its amount before it becomes payable, how its amount will be determined if it becomes payable. (3) The landlord— (a) may revise a published administration charge schedule, and (b) must publish a revised schedule. (4) The landlord must provide each tenant with the administration charge schedule for the time being published in relation to the building. (5) The appropriate national authority may by regulations make provision as to— (a) the meaning of “building” for the purposes of this paragraph; (b) the form of an administration charge schedule; (c) the content of an administration charge schedule; (d) how an administration charge schedule must be published; (e) how an administration charge schedule is to be provided to a tenant. (6) An administration charge is payable by a tenant only if— (a) its amount appeared for the required period on a published administration charge schedule, or (b) its amount was determined in accordance with a method that appeared for the required period on a published administration charge schedule. (7) “The required period” is the period of 28 days ending with the day on which the administration charge is demanded to be paid. (8) This paragraph does not apply in relation to an administration charge that may be payable by a tenant of— (a) a local authority; (b) a National Park authority; (c) a new town corporation, unless the tenancy is a long tenancy. (9) Subsections (2) and (3) of section 26 of the 1985 Act apply for the purposes of sub-paragraph (8) as they apply for the purposes of subsection (1) of that section. (10) In this paragraph, “local authority” and “new town corporation” have the same meanings as in the 1985 Act (see section 38 of that Act). (4B) (1) A tenant may make an application to the appropriate tribunal on the ground that the landlord has failed to comply with paragraph 4A or regulations made under it. (2) The tribunal may make one or both of the following orders— (a) an order that the landlord comply with that paragraph or regulations made under it before the end of the period of 14 days beginning with the day after the date of the order; (b) an order that the landlord pay damages to the tenant for the failure. (3) Damages under sub-paragraph (2)(b) may not exceed £1,000. (4) The appropriate national authority may by regulations amend the amount in sub-paragraph (3) if the appropriate national authority considers it expedient to do so to reflect changes in the value of money. (5) The appropriate tribunal may not make an order under this paragraph if the landlord is— (a) a local authority; (b) a National Park authority; (c) a new town corporation. (6) In this paragraph, “local authority” and “new town corporation” have the same meanings as in the 1985 Act (see section 38 of that Act).

Litigation costs

Limits on rights of landlords to claim litigation costs from tenants

62

• (1) The LTA 1985 is amended in accordance with subsections (2) and (3).

• (2) Omit section 20C (limitation of service charges: costs of proceedings).

• (3) Before section 20D insert—

(20CA) (1) A landlord’s litigation costs are not to be regarded as relevant costs to be taken into account in determining the amount of a variable service charge, whether or not the charge is payable— (a) by a party to the lease which the relevant proceedings concern, or (b) to a person that is party to the relevant proceedings. (2) But the relevant court or tribunal may, on an application by a landlord, order that subsection (1) does not apply to any or all of the landlord’s litigation costs in relation to a variable service charge payable by a person specified in the application. (3) An order may be made only in respect of litigation costs— (a) that would, but for subsection (1), be taken into account in determining the amount of the variable service charge; (b) that are not incurred, or to be incurred, in connection with relevant proceedings arising under— (i) Part 1 of the Leasehold Reform Act 1967 (enfranchisement and extension of leases of houses), (ii) Chapter 1 or 2 of Part 1 of the Leasehold Reform, Housing and Urban Development Act 1993 (enfranchisement and extension of leases of flats), or (iii) Chapter 1 of Part 2 of the Commonhold and Leasehold Reform Act 2002 (right to manage). (4) The relevant court or tribunal may make such order on the application as it considers just and equitable in the circumstances. (5) The relevant court or tribunal must, in deciding whether to make an order, take into account any matters specified in regulations made by the appropriate authority. (6) The appropriate authority may by regulations make provision about— (a) how an application is to be made; (b) whether and how notice of an application is to be given to— (i) a person specified in the application; (ii) a person not specified in the application; (c) the effect of— (i) giving notice of an application; (ii) failing to give notice of an application; (d) circumstances in which a person not specified in an application is to be treated as having been specified. (7) See section 20CB for powers of the appropriate authority to provide for other exceptions to subsection (1). (8) A lease, contract or other arrangement is of no effect to the extent it makes provision contrary to this section, regulations made under this section or an order made under this section. (9) In this section— - “litigation costs” means any costs incurred, or to be incurred, by a person in connection with relevant proceedings to which they are party; - “relevant proceedings” means proceedings— that are before a court, residential property tribunal, leasehold valuation tribunal, the First-tier Tribunal or the Upper Tribunal, or are arbitration proceedings, to which a landlord and a tenant are party, and that concern a lease of a dwelling to which that landlord and that tenant are party; - “the relevant court or tribunal” means— where the relevant proceedings are court proceedings, the court before which the proceedings are taking place or, if the application is made after the proceedings are concluded, the county court; where the relevant proceedings are before a residential property tribunal, a leasehold valuation tribunal; where the relevant proceedings are before a leasehold valuation tribunal, the tribunal before which the proceedings are taking place or, if the application is made after the proceedings are concluded, any leasehold valuation tribunal; where the relevant proceedings are before the First-tier Tribunal, the Tribunal; where the relevant proceedings are before the Upper Tribunal, the Tribunal; where the relevant proceedings are arbitration proceedings, the arbitral tribunal or, if the application is made after the proceedings are concluded, the county court. (10) A reference in this section to proceedings concerning a lease includes— (a) proceedings concerning any matter arising out of— (i) the existence of the lease, (ii) any term of the lease, or (iii) any agreement or arrangement entered into in connection with the lease; (b) proceedings concerning any enactment relevant to— (i) the lease, or (ii) any agreement or arrangement entered into in connection with the lease; (c) proceedings that otherwise have a connection with the lease. (11) Regulations under this section— (a) are to be made by statutory instrument; (b) may make provision generally or only in relation to specific cases; (c) may make different provision for different purposes; (d) may include supplementary, incidental, transitional or saving provision. (12) A statutory instrument containing regulations under this section is subject to the negative procedure. (20CB) (1) The appropriate authority may by regulations provide for circumstances in which— (a) section 20CA(1) does not apply, or (b) the effect of section 20CA(1) is to be suspended until an event of a specified description occurs. (2) The circumstances may include, among other things, that— (a) the litigation costs, (b) the relevant proceedings, or (c) the landlord, are of a specified description. (3) Where, by virtue of regulations under subsection (1)(b), the effect of section 20CA(1) is suspended until an event of a specified description occurs— (a) section 20CA(1) does not have effect before the event, but (b) section 20CA(1) does have effect on or after the event in relation to a variable service charge paid or payable before the event. (4) Accordingly, if— (a) a variable service charge was paid before the event, and (b) the landlord’s litigation costs were regarded as relevant costs to be taken into account in determining the amount of that charge until the event because the effect of section 20CA(1) was suspended, the landlord may retain the amount of those costs after the event only if the relevant court or tribunal makes an order under section 20CA(2) in relation to that charge. (5) In this section— - “litigation costs”, “relevant proceedings” and “the relevant court or tribunal” have the same meaning as in section 20CA; - “specified” means specified in regulations under this section. (6) Regulations under this section— (a) are to be made by statutory instrument; (b) may make provision generally or only in relation to specific cases; (c) may make different provision for different purposes; (d) may include supplementary, incidental, transitional or saving provision. (7) A statutory instrument containing regulations under this section (whether alone or with other provision) is subject to the affirmative procedure.

• (4) The CLRA 2002 is amended in accordance with subsections (5) to (7).

• (5) In section 172(1) (application of provision to the Crown)—

• (a) omit the “and” at the end of paragraph (g);

• (b) in paragraph (h), at the end insert

, and (i) Schedule 12 (leasehold valuation tribunals), as it applies in relation to paragraph 5B of Schedule 11.

• (6) In section 178(4) (orders and regulations), after “171” insert “, paragraph 5C of Schedule 11”.

• (7) In Schedule 11 (administration charges)—

• (a) omit paragraph 5A (limitation of administration charges: costs of proceedings);

• (b) before paragraph 6 insert—

(5B) (1) No administration charge is payable by a tenant of a dwelling in respect of the landlord’s litigation costs. (2) But the relevant court or tribunal may, on an application by a landlord, order that sub-paragraph (1) does not apply to an administration charge in respect of all or any of the landlord’s litigation costs. (3) An order may be made only in respect of an administration charge— (a) that would, but for sub-paragraph (1), be payable by the tenant; (b) that is for litigation costs that are not incurred, or to be incurred, in connection with relevant proceedings arising under— (i) Part 1 of the 1967 Act (enfranchisement and extension of leases of houses), (ii) Chapter 1 or 2 of Part 1 of the 1993 Act (enfranchisement and extension of leases of flats), or (iii) Chapter 1 of Part 2 of this Act (right to manage). (4) The relevant court or tribunal may make such order on the application as it considers just and equitable in the circumstances. (5) The relevant court or tribunal must, in deciding whether to make an order, take into account any matters specified in regulations made by the appropriate national authority. (6) See paragraph 5C for powers of the appropriate national authority to provide for other exceptions to sub-paragraph (1). (7) A lease, contract or other arrangement is of no effect to the extent it makes provision contrary to this paragraph, regulations made under this paragraph, or an order made under this paragraph. (8) In this paragraph— - “litigation costs” means any costs incurred, or to be incurred, by a person in connection with relevant proceedings to which they are party; - “relevant proceedings” means proceedings— that are before a court, residential property tribunal, leasehold valuation tribunal, the First-tier Tribunal or the Upper Tribunal, or are arbitration proceedings, to which a landlord and a tenant are party, and that concern a lease to which that landlord and that tenant are party; - “the relevant court or tribunal” means— where the relevant proceedings are court proceedings, the court before which the proceedings are taking place or, if the application is made after the proceedings are concluded, the county court; where the relevant proceedings are before a residential property tribunal, a leasehold valuation tribunal; where the relevant proceedings are before a leasehold valuation tribunal, the tribunal before which the proceedings are taking place or, if the application is made after the proceedings are concluded, any leasehold valuation tribunal; where the relevant proceedings are before the First-tier Tribunal, the Tribunal; where the relevant proceedings are before the Upper Tribunal, the Tribunal; where the relevant proceedings are arbitration proceedings, the arbitral tribunal or, if the application is made after the proceedings are concluded, the county court. (9) The reference in the definition of “relevant proceedings” to proceedings concerning a lease includes— (a) proceedings concerning any matter arising out of— (i) the existence of the lease, (ii) any term of the lease, or (iii) any agreement or arrangement entered into in connection with the lease; (b) proceedings concerning any enactment relevant to— (i) the lease, or (ii) any agreement or arrangement entered into in connection with the lease; (c) proceedings that otherwise have a connection with the lease. (5C) (1) The appropriate national authority may by regulations provide for circumstances in which— (a) paragraph 5B(1) does not apply, or (b) the effect of paragraph 5B(1) is to be suspended until an event of a specified description occurs. (2) The circumstances may include, among other things, that— (a) the litigation costs, (b) the relevant proceedings, or (c) the landlord, are of a specified description. (3) Where, by virtue of regulations under sub-paragraph (1)(b), the effect of paragraph 5B(1) is suspended until an event of a specified description occurs— (a) paragraph 5B(1) does not have effect before the event, but (b) paragraph 5B(1) does have effect on or after the event in relation to an administration charge paid or payable before the event. (4) Accordingly, if an administration charge was paid before the event in respect of the landlord’s litigation costs because the effect of paragraph 5B(1) was suspended, the landlord may retain the amount of that charge after the event only if the relevant court or tribunal makes an order under paragraph 5B(2) in relation to that charge. (5) In this paragraph— - “litigation costs”, “relevant proceedings” and “the relevant court or tribunal” have the same meaning as in paragraph 5B; - “specified” means specified in regulations under this paragraph.

Right of tenants to claim litigation costs from landlords

63

After section 30I of the LTA 1985 insert—

(30J) (1) It is an implied term of a lease that if— (a) there are relevant proceedings concerning the lease, and (b) the relevant court or tribunal orders, on an application by the tenant, that the landlord pay an amount in respect of all or any of the tenant’s litigation costs in connection with the proceedings, the landlord must pay the tenant the amount ordered. (2) The relevant court or tribunal may make such order on the application as it considers just and equitable in the circumstances. (3) The relevant court or tribunal must, in deciding whether to make an order, take into account any matters specified in regulations made by the appropriate authority. (4) Costs incurred by a landlord— (a) in connection with an application for an order, (b) in compliance with the implied term, or (c) otherwise in connection with the implied term or an order (for example, in connection with appeal proceedings or proceedings to enforce the implied term), are litigation costs of the landlord (and section 20CA of this Act and paragraph 5B of Schedule 11 to the Commonhold and Leasehold Reform Act 2002 apply accordingly). (5) A lease, contract or other arrangement is of no effect to the extent it makes provision contrary to this section, regulations made under this section or an order made under this section. (6) In this section— - “landlord” and “tenant” have the same meanings as in the provisions relating to service charges (see section 30); - “litigation costs” means any costs incurred, or to be incurred, by a person in connection with relevant proceedings to which they are party; - “relevant proceedings” means proceedings— that are before a court, residential property tribunal, leasehold valuation tribunal, the First-tier Tribunal or the Upper Tribunal, or are arbitration proceedings, to which a landlord and a tenant are party, that concern a lease of a dwelling to which that landlord and that tenant are party, and that relate to a matter of a description specified in regulations made by the appropriate authority; - “the relevant court or tribunal” means— where the relevant proceedings are court proceedings, the court before which the proceedings are taking place or, if the application is made after the proceedings are concluded, the county court; where the relevant proceedings are before a residential property tribunal, a leasehold valuation tribunal; where the relevant proceedings are before a leasehold valuation tribunal, the tribunal before which the proceedings are taking place or, if the application is made after the proceedings are concluded, any leasehold valuation tribunal; where the relevant proceedings are before the First-tier Tribunal, the tribunal; where the relevant proceedings are before the Upper Tribunal, the tribunal; where the relevant proceedings are arbitration proceedings, the arbitral tribunal or, if the application is made after the proceedings are concluded, the county court. (7) A reference in this section to proceedings concerning a lease includes— (a) proceedings concerning any matter arising out of— (i) the existence of the lease, (ii) any term of the lease, or (iii) any agreement or arrangement entered into in connection with the lease; (b) proceedings concerning any enactment relevant to— (i) the lease, or (ii) any agreement or arrangement entered into in connection with the lease; (c) proceedings that otherwise have a connection with the lease. (8) Regulations under this section— (a) are to be made by statutory instrument; (b) may make provision generally or only in relation to specific cases; (c) may make different provision for different purposes; (d) may include supplementary, incidental, transitional or saving provision. (9) A statutory instrument containing regulations under this section is subject to the negative procedure.

Non-litigation costs: enfranchisement, extension and right to manage

Restriction on recovery of non-litigation costs of enfranchisement, extension and right to manage

64

After section 20I of the LTA 1985 (as inserted by section 59) insert—

(20J) (1) Non-litigation costs incurred, or to be incurred, by a landlord in connection with a relevant claim are not to be regarded as relevant costs to be taken into account in determining the amount of a variable service charge payable by a tenant who is a non-participating tenant in relation to that claim. (2) A lease, contract or other arrangement is of no effect to the extent it makes provision to the contrary. (3) In this section and section 20K— - “the 1967 Act” means the Leasehold Reform Act 1967; - “the 1993 Act” means the Leasehold Reform, Housing and Urban Development Act 1993; - “the 2002 Act” means the Commonhold and Leasehold Reform Act 2002; - “non-litigation costs” means costs incurred, or to be incurred, other than in connection with proceedings before a court or tribunal; - “non-participating tenant”, in relation to a relevant claim, means a tenant who is not a participating tenant; - “participating tenant”, in relation to a relevant claim, means a tenant who— in the case of a claim under Part 1 of the 1967 Act or Chapter 1 or 2 of Part 1 of the 1993 Act, is making the claim; in the case of a claim under Chapter 1 of Part 2 of the 2002 Act, is or has been a member of the RTM company making the claim; - “relevant claim” means— a claim under Part 1 of the 1967 Act (enfranchisement and extension of leases of houses); a claim under Chapter 1 or 2 of Part 1 of the 1993 Act (enfranchisement and extension of leases of flats); a claim under Chapter 1 of Part 2 of the 2002 Act (right to manage); - “RTM company” has the same meaning as in Chapter 1 of Part 2 of the 2002 Act (see section 71 of that Act). (4) For provision about when a participating tenant is and is not liable in respect of non-litigation costs in relation to a relevant claim, see— (a) section 19A of the 1967 Act; (b) section 89A of the 1993 Act; (c) section 87A of the 2002 Act. (20K) (1) This section applies if, despite section 20J(1), a non-participating tenant in relation to a relevant claim pays a prohibited amount to any person. (2) For the purposes of this section, a “prohibited amount” is an amount that is— (a) demanded as a variable service charge, and (b) attributable to non-litigation costs incurred, or to be incurred, in connection with the claim. (3) The appropriate tribunal may, on the application of the tenant, order the person to which the prohibited amount was paid to return all or any part of the amount to the tenant.

Appointment of manager by Tribunal

Appointment of manager: power to vary or discharge orders

65

In section 24 of the LTA 1987 (appointment of manager by a tribunal)—

• (a) in subsection (9), after “interested” insert “or of its own motion”;

• (b) in subsection (9A), omit “on the application of any relevant person”.

Appointment of manager: breach of redress scheme requirements

66

In section 24(2) of the LTA 1987 (grounds for appointment of manager)—

• (a) omit the “or” at the end of paragraph (ac);

• (b) after paragraph (ac) insert—

(ad) where the tribunal is satisfied— (i) that any relevant person has breached regulations under section 100(1) of the Leasehold and Freehold Reform Act 2024 (requirement to join redress scheme), and (ii) that it is just and convenient to make the order in all the circumstances of the case;

.

Sales information requests

Leasehold sales information requests

67

In the LTA 1985, after section 30J (as inserted by section 63) insert—

(30K) (1) A tenant of a dwelling under a long lease may give a sales information request to the landlord. (2) A “sales information request” is a document in a specified form, and given in a specified manner, setting out— (a) that the tenant is contemplating selling a long lease of the dwelling, (b) information that the tenant requests from the landlord for the purpose of the contemplated sale, and (c) any other specified information. (3) A tenant may request information in a sales information request only if the information is specified in regulations made by the appropriate authority. (4) The appropriate authority may specify information for the purposes of subsection (3) only if the information could reasonably be expected to assist a prospective purchaser in deciding whether to purchase a long lease of a dwelling. (5) The appropriate authority may by regulations provide that a sales information request may not be given until the end of a particular period, or until another condition is met. (6) Regulations under this section— (a) are to be made by statutory instrument; (b) may make provision generally or only in relation to specific cases; (c) may make different provision for different purposes; (d) may include supplementary, incidental, transitional or saving provision. (7) A statutory instrument containing regulations under this section is subject to the negative procedure. (30L) (1) A landlord who has been given a sales information request must provide the tenant with any of the information requested that is within the landlord’s possession. (2) The landlord must request information from another person if— (a) the information has been requested from the landlord in a sales information request, (b) the landlord does not possess the information when the request is made, and (c) the landlord believes that the other person possesses the information. (3) That person must provide the landlord with any of the information requested that is within that person’s possession. (4) A person (“A”) must request information from another person (“B”) if— (a) the information has been requested from A in a request under subsection (2) or this subsection (an “onward request”), (b) A does not possess the information when the request is made, and (c) A believes that B possesses the information. (5) B must provide A with any of the information requested that is within B’s possession. (6) A person who is required to provide information under this section must do so before the end of a specified period beginning with the day on which the request for the information is made. (7) A person who— (a) has been given a sales information request or an onward request, and (b) as a result of not possessing the information requested, does not provide the information before the end of a specified period beginning with the day on which the request is made, must give the person making the request a negative response confirmation. (8) A “negative response confirmation” is a document in a specified form, and given in a specified manner, setting out— (a) that the person is unable to provide the information requested because it is not in the person’s possession; (b) a description of what action the person has taken to determine whether the information is in the person’s possession; (c) any onward requests the person has made and the persons to whom they were made; (d) an explanation of why the person was unable to obtain the information, including details of any negative response confirmation received by the person; (e) any other specified information. (9) A person who is required to give a negative response confirmation must do so before the end of a specified period beginning with the day after the day on which the period referred to in subsection (7)(b) ends. (10) The appropriate authority may by regulations— (a) provide that an onward request may not be made until the end of a particular period, or until another condition is met; (b) provide for how an onward request is to be made; (c) make provision as to the period within which an onward request must be made; (d) provide for circumstances in which a duty to comply with a sales information request or an onward request does not apply; (e) make provision as to how information requested in a sales information request or an onward request is to be provided; (f) make provision for circumstances in which a period specified for the purposes of subsection (6), (7) or (9) is to be extended. (11) Regulations under this section— (a) are to be made by statutory instrument; (b) may make provision generally or only in relation to specific cases; (c) may make different provision for different purposes; (d) may include supplementary, incidental, transitional or saving provision. (12) A statutory instrument containing regulations under this section is subject to the negative procedure. (30M) (1) Subject to any regulations under subsection (2), a person (“P”) may charge another person for— (a) determining whether information requested in a sales information request or an onward request is in P’s possession; (b) providing or obtaining information under section 30L. (2) The appropriate authority may by regulations— (a) limit the amount that may be charged under subsection (1); (b) prohibit a charge under subsection (1) in specified circumstances or unless specified requirements are met. (3) If a landlord charges a tenant under subsection (1), the charge— (a) is an administration charge for the purposes of Schedule 11 to the Commonhold and Leasehold Reform Act 2002 (see paragraph 1(1)(b) of that Schedule), and (b) is not to be treated as a service charge for the purposes of this Act. (4) For the purposes of the provisions of this Act relating to service charges, the costs of— (a) determining whether information requested in a sales information request or an onward request is in a person’s possession, or (b) providing or obtaining information under section 30L, are not to be regarded as relevant costs to be taken into account in determining the amount of any variable service charge payable by any tenant. (5) Regulations under this section— (a) are to be made by statutory instrument; (b) may make provision generally or only in relation to specific cases; (c) may make different provision for different purposes; (d) may include supplementary, incidental, transitional or saving provision. (6) A statutory instrument containing regulations under this section is subject to the negative procedure. (30N) (1) A person who makes a sales information request or an onward request (“C”) may make an application to the appropriate tribunal on the ground that another person (“D”) failed to comply with a requirement under section 30L or 30M in relation to the request. (2) The tribunal may make one or more of the following orders— (a) an order that D comply with the requirement before the end of a period specified by the tribunal; (b) an order that D pay damages to C for the failure; (c) if D charged C in excess of a limit specified in regulations under section 30M(2)(a), an order that D repay the amount charged in excess of the limit to C; (d) if D charged C in breach of regulations under section 30M(2)(b), an order that D repay the amount charged to C. (3) Damages under subsection (2)(b) may not exceed £5,000. (4) The appropriate authority may by regulations amend the amount in subsection (3) if the appropriate authority considers it expedient to do so to reflect changes in the value of money. (5) Regulations under this section— (a) are to be made by statutory instrument; (b) may make provision generally or only in relation to specific cases; (c) may make different provision for different purposes; (d) may include supplementary, incidental, transitional or saving provision. (6) A statutory instrument containing regulations under this section is subject to the negative procedure. (30P) (1) In sections 30K to 30N— - “information” includes a document containing information, and a copy of such a document; - “landlord” includes— any person who has a right to enforce payment of a service charge; a RTM company within the meaning of Chapter 1 of Part 2 of the Commonhold and Leasehold Reform Act 2002 (see section 73 of that Act); - “long lease” has the same meaning as in Chapter 1 of Part 2 of the Commonhold and Leasehold Reform Act 2002 (see sections 76 and 77 of that Act); - “onward request” has the meaning given in section 30L(4)(a); - “sales information request” has the meaning given in section 30K(2); - “specified” means specified in, or determined in accordance with, regulations made by the appropriate authority. (2) A reference in sections 30K to 30N to purchasing a long lease is a reference to becoming a tenant under the lease for consideration, whether by grant, assignment or otherwise, and references to selling a long lease are to be read accordingly.

General

Regulations under the LTA 1985: procedure and appropriate authority

68

• (1) The LTA 1985 is amended as follows.

• (2) After section 37 insert—

(37A) (1) In this Act, if a statutory instrument is “subject to the affirmative procedure” it may not be made unless— (a) where it contains (whether alone or with other provision) regulations or an order made by the Secretary of State, a draft of the instrument has been laid before and approved by a resolution of each House of Parliament; (b) where it contains (whether alone or with other provision) regulations or an order made by the Welsh Ministers, a draft of the instrument has been laid before and approved by a resolution of Senedd Cymru. (2) In this Act, if a statutory instrument is “subject to the negative procedure” it is— (a) where it contains regulations or an order made by the Secretary of State, subject to annulment in pursuance of a resolution of either House of Parliament; (b) where it contains regulations or an order made by the Welsh Ministers, subject to annulment in pursuance of a resolution of Senedd Cymru.

• (3) In section 38 (minor definitions), after the definition of “address” insert—

• “the appropriate authority”— in relation to England, means the Secretary of State; in relation to Wales, means the Welsh Ministers;

.

• (4) In section 39 (index of defined expressions), after the entry for “address” insert—

the appropriate authority	section 38

.

LTA 1985: Crown application

69

• (1) Before section 40 of the LTA 1985 insert—

(39A) Sections 18 to 30P, and the Schedule, bind the Crown.

• (2) In section 172 of the CLRA 2002 (application to Crown of certain provisions)—

• (a) in subsection (1), omit paragraph (a);

• (b) omit subsection (3).

Part 4: consequential amendments

70

Schedule 11 contains amendments that are consequential on this Part.

Application of Part 4 to existing leases

71

Each section of this Part has effect in relation to a lease (within the meaning of the LTA 1985) whether the lease was entered into before or after the section comes into force.

Part 5 — Regulation of estate management

Key definitions

Meaning of “estate management” etc

72

• (1) This section has effect for the purposes of this Part.

• (2) “Estate management” means—

• (a) the provision of services,

• (b) the carrying out of maintenance, repairs or improvements,

• (c) the effecting of insurance, or

• (d) the making of payments,

for the benefit of one or more dwellings.

• (3) “Estate manager” means a body of persons (whether incorporated or not)—

• (a) which carries out, or is required to carry out, estate management, and

• (b) which recovers the costs of carrying out estate management by means of relevant obligations.

• (4) A reference to an estate manager in relation to a managed dwelling means an estate manager which carries out, or is required to carry out, estate management in relation to that dwelling.

• (5) “Managed dwelling” means a dwelling in relation to which an estate manager carries out, or is required to carry out, estate management.

• (6) “Relevant obligation”, in relation to a dwelling, means any of the following obligations (whether or not the obligation arises before this section comes into force)—

• (a) a rentcharge which—

• (i) is charged on or issues out of the land which comprises the dwelling or a building of which the dwelling forms part, and

• (ii) is an estate rentcharge by virtue of section 2(4)(b) and (5) of the Rentcharges Act 1977 (“the RA 1977”);

• (b) an obligation under a lease of the dwelling;

• (c) any other obligation that—

• (i) runs with the land which comprises the dwelling or a building of which the dwelling forms part, or

• (ii) otherwise (whether in law or in equity) binds an owner for the time being of the land which comprises the dwelling;

• (d) any other obligation—

• (i) to which an owner of the dwelling is subject, and

• (ii) to which any immediate successor in title of that owner will become subject, if an arrangement to which the estate manager and that owner are parties is performed.

• (7) The arrangements that are within subsection (6)(d) include an arrangement under which the owner is required (in particular by a limitation on transfer of title to the dwelling or on registration of a transfer of title) to ensure that any immediate successor in title to the owner enters into an obligation.

• (8) “Estate management charge” means an amount in relation to which each of the following applies—

• (a) the amount is payable by an owner of a managed dwelling;

• (b) the amount is payable for the purpose of meeting, or contributing towards, relevant costs (see subsection (11)) in relation to that dwelling;

• (c) payment of the amount is required by, or enforceable through, a relevant obligation.

• (9) But none of the following is an estate management charge—

• (a) an amount payable under a scheme established in accordance with section 19 of the LRA 1967 or Chapter 4 of Part 1 of the LRHUDA 1993 (estate management schemes following enfranchisement);

• (b) rent reserved under a lease;

• (c) a service charge (which has the meaning given in section 18 of the LTA 1985);

• (d) an administration charge (see section 83);

• (e) a charge payable by a unit-holder of a commonhold unit to meet the expenses of a commonhold association.

• (10) For the purposes of subsection (9)(e)—

• (a) “unit-holder”, “commonhold unit” and “commonhold association” have the same meaning as in Part 1 of the CLRA 2002 (see section 1(3) of that Act);

• (b) the expenses of a commonhold association include the building safety expenses of the association (within the meaning given in section 38A of the CLRA 2002).

• (11) “Relevant costs”, in relation to a dwelling, means costs which are incurred by an estate manager in carrying out estate management for the benefit of the dwelling or for the benefit of the dwelling and other dwellings.

• (12) Costs are relevant costs in relation to an estate management charge whether they are incurred, or to be incurred, in the period for which the charge is payable or in an earlier or later period.

Limitation of estate management charges

Estate management charges: general limitations

73

• (1) A charge demanded as an estate management charge is payable—

• (a) only to the extent that the amount of the charge reflects relevant costs;

• (b) only to the extent not otherwise limited under this Part.

• (2) Sections 74 to 76 set out circumstances in which costs that would otherwise be relevant costs—

• (a) are not relevant costs, or

• (b) are relevant costs only to a limited extent.

Limitation of estate management charges: reasonableness

74

• (1) Costs incurred by an estate manager are relevant costs—

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

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

• (2) Where an estate management charge is payable before relevant costs are incurred—

• (a) no greater amount than is reasonable is so payable, and

• (b) after the costs have been incurred, any necessary adjustment must be made to the charge (by repayment, reduction of subsequent charges or otherwise).

Limitation of estate management charges: consultation requirements

75

• (1) This section applies to works if costs incurred by an estate manager in carrying out those works exceed an appropriate amount.

• (2) An “appropriate amount” is an amount set by regulations made by the Secretary of State.

• (3) Regulations under subsection (2) may make provision for either or both of the following to be an appropriate amount—

• (a) an amount specified in, or determined in accordance with, the regulations;

• (b) an amount which results in the relevant contribution of any one or more persons being an amount specified in, or determined in accordance with, the regulations.

• (4) The “relevant contribution” is the amount which an owner of a managed dwelling may be required to contribute by the payment of an estate management charge to the relevant costs incurred in carrying out the works.

• (5) Where this section applies to works, the relevant contribution is limited in accordance with subsection (9) or (10) (or both) unless the consultation requirements have, in relation to the works, been either—

• (a) complied with, or

• (b) dispensed with by (or on appeal from) the appropriate tribunal.

• (6) The “consultation requirements” are requirements specified in regulations made by the Secretary of State.

• (7) Regulations under subsection (6) may, among other things, include provision requiring an estate manager to—

• (a) provide details of proposed works to owners of managed dwellings;

• (b) obtain estimates for proposed works;

• (c) invite owners of managed dwellings to propose the names of persons from which the estate manager should try to obtain other estimates;

• (d) have regard to observations made by owners of managed dwellings in relation to proposed works and estimates;

• (e) give reasons in specified circumstances for carrying out works.

• (8) The appropriate tribunal may make a determination under subsection (5)(b) that all or any of the consultation requirements are to be dispensed with only if the tribunal is satisfied that it is reasonable to dispense with the requirements.

• (9) Where an appropriate amount is set by virtue of subsection (3)(a), the relevant contribution of an owner of a managed dwelling is limited to the appropriate amount.

• (10) Where an appropriate amount is set by virtue of subsection (3)(b), the relevant contribution of an owner of a managed dwelling whose relevant contribution would otherwise exceed the amount specified or determined in accordance with the regulations is limited to that amount.

• (11) A statutory instrument containing regulations under this section is subject to the negative procedure.

Limitation of estate management charges: time limits

76

• (1) Costs incurred by an estate manager in relation to a managed dwelling are not relevant costs for the purposes of an estate management charge payable by an owner of the dwelling if—

• (a) they were incurred more than 18 months before a demand for payment of the charge in relation to those costs is served on that owner, and

• (b) that owner was not given a future demand notice in respect of the costs before the end of the period of 18 months beginning with the date on which the costs were incurred.

• (2) A “future demand notice” is a notice in writing that—

• (a) relevant costs have been incurred, and

• (b) the owner will subsequently be required to contribute to the costs by the payment of an estate management charge.

• (3) A future demand notice must—

• (a) be in the specified form,

• (b) contain the specified information, and

• (c) be given in a specified manner.

“Specified” means specified in regulations made by the Secretary of State.

• (4) The regulations may, among other things, specify as information to be contained in a future demand notice—

• (a) an amount estimated as the amount of the costs incurred (an “estimated costs amount”);

• (b) an amount which the owner is expected to be required to contribute to the costs (an “expected contribution”);

• (c) a date on or before which it is expected that payment of the estate management charge will be demanded (an “expected demand date”).

• (5) Regulations that include provision by virtue of subsection (4) may also provide for a relevant rule to apply in a case where—

• (a) the owner has been given a future demand notice in respect of relevant costs, and

• (b) a demand for payment of an estate management charge as a contribution to those costs is served on the owner more than 18 months after the costs were incurred.

• (6) The relevant rules are—

• (a) in a case where a future demand notice is required to contain an estimated costs amount, that the owner is liable to pay the charge only to the extent it reflects relevant costs that do not exceed the estimated costs amount;

• (b) in a case where a future demand notice is required to contain an expected contribution, that the owner is liable to pay the charge only to the extent it does not exceed the expected contribution;

• (c) in a case where a future demand notice is required to contain an expected demand date, that, if the demand is served after the expected demand date, the owner is not liable to pay the charge to the extent it reflects any of the costs.

• (7) Regulations that provide for the relevant rule in subsection (6)(c) to apply may also provide that, in a case set out in the regulations, the rule is to apply as if, for the expected demand date, there were substituted a later date determined in accordance with the regulations.

• (8) A statutory instrument containing regulations under this section is subject to the negative procedure.

Determination of tribunal as to estate management charges

77

• (1) An application may be made to the appropriate tribunal for a determination as to whether an estate management charge is payable and, if it is, as to—

• (a) the person by which it is payable,

• (b) the person to which it is payable,

• (c) the amount which is payable,

• (d) the date on or by which it is payable, and

• (e) the manner in which it is payable.

• (2) Subsection (1) applies whether or not any payment has been made.

• (3) An application may also be made to the appropriate tribunal for a determination as to whether, if costs were incurred for services, repairs, maintenance, improvements, insurance or management of any specified description, an estate management charge would be payable for the costs and, if it would, as to—

• (a) the person by which it would be payable,

• (b) the person to which it would be payable,

• (c) the amount which would be payable,

• (d) the date on or by which it would be payable, and

• (e) the manner in which it would be payable.

• (4) No application under subsection (1) or (3) may be made in respect of a matter which—

• (a) relates to a managed dwelling, and has been agreed or admitted by every owner of the dwelling,

• (b) has been, or is to be, referred to arbitration pursuant to a post-dispute arbitration agreement to which every owner of the dwelling is a party,

• (c) has been the subject of determination by a court, or

• (d) has been the subject of determination by an arbitral tribunal pursuant to a post-dispute arbitration agreement.

• (5) But an owner of a managed dwelling is not to be taken to have agreed or admitted any matter by reason only of having made any payment.

• (6) An agreement (other than a post-dispute arbitration agreement) is void in so far as it purports to provide for a determination—

• (a) in a particular manner, or

• (b) on particular evidence,

of any question which may be the subject of an application under subsection (1) or (3).

Rights relating to estate management charges

Demands for payment

78

• (1) A person may not demand the payment of an estate management charge unless the demand—

• (a) is in the specified form,

• (b) contains the specified information, and

• (c) is provided in a specified manner.

“Specified” means specified in regulations made by the Secretary of State.

• (2) Accordingly, where a demand for payment of an estate management charge does not comply with subsection (1), a provision of a deed, lease, contract or other arrangement or instrument relating to non-payment or late payment of estate management charges does not have effect in relation to that charge.

• (3) The Secretary of State may by regulations provide for exceptions from subsection (1) by reference to—

• (a) descriptions of person making the demand;

• (b) descriptions of estate management charge;

• (c) any other matter.

• (4) A statutory instrument containing regulations under this section is subject to the negative procedure.

Annual reports

79

• (1) Subsection (2) applies where—

• (a) an estate manager carries out estate management, and

• (b) an owner of the managed dwelling is or may be required to pay estate management charges in respect of the management carried out.

• (2) The estate manager must, on or before the report date for an accounting period, provide the owner with a report under this section.

• (3) The Secretary of State may by regulations make provision as to—

• (a) the information to be contained in the report;

• (b) the form of the report;

• (c) the manner in which the report is to be provided.

• (4) An “accounting period” is—

• (a) a period of 12 months agreed between the estate manager and the owner for the purposes of this section, or

• (b) if no such period is agreed, a period of 12 months beginning with 1 April.

• (5) The “report date” for an accounting period is the final day of the period of one month beginning with the day after the final day of the accounting period.

• (6) The Secretary of State may by regulations provide for exceptions from the duty in subsection (1) by reference to—

• (a) descriptions of estate manager;

• (b) descriptions of estate management charge;

• (c) any other matter.

• (7) A statutory instrument containing regulations under this section is subject to the negative procedure.

Right to request information

80

• (1) An owner of a managed dwelling may require an estate manager carrying out estate management in relation to the dwelling to provide information specified in regulations made by the Secretary of State.

• (2) The Secretary of State may specify information only if it relates to estate management.

• (3) The estate manager must provide the owner with any of the information requested that is within their possession.

• (4) The estate manager must request information from another person if—

• (a) the information has been requested from the estate manager under subsection (1),

• (b) the estate manager does not possess the information when the request is made, and

• (c) the estate manager believes that the other person possesses the information.

• (5) That person must provide the estate manager with any of the information requested that is within their possession.

• (6) A person (“A”) must request information from another person (“B”) if—

• (a) the information has been requested from A under subsection (4) or this subsection,

• (b) A does not possess the information when the request is made, and

• (c) A believes that B possesses the information.

• (7) B must provide A with any of the information requested that is within B’s possession.

• (8) The Secretary of State may by regulations—

• (a) provide for how a request is to be made under this section;

• (b) provide that a request under this section may not be made until the end of a particular period, or until another condition is met;

• (c) make provision as to the period within which a request under subsection (4) or (6) must be made;

• (d) provide for circumstances in which a duty to comply with a request under this section does not apply.

• (9) Section 81 makes further provision about requests under this section.

• (10) A statutory instrument containing regulations under this section is subject to the negative procedure.

Requests under section 80: further provision

81

• (1) Subsections (2) to (6) apply where a person (“R”) requests information under section 80 from another person (“P”).

• (2) R may request that P provide the information to R by allowing R access to premises where R may inspect the information and make and remove a copy of the information.

• (3) P must provide information which P is required to provide under section 80—

• (a) before the end of a specified period beginning with the day the request is made, and

• (b) if R has made a request under subsection (2), by allowing R the access requested during a specified period.

“Specified” means specified in regulations made by the Secretary of State.

• (4) P may charge R for the costs of doing anything required under section 80 or this section.

• (5) But, if P is an estate manager, P may not charge an owner of a managed dwelling for the costs of allowing the owner access to premises to inspect information (but may charge for the making of copies).

• (6) The costs referred to in subsection (4) may be relevant costs for the purposes of an estate management charge (whether charged to an owner of that dwelling or another dwelling).

• (7) Regulations under subsection (3) may provide for circumstances in which a specified period is to be extended.

• (8) The Secretary of State may by regulations make further provision as to how information requested under section 80 is to be provided.

• (9) A statutory instrument containing regulations under this section is subject to the negative procedure.

Enforcement of sections 78 to 81

82

• (1) An owner of a managed dwelling may make an application to the appropriate tribunal on the ground that—

• (a) a person demanded the payment of an estate management charge otherwise than in accordance with section 78(1);

• (b) an estate manager failed to provide a report in accordance with section 79.

• (2) On an application made under subsection (1), the tribunal may make one or more of the following orders—

• (a) an order that an estate manager must, before the end of the period of 14 days beginning with the day after the date of the order—

• (i) demand the payment of an estate management charge in accordance with section 78(1);

• (ii) provide a report in accordance with section 79;

• (b) an order that an estate manager pay damages to the owner for the failure;

• (c) any other order which the tribunal considers consequential on an order under paragraph (a) or (b).

• (3) A person (“C”) may make an application to the appropriate tribunal on the ground that another person (“D”) failed to comply with a requirement under section 80 or 81.

• (4) On an application made under subsection (3), the tribunal may make one or more of the following orders—

• (a) an order that D comply with the requirement before the end of the period of 14 days beginning with the day after the date of the order;

• (b) an order that D pay damages to C for the failure;

• (c) any other order which the tribunal considers consequential on an order under paragraph (a) or (b).

• (5) Damages under this section may not exceed £5,000.

• (6) The appropriate authority may by regulations amend the amount in subsection (5) if the appropriate authority considers it expedient to do so to reflect changes in the value of money.

• (7) A statutory instrument containing regulations under this section is subject to the negative procedure.

Administration charges

Meaning of “administration charge”

83

• (1) For the purposes of this Part, “administration charge” means an amount payable, directly or indirectly, by an owner of a dwelling—

• (a) for or in connection with—

• (i) the grant of approvals in connection with a relevant obligation, or

• (ii) applications for such approvals;

• (b) for or in connection with the provision of information or documents by or on behalf of an estate manager;

• (c) for or in connection with—

• (i) the sale or transfer of land to which a relevant obligation relates, or

• (ii) the creation of an interest in or right over that land;

• (d) in respect of a failure by the owner to make a payment by the due date under a relevant obligation;

• (e) in connection with a breach (or alleged breach) of a relevant obligation.

• (2) But “administration charge” does not include an amount payable by a tenant of a dwelling in a case where all of the following conditions are met—

• (a) the tenant’s lease specifies that only a person who has attained a minimum age may occupy the dwelling;

• (b) the amount is payable under a term of the tenant’s lease or is otherwise payable in connection with the tenant’s lease;

• (c) the amount is payable if—

• (i) the tenant’s lease is granted, assigned or terminated,

• (ii) a lease of the dwelling which is inferior to the tenant’s lease is granted, assigned or terminated, or

• (iii) there is a change in the person or persons occupying the dwelling;

• (d) the amount is fixed or is calculated by a method determinable in advance;

• (e) any other conditions specified in regulations made by the appropriate authority.

• (3) The appropriate authority may by regulations make provision (including provision amending this Act) so as to amend the definition of “administration charge”.

• (4) A statutory instrument containing regulations under this section (whether alone or with other provision) is subject to the affirmative procedure.

Duty of estate managers to publish administration charge schedules

84

• (1) If an estate manager expects to charge an administration charge, the estate manager must produce and publish an administration charge schedule.

• (2) An “administration charge schedule” is a document setting out—

• (a) the administration charges the estate manager considers may be payable, and

• (b) for each charge—

• (i) its amount, or

• (ii) if it is not possible to determine its amount before it becomes payable, how its amount will be determined if it becomes payable.

• (3) The estate manager—

• (a) may revise a published administration charge schedule, and

• (b) must publish a revised schedule.

• (4) The estate manager must provide a person with the administration charge schedule for the time being published setting out the charges that may be payable by that person.

• (5) The appropriate authority may by regulations make provision as to—

• (a) the form of an administration charge schedule;

• (b) the content of an administration charge schedule;

• (c) how an administration charge schedule must be published;

• (d) how an administration charge schedule is to be provided to owners of dwellings.

• (6) A statutory instrument containing regulations under this section is subject to the negative procedure.

Enforcement of section 84

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• (1) An owner of a dwelling may make an application to the appropriate tribunal on the ground that an estate manager has not complied with section 84 or regulations made under it.

• (2) The tribunal may make one or both of the following orders—

• (a) an order that the manager comply with section 84 or regulations made under it before the end of the period of 14 days beginning with the day after the date of the order;

• (b) an order that the manager pay damages to the owner for the failure.

• (3) Damages under subsection (2)(b) may not exceed £1,000.

• (4) The appropriate authority may by regulations amend the amount in subsection (3) if the appropriate authority considers it expedient to do so to reflect changes in the value of money.

• (5) A statutory instrument containing regulations under this section is subject to the negative procedure.

Limitation of administration charges

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• (1) An administration charge is payable only to the extent that the amount of the charge is reasonable.

• (2) An administration charge is payable to an estate manager only if—

• (a) its amount appeared for the required period on an administration charge schedule published under section 84, or

• (b) its amount was determined in accordance with a method that appeared on the published administration charge schedule for the required period.

• (3) “The required period” is the period of 28 days ending with the day on which the administration charge is demanded to be paid.

• (4) An administration charge is not payable to an estate manager if—

• (a) the charge relates to the same matter as, or a matter of a similar nature to, a matter for which an administration charge is payable by another person to the estate manager,

• (b) the amount of the charge is different from the charge payable by that other person, and

• (c) it is not reasonable for the amount of the charge to be different.

Determination of tribunal as to administration charges

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• (1) An application may be made to the appropriate tribunal for a determination as to whether an administration charge is payable and, if it is, as to—

• (a) the person by which it is payable,

• (b) the person to which it is payable,

• (c) the amount which is payable,

• (d) the date on or by which it is payable, and

• (e) the manner in which it is payable.

• (2) Subsection (1) applies whether or not any payment has been made.

• (3) No application under subsection (1) may be made in respect of a matter which—

• (a) relates to a dwelling, and has been agreed or admitted by every owner of the dwelling,

• (b) has been, or is to be, referred to arbitration pursuant to a post-dispute arbitration agreement to which every owner of the dwelling is a party,

• (c) has been the subject of determination by a court, or

• (d) has been the subject of determination by an arbitral tribunal pursuant to a post-dispute arbitration agreement.

• (4) But an owner of a dwelling is not to be taken to have agreed or admitted any matter by reason only of having made any payment.

• (5) An agreement (other than a post-dispute arbitration agreement) is void in so far as it purports to provide for a determination—

• (a) in a particular manner, or

• (b) on particular evidence,

of any question which may be the subject matter of an application under subsection (1).

Codes of management practice