The Upper Tribunal (Lands Chamber) issued a ruling in October 2026 confirming that section 19 of the Landlord and Tenant Act 1985 applies regardless of how widely the lease drafts the landlord's power to recover service charges. The case arose from a block of flats in London where the lease permitted the landlord to recover costs "as the landlord in its absolute discretion determines". The landlord argued this wording excluded any challenge to the quantum of charges.
The Tribunal rejected that argument. Section 19 provides a statutory overlay: service charges are only payable to the extent that they are reasonably incurred and, where services include works, the works must be carried out to a reasonable standard. This right cannot be excluded by contract. The Tribunal also confirmed that leaseholders can challenge historic service charges (subject to the 12-month dispensation notice period under s.20ZA) and that the First-tier Tribunal (Property Chamber) has jurisdiction to determine reasonableness even where the lease requires arbitration.
Practical effect. Leaseholders who have been charged for major works — including fire safety cladding remediation, roof replacements, or lift upgrades — can apply to the First-tier Tribunal (Property Chamber) to challenge the reasonableness of those charges. The application is made on Form Leasehold 6. There is no fee for leaseholders in most cases. The ruling also has implications for the Leasehold and Freehold Reform Act 2024 commencement provisions — see the related news item on the reform commencement date and the leasehold maintenance guidance update.