Service Charges
The question
To ask the Secretary of State for Housing, Communities and Local Government, a) what assessment he has made of the effectiveness of the 18-month rule under Section 20B of the Landlord and Tenant Act 1985 in protecting leaseholders from being billed for historic service-charge liabilities issued outside the statutory deadline, and b) whether his Department has considered the potential merits of improving enforcement mechanisms where managing agents fail to comply with that requirement.
Answered by Matthew Pennycook
The government has not made a specific assessment of the effectiveness of Section 20B. Under Section 20B of the Landlord and Tenant Act 1985 a landlord must notify leaseholders of service charge costs being incurred or demanded within 18 months of when the costs were incurred. If landlords miss this deadline, leaseholders are not liable to pay these costs unless the landlord sends a written notice within this period about the costs and their future responsibility to contribute. Leaseholders who consider that they received such a demand outside the time limit and without notification should seek advice, for example from the Leasehold Advisory Service. Leaseholders may challenge unreasonable charges at the First-tier Tribunal.
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