Service charge and 18 month rule
When it comes to issuing service charge demands, landlords must stick to the letter of leases or risk recovering nothing at all – even if that results in tenants receiving an unwarranted windfall.
In the case of Skelton v DBS Homes (Kings Hill) Limited [2017], the Court of Appeal made that point in relieving a residential tenant of liability to pay service charges over a four-year period.
Under the terms of the relevant lease, service charge demands were required to be accompanied by estimates of projected expenditure over the next year. No such estimates were included for four years. That oversight was later corrected, but the tenant argued that was not liable to pay the charges due to the landlord’s failure to comply with the terms of the lease.
The tenant’s arguments did not persuade the First-tier or Upper Tribunals. However, in allowing his appeal, the Court cited Section 20B of the Landlord and Tenant Act 1985. That provision, often called the 18-month rule, requires that costs incurred by landlords more than 18 months prior to the service of demands for payment are not recoverable from tenants.
The Court found that the 18-month rule applies equally to demands for payment on account as to demands in respect of costs that have already been incurred. The purpose of the rule was to ensure that tenants receive proper demands for service charges within 18 months of the relevant costs being incurred.
That had not happened in the current case because the demands had not become valid until the estimates were also served on the tenant. If the outcome of the case resulted in the tenant receiving a windfall, that was a consequence of the landlord’s default.
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
What they are, how they work and why they are popular in many countries.
Plastic, recycling and its symbol
Student competition winning, M.C.Esher inspired Möbius strip design symbolising continuity within a finite entity.
Do you take the lead in a circular construction economy?
Help us develop and expand this wiki as a resource for academia and industry alike.
Warm Homes Plan Workforce Taskforce
Risks of undermining UK’s energy transition due to lack of electrotechnical industry representation, says ECA.
Cost Optimal Domestic Electrification CODE
Modelling retrofits only on costs that directly impact the consumer: upfront cost of equipment, energy costs and maintenance costs.
The Warm Homes Plan details released
What's new and what is not, with industry reactions.
Could AI and VR cause an increase the value of heritage?
The Orange book: 2026 Amendment 4 to BS 7671:2018
ECA welcomes IET and BSI content sign off.
How neural technologies could transform the design future
Enhancing legacy parametric engines, offering novel ways to explore solutions and generate geometry.
Key AI related terms to be aware of
With explanations from the UK government and other bodies.
From QS to further education teacher
Applying real world skills with the next generation.
A guide on how children can use LEGO to mirror real engineering processes.
Data infrastructure for next-generation materials science
Research Data Express to automate data processing and create AI-ready datasets for materials research.
Wired for the Future with ECA; powering skills and progress
ECA South Wales Business Day 2025, a day to remember.
AI for the conservation professional
A level of sophistication previously reserved for science fiction.
Biomass harvested in cycles of less than ten years.
An interview with the new CIAT President
Usman Yaqub BSc (Hons) PCIAT MFPWS.
Cost benefit model report of building safety regime in Wales
Proposed policy option costs for design and construction stage of the new building safety regime in Wales.
Do you receive our free biweekly newsletter?
If not you can sign up to receive it in your mailbox here.