We are obligated to consult with you regarding your service charge when we know it’s going to go over a certain amount.
Landlords must serve a Section 20 notice to leaseholders when planning on entering a contract longer than 12 months, and where the required contribution from leaseholders is over £100 for a service.
Energy prices have been rising significantly in recent years, and unfortunately, they are expected to keep going up. Since the energy used in communal areas isn’t covered by the domestic price cap set by Ofgem, we have to buy it through the commercial market, which can be more expensive.
To keep costs as low as possible, we have to make quick decisions when buying energy, as prices can change quickly. Normally, we would consult with residents on these types of decisions, which usually takes about three months. However, because energy prices fluctuate so much, we can’t follow this usual consultation process without risking higher costs.
We’ve asked the First-tier Tribunal Property Chamber (Residential Property) for permission to skip the typical consultation requirement (as outlined in Section 20 of the Landlord and Tenant Act 1985). This would allow us to act faster in purchasing energy at the best possible price for everyone.
Once we receive a decision from the tribunal, we will share the outcome with you here.