Section 20 - Why it matters, why it should be followed, and what to do when it isn’t.

introduction

Section 20 of the Landlord and Tenant Act 1985 is a UK law that requires housing providers (such as landlords, local authorities, and housing associations) to consult with their tenants before carrying out certain types of works or entering into long-term agreements. The purpose of this law is to ensure that tenants are informed about and have a say in major works and associated costs that affect their homes.

The consultation requirements of Section 20 apply to works that will cost an individual leaseholder (or tenant) more than £250, or more than £100 per year for any given period of the agreement. The works covered by this law can include repairs, maintenance, improvements, and other types of work that could potentially have a significant impact on the value of the property or the tenants' quality of life.

Housing providers must follow a specific consultation process, which includes providing a written notice to all affected tenants that outlines the proposed works or agreements, the estimated costs, and the reason for the works or agreements. Tenants are then given the opportunity to submit written comments or objections within a specific timeframe (usually 30 days). The housing provider must take these comments into account and respond to them before proceeding with the works or agreements.

Failure to comply with the consultation requirements of Section 20 can result in the housing provider being unable to recover some or all of the costs associated with the works or agreements from tenants. This can be a significant financial burden, especially for large-scale projects.

Section 20 provides important protections for tenants by ensuring that they are informed about and have a say in major works or agreements that affect their homes. By following the consultation process outlined in this law, housing providers can help to build trust and improve relationships with their tenants, which can lead to better outcomes for everyone involved.

Why it matters

Section 20 ensures that tenants have a say in major works or agreements that affect their homes. By providing tenants with the opportunity to comment on proposals and voice any objections, Section 20 helps to ensure that the interests of tenants are taken into account before decisions are made.

Section 20 promotes transparency and accountability on the part of housing providers. By requiring housing providers to provide written notice and estimated costs to tenants, this law ensures that tenants are fully informed about the works or agreements being proposed and the associated costs. This helps to prevent any surprises or unexpected expenses for tenants.

Section 20 can help to prevent disputes between housing providers and tenants. By following the consultation process outlined in this law, housing providers can address any concerns or objections raised by tenants before proceeding with the works or agreements. This can help to build trust and improve relationships between housing providers and tenants.

Failure to comply with the consultation requirements of Section 20 can have serious financial consequences for housing providers. If a housing provider does not follow the consultation process or does not provide sufficient notice to tenants, they may be unable to recover some or all of the costs associated with the works or agreements. This can be a significant financial burden for housing providers, especially for large-scale projects.

Why it should be followed?

There are specific steps that a landlord or housing provider must follow to ensure compliance with the Section 20 guidelines.

Notice of Intention: The landlord must issue a written "Notice of Intention" to the tenants, outlining the proposed works or long-term agreements that may exceed the threshold amount of £250 per leaseholder, or £100 per year per leaseholder, depending on the type of work or agreement. This notice should include a general description of the proposed works or agreement, the reasons for them, and an estimated cost of the works.

Consultation Period: The tenants must be given at least 30 days to provide their comments and observations regarding the proposed works or agreement. The landlord should also provide an estimated timeframe for the works, and the method for which they will be consulted.

Summary of Observations: After the consultation period ends, the landlord must summarise the tenants' comments and observations. This summary should be made available to all the tenants and include the landlord's responses to the tenants' concerns.

Competitive Quotations: If the proposed works are maintenance, repair, or improvement works, and the landlord intends to spend more than £250 per leaseholder, they must seek at least two competitive quotations from contractors for the proposed works.

Reasonableness of Cost: If the landlord intends to enter into a long-term agreement (such as for the provision of services), they must obtain evidence that the cost of the agreement is reasonable. The landlord should also consider the terms of the agreement and whether they are reasonable.

Notification of Outcome: The landlord must notify the tenants of the outcome of the consultation process, and whether the proposed works or agreement will be carried out. The landlord should also provide details of any changes to the scope of the works or agreement that may have been made in response to tenants' comments.

Recovery of Costs: If the landlord has not followed the consultation process correctly, they may not be able to recover all or part of the costs associated with the works or agreement.

And if they don’t?

If a landlord or housing provider fails to follow the consultation process outlined in Section 20, they may be unable to recover some or all of the costs associated with the works or agreements. This means that the landlord or housing provider will have to bear the costs themselves.

Failure to comply with the consultation requirements of Section 20 may also result in legal action being taken against the landlord or housing provider. Tenants have the right to challenge the landlord's compliance with Section 20 in the First-Tier Tribunal (Property Chamber), which has the power to make a range of orders, including the reduction of the costs payable by the tenants, and even the cancellation of the landlord's proposed works or agreement.

Furthermore, non-compliance with the Section 20 requirements can damage the relationship between landlords and tenants, which can make future dealings more difficult. It is therefore essential for landlords and housing providers to take the Section 20 consultation process seriously and to follow the guidelines outlined in the law to the letter.

What happens when they don’t?

There have been several cases where landlords or housing providers have failed to follow the Section 20 consultation process correctly, resulting in legal action being taken against them. Here are a few examples:

The case of Regent Management Ltd vs Daejan Investments Ltd: In this case, the landlord failed to provide tenants with a Notice of Intention before carrying out major works on a property. The tenants challenged the landlord's compliance with Section 20 in the First-Tier Tribunal (Property Chamber) and the Upper Tribunal (Lands Chamber). The Upper Tribunal found that the landlord had breached the consultation requirements of Section 20 and reduced the costs payable by the tenants.

The case of Oshodi v Camden LBC: In this case, the landlord failed to provide tenants with an adequate Notice of Intention before entering into a long-term agreement for the provision of heating and hot water. The tenants challenged the landlord's compliance with Section 20 in the First-Tier Tribunal (Property Chamber). The Tribunal found that the landlord had breached the consultation requirements of Section 20 and reduced the costs payable by the tenants.

The case of Francis v Phillips: In this case, the landlord carried out major works on a property without following the consultation process outlined in Section 20. The tenants challenged the landlord's compliance with Section 20 in the First-Tier Tribunal (Property Chamber) and the Upper Tribunal (Lands Chamber). The Upper Tribunal found that the landlord had breached the consultation requirements of Section 20 and reduced the costs payable by the tenants.

In each of these cases, the failure to follow the consultation process correctly resulted in the tenants being able to challenge the landlord's compliance with Section 20 and reduce the costs payable by the tenants. In some cases, the tenants were even able to cancel the proposed works or agreement. These cases highlight the importance of following the consultation process outlined in Section 20 and the potential legal and financial consequences of non-compliance.

What can tenants do if Section 20 is followed correctly?

Contact the landlord or housing provider: The first step is to raise the issue with the landlord or housing provider directly. Tenants should express their concerns and provide evidence to support their claim that the consultation process has not been followed correctly. The landlord or housing provider may be willing to rectify the situation to avoid legal action being taken against them.

Seek legal advice: If the landlord or housing provider does not address the issue, tenants can seek legal advice from a solicitor or a Citizens Advice Bureau. They can provide guidance on how to proceed and whether there is a case for legal action.

Make a complaint: Tenants can make a formal complaint to the landlord or housing provider, outlining their concerns and providing evidence to support their claim. The landlord or housing provider should have a complaints procedure in place, which tenants can follow.

Lodge a challenge with the First-Tier Tribunal (Property Chamber): If the landlord or housing provider has failed to follow the Section 20 consultation process correctly, tenants have the right to challenge the landlord's compliance with Section 20 in the First-Tier Tribunal (Property Chamber). The tribunal can make a range of orders, including the reduction of the costs payable by the tenants, and even the cancellation of the landlord's proposed works or agreement.

It is important for tenants to act promptly if they believe that the Section 20 guidelines have not been followed correctly. The time limits for challenging a landlord's compliance with Section 20 are strict, and failure to act within these time limits may result in the tenant losing their right to challenge the landlord's actions.

In conclusion

Challenging your landlord's compliance with Section 20 can be a complex process, but it is important to take action if you believe that your rights have been infringed. Making a formal complaint, seeking advice from a leasehold advisory service, and making an application to the First-Tier Tribunal (Property Chamber) are all steps you can take to challenge your landlord's compliance with the law. Remember to seek legal advice and understand your rights to ensure you make informed decisions and take appropriate action.