Various Properties in Liverpool MAN/00BY/LDC/2025/0628

FIRST-TIER TRIBUNAL

PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case No MAN/00BY/LDC/2025/0628

Between

South Liverpool HomesApplicant

Various Long Residential Leaseholders/TenantRespondent

Before

Judge J Stringer

J O’Hare, MRICS

Date 19 December 2025

Property: Various Properties in Liverpool

Type of application: Landlord & Tenant Act 1985 – Section 20ZA – Dispensation of Consultation Requirements

DECISION

[1]Pursuant to section 20ZA Landlord and Tenant Act 1985, the requirement to consult with the Respondents in accordance with the consultation requirements contained in section 20 of the Landlord and Tenant Act 1985 and Schedule 1 of the Service Charges (Consultation Requirements) (England) Regulations 2003 (SI 2003/1987) in respect of the qualifying long term agreements for the supply of gas and electricity to the landlord communal area meter supplies of the Properties is dispensed with until 19th December 2028.

REASONS

[1]This application is made by South Liverpool Homes, Landlord of the Respondents’ Properties, for dispensation from the consultation requirements imposed by Section 20 of the Landlord and Tenant Act 1985 (‘the Act’).

[2]The only issue for the Tribunal to consider is whether or not it is reasonable to dispense with the consultation requirements.

[3]The Applicant in the application notice agreed to the appeal being considered on the papers without an oral hearing. There has been no response to the application from the Respondents. Having reviewed the written evidence and noted the Applicant’s consent, and the absence of any objection from the Respondents, the Tribunal concluded pursuant to Rule 31 of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013 that it is able to decide the matter without a hearing.

[4]In accordance with the ‘Practice Direction from the Senior President of Tribunals: Reasons for decisions’, this decision refers only to the main issues and evidence in dispute, and how those issues essential to the Tribunal’s conclusions have been resolved. Background to the application

[5]South Liverpool Homes have applied pursuant to section 20ZA of the Landlord and Tenant Act 1985 (LTA 1985), and by way of an application notice dated 4th April 2025, for dispensation of consultation requirements provided for by section 20 LTA 1985. The application is in respect of consultation relating to qualifying long-term agreement (QLTAs) for energy supplies to communal areas of the Property, and the service charges relating to these supplies. The communal area charges relate to matters such as lighting in shared areas, lifts, door entry systems, and communal heating.

[6]The Respondents to the application are set in Schedule 2 to this decision.

[7]A specimen tenancy agreement (in respect of the tenants) and a specimen shared ownership lease (in respect of leaseholders) have been submitted that sets out the parties’ respective obligations in respect of repairs and service charge liabilities.

[8]The Applicant seeks dispensation on the following basis – “South Liverpool Homes have entered into 2 - 3 year contracts for the supply of gas and electricity to our landlord communal area meter supplies. Whilst the start date of the new contracts are staggered dependant on when existing contracts come to an end, for some landlord supplies these new contracts started on 01/10/2024. Meters will be transferred onto new contracts during the course of the next 7/8months, with the last meter transferring onto a new contract on 14/05/2025.The new contracts entered into have end dates of either 30/09/2027 or 31/03/2028 for electricity supplies, with all gas contracts expiring on 31/12/2027… Given the volatility of the energy market and the increased prices being seen for gas and electricity, South Liverpool Homes have sought to mitigate the current price rises by entering into a longer-term contract, for the benefit of tenants and leaseholders. Dispensation allows us to act quickly and lock in the best possible deal before prices rise further, and ensures that as our current contracts come to an end, we move seamlessly in to new contracts avoiding the need for tenants and leaseholders to pay out of contract variable rates on their energy usage.” Issues

[9]The following issues were identified for determination by the Tribunal: a. Should the Tribunal permit the statutory consultation requirements under section 20 LTA 1985 in relation to works to be dispensed with in accordance with section 20ZA LTA 1985? The Law

[10]Extracts from sections 20 and 20ZA of the Act are reproduced in Schedule 1, below. Section 20ZA subsection (1) provides that the tribunal may make a determination to dispense with consultation requirements “if satisfied that it is reasonable to dispense with the requirements”.

[11]The Tribunal has had regard to the guidance on dispensation given by the Supreme Court in Daejan Investments Limited v Benson and Others

[2013] UKSC 14

(‘Daejan’), in particular, that in deciding pursuant to section 20ZA whether it is reasonable to dispense with consultation requirements, a Tribunal should consider whether any relevant prejudice would be suffered by the leaseholders.

[12]The Tribunal note that whilst the legal burden of proof rests throughout on the landlord, the factual burden of identifying some relevant prejudice that they would or might have suffered rested on the tenants, and that a Tribunal is permitted, subject to evidence, to grant dispensation on terms, including compensating tenants/leaseholders for any prejudice suffered by requiring a landlord to reduce the amount claimed as service charge, and including an order for costs. Evidence

[13]The material/evidence submitted by the Applicant is limited to the application for dispensation dated 4th April 2025, copy correspondence with the Respondents in relation to the contracts/dispensation application and the specimen tenancy agreements/leases. Those documents are contained in the Applicant’s 91-page electronic bundle.

[14]The Tribunal has carefully considered all the available written evidence. Relevant Evidence and the Tribunal’s Conclusions on the Issues

[15]None of the Respondents has submitted a response to the application. On the Applicant’s evidence, correspondence in relation to the application has been sent to each individual Respondent, and the application, together with other documents in relation to the application, including the Tribunal directions, have been made available on the Applicant’s website. There is no evidence to indicate that any Respondent objects to the application, nor is there any evidence before the Tribunal that indicates that any Respondent consider themselves to be prejudiced in any way by the absence of a section 20 consultation exercise.

[16]The Applicant’s evidence is that limited to that contained in the application (which is supported by a Statement of Truth). The Tribunal would ordinarily expect to have seen more extensive evidence in support of the application, for example, a witness statement of an identified officer of the Applicant, or of a person advising the Applicant on its energy contracts. There is also no evidence as to why this application post-dates the relevant contracts.

[17]However, on the basis of the (somewhat limited) evidence by way of the application and in the absence of any response from the Respondents objecting to the application, the Tribunal is satisfied that by reason of fluctuations in gas and electricity prices there is likely to be a benefit for tenants and leaseholders (lower prices and therefore service charge liabilities) in the Applicant being able to enter into longer-term energy supply contracts, and to be able to do so quickly.

[18]The Tribunal finds that there is no relevant prejudice to any of the Respondents as a consequence of the Applicant entering into the contracts or proposed contracts without first carrying out the section 20 consultation.

[19]The Tribunal further notes the evidence of the Applicant that “It is proposed that South Liverpool Homes would send letters to all tenants and leaseholders affected by the S20 dispensation process, providing details of the application: 1. Details of the consultation procedure is available on our website, including when S20 dispensation may be required. 2. A copy of the S20 application is available on our website. 3. Copies of any documents (e.g. hard copies or electronic broker quotes) can be provided on request. 4. Directions, when made available by the tribunal will be available on our website.”

[20]The Respondents have made no representation as to any condition the Tribunal might impose in granting dispensation, however, given the very limited evidence supporting the application, the Tribunal consider that the dispensation should be on condition that it is for a defined period (3 years), and that a further application is therefore required (potentially supported by more detailed evidence) on the expiry of that period.

[21]There is no evidence of any cost being incurred by the Respondents that should appropriately be met by the Applicant.

[22]In these circumstances, the Tribunal considers it reasonable to dispense with consultation requirements for a period of 3 years from the date of the decision, that is, until 19th December 2025.

[23]The Tribunal makes no findings, and expresses no view, as to whether any costs associated with the QLTAs for which dispensation has been granted are reasonable in amount, or whether the costs intended to be recovered by way of service charge are contractually payable under the tenancy agreements or are within the meaning of ‘relevant costs reasonably incurred’ in sections 19 and 27A of the Act. No such applications are currently before this Tribunal and the Tribunal’s decision does not include or imply any determination of such matters. J Stringer Tribunal Judge 19th December 2025 Schedule 1 Extracts from legislation Landlord and Tenant Act 1985 Section 20 (Subsections (1) and (2):)(1) Where this section applies to any qualifying works or qualifying long term agreement, the relevant contributions of tenants are limited in accordance with subsection (6) or (7) (or both) unless the consultation requirements have been either - (a) complied with in relation to the works or agreement, or (b) dispensed with in relation to the works or agreement by (or on appeal from) a tribunal.

(2) In this section 'relevant contribution', in relation to a tenant and any works or agreement, is the amount which he may be required under the terms of his lease to contribute (by the payment of service charges) to relevant costs incurred on carrying out the works under the agreement. Section 20ZA (Subsection (1)) (1) Where an application is made to a tribunal for a determination to dispense with all or any of the consultation requirements in relation to any qualifying works or qualifying long term agreement, the tribunal may make the determination if satisfied that it is reasonable to dispense with the requirements. Schedule 2 Schedule of Respondents - MAN/00BY/LDC/2025/0628 - South Liverpool Homes (various properties in Liverpool) Cobden Place, Woolton, L25 7UB Mrs J Murphy FLAT 1 Cobden Place Mrs M Griffiths FLAT 2 Cobden Place Mr J Stead FLAT 3 Cobden Place Mr A Hopwood FLAT 4 Cobden Place Mr R Jones FLAT 5 Cobden Place Mr D Murphy FLAT 6 Cobden Place Mrs B Williams FLAT 7 Cobden Place Mr S Murphy FLAT 8 Cobden Place Mr R Macauley FLAT 9 Cobden Place Mrs G Dewsbury FLAT 10 Cobden Place Mrs D Wright FLAT 11 Cobden Place Mr J Finn FLAT 12 Cobden Place Mr J Dobie FLAT 14 Cobden Place Mr S Goodwin FLAT 15 Cobden Place Ms D Breen FLAT 16 Cobden Place Mr S Rose FLAT 17 Cobden Place Mrs W Lynn FLAT 18 Cobden Place Mrs D Halligan FLAT 19 Cobden Place Mrs C Scoullar FLAT 20 Cobden Place Mrs M Guinness FLAT 21 Cobden Place Mrs C Maylor FLAT 22 Cobden Place Mrs D Mohan FLAT 23 Cobden Place Mr P Summers FLAT 24 Cobden Place Mr T Farrel FLAT 25 Cobden Place Mrs I Petch FLAT 26 Cobden Place Mrs J Billingsly FLAT 27 Cobden Place Miss M Field FLAT 28 Cobden Place Mrs B McNamara FLAT 29 Cobden Place Mr JJ Kirwan FLAT 30 Cobden Place Mrs V Ferguson FLAT 31 Cobden Place Mrs M Teevan & Mr R Teevan FLAT 32 Cobden Place Mr F Leyland FLAT 33 Cobden Place Mr T Mallon FLAT 34 Cobden Place Mrs V Price FLAT 35 Cobden Place Mr J Seddon FLAT 36 Cobden Place Mr T Hughes FLAT 37 Cobden Place Mr P Wilson FLAT 38 Cobden Place Ms J Allport FLAT 39 Cobden Place Mr A Jones FLAT 40 Cobden Place Miss C Backhouse FLAT 41 Cobden Place Mr P Jones FLAT 42 Cobden Place Ms E Stewart FLAT 43 Cobden Place Mr P Fry FLAT 44 Cobden Place Mrs K Chung FLAT 45 Cobden Place Mr D Crumpton FLAT 46 Cobden Place Mr N Long FLAT 47 Cobden Place Mr M Rickett FLAT 48 Cobden Place Mrs C Rice FLAT 50 Cobden Place Ms S Strevens FLAT 51 Cobden Place Mrs G Daly FLAT 52 Cobden Place Mr N Barrie FLAT 53 Cobden Place Miss C Mahoney FLAT 54 Cobden Place FLAT 55 Cobden Place Ms L Tait FLAT 56 Cobden Place Mrs L Martin FLAT 57 Cobden Place Mr D Barlow & Mrs V Barlow FLAT 58 Cobden Place Mrs P Fox FLAT 59 Cobden Place Servite Court, Millcroft Road, Woolton, L25 8TS Mr F Rowan FLAT 1 Servite Court FLAT 1A Servite Court Mrs H Clucas & Mr JP Clucas FLAT 2 Servite Court Mr A Jackson FLAT 3 Servite Court Mr JS Huxley FLAT 4 Servite Court Ms P Spencer FLAT 5 Servite Court Mr W Jenkins FLAT 6 Servite Court Mrs D Johnson FLAT 7 Servite Court FLAT 8 Servite Court Mr K Swanson FLAT 9 Servite Court Mr R Cooke FLAT 10 Servite Court Mrs E Betteley FLAT 11 Servite Court Mr A Newby FLAT 12 Servite Court Mrs T Dreves FLAT 13 Servite Court Mr P Owen FLAT 14 Servite Court Mrs C Carribine FLAT 15 Servite Court Mr J Gibbons FLAT 16 Servite Court Mrs J Wilson FLAT 17 Servite Court Mrs T Byrne FLAT 18 Servite Court Mr JF Martin FLAT 19 Servite Court Mr W Buchanan FLAT 20 Servite Court Mr A Price FLAT 21 Servite Court Mr J Foster FLAT 22 Servite Court Ms L Catterall FLAT 23 Servite Court Mrs J A Taylor & Mr J Taylor FLAT 24 Servite Court Mr D Ellis FLAT 25 Servite Court Mrs M Rannard FLAT 26 Servite Court Mr J Cochran FLAT 27 Servite Court Mr A Edwards FLAT 28 Servite Court Mr P Burke FLAT 29 Servite Court Mr JP Scallan FLAT 30 Servite Court Mr J Turner FLAT 31 Servite Court Mrs P Smythe FLAT 32 Servite Court Mr H Ireland FLAT 33 Servite Court Ms A Edwards FLAT 34 Servite Court Mr S Palombella FLAT 35 Servite Court Mr S Alger FLAT 36 Servite Court Mr M Canning FLAT 37 Servite Court Mrs J Ward FLAT 38 Servite Court Mrs M Horner FLAT 39 Servite Court Mrs P Brown FLAT 40 Servite Court Miss G Ashworth FLAT 41 Servite Court Mrs J Annesley FLAT 42 Servite Court Mr S Jeffrey FLAT 43 Servite Court Ms V Emerson FLAT 44 Servite Court Mrs G McCoy FLAT 45 Servite Court Mr G Heaps FLAT 46 Servite Court Mrs R Parkinson FLAT 47 Servite Court Mrs J Duke FLAT 48 Servite Court Miss B Jones FLAT 51 Servite Court Mrs R Berry FLAT 52 Servite Court Ms N Tetley & Mr D Tetley FLAT 53 Servite Court Mrs N Martin FLAT 54 Servite Court Miss E Young FLAT 55 Servite Court Mrs B Rotheram FLAT 56 Servite Court Ms J Scott FLAT 57 Servite Court Mr R Wootton FLAT 58 Servite Court Mr H Williams FLAT 59 Servite Court Mrs O Ossman FLAT 60 Servite Court Mrs M Windle FLAT 61 Servite Court Mr P McDermott FLAT 62 Servite Court Mr B Cain FLAT 63 Servite Court Mrs J Fowler FLAT 64 Servite Court FLAT 24A Servite Court Locke Street, Garston, L19 8EH Miss A Peterson FLAT 2 Locke Street Mr J Portman FLAT 3 Locke Street Mr P Brogan FLAT 4 Locke Street Mr W Jevons FLAT 5 Locke Street Mr P Smith FLAT 6 Locke Street Mrs D Fay FLAT 7 Locke Street Ms M Smith FLAT 8 Locke Street Mr H Alexander FLAT 9 Locke Street Miss T Noone FLAT 10 Locke Street Mrs L Skerry FLAT 11 Locke Street Ms P Weadock FLAT 12 Locke Street Mr A Gorman FLAT 14 Locke Street Ms T Lawler FLAT 15 Locke Street Mr JB Wahid FLAT 16 Locke Street Mr J Ponder FLAT 17 Locke Street Mrs A Bullock FLAT 18 Locke Street Mrs S Ogden & Mr J Ogden FLAT 19 Locke Street Mrs P Putterill & Mr A Putterill FLAT 20 Locke Street Ms E Dillon FLAT 21 Locke Street Miss J Williams & Mr A Williams FLAT 22 Locke Street Mr D Tate FLAT 23 Locke Street Mr D McLeod FLAT 24 Locke Street Mrs K Gorman & Mr S Gorman FLAT 25 Locke Street Mr M Dodd FLAT 26 Locke Street Mr M Hannon & Mrs A Hannon FLAT 27 Locke Street Mr G Black FLAT 28 Locke Street Cavalier Drive, Garston, L19 2RU Mrs E Heckle & Mr K Heckle FLAT 18 Cavalier Drive Mr M Stephens FLAT 19 Cavalier Drive Miss N S Pyke FLAT 20 Cavalier Drive Mr S Casey FLAT 21 Cavalier Drive Mr J Jackson FLAT 22 Cavalier Drive Mrs S Williams & Mr S Williams FLAT 23 Cavalier Drive Ms P Shannon FLAT 24 Cavalier Drive Mr P Fovargue FLAT 25 Cavalier Drive Miss K Miles FLAT 26 Cavalier Drive Miss J McLean FLAT 27 Cavalier Drive Mr D Johnstone FLAT 28 Cavalier Drive Ms S Bellis FLAT 29 Cavalier Drive 161 Booker Avenue, Allerton, L18 7HE 000Ms P Crawford Apartment 1 161 Booker Avenue Mr P Crutchley Apartment 2 161 Booker Avenue Mr J Wood Apartment 3 161 Booker Avenue Mrs J Kennedy Apartment 4 161 Booker Avenue Ms P Millen Apartment 5 161 Booker Avenue Miss M Meehan Apartment 7 161 Booker Avenue Ms G Shilton Apartment 8 161 Booker Avenue Ms I Walton Apartment 9 161 Booker Avenue Mr E Alleyne Johnson Apartment 10 161 Booker Avenue Mr T Currie Apartment 11 161 Booker Avenue Miss J Randles Apartment 12 161 Booker Avenue Miss E Conboy Apartment 14 161 Booker Avenue Mr P McKean Apartment 15 161 Booker Avenue Mr T Foley & Mrs F Foley Apartment 16 161 Booker Avenue Miss J Francis & Mr A Patterson Apartment 17 161 Booker Avenue 18 Livingston Drive, Aigburth, L17 4LR Mrs C Campbell Apartment 1 18 Livingston Drive Mrs S Cummings & T Cummings Apartment 2 18 Livingston Drive Mr C Rooth Apartment 3 18 Livingston Drive Ms N Tate Apartment 4 18 Livingston Drive Mrs K Sargeant Apartment 5 18 Livingston Drive Mrs R Rotherham Apartment 6 18 Livingston Drive Dr JA Smith Apartment 7 18 Livingston Drive Ms A Radford & J Radford Apartment 8 18 Livingston Drive Miss J Benmayor Apartment 9 18 Livingston Drive Mr L Beswick Apartment 10 18 Livingston Drive Mr M Hunter Apartment 11 18 Livingston Drive Miss L Edison Apartment 12 18 Livingston Drive Miss J Murray Apartment 14 18 Livingston Drive Miss CI Jolly Apartment 15 18 Livingston Drive Mrs M Whitham & N Whitman Apartment 16 18 Livingston Drive Mr J Jennings Apartment 17 18 Livingston Drive Ms J Cook Apartment 18 18 Livingston Drive Mr S Goldfinch & Miss R Tetlow Apartment 19 18 Livingston Drive Mrs E Rogers Apartment 20 18 Livingston Drive Mrs A Johnson Apartment 21 18 Livingston Drive Mr M Barlow Apartment 22 18 Livingston Drive Ms J Bayliss Apartment 23 18 Livingston Drive