Court of appeal overturns Philips v Francis decision on Major Works 

Lauren Fraser, Solicitor at Speechly Bircham, commented:

“Today’s Court of Appeal judgment means that landlords and residential management companies can finally breathe a sigh of relief regarding their duties to consult leaseholders before undertaking building and maintenance works.

“The decision overturned an original High Court judgment, which ruled that “qualifying works” under the 1985 Landlord and Tenant Act included all works on a property during the course of a service charge period (generally a year), no matter how minor. The Court of Appeal felt that this could lead to a state of perpetual consultation, causing delays in carrying out works and leading to additional costs for tenants and that the correct approach was to look at each set of works on an individual basis. The Court has also made clear that in cases where consultation is not required, tenants have additional protection under the Act, allowing them to challenge the costs of any works which are not reasonably incurred or of a reasonable standard.

“This decision should be welcomed because it has provided a common-sense structure within which landlords will be able to approach works ranging from routine maintenance and repair to major projects with a degree of certainty, whilst tenants can still challenge hefty maintenance costs if they feel they are unjustified.”