Tenants who feel that they are being overcharged for services in connection with their properties are able to challenge the reasonableness of their charges. The First-tier Tribunal (FTT) recently reduced the amount a tenant was required to pay for insurance.
The tenant's lease allowed the landlord to impose charges for buildings insurance in respect of his property. The combined cost of insurance covering his and another property was £3,248.54 per annum. He contended that this was unreasonable. He had obtained two alternative quotes for £1,834.39 and £1,197.28.
The landlord did not engage with the proceedings, so the FTT did not have the benefit of considering any justification for the premiums paid.
The FTT concluded that a more reasonable amount would have been £1,500 per annum, or £750 for each property. The FTT determined that this was the amount the landlord should have charged the tenant for the 2022/23 and 2023/24 service charge years. The landlord was also ordered to pay the tenant's application fee of £100.
