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ARTICLE · 16 FEBRUARY 2011

Hardship Is No Defence For Landlords

Bircham Dyson Bell LLP
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John Stephenson, senior partner and head of residential property team at law firm Bircham Dyson Bell LLP is warning landlords that failure to comply to the letter with the The Landlord and Tenant Act 1985 could leave them ‘hard up' when it comes to the upkeep and repair of buildings leased to tenants.

United KingdomReal Estate and Construction
John Stephenson
John Stephenson

John Stephenson, senior partner and head of residential property team at law firm Bircham Dyson Bell LLP is warning landlords that failure to comply to the letter with the The Landlord and Tenant Act 1985 could leave them 'hard up' when it comes to the upkeep and repair of buildings leased to tenants.

The warning comes off the back of the ruling on Daejan Investments Ltd Vs Benson where the statutory consultation requirements were not observed in their entirety by the landlord (Daejan Investments) and the liability of the five residential tenants was restricted to £250 each - much less than the £50,000 each that may have been due had the consultation been carried out.

The Court of Appeal concluded that while the financial consequences for the landlord of being unable to recover the service charge fully were significant, this wasn't a relevant factor when deciding whether or not to waive the consultation requirements of the Act.

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