Social landlords need to be aware that where they have charged leaseholders service charges for the costs of the remediation of 'relevant defects' under the Building Safety Act 2022 prior to 28 June 2022, some of these contributions may now be recovered by leaseholders in the First-tier Tribunal (Property Chamber) (FTT). This could apply to defects in relation to works that were carried out up to 30 years prior to that date.

Landlords, therefore, need to assess their 'relevant buildings' - essentially those self-contained buildings in England that contain at least two dwellings and are at least 11 metres high or have 5 storeys - on a case-by-case basis. This will need to include looking into the circumstances in which they may be liable for the costs of the remediation of relevant defects as the landlord or developer, such as in the recently decided FTT decision in Batish and other leaseholders v Inspired Sutton Limited and others (LON/00BF/HYI/2022/0002) which we think is the first FTT decision looking at remediation orders.

While that application was ultimately not opposed by the landlord and developer and the FTT ordered Inspired Sutton Limited to pay remediation contribution orders in the total sum of almost £195,000, contested hearings in other applications that are due to be heard later this year are expected to help to develop the interpretation and application of the 'just and equitable' test that the FTT must apply when deciding whether to make a remediation contribution order.

We have been helping lots of clients navigate the changes to service charges that have been made through the Building Safety Act 2022. If you would like advice or assistance about this or any other aspect of the Building Safety Act 2022 relating to service charges as it applies to your organisation, please do get in touch.