Court of appeal overturns Philips v Francis decision on Major Works

October 31, 2014

by News on the Block Editorial Team

The court of appeal has overturned the decision of the High Court in Philips v Francis. For the last two years there has been considerable anxiety amongst landlords, property managers and leaseholders regarding the interpretation of the meaning of 'qualifying works'. Today's ruling provides much needed clarity to the position and will be welcomed by all those involved in major works across the industry.

Douglas Rhodes, property litigation senior associate at law firm Trowers & Hamlins, commented:

"It is a major relief that the Court of Appeal has ruled that the question of what a single set of qualifying works comprises should be determined in a common sense way, taking into account all relevant circumstances. Although not an exhaustive list, certain relevant factors were identified, including (1) physically where the items of work are to be carried out; (2) whether they are the subject of the same contract; (3) whether they are to be done at more or less the same time or different times; and (4) whether the items of work are different in character from, or have no connection with, each other.

The High Court ruling in 2012 left landlords and residential property managers facing the possibility of having to go through lengthy consultation processes with residents for nearly all repairs and maintenance work on their properties. This would have been administratively unworkable and could have forced delays to necessary but routine maintenance work, which would have caused issues for both landlords and tenants.

Ultimately today's judgment restores common sense to the approach as to what constitutes "qualifying works" to which the £250 consultation limit applies."

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.”

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