Sleaford House Tenants Association v Poplar Harca

For recognition as a recognised tenants’ association, a qualifying tenant is not limited to a long leaseholder. The question is whether, under the relevant lease or tenancy agreement, the tenant may be required to contribute to the same costs by a service charge. Corporate long lessees cannot be excluded from the calculation. The application must be assessed by reference to the association, premises and membership before the First-tier Tribunal when it made its decision. A deficient explanation will not justify setting aside a substantively correct decision where the reasoning is apparent from the material before the tribunal and remittal would be disproportionate.

The appellant sought a certificate under section 29 of the Landlord and Tenant Act 1985 for an association representing Sleaford House and Gayton House. The First-tier Tribunal refused the application because the association represented fewer than 50% of the qualifying tenants, relying on regulation 4 of the Tenants’ Associations (Regulations Relating to Recognition and Provision of Information) (England) Regulations 2018.

On appeal, the appellant sought recognition for Sleaford House alone and relied on a lower figure for qualifying tenants. The central issues were the premises covered by the original application, the number and status of qualifying tenants, and whether the FTT’s brief reasoning required its decision to be set aside.

1. The appeal was dismissed. The FTT had correctly refused the certificate because the application before it concerned both Sleaford House and Gayton House, the association had 22 members, and the evidence indicated approximately 97 long-leasehold flats across the two blocks. The statutory threshold in regulation 4 was therefore not met.
2. Under sections 29 and 29A of the Landlord and Tenant Act 1985, qualifying-tenant status depends on the contractual obligation to contribute to the same costs by a service charge. The legislation does not define qualifying tenants as long leaseholders. Assured tenants may therefore qualify if their tenancy agreements impose the relevant obligation.
3. The appellant’s figure of 39 qualifying tenants was unsustainable because it excluded corporate long lessees without justification. The relevant assessment was the position when the FTT decided the application. The later proposed change to recognition for Sleaford House alone, and the later assertion of 28 members, could not establish an error in the FTT’s decision.
4. The FTT’s reasoning was not clear on the face of its refusal letter. Nevertheless, the basis of its decision was apparent from the material and correspondence before it. Since the substantive conclusion was correct, it would have been disproportionate to set the decision aside solely for want of fuller explanation.

• First-tier Tribunal (Property Chamber): application for a certificate of recognition refused on 29 November 2024 under regulation 4 of the Tenants’ Associations (Regulations Relating to Recognition and Provision of Information) (England) Regulations 2018.
• Upper Tribunal (Lands Chamber): appeal dismissed; the FTT’s decision was upheld.