Public authority service charge rules: LTA 1985 s. 26
LTA 1985 s. 26 exempts public authority tenancies from sections 18 to 25. For long tenancies, sections 18 to 24 apply, but section 25 criminal offences do not.
Sections 18 to 25 (limitation on service charges and requests for information about costs) do not apply to a service charge payable by a tenant of— a local authority, a National Park authority , or a new town corporation, . . . . . . unless the tenancy is a long tenancy, in which case sections 18 to 24 apply but section 25 (offence of failure to comply) does not. The following are long tenancies for the purposes of subsection (1), subject to subsection (3)— a tenancy granted for a term certain exceeding 21 years, whether or not it is (or may become) terminable before the end of that term by notice given by the tenant or by re-entry or forfeiture; a tenancy for a term fixed by law under a grant with a covenant or obligation for perpetual renewal, other than a tenancy by sub-demise from one which is not a long tenancy; any tenancy granted in pursuance of Part V of the Housing Act 1985 (the right to buy) , including any tenancy granted in pursuance of that Part as it had effect by virtue of section 17 of the Housing Act 1996 (the right to acquire). A tenancy granted so as to become terminable by notice after a death is not a long tenancy for the purposes of subsection (1), unless— it is granted by a housing association which at the time of the grant is a private registered provider of social housing or a registered social landlord , it is granted at a premium calculated by reference to a percentage of the value of the dwelling-house or the cost of providing it, and at the time it is granted it complies with the requirements of the regulations then in force under section 140(4)(b) of the Housing Act 1980 or paragraph 4(2)(b) of Schedule 4A to the Leasehold Reform Act 1967 (conditions for exclusion of shared ownership leases from Part I of Leasehold Reform Act 1967) or, in the case of a tenancy granted before any such regulations were brought into force, with the first such regulations to be in force.
Text in force at .
Source: legislation.gov.uk — The National Archives (legislation.gov.uk), reproduced under licence Open Government Licence v3.0.
What it actually says
Section 26 creates an exception to the rules on service charges and accounting obligations found in sections 18 to 25. Standard short-term tenants of a local authority, a National Park authority, or a new town corporation cannot use those statutory protections to limit service charges or request financial summaries.
However, if the tenant holds a long tenancy granted by one of these public authorities, sections 18 to 24 do apply. Long tenancies include grants for a term certain exceeding 21 years, tenancies under perpetual renewal grants, and tenancies granted under Right to Buy under Part V of the Housing Act 1985 or section 17 of the Housing Act 1996.
Even for long tenancies granted by public authorities, section 25 does not apply. This means that if a public authority landlord fails to comply with service charge requests under section 21, 22, or 23, it cannot be prosecuted for a criminal offence.
When it applies
- A council tenant on a weekly secure tenancy requesting formal accounts under section 21 for block maintenance fees.
- A leaseholder who bought a flat from a local authority under the Right to Buy scheme on a term exceeding 21 years challenging a service charge under sections 18 to 24.
- A long leaseholder of a National Park authority property attempting to report the landlord under section 25 for failing to permit inspection of accounts under section 22.
What this section does not say
- Tenancies granted by private landlords or commercial companies, which are fully subject to sections 18 to 25.
- Disputes regarding registered rents not entered as variable, which are governed by section 27.
- General First-tier Tribunal jurisdiction over variable service charges, which is set out in section 27A.
Related sections
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This page reproduces the text of LTA 1985 s. 26 in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in England and Wales.