The Service Charge That Didn’t Stick: Tower Hamlets v Leaseholders

In this Newsflash episode, Lizzie Collin sits down with Richard Snape, Head of Legal Training at Davitt Jones Bould to discuss a recent Court of Appeal decision concerning London Borough of Tower Hamlets v Various Leaseholders. 

The case arose from an attempt by London Borough of Tower Hamlets to recover the cost of major structural works through service charges. The Court of Appeal rejected the council’s arguments, holding that the leases did not permit those costs to be passed on, reinforcing important protections for leaseholders, particularly under right-to-buy leases.

Richard explains the complex background behind the dispute, involving why The First-tier Tribunal (FTT) and Upper Tribunal found the leases did not allow these charges., and why the Court of Appeal dismissed the Council's appeal.
 
Richard and Lizzie explore:

• Why landlords cannot assume historic or structural defects can be recovered via service charges
• The broader context of ongoing debate aiming to make leasehold fairer
• The contractual terms of the leases
• How sections 11–16 of the Landlord and Tenant Act 1985 shaped the court’s approach 
• Lessons for landlords and tenants.

Other cases mentioned: 

London Borough of Tower Hamlets v Various Leaseholders [2025]

Quick v Taff Ely Borough Council [1985] 

Training & Free Webinars for Property Professionals:

Would you like to keep up to date with the latest in real estate law? Davitt Jones Bould offers legal training tailored to your organisation’s needs, delivered in person across the UK or remotely. We also run free monthly webinars through for surveyors, solicitors, and property professionals across sectors. To sign up or learn more, visit our events page here or email djb.events@djblaw.co.uk for information and booking. 

This podcast is for informational purposes only and is not intended to provide legal or professional advice. No liability is accepted by Davitt Jones Bould for any reliance placed on its content.