[2024] UKUT 59 (LC)

Part 2 of the Landlord and Tenant Act 1987 (the 1987 Act) gives the FTT power to appoint a manager of premises comprising the whole or part of a building containing two or more flats. The power is to “appoint a manager to carry out in relation to any premises to which this Part applies – (a) such functions in connection with the management of the premises, or (b) such functions of a receiver, or both, as the tribunal thinks fit.” Management includes repair, maintenance, improvement or insurance of premises (section 24(11)).

In K Group Holdings Inc v Chuan-Hui [2021] 1 WLR 5981, at [38],Henderson LJ described the problem which the Act was intended to address as “the failure of the landlord of a multi-tenanted block of flats to perform its obligations.”

The FTT may only exercise the power to appoint a manager in the circumstances described in section 24(2). There will usually have been some form of mismanagement by the landlord or other person responsible for the management of the premises and the FTT must be satisfied that in all the circumstances it is just and convenient to appoint a manager. Under section 24(2)(a) a relevant person will be in breach of an obligation relating to the management of the premises owed to the tenant under his tenancy; under section 24(2)(ab) unreasonable service charges will have been levied, while under section 24(2)(ac) there will have been a failure to comply with a relevant code of management practice. There is also a more general power under section 24(2)(b), not explicitly based on fault, where other circumstances exist which make it just and convenient for a manager to be appointed.

Three broad points are relevant to this appeal. First, that the FTT is given power to appoint a manager to carry out “such functions in connection with the management of the premises” as it thinks fit (section 24(1)(a)). Secondly, it may only make an order where it is satisfied that one of the conditions in section 24(2) is made out, almost all of which depend on the landlord or other person responsible for management of the building having failed to perform to a satisfactory standard. Thirdly, each of those conditions additionally requires the FTT to be satisfied that it is just and convenient to make the order.

The Tribunal has emphasised the importance of a manager adhering to the highest professional standards, as is to be expected of an officer of the tribunal. Before any manager is appointed the FTT will wish to satisfy itself that they have the necessary experience, competence and integrity to be entrusted with the role (Sadeh v Mirhan [2015] UKUT 428 (LC), at [51]; Orchard v Mooney [2023] UKUT 78 (LC), at [19]).