New research carried out by SHAC shows that across all the cases of service charges challenged at the First Tier Property Tribunal (FTT), more than 63% of landlords were found to be overcharging for services. This figure rises to more than 66% for housing association landlords.

The overcharges in many of the cases were replicated across whole estates. However, the FTT can order refunds only to the tenants and residents who are party to the judgement. This means that landlords are generally getting away with largescale financial exploitation, generating unearned income from a captive audience.

Cases Reviewed

All judgements by the FTT in 2025 concerning levels of service charge were analysed: a total of 238 cases. They reveal an ongoing and shocking level of overcharging, in line with reports received by SHAC.

For each case that was heard, many, many more are settled out of court, with the landlord admitting the overcharging only after a Tribunal claim has been lodged. This suggests that landlords wait to see how far a tenant or resident will go before they address concerns.

Landlords also routinely threaten claimants that they will demand compensation to cover their high legal costs if the tenant or resident is not successful in proving overcharging, further attempting to deter them from pursuing justice.

Many more Tribunal cases would also undoubtedly have been lodged if service charge records had actually been provided when tenants and residents requested them. In practice, failure to disclose these records often prevents residents from pursuing claims, even though landlords have a legal duty to provide this information.

The research compared the outcome of cases according to whether the parties to the case had legal representation or advocacy. It found that tenants and residents had representation in just 20% of cases, compared to landlords or their managing agents who were represented in over 60% of cases.

Housing Associations Are Worst Offenders

Outcomes were not affected by whether the parties had representation across the population of cases as a whole. However, when the housing association cases were isolated, the outcomes changed dramatically. Tenants or residents who had representation (15% of the 33 housing association cases) were successful in arguing that overcharging had taken place in 80% of cases.

SHAC Secretary and Cofounder Suzanne Muna said: “Service charge abuse is both financially and psychologically devastating for those affected. The evidence we have collected is stark, and this report is critically important in providing hard evidence of the widespread financial hyper-exploitation of tenants and residents by landlords. The cases that ended up at Tribunal are just the tip of a mountain.

“This abuse has been going on under the noses of one housing minister after another for more than a decade. All have chosen to turn a blind eye. It is a massive disservice to tenants and residents who pay directly, and is also draining the Housing Benefit budget when it is used to pay for services which are non-existent. We urge the government to act now along the lines we recommend.”

The Report

The report sets out key findings, methodology, the relevant legislation, barriers and resistance to Justice, a full set of data tables, and seven recommendations to end service charge abuse.

The research was conducted as part of SHAC’s End Service Charge Abuse Campaign. SHAC has led the fight against service charge abuse and will continue to campaign until it end this financial exploitation. 

SHAC is a campaign group linking tenants, renters, shared owners, and leaseholders living in social and private housing. It campaigns to improve the conditions of homes and neighbourhoods, and to reduce the commercialisation of housing. More information on the End Service Charge Abuse campaign can be found at https://shaction.org/service-charges/.

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