Public sector landlords can use framework agreements: Upper Tribunal

Councils and other public sector landlords can use framework agreements to appoint building contractors, the Upper Tribunal has ruled.

The use of such agreements had been in doubt since 2007 as a result of London Area Procurement Network v All Right to Buy lessees.

In that case the Leasehold Valuation Tribunal held that public sector landlords cannot use framework agreements and recover service charge contributions from leaseholders, without first obtaining statutory dispensation from the consultation requirements that apply.

This was on the basis that framework agreements were not qualifying long-term agreements for the purposes of s. 20 of the Landlord and Tenant Act 1985.

The Upper Tribunal (Lands Chamber) has now ruled that framework agreements can be entered into by, or on behalf of, a public authority and that they are QLTAs to which section 20 applies.

The Royal Borough of Kensington and Chelsea brought the case in respect of four framework agreements it is proposing will be entered into by Kensington & Chelsea TMO (KCTMO) with construction companies in order to deliver up to £130m of repairs maintenance and improvement works to the borough’s housing stock.

Cllr Rock Feilding-Mellen, Deputy Leader of the Royal Borough of Kensington and Chelsea and Cabinet Member for Housing and Property, said: “This is a very welcome decision not just for the Royal Borough of Kensington and Chelsea but for all public sector landlords.

“Framework agreements can offer significant advantages for landlords, tenants and leaseholders, so this judgement brings some useful clarity to a highly complex area of law.”

Robert Black, KCTMO’s chief executive, said: “We’re very pleased that our work with the Council on this case has finally resulted in a decision that gives clarity and structure. We now look forward to carrying out our comprehensive improvement programme, working collaboratively with the contractors and our customers.”

The council noted that landlords will be able to comply with the Service Charges (Consultation Requirements) (England) Regulations 2003 before entering into the framework agreements by following the requirements of Schedule 2.

When qualifying works are then ordered from one or other of the framework contractors, the correct schedule to follow is Schedule 3. 


Ranjit Bhose QC of Cornerstone Barristers appeared on behalf of the Royal Borough of Kensington and Chelsea.