Appointment of a manager: the section 24 route when RTM is not enough

Where a landlord or its agent is failing so badly that RTM is impractical or the building's condition can't wait, leaseholders can apply under section 24 of the Landlord and Tenant Act 1987 for the FTT to appoint an independent manager to take over management of the building.

Unlike RTM, this is fault-based. But it is powerful: the appointed manager derives authority directly from the tribunal order, not from the lease.

Grounds

Under s.24(2) LTA 1987 the tribunal may appoint a manager where:

• the landlord is in breach of obligations owed to the tenants under the lease;
• unreasonable service charges have been made or are likely; or
• there has been a breach of the RICS Service Charge Residential Management Code.

The tribunal must be satisfied that it is just and convenient to make the order.

The preliminary notice

Before applying you must serve a s.22 preliminary notice on the landlord and any other relevant party. It must specify the alleged breaches and give a reasonable period to remedy — usually 28–56 days for management defects, longer for structural issues.

Skipping or defective preliminary notices sink otherwise good applications.

Building the evidence

• Chronology of defects: leaks, disrepair, unresolved complaints.
• Communications log — every unanswered email is a bullet.
• Financial: unaudited accounts, missing reserve funds, disputed service charges upheld at prior tribunals.
• Independent surveyor's report on condition where relevant.
• A proposed manager: RICS-qualified, ideally ARMA/IRPM-registered, with a management plan and fee proposal.

The management order

Typically covers a defined period (2–5 years), sets out powers (repair, insurance, service charges, remedial works), fees, reporting requirements, and reserved matters. The order can also vary the lease under s.35–39 LTA 1987 in ancillary applications.

Costs

s.24 applications are within the ordinary no-costs regime with rule 13 exceptions. Landlord's costs of the s.24 hearing generally cannot be recovered from service charges by virtue of the order itself — this is not statutory (s.20C is separate) but tribunals routinely refuse recovery where the s.24 case is well-founded.

When to use s.24 rather than RTM

• Building has ≥25% commercial floor area (RTM ineligible).
• Council block (RTM largely blocked; s.24 available).
• Landlord fault is severe and time-critical.
• Insufficient participation for RTM.

Related

• [Right to Manage step-by-step guide](/guides/right-to-manage-rtm-step-by-step-guide-for-london-leaseholders)
• [Council leaseholder service charge disputes](/guides/council-leaseholder-service-charge-disputes-complete-guide)