Housing disrepair claims fail tenants and landlords – legal expert

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Housing disrepair claims fail tenants and landlords – legal expert

Housing disrepair claims now risk doing more harm than good for tenants, a legal expert has warned.

Des Taylor, a legal expert at Landlord Licensing & Defence, says the current system has become driven by financial incentives for solicitors, often rewarding legal process over practical outcomes.

Mr Taylor is calling on the government to fix the system and move housing disrepair claims from the County court to the First-tier Tribunal.

Economics of legal costs matter more than wellbeing of the tenant

Housing disrepair claims are legal action taken by tenants against landlords who fail to fix property defects, providing tenants with a clear route to have genuine disrepair addressed and to receive compensation when landlords fail to meet their obligations.

However, Mr Taylor says the balance has now been lost, with financial incentives becoming more important than tenants’ wellbeing.

He said: “This was supposed to be about fixing homes and putting things right.

“Instead, it has become a system where the economics of legal costs frequently matter more than the condition of the property or the wellbeing of the tenant.”

The legal expert says tenants often gain little from this escalation and urgent repairs are frequently deliberately delayed.

Mr Taylor warns tenants are advised by their solicitors not to allow works to take place, on the basis that it could weaken the claim.

He explains: “In some cases tenants are told to report every minor issue back to the solicitor instead of the managing agent. Each email then becomes another line on a costs schedule. Meanwhile, the tenant has to continue living with the problem, which could be something as hazardous as damp and mould. Not because of the landlord, because of the solicitor.”

Dynamic shifts away from solving the problem

Mr Taylor explains under the current framework, claimant solicitors are financially encouraged to issue proceedings quickly because their ability to recover significant legal fees only crystallises once a disrepair claim reaches court.

There is a ‘pre-action protocol’ which is meant to promote early dialogue and repairs. However, in reality, proceedings are often launched at the slightest suggestion that a procedural step has not been followed precisely.

Mr Taylor says: “The moment a claim is issued, cooperation stops being rewarded. Everything becomes about generating documents, reports and procedural steps, all of which increase billable fees for the solicitor. That is when the whole dynamic shifts away from solving the problem.”

He warns warns that for claims falling between the small claims track and the fast track, the compensation received by tenants can vary considerably, while claimant solicitors may recover substantial legal fees even when the damages awarded are relatively modest.

Mr Taylor said: “That is how you end up with cases where a tenant receives a few thousand pounds while the legal bill runs into tens of thousands.

“We are seeing examples where a tenant is paid £4,000, a quarter of that is deducted plus VAT, and then a costs claim of more than £22,000 lands on the landlord’s desk. So, the tenant ended up with just £2,800 while the solicitor received £23,000. Such figures are no longer unusual.”

Move housing disrepair claims to First-tier Tribunal

However, Landlord Licensing & Defence says some courts have begun to push back, with instances of judicial criticism where solicitors were found to have inflated costs without advancing repairs.

There have also been cases where wasted costs orders were issued after conduct fell below expected professional standards.

Mr Taylor warns that tenant disrepair claims move slowly through an already strained court system, leaving straightforward cases waiting months for hearings, while landlords who wish to act cannot gain access and tenants remain in poor conditions.

He says more fundamental reform is needed, including moving housing disrepair claims into the First-tier Tribunal.

“The county court is a blunt and inefficient tool for this kind of dispute. It is formal, procedural, and adversarial. The only parties who reliably benefit from delay are those recovering fees,” he says.

“The tribunal looks at reality. It considers the condition of the property, the behaviour of both sides, and what needs to happen next. Costs are contained, and the emphasis is on getting repairs done.”

Landlords deserve a process that does not punish engagement

The government has launched an open call for evidence on housing disrepair claims, examining whether fee structures unfairly prioritise legal costs over tenant compensation.

Mr Taylor says the government must take action to fix the system.

He said: “There is a real concern that tenants are being funnelled into firms based on referral fees rather than quality of advice. That encourages volume and cost maximisation, not good housing outcomes.

“Tenants deserve safe homes and fast remedies. Landlords deserve a process that does not punish engagement or expose them to unpredictable costs.

“Until incentives are realigned, conflict, delay and spiralling fees will remain the norm.”

Landlords and developers can book a no-charge, 10-minute diagnostic call with an expert on housing disrepair, improvement notices, HMO and selective licencing, planning enforcement, Rent Repayment Orders or other compliance matters by clicking here or by calling 0208 088 8393.

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