Legal Costs Overshadow Tenant Wellbeing in Housing Disrepair Claims

Housing disrepair claims, designed to ensure landlords address property defects and compensate tenants, are increasingly criticised for prioritising legal costs over practical repairs. Des Taylor, a legal expert at Landlord Licensing & Defence, warns that the current system incentivises solicitors to focus on legal processes rather than resolving housing issues swiftly. He states, “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.”

Tenants often receive little benefit from drawn-out claims, with urgent repairs delayed because solicitors advise against allowing works that might weaken legal cases. Taylor explains that tenants may be instructed to report every minor issue to their solicitor rather than the managing agent, turning each communication into billable legal activity. This can leave tenants living with hazardous conditions such as damp and mould, “Not because of the landlord, because of the solicitor.”

Current Court Process Encourages Procedural Battles Over Repairs

Under the present framework, solicitors representing tenants are financially motivated to issue court proceedings quickly, as significant legal fees are recoverable only once a claim reaches the County Court. Although a ‘pre-action protocol’ exists to encourage early dialogue and repairs, in practice, proceedings are often launched over minor procedural missteps.

Taylor highlights a shift in cooperation once claims are issued: “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.” This adversarial approach can result in tenants receiving modest compensation while legal fees balloon, sometimes costing landlords tens of thousands of pounds.

Disproportionate Legal Fees and Compensation Highlight System Flaws

Taylor provides examples where tenants receive compensation of a few thousand pounds, but solicitors claim legal fees many times higher. “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.” This imbalance raises concerns about the fairness and efficiency of the current claims process.

Calls to Transfer Housing Disrepair Claims to First-tier Tribunal

Some courts have begun to challenge inflated legal costs and poor solicitor conduct, with wasted costs orders issued in certain cases. However, the overall system remains slow and inefficient, with straightforward cases waiting months for hearings. This delay prevents landlords from addressing disrepair promptly and leaves tenants in substandard conditions.

Taylor advocates for moving housing disrepair claims from the County Court to the First-tier Tribunal, describing the latter as a more suitable forum. “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. 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.”

Government Review and the Need for Reform

The government has launched an open call for evidence on housing disrepair claims to examine whether current fee structures unfairly prioritise legal costs over tenant compensation. Taylor stresses the importance of government action to realign incentives. “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.”

He concludes: “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.”

What This Means for Landlords

Landlords should be aware that the current legal framework for housing disrepair claims may lead to protracted disputes and significant legal costs, even when the actual compensation awarded to tenants is modest. Engaging proactively with tenants and addressing disrepair promptly can help avoid costly legal battles. The proposed shift to the First-tier Tribunal could offer a more balanced and efficient resolution process, reducing delays and limiting excessive legal fees.

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

Suggested internal link anchors

• housing disrepair claims
• tenant compensation
• County Court housing disputes
• First-tier Tribunal
• legal fees in housing claims
• landlord obligations
• property repairs
• pre-action protocol
• housing disrepair reform
• tenant wellbeing
• landlord-tenant disputes

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