Housing Disrepair Claims Costs: An Overview

 

Housing disrepair claims

Housing disrepair claims arise when private and social housing tenants are unhappy with their landlord, housing association, or local council regarding the upkeep and maintenance of a property.

In severe cases, housing disrepair claims can also accompany a personal injury claim surrounding the same issue if the disrepair issue has caused a disease or injury to the tenant living there.

The Civil Procedure Rules sets out a he Pre-Action Protocol for Housing Conditions Claims (England). This provides the rules which must be followed for conducting housing disrepair claims. 

Typically, the process initiates when a Letter of Claim is sent by the claimant to the defending party or their legal representative.

A qualified property surveyor will then inspect the property to provide an expert opinion on the disrepair. The claimant’s expert surveyor will also provide a schedule of works detailing the costs of the repairs.

Negotiations may take place where the parties can come to a settlement, or a case may instead progress to County Court or Magistrates Court where a judge will decide the outcome of the claim.

Housing disrepair cases are typically funded through conditional fee agreements (no win, no fee) or Legal Aid in some circumstances.

Housing disrepair claims costs

When a tenant wins a housing disrepair claim, the landlord is typically responsible for covering not only the cost of the repairs but also the tenant’s legal fees. 

In housing disrepair claims, a claimant’s solicitors will be able to recover their legal costs from the defending party if they are successful in their claim against them.

However, housing disrepair claims costs are notoriously difficult to deal with due to the complex nature of these types of claims.

This is because the claim can involve a significant amount of evidence, several experts on the issue at hand, as well as causation challenges.

Claims that have a value of less than £1,000 will be allocated to the small claims track. If the compensation award being sought is set to exceed £1,000 or the repairs to amend the damage will be valued over £1,000 then the case will typically be allocated to the fast track or multi track.

Valuing repairs in housing disrepair claims

A recent case Jalili v Bury Council 2021 in which the claimant was seeking specific performance and damages for housing disrepair set a (non-binding) precedent in how the value of repairs is approached by the court.

Both the claimant and the defendant instructed surveyors to assess the disrepair. The claimant’s surveyor valued the repairs at £3,915, whereas the defendant’s surveyor valued it at £740. The difference in these valuations was due to the fact that the claimant’s surveyor valued the repairs on the ‘open market’ rate, whereas the defendant, being a local authority, valued the repairs on an ‘in-house’ rate, with priority access to a team of professionals to carry out the repairs.

The claimant argued that the claim should have been allocated to the fast track on their valuation of works and that they should be able to recover their costs on a standard basis.

However, as the agreed works were ultimately carried out under the defendant’s valuation, as agreed by both parties, the case was allocated to the small track.

What costs can be recovered?

Guidance on the recoverable heads of legal costs in housing disrepair claims and other inter-partes cases is provided in CPR 47 PD 5.12.

Costs for any work done on the file in relation to the claim can be recovered at an hourly rate. Disbursements, such as expert fees, Counsel fees, and Court fees, are all recoverable and should be listed on your Bill of Costs.

Recovering housing disrepair claims costs

To recover housing disrepair case costs, the detailed assessment procedure will need to be followed to recover costs from the losing party.

This will involve drafting a bill of costs and negotiating costs with the other side using points of dispute and replies, If an agreement as to costs cannot be reached, a detailed assessment hearing may be required.

The introduction of fixed costs in housing disrepair

The introduction of fixed recoverable costs (FRC) in housing disrepair claims is aimed at capping the legal fees that can be recovered by the winning party, providing greater predictability and fairness in litigation costs. This reform is part of a broader initiative to make the civil justice system more efficient and accessible.

The primary objective of introducing fixed costs is to provide clarity and certainty regarding the potential legal costs involved in housing disrepair claims. This is expected to prevent disproportionate legal fees and ensure that neither landlords nor tenants are deterred from seeking justice due to the fear of high costs.

However, it is worth noting that the introduction of fixed recoverable costs for housing disrepair claims has been delayed for two years. Housing disrepair claims frequently involve vulnerable individuals or families seeking justice for inadequate living conditions. The delay highlights the necessity for a more thorough assessment of how fixed costs might affect access to justice in these situations.

Why choose Greener Costs?

Housing disrepair claims provide an important legal avenue for tenants to enforce their right to live in safe, habitable conditions. However, disputes over the costs of repairs and legal fees can add significant complexity to these cases.

While reforms such as fixed recoverable costs aim to simplify the process, it remains to be seen how they will impact access to justice, particularly for tenants facing severe disrepair in their homes.

Understanding the legal process and potential challenges surrounding housing disrepair costs is essential for both tenants and landlords seeking fair resolution.

Our team of expert Costs Draftsmen and Costs Lawyers can be relied upon to maximise your recovery of legal costs in housing disrepair costs claims.

With twenty years of experience in the costs law industry, our team have the knowledge and expertise to prepare Bills of Costs, Points of Dispute and Costs Budgets.

As a digital legal costs service, we can ensure swift results and fast communications. If our clients would like regular updates on the status of their cases, we can provide this. This is possible through our management system, which consistently tracks the progress of our cases. 

To find out more and to receive advice from our experts, please contact us on 01204 263047 or email us at info@greenercosts.co.uk.

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