Understanding legal costs in housing disrepair claims is essential for tenant representatives and for landlords, housing associations and councils managing litigation exposure.

Disrepair arises when a rental property is not properly maintained, breaching statutory duties and tenancy obligations and affecting health, safety or comfort.

The Landlord and Tenant Act 1985 and the Homes (Fitness for Human Habitation) Act 2018 set the basic statutory framework, and most tenancy agreements reinforce a landlord’s repair obligations. Common triggers for a complaint include damp and mould, structural defects, plumbing and electrical faults, heating failures, and pest infestations. Early inspection, clear photos and expert reports all strengthen a claimant’s position.

More recently, the introduction of Awaab’s Law is likely to lead to a high level of housing disrepair claims as it introduces mandatory timeframes for social landlords to investigate and fix hazards such as damp and mould. It also strengthens tenants’ abilities to make a claim against negligent landlords. 

Costs Strategy and the Pre-Action Protocol

Although the Pre-Action Protocol encourages cooperation, its cost implications are significant. Early compliance reduces the risk of allegations of unreasonable conduct, indemnity costs, and other adverse orders in the County Court. A comprehensive letter of claim, supported by proportionate expert evidence, helps ensure accurate valuation and avoids unnecessary cost disputes.

Failure to engage properly at this stage may result in serious cost penalties for the losing party, especially where delays or non-compliance have prolonged the dispute.

Valuations, Track Allocation and Cost Exposure in Housing Disrepair Claims

Track allocation directly determines the recovery of costs in housing disrepair claims. For defendants and claimant’s solicitors, ensuring accurate valuations is critical:

• Claims valued under £1,000 for repairs are often allocated to the small claims track, where recoverable legal costs are heavily restricted.
• Claims exceeding the threshold typically fall onto the fast track or multi-track, enabling recovery of a wider range of costs, including advocacy fees, experts, and the court fee.

Case Law: Mathews and Jalili v Bury Council

In Mathews v Nottingham City Council, competing repair valuations determined whether the case would enter the small claims regime. The court preferred the realistic, evidence-based valuation, confirming that credibility is crucial when determining track.

Similarly, Jalili v Bury Council has become increasingly cited in housing disrepair claims. The case emphasises that valuations must reflect genuine market rates, not internal repair schedules designed to reduce perceived value. The court reinforced that reliance on unrealistic valuations can lead to incorrect track allocation, impacting the costs claimed and recoverability.

These cases confirm:

• Expert evidence is key to cost recovery.
• Inflated or artificially low valuations undermine credibility.
• Track allocation must reflect the true scale of work, not tactical objectives.

Early, proportionate valuations help avoid disputes, reduce litigation risk, and support accurate cost budgeting.

Challenging Costs in Housing Disrepair Claims and Detailed Assessment

Where a claimant succeeds, their solicitors submit a bill of costs setting out time spent, hourly rates and disbursements. Paying parties, who are often represented by specialist costs lawyers, frequently challenge:

• unnecessary or duplicated work
• excessive time entries
• unrealistic hourly rates
• disproportionate expert fees
• unreasonable or unproven disbursements

If negotiation does not resolve the dispute, the court may list a detailed assessment hearing. Here, each item is scrutinised for reasonableness, proportionality and relevance. The resulting Costs Order details what the losing party must pay.

Recoverable items may include counsel fees, surveyor reports, and the court fee, but all must be properly evidenced.

Fixed Recoverable Costs in Housing Disrepair and Future Reform

There is ongoing discussion about introducing fixed recoverable costs (FRC) to a wider range of disrepair work. Much like reforms seen in personal injury claims, FRC could increase predictability but may also limit what lawyers can recover, potentially affecting access to justice.

For now, most housing disrepair cases fall outside FRC. Parties must therefore continue preparing for:

• proportionality arguments
• detailed assessment
• negotiations around hourly rates
• fact-specific cost outcomes

Staying alert to upcoming FRC reforms is essential for both sides.

Funding Arrangements and Cost Consequences

Funding dramatically affects cost recovery:

• Conditional Fee Agreements (CFAs): Success fees are not recoverable from defendants, influencing deductions made from damages.
• Private funding: Permits full hourly rate recovery if proportionate.
• Legal aid: Has its own rules. Some costs may be recoverable, but statutory charge implications and funding limits require early specialist advice.

Understanding the funding method helps parties anticipate exposure and manage expectations around legal costs.

Frequently Asked Questions About Costs in Disrepair Cases

1. What determines whether a case is allocated to the small claims track?

Credible repair valuations are decisive when it comes to allocation to track allocation. Claims under £1,000 for repairs are usually allocated to the small claims track, restricting cost recovery.

2. Can I challenge a bill of costs?

Yes. You may serve points of dispute. If unresolved, the court may list a detailed assessment hearing.

3. Do I need a surveyor?

Often, yes. Their valuation affects damages, track allocation and cost recovery. Poor valuations can significantly weaken your cost position.

4. How does legal aid affect costs?

Legal aid cases follow separate rules. Some costs may be recoverable, but deductions and restrictions apply.

5. Can non-compliance with the Pre-Action Protocol affect costs?

Yes. Serious breaches can result in adverse cost orders or, in extreme cases, strike-out.

Why Choose Greener Costs?

Greener Costs specialises in costs for housing disrepair claims. Our skilled costs draftsmen, costs lawyers, and disrepair specialists deliver:

• accurate bills of costs
• strategic points of dispute
• Part 36 and settlement guidance
• representation at costs hearings
• expertise in valuation, proportionality and cost-benefit analysis

Our streamlined digital approach ensures fast turnaround, transparency and proportionate outcomes

For specialist advice on legal costs in disrepair matters, whether preparing a bill, challenging one, or seeking guidance on cost exposure, Greener Costs can assist.

Call: 01204 263047

Email: info@greenercosts.co.uk

We will assess your position, outline likely cost outcomes and guide you through negotiation, budgeting and court procedures.