Interim payments in housing disrepair claims

In some housing disrepair cases, a tenant can apply to the court for an interim payment, a sum paid by the landlord before the case is finally resolved. Here is what an interim payment is, when it may be available, and how the process works.

What is an interim payment?

An interim payment is a payment made by the defendant (the landlord) to the claimant (the tenant) during the course of court proceedings, before the final judgment or settlement. It is a payment on account of the damages that the court will eventually order if the claimant wins.

Interim payments are governed by the Civil Procedure Rules (Part 25) and are only available once court proceedings have been issued, they are not available before a claim is formally commenced.

When can an interim payment be ordered?

The court can order an interim payment in a disrepair claim if it is satisfied that:

1. The defendant has admitted liability, or
2. The claimant would obtain judgment for a substantial amount of money if the case went to trial, or
3. The defendant has been found liable in another related claim

The court must also be satisfied that the interim payment would not exceed the amount the landlord will ultimately be ordered to pay.

Interim payments are not granted automatically, the tenant must apply for one and demonstrate that the case is strong enough to justify a payment at this stage.

Why would a tenant need an interim payment?

In disrepair cases, the full claim may take many months or even over a year to resolve. During that time:

• The tenant may have suffered significant financial loss, for example, higher energy bills to compensate for poor heating, or costs of replacing belongings damaged by damp
• The tenant may have needed to pay for alternative accommodation while repairs are carried out
• The tenant may be facing significant inconvenience and hardship

An interim payment can help meet those costs without waiting for the final resolution of the claim.

How do I apply for an interim payment?

An application for an interim payment is made to the court by filing an application notice. The application must be supported by evidence explaining:

• The strength of the claim and the basis for liability
• The nature and amount of the loss already suffered
• Why the payment is needed before the end of the case

The landlord has the right to respond to the application, and the court will then decide whether to grant it and, if so, in what amount.

This is a procedural step that usually requires the involvement of a solicitor. Most disrepair claimants who want an interim payment will need legal representation.

Can a landlord be required to carry out repairs immediately?

An interim payment is a financial measure. If what is needed is an urgent order requiring the landlord to carry out repairs, the appropriate remedy is an injunction rather than an interim payment. In some cases, both are sought at the same time, an order requiring the works to be done and an interim payment of compensation already owed.

What happens to the interim payment at the end of the case?

The interim payment is taken into account when the final amount of damages is assessed. If the tenant recovers more than the interim payment, the landlord pays the difference. If the tenant recovers less (which is possible if the case is partly successful), the difference may need to be repaid.

When should I contact Support for Tenants?

We handle housing disrepair claims. If you want to understand the remedies available to you, including interim payments and injunctions, we can advise on your options.

Call us on 0800 030 4669. No upfront cost. You only pay if you win, and the fee comes out of the compensation, not your pocket. If you don't win, you pay nothing.

Sources

• Pre-Action Protocol for Housing Conditions Claims, England (justice.gov.uk)
• Landlord and Tenant Act 1985, Section 11 (legislation.gov.uk)
• Homes (Fitness for Human Habitation) Act 2018 (legislation.gov.uk)

Related articles

• Disrepair claim settlement, what to expect