How housing disrepair settlements work

Most housing disrepair claims are settled before they reach a court hearing. A settlement means the landlord and tenant reach an agreement, usually on repairs and compensation, without a judge deciding the outcome. Below, we walk through how the settlement process works and what to expect.

What is a settlement?

A settlement is an agreement between you and your landlord (or their representatives) to resolve the claim. The landlord typically agrees to:

• Carry out the required repairs within an agreed timeframe
• Pay you compensation for the period of the disrepair and its impact on you
• Sometimes, pay towards your legal costs

In return, you agree not to pursue the matter further in court.

A settlement can happen at any stage of the claim, before proceedings are issued, during the pre-action process, after proceedings are issued but before a hearing, or even on the day of the hearing itself.

When are most cases settled?

Many claims settle after the landlord receives a formal Letter of Claim from your solicitor. This letter sets out:

• What the defects are
• How long they have existed
• What the landlord knew about them and when
• What repairs are required
• What compensation is being sought

The landlord then has a set time (usually 20 working days under the pre-action protocol) to respond. If they accept liability or make a reasonable offer at this stage, a settlement can be reached quickly.

Cases that do not settle at the pre-action stage often settle after court proceedings are issued, when the cost of defending the claim becomes clearer to the landlord.

How does a settlement negotiation work?

Your solicitor will negotiate on your behalf. They will exchange written offers and counter-offers with the landlord's legal team. You should be kept informed of all offers made and received, and the decision to accept or reject an offer is yours, your solicitor will advise you, but you make the final call.

A landlord's first offer is often lower than what can ultimately be achieved. Your solicitor will advise you on whether an offer is reasonable based on the facts of your case.

What does a settlement cover?

A disrepair settlement typically includes:

General damages, compensation for the effect of the disrepair on your enjoyment of the property. The court uses a percentage of your annual rent to calculate this, applied over the period of the disrepair. A severe or lengthy disrepair may attract a higher percentage.

Special damages, compensation for specific financial losses caused by the disrepair, such as:

• Damaged belongings (furniture, clothing, electronics)
• Increased heating costs caused by poor insulation or a broken boiler
• Medical expenses directly linked to the disrepair

Undertakings, a commitment by the landlord to carry out specific repairs by a given date. If the landlord fails to carry out the agreed works after settlement, you can return to court to enforce this.

Legal costs, in most settled cases, the landlord pays a contribution toward your legal costs, though the exact amount depends on the terms agreed.

Is the settlement binding?

Yes. Once a settlement is agreed and documented in writing, it is binding on both parties. If the landlord fails to carry out repairs agreed as part of the settlement, or refuses to pay the agreed compensation, you can apply to the court to enforce the agreement.

Make sure any settlement is put in writing and reviewed by your solicitor before you sign.

Can I change my mind after agreeing a settlement?

Generally, no. Once you have agreed and signed a settlement, it is very difficult to reopen the matter. This is why it is important to take your time, seek your solicitor's advice, and not accept a first offer without considering whether it fairly reflects the impact the disrepair has had on you.

When should I contact Support for Tenants?

We handle housing disrepair claims on a no-win no-fee basis. If your home has disrepair that your landlord has failed to fix, we can advise you on making a claim and guide you through the settlement process.

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)