Your landlord has offered compensation: should you accept it?

You may have complained about disrepair, or sent a letter before action. Your landlord might then offer you money to settle the matter. Before you say yes, take time to understand a few things. What is the offer for? Is it fair? And what do you give up if you take it?

Why landlords make offers

Sometimes landlords offer money without being asked. This happens more with large housing associations and councils. Other times they offer after you make a formal complaint or send a solicitor's letter. Here are the common reasons:

• To settle a complaint under their own complaints process
• To answer a letter before action and stay out of court
• To make an offer through a solicitor once you have started a claim

An offer at any stage is a sign the landlord knows something went wrong. But it does not mean the amount is fair.

What should fair compensation include?

A fair disrepair settlement usually covers these things:

• General damages: money for living in a home that was below the standard you should have had. This is usually worked out as a percentage of your rent for the time the disrepair affected you.
• Special damages: money for losses you have proved. For example, damaged belongings, higher energy bills, or money you spent trying to fix the problem yourself.
• Personal injury damages: if the disrepair caused or made worse a physical health problem, you can add this to your claim.
• Distress and inconvenience: a separate amount, mainly where the disrepair caused you a lot of stress or affected your daily life.

A low offer may only cover one or two of these things. Or it may put too low a value on the general damages percentage.

What does accepting mean?

If you accept a settlement, you will usually be asked to sign some words. These words end the claim and free the landlord from any more blame. This means:

• You cannot bring another claim for the same period of disrepair
• If the problem comes back, you could only claim for the new period from when it starts again. This is if the landlord agrees there is a problem again.
• You cannot argue later that the offer was too low. Once you accept, it is fixed.

So you should not accept an offer in a hurry, or without understanding what it covers.

Factors that affect whether an offer is reasonable

Here are some questions to ask:

• Does the offer cover the whole time the disrepair lasted, or only part of it?
• Is the general damages percentage realistic? Courts often award between 25% and 50% of rent per week for serious disrepair.
• Does it cover special damages (your real losses)?
• Has a health impact been recognised and given a value?
• Is the problem actually fixed? Or will you take the money while still living with the disrepair?

It is rarely wise to accept a first offer. At least check whether it matches what you would likely get in court first.

What if the offer is made without prejudice?

Many offers are marked "without prejudice". This means the offer cannot be used as evidence in court if you turn it down and go to a hearing. It does not mean the offer is secret. And it does not stop you talking about it with a solicitor. You can say no and carry on with your claim as normal.

When should I contact Support for Tenants?

Has your landlord made you an offer? Are you unsure whether to accept it? Call us on 0800 030 4669. We can tell you whether the offer looks fair. We can also tell you whether you would likely get more through a formal claim.

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

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

Related articles

• Letter before action, what it is and when to send it