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Disrepair and the recession

01 July 2009

The recession is having more than one impact on the housing market: increasing debt and rising unemployment mean more residents are pursuing disrepair claims against registered providers (RPs) and local authorities (LAs).

Section 11 of the Landlord and Tenant Act 1985 imposes a duty on landlords to keep in repair:

To be in breach of this contractual duty a landlord must have been notified of the disrepair and failed to remedy the disrepair within a reasonable timescale.

Section 4 of the Defective Premises Act 1972 imposes an additional duty on landlords to take such care as is reasonable in all the circumstances to see that persons are reasonably safe from personal injury or from damage to their property.

Despite the current climate, the pressure remains for RPs and LAs that are expected to continue to meet their repairing obligations.

The Department for Communities and Local Government (CLG) expects 95% of all social housing to meet the Decent Homes Standard by 2010, as it is a key element to a thriving sustainable community.  It is also considered important for the health and well being of those living in the communities.

The CLG says:
"Poor housing helps an area get a bad reputation. That makes it an unpopular place to live, which in turn may lead to the breakdown of communities."

This is a challenging time for all, in particular for RPs that cannot compromise on the quality of their housing stock because of the current climate.

After all, everyone should have a decent home, as sustainable development is imperative to the wellbeing of those living in social housing. The Decent Homes programme has already made a significant difference to residents.

Through the recession more people will become eligible for public funding as unemployment increases and available cash decreases.

The demand for social housing is likely to increase due to rising unemployment and repossession of homes.Residents struggling to pay rent and manage their finances as the recession bites could find themselves vulnerable to law firms in relation to claims for disrepair.

The promise of compensation from a landlord who has failed to complete a reported repair within a reasonable time will seem like an easy way to make money for some residents, and landlords could find themselves paying residents' legal fees, which can be astronomical.

Residents may be told by inscrutable law firms that compensation for disrepair is usually paid even where repairs are considered to be minor, and RPs will pay significant legal costs in comparison to the compensation paid to the tenant. RPs will struggle to meet increasing demand in relation to repairs with limited and often constrained resources. 

This is a difficult time for RP, which are seeing their budgets squeezed.

They must remain vigilant to bogus claims as reduced legal budgets force them to deal with disrepair claims themselves with little or no legal assistance, and they risk finding themselves on the back foot trying to establish genuine claims for disrepair.

To minimise claims we recommend: 

And we always recommend a post-work inspection be undertaken to confirm repairs have been completed to a satisfactory standard.

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Raj Chahal

Legal Executive
T: 03700 86 4129
I: +44 (0)121 625 4129
E: rajinder.chahal@shoosmiths.co.uk