The fixed costs regime across the majority of civil cases, after several delays, is due to be implemented in October 2023.
However, with little fanfare, the Ministry of Justice (“MOJ”) has confirmed that in October 2023 fixed recoverable costs will not include housing disrepair cases. Furthermore, the MOJ confirmed that the implementation of fixed costs for housing disrepair claims will be delayed for two years!
The extended delay will come as a bitter disappointment to Registered Providers. It is often the case that when landlords agree to pay tenants compensation, the legal costs claimed by their representation are outrageously high. In the vast majority of claims such costs far exceed the cost of repairs and damages combined. The extravagant legal costs claimed has a direct impact on the services that Registered Providers hope to provide to their customers and would be better served reinvested into the communities that they serve.
It was hoped that the introduction of fixed recoverable costs would assist in ensuring that claims did not become costs driven.
A fixed recoverable costs regime would provide landlords with greater certainty regarding the legal costs they could incur if they are presented with a legitimate claim. It was also anticipated that fixed costs would assist in the reduction of spurious claims presented to landlords and a depletion of claim farmers targeting vulnerable tenants.
There will be a general election before any scheduled extension of the fixed costs regime for housing disrepair cases. It remains to be seen whether there will be a renewed appetite in government to extend the fixed costs regime to disrepair cases in two years’ time or if the can will be kicked further down the road. Watch this space!
In the meantime, advice to Registered Providers is to continue to:
- ensure you investigate and deal with any reports of disrepair in a timely manner,
- make sure any necessary repairs are completed to the required standard in a reasonable period of time,
- engage with tenants, and
- make sure your records are sufficiently detailed.
If you have any concerns about how the delay in implementing fixed recoverable costs will impact your organisation, please contact a member of our Housing & Regeneration Team.
