Everything you need to know about Dilapidation Claims

This article was last updated 0 months ago and may not represent current law.

Dilapidation claims can be a complex and often misunderstood aspect of property law.

Whether you are a tenant or a landlord, understanding the basics of dilapidation claims is crucial to protect your interests. In this blog post, we will dive into the essentials of dilapidation claims, including what they are, how they are assessed, the legal obligations involved, and steps you can take to navigate the process successfully.

What are dilapidations claims?

Tenants generally have a few types of liabilities in leases:

• repairing covenants
• decorating covenants
• covenants to comply with statutes or other regulations
• specific condition on the exit of Tenancy
• reinstatement of alterations made by the tenant

The obligations are usually contained in the lease but sometimes can be found in other documents such as a licence for alterations.

What remedies does a landlord have for a tenant's breach of the repairing covenant?

Damages are limited by Section 18(1) of the Landlord and Tenant Act 1927. It provides that damages claimed by a landlord are:

1. limited to the diminution in the value of the landlord's interest - that is, the reduction in the value of the property as a result of the works required, if any.
2. not recoverable where the property is to be pulled down or substantial structural alterations are intended or there is a significant change of use intended.

Diminution in Value requires a surveyor/valuer to give an opinion. It involves comparing the value of the premises in the state of repair required by the lease and the value of the premises in their actual state. In some instances, there may be no difference, in which case the landlord’s claim could be limited to zero.

Assessing dilapidations

This process requires careful examination of both the interior and exterior elements, including structural issues, fixtures, fittings, and general maintenance. A Schedule of Dilapidations is prepared, detailing the repairs needed and estimating the associated costs. It is crucial to involve a qualified surveyor or professional to ensure an accurate assessment and avoid potential disputes.

Tenant's Repairing Obligations

Tenants need to understand their repairing responsibilities throughout the lease term and before its expiration. Regular property inspections, maintenance records, and prompt attention to repair issues can help mitigate potential dilapidation claims. Additionally, understanding any specific conditions or limitations within the lease agreement is essential to avoid unnecessary disputes.

Navigating the Dilapidation Claims Process

There is an agreed Dilapidations Protocol which needs to be followed before any dilapidations claim can go to court. The protocol (in brief) looks like this:

1. The Landlord sends a Schedule of Dilapidations. There is a Scott schedule format which covers a variety of key points and should specify work done.
2. The Landlord sends a Quantified Demand - this sets out the monetary sums claimed and is usually substantiated with invoices if done or estimates if not done.
3. The Tenant sends the Tenant's Response - using the Landlord's Scott schedule, sufficient detail should be provided to understand the tenant's position. The works should set out the costs which are agreed upon or an alternative cost.
4. Negotiations then take place. If the matter remains unresolved, then:
5. The Landlord sends a Quantification of Loss - a report providing the formal diminution in value and the claims being made. The tenant can get their own diminution in value report.
6. Stocktake and further negotiations if possible, and if not then:
7. Court proceedings may be required, but parties should consider alternative dispute resolution such as mediation.

Dilapidation claims can be complex and demanding, requiring a deep understanding of property law and careful attention to detail.

You can navigate the process more effectively by familiarising yourself with the basics of dilapidation claims, understanding your responsibilities, and seeking professional advice when needed. Proactive maintenance, thorough documentation, and open communication can help mitigate potential disputes and ensure a smoother resolution.

I don’t act on dilapidations disputes myself. Several of my colleagues at Nexa Law do, for landlords and for tenants. Typically, a solicitor gets involved once surveyors have tried to resolve matters, but they can also be involved in instructing surveyors, whether for the Schedule of Dilapidations or the Diminution in Value report. My colleagues act for you and quote their own fee, and there’s more on my dilapidations page and about my Nexa colleagues.

Next Steps

Written by Steven Mather, a business solicitor acting on company sales and purchases. This is general information about the law, not legal advice on your situation. Law correct as at 7 October 2026.