Beware of ‘no win no fee’ claims for housing disrepair

But the reality is, even if claims are successful, tenants are often left with a just small fraction of money paid in damages, and in some cases instead face huge legal bills, and the stress of going to court for nothing. 

In fact, one Southampton tenant who is now facing huge debt and immense stress after losing a disrepair claim, is encouraging other tenants to always read the small print and be wary of signing legal contracts that don’t always mean ‘no win no fee’.

The tenant was approached last year by a firm of solicitors in Manchester who said they would investigate defects at their property and promised huge sums of compensation if the claim was successful. After the tenant signed a contract, the solicitors appointed a surveyor to carry out a joint inspection with a member of our staff.

However, there was no evidence to back up most of the defects claimed and so we disputed the accusations as unfounded. Despite being under the impression it was a no win no fee case, the tenant then received a bill of £1650 from the solicitors for the cost of the inspection. They are disputing the charge which they say they cannot afford, which is causing a lot of financial strain, unwanted stress and upset.

Unfortunately, this isn’t a lone case. Every year our legal team handle many live disrepair claims which turn out to be unsubstantiated – leaving vulnerable tenants out of pocket and pursued for money by lawyers who had promised to represent them. And the money we spend on defending these claims could be put to much better use on investments to your homes and neighbourhoods instead.

If you are contacted by someone who claims to represent a legal firm promising you large sums of compensation, stop and think. If it sounds too good to be true, it probably is. Make sure you read the small print before signing any legal contract including ‘no win no fee’ contracts. Some agreements have clauses in them that state all the lawyers’ costs must be paid in full even if you decide not to pursue the claim at a later stage.

If you do have issues with repairs or defects in your property you can report repairs online 24/7 or contact your Local Housing Office. Simply tell us what needs repairing rather than launching a legal claim.