Social Housing Speed Read: Consultation Launched into Disrepair “Claims Farming”
22nd August, 2025
Many social housing providers will now be aware of the recently published regulations designed to implement Awaab's Law (The Hazards in Social Housing (Prescribed Requirements) (England) Regulations 2025).
These regulations, which come into force on 27 October 2025, will require Registered Providers (RPs) to address all emergency hazards and damp and mould hazards that present a significant risk of harm to occupants, within fixed timeframes.
The announcement of the new regulations has added to the already growing fears in the sector that this is likely to prompt a significant increase in disrepair claims brought against RPs. It is largely against this backdrop that the Minister for Housing and Planning and the Minister for Courts and Legal Services announced in June that there will be a “Call for Evidence” later this year into “unscrupulous claims farming activity” by claimant law firms.
Amongst other things, the Call for Evidence said: “To ensure that the system of redress remains fair, that vulnerable tenants are not exploited and that both tenants and landlords are not unfairly targeted by unscrupulous claims farming activity – the Minister for Housing and Planning and the Minister for Courts and Legal Services are today also announcing their intention to launch a Call for Evidence this year. Through this we will gather evidence on Claims Management Company referrals to solicitors on a no win no fee basis to seek views on current practices and consider how to reduce unscrupulous ’claims farming’ activity in housing disrepair cases.”
“Claims farming” refers to the practice of third parties, such as Claims Management Companies, soliciting individuals with potential compensation claims, and then referring those claims to claimant law firms in return for a fee. RPs have reported that their customers have been targeted by Claims Management Companies using aggressive marketing tactics, or even engaging in unsolicited door knocking or cold calling.
In addition to overwhelming landlords with disrepair claims, concerns have also been raised in respect of the financial cost to the claimant. This is because claimants will often sign “no win no fee” agreements with their solicitors, which mean that they will not be required to pay their solicitor’s fees if they lose the claim. If they win the claim, they will usually have to pay a “success fee” to their solicitors, mainly by a percentage of damages recovered.
These success fees, in addition to the typically low value nature of the claims mean that many claimants will recover very little in terms of damages after winning a disrepair claim. Furthermore, there can still be circumstances where claimants may end up having to pay money even if they lose the claim – for example, their landlord’s legal costs.
It is not known how the practice of disrepair claims farming will be handled following the Call for Evidence. However, it is speculated that the payment of referral fees to claims farmers could be banned, as was previously done in respect of personal injury claims in 2013. It is also hoped that the Call for Evidence will tackle other unscrupulous practices of claimant law firms in disrepair claims, such as delaying access to claimants’ properties by RPs and their contractors to carry out inspections and repairs.
If you would like assistance with a disrepair claim, or you would like to understand more about how these changes may affect your organisation, please contact our expert Social Housing lawyers.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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