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Law firms representing social landlords are hiring extra staff to deal with surging disrepair claims.
One firm, Trowers & Hamlins, has more than tripled its housing litigation team to deal with the increase, while another is seeing 10 to 15 claims come in every day.
Inside Housing previously revealed that councils were seeing an exponential rise in disrepair claims from residents each year.
Of the councils that provided data for every year between 2017-18 and 2020-21, 91% saw an increase in costs, while 93% saw an increase in cases.
The trend is understood to be across the board and includes housing associations.
Lawyers said the increase is down to more cases of tenants living in disrepair, cuts to legal aid, and claims management companies moving over from personal injury claims after fixed recoverable costs were introduced.
Trowers & Hamlins, which represents social landlords, has increased the size of its housing team by 175% since January 2021 to deal with the number of cases coming in.
Managing associate Dorota Pawlowski said that prior to disrepair claims surging, the firm’s caseload was about 20% disrepair, but this has now grown to 80% of all work.
“The vast majority of my and my colleagues’ caseload is taken up with disrepair claims… to the extent that we have taken on more staff to deal with it – that’s how much we’ve got,” she explained.
Clarke Willmott has increased its housing litigation team by 20% in response to increased demand.
Lindsay Felstead, partner and head of housing management at the firm, said: “There’s an increase in litigation generally, but noticeably an increase in disrepair.
“And in order to ensure that we’re able to deal with it, we’ve certainly grown the team.”
Ms Felstead, who also jointly leads Clarke Willmott’s social housing sector team, said that a lot of clients are “getting hammered on claims”.
“Quite a lot of organisations try to deal with them in-house because that keeps costs down, but they just can’t cope with the volume that is coming in, hence needing to send them out externally to firms like ourselves,” she said.
She added: “It’s a really difficult area – for those claims that are genuine, then obviously that’s very difficult for those tenants.
“But for the ones that are not, it is really difficult because landlords only have finite resources.”
Baljit Basra, partner and lead on disrepair claims at Anthony Collins Solicitors, said the firm gets about 10 to 15 disrepair claims a day.
“We’ve got quite a large team and I would say at least half, if not more, are just dealing with disrepair claims because they are so prevalent,” she said.
The housing team is also expanding. “We’re expanding because of the increase in work full stop, which also includes the disrepair,” Ms Basra explained.
It emerged in December that Anexo Group, a firm that specialises in credit hire and legal services for motorists, had formed a new team to deal with tenant disrepair claims.
At the time it said the housing disrepair team was engaged in almost 1,600 cases and that it expected the figure to rise “substantially” during 2022.
Alan Sellers, executive chair of Anexo, said that he believed the firm’s housing disrepair casebook will “become a significant contributor to group revenues”.
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