Loading Guild Resources
Loading Guild Resources
Loading Guild Resources
Housing minister Matthew Pennycook has launched a call for evidence to establish whether solicitors and claims managers help or hinder tenants with complaints about disrepair to the homes they rent.
He wants to find out if housing disrepair is a real issue for tenants, how many claims are made at county courts and if the settlement process works for them.
The government also fears vulnerable tenants are exploited by claims managers charging disproportionate fees, and may ban referral fees paid to claim managers for passing on cases to lawyers.
The minister said: "In housing disrepair and other types of cases, organisations such as claims management companies sometimes seek out people who might be able to make a legal claim so they can pass those claims on to law firms and earn a referral fee.
"Claims management can play a valuable role in connecting tenants with legal remedies. However, we are aware that there may be cases where unscrupulous activity is resulting in vulnerable tenants being exploited.
"We want to gather evidence to understand more about the role and impact of claims management activity in redress for housing disrepair issues. We will use this evidence to determine whether government action is necessary."
The call for evidence claims 21 per cent - one in five properties - of private rented homes do not meet decency standards.
This call focuses on cases where tenants consider seeking redress through the county court by bringing a claim against their landlord for housing disrepair, and the role of claims management activity.
The Solicitors Regulation Authority recently published a thematic review and discussion paper on high-volume consumer claims, including housing disrepair. The review raised concerns that some of those operating in the sector may not be acting in their clients' best interests and may ignore the relevant rules and regulations.
Some claim managers and solicitors are blamed for encouraging claims when it may not be in a tenant's best interest, failing to warn tenants of risks involved, and offering counterproductive advice - for example, encouraging a tenant not to let landlords in to carry out inspections or fix issues.
Claims managers offering 'no win, no fee' deals are also accused of not warning tenants they may be liable for the other side's legal fees and court costs should they lose their case.
These unscrupulous claims managers also pursue cases without merit in the hope that defendants will settle out of court rather than fight expensive cases.
The consultation Housing Disrepair Claims is open until February 12, 2026