Q&As

Where an assured shorthold tenancy provides that a tenant pay the landlord’s costs incurred in connection with the recovery of rent arrears, what methods can a landlord use to recover costs incurred in serving a section 8 notice following arrears of rent (which were subsequently settled prior to proceedings being issued)?

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Published on LexisPSL on 13/05/2019

The following Property Disputes Q&A provides comprehensive and up to date legal information covering:

  • Where an assured shorthold tenancy provides that a tenant pay the landlord’s costs incurred in connection with the recovery of rent arrears, what methods can a landlord use to recover costs incurred in serving a section 8 notice following arrears of rent (which were subsequently settled prior to proceedings being issued)?

Where an assured shorthold tenancy provides that a tenant pay the landlord’s costs incurred in connection with the recovery of rent arrears, what methods can a landlord use to recover costs incurred in serving a section 8 notice following arrears of rent (which were subsequently settled prior to proceedings being issued)?

It must first be ascertained that the costs recovery clause is sufficiently wide to encompass costs incurred in preparing and serving a section 8 notice for possession (section 8 of the Housing Act 1988 (HA 1988)), ie the notice was seeking possession rather than recovery of rent, albeit that the ground for possession was rent arrears and the service of the notice resulted in those arrears being settled. For more information in respect of construction of cost recovery clauses in the context of leases, see Practice Note: Recovery of landlord’s costs of enforcing tenant’s covenants. For guidance in respect of recovery of costs under contractual clauses more generally, see Practice Note: Costs—recovery of costs under contractual clauses and in respect of pre-action costs recovery more generally, see Practice Note: Pre-action—costs recovery.

Costs only CPR 8 proceedings are used by a party to recover pre-action costs where the parties have agreed to settle the dispute before the commencement of proceedings, but they have been unable to agree costs.

CPR 46.14(1) sets out the requirements for the costs-only

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