Landlord’s dilapidations (damages) claim

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This Overview introduces landlord’s dilapidations (damages) claims and signposts practical materials, including analysis, precedents and procedural guidance.

Dilapidations are central to end‑of‑term risk in commercial leasing, determining the landlord’s financial recovery for breaches of repair, decoration, compliance, reinstatement and yielding‑up covenants. Practitioners must align technical surveying evidence with legal principles. The Pre‑Action Protocol for Claims for Damages in Relation to the Physical State of Commercial Property at the Termination of a Tenancy sets expectations on schedules, the quantified demand, responses, disclosure and ADR, with costs consequences for non‑compliance. RICS professional guidance informs content and valuation.

Core issues include: proving breach and causation; interim versus terminal claims; the scope of any Jervis v Harris style self‑help clause; and the correct measure of loss. Section 18(1) of the Landlord and Tenant Act 1927 caps damages for disrepair at the diminution in the reversion’s value and excludes items rendered valueless by demolition or structural alteration; evidence of intention, redevelopment and reletting is often decisive. Supersession, betterment and mitigation commonly reduce recoveries. Contractual limits, service charge interactions and VAT require scrutiny. Limitation (usually six years), interest and costs must be addressed....

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