The rise in unethical ‘no win, no fee’ firms is a threat to social landlords and residents

These tactics are obviously disingenuous, unprofessional and unethical. Clearly the focus has shifted from resolving the issue for the customer to racking up legal costs and maximising profit. In some cases, people are being advised to refuse access for repairs so that the case can proceed, only driving up costs further and delaying the solutions the customer really needs.

Some landlords have reported that they are now receiving 70 to 100 disrepair claims every week. At Abri, we’ve seen the number of claims we get more than double, from 56 in 2023-24 to 114 in 2024-25. These extra 58 cases have resulted in increased costs, which were primarily made up of legal fees to bulk litigation firms, with the firms getting about 41% more than what our customers received.

In one case, we paid £900 to the customer and the solicitors put in a bill of just over £20,000, and this is not an isolated case. These disproportionate costs to firms are taking away a significant amount of money that could have been invested in improving our homes and services.

But claim-farming doesn’t just impact landlords. It’s easy to see how appealing the marketing for these arrangements is when it often suggests there is no financial risk to the resident. In reality, if the case is unsuccessful, customers may still face substantial bills for costs that weren’t covered by their agreement.

One Abri customer, advised by their solicitor not to let us install ventilation to improve condensation and mould problems in their home, saw their case collapse when their solicitor accepted our survey results as accurate, leading to them withdrawing their claim. But because the trial had already been listed, not only were the improvement works that Abri was willing to undertake in the customer’s home significantly delayed, but the customer was also left with a £14,000 bill in legal costs. That is not access to justice. That is exploitation.

I was pleased to see that the government announced a call for evidence on claim-farming earlier this year, and both the Solicitors Regulation Authority and Royal Institute of Chartered Surveyors are looking into these practices.

So the appetite to tackle this issue is there, but to truly fix this and ensure a balanced system of redress, we need stronger regulation and enforcement. Regulatory bodies must have the power to actively police unethical claim-handling practices.

“Housing associations should also contribute to the government’s upcoming call for evidence on claim-farming, ensuring tenant protection and fairness for all parties”

There needs to be a cultural shift in litigation: the purpose of disrepair claims needs to be solving problems, not generating profit. Early resolution and fair compensation must be the key priorities.

Social housing providers must help their customers to understand their rights and the risks before they sign up to a ‘no win, no fee’ arrangement. We’ve begun telling our customers the risks of these types of arrangements so they can understand what they’re getting into.

Housing associations should also contribute to the government’s upcoming call for evidence on claim-farming, ensuring tenant protection and fairness for all parties.

This is not about avoiding accountability. When we get repairs wrong, we should be held to account and customers should be fairly compensated. It is about ending the exploitation of social housing customers, the diversion of resources from improving homes, and the distortion of the purpose of housing disrepair claims.

If we allow this to continue unchecked, the losers will continue to be the same: ordinary people and families in need of safe, good-quality homes. Now is the time to work together.

Dambu Tenner, head of legal, Abri