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ARTICLE · 12 APRIL 2013

Life With The New Protocol: The Diminution Question

Charles Russell Speechlys LLP
Charles Russell Speechlys LLP
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Charles Russell Speechlys LLP

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This case, therefore, acts as a useful reminder of the principles of determination of dilapidations claims and reinforces the commitment of the judiciary to focus heavily on both cost of repairs and valuation issues when assessing such claims.

United KingdomReal Estate and Construction
Richard Flenley
Richard Flenley

One of the key advents of the new dilapidations protocol was the formal acknowledgment for the first time of the steps that the parties to a dilapidations dispute must take to demonstrate the comparison between the cost of repairs and the diminution in value of the landlord's reversion.

As is made clear by paragraph 9.1 of the protocol:

"Prior to issuing proceedings, the landlord should quantify its loss by providing to the tenant a detailed breakdown of the issues and consequential losses based on either a formal diminution valuation or an account of the actual expenditure or, where it has carried out some but not all remedial action, a combination of both; unless, in all the circumstances, it would be unreasonable to do so".

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