Warning for housing tenants about rising disrepair claim scams
We're urging tenants to stay alert after a rise in approaches from rogue claims management companies encouraging residents to pursue housing disrepair claims, often leaving them in debt, stressed, or tied into costly legal contracts.
We have seen a number of recent cases where tenants were persuaded to sign agreements without understanding the consequences, including being advised not to allow the council access to their home for repairs. This can place tenants in breach of their tenancy agreement and delay essential work being carried out.
Typically, these companies will target tenants using scam tactics such as:
- target people living in social housing
- pretend to be working with Gateshead Council
- pressure tenants into signing documents
- make unsolicited visits or cold calls, sometimes posing as surveyors
- lock tenants into contracts that charge significant withdrawal fees
These companies pass cases to solicitors for profit. Despite promises of 'no win, no fee', tenants may still face charges, regardless of whether the claim succeeds.
A current tenant, who wishes to remain anonymous, spoke of their recent experience of a scam cold caller:
"I was first contacted by an individual who knocked on my door. They asked about property repairs and explained what could be claimed for. I was unsure what was happening and was not aware that this process involved suing the council.
Once I understood what was going on, I asked for the claim to be stopped, but the solicitors told me that if I cancelled, I would be liable for fees of £2,500."
All genuine Gateshead Council staff will carry official identification. Anyone unable to provide ID should not be allowed into the home. If a tenant feels unsafe, they should call the police.
Should a tenant choose to pursue a case, the council will always robustly defend itself against fraudulent or exaggerated disrepair claims. Recent outcomes include:
- Case 1: A tenant's claim was dismissed in court. The tenant was ordered to repay approximately £1,500 in rent arrears, and we were awarded £8,000 in costs.
- Case 2: In a similar case, a judge dismissed the disrepair claim and ruled only minor maintenance work was required. Due to rent arrears, the tenant received a Postponed Possession Order, including a weekly instalment plan and additional court fees.
These examples highlight the serious financial risks tenants face when persuaded into unfounded legal claims.
Disrepair claims - particularly those driven by profit-seeking companies - are costly and time-consuming. Every hour spent dealing with unnecessary legal action reduces the council's capacity to carry out routine repairs, deliver planned investment in homes, and provide essential support services.
Even when a tenant's claim is successful, they may receive only a small proportion of any compensation, with a significant amount taken by solicitors or claims companies.
Councillor Chris Buckley said:
"We are seeing far too many tenants being misled by claims companies, whose only aim is to make money. These companies often leave people worse off—facing debts, court fees, and unnecessary stress. We want tenants to know that they can come to us directly. We will always work with them to resolve issues quickly and safely. Protecting our residents from exploitation is a priority, and we urge everyone to stay cautious and seek advice before signing anything."
The council encourages tenants to come directly to them if they have concerns about the condition of their home, as most issues can be resolved quickly and without legal action.
Tenants should:
- report any home repairs promptly, using My Housing Account, call 0800 408 6008, or email [email protected]
- allow access for repair appointments
- claims companies may advise tenants to refuse access - this is incorrect and may breach tenancy rules
- seek independent advice from trusted organisations if you are unsure, including Citizens Advice Gateshead, Shelter, The Housing Ombudsman, and Solicitors regulated by the Solicitors Regulation Authority (SRA)
We're urging tenants to stay alert after a rise in approaches from rogue claims management companies encouraging residents to pursue housing disrepair claims, often leaving them in debt, stressed, or tied into costly legal contracts.
We have seen a number of recent cases where tenants were persuaded to sign agreements without understanding the consequences, including being advised not to allow the council access to their home for repairs. This can place tenants in breach of their tenancy agreement and delay essential work being carried out.
Typically, these companies will target tenants using scam tactics such as:
- target people living in social housing
- pretend to be working with Gateshead Council
- pressure tenants into signing documents
- make unsolicited visits or cold calls, sometimes posing as surveyors
- lock tenants into contracts that charge significant withdrawal fees
These companies pass cases to solicitors for profit. Despite promises of 'no win, no fee', tenants may still face charges, regardless of whether the claim succeeds.
A current tenant, who wishes to remain anonymous, spoke of their recent experience of a scam cold caller:
"I was first contacted by an individual who knocked on my door. They asked about property repairs and explained what could be claimed for. I was unsure what was happening and was not aware that this process involved suing the council.
Once I understood what was going on, I asked for the claim to be stopped, but the solicitors told me that if I cancelled, I would be liable for fees of £2,500."
All genuine Gateshead Council staff will carry official identification. Anyone unable to provide ID should not be allowed into the home. If a tenant feels unsafe, they should call the police.
Should a tenant choose to pursue a case, the council will always robustly defend itself against fraudulent or exaggerated disrepair claims. Recent outcomes include:
- Case 1: A tenant's claim was dismissed in court. The tenant was ordered to repay approximately £1,500 in rent arrears, and we were awarded £8,000 in costs.
- Case 2: In a similar case, a judge dismissed the disrepair claim and ruled only minor maintenance work was required. Due to rent arrears, the tenant received a Postponed Possession Order, including a weekly instalment plan and additional court fees.
These examples highlight the serious financial risks tenants face when persuaded into unfounded legal claims.
Disrepair claims - particularly those driven by profit-seeking companies - are costly and time-consuming. Every hour spent dealing with unnecessary legal action reduces the council's capacity to carry out routine repairs, deliver planned investment in homes, and provide essential support services.
Even when a tenant's claim is successful, they may receive only a small proportion of any compensation, with a significant amount taken by solicitors or claims companies.
Councillor Chris Buckley said:
"We are seeing far too many tenants being misled by claims companies, whose only aim is to make money. These companies often leave people worse off—facing debts, court fees, and unnecessary stress. We want tenants to know that they can come to us directly. We will always work with them to resolve issues quickly and safely. Protecting our residents from exploitation is a priority, and we urge everyone to stay cautious and seek advice before signing anything."
The council encourages tenants to come directly to them if they have concerns about the condition of their home, as most issues can be resolved quickly and without legal action.
Tenants should:
- report any home repairs promptly, using My Housing Account, call 0800 408 6008, or email [email protected]
- allow access for repair appointments
- claims companies may advise tenants to refuse access - this is incorrect and may breach tenancy rules
- seek independent advice from trusted organisations if you are unsure, including Citizens Advice Gateshead, Shelter, The Housing Ombudsman, and Solicitors regulated by the Solicitors Regulation Authority (SRA)
