Dilapidations: what a landlord can claim when your lease ends

By Instrukt, published by Joshua Giles. Updated 30 October 2026. How we write guides

Not legal advice. This page has not been reviewed by a solicitor.

The short answer

As of October 2026, a dilapidations claim is a landlord’s claim at the end of a business lease in England and Wales for repairs and other work the tenant should have done. Damages for disrepair can’t exceed the fall in the value of the landlord’s interest, under section 18(1) of the Landlord and Tenant Act 1927.

What are dilapidations?

“Dilapidations” covers breaches of the lease obligations about the state of the premises. The Dilapidations Protocol doesn’t define the word, and says the work required depends on the contractual terms of the lease and any other relevant documents. It lists repair, reinstatement and redecoration as categories of breach. At the end of a lease, landlords commonly claim for:

repairs the tenant was obliged to carry out;
redecoration, if the lease requires it in the last year or at the end;
removing the tenant’s alterations and reinstating the original layout, if the lease or a licence requires it;
consequential losses, which the protocol says the landlord should quantify before issuing proceedings (paragraph 9.1).

What you owe depends on the wording of your lease and any licences (Dilapidations Protocol, paragraph 1.4), so they are the starting point. This guide covers commercial leases in England and Wales.

How does the Dilapidations Protocol work?

The Dilapidations Protocol is a pre-action protocol under the court rules. It sets out the steps landlords and tenants are expected to follow before going to court, and a court can take failure to follow it into account. The usual timetable is:

Step	Who	Usual timing
Schedule of dilapidations: each breach, the clause, the remedy and its cost	Landlord	Generally within 56 days after the lease ends
Quantified Demand: the sum claimed, with evidence	Landlord	Same timescale as the schedule
Response, item by item, endorsed by the tenant or its surveyor	Tenant	Usually within 56 days of the Quantified Demand
Without prejudice meeting	Both	Generally within 28 days of the Response
Breakdown of loss, based on a diminution valuation or actual spend	Landlord	Before issuing proceedings
Tenant’s own diminution valuation, if relied on	Tenant	Generally within 56 days of the landlord’s breakdown

Under the protocol, the landlord (or its surveyor) endorses the schedule to confirm that full account has been taken of the landlord’s intentions for the property (paragraph 3.6). Before issuing proceedings, the landlord should quantify its loss with a breakdown based on a formal diminution valuation, its actual spending on the works, or both where some work has been done (paragraph 9.1). The parties should also consider alternative dispute resolution, such as mediation (paragraph 8).

What is the section 18(1) cap?

Section 18(1) of the Landlord and Tenant Act 1927 limits damages for breach of a repairing covenant in two ways:

The diminution cap. Under section 18(1), damages can’t exceed the amount by which the value of the landlord’s interest (the “reversion”) is reduced by the disrepair.
Demolition or structural alteration. Under section 18(1), no damages are recoverable for failing to leave the premises in repair if, at or shortly after the end of the lease, they are to be demolished or altered so that the repairs would be valueless.

Under section 18(1) of the Landlord and Tenant Act 1927, damages for disrepair can’t exceed the amount by which the disrepair reduces the value of the landlord’s interest, and none are recoverable for failing to leave the premises in repair at the end of the lease if they are to be demolished or altered so that the repairs would be valueless. The example below shows how that cap works.

Worked example (illustrative figures). The landlord’s surveyor costs the repairs at £80,000.

Scenario	Cost of repairs	Fall in value of the reversion	Maximum repair damages
Landlord re-lets after doing the works; a buyer would knock the full cost off	£80,000	£80,000	£80,000
Weak market: a buyer would only knock £50,000 off for the disrepair	£80,000	£50,000	£50,000
Landlord is refurbishing so the repairs are wasted	£80,000	May be little or none	May be little or nothing
Building is to be demolished at the end of the lease	£80,000	Not relevant	Nil (second limb of s18(1))

The cap applies to damages for breach of a covenant to keep or put premises in repair. Claims under other clauses, such as removing alterations, aren’t within its wording. Diminution in value is a matter for expert valuation, which is why the protocol asks for a formal valuation where works aren’t going to be done.

How can you keep a dilapidations bill down?

Before you sign: limit repair to the condition shown in an annexed schedule of condition; check reinstatement obligations in the lease and any licence for alterations.
During the lease: keep up repairs and keep records, photos and invoices.
Before you leave: ask the landlord early whether it wants alterations removed, get your own surveyor’s view, and consider doing the work yourself instead of paying damages.
After a claim arrives: respond within the protocol timetable, ask what the landlord intends to do with the building (the landlord’s schedule must be endorsed to confirm it takes account of those intentions), and challenge items it won’t actually carry out.

Your best protection is in the lease you sign. Have it checked by a solicitor before you sign: we introduce you to an independent SRA-regulated solicitor who can review the repairing and reinstatement clauses.

Questions

What is a dilapidations claim?

A landlord’s claim at the end of a commercial lease for the cost or loss caused by the tenant not complying with repair, decoration, reinstatement and similar obligations.

How long does a landlord have to serve a schedule of dilapidations?

Under the Dilapidations Protocol, generally within 56 days after the lease ends.

What is section 18 of the Landlord and Tenant Act 1927?

Section 18(1) caps damages for disrepair at the fall in value of the landlord’s interest, and rules out damages for failing to leave premises in repair if they are to be demolished or altered so the repairs would be valueless.

Can a landlord claim dilapidations if they are knocking the building down?

Not for failing to leave it in repair, if it is to be demolished at or shortly after the end of the lease. Other heads of claim may still need checking.

Should I do the dilapidations work myself before I leave?

It can be an alternative to paying damages, but check what the lease requires, agree the scope with the landlord if you can, and make sure work doesn’t run past the end of the lease or a break date.

Worried about the end-of-lease bill?

Tell us about the lease and we’ll introduce you to an independent SRA-regulated solicitor who can check the repairing and reinstatement clauses before you sign.

Have your repair clauses checked

Sources

This guide is general information, not legal advice. Instrukt is not a law firm.