1. The supersession principle
The core legal principle is straightforward: you can’t recover compensation for works you were never going to do.
Section 18(1) of the Landlord and Tenant Act 1927 provides that no damages can be recovered for breach of a repairing covenant if the property is to be “demolished or such structural alterations made as would render the repairs valueless.”
This is called supersession. Your development plans supersede (replace, make irrelevant) the repairs your tenant should have done.
The logic is clear: if the building is being demolished, why should the tenant pay to repair a roof that’s about to be removed?
2. It’s not all or nothing
Supersession doesn’t automatically eliminate your entire claim. It depends on:
What you’re actually planning to do
Full demolition? Complete internal strip-out? Partial refurbishment? Each scenario affects different parts of the claim differently.
When you’re doing it
Imminent works have stronger supersession effect than vague future plans.
Which items are affected
Some items may be superseded; others may not. A roof replacement scheme supersedes roof repairs but may not affect external decoration claims.
3. Scenarios and their effects
Scenario 1: Full demolition
You’re demolishing the entire building.
- Effect: Potentially total supersession. All repair items become irrelevant — the building is coming down.
- What you might still claim: Possibly some items if there’s a gap between lease end and demolition during which disrepair causes loss (rental void, for example). But generally, demolition supersedes most claims. That said, there may still be a claim for removal of alterations that the tenant has made to the building.
Scenario 2: Substantial refurbishment
You’re retaining the structure but stripping out and completely refitting the interior.
- Effect: Internal items likely superseded. External and structural items may survive.
- What you might still claim: External repairs, roof works, structural items — things your refurbishment won’t touch. Decoration and internal fit-out items are likely superseded.
Scenario 3: Partial works
You’re doing specific works — say, a new roof and new windows — but otherwise retaining the building.
- Effect: Items relating to roof and windows superseded. Other items survive.
- What you might still claim: Everything except the items your works will replace.
Scenario 4: Change of use
You’re converting the building — say, office to residential.
- Effect: Depends entirely on what the conversion involves. If it requires full strip-out, internal items are superseded. If it’s largely cosmetic, fewer items affected.
- What you might still claim: Items your conversion won’t address.
Scenario 5: Sale for development
You’re selling to a developer who will redevelop.
- Effect: Your plans (or the buyer’s) at the point of claim matter. If you’re selling knowing the building will be demolished, supersession likely applies.
- Complication: The sale price may already reflect the building’s condition. Section 18 (diminution) arguments interact with supersession.
4. The timing question
When are your plans assessed?
Generally, the relevant time is when damages are assessed — which may be at trial if the matter proceeds that far, but practically is when you’re negotiating settlement.
This creates tactical complexity:
- If you announce plans early, tenants will use supersession arguments against your claim
- If you delay announcing plans, you may achieve settlement before supersession becomes an issue
- If you deny plans that later materialise, you face credibility problems
The sensible approach is honesty. Courts don’t reward landlords who conceal intentions to inflate claims. If you have genuine development plans, factor them into your claim strategy from the start.
5. What tenants will do
Tenants facing a dilapidations claim will investigate your intentions:
- Planning applications — Public record. Any applications for demolition, change of use, or significant works will be found.
- Marketing — Is the property being marketed for development?
- Sale contracts — If you’re selling, what conditions are attached?
- Public statements — Board minutes, investor communications, press releases.
- Direct questions — Your tenant’s surveyor will ask what you plan to do. Evasive answers raise suspicions.
If there’s evidence of supersession, expect it to be raised. The burden shifts to you to show either that the works won’t supersede the claimed items, or that there’s recoverable loss despite supersession.
6. Diminution as an alternative
Even if supersession doesn’t fully apply, Section 18 diminution may limit your claim.
Section 18 caps damages at the reduction in the property’s value caused by the breaches. If you’re selling for development value regardless of condition, the diminution may be zero or minimal.
Example:
- Property value in good repair: £2 million (development value)
- Property value in current condition: £2 million (same development value)
- Diminution: £0
- Your claim may be capped at £0, regardless of what repairs would cost
Development value often doesn’t correlate with building condition. A developer buying for the site doesn’t pay more because the roof is in good repair.
7. Strategies for landlords
If you’re planning development but want to preserve your claim:
Don’t commit to plans prematurely
If development is genuinely uncertain, don’t announce it. Keep options open until you’ve resolved the dilapidations claim.
Separate timing
If there’s a gap between lease end and development start, you may have a claim for loss during that period (void costs, for example).
Focus on unaffected items
Even with partial supersession, some items may survive. External repairs not affected by your internal refurbishment, for example.
Document your position
If you’re genuinely undecided about development, document that. Evidence of uncertainty supports your position against supersession arguments.
Be realistic
If full demolition is planned and imminent, your dilapidations claim is likely minimal. Accept this and focus your energy elsewhere.
8. The honest answer
Can you claim dilapidations if you’re going to redevelop?
It depends:
- Full demolition: Probably not much, if anything
- Substantial refurbishment: Some items, but not those affected by your works
- Partial works: Items unaffected by your works survive
- Uncertain plans: More flexibility, but honesty matters
The law prevents you recovering compensation for works you’re not going to do. If your development makes your tenant’s repair failures irrelevant, you can’t charge for them.
This isn’t unfair — it reflects that your actual loss is different from the cost of hypothetical repairs.
Key Takeaways
- Supersession limits claims when your plans make repairs irrelevant
- Full demolition typically supersedes most or all items
- Partial works supersede only the items they replace
- Section 18 (diminution) may also cap claims where development value isn’t affected by condition
- Tenants will investigate your plans — expect supersession to be raised
- Honesty is best — courts don’t reward concealment
- Be realistic about what you can actually recover
Need Help?
If you’re planning development but facing a dilapidations situation, we can advise on what’s realistically recoverable and how to approach the claim. The answer isn’t always zero — but it requires careful analysis.
Related Services:
- Dilapidations for Landlords — Claim preparation accounting for your circumstances
- Schedules of Condition for Landlords — Protecting position for future leases post-development
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