The Government's statement of 25 June 2025 that introduced Awaab's Law and electrical safety testing for social landlords also announced the Government's intention to launch a Call for Evidence.
In a recent bulletin,we reported on the fact that the Social Housing (Prescribed Requirements) (England) Regulations 2025 had been laid before Parliament on 25 June 2025, marking the start of the implementation of Awaab's Law. This was accompanied on the same day by the Government's written statement. As well as announcing the introduction of Awaab's Law and electrical safety testing for social landlords, the statement also announced the Call for Evidence as the Government said it wanted to reduce unscrupulous "claims farming" activity in housing disrepair cases.
What is "claims farming?"
Claims farming is the practice of using intermediaries or third parties who contact and encourage individuals to bring a claim for compensation (which is then passed on to a solicitor). This practice is widely used in personal injury and housing conditions claims. Whilst claims management companies are now regulated and referral fees are banned in some cases (for personal injury but not housing disrepair), the practice of claims farming still goes on and there is a question around the ethics of generating claims in such a way.
The Government's statement on 25 June 2025
The first phase of Awaab's law will come into force in October 2025 and there is likely to be a surge in claims brought against social housing providers who are in breach of this legislation.
If a landlord is in breach of Awaab's law, a tenant may be entitled to compensation. The Government has advised that it wants to ensure the system of redress remains fair, that vulnerable tenants are not exploited and that both tenants and landlords are not unfairly targeted by unscrupulous claims farming activity. In order to do this, it has announced an intention to launch a "call for evidence" to gather evidence on referrals made by claims management companies to solicitors and consider how to reduce unscrupulous claims farming activity in housing disrepair cases.
The Government has advised that it will continue to protect consumers' interests by sharing insight on poor practices with the Solicitors Regulation Authority (SRA) and the Financial Conduct Authority (FCA), to inform their work in terms of regulating inappropriate behaviours and practices in the sector.
It is worth noting that the 25 June 2025 announcement also highlighted the Government's Make Things Right Campaign, which was originally launched in October 2023. This encourages social housing tenants to put pressure on landlords to improve their living conditions and informed tenants about their right to escalate complaints to the Housing Ombudsman. The Campaign will be widened to include information about Awaab's Law.
The Call for Evidence will come on the back of the SRA's investigation of more than 50 law firms that deal with volume litigation (including housing conditions claims) which began in December 2024. The need to protect consumers is high on the Government's agenda and this will be an opportunity for social landlords to report on any underhand behaviours their tenants have been subject to.
