Dilapidations Report: What Landlords Send and How to Respond

When a dilapidations report lands, the headline figure can be alarming. It might be tens or hundreds of thousands of pounds, presented in a long schedule with lease clauses, photographs and costs. The good news is that the opening figure is rarely what is finally paid. A careful review usually finds items that are not breaches, remedies that go further than the lease requires and costs that are higher than the works would really cost. This guide explains what is in a typical report and how tenants should respond.

Landlord's report vs tenant's report

A landlord's report, normally a schedule of dilapidations, sets out the claim. A tenant's report, sometimes called a liability assessment, is commissioned by the tenant to estimate what they are actually liable for. Tenants often commission their own report before the landlord's arrives, using a dilapidations survey 12 to 18 months before lease end. Our guide to the schedule of dilapidations explains the format of the landlord's schedule item by item.

How to review a dilapidations report

For each item, ask four questions:

1. Is it a breach? Is the tenant actually responsible under the lease, or does it fall to the landlord or service charge?
2. Is the remedy right? Would a repair do, or is the landlord demanding replacement?
3. Is the cost reasonable? Are quantities and rates realistic?
4. Is it recoverable? Will the landlord actually suffer a loss, or will the works be superseded?

A schedule of condition from the start of the lease can be decisive in limiting repair liability.

Common issues found in reports

How to respond

The Pre-Action Protocol for Claims for Damages in Relation to the Physical State of Commercial Property at Termination of a Tenancy, usually called the Dilapidations Protocol, sets out how parties should exchange information. The tenant should normally respond within 56 days of receiving the landlord's terminal schedule and quantified demand, item by item, typically in a Scott schedule with columns for the tenant's comments and costs. See the Dilapidations Protocol.

Real costs vs surveyor estimates

Surveyors often estimate costs from rates databases. A price for the actual works, from the team that would carry them out, can be significantly different. Typical London ranges for office dilapidations works are around £8 to £20 per sq ft for strip-out, £15 to £35 per sq ft for reinstatement to Cat A and £4 to £10 per sq ft for redecoration, excluding VAT. Total office claims commonly fall around £25 to £65 per sq ft. We provide works-based prices that tenants and their surveyors can use in negotiations; see office dilapidations in London.

Section 18 and the cap on damages

A landlord's damages for disrepair at the end of a lease are capped by Section 18 of the Landlord and Tenant Act 1927 at the diminution in the value of the landlord's reversion. If the landlord plans to demolish or substantially alter the premises, the claim for repairs may be reduced significantly or extinguished. See dilapidations claims and Section 18.

Should you do the works instead?

If the lease has not yet ended, carrying out works yourself can often reduce the total cost and close the issue. This works best when the scope is agreed with the landlord's surveyor, works are done to the required standard and there is enough time before lease end. See office strip-out in London.

VAT and dilapidations

A damages payment for dilapidations is normally outside the scope of VAT, while works you commission yourself attract VAT. See VAT on office refurbishment and dilapidations.

Accounting for a dilapidations report

When a report gives a reliable estimate of liability, businesses may need to recognise or update a provision. See dilapidations provision.

Tenant's response checklist

• Lease, licences and schedule of condition gathered
• Own surveyor instructed
• Each item reviewed for breach, remedy, cost and recoverability
• Works-based pricing obtained
• Section 18 position considered
• Response sent within the Protocol timescale
• Negotiation strategy agreed: works, payment or a mix

Interim reports during the lease

Not every dilapidations report arrives at the end of a lease. Landlords can serve interim schedules during the term, particularly where a building is visibly deteriorating or a rent review or lease renewal is approaching. The response is different: the landlord is usually asking for repairs to be carried out rather than claiming damages. Acting promptly often keeps costs lower than leaving problems until the lease ends.

Negotiating a settlement

Most dilapidations claims settle by negotiation between surveyors. A typical sequence is the landlord's schedule, the tenant's response, a meeting or site visit to narrow the issues, revised figures and a settlement figure agreed in writing. Settlements are often a single payment in full and final settlement of all dilapidations claims. Where works have already been carried out, the settlement reflects what is left. Having realistic works prices on the table early often speeds the process and reduces the final figure.

Timing matters

The earlier you engage with a report, the more options you have. Before the lease ends, you can still carry out works. After it ends, the claim is for damages, and the landlord controls the premises. Tenants who respond promptly, keep to Protocol timescales and put realistic costs forward usually achieve better outcomes than those who wait.

How long a dilapidations report stays useful

A report reflects the premises on the day of inspection. If you commission one well before lease end, expect it to need a refresh once your plans firm up, because wear, alterations and landlord intentions change. Most tenants we work with get a first report 18 to 24 months out to set a budget and a provision, then a shorter update near the end once they know whether they are renewing, relocating or handing back. Keeping the original photo record alongside the update makes it easy to show what was already there and what has changed, which helps when the final figure is negotiated with the landlord's surveyor.

Get a works-based price

Send us the report or schedule and we will price the works as we would deliver them, to support your negotiations or to carry them out. Request a quote through our form.

Frequently asked questions

Related guides

• Office Fit-Out Cost per Sq Ft and per m² in London (2026)
• Cat A vs Cat B Fit Out: What’s the Difference? (2026)
• Schedule of Dilapidations: Example Format and How to Respond
• Office Dilapidations in London: A Tenant’s Guide
• Dilapidations Claims and Section 18 Caps Explained
• Office Fit-Out Cost Calculator London (2026)
• Office refurbishment and fit-out in London
• Areas of London we cover