Office Dilapidations in London: A Tenant’s Guide

Reinstatement means returning the premises to the condition the lease requires, often by removing the tenant’s alterations such as partitions and kitchens, before handing the office back.

If you lease an office in London, your lease almost certainly contains obligations about the condition you must return it in. At the end of the lease, the landlord can claim for breaches of those obligations: this is known as dilapidations. Claims can be significant, especially where a tenant must strip out a fit-out. This guide explains how dilapidations work and how to manage the risk. It is general information, not legal advice.

What do dilapidations cover?

Dilapidations usually relate to these lease obligations:

• Repair: keeping the premises in the state of repair the lease requires.
• Reinstatement: removing alterations, such as partitions, kitchens and cabling, and returning the space to its original layout, often required by the licence for alterations.
• Redecoration: decorating in the final year or at the end of the lease.
• Statutory compliance and yielding up: returning the premises in the condition and with the documents the lease specifies.

How does a dilapidations claim work?

A landlord can serve an interim schedule during the lease, and a terminal schedule near or after the end. In England and Wales, the Pre-Action Protocol for Claims for Damages in relation to the Physical State of Commercial Property at Termination of a Tenancy (the Dilapidations Protocol) sets out how a terminal claim should be presented and responded to, including the information the landlord should provide, the tenant’s response and an expectation that the parties try to settle before going to court. Under the Protocol, the landlord should normally send the schedule, and a Quantified Demand setting out the sum claimed, within 56 days after the tenancy ends, and the tenant should normally respond within 56 days of receiving the Quantified Demand.

Most claims are settled by negotiation, often with building surveyors acting for each side. The tenant can either carry out works before the lease ends or pay a financial settlement instead. RICS publishes professional guidance for surveyors on dilapidations.

What is the Section 18 cap?

Section 18(1) of the Landlord and Tenant Act 1927 generally limits damages for breach of a repairing covenant to the amount by which the disrepair reduces the value of the landlord’s interest. It also provides that no damages are recoverable for failing to put premises into repair at the end of the lease if the landlord intends to demolish them or make alterations that would make the repairs worthless. This is why the landlord’s plans for the building can matter a great deal. Take legal advice on how these rules apply to you.

Reinstating your fit-out

For many London office tenants, the biggest item is reinstatement: stripping out a Cat B fit-out back to the Cat A condition in which the space was let. Check your lease and licence for alterations to see whether reinstatement is automatic or only if the landlord asks, and whether notice must be given. Sometimes an incoming tenant or the landlord wants to keep the fit-out, which can reduce or remove the reinstatement cost. Our Cat A vs Cat B guide explains what these categories cover.

How can you limit your dilapidations liability?

1. At the start of the lease, agree a photographic schedule of condition and try to limit repairing obligations to that condition.
2. When you fit out, think about what you might have to remove later; designing for reuse can reduce future costs.
3. During the lease, keep the premises maintained and keep records of works, consents and maintenance.
4. Around 18–24 months before the lease ends, get advice from a building surveyor and review your obligations, any break clauses and the landlord’s likely plans.
5. Decide between works and settlement in good time, as works must usually be completed before the lease ends.

Dilapidations and your next office

Dilapidations often coincide with an office move or refurbishment. If you are relocating, factor reinstatement into your timetable and budget alongside the new fit-out. If you are staying and renewing, the position can often be negotiated as part of the new lease. Our fit-out cost guide helps with budgeting the new space.

Need a contractor for strip-out or reinstatement?

We can pass your brief to one vetted London contractor experienced in strip-out, reinstatement and new fit-outs. Request quotes, or read more about office refurbishment in London. For the legal position, always take advice from a solicitor or chartered surveyor.

Frequently asked questions

Sources

Facts and prices in this guide come from the following sources (checked 4 October 2026):

• Pre-Action Protocol for Claims for Damages in relation to the Physical State of Commercial Property at Termination of a Tenancy (justice.gov.uk)

Related guides

• Office Fit Out Cost per Sq Ft in London (2026)
• Cat A vs Cat B Fit Out: What’s the Difference?
• How to Choose an Office Fit Out Company in London (2026)
• Cat A Fit Out in London: What’s Included and What It Costs (2026)
• Office fit-out and refurbishment across London: areas we cover

This guide is general information for office occupiers, not professional cost, legal or construction advice. Costs are published benchmarks and will vary with your building, specification and programme. Always get a detailed quote and take professional advice on your lease and statutory duties.