Seeking advice for loss of rent due to developer remedial works
I rent out a 3-bed unit in London. My tenants signed a 2-year lease in Sept 2023, with a break clause after 1 year, requiring 2 months’ notice. The entire development is undergoing structural remediation due to poor construction by the developer. The building is surrounded by scaffolding, and part of the works includes decanting tenants for up to 5 months.
Originally, we listed the flat for £3500/month, but due to the works, we rented it for £2750. After negotiating, the developer agreed to cover the £550 shortfall, bringing the rent to £3300/month. Now, my tenants have given notice due to the increased noise and disruption caused by the works. I want to claim the full rent for the duration of the original lease (Sept 2025), as their departure is clearly linked to the remediation. I have written evidence from the tenants that they want to move out because of that.
The developer is pushing me to re-list the unit which I do not think is a fair ask as I already had tenants under a 2 years agreement and I don’t see why it’s on me to find new tenants. I have a potential tenant interested but they can only pay £1200 a month as a single occupant. The developer has offered to cover only up to £2400/month (they would cover the £1200 difference). I feel this is unfair since the only reason my tenants are leaving is due to the developer’s negligence.
What are my options here? Can I claim for loss of income? Should I pursue this through small claims court in England or seek a lawyer’s help? Any advice would be appreciated.