A Crisis in Compliance and Communication

Across the UK social housing sector, damp and mould disrepair fines are escalating sharply. In just a few years, claims have multiplied, settlements have increased, and the regulatory landscape has tightened.

The Housing Ombudsman’s 2024/25 report found that 87% of property condition complaints were upheld, with an average compensation award of £947 (excluding legal costs). Damp and mould were the most expensive complaint category, and the largest single award reached nearly £32,000. Most awards now sit between £2,000 and £8,000, with higher payments often linked to vulnerable residents, long delays or inadequate communication.

This surge is driven by two converging forces: the upcoming Awaab’s Law, which imposes strict deadlines on landlords to act on health-related hazards, and the Fixed Recoverable Costs (FRC) exemption, which leaves damp and mould claims outside capped legal fees until at least 2028.

The result is a perfect storm for landlords with rising legal exposure, greater scrutiny and tenants more empowered than ever to take formal action.

Awaab’s Law: Redefining Accountability

The 2020 death of two-year-old Awaab Ishak, following prolonged exposure to mould, reshaped housing regulation. The government’s response, Awaab’s Law, introduces new mandatory timeframes for landlords to investigate and resolve damp and mould complaints.

From 29 October 2025, housing providers must prove they are tackling reported hazards swiftly and transparently. Under this legislation, delays or poor documentation will not just risk tenant dissatisfaction, they could constitute a regulatory breach.

The Housing Ombudsman has repeatedly emphasised that communication failures are at the heart of many disrepair cases. Poor record keeping, missed follow-ups and inconsistent updates leave landlords unable to prove compliance even when action has been taken.

The FRC Exemption: Fuel for the Claims Industry

When the UK government introduced Fixed Recoverable Costs (FRC) in 2023, the goal was to control legal expenses by capping claimants’ recoverable fees. But housing disrepair claims, including damp and mould cases, were explicitly exempted until 2028.

This exemption has created a powerful incentive for “no win, no fee” legal firms to pursue disrepair cases. With no cap on recoverable fees, solicitors can aggressively target landlords knowing many lack the documentation to defend themselves effectively.

For landlords, a single case can escalate from a minor repair issue to a five-figure liability once solicitor fees, damages and non-compliance penalties are included.

What’s Driving the Surge in Damp and Mould Claims

Behind the growing number of damp and mould claims lies a mix of environmental, operational and social pressures:

1. Winter conditions amplify risk – Cold, under-heated homes and poor ventilation encourage condensation and mould growth

2. Tenant health awareness is rising – Residents are more aware of their legal rights to safe, habitable homes

3. Data gaps persist – Many housing providers still rely on siloed systems that do not capture timestamps, updates or follow-up actions

4. Vulnerable tenants face access barriers – Language, literacy or technology gaps make it hard for some residents to report problems effectively

Together, these challenges are pushing disrepair fines and legal actions to unprecedented levels.

The Hidden Cost of Poor Documentation

The Housing Ombudsman has repeatedly found that incomplete audit trails are one of the biggest reasons landlords lose disrepair cases.

When a complaint escalates, providers are expected to demonstrate:

• Timestamped evidence of reports and acknowledgements

• Full records of inspections, contractor visits and tenant communication

• Consideration of tenant vulnerabilities and health conditions

• Evidence of temporary mitigation while permanent repairs are arranged

Without this documentation, even well-meaning landlords can appear negligent, leaving them exposed to claims and reputational risk.

Communication Failures Are Compliance Failures

The Housing Ombudsman’s 2021 Spotlight on Damp and Mould investigation found that poor communication, weak record keeping and fragmented systems were recurring factors behind housing disrepair complaints. The report warned that many landlords lacked joined-up processes for repairs, case tracking and tenant updates, leading to repeat issues and rising legal exposure under Awaab’s Law.

At its core, the Ombudsman’s message was clear: ineffective communication equals non-compliance. When residents do not feel heard, or when landlords cannot evidence timely engagement, even well-intentioned organisations risk investigation, reputational damage and fines.

To prevent this, landlords need to modernise the way they connect with residents, particularly vulnerable tenants, and remove unnecessary digital and procedural barriers.

Ways to improve communication with tenants include:

• Using familiar, low-barrier channels such as WhatsApp or SMS rather than requiring logins or app downloads

• Offering multilingual support so non-native speakers can easily report and understand updates

• Providing 24/7 reporting options for urgent repairs or health-related hazards

• Ensuring automated responses acknowledge reports immediately, giving residents reassurance that action has begun

• Maintaining centralised dashboards and audit trails so staff can view every interaction and response deadline in one place

These practices align with the Ombudsman’s call for stronger transparency, accessibility and documentation. When communication is consistent and inclusive, complaints are resolved faster, tenant satisfaction rises and exposure to damp and mould disrepair claims falls dramatically.

From Risk to Resilience: The Power of Accessible Communication

Modern compliance now depends on real-time, accessible and auditable communication. Platforms built on familiar tools like WhatsApp allow tenants to report issues instantly, receive automatic responses and track progress without barriers.

This communication-first approach does more than improve resident experience. It creates digital evidence trails that protect landlords and enable the use of AI for immediate triage and escalation. Every message, photo and timestamp becomes proof of proactive management while automation helps prioritise the most urgent damp and mould cases, streamlining repair backlogs and ensuring Awaab’s Law timeframes are met.

By adopting these intelligent systems, landlords can transform what was once a reactive burden into a proactive, data-led compliance model that protects residents, reduces risk and restores trust.

Winter: The High-Risk Season

Damp and mould disrepair claims rise sharply during colder months. To mitigate risk, housing providers should:

• Check heating and ventilation systems before winter peaks

• Increase inspection frequency in high-risk stock

• Educate tenants on managing moisture and condensation

• Prioritise vulnerable households for rapid triage and repairs

• Keep detailed documentation of every interaction and fix

Such measures protect both tenant health and organisational reputation and can prevent expensive legal escalation.

Preparing for 2025 and Beyond

With Awaab’s Law enforcement beginning on 29 October 2025, the next year is the window for proactive preparation. Housing providers should:

• Audit communication channels and data workflows

• Define clear escalation triggers for damp and mould reports

• Train staff to document all communications consistently

• Integrate vulnerability checks into case management

• Benchmark response times against statutory limits

Those who take action now will meet compliance requirements and build resident trust in the process.

From Compliance Burden to Opportunity

While Awaab’s Law tightens regulation, it also opens the door for better operational efficiency. Housing associations that embed accessible communication, AI-assisted triage and automated documentation can cut claim rates and improve governance ratings.

This is not just about avoiding fines, it is about redefining service standards and strengthening resident relationships.

How Project Alix Helps Housing Providers Stay Ahead

Project Alix is purpose-built for housing providers facing the challenges of Awaab’s Law and the rise in damp and mould disrepair claims.

Our WhatsApp-based communication platform helps you:
✓ Capture every tenant interaction with automatic timestamps
✓ Use AI-driven software to triage reports and prioritise urgent or high-risk cases
✓ Automate escalation workflows to ensure no report breaches Awaab’s Law timeframes
✓ Communicate in multiple languages through familiar channels
✓ Maintain a single dashboard tracking all active cases and deadlines
✓ Provide transparent case updates to residents, reducing complaint escalation

With 24/7 accessibility, automated documentation and real-time audit trails, Alix reduces the risk factors identified in Ombudsman investigations - from poor communication and delayed responses to weak record keeping. It turns compliance from an administrative burden into a proactive safeguard against disrepair fines and reputational risk.

Final Word: The Cost of Inaction

The sharp increase in damp and mould disrepair fines is not a temporary spike. It is a symptom of systemic change in housing accountability. With most property condition complaints now upheld and average payouts approaching £1,000, the financial and reputational costs of inaction are high.

Those who continue with outdated communication systems risk becoming the next test case. Those who modernise, embedding transparency, accessibility and proof, will lead the sector forward.

Book your free consultation with Project Alix today to avoid the next fine.