Compensation for fraudulent possession HA 1988 s. 12
Courts can order landlords to compensate former assured tenants if a possession order under Schedule 2 was obtained through misrepresentation or concealment.
Where a landlord obtains an order for possession of a dwelling-house let on an assured tenancy on one or more of the grounds in Schedule 2 to this Act and it is subsequently made to appear to the court that the order was obtained by misrepresentation or concealment of material facts, the court may order the landlord to pay to the former tenant such sum as appears sufficient as compensation for damage or loss sustained by that tenant as a result of the order.
Text in force at .
Source: legislation.gov.uk — The National Archives (legislation.gov.uk), reproduced under licence Open Government Licence v3.0.
What it actually says
When a court grants a landlord a possession order to evict an assured tenant based on grounds set out in Schedule 2, the landlord must present accurate facts. If it later emerges that the landlord obtained that possession order by lying or hiding crucial facts, this provision enables the court to intervene on behalf of the evicted tenant.
Misrepresentation occurs when a landlord makes false statements to the court, while concealment involves deliberately suppressing facts that would have influenced the court's decision. For this provision to apply, those false statements or hidden details must be material, meaning they were directly relevant to whether the legal grounds for possession were met.
Where deceit or concealment is proven, the court has discretion to require the landlord to pay compensation. This payment is designed to cover the monetary loss or damage the former tenant suffered as a direct consequence of being forced to leave the property under the improperly obtained court order.
When it applies
- A landlord claims in court that they need the property for personal residence, but immediately relists it for higher rent after evicted tenants leave.
- A landlord conceals evidence of rent payments made by the tenant to falsely convince the court that mandatory rent arrear grounds were satisfied.
- A landlord provides fabricated evidence of tenant misconduct while hiding records that disprove those allegations to secure a possession order.
What this section does not say
- Illegal evictions carried out by a landlord without obtaining any court order at all.
- Tenants who voluntarily surrender their tenancy after receiving a notice without a formal court possession order being made.
- Financial compensation for distress where no actual damage or financial loss resulted from the court order.
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This page reproduces the text of HA 1988 s. 12 in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in England and Wales.