Stocktake of the Fixed Recoverable Costs Regime

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The Government has launched a 'stocktake' of the Fixed Recoverable Costs (FRC) regime, marking an important moment for civil justice reform that could have long-term implications for housing disrepair claims.

Announced by the The Civil Procedure Rule Committee, the stocktake will review how the expanded FRC regime introduced in October 2023 is working in practice, whether it is meeting its objectives and if adjustments may be needed.

While housing disrepair claims currently sit outside the fixed costs framework, this review is highly relevant to the Housing sector, particularly given ongoing debates about proportionality, access to justice and litigation costs.

The announcement follows the indirect confirmation in July 2025 that the FRC exemption for housing disrepair claims was being extended to October 2028.

What is the FRC stocktake?

The stocktake is a structured review of the 2023 expansion of Fixed Recoverable Costs (FRC), which extended cost caps to a wider range of civil claims with a value of up to £100,000, known as the 'intermediate track'.

The review is being overseen by The Civil Procedure Rules Committee, conducted in collaboration with the Ministry of Justice (MoJ), and will assess:

• Whether the reforms are delivering predictable and proportionate legal costs
• How the regime is operating across different claim types
• Whether there have been unintended consequences
• Whether further changes or refinements are needed

The Government has been clear that this is a sense-check of how the system is functioning in the real world than a roll-back exercise.

Why was the stocktake needed?

The 2023 FRC reforms represented one of the most significant changes to civil litigation costs in a decade.

Given their scale, the Government committed to reviewing the reforms once they were embedded.

Early feedback from practitioners and judges has been mixed.

While fixed costs can bring certainty and discourage disproportionate litigation, concerns have been raised about:

• Complexity in applying the new rules
• Whether some claims are being forced into unsuitable cost bands
• The impact on more complex or evidence-heavy cases

The stocktake is intended to gather evidence before any further expansion, including into currently exempt areas.

What does this mean for housing disrepair claims?

Housing disrepair claims are not currently subject to FRC due to their complexity and the vulnerability of many claimants.

However, the stocktake matters because it:

• Signals that cost reform remains firmly on the agenda
• Informs future decisions about whether exemptions should continue
• Links directly to the Government’s Call for Evidence on disrepair claims

In practice, this means housing disrepair is under observation even if not yet within scope.

What themes are emerging?

From the consultation document, several themes stand out:

• A desire to promote early resolution over litigation
• A focus on proportionality and value for money
• Recognition that one-size-fits-all approaches can create risk
• An expectation that parties engage constructively and evidence claims properly

These themes closely mirror recent judicial decisions, SRA scrutiny, and regulatory messaging in the housing sector.

Why this matters going forward

The FRC stocktake reinforces a clear direction of travel that the civil justice system is moving towards tighter cost control, higher evidential standards and fewer incentives for volume litigation.

For housing providers, this strengthens the case for:

• Early, effective repair resolution
• Robust evidence and inspection processes
• Preventing disputes before they become claims

For tenants, it highlights the importance of well-prepared, proportionate claims that focus on outcomes and not the legal process itself.

We will provide further news and insights in relation to the stocktake in due course.

How can DISREPAIR AWARE help?

Many rented homes are not inspected regularly or maintained properly - we want to help improve housing conditions for everyone.

We help tenants and leaseholders understand their rights and get support and help registered providers, private landlords and managing agents to understand their obligations and get compliant.