Development of Scots law on dilapidations: Diminution valuations as a measure of the landlord’s loss

Abstract

Without the application of section 18(1) of the Landlord and Tenant Act 1927, Scots law on dilapidations has developed differently to the law south of the border. This article considers the principles applied in both English and Scottish cases, and looks at three recent decisions in the Scottish Courts — Grove v Cape, Mapeley, and the decision on appeal in @SIPP — and considers where, in the absence of payment clauses, diminution in value may be available as a possible alternative measure of the landlord’s loss in Scotland. Other matters considered include: the potential conflict between normal damages and s18(1); formal guidance and procedures both north and south of the border; the four ‘type’ of dilapidations cases; the basic components of a straightforward diminution valuation; and the building surveyor’s input and a ‘shortcut method’ of assessing diminution in a simple case.