The discovery of Reinforced Autoclaved Aerated Concrete (RAAC) in commercial buildings has become a growing concern for landlords and tenants alike. Following well-publicised safety issues, many are unsure how to respond when RAAC is identified in their premises. While the instinct may be to treat it as an urgent defect, the legal position is far more nuanced—and overreacting can result in costly and unnecessary work.
This piece explores the key leasehold considerations when RAAC is discovered in a building and sets out a practical roadmap for navigating the issue with legal and commercial clarity.
1. The Presence of RAAC Doesn’t Automatically Mean There’s a Defect
RAAC has an estimated lifespan of around 30 years, but its performance depends on factors such as quality of installation, exposure to water ingress, structural support, and load-bearing conditions. In some cases, it may remain serviceable well beyond its expected life.
This is a crucial legal distinction: RAAC’s presence alone does not mean a building is defective or unsafe. The key issue is whether the RAAC in question shows signs of deterioration or damage. Landlords and tenants should therefore commission expert inspections to determine condition rather than reacting solely to composition.
2. Lease Obligations Depend on Condition
Most commercial leases include a repairing obligation on the tenant—typically requiring the premises to be kept in “good and substantial repair” or similar. Importantly, that obligation only applies where there is an actual need for repair. If RAAC is present but intact and performing adequately, it is unlikely to engage the tenant’s duty to repair.
If, however, RAAC has deteriorated and requires remedial action, then tenants may be liable, depending on the extent and location of the damage and the precise wording of the lease.
3. Who Pays for Major Structural Works?
A key area of potential dispute is where RAAC affects structural elements of the building and requires extensive remedial work. Responsibility for such work will turn on the terms of the lease.
Many commercial leases include clauses that shift responsibility for the structure to the landlord, with tenants contributing via a service charge. However, other leases—particularly full repairing and insuring (FRI) leases—may place liability for structural repairs directly on the tenant. This can extend even to major works, depending on the breadth of the drafting.
Each lease must be interpreted on its own terms. Ambiguity over whether structural RAAC work falls within the tenant’s obligations can lead to disputes, particularly if the costs are significant. Clarity is key, and parties should seek legal advice as soon as an issue is discovered.
4. Shared Areas Can Create Grey Zones
Where RAAC is present in common parts of a building—such as stairwells, service areas, or external walls—responsibility can become more complex. Tenants often contribute to the upkeep of shared areas via a service charge, but whether this extends to substantial remedial works depends on the service charge provisions.
Some leases allow landlords to recover the cost of such works, while others may contain limitations or exclusions. Tenants should review these provisions carefully and consider whether costs arising from latent defects or modernisation fall within the scope of recoverable expenditure.
5. Statutory Duties May Override Lease Terms
In addition to contractual obligations, both landlords and tenants must remain alert to their statutory responsibilities. Health and safety legislation, occupiers’ liability, and building regulations all require that premises be kept safe for those who live, work, or visit them.
Failure to manage known RAAC risks—even if not strictly a lease breach—could expose parties to regulatory enforcement or civil claims. In some cases, this may compel action regardless of how responsibilities are split under the lease.
Practical Steps: A Risk-Managed Approach
1. Instruct a Structural Survey
Before taking any action, instruct a qualified structural engineer to assess the condition of any RAAC. This evidence is essential for evaluating legal obligations and appropriate next steps.
2. Review the Lease Thoroughly
Examine repairing obligations, service charge clauses, and exclusions. Who is responsible for the structure? Are latent defects excluded? Understanding the detail is vital.
3. Communicate and Document
Open dialogue between landlords and tenants is crucial. Agree on access for surveys, short-term safety measures, and timelines for decision-making. Document everything.
4. Consider Monitoring Instead of Replacement
If the RAAC is stable, monitored management may be sufficient. Replacement is not always required immediately and can be planned over time as part of a wider maintenance strategy.
5. Ensure Compliance
Even where lease obligations are unclear, ensure that statutory duties are discharged. Liaise with insurers and regulatory bodies as needed and take early legal advice where risks are high.
Final Thoughts
The discovery of RAAC in a commercial building is not, in itself, a legal emergency. It should be treated as a condition-based issue, not an automatic trigger for costly remedial work. The presence of RAAC must be properly assessed before obligations can be determined.
For both landlords and tenants, a careful reading of the lease—combined with expert structural input—will be essential in managing the issue proportionately and lawfully. With collaboration, clear communication, and a focus on actual condition rather than worst-case assumptions, parties can manage RAAC-related risk without falling into unnecessary conflict or cost.