In an important decision, the High Court has ruled that the duties owed by landlords under the Defective Premises Act 1972 are not endless and that any liability in respect of accidental injury suffered by tenants is dependent on proof of fault.

The case concerned an accident in which a council tenant fell into a sink hole which suddenly opened up whilst she was hanging her laundry out to dry. The hole was a result of long-term water seepage from a fractured pipe some distance underground.

The potential liabilities of freeholders under the Defective Premises Act 1972came under the spotlight in a Court of Appeal test case, arising from a tragic accident in which a tourist on honeymoon was fatally injured in a fall down stairs.

The tourist was staying at a London flat when he fell. His widow subsequently sued the freeholder, the tenant under a 125-year head lease and the under-lessee.

Property valuations must be carried out in the real world and an absence of market demand may render even very large properties all but worthless. In a ruling that will be required reading for property professionals, the Court of Appeal made that point in reducing the rateable value of an office block from a six-figure sum to a nominal £1.