Who is responsible for a leak in a shopping centre unit?

Water is coming through the ceiling tiles above the fitting rooms, the unit next door has its shutters down, and centre security wants to know whose problem it is. In a shopping centre the answer could be you, your landlord, the tenant next door, or every tenant through the service charge. Two things decide it: where the leak actually is, and what your lease says about that part of the building.

The first hour: stop the water, then worry about the bill

Who pays can wait. Who acts cannot.

Call centre management or security straight away. They often hold keys to risers, plant rooms and empty units, and they can reach neighbouring tenants quickly.
Keep people away from the wet area. Water on a shop floor is a slip hazard for staff and customers alike. Where water is near lighting, sockets or tills, have a competent person make the circuits safe before anyone touches them. HSE publishes guidance on both.
Move stock clear and photograph everything before you tidy up. Wide shots first, then close-ups of the damage and the source if you can see it.
Close your unit’s isolation valve if the water is coming from your own pipes and you know where the valve is.
Start a log. Note when the leak was noticed, who you told, and every reference number you are given.

Where the leak is decides who deals with it

As GOV.UK puts it, “Your lease should say who is responsible for repairs and maintenance of the property.” Centre leases often draw a line between the unit let to you and the parts the landlord keeps, such as the structure, the roof, the risers and any pipe serving more than one unit. The table shows common patterns. Your own lease wording overrides every one of them.

Where the leak is	Who usually deals with it	Who pays in the end
Pipes and fittings serving only your unit, after your isolation valve	You, if the lease makes you responsible for internal repairs	You, or your insurer
Risers, mains and pipes serving several units	The landlord or managing agent	Often shared through the service charge, if the lease allows
The roof, rainwater pipes and gutters	The landlord	Often the service charge
Plumbing in the unit next door or above	That tenant, or their landlord	That tenant, or their insurer
The supply pipe from the site boundary	Whoever is responsible for the supply	Depends on who holds the water account and on the lease

The water industry’s own guidance for business customers says supply pipes from the property boundary are the responsibility of the customer or the landlord, and that if you rent, your landlord is probably responsible for the pipework. It still tells you to check with them, which is sensible advice for every row above.

The lease clauses worth reading today

Most tenants only open the lease when something goes wrong. When you do, look for:

The definition of the premises. Does your unit include the floor screed, the ceiling void, the pipes and ducts running through it, or only the internal surfaces?
Your repairing obligation. What you must keep in repair, and whether it covers pipes serving only your unit.
The landlord’s obligations and services. What the landlord maintains and what it can charge for.
The service charge schedule. Which costs can be passed on to tenants.
Insurance. Who insures the building, and what you are expected to insure yourself, such as stock and fit-out.
Access. The landlord’s right to enter your unit to carry out repairs, and any arrangement for reaching pipes in neighbouring areas.

When the landlord repairs, who pays?

If the leak is in a part the landlord keeps, the cost may come back to you through the service charge, depending on the lease. RICS publishes a professional standard for service charges in UK commercial property. The second edition took effect on 31 December 2025 and contains mandatory requirements for RICS members and RICS-regulated firms. It aims for budgets and year-end certificates to be issued on time and for fewer disputes. If a leak repair appears on your service charge, ask the managing agent for the invoices and the contractor’s report behind it.

When the water comes from next door

A leak in someone else’s unit is the case that drags on longest, because you need their cooperation to stop it. A few rules help:

Let centre management make contact with the neighbouring tenant and arrange access. They are usually better placed to do it.
Do not let anyone cut into your ceiling or floor to chase a neighbour’s leak until it is agreed, in writing, who pays for making good.
Tell your insurer or broker early, even if you expect the neighbour to pay.
Keep damaged stock until your insurer says it can be thrown away.

Evidence that settles the argument

Disputes about whose pipe it was are mostly settled by evidence. Keep:

timed photos and video, taken before anything is moved
sub-meter readings, if your unit has one
a list of damaged stock with quantities and cost prices
a note of trading time lost and areas closed
every email and message with centre management, the landlord and the neighbour
the leak detection report showing exactly where the leak was

That last item tends to settle the argument, because it shows exactly where the leak was, which is what the lease is then applied to. Our reports are written to be insurance-ready, and there is more detail on our insurance claims page.

Finding the leak without closing the unit

A wet patch is rarely directly over the leak, because water runs along pipes and slabs before it shows itself. Opening up the floor or ceiling where the stain appears can mean a closed unit and a damaged fit-out, often in the wrong place. Non-invasive methods find the break first, so any opening is usually small and where the repair needs to be. See underfloor leak detection, roof leak detection, washroom leak detection and water mains leak detection.

Before anyone drills or cuts, check the centre’s asbestos records. HSE’s advice is that if a building was built or refurbished before 2000, you should assume there is asbestos in it. If centre management asks for contractor paperwork, we carry £5m public liability cover and we are accredited by CIPHE, WIAPS, WaterSafe and SPATA.

To book a survey, call 0333 567 2615. We aim to find and repair on the same day wherever the job allows.

Frequently asked

Centre management says the leak is on our side. How do we check?

Ask for a plan of the pipe runs and the location of your sub-meter and isolation valve, then read the lease's definition of your premises. Whether a pipe is yours depends on that wording. A survey that pins down the exact break gives you and the landlord the same facts to work from.

Can the landlord put the repair through the service charge?

Only if the lease allows that cost to be recovered. Ask the managing agent which clause they are relying on and for the invoices behind the charge. RICS members and RICS-regulated firms have to follow the mandatory requirements in the RICS professional standard on commercial service charges.

Who pays for our stock damaged by a neighbour's leak?

Tell your own insurer or broker first. They will say whether to claim on your policy and whether they will pursue the other tenant. Keep the damaged stock and your photos until they agree it can go.