This ruffian's house may be old - a bit of a dump (7)

I believe the answer is:

hoodlum

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'this ruffian's' is the definition.
(I've seen this before)

'house may be old a bit of a dump' is the wordplay.
'house' becomes 'ho' (abbreviation for house).
'may be' indicates anagramming the letters.
'a bit of a dump' becomes 'um' (I can't explain this - if you can you should give a lot more credence to this answer).
'old' anagrammed gives 'odl'.
'ho'+'odl'+'um'='HOODLUM'

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(Other definitions for hoodlum that I've seen before include "One breaks the law" , "Aggressive young criminal" , "Petty ruffian" , "Rowdy" , "Mobster" .)

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