The Home Loss Payments (Prescribed Amounts) (England) Regulations 2018 (SI 2018/915) came into force on 1 October 2018 (“the Regulations”).
The Regulations increase the amount of compensation payable under the Land Compensation Act 1973 (“LCA 173”) to a person who is permanently displaced from their home where possession of the property is required for the purposes of re-development or improvement by a local authority or RP.
When is a Home Loss Payment payable?
Home Loss Payments are limited to those with a legal interest in the property, including tenants. The payments apply to occupiers who have to move permanently as a result of their property being demolished or re-developed, and this is paid by the local authority or RP who has obtained possession on this basis.
How is Home Loss Payment calculated?
The amount payable depends on the extent of the occupier’s interest in the property. If the occupier has an ‘owner’s interest’ in the property (freehold or leasehold with more than 3 years left to run), the amount will be 10% of the property’s market value, subject to the new statutory limit introduced by the Regulations.
The maximum amount of compensation for owner-occupiers has been increased from £61,000 to £63,000.
In all other cases where the occupier is not an owner-occupier, the minimum amount of compensation payable has been increased from £6,100 to £6,300.
If the occupier is a statutory tenant, the prescribed amount of compensation payable has been increased from £6,100 to £6,300.
The Regulations only apply to displacements which take place on or after 1st October 2018. The lower amounts stated and prescribed by The Home Loss Payments (Prescribed Amounts) (England) Regulations 2017 (SI 2017/769) will continue to apply to any displacement occurring before 1st October 2018.
For further information or advice please contact Rebecca Brady on 0207 065 1838 or firstname.lastname@example.org