Under the Land Compensation Act 1973, a landlord may have to pay a resident a home loss payment if the resident is permanently displaced from their home (subject to the circumstances and various conditions that have to be satisfied).
New Regulations, the Home Loss Payments (Prescribed Amounts) (England) Regulations 2022, have been introduced that increase the amounts payable.
For displacements on or after 1 October 2022 the new amounts will be:
- for tenants, a minimum payment of £7,800 (in place of the existing £7,100)
- for leaseholders (who are entitled to 10% of the market value of their interest in the property):
- a minimum payment of £7,800 (replacing the existing £7,100 amount); and
- a maximum payment of £78,000 (replacing the existing £71,000 amount).
In preparation for these changes, you must ensure that your policies and procedures, together with any business plans for redevelopment which include permanent decants, are updated to reflect the new amounts.
For more information
If you would like to find out more about this article or decants and home loss payments generally, please contact Emma Hardman.
Please note we are unable to advise tenants.