Increase in Home Loss Payments

Home loss payments are a form of compensation available to individuals who are forced to leave their homes. To this effect, where a tenant is permanently displaced from their homes, a landlord may have an obligation to provide compensation to reflect any inconvenience and distress suffered by the tenant.

To be eligible for this compensation, an individual must have resided in the dwelling as their main and only home for at least one year ending with the date of displacement. An individual must also show that they have a qualifying interest which includes:

  • any interest in the dwelling; or
  • a right to occupy the dwelling as statutory tenant or under a restricted contract; or
  • a right to occupy the dwelling under an employment contract; or
  • a right to occupy the dwelling under a licence. These include protected occupiers (Rent (Agriculture) Act 1976), secure tenants (Housing Act 1985), assured agricultural tenants (Housing Act 1988),and introductory tenants (Housing Act 1996).

The reason for the displacement must fall under one of the following categories.

  • Compulsory purchase of the dwelling
  • Making or acceptance of a housing order such as a demolition order
  • Redevelopment of land or improvement of a dwelling on land previously acquired and is being currently held by an authority
  • Redevelopment or improvement carried out by a registered social landlord
  • Making of a possession order under Ground 10 the Housing Act 1985

On 1st October 2023 the new Home Loss Payments (Prescribed Amounts) (England) Regulations 2023 have come into force. Here is a summary of some of the key changes:

  • The maximum home loss payment that a person can receive has increased from £78,000 to £81,000.
  • The minimum home loss payment that a person can receive has increased from £7,800 to £8,100.
  • The prescribed amount of home loss payment any other claimant (like a tenant) can claim has increased from £7,800 to £8,100.

It is crucial that any existing policies, procedures, and business plans related to permanent relocations are revised and updated in accordance with these new rules.

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