Section: Home Loss Payments

Tenant Not Told of Increased HLP Rate

Mr L rented a flat from Bolton MBC in a block of flats, which the Council decided in 2003 to demolish. Mr L complained that the Council did not notify him or fellow tenants that the amount of Home Loss Payment made as compensation would be increasing on 1 September 2003 from £1,500 to £3,100. He argued that, if he had known, he would have delayed his move in order to qualify for a higher level of compensation.

The investigation revealed that the Council's Legal Department had not told Housing staff any details of the proposed change for a number of reasons:

Staff might give mixed messages to tenants.
It might delay moving residents out.
Tenants might take decisions to delay moves when this would not be in their best interest.
Parliament might quash the Statutory Instrument when it was laid before the House.

The Council has accepted that this deprived housing officers of the information they needed in order to decide how to manage the situation, as well as depriving tenants of the opportunity to make properly informed decisions.

Ombudsman Patricia Thomas's report makes a number of recommendations, which have been agreed to by the Council, being:

To pay Mr L £1,600 (being the difference between the Home Loss Payment he received and the one he would have received if he had delayed his move), plus £200 for his time and trouble in complaining.
Consider making similar payments to other tenants, who, on investigation, the Council can be satisfied would have delayed their moves if they had been given proper advice about the impending change to the amount of Home Loss Payments.

Ombudsman Report No. 03/C/15589

New Regulations

The Home Loss Payments (Prescribed Amounts) (Wales) Regulations 2004 SI 1758 (W.189)

These Regulations apply only to Wales. They increase the maximum and minimum amounts of Home Loss Payments payable under the Land Compensation Act 1973 to those with an owner's interest in a dwelling. They also increase the amount of Home Loss Payment payable in any other case.

A person who is displaced from a dwelling by compulsory purchase or in other circumstances specified in section 29 of the Act is entitled to a Home Loss Payment.

Section 30(1) of the Act provides that in cases where a person occupying a dwelling on the date of displacement has an owner's interest, the amount of Home Loss Payment is calculated as a percentage of the market value of that interest, subject to a maximum and minimum amount.

Section 30(2) prescribes the amount of the Home Loss Payment in any other case.

Regulation 2(a) of these Regulations increases the maximum amount payable under section 30(1) of the Act from £31,000 to £34,000 and Regulation 2(b) increases the minimum amount from £3,100 to £3,400. Regulation 2(c) increases the Home Loss Payment payable, under section 30(2) of the Act, in any other case from £3,100 to £3,400.

Only the maximum and minimum amounts of home loss payments are changed and there is no change to the percentage payable of the market value of the displaced person's interest in the dwelling.

The revised amounts apply where the displacement occurs on or after 1 September 2004. These Regulations provide that the Home Loss Payments (Prescribed Amounts) (Wales) Regulations 2003 will continue to have effect in relation to a displacement occurring before the date on which these Regulations come into force but are otherwise revoked.

Section: Home Loss Payments

Tenant Not Told of Increased HLP Rate

New Regulations

Legal Update

Reporting on July-Sept. 2004

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