Compensation for Tenants' Improvements

A statutory 'Right to Compensation' came into effect on 1 April 1994 and the 'Secure Tenants of Local Authorities (Compensation for Improvements) Regulations 1994' applies to improvements carried out by secure tenants after this date.

Compensation can only be paid in respect of  certain works which are given a notional life.

If claims relate to improvements carried out before these time periods then no compensation will be paid.

Compensation will depend on:

• the date the works were undertaken
• whether the price paid was excessive
• whether the works were for a higher quality than the council would have carried out
• whether the improvement has deteriorated quicker than the notional life implies.

No payments are made in respect of any amounts below £50 and the maximum payment is £3,000.

To be able to claim, secure tenants must:

• complete and return the 'Compensation for Tenants' Improvements Scheme Claim Form'
• attach invoices for the works together with the relevant council's permits to the claim form
• submit  the claim, permits and invoices to the council within 14 days of the tenancy termination (claims outside this time period cannot be considered).

Please notethat Secure tenants are not eligible for any compensation for improvements if they exercise the Right To Buy.

In addition no compensation is payable in respect of:

• the cost of any professional fees i.e. architects
• the cost of any relevant planning permission
• the cost of any consent under the Building Regulations
• the tenant's own labour costs.

Please contact the Housing Department's Administration Officer if you have any queries regarding claims for tenants' improvements.

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