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Tenant and Leaseholder Alteration and Improvement Policy

9. Compensation

Under the Housing Act 1985, tenants have the right to compensation for any improvements they make to their property. Compensation will be offered when the  tenancy comes to an end and the tenant makes an application for compensation. The amount of compensation offered will depend on:

  • the net addition of value added to the property as a result of the improvement
  • the reasonable cost of carrying out the improvement; and
  • the intention of the council regarding future plans for the property

The Council operates two schemes for reimbursing tenants for improvements they have undertaken. Compensation can be considered under either the Local  Authorities (Compensation for improvements) Regulations 1994 or Section 100 of the 1985 Housing Act. Section 100 of the 1985 Housing Act is used where the improvement was undertaken prior to 1 April 1994, or the item of improvement is not included in the statutory scheme (1994 Regulations).

Any compensation offered will, in the first instance, be used to pay any outstanding debt owed to the council.

Compensation will not be paid, where the alteration required prior written approval by GYBC and this approval was not sought or would not be granted.

Last modified on 07 January 2025

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