Housing repairs policy

The right to compensation for improvements is subject to certain qualifying criteria and regulations contained in The Secure Tenants of Local Authorities (Compensation for Improvements) Regulations 1994 Statutory Instrument 1994 No. 613. For full details of the Regulations see: https://www.legislation.gov.uk/uksi/1994/613/made

Entitlement

Entitlement to compensation for a qualifying improvement will depend on whether the following eligibility criteria is satisfied:

• the tenancy must be secure
• sole tenants or one of both joint tenants are eligible
• written consent for the alteration must have been given by the Council before the improvement work was carried out
• the alteration must qualify in accordance with the regulations (see qualifying alteration set out below)

Compensation will not be paid in the following circumstances:

• the compensation payable is less than £50
• the tenancy has ended as the result of an eviction
• the tenancy has ended due to the occupant(s) exercising the Right to Buy
• the dwelling house has been disposed of to the tenant or one of the joint tenants under section 32(4) or 43(5); or
• a new tenancy of the same or substantially the same dwelling house has been granted to the qualifying person (or, in the case of a joint tenancy to all joint tenants) whether or not with anyone else
• the improvement has deteriorated at a greater rate than provided for in the notional life for that improvement

Qualifying improvements

A 'qualifying improvement' means an improvement consisting of the installation, or replacement of an item detailed in table 1 below, together with the notional life of the improvement, which is the life expectancy of the repair in years.

Calculating compensation

In accordance with the Regulations the amount of compensation payable is calculated according to the following formula, which takes into account wear and tear and depreciation.

C x [1 - Y/N]

• C = original cost of the improvement (any financial assistance (such as a grant) that was paid towards the cost of the improvement may be deducted from the cost)
• Y = the number of complete years the improvement has been in place (with part of a year being rounded up to a complete year) starting on the date the improvement was completed and ending on the date the compensation is claimed
• N = the notional life of the improvement

Deductions or additions to the compensation payable will be made if:

• the cost of the improvement was excessive
• the improvement is of a higher quality than it would have been if the Council had done the work
• the improvement has deteriorated at a greater rate than is specified as the notional life in the Table 1 above
• any money is owed to the Council by the tenant (e.g. rent arrears, service charge arrears, rechargeable repairs or court costs)

An increase to the compensation payable may be made if the improvement has deteriorated at a lesser rate than is specified as the notional life in Table 1 above.

Compensation can be claimed for the cost of materials (but not appliances such as cookers and fridges) and labour costs, but not the tenants own labour. No compensation can be claimed for professional fees (such as architects), or the costs of any relevant planning permission or consent under Building Regulations.

Compensation will be payable to a maximum of £3000 for any one improvement. No payment will be made if the level of compensation is less than £50.

Making claims

Claims must be made in writing not more than 28 days before, or 14 days after the date on which a tenancy ends and must contain sufficient information for the claim to be determined, including;

• name and the address of the Council property where the improvement was made
• the new address
• daytime telephone number
• what improvement has been made, including any relevant breakdown of specification required to evaluate whether it qualifies and how much of the cost claimed is attributable to the improvement
• how much the improvement cost
• the date the improvement began and finished
• a copy of the invoice to show how much the improvement cost
• a copy of the letter from the Council giving consent to the improvement