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New Home Loss Payments Regulations 2023 coming into force in October
AuthorsCeri BowenJosephine Morton
2 min read
The upcoming Home Loss Payments (Prescribed Amounts) (England) Regulations are set to come into force in October 2023 and will impact how much a person may receive as compensation for losing their home.
Here, Partner and Joint Head of Housing and Regeneration Josephine Morton and Trainee Solicitor Ceri Bowen explain the changes.
What are home loss payments?
If a person is displaced from their home — for example, by way of a compulsory purchase order or redevelopment — they may be entitled to compensation from their landlord or the acquiring authority.
The home loss payment is a type of compensation that is available to reflect the distress and discomfort a person may experience as a result of being forced to move out of their home. To qualify, the person must have lived at the property — or a substantial part of it — as their only or main residence for at least one year as a result of an interest or right to occupy the property.
How are home loss payments calculated?
The amount of home loss payment a person may be entitled to for losing their home depends on their interest in the property. For example, freeholders and leaseholders (with at least three years unexpired in England) should be entitled to 10% of the market value of their interest.
The current position
As of 1 October 2022, the maximum home loss payment that a person can receive is £78,000 and the minimum amount is £7,800. Any other claimant (like a tenant) that qualifies for the payment is entitled to a prescribed flat rate of £7,800.
Key changes
The new Home Loss Payments (Prescribed Amounts) (England) Regulations 2023 regulations will come into force on 1 October 2023 and will increase the maximum home loss payment amount a person can receive for losing their home to £81,000, the minimum amount to £8,100 and the prescribed flat rate to £8,100.
Talk to us
To find out how our housing and regeneration team can support you in navigating home loss payments and planning for these changes, talk to us.
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