Housing Recompense Policy

Contained here is general guidance rather than detailed information. Where there is any difference between what is stated in this document and either the tenancy agreement or relevant legislation, it is the latter that takes priority.

This section sets out what payments are set out in existing legislation.

This section provides examples of mandatory payments which could include home loss, disturbance, improvements and payments under the Right to Repair scheme.

a) Home Loss

A Home Loss payment shall be made in recognition of the personal distress, upheaval and inconvenience a customer is caused if they have to leave their home permanently because

• the dwelling is subject to major improvements as part of regeneration scheme or is to be
• sold or demolished as part of a redevelopment scheme

If the Council intends to demolish a building either a single residency or a block of flats or retirement living court and that building is occupied, then provided the secure tenant or fixed term tenant has occupied the property for at least 12 months prior to moving, they will be entitled to a Statutory Home Loss Payment.

Remodelling, or refurbishing a dwelling or a building is more complicated. If someone has to move out to allow modernisations or for the property to be remodelled, and they can return to the property (even if they chose not to) then they are not entitled to this payment. If they can return to the building (for instance where a retirement living court is being remodelled) but their original flat does not exist, they will be entitled to a payment. However they will not be entitled to payment if their original flat largely remains, but has been extended.

Home Loss Payments are subject to the tenant surrendering their tenancy of the property affected and giving vacant possession to the Council in order for it to be re-developed. It will only be payable once the tenant has handed back the keys to their property to the Council.

Please note that joint tenants will be entitled to one Home Loss Payment to share between them.

Any introductory or secure tenant can qualify provided they have been in occupation of the property as her/his only or main residence throughout a one-year period ending on the date of displacement. Tenants who are being evicted prior to the move will not receive a Home Loss Payment, neither will non-secure tenants nor those living in a property by virtue of a licence.

Home Loss payments are in addition to any payments that may be due to a leaseholder in respect of the value of a legal interest in their property, where their home is compulsorily purchased.

In the vast majority of cases we will discuss with each resident and any representative any Home Loss entitled, without them needing to apply. We will arrange and make any necessary payments direct to the resident.

Home Loss Payments will only be paid once, even if the tenant moves twice (to an initial home and back to the redeveloped home).

The Council reserves the right to seek to debit from the Home Loss Payment any outstanding debts owed by council tenants.

Home Loss Payment Levels

The level of home loss payment is set by the Government in accordance with the Planning and Compensation Act (1991), the Land Compensation Act (1973) and Home Loss Payments (Prescribed Amounts) (England) Regulations (2017). The level is reviewed annually.

The Council reserves the right to seek to debit part or all of the Home Loss Payment to settle outstanding debts owed by council tenants:

• Any rent arrears against the property (including former tenant arrears);

• Any court costs regarding the tenancy;

• Any garage rent arrears owed by the tenant;

• Any re-charges in relation to property damage, caused either deliberately or through neglect;

The amount payable is prescribed in law. This amount will change on an annual basis. The current amount is prescribed by the Home loss Payments (Prescribed Amounts) (England) Regulations 2016.

b) Disturbance

A Disturbance Payment is payable in addition to Home Loss to Introductory or Secure tenant or a leaseholder and is intended to cover the “reasonable costs” associated with moving so that tenants are not financially disadvantaged by having to move. Residents who do not qualify for a home loss payment may qualify for a disturbance payment, for example because they do not satisfy the residence requirement.

Reasonable costs’ do not include weekly rent payments or any other personal loss

incurred through the process that should normally be covered by an occupier’s own

insurance policy.

It is payable to a secure or fixed term tenant or a leaseholder who has to permanently leave their home because the Council intends to demolish or re-develop a building either a single residency or a block of flats or retirement living court. It will be paid provided that the tenant has occupied the property for at least 12 months prior to moving.

Payments include;

• Removals
• Replacement floor coverings
• Post redirection
• Assistance contacting utility companies if required
• Legal fees arising from the sale of the property and the acquisition of a replacement (for leaseholders only)

The level of disturbance payment will vary from claim to claim and is dependent on the claimant’s specific circumstances. For example the cost of removals and floor coverings will depend upon the size of the property.

In order to simplify the process, removals will be carried out by our removals contractor within the same limits as are included in the Transfer Incentive Scheme. If someone prefers to arrange their own removals, we will reimburse on receipt of an invoice up to these limits

We will pay the cost of carpeting the whole of the new property. We have a longstanding arrangement with a carpet supplier and will use their basic range for carpets for these purposes.

We would normally expect residents or their relatives to make contact with utility companies, but for vulnerable residents with no support, we will assist where we can.

In the vast majority of cases we will discuss with each resident and any representative what they are entitled to. They will not need to apply in these situations and we will work closely with them to make any necessary arrangements.

Payments will be made to cover each move. For tenants who move into alternative accommodation as their settled accommodation, the payment will be made once. For tenants who move twice (to an initial home and back to the redeveloped home), the payment will be made twice.

c) Right to Repair

All council tenants have the right to have certain small urgent repairs done quickly and easily, where it might affect their health, safety or security. If a repair isn’t carried out within the time limit set, tenants can ask the Council to get another contractor to carry out the work. The second contractor has the same amount of time to complete the work as the original contractor. If the second contractor fails to complete the repair on time, the tenant has the right to a financial payment unless they are not home at the arranged time to let in the contractor or refuse access. In these circumstances the repair work will be cancelled and they will need to start the procedure again.

The Right to Repair applies to all secure and introductory tenants for eligible repairs only (see Appendix A) costing no more than £250. Provided that they did not cause the problem or fail to provide access for inspection or the work to be carried out, or if the repair is not carried out due to unforeseen circumstances such as severe weather.

Tenants are normally entitled to £10 in payment. For every extra day they wait, they will get another £2, up to a maximum of £50. If they have rent arrears, the amount will be deducted from their arrears rather than being paid directly to them. See Appendix A for more information.

d) Right to Compensation for Improvements

Secure tenants only can claim under the scheme if they have left or are about to leave the home they carried out the improvement to, because they have stopped being a council tenant, or have transferred or exchanged homes. To make a claim the tenant must write in within the period starting 28 days before, and ending 14 days after, the tenancy ends.

Customers will not be entitled to claim if they have assigned their tenancy to someone else (unless the claim is within 14 days of this happening), purchased their property under the Right to Buy, or the tenancy was brought to an end by way of a court order.

They can only receive payment to help with the cost of works, if:

• They had the written approval of the Council before starting the work
• The work is one or more of the qualifying improvements highlighted in the table below (see Page 9)

The claim must include:

• Details of the improvements made;
• Confirmation of how much each improvement cost, including a copy of the invoice to show how much the work cost;
• Copies of all relevant certificates demonstrating that the improvement has met required legislation and building control standards (e.g. FENSA certificates,
• The date the improvements began and finished

Wealden District Council will inspect the improvements and information provided to ensure that the works have been completed to an acceptable standard before considering whether to make financial payment. If works fail to meet this standard, or relevant safety certificates cannot be provided, no financial recompense will be offered and the tenant may be asked to re-instate the property to its original condition at their own expense.

We will take into consideration the following factors when determining the level of payment:

• the cost of the improvement;

• the time since the improvement was completed; and

• the notional lifespan of the improvement

The level of payment payable may be reduced or increased if:

•  The cost of the improvement was excessive
• The improvement is of a higher quality than it would have been had the landlord carried out the work
• The improvement has deteriorated at a greater (or lesser) rate than the expected notional life, as detailed in Appendix 2, for normal wear and tear
• If the improvement was funded by a grant

A letter will then be sent to the tenant explaining the outcome of the claim not more than 21 days from the date the claim was received. This will include details of how the claim was calculated if it is decided that a payment is due.

Qualifying Improvements:

Tenants do not qualify for payment if:

• The improvement was started before 1 April 1994
• They replaced something that was in a satisfactory condition
• The value of any payment would be less than £50
• If they are buying their home

At the time of writing (may 2020) the maximum award payable is £3,000, but the amount payable will depend on the cost of improvement and its remaining “notional life” (see Appendix B for details on notional life for different improvements).

This section provides examples of quantifiable loss which could include: increased heating bills due to disrepair, having to pay for alternative accommodation or take away food, paying for cleaning or carrying out repairs when as a landlord we have failed to meet our obligations.

These loss payments are only made where a “price” can be put on the loss, the loss has been reasonably incurred and can be evidenced. This applies to both tenants and Retirement Living leaseholders, but NOT Right to Buy leaseholders.

Quantifiable Loss Payments can include, but are not limited to:

• Providing a food allowance, if tenants have to be moved to emergency/ temporary accommodation or where the kitchen in their property is unusable, where this did not result from their own actions e.g. due to a fire or flood. The Council will only provide a flat rate payment, which will depend on factors such as whether the temporary accommodation has cooking facilities or onsite catering etc.
• Where a tenant or leaseholder is placed in alternative accommodation they will pay the rent on the cheapest accommodation only, whether it be their permanent or temporary home.

This section explains under what circumstances recompense other than that required by existing legislation will be paid.

Discretionary payments can be considered for both tenants and retirement living leaseholders in the in the following situations:

• poor complaint handling
• failure to provide a service that has been charged for
• temporary loss of amenity
• loss of use of part of the property
• failure to follow policy and procedure
• unreasonable time taken to resolve a situation

In making a decision the individual circumstances of the case and the occupants will be considered.

Other remedies

Other actions may be taken to remedy a complaint either separately from or in conjunction with an offer of financial recompense. These can include practical actions and gestures of goodwill. A flexible approach will be taken when considering the different remedy solutions available in order to find an acceptable way forward for both parties.

• Practical actions – A member of the Housing Management Team can approve the use of practical remedies to resolve or relieve a situation e.g. alternative heating supply, redecoration or decorating vouchers, move to temporary alternative accommodation
• Gestures of goodwill – The Head of Housing has the authority to make a gesture of goodwill payment in kind (e.g. chocolates, flowers) up to a maximum value of £50 or as a financial payment (e.g. gift voucher) up to a maximum value of £50 in exceptional circumstances for actual loss or in recognition of the significant distress and inconvenience caused.

Payment of Financial Recompense to Customers

Review of Decisions

Monitoring

Financial Implications

Policy Review

1 This is a different process and timescales from Wealden District Council’s Complaints Procedure