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Home Loss Payments

Volume 461: debated on Tuesday 19 June 2007

Following the annual review, on 26 June the Secretary of State will lay regulations to update the home loss payment thresholds in section 30 of the Land Compensation Act 1973 (as amended). Home loss payments are paid at a rate of 10 per cent. of the market value to owner-occupiers who are displaced from their homes as a result of compulsory purchase or certain housing orders. These are subject to maximum and minimum payments. Tenants receive a flat rate equal to the minimum payment to owner-occupiers.

With effect from 1 September 2007 the maximum payment to owner-occupiers displaced from their home will be increased from £40,000 to £44,000 and the minimum payment will be increased from £4,000 to £4,400. The flat-rate will be increased from £4,000 to £4,400.

The period of two months between laying the regulations and commencement will give acquiring authorities reasonable notice to revise their budgets for compensation. This is similar to the notice period given in previous years for revisions to the home loss payments thresholds.