My honourable friend the Parliamentary Under-Secretary of State (Iain Wright) has made the following Written Ministerial Statement.
The Secretary of State has today laid regulations to update the home loss payments 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. They are paid in addition to the compensation awarded for the value of the property taken, which is based on the open market value of the property together with disturbance payments. Home loss payments are subject to maximum and minimum thresholds. Tenants receive a flat rate equal to the minimum payment to owner-occupiers.
With effect from 1 September 2008, the maximum payment to owner-occupiers displaced from their home will be increased from £44,000 to £47,000 and the minimum payment will be increased from £4,400 to £4,700. The flat-rate will be increased from £4,400 to £4,700.
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.