How much compensation will I get?
Updated: 18 Aug 2018
You can receive up to £3,000 for each improvement. However, you will not receive any compensation for an improvement if the amount of compensation would be less than £100.
How do you work out my compensation?
Your district office will start with the cost of the improvements and may ask you to provide proof of the amount you have spent. You should keep a copy of any bills in a safe place and you may want to send a copy to your district office when the work has been completed.
If you had any financial help towards the improvement such as a grant or self help payment, we will take this amount from the cost of your improvement. The value of any improvement you have made falls as the improvement gets older and as you get use out of it. The compensation you get will take the age of your improvement into account.
We may also reduce your compensation if we believe you paid too much for the improvement or the work has been carried out to a higher specification. We may also increase or reduce your compensation depending of the condition of the improvement when your tenancy ends.
We can also take any money you owe from the compensation you are entitled to (for example, for unpaid rent).
- You install a kitchen sink costing £200. The notional life of the kitchen sink is 20 years.
- The improvement is discounted at £10 per year.
- Compensation is claimed 2 years after the improvement is made:
- £200/20 years = £10 per year; 2 years @ £10 = £20
- £200 cost - £20 = £180 compensation.