Tenant Compensation for Alterations

The right of compensation applies to nearly all council tenants who have carried out improvements permitted by the council. You can apply for compensation when your tenancy ends.

What kinds of improvement can you claim compensation for?

The Right to Compensation applies to improvements which were started on or after 1 April 1994. Examples of Rights to Compensation are:

  • Bath or shower, wash hand basin or toilet;
  • Kitchen sinks and work surfaces;
  • Cupboards in kitchen;
  • Central heating;
  • Loft and cavity wall insulation;
  • Double-glazing;
  • Rewiring;
  • Security measures (excluding burglar alarms).

NOTE: Interior decoration does not qualify for compensation.

How do I apply for compensation?

You should make a claim for compensation when you tell the Council you want to leave; You will have up to 14 days once your tenancy ends to make a claim. Important information to include:

  • Your name
  • Your address
  • What improvements you have made
  • How much each improvement cost (including receipts)
  • The date the improvement began and finished.

 

What happens next?

On receipt of your request for compensation, the Housing Department will need to assess whether you are eligible; this being the case, will need to calculate your entitlement for the claim and will notify you of the outcome.

How is my compensation worked out?

The Council will look at a number of different factors i.e.

  • The cost of the improvement to the tenant against the cost to the Council if they had completed the works originally.
  • Where applicable the value of a grant.
  • The age / condition of the improvement at the time of the claim.


Once the above conditions have been taken into account a formula for calculating the compensation is used. The formula is: C x (1-Y) N

Where C = cost of improvement (excluding grant)
Where N = the life expectancy of the improvement (housing services have guidelines regarding this)
Where Y = number of years ago improvement was completed

The Council can also deduct from the compensation any money owing to them in respect of rent arrears etc.

The maximum compensation of £3000 can be awarded for any one improvement, but you will not be eligible for compensation if the amount is below £50.

For information see the Office of the Deputy Prime Minister website (This link will open in a new window)

OFFICE USE: See A Better Deal for Tenants, Your Rights to Compensation for Improvements SCDC H113

Frequently Asked Questions

Q What happens if my claim is refused?

A You have the right to complain under the council's complaints procedure.

Q I have applied under the Right to Buy scheme, am I eligible to claim?

A No, because improvements are not included in the purchase price.