Compensation for improvements

Your legal rights

Council tenants have a legal right to compensation for improvements carried out after 1 April 1994. The tenant must apply for this compensation within 21 days of their termination date.


Introduced as part of the Leasehold Reform, Housing and Urban Development Act 1993, the purpose of the scheme is to provide compensation to tenants who have paid for their own home improvements, but leave before they have gained full benefit from their investment. Compensation will be paid for any eligible improvements when the tenancy ends, provided that work began after 1st April 1994.

Tenants Who Qualify

A qualifying tenant is a person who is at the time the tenancy comes to an end:

  • The tenant on whose behalf the qualifying work was carried out.
  • A tenant of a joint tenancy which existed at the time of the work was carried out
  • The successor to the tenancy on the death of the tenant for whom the work was carried out

Exceptions To the Scheme

Tenants will not be eligible for compensation under the scheme if:

  • They exercise their Right to Buy or acquire the property on Rent to Loan terms.
  • Recovery of possessions is taken by court order.
  • Compensation has been paid under the discretionary power.
  • A transfer of tenancy is granted to the qualifying tenant/joint tenant for the same property.
  • The improvement was made before 1st April 1994.
  • The tenant fails to make the claim within 21 days of the tenancy ending.

Qualifying Improvements

To qualify for compensation, the improvement must be on the list of qualifying improvements as follows:

Claiming Compensation

Claims must be made in writing during the statutory period; 28 days before and 21 days after the tenancy comes to an end. Use the contact us box at the right to contact your local housing office for a claim form which details all information required for assessment. You should provide invoices for work covering material and labour. No compensation is payable towards your own labour. Compensation is only payable towards the installation, therefore, no compensation will be payable towards the cost of;

  • Professional fees.
  • Planning permission.
  • Planning consent under the building regulations.

Please use the 'contact us' box if you have any questions.

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