The following are qualifying improvements:

Improvement

Notional Life

Bath or Shower

12

Wash - hand basin

12

Toilet

12

Kitchen Sink

10

Storage Cupboards in bathroom/kitchen

10

Work surfaces for food preparation

10

Space or Water heating

12

Thermostatic radiator values

7

Insulation of pipes, water tank or cylinder

10

Loft Insulation

20

Cavity Wall Insulation

20

Draft proofing of external doors or windows

8

Double Glazing or other external widow replacement or secondary glazing

20

Rewiring or the provision of power and lighting or other electrical fittings (including smoke detectors)

15

Any object which improves the security of the dwelling house but excluding burglar alarms

10

Interior decoration does not qualify for compensation.

How do I get compensation?

You can apply for compensation when you know your tenancy is coming to an end. You should make your claim in the 28 days before your tenancy ends, or up to 14 days after it has ended. You must make your claim in writing, to us.

We will need to know:

  • your name and address
  • what improvements you have made
  • how much each improvement cost
  • the date the improvements were started and finished
  • a copy of the final bill or invoice from your builder
  • a copy of our original letter confirming the work was carried out satisfactorily

Compensation is only paid after your tenancy has ended. Any rent arrears or other debts owing at the end of your tenancy will be taken off any compensation that you are due.

No compensation will be paid if your tenancy is ended by a court order, you are granted a new tenancy of the same property, you abandon your property or purchase a share of it under the ETHOS or VPG schemes.

How much can I get?

The amount of compensation that you can be paid will depend on:

  • how much you originally spent (C)
  • the notional lifespan of the improvement (N)
  • how long the improvement has been done (Y)
  • the condition of that improvement

We work out how much you will be paid, using this sum: Cx (1-Y) - N

The full compensation will be paid if the improvement is deemed to be fit for purpose. However, if any costs are incurred to bring it up to the required standard they will be deducted from the compensation payable.

If the amount of compensation payable at the end of your tenancy is less than £50 then no compensation will be paid. Under the National Scheme if the compensation payable at the end of your tenancy is more than £3,000 then no compensation will be paid. We have relaxed this rule and compensation in these circumstances will be paid but will be subject to a maximum of £3,000.

Example 1

You Install a new bath

Cost to install

£500

You leave after 5 years

Notional life of improvement is 12 years

Calculation

£500 x (1-5)

-12)

= £500 x 0.58 = £290

Compensation

£290

Example 2

You install new kitchen cupboards

Cost to install

£1,500

You leave after 8 years

Notional life of improvement is 10 years

Calculation

£1,500 x (1 - 8 -10)

= £1,500 x 0.2 = £300

Compensation

£300

Example 3

You install Loft Insulation

Cost to install

£500

You leave after 19 years

Notional life of improvement is 20 years

Calculation

£500 x (1 - 19 -20)

= £500 x 0.05 = £25

Compensation

Nil ( sum is under £50)

Example 4

You install double glazing

Cost to install

£4,500

You leave after 2 years

Notional life of improvement is 20 years

Calculation

£4,500 x (1 - 2 -20)

= £4,500 x 0.09 = £4,050

Compensation under the National Scheme

Nil

Compensation under our scheme

£3,000

What if I don't agree with the compensation offered?

If you disagree with the sum you are being offered, please write to us within 28 days of receiving our notification. We will review our decision. If you disagree with our reviewed decision you have the right to use our complaints procedure. If you still disagree with our decision after the complaints procedure has been followed you have the right to appeal to the Independent Housing Ombudsman.

What happens if I move?

If you move, and want to take your improvements with you, no compensation would be paid, and you would have to make sure the property was returned to its original condition.

The right to compensation for improvements does not affect our current practice of assisting you by installing, at no charge, fixtures and fittings that you have bought. This would include security locks, security light, kitchen units, extractor fans and bathroom suites. Any compensation payable will be calculated on the original purchase costs of the goods only.

Our compensation scheme

In addition to the National Home Improvements Compensation Scheme, we run a scheme for tenants who want to carry out home improvements which are not covered under the national scheme.

Our scheme operates in the similar way to the national scheme - in order to qualify for compensation when you end your tenancy, you will need to follow the stages above. Work costing less than £500 will not be eligible.

The following (extra) home improvements will apply under our scheme:

  • In-curtilage parking
  • brick built garage
  • building an additional bedroom*
  • installing a conservatory
  • changes to an existing room would be excluded*

Any request for work not on the above list would be considered on a case by case basis.

Any work carried out would need to be approved by our Property Services department and would be inspected during and after its completion.

Any compensation paid at the end of your tenancy for work carried out under our scheme would be paid on a sliding scale reducing by 10% each year from the work being completed. As with the national scheme if the sum payable is less than £50 then no compensation will be paid. There will also be an upper limit to the compensation payment. This will be the higher of £3,000 and the sum received by us from the new resident. This may be the capital equivalent of the additional rent that is payable by the new resident.

Example

You Install in- curtilage parking

Cost to install

£2,000

You leave after 5 years

Calculation

£2,000

Less 10% x 5 years (50%)

£1,000

Your compensation

£1,000

Example

You erect a garage

Cost to install

£8,000

You leave after 4 years

Calculation

£8,000

Less 10% x 4 years (40%)

£3,200

Balance

£4,800

Additional rent charged to new resident

£180 per annum

Maximum compensation, higher of a)

£3,000 and

Sum justified by additional rent b)

£3,600

Compensation payable, the maximum amount

£3,600

Any money paid in compensation would be reduced by any costs involved in making good any defects with the improvement to ensure that it is 'fit for purpose'

Example

Details as above but garage is in poor state of repair and £800 is spent on making it ' fit for purpose'

Compensation payable is £3,600 less the £800 costs incurred i.e. £2,800