Compensation for clearance

The Council pays homeowners the market value for their properties. It may also make additional compensation payments to the owner or tenant called a Home Loss/Loss Payment and Disturbance Allowance.

The Home Loss Payment is set by Central Government and is currently a minimum of £4,700 or 10% of the property’s market value for owner-occupiers (subject to a maximum of £47,000).

Tenants may be eligible to receive a Home Loss Payment of £4,700 if they have lived in the property for at least 12 months. In the case of private landlords, a Loss Payment equating to 7.5% of the property’s value may be payable.

Residents may also receive a Disturbance Payment to cover the reasonable costs in moving house, including such things as fitting carpets and curtains, removal costs and legal fees.

Additional financial support may also be appropriate, including a Relocation Loan for some owners needing to bridge any gap between the compensation received and the cost of buying an alternative house elsewhere.