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Compensation for improvements

Your legal rights

You have a legal right to compensation for improvements carried out after 1 April 1994. You must apply for this compensation within 21 days of your termination date.


This was 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 1 April 1994.

Tenants who qualify

To quality you have to at the time the tenancy comes to an end:

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

Exceptions to the scheme

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

  • You exercised your Right to Buy.
  • 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 1 April 1994.
  • You fail to make the claim within 21 days of the tenancy ending.

Qualifying improvements

your lcoal housing office will be able to provide you with a list of qualifying improvements.

Claiming Ccompensation

Claims must be made in writing during the statutory period, 28 days before and 21 days after the tenancy comes to an end.

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, not towards the cost of the following:

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

Please contact the housing office if you have any questions or require a form.

Page last updated:
13 Aug 2020

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