Land Compensation (Scotland) Act 1973

Home loss payments S

27 Right to home loss payment where person displaced from dwelling. S

(1) Where a person is displaced from a dwelling on any land in consequence of—

(a) the compulsory acquisition of an interest in the dwelling;

(b) the making, passing or acceptance of a housing order, resolution or undertaking in respect of the dwelling;

(c) where the land has been previously acquired by an authority possessing compulsory purchase powers or appropriated by a local authority and is for the time being held by the authority for the purposes for which it was acquired or appropriated, the carrying out of [F1 any improvement to the dwelling or of] redevelopment on the land,

[F2 (d) the carrying out of any improvement to the dwelling or of redevelopment on the land by a housing association which has previously acquired the land and at the date of the displacement is registered,]

[F3 (e) a requirement to remove from the building containing the dwelling in pursuance of [F4 section 29] of the M1 Building (Scotland) Act [F5 2003 (asp 8)] (dangerous buildings) or any other enactment which requires the demolition of the building on account of its condition,]

[F6 (f) an order for recovery of possession of the dwelling under section [F7 16(2) of the Housing (Scotland) Act 2001 (asp 10) on the ground set out in paragraph 10 of schedule 2] to that Act,]

he shall, subject to the provisions of this section and section 29 below, be entitled to receive a payment (hereafter referred to as a “home loss payment”) from

[F8 (i) where paragraph (a) above applies, the acquiring authority;

(ii) where paragraph (b) above applies, the authority who made the order, F9 . . . or accepted the undertaking; and

(iii) where paragraph (c) above applies, the authority carrying out the improvement or redevelopment; F9 . . .

(iv) where paragraph (d) above applies, the housing association carrying out the improvement or redevelopment.][F10 and]

[F11 (v) where paragraph (e) above applies the authority requiring the removal.]

[F12 (vi) where paragraph (f) above applies, the landlord.]

F13 [(2) A person shall not be entitled to a home loss payment unless the following conditions have been satisfied throughout the period of one year ending with the date of displacement—

(a) he has been in occupation of the dwelling, or a substantial part of it, as his only or main residence; and

(b) he has been in such occupation by virtue of an interest or right to which this section applies,

but, if those conditions are satisfied on the date of displacement, a payment (referred to in this section and sections 29 and 30 below as a “discretionary payment”) may be made to him of an amount not exceeding the amount to which he would have been entitled if he had satisfied those conditions throughout that period.]

(3) For the purposes of this section a person shall not be treated as displaced from a dwelling in consequence of the compulsory acquisition of an interest therein if he gives up his occupation thereof before the date on which the acquiring authority were authorised to acquire that interest, but, subject to that, it shall not be necessary for the acquiring authority to have required him to give up his occupation of the dwelling.

[F14 (3A) For the purposes of this section a person shall not be treated as displaced from a dwelling in consequence of [F15 (a)] the carrying out of any improvement to the dwelling [F16 or; (b) a requirement to remove as mentioned in subsection (1)(e) above] unless he is permanently displaced from it in consequence of the carrying out of the improvement in question [F17 or removal as the case may be.]]

(4) This section applies to the following interests and rights—

(a) any interest in the dwelling;

F18 [(b) a right to occupy the dwelling-house—

(i) as a statutory tenant within the meaning of the Rent (Scotland) Act 1984; or

(ii) under a contract to which Part VII of that Act applies or would apply if the contract or dwelling-house were not excluded by section 63(3) to (5) or under section 64(3) respectively of that Act; and]

[F19 (bb) a right to occupy the dwelling as a statutory assured tenant within the meaning of the Housing (Scotland) Act 1988;]

(c) a right to occupy the dwelling under a contract of employment.

F20 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) Where an authority possessing compulsory purchase powers acquire the interest of any person in a dwelling by agreement, then, in relation to any other person who is displaced from the dwelling in consequence of the acquisition, subsections (1) to (4) above shall have effect as if the acquisition were compulsory and the authority (if not authorised to acquire the interest compulsorily) had been so authorised on the date of the agreement.

(7) In this section “a housing order, resolution or undertaking” means—

(a) a demolition or closing order under Part [F21 VI] of the Housing (Scotland) Act [F21 1987][F22 or [F23 an HRA designation order under section 1 of the Housing (Scotland) Act 2006 (asp 1)]] ;

(b) a resolution under section [F24 125] of the said Act . . . F25 [F26 of 1987] ; . . . F27

(c) an undertaking accepted under section [F28 117(2)(a)] of the said Act . . . F29 [F26 of 1987] ; [F30 or

[F31 (d) a work notice under section 30 of the said Act of 2006.]

F32 . . .

[F33 (7A) In this section

“improvement” includes alteration and enlargement; and “redevelopment” includes a change of use]

(8) Where an interest in a dwelling is vested in trustees and a person beneficially entitled (whether directly or derivatively) under the trust is entitled or permitted by reason of his interest to occupy the dwelling, he shall be treated for the purposes of this section as occupying it by virtue of an interest in the dwelling.

(9) [F34 Subject to subsection (2) above,] this section applies if the date of displacement is on or after 17th October 1972 [F35 except that, where the displacement is in consequence of the circumstances referred to in subsection (1)(e) above, it applies if the date of displacement is on or after the coming into force of paragraph 12 of Schedule 2 to the M2 Housing (Financial Provisions) (Scotland) Act 1978.]]

Textual Amendments

F1 Words inserted by Housing Act 1974 (c. 44), s. 130, Sch. 13 para. 42(1)(a)

F2 S. 27(1)(d) substituted by Housing Rents and Subsidies (Scotland) Act 1975 (c. 28), Sch. 3 para. 9(1)

F3 S. 27(1)(e) inserted by Housing (Financial Provisions) (Scotland) Act 1978 (c. 14), Sch. 2 para. 12(a)(i)

F4 Words in s. 27(1)(e) substituted (1.5.2005) by Building (Scotland) Act 2003 (asp 8), s. 59(1), sch. 6 para. 7(2)(a) (with s. 53); S.S.I. 2004/404, art. 2(1)

F5 Words in s. 27(1)(e) substituted (1.5.2005) by Building (Scotland) Act 2003 (asp 8), s. 59(1), sch. 6 para. 7(2)(b) (with s. 53); S.S.I. 2004/404, art. 2(1)

F6 S. 27(1)(f) inserted by Housing (Scotland) Act 1986 (c. 65, SIF 61), s. 20(2)(a)

F7 Words in s. 27(1)(f) substituted (30.9.2002) by 2001 asp 10, s. 112, Sch. 10 para. 3(a); S.S.I. 2002/321, art. 2, Sch. (subject to transitional provisions and savings in arts. 3-5)

F8 Paras. (i) to (iv) substituted for words by Housing Act 1974 (c. 44), s. 130, Sch. 13 para. 42(1)(b)

F9 Words in s. 27(1)(ii) and 'and' following para. (iii) repealed (25.9.1991) (subject to limitation referred to in S.I. 1991/2092, art. 4(2), Sch. 2 Pt. II) by Planning and Compensation Act 1991 (c. 34, SIF 28:2), s. 79, 84(6), Sch. 17, Pt.II, para. 20(2), Sch. 19, Pt. IV (with s. 84(5)); S.I. 1991/2092, art. 3

F10 Word after s. 27(1)(iv) inserted (25.9.1991) (subject to limitation referred to in S.I. 1991/2092, art. 4(2), Sch. 2, Pt. II) by Planning and Compensation Act 1991 (c. 34, SIF 28:2), s. 79, Sch. 17, Pt. II, para. 20(2)(c) (with s. 84(5)); S.I. 1991/2092, art. 3

F11 Para. (v) added by Housing (Financial Provisions) (Scotland) Act 1978 (c. 14), Sch. 2 para. 12(a)(ii)

F12 S. 27(1)(vi) inserted by Housing (Scotland) Act 1986 (c. 65, SIF 61), s. 20(2)(b)

F13 S. 27(2) substituted (25.9.1991) by Planning and Compensation Act 1991 (c. 34, SIF 28:2), s. 71(1)(9) (with s. 84(5)); S.I. 1991/2092, art. 3

F14 S. 27(3A) inserted by Housing Act 1974 (c. 44), s. 130, Sch. 13 para. 42(2)

F15 Word inserted by Housing (Financial Provisions) (Scotland) Act 1978 (c. 14), Sch. 2 para. 12(b)(i)

F16 Words inserted by Housing (Financial Provisions) (Scotland) Act 1978 (c. 14), Sch. 2 para. 12(b)(ii)

F17 Words added by Housing (Financial Provisions) (Scotland) Act 1978 (c. 14), Sch. 2 para. 12(b)(iii)

F18 S. 27(4)(b) substituted (25.9.1991) (subject to limitation referred to in S.I. 1991/ 2092, art. 4(2), Sch. 2, Pt. II) by Planning and Compensation Act 1991 (c. 34, SIF 28:2), s. 79, Sch. 17, Pt. II, para. 20(3) (with s. 84(5); S.I. 1991/2092, art. 3

F19 S. 27(4)(bb) inserted by Housing (Scotland) Act 1988 (c. 43, SIF 61), s. 72(2), Sch. 9 para. 1

F20 S. 27(5) repealed (25.9.1991) (subject to limitation referred to in S.I. 1991/2092, art. 4(2), Sch. 2, Pt. II) by Planning and Compensation Act 1991 (c. 34, SIF 28:2), ss. 71(2)(9), 84(6), Sch. 19, Pt. IV (with s. 84(5); S.I. 1991/2092, art. 3

F21 Words substituted by Housing (Scotland) Act 1987 (c. 26, SIF 61), ss. 335, 339(2), Sch. 23 para. 19(2)

F22 Words added by Housing (Financial Provisions) (Scotland) Act 1978 (c. 14), Sch. 2 para. 39

F23 Words in s. 27(7)(a) substituted (1.4.2009) by Housing (Scotland) Act 2006 (asp 1), s. 195(3), sch. 6 para. 3(a) (with s. 193); S.S.I. 2009/122, art. 3 (with art. 7)

F24 Words substituted by Housing (Scotland) Act 1987 (c. 26, SIF 61), ss. 335, 339(2), Sch. 23 para. 19(2)(b)

F25 Words repealed by Housing (Scotland) Act 1987 (c. 26, SIF 61), ss. 335, 339(2), Sch. 23 para. 19(2)(b)

F26 Words in s. 27(7)(b)(c) inserted (1.4.2009) by Housing (Scotland) Act 2006 (asp 1), s. 195(3), sch. 6 para. 3(b) (with s. 193); S.S.I. 2009/122, art. 3 (with art. 7)

F27 Word repealed by Housing (Scotland) Act 1974 (c. 45), Sch. 5

F28 Words substituted by Housing (Scotland) Act 1987 (c. 26, SIF 61), ss. 335, 339(2), Sch. 23 para. 19(2)(c)

F29 Words repealed by Housing (Scotland) Act 1987 (c. 26, SIF 61), ss. 335, 339(2), Sch. 23 para. 19(2)(c)

F30 S. 27(7)(d) inserted by Housing (Scotland) Act 1974 (c. 45, SIF 61), Sch. 3 para. 48

F31 S. 27(7)(d) substituted (1.4.2009) by Housing (Scotland) Act 2006 (asp 1), s. 195(3), sch. 6 para. 3(c) (with s. 193); S.S.I. 2009/122, art. 3 (with art. 7)

F32 Words repealed by Housing Act 1974 (c. 44), s. 130, Sch. 15

F33 S. 27(7A) inserted by Housing Act 1974 (c. 44), s. 130, Sch. 13 para. 42(3)

F34 Words inserted by Housing Rents and Subsidies (Scotland) Act 1975 (c. 28), Sch. 3 para. 9(3)

F35 Words added by Housing (Financial Provisions) (Scotland) Act 1978 (c. 14, SIF 61), Sch. 2 para. 12(c)

Marginal Citations

M1 1959 c. 24.

M2 1978 c. 14.

[27A F36 Spouses having statutory occupancy rights. S

(1) This section applies where, by reason of the entitlement of one spouse (“A”) to occupy a dwelling by virtue of an interest or right to which section 27 above applies, the other spouse (“B”) acquires occupancy rights (within the meaning of the M3 Matrimonial Homes (Family Protection) (Scotland) Act 1981).

(2) So long as—

(a) those occupancy rights continue;

(b) B is in occupation of the dwelling and A is not; and

(c) B is not, apart from this section, treated as occupying the dwelling by virtue of an interest or right to which that section applies,

B shall be treated for the purposes of that section as occupying the dwelling by virtue of such an interest (but not an owner’s interest within the meaning of section 28 below).

(3) References in this section to a dwelling include a reference to a substantial part of it.]

Textual Amendments

F36 S. 27A inserted (25.9.1991) (subject to limitation referred to in S.I. 1991/2092, art. 4(1), Sch. 2 Pt. II) by Planning and Compensation Act 1991 (c. 34, SIF 28:2), s. 72 (with s. 84(5)); S.I. 1991/2092, art. 3

Marginal Citations

M3 1981 c. 59.

[28 F37 Amount of home loss payment. S

(1) In the case of a person who on the date of displacement is occupying, or is treated for the purposes of section 27 above as occupying, the dwelling by virtue of an interest in it which is an owner’s interest, the amount of the home loss payment shall be 10 per cent. of the market value of his interest in the dwelling or, as the case may be, the interest in the dwelling vested in trustees, subject to a maximum of £15,000 and a minimum of £1,500.

(2) In any other case, the amount of the home loss payment shall be £1,500.

(3) For the purposes of this section and section 29 below the market value of an interest in a dwelling—

(a) in a case where the interest is compulsorily acquired, is the amount assessed for the purposes of the acquisition as the value of the interest; and

(b) in any other case, is the amount which, if the interest were being compulsorily acquired in pursuance of a notice to treat served on the date of displacement, would be assessed for the purposes of the acquisition as the value of the interest,

and any dispute as to the amount referred to in paragraph (b) above shall be determined by the Lands Tribunal.

(4) In determining for the purposes of this section and section 29 below the market value of an interest in a dwelling, the dwelling shall be taken to include any garden, yard, outhouses and appurtenances belonging to or usually enjoyed with that dwelling.

(5) The Secretary of State may from time to time by regulations prescribe a different maximum or minimum for the purposes of subsection (1) above and a different amount for the purposes of subsection (2) above.

(6) The power to make regulations under subsection (5) above shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(7) In this section “owner’s interest” means the interest of a person who is an owner as defined in section 45(1) of the Land Compensation (Scotland) Act 1963.]

Textual Amendments

F37 S. 28 substituted (25.9.1991) by Planning and Compensation Act 1991 (c. 34, SIF 28:2), s. 71(3) (with s. 84(5)); S.I. 1991/2092, art.3

29 Supplementary provisions about home loss payments. S

[F38 (1) No home loss payment or discretionary payment shall be made except on a claim in writing made by the person entitled thereto (“the claimant”) giving such particulars as the authority responsible for making the payment may reasonably require for the purpose of determining whether the payment should be made and, if so, its amount.

(2) Where a person is entitled to a home loss payment, the payment shall be made on or before the latest of the following dates—

(a) the date of displacement;

(b) the last day of the period of three months beginning with the making of the claim; and

(c) where the amount of the payment is to be determined in accordance with section 28(1) above, the day on which the market value of the interest in question is agreed or finally determined.

(2A) Where the amount of the payment is to be determined in accordance with section 28(1) above—

(a) the acquiring authority may at any time make a payment in advance; and

(b) if, on the later of the dates referred to in subsection (2)(a) and (b) above, the market value of the interest in question has not been agreed or finally determined, the acquiring authority shall make a payment in advance (where they have not already done so).

(2B) The amount of the payment in advance shall be the lesser of—

(a) the maximum amount for the purposes of section 28(1) above,

(b) 10 per cent. of the amount agreed to be the market value of the interest in question or, if there is no such agreement, 10 per cent. of the acquiring authority’s estimate of that amount.

(2C) Where the amount of a payment in advance differs from the amount of the home loss payment, the shortfall or excess shall be paid by or, as the case may be, repaid to the acquiring authority when the market value of the interest in question is agreed or finally determined.

(3) Where the claimant has satisfied, throughout any period, the conditions mentioned in section 27(2) above, that period shall be treated for the purposes of that subsection as including any immediately preceding period throughout which—

(a) he has resided in the dwelling as his only or main residence but without satisfying those conditions, and

(b) another person or other persons have satisfied those conditions,

and references in this subsection and subsection (3A) below to a dwelling include a reference to a substantial part of it.

(3A) Where the claimant has satisfied, throughout any period, the conditions mentioned in section 27(2) above, that period (or that period as extended under subsection (3) above) shall be treated for the purposes of section 27(2) above as including any immediately preceding period, or successive periods, throughout which he satisfied the conditions mentioned in section 27(2) above in relation to another dwelling or, as the case may be, other dwellings (applying subsection (3) above to determine the length of any period or periods).]

(4) [F39 Where a person (“the deceased”) entitled to a home loss payment dies without having claimed it, a claim to the payment may be made] by any person, not being a person under the age of eighteen, who—

(a) throughout a period of not less than [F40 one year] ending with the date of displacement of the deceased, has resided in the dwelling, or a substantial part of it, as his only or main residence; and

(b) is entitled to benefit by virtue of—

(i) a testamentary disposition or any other deed with testamentary effect taking effect on, or the law of intestate succession as applied to, the death of the deceased; or

(ii) a right tojus relicti, jus relictaeorlegitimout of the deceased’s estate.

(5) Where the claimant has successively been in occupation of or resided in different dwellings in the same building, being dwellings consisting of a room or rooms not constructed or structurally adapted for use as a separate dwelling, section 27(2) above and subsections [F41 (3) to (4)] above shall have effect as if those dwellings were the same dwelling.

(6) Where there are two or more persons entitled to make a claim to a home loss payment in respect of the same dwelling (whether by virtue of joint occupation or of subsection (4) above) the payment to be made on each claim shall be equal to the whole amount of the home loss payment divided by the number of such persons.

(7) Where an interest in a dwelling is acquired by agreement by an authority possessing compulsory purchase powers, the authority may, in connection with the acquisition, make to the person from whom the interest is acquired a payment corresponding to any home loss payment [F42 or discretionary payment] which they would be required [F42 or authorised] to make to him if the acquisition were compulsory and the authority had been authorised to acquire that interest before he gave up occupation of the dwelling.

[F43 (7A) Section 6 of the Prescription and Limitation (Scotland) Act 1973 (extinction of obligations by prescriptive periods of five years) shall apply to an obligation to make a home loss payment, and in relation to such obligation the appropriate date for the purposes of subsection (1) of the said section 6 shall be the date of displacement.]

[F44 (7AA) If a landlord recovers possession of a dwelling by agreement—

(a) after serving notice under section [F45 14 of the Housing (Scotland) Act 2001 (asp 10) on the tenant specifying the ground set out in paragraph 10 of schedule 2]to that Act; or

(b) where, but for that agreement, it would have served such notice on him specifying that ground,

it may, in connection with the recovery, make to him a payment corresponding to any home loss payment [F42 or discretionary payment] which it would be required [F42 or authorised] to make to him if the recovery were by order under section [F46 16(2)] of that Act.]

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F47

Textual Amendments

F38 S. 29(1)-(3A) substituted (25.9.1991) for s. 29(1)-(3) by Planning and Compensation Act 1991 (c. 34, SIF 28:2), s. 71(4)(9) (with s. 84(5)); S.I. 1991/2092, art. 3

F39 Words substituted by Local Government, Planning and Land Act 1980 (c. 65), s. 114(3)(6) except in cases where the date of displacement was more than 6 months before 13.11.1980

F40 Words in s. 29(4) substituted (25.9.1991) by Planning and Compensation Act 1991 (c. 34, SIF 28:2), s. 71(5)(9) (with s. 84(5)); S.I. 1991/2092, art. 3

F41 Words in s. 29(5) substituted (25.9.1991) by Planning and Compensation Act 1991 (c. 34, SIF 28:2), s. 71(6)(9) (with s. 84(5)); S.I. 1991/2092, art. 3

F42 Words in s. 29(7)(7AA) inserted (25.9.1991) by Planning and Compensation Act 1991 (c. 34, SIF 28:2), s. 71(7)(9) (with s. 84(5)); S.I. 1991/2092, art. 3

F43 S. 29(7A) inserted by Local Government, Planning and Land Act 1980 (c. 65), s. 114(5)(6) except in cases where the date of displacement was more than 6 months before 13.11.1980

F44 S. 29(7AA) inserted by Housing (Scotland) Act 1986 (c. 65, SIF 61), s. 20(3)

F45 Words in s. 29(7AA) substituted (30.9.2002) by 2001 asp 10, s. 112, Sch. 10 para. 3(b)(i); S.S.I. 2002/321, art. 2, Sch. (subject to transitional provisions and savings in arts. 3-5)

F46 Word in s. 29(7AA) substituted (30.9.2002) by 2001 asp 10, s. 112, Sch. 10 para. 3(b)(ii); S.S.I. 2002/321, art. 2, Sch. (subject to transitional provisions and savings in arts. 3-5)

F47 S. 29(8) repealed by Local Government, Planning and Land Act 1980 (c. 65), Sch. 34 Pt. XII

30 Home loss payments for certain caravan dwellers. S

(1) Sections 27 to 29 above shall, so far as applicable, have effect in relation to a person residing in a caravan on a caravan site who is displaced from that site as they have effect in relation to a person displaced from a dwelling on any land but shall so have effect subject to the following modifications.

(2) No home loss payment [F48 or discretionary payment] shall be made to any person by virtue of this section except where no suitable alternative site for stationing a caravan is available to him on reasonable terms.

(3) Subsection (1) of section 27 above shall have effect as if for the words preceding paragraph (a) there were substituted the words “ Where a person residing in a caravan on a caravan site is displaced from that site in consequence of ” and subsection (2) of that section shall have effect as if for paragraphs (a) and (b) there were substituted—

F49 “(a) he has been in occupation of the caravan site by using a caravan stationed on it as his only or main residence; and

(b) he has been in such occupation of the site by virtue of an interest or right to which this section applies”

[F50 (4) Section 28 above shall have effect as if the references to a person occupying a dwelling by virtue of an interest in it and to his interest in the dwelling were to a person occupying a caravan site by virtue of an interest in it and to that interest.]

(5) Section 29 above shall have effect—

[F51 (a) as if in subsections (3) and (3A) the references to a dwelling were to a caravan site;]

(b) as if in subsection (4) for the words “resided in the dwelling, or a substantial part of it” there were substituted the words “resided in a caravan on the caravan site”; and

(c) as if for subsection (5) there were substituted—

“(5) Where any land comprises two or more caravan sites and the claimant has successively been in occupation of or resided in a caravan on different caravan sites on that land, section 27(2) above and subsections [F52 (3) to (4)] above shall have effect as if those sites were the same site”.

(6) Sections 27 to 29 above shall have effect as if in any provision not modified as aforesaid for any reference to a dwelling or land there were substituted a reference to a caravan site.

(7) In this section “caravan site” means land on which a caravan is stationed for the purpose of human habitation and land which is used in conjunction with land on which a caravan is so stationed.

Textual Amendments

F48 Words in s. 30(2) inserted (25.9.1991) by Planning and Compensation Act 1991 (c. 34, SIF 28:2), s. 71(8)(a)(9) (with s. 84(5)); S.I. 1991/2092, art. 3

F49 Words in s. 30(3) substituted (25.9.1991) by Planning and Compensation Act 1991 (c. 34, SIF 28:2), s. 71(8)(b)(9) (with s. 84(5)); S.I. 1991/2092, art.3

F50 S. 30(4) (which was repealed (1.4.1989) by S.I. 1989/47, reg. 3) is expressed to be substituted (25.9.1991) by Planning and Compensation Act 1991 (c. 34, SIF 28:2), s. 71(8)(c)(9) (with s. 84(5)); S.I. 1991/2092, art. 3

F51 S. 30(5)(a) substituted (25.9.1991) by Planning and Compensation Act 1991 (c. 34, SIF 28:2), s. 71(8)(d)(9) (with s. 84(5)); S.I. 1991/2092, art. 3

F52 Words in s. 30(5)(c) substituted (25.9.1991) by Planning and Compensation Act 1991 (c. 34, SIF 28:2), s. 71(8)(9) (with s. 84(5)); S.I. 1991/2092, art. 3