Leasehold Reform, Housing and Urban Development Act 1993

147 Right to compensation for improvements

After section 58 of the 1987 Act there shall be inserted the following section—

“58A Right to compensation for improvements

(1) For the purposes of this section—

(a) “qualifying improvement work” is improvement work which is prescribed as such by the Secretary of State and which is begun not earlier than the commencement of section 147 of the Leasehold Reform, Housing and Urban Development Act 1993;

(b) “qualifying person” is a person who is, at the time the tenancy comes to an end, the tenant of a landlord named in sub-paragraphs (i) to (iv) of section 61(2)(a); and—

(i) is the tenant by whom the qualifying work was carried out; or

(ii) is a tenant of a joint tenancy which existed at the time the improvement work was carried out; or

(iii) succeeded to the tenancy under section 52 on the death of the tenant who carried out the work and the tenancy did not cease to be a secure tenancy on his succession;

(c) a tenancy is terminated when—

(i) any of the circumstances of subsection (1) of section 46 apply and, in a case where the termination is under paragraph (c) or (f) of that subsection, the house which is the subject of the secure tenancy is vacated;

(ii) there is a change of landlord;

(iii) it is assigned to a new tenant.

(2) Where the tenant of a landlord specified in sub-paragraphs (i) to (iv) of section 61(2)(a) has carried out qualifying improvement work with the consent of that landlord under section 57, the qualifying person or persons shall on the termination of the tenancy be entitled to be paid compensation by the landlord in respect of the improvement work.

(3) Compensation shall not be payable if—

(a) the improvement is not of a prescribed description; or

(b) the tenancy comes to an end in prescribed circumstances; or

(c) compensation has been paid under section 58 in respect of the improvement; or

(d) the amount of any compensation which would otherwise be payable is less than such amount as may be prescribed,

and for the purposes of this subsection a prescribed description may be framed by reference to any circumstances whatever.

(4) Regulations under this section may provide that—

(a) any compensation payable shall be—

(i) determined by the landlord in such manner and taking into account such matters as may be prescribed; or

(ii) calculated in such manner and taking into account such matters as may be prescribed,

and shall not exceed such amount, if any, as may be prescribed; and

(b) the landlord may set off against any compensation payable under this section any sums owed to it by the qualifying person or persons.

(5) Where, in the case of two or more qualifying persons, one of them (“the missing person”) cannot be found—

(a) a claim for compensation under this section may be made by, and compensation may be paid to, the other qualifying person or persons; but

(b) the missing person shall be entitled to recover his share of any compensation so paid from that person or those persons.

(6) The Secretary of State may by regulations made under this section make such procedural, incidental, supplementary and transitional provisions as appear to him to be necessary or expedient, and may in particular—

(a) provide for the manner in which and the period within which claims for compensation under this section are to be made, and for the procedure to be followed in determining such claims;

(b) prescribe the form of any document required to be used for the purposes of or in connection with such claims; and

(c) provide for the determination of questions arising under the regulations.

(7) Regulations under this section—

(a) may make different provision with respect to different cases or descriptions of case, including different provision for different areas;

(b) shall be made by statutory instrument which (except in the case of regulations which are made only under subsection (6)(b)) shall be subject to annulment in pursuance of a resolution of either House of Parliament.”