Housing and Regeneration Act 2008

Compensation E+W

236 Overview E+W

This group of sections allows the regulator to award compensation to a victim of a failure on the part of a [F1 private registered provider].

Textual Amendments

F1 Words in s. 236 substituted (1.4.2010) by The Housing and Regeneration Act 2008 (Registration of Local Authorities) Order 2010 (S.I. 2010/844), art. 1(2), Sch. 1 para. 60

Commencement Information

I1 S. 236 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

237 Grounds for award E+W

(1) The regulator may require a [F2 private registered provider] to pay compensation if the regulator is satisfied that—

(a) [F3 any] of the following cases applies, and

(b) the award of compensation is appropriate (whether or not as part of a response including other action).

(2) Case 1 is where the registered provider has failed to meet a standard under section [F4 193, 194 or 194C].

(3) Case 2 is where the registered provider has given an undertaking under section 125 and failed to comply with it.

F5 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F6 (5) Case 4 is where the registered provider has failed to comply with a performance improvement plan notice.

(6) Case 5 is where the registered provider has failed to comply with the duty in section 218B(4) (duty to provide copy of performance improvement plan).]

Textual Amendments

F2 Words in s. 237(1) substituted (1.4.2010) by The Housing and Regeneration Act 2008 (Registration of Local Authorities) Order 2010 (S.I. 2010/844), art. 1(2), Sch. 1 para. 61

F3 Word in s. 237(1)(a) substituted (1.4.2024) by The Social Housing (Regulation) Act 2023 (Consequential and Miscellaneous Amendments) Regulations 2024 (S.I. 2024/399), reg. 1(6), Sch. 1 para. 1(7); S.I. 2024/437, reg. 2(r)

F4 Words in s. 237(2) substituted (20.9.2023) by Social Housing (Regulation) Act 2023 (c. 36), ss. 22(5), 46(3); S.I. 2023/1001, reg. 2(j)

F5 S. 237(4) omitted (20.9.2023) by virtue of Social Housing (Regulation) Act 2023 (c. 36), s. 46(3), Sch. 5 para. 29; S.I. 2023/1001, reg. 2(y)(viii) (with reg. 3)

F6 S. 237(5)(6) inserted (1.4.2024) by Social Housing (Regulation) Act 2023 (c. 36), ss. 31(5), 46(3); S.I. 2024/437, reg. 2(r)

Commencement Information

I2 S. 237 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

238 Nature E+W

(1) Compensation in respect of a failure may be awarded to one or more persons who have suffered as a result of the failure.

(2) But an award may be made only to—

(a) a specified tenant of social housing provided by the registered provider,

(b) each member of a specified class of tenants of social housing provided by the registered provider, or

(c) each member of the class of tenants of social housing provided by the registered provider.

Commencement Information

I3 S. 238 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

239 Housing ombudsman compensation E+W

(1) The regulator may not award compensation to a person in respect of a matter if [F7 a housing ombudsman] has awarded compensation to the person in respect of the matter.

F8 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F7 Words in s. 239(1) substituted (20.9.2023) by Social Housing (Regulation) Act 2023 (c. 36), s. 46(3), Sch. 5 para. 30; S.I. 2023/1001, reg. 2(y)(viii)

F8 S. 239(2) repealed (1.4.2013 for E.) by Localism Act 2011 (c. 20), ss. 180(2), 240(2), Sch. 25 Pt. 28 (with s. 180(5)); S.I. 2013/722, art. 2(b)

Commencement Information

I4 S. 239 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

240 Award E+W

(1) Compensation is awarded by the regulator giving notice (a “compensation notice”) to—

(a) the registered provider, and

(b) the person to be compensated.

(2) The notice must specify—

(a) the grounds on which the compensation is awarded,

(b) the amount of the compensation,

(c) the person to be compensated,

(d) any interest or additional compensation which, by virtue of section 244(2), is payable in the event of late payment, and

(e) a period within which it must be paid.

(3) The notice may require the registered provider to publish information about the compensation award in a specified manner.

(4) The notice must explain the effect of sections 244(1) and (3) and 245.

(5) The Secretary of State—

(a) shall make regulations about the period under subsection (2)(e),

(b) may make other regulations about the form and content of a compensation notice, and

(c) may make regulations about the manner in which a compensation notice is given.

Commencement Information

I5 S. 240(1)-(4) in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

I6 S. 240(5) in force at 1.4.2009 for specified purposes by S.I. 2009/803, art. 7(c)

I7 S. 240(5) in force at 1.4.2010 in so far as not already in force by S.I. 2010/862, art. 2 (with Sch.)

241 Impact E+W

(1) This section applies when the regulator is considering—

(a) whether to award compensation, or

(b) the amount of compensation to award.

(2) The regulator must take account of any information available to it about the financial situation of the registered provider.

(3) The regulator must consider the likely impact of the compensation on the registered provider's ability to provide services.

(4) In particular, the regulator must aim to avoid—

(a) jeopardising the financial viability of the registered provider,

(b) preventing the registered provider from honouring financial commitments, or

(c) preventing the registered provider from taking action to remedy the matters on the grounds of which the compensation might be awarded.

Commencement Information

I8 S. 241 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

242 Warning E+W

(1) Before giving a compensation notice to a [F9 private registered provider] the regulator must give the provider a notice (a “pre-compensation warning”)—

(a) specifying grounds on which the regulator thinks compensation could be awarded,

(b) warning the provider that the regulator is considering awarding compensation to a specified person,

(c) including any indication that the regulator is able to give of the likely amount of any compensation, and

(d) explaining the effect of sections 243, 244(1) and (3) and 245.

(2) Before giving a pre-compensation warning the regulator must consult the [F10 housing ombudsman] for the scheme of which the registered provider is a member.

(3) If the regulator gives a pre-compensation warning it must send a copy to—

F11 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F12 (za) the HCA,]

[F13 (aa) the Greater London Authority (if the pre-compensation warning is given to a registered provider who owns land in Greater London), and]

(b) any other persons it thinks appropriate.

(4) For the purposes of subsection (3)(b) the regulator shall consider, in particular, any person who provided information as a result of which the pre-compensation warning is given.

(5) A pre-compensation warning must—

(a) refer to section 125 (voluntary undertaking), and

(b) indicate whether or to what extent the regulator would accept a voluntary undertaking instead of, or in mitigation of, awarding compensation.

(6) A pre-compensation warning may be combined with notice under one or more of sections 230, 248, 250 and 252.

Textual Amendments

F9 Words in s. 242(1) substituted (1.4.2010) by The Housing and Regeneration Act 2008 (Registration of Local Authorities) Order 2010 (S.I. 2010/844), art. 1(2), Sch. 1 para. 62

F10 Words in s. 242(2) substituted (20.9.2023) by Social Housing (Regulation) Act 2023 (c. 36), s. 46(3), Sch. 5 para. 31; S.I. 2023/1001, reg. 2(y)(viii)

F11 S. 242(3)(a) repealed (1.4.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 16 para. 49, Sch. 25 Pt. 26; S.I. 2012/628, art. 6(i)(j) (with arts. 9 11 14 15 17)

F12 S. 242(3)(za) inserted (1.10.2018) by The Legislative Reform (Regulator of Social Housing) (England) Order 2018 (S.I. 2018/1040), art. 1(2), Sch. para. 32 (with Pt. 4)

F13 S. 242(3)(aa) inserted (1.4.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 19 para. 61; S.I. 2012/628, art. 6(i) (with arts. 9 11 14 15 17)

Commencement Information

I9 S. 242 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

243 Representations E+W

(1) A pre-compensation warning must specify a period during which the registered provider may make representations to the regulator.

(2) The period must—

(a) be a period of at least 28 days, and

(b) begin with the date on which the registered provider receives the pre-compensation warning.

(3) Representations may address—

(a) whether compensation should be awarded;

(b) the amount of any compensation that may be awarded.

(4) After the end of the period specified under subsection (1) the regulator shall—

(a) consider any representations made, and

(b) decide whether to award compensation.

Commencement Information

I10 S. 243 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

244 Enforcement E+W

(1) Compensation shall be treated as a debt owed to the person to whom it is awarded.

(2) The Treasury may make regulations authorising the regulator—

(a) to award interest on compensation not paid during the period specified under section 240(2)(e);

(b) to award additional compensation where compensation is not paid during that period.

(3) Interest and additional compensation shall be treated as compensation.

(4) Regulations under subsection (2)(a) may provide for an interest rate to be—

(a) set by a specified person, or

(b) determined in accordance with the regulations.

Commencement Information

I11 S. 244(1)(3) in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

I12 S. 244(2)(4) in force at 1.4.2009 for specified purposes by S.I. 2009/803, art. 7(d)

I13 S. 244(2)(4) in force at 1.4.2010 in so far as not already in force by S.I. 2010/862, art. 2 (with Sch.)

245 Appeal E+W

[F14 (1)] A [F15 private registered provider] who is given a compensation notice may appeal to the High Court against—

( a) the award of compensation,

(b) its amount, or

(c) both.

[F16 (2) An appeal under this section must be brought within the period of 28 days beginning with the day on which the registered provider is given the compensation notice.

(3) The requirement to pay the compensation is suspended during the appeal period.

(4) Regulations under section 244(2) may not authorise the regulator to—

(a) award interest in respect of the appeal period, or

(b) award additional compensation during that period.

(5) The “appeal period” means—

(a) where an appeal is brought, the period beginning with the day on which the compensation notice is given and ending with the day on which the appeal is finally determined or withdrawn, and

(b) otherwise, the period during which an appeal could be brought.]

Textual Amendments

F14 S. 245 renumbered as s. 245(1) (20.9.2023) by Social Housing (Regulation) Act 2023 (c. 36), s. 46(3), Sch. 4 para. 8(a); S.I. 2023/1001, reg. 2(x)

F15 Words in s. 245 substituted (1.4.2010) by The Housing and Regeneration Act 2008 (Registration of Local Authorities) Order 2010 (S.I. 2010/844), art. 1(2), Sch. 1 para. 63

F16 S. 245(2)-(5) inserted (20.9.2023) by Social Housing (Regulation) Act 2023 (c. 36), s. 46(3), Sch. 4 para. 8(b); S.I. 2023/1001, reg. 2(x)

Commencement Information

I14 S. 245 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)