(2 days, 22 hours ago)
Lords ChamberMy Lords, I thank the noble Lord, Lord Meston, for bringing us this amendment on compulsory purchase compensation rules. The amendment would ensure that home owners still receive home loss payments, even where they have failed to take action required by an improvement notice or order served on them, if that failure is due to the person’s poor health or other infirmity, or their inability to afford the cost of the action. A home loss payment is an additional amount of compensation paid to a person to recognise the inconvenience and disruption caused where a person is displaced from their home as a result of a CPO.
Under the current provisions in the Land Compensation Act 1973, where property owners have failed to comply with an improvement notice, their right to basic and occupier’s loss payments is excluded. There are, however, currently no similar exclusions for home loss payments. This Bill amends the 1973 Act to apply this exclusion to home loss payments also. However, where the exclusion of a home loss payment applies, owners would still be entitled to compensation for the market value of their property, disturbance compensation or other costs of the CPO process, such as legal or other professional costs. The provision introduced by this Bill will lower local authorities’ costs of using their CPO powers to bring sub-standard properties back into use as housing and ensure that the compensation regime is fair.
The amendment would ensure that, where an owner can show that they did not deliberately allow their property—subject to an improvement notice or order—to fall into disrepair or to remain derelict and that it was the result of ill health, other infirmity or a lack of financial resources, they can still make a claim for a home loss payment. We believe that it is for individual local authorities to determine whether it is appropriate to serve an improvement notice or order under the provisions listed in the Land Compensation Act, taking into account the personal circumstances of the property owner. For these reasons, I kindly ask the noble Lord to withdraw his amendment.
My Lords, I am grateful for both the supportive remarks from the Opposition Front Bench and the considered response from the Government. I would like to think about that—in particular, the wider implications of what is being proposed—more closely. On that basis, although I reserve the right to return on Report, I beg leave to withdraw my amendment.