Compulsory purchase compensation doubles

11 July 2003
Compensation payments for those forced out of their homes by compulsory purchase by the government or local authorities are set to double.

Homeowners currently receive the current market value for their homes plus a variable premium as compensation for the inconvenience caused.

The Office of the Deputy Prime Minister has announced that the maximum and minimum compensation payouts to homeowners and tenants is to increase.

The Department for Transport's plans to widen several of Britain's busiest motorways could lead to compulsory purchase of homes near by.

The decision to double compensation follows a three-month public consultation about compensation levels. Compensation is supposed to be a further 10 per cent of the market value of a property, however minimum and maximum levels have not kept up with the recent housing boom.

From 1 September the maximum home loss payment to owner-occupiers will more than double to £31,000 from £15,000, while the minimum threshold for compensation will rise to £3,100 from £1,500.

Compensation to tenants will also rise from a flat rate payment of £1,500 to £3,100.

Planning Minister Keith Hill commented on the decision saying, "It is only fair and just that people are compensated when they have to leave their homes. The current thresholds for home loss compensation are outdated and it's important we make this change."