POLICY
Housing Management
ESTATE REDEVELOPMENT HOME LOSS POLICY
Version
1
Date
January 2010
Reason for change
First Group Policy
2
January 2014
Policy review
Authorised by
Hazel Warwick
Development Director
Hazel Warwick Director
Asset Management
Author: Sheila Jessett/Heather Grant Owner: Director Asset Management
Review Date: January 2017
CONTENTS
PAGE
1
PURPOSE
2
2
SCOPE
2
3
RESPONSIBILITIES
2
4
DEFINITIONS
2
5
HOUSING ALLOCATIONS
3
6
HOUSING OPTIONS – First Wessex’s Residents
4
7
HOUSING OPTIONS - First Wessex’s Shared Owners
5
8
HOUSING OPTIONS - Owner Occupiers
5
9
HOUSING OPTIONS - Owners who are landlords
6
10
HOUSING OPTIONS - Assured Shorthold Tenants
6
11
IDENTIFYING AND SUPPORTING RESIDENTS
7
12
COMPENSATION AND DISTURBANCE PAYMENTS
7
13
HOME LOSS PAYMENTS
8
14
DISTURBANCE PAYMENTS
9
15
RIGHT OF APPEAL
10
16
MEDIATION
11
17
POSSESSION ACTION, RENT ARREARS and DEBTS FIRST WESSEX
RESIDENTS
11
18
LINKS WITH OTHER POLICIES
11
19
MONITORING AND REVIEW PROCESS
12
20
FEEDBACK
12
21
CONFIDENTIALITY AND ACCESS TO INFORMATION
12
22
COMMUNICATION AND REVIEW PROCESS
12
1.
PURPOSE
1.1
The purpose of this policy is to set out the re-housing options for current residents if
they lose their existing home due to a housing re-development programme initiated
by First Wessex (FW). The policy sets out the range of possible re-housing options that
could apply. However, the specific options which will be made available for any
particular development scheme will be agreed by the Project Steering Group. This will
involve consideration of the financial viability and deliverability of the project, the
outputs from consultation in accordance with the FW Development and Estate
Regeneration Consultation Policy and will be in accordance with the FW’s Standing
Orders and Scheme of Delegation.
1.2
The policy also confirms the circumstances in which compensation and disturbance
payments are paid to residents as a result of being displaced from their homes, either
permanently or temporarily, due to a planned redevelopment.
1.3
The Policy is built on the following principles; To be easily understood by all residents
 To be fair, transparent and promote equality of opportunity.
 To assess priority on the basis of need
 To reflect the principle of maximising choice wherever possible
 To comply with the requirements of partners including local authority partners
 To comply with current legal and regulatory requirements
2.
SCOPE
2.1
This policy applies to all redevelopment programmes, where any residents may lose
their homes permanently as a result. The policy does not apply to residents who are
required to vacate their homes on a temporary basis in these circumstances the
Temporary Homeloss Policy refers.
2.2
The Policy will be complemented by a Re-housing Options Procedure agreed for each
and every redevelopment scheme by the Project Steering Group for that scheme.
3.
RESPONSIBILITIES
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3.1
FW’s Heads of Operations and Heads of Development are responsible for compliance
with the policy, and the Development Project Officers and Lettings Manager are
responsible for its day to day operation.
4.
DEFINITIONS
4.1
FW Residents
Residents, who occupy a FW dwelling and have been granted an Assured Tenancy,
Secure Tenancy or Starter Tenancy. A starter tenancy is an Assured Shorthold Tenancy
which is offered to new tenants (not existing tenants transferring to alternative FW
accommodation) for a limited ‘probationary’ period of time, usually a year. After the
probationary period, if a tenancy is deemed to have been conducted satisfactorily, it
will automatically become fully assured on the first anniversary of the tenancy start
date. Starter Tenancy Policy refers.
4.2
FW Shared Owners
Residents occupying a dwelling (where FW are the freeholder or leaseholder) on a
leasehold or sub leasehold basis with equity interest in the dwelling of less than 100%.
4.3
Shared Ownership Criteria
FW’s housing need and financial criteria that must be met to purchase a home on a
shared ownership basis.
4.4
Owner Occupiers
Owner occupiers are residents who own their homes, with or without a mortgage, as
freeholders or leaseholders and live in the redevelopment area.
4.5
Owners who are Landlords
For owners who own one or more property on the redevelopment site and let the
property (properties) out to tenant(s).
4.6
Assured Shorthold Tenants
Tenants who are Assured Shorthold Tenants and the property is owned or leased by
FW.
5.
5.1
HOUSING ALLOCATIONS
The following key issues will be considered when homes are allocated -
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To ensure the allocation process is fair, transparent, promotes equality of
opportunity and is easily understood, Equality and Diversity Policy refers.
To ensure offers of tenancies are made to eligible applicants and in accordance
with the Allocations, Lettings and Voids Policy, Housing Occupation Statement
and Tenancy Policy
The need to create balanced and sustainable communities
To ensure applicants will have the means to pay the rent and any other charges
including should they become reliant in full or in part on welfare benefits .
To consider as far as practically possible, the personal circumstances existing
residents whilst taking account of their housing need (as defined by the Housing
Occupation Statement) and availability of housing on and away from the
redevelopment site
The viability and effective implementation of the development programme
5.2
Priority will be given to balancing the housing needs of both existing residents and new
housing applicants, particularly to maximise the number of households whose housing
need can be met following the redevelopment of an estate. In addition, any breaches
of tenancy will be taken into consideration before any alternative accommodation is
offered.
6.
HOUSING OPTIONS – FW Residents
6.1
Residents must decide whether or not they wish to remain living in the re-development
area and consider whether they wish to remain a FW resident or alternatively accept
an offer of accommodation from another Registered Provider (RP) or local authority
(LA).
Where FW have agreed to redevelop an existing estate (often working in partnership
with the local authority) and a tenants home will be lost as part of the redevelopment,
a Local Lettings Agreement (LLA) will usually be agreed.
Alternatively FW will refer residents to the relevant LA under their allocations policy.
FW will negotiate with the local authority to ensure residents are given a high degree
of priority to secure alternative housing on either a temporary (if required) or a
permanent basis.Where there are exceptional circumstances and the local authority is
unable to nominate / prioritise a FW resident for housing a direct offer of
accommodation may be made with the approval of the Head of Housing or
Operations Director. Allocations Lettings and Void Policy refers.
6.2
All offers of accommodation must comply with the FW Allocations, Lettings and Voids
Policy and Housing Occupation Statement and the re-housing needs of existing
residents balanced with those of other applicants. Whilst FW will use its best
endeavour to match offers of accommodation to the preferences stated by residents,
FW cannot t guarantee offers of alternative accommodation in a very precise location.
Offers of accommodation will be made taking into account a residents;4
a. Housing needs
b. Medical Needs
b. Proximity of work or education
c. Proximity to relatives where continued support is essential
d. Ability to pay the rent and any other charges including should they become
reliant in full or in part on welfare benefits .
6.3
Temporary Accommodation
Tenancies for temporary accommodation will be offered on an Assured Shorthold
basis, however any rights relating to the tenants original tenancy will be preserved
until such time as the tenant is permanently rehoused and signs a new tenancy
agreement,. Assured Shorthold tenancies for temporary accommodation will be
renewed automatically after 6 months on an on-going basis, providing no breaches of
the tenancy agreement have occurred.
6.4
Residents with Starter Tenancies
Residents with Starter Tenancies are not normally offered alternative accommodation
either with FW or by means of a nomination to another affordable landlord until their
tenancy has been transferred from an Assured Shorthold Tenancy to an Assured
Tenancy. However FW recognises that there may be urgent circumstances, such as a
housing redevelopment programme, when a tenant needs to move during the initial
assured shorthold period and consequently this may be permitted .Starter Tenancy
Policy refers.
6.5
Where it is agreed that a tenant needs to move and the original tenancy has been, to
date, conducted satisfactorily, the new tenancy will be granted as a Assured Shorthold
tenancy for the balance of the 12 months period remaining from the original tenancy,
assuming at least 6 months remain to enable a new Assured Shorthold Tenancy to be
offered. Alternatively if less than 6 months remain, the new tenancy will be offered as
an Assured Tenancy
7.
HOUSING OPTIONS – FW Shared Owners
7.1
FW will purchase the equity of Shared Ownership residents, such residents could be
presented with the following options, depending on their individual circumstances and
the availability of housing options relevant to a particular redevelopment scheme:
7.2
Residents, who wish to remain living in the re-development area, may have the
following options:
1. To purchase a new home on a shared basis on the development site. Residents will
need to meet the shared ownership criteria.
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2. If residents do not meet the shared ownership criteria for ownership within the
new scheme, consideration can be given to the following options:
a. Reducing the level of equity to be purchased in a new property on the
development site in order to meet the shared ownership criteria or
purchasing a home on a shared ownership basis elsewhere
b. Making an application to become an Assured Tenant, either with FWon or
off the development site or possibly with another RP LAy, in accordance
with the Allocations, Lettings and Voids Policy.
c. Offering an Assured Shorthold tenancy within the FW Residential leasing
Scheme stock or within the private market.
d. Any breaches of the lease would be taken into consideration before any
offers would be made.
8.
HOUSING OPTIONS – Owner Occupiers
8.1
Owner occupiers in the redevelopment area may have the following options;1. To acquire a new property within the redevelopment area
2. To sell their home to FW and move away
3. To sell their home to FW and take up an alternative housing option, see 8.2 below
with FW’s support
8.2
Other housing options that may be available to owner occupiers, unable to afford
outright purchase, with or without an affordable mortgage, are:
1. To initially sell their home to FW and put the equity into a new home constructed
on the development site or elsewhere and purchase on a shared ownership basis.
Residents would need to meet the Shared Ownership criteria.
2. If residents do not meet the shared ownership criteria for ownership within the
new scheme or elsewhere, consideration would be given to the following
alternative options:
3. Reducing the level of equity to be purchased in the new property in order to
meet the criteria or purchasing a home on a shared ownership basis
elsewhere.
4. Becoming a Resident, either with FW or possibly another RP or LA.
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5.
9.
9.1
Offering an assured short hold tenancy within FW’s Residential Leasing stock or
within the private market.
HOUSING OPTIONS – Owners who are landlords
Owners who are landlords may have the following options;1. To sell their property to FW with vacant possession
2. To sell their property to FW with tenants in situ
9.2
If the owner shows a preference to remain a landlord owning property within the redevelopment area, the owner may, with FW’s agreement, acquire a new build home(s)
or existing home(s) for his tenants(s).
9.3
In the event of FW agreeing to acquire a landlord’s property with a tenant(s) in situ, FW
would then become the landlord of that tenant(s).
9.4
Where a Compulsory Purchase Order has been obtained, landlords who sell their
property to the association will qualify for the basic loss payment, fixed by statute and
varied from time to time. Where a Compulsory Purchase Order has not been obtained
the decision whether or not to make voluntary basic loss payments will be taken on a
scheme by scheme basis.
9.5
The Housing Options for tenants where a property is acquired privately with them in
situ will be determined by their security of tenure. Tenants with Assured Tenancy status
will be considered as FWn Residents (see 5 above), and tenants with Assured Shorthold
tenancies may be offered the housing options detailed in 10 below.
10.
HOUSING OPTIONS – Assured Shorthold Tenants
10.1
Tenants with Assured Shorthold status, whose tenancy has not been granted on a
Starter Tenancy basis, see section 6, may have the following options available to
them:
1. To acquire a property from FW or another RP or LAL either on or off the
development site on a shared ownership basis. Tenants would need to meet the
shared ownership criteria.
2. If residents do not meet the shared ownership criteria for ownership, consideration
may be given to the following alternative options:
3. Becoming an Assured Tenant either with FW or possibly another RPor a LA, subject
to them meeting the requirements of FW and the local authorities allocation
scheme
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4. Offered an alternative assured shorthold tenancy within FWs Residential Leasing
Scheme stock or within the private market.
5. Any breaches of the tenancy agreement would be taken into consideration before
any offers would be made.
11.
11.1
IDENTIFYING AND SUPPORTING RESIDENTS
FW recognises that some residents will need more assistance than others (Equality and
Diversity Policy refers) to consider and agree their preferred Housing Options and the
arrangements to move and set up a new home, these household may include:

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11.2
12.
12.1
Elderly households of any tenure type
Households that have lived in the area for a long time
Households with children, schooling and family support locally
Black and Minority Ethnic households, which may be more reliant on social
networks, faith and cultural facilities, language barriers, feeling of isolation or
intimidated.
Households requiring larger properties of any tenure type
Households with health disabilities and support needs
FW will appoint a dedicated member of staff for residents to contact throughout the
redevelopment/rehousing process. FW will . liaise with external statutory and voluntary
organisations as appropriate and with the relatives and/or friends of residents, on the
behalf of a resident but only with the residents’ prior agreement. FW will also consider
providing more support for individual residents and/or engaging an independent
organisation to provide an advocacy service and/or practical support as necessary.
COMPENSATION AND DISTURBANCE PAYMENTS
Residents who are compelled to move may have a legal right to compensation under
the Land Compensation Act 1973 for the loss of their home (home loss) and the costs
of moving (disturbance). The main points of the Act which concern home loss
payments are:
 The resident must be displaced from their home
 The displacement must have been in consequence of the proposed redevelopment
or refurbishment.
 The person displaced must:
(a)
have been a resident of FW or a owner occupier, shared owner or Resident in the
private sector within the affected area; and
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(b)
have occupied the premises for at least 1 year, (ending with the date of
displacement) as his or her only or main residence.
12.2
Where a resident is required to move twice by FW, i.e into temporary accommodation
and then to their permanent home, disturbance costs will be met to cover both
moves. However costs associated with a temporary move will be kept to a minimum
by FW reflecting the fact that the resident will be moving again. For example FW
would not expect to provide carpet and curtains of the equivalent standard for
temporary accommodation compared with a permanent move. Further more FW will
be mindful that any temporary accommodation may be utilised once vacated by
other residents also on a temporary basis. Any resident moving more than once, will
however only be entitled to one home loss payment.
13.
HOME LOSS PAYMENTS
13.1 Home loss is a fixed sum for a tenant or a percentage of an owner’s interest in a property
capped at a maximum payment figure, payments are fixed by statute and varied from
time to time. Home loss payments are payable to residents to compensate them for
the permanent loss of their home if they are compelled to move because of
improvement or redevelopment work and cannot return to their original home. This
means that a home loss payment cannot be claimed in circumstances where the
resident is required to move due to major repairs, but may return to their original
home after completion of the works.
13.2
Where a resident chooses to move home independently, i.e. without an offer of
alternative accommodation from the association, or ends their tenancy prior to the
scheduled re-housing period, they will be entitled to home loss and disturbance
payments providing the redevelopment scheme has been sanctioned in accordance
with FW’s standing orders and financial regulations.
13.3
Only those with a secure legal interest in the property qualify for a home loss
payment. Consequently residents with assured shorthold tenants (except those with
Starter Tenancies, residents with Starter Tenancies however may not meet the
conditions of Clause 13.5), lodgers, licensees or sub-tenants are not entitled to a
payment.
13.4
Statutory successors can add the length of residence of a deceased resident to their
own period of tenancy to satisfy the “one year requirement” as outlined above.
13.5
Where a resident entitled to a home loss payment dies without making a claim, a
claim may be made by any adult who lived in the property with the Resident for not
less than one year as their only or main residence. The claimant must be entitled to
succeed to the resident’s estate under a will or under the intestacy rules, (where no will
has been made).
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13.6
Joint Residents are only entitled to one home loss payment, which is fixed by statute
as a single payment. Should it be established that more than one adult is entitled to
this payment, the payment will be shared equally between the claimants or paid to a
single claimant with the prior written agreement of the parties concerned.
13.7
If a resident hase rent arrears or any other debt(s) with FW at the time of making an
offer of alternative accommodation, FW will offset up to 75% of the home loss
payment (or more than 75% with residents agreement) against the monies owed,
money may also be offset against the homeloss payment where a resident is required
to pay their rent in advance. . In the event that there is insufficient money to clear a
tenant’s arrears from home loss then the debt will be transferred to their new account
and the appropriate clause added to the tenancy. Residents will however not be
required to clear any rent arrears by offsetting their home loss payment if they can
provide confirmation that a Housing Benefit payment will be made to clear the debt in
full. Rent Collection and Arrears Policy refers.
13.8
Accepted claims will be paid in the time limit set out in the Land Compensation Act.
13.9
FW will pay the home loss allowance to the resident no later than three months after
their application has been received, providing the claim has been made within the
prescribed 6 year period. Residents will be provided with a claims form immediately
following their move to permanent accommodation.
13.10 If a resident is Bankrupt, consultation will take place with the Insolvency Service to
ascertain whether the homeloss payment can be made directly to the resident or not.
14.
DISTURBANCE PAYMENTS
14.1
Where a resident is required to move on a permanent basis due to redevelopment or
improvement, they are also entitled to disturbance payments under section 38 of the
Land Compensation Act. These payments are compensation for the actual expenses
involved in moving from one property to another and claims must be made within a 6
month period.
14.2
Payments will generally be made directly to the supplier to minimise inconvenience for
the resident and specific contractors will be engaged where ever possible (e.g. for
removals and the fitting and supply of floor coverings) to improve efficiency.
14.3
A resident need not have occupied their home for a minimum period to qualify for
disturbance costs, but must be required to leave their home as a consequence of the
redevelopment or improvement.
14.4
The value of disturbance payments will vary according to the circumstances of each
household and on a scheme by scheme basis, however generally only the following
items will be considered under the policy;
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Cost of Removals Company to transport home contents/furniture
Disconnection and reconnection of washing machine, cooker and
dishwasher

Landline telephone disconnection and reconnection

Mail redirection
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Carpets (other types of floor coverings will only be replaced on a like for like
basis and restrictions may apply to flats above ground floor level)

Curtains
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Decoration allowance

Aids and Adaptations (Adaptations Policy refers)

Cookers

Television Connection costs and Satellite Dishes (subject to planning
conditions)
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Security measures equivalent to those at the residents previous property
 New school branded uniform costs if the school necessitates a change of
school for children not anticipated by parents

Loss of earnings on move day (written confirmation from employer
confirming loss of earnings required)

Storage of furniture and household items where a resident is required to
make a temporary move

Legal fees (agreed in advance) and stamp duty when purchasing properties
form owner occupiers
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
14.4
Other reimbursement may be considered where the expense incurred has been as a
direct result of the move and could not have been avoided. Estimates may need to be
obtained and the final cost must be agreed by FW prior to the expense being
incurred.
14.5
Claims for items which cannot be adapted to fit the new property or where a resident
has carried out home improvements which are then displaced as a result of the
redevelopment or improvement will be assessed based on existing values and in line
with statutory requirements.
14.6
If a current property has been adapted for either the resident(s), or household
member and these are displaced as a result of the re-development or improvement
FW will if at all possible reinstall the adaptations at the resident’s new home. we. If
there appears to be a requirement for replacement or new adaptations FW will seek
the assistance of the Local Authority Occupational Therapy Department, FW will meet
the cost of any adaptations provided they can be incorporated as part of the
Development Project. Once a resident has moved to their permanent home any
further requests for Adaptations will be considered in accordance with the Adaptations
Policy.
15.
RIGHT OF APPEAL
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15.1
Residents who are dissatisfied with their treatment under the terms of this policy will
have the right of appeal to an Appeal Panel. The panel members will include one of
the Heads of Operations responsible for the redevelopment area, or their nominated
representative, a member of FW’s Senior Management Team and a Tenant
Representative, the latter not to be known to the appellant or to live in the same
locality.
15.2 The appellant will have the right to present their case in writing and/or in person,
assistance will be offered in making an appeal application if required. Any member of
staff supporting a resident in making an appeal cannot be a member of the panel
convened for that resident. The appellant may be accompanied at the appeal by a
member of FW staff or an independent person but may not be legally represented as
the appeal forms part of an ‘internal process and FW will also not be legally
represented.
15.3 The Panel will only have regard to the criteria contained in this policy when considering
an appeal.
15.4 Residents are required to make an appeal application in writing and should be advised
of a date for the appeal within 5 days of their application being received. An appeal
hearing must take place, no later than 10 working days from receiving the original
appeal request.
15.5 Appellants will be advised of the panels’ decision, in writing, within 2 days of the panel
meeting. Although the panel’s decision will be final this does not prevent a resident
from making a subsequent complaint in accordance with FW’s Complaints Policy and
Procedure and to the Land Tribunal in the case of a dispute regarding home loss
and/or compensation payments.
16.
MEDIATION
16.1 FW will consider engaging and funding the services of a independent mediator where
negotiations between FW and a resident irretrievably break down. In addition and
where appropriate FW will appoint an independent advocate for a resident.
17.
POSSESSION ACTION, RENT ARREARS and DEBTS – FW RESIDENTS
17.1
As a last resort it may be necessary to take legal action for possession if a resident
refuses reasonable offers of accommodation. All reasonable steps will be taken to limit
the need for such action.
17.2
If it is considered necessary to secure FW’s interest once the redevelopment or
improvement programme has been announced, all affected associations residents
living on the estate concerned will be served with a Notice of Intention to Seek
Possession.
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17.3
Residents who have rent arrears or other debts owed to FW from their current or
previous tenancies will be expected to agree and maintain a reasonable repayment
plan with FW, taking account of any benefit entitlement, until the deb is cleared, Rent
Collection and Arrears Policy refers.
17.4 If a resident has rent arrears or any other debt(s) with FW at the time of making an offer
of alternative accommodation, FW will offset up to 75% of the home loss payment (or
more than 75% with residents agreement) against the monies owed, money may also
be offset against the homeloss payment where a resident is required to pay their rent
in advance. In the event that there is insufficient money to clear a tenant’s arrears
from home loss then the debt will be transferred to their new account and the
appropriate clause added to the tenancy. Residents will however not be required to
clear any rent arrears by offsetting their home loss payment if they can provide
confirmation that a Housing Benefit payment will be made to clear the debt in full.
Rent Collection and Arrears Policy refers.
18.
LINKS TO OTHER POLICIES
18.1
This policy should be read in conjunction with:
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Development and Estate Regeneration Consultation Policy
Temporary Homeloss Policy
Equality and Diversity Policy
Allocations, Lettings and Voids Policy
Housing Occupation Statement
Tenancy Policy
Starter Tenancy Policy
Rent Collection and Arrears Policy
Adaptations Policy
Complaints, Compliments and Suggestions Policy
Data Protection Policy
19.
MONITORING AND REVIEW PROCESS
19.1
This policy will be monitored by the Heads of Development and Operations . This
policy will be reviewed as a minimum of every 3 years or earlier if required. Any
updates must be notified on the contents page with the version, date and the reason
for the change. These changes must be authorised by Asset Management Director..
20.
FEEDBACK
20.1
Anyone who is dissatisfied with any aspect of the services provided by FW will have
the opportunity to seek redress through the FW Complaints, Compliments and
Suggestions Policy.
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21
CONFIDENTIALITY AND ACCESS TO INFORMATION
21.1
FW holds personal details of applicants and residents through application forms, home
visits, and information on nominees from Local Authorities and general
correspondence which is kept entirely confidential. These are dealt with in line with
the Data Protection Act 1998. (Data Protection Policy refers).
21.2
If any person wishes to view a copy of their personal data (or sensitive personal data)
from their file, a request for access must be made in writing. As a registered social
landlord, FW must satisfy itself of the identity of the tenant making the request for
access and a copy must then be provided within 40 days of accepting the request.
Please note a fee may be charged for access.
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COMMUNICATION
22.1
The adoption of this Policy will be notified to staff. In-house and refresher training will
be arranged for staff as required. A copy will also be placed on the intranet within the
central index of policies. Timely Information will be provided to affected residents.
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