Compensation Arrangements
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If your property is in an area which the Council intends to demolish, the Council will offer to buy your home if you agree to sell it.
Each property will be valued at a fair market price known as the "open market value". Values vary between areas and house types, so it is impossible to say how much each individual house will be valued at. If you want to get your own valuation, you may do so as part of the negotiation process.
Should we buy your home we will pay your valuation fees to a reasonable level. The Council will offer you the open market value of your home.
If you have lived there for 12 months as your main home when the Council actually buys it, you will receive a further 10% of the open market value. This is called a "Home Loss Payment": the minimum is £4,000 and maximum is £40,000. You will also qualify for a disturbance payment which you can use to pay for your removal costs.
Download a copy of the Claim for Home Loss Payment form![(PDF [86.6Kb] opens in new window)](/images/PDF.gif)
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Having asked Registered Social Landlords (RSL's) and other public agencies, we are also exploring other finance packages which may be on offer through the Council. These may allow you to purchase a new home and remain a home owner in the area.
On the other hand, the money offered for your home could be used to buy a shared ownership option offered by a RSL. This can also apply to sheltered housing accommodation if you are elderly.
If my home is scheduled for clearance, will I receive help with removal expenses and legal fees?
All households, whether owner-occupiers or tenants, will be entitled to a disturbance payment designed to reimburse the cost of moving home. Each case will be dealt with on its own merits. There isn't a specific list of items against which you can claim, and you must save all receipts to be able to claim a refund.
Most owner-occupiers, and some tenants, in addition to a disturbance payment can also be given a statutory Homeloss Payment. This allows owner-occupiers to be paid a minimum of £4,000 or 10% of the value of your property whichever is the greater. For tenants this will mean a fixed payment of £4,000.
However, in both cases, to be able to qualify for this payment you will have continuously lived in the property for at least 12 months and still live there when the Council purchases your home.
See the Office of the Deputy Prime Minister's national guidance on Compulsory Purchase Orders and compensation payments. (The link will open a pdf document. Find the relevant information on page 16, between paragraphs 2.49 and 2.55).
If I don't want to sell, will you use Compulsory Purchase Orders?
The Council will only begin a Compulsory Purchase Order as a last resort. All efforts to negotiate must be done first. Even if a CPO is made, the Council can still negotiate with you.
The money we offer to buy houses is the same as it would be under a CPO, which means there is no financial advantage in waiting for a CPO because you will not get any more money than we will already be prepared to offer.
What if I wish to object to the HMRI proposals to buy my property?
Liverpool City Council and the RSL's have been and will continue to work with and involve the community in every affected area. However in cases where the housing stock is in poor condition or where there are large amounts of vacant properties and agreement cannot be reached to acquire your property, the Council is prepared to use its Compulsory Purchase Powers to assemble the sites to enable the new build to take place.
The Council will only make a Compulsory Purchase Order as a last resort. Every effort to acquire property by agreement will be made but, it is inevitable a CPO will be required given the scale of the interventions.
In some cases, CPO's may be made and negotiations will continue with you at the same time. However, if you do not wish to sell by agreement and reserve your right to object you may do so.
Should the Council proceed with the CPO you can object. Ultimately, a Government appointed inspector will determine your objection at an Inquiry unless it is based solely on the purchase price for your home. Financial issues are usually determined by the Land Tribunal after the CPO. This is why the financial package on offer to acquire houses by agreement NOW i.e. prior to CPO is the same as it would be under a CPO. Therefore there is no financial disadvantage if you sell early or choose to wait for a CPO. The purchase price and other payments offered are the same.
Will you be buying business premises and compensating business occupiers/owners?
We may, as part of the site assembly process, acquire shop frontage premises and non-conforming uses within residential areas. If we think we will have to, we will contact you (or you can contact us). Businesses can include shops or offices, whilst non-conforming uses include commercial operations in residential side streets.
If we do need to acquire your premises we will help you to relocate and pay you the market value, trade disturbance and a Loss Payment. A Loss Payment is the business equivalent of a residential Home Loss Payment (7.5% of market value, subject to maximum of £75,000. If you are an owner-occupier there is an additional 2.5% of market value subject to a maximum of £25,000 i.e. £100,000 (£75,000 + £25,000).