| INTRODUCTION
Secure tenants were given the right to receive compensation for improvements
to their home under the Leasehold Reform Housing and Urban Development
Act 1993.
These rights were also incorporated into the Tenants’ Guarantee
for Assured Tenants. This procedure outlines how improvements carried
out by tenants will be dealt with.
Background
Housing for Women will grant the right for tenants to carry out improvements
to their property provided certain conditions are met and the Association’s
approval has been given. This procedure outlines how such enquiries are
to be dealt with.
Requests for tenants’ improvements
All requests to carry out improvements must be made in writing by the
tenant. The application form (see Appendix 1) should be completed giving
full details of the proposed work. The tenant must also be sent ‘Conditions
for Undertaking a Tenant Improvement’ which should be returned with
the application form (see Appendix 3).
The completed application form must be considered by the Housing Manager
and Maintenance Manager together with any plans and/or work schedules
submitted by the tenant.
Approvals/Refusals
The Association will not unreasonably refuse requests for improvement.
However, examples of when it may be necessary to refuse approval include:
1. the application is not made by the tenant;
2. works devalue the property or its lettability;
3. works alter the layout of the property – i.e. creating two rooms
from one;
4. the property is a listed building or in a conservation area;
5. when planning permission is required, but has been refused;
6. where the Association intends to carry out major repairs or reimprovement
in the foreseeable future.
NB This is not an exhaustive list – there may well be other reasons.
Approval can be given as long as conditions in Appendix 3 are met and
1-6 (or other valid reasons for refusal) above do not apply. A letter
must be sent to the tenant approving works to be carried out and reminding
them to contact the Maintenance Manager when works are in progress and
when they are completed.
During progress of the works and on completion, the Maintenance Manager
must visit and inspect the work, to see that it is being conducted in
accordance with conditions set.
Compensation
The Association will compensate the tenant for improvements they have
carried out. Compensation will be based on the formula set out in the
Association’s policy on compensation, in accordance with Housing
Corporation criteria.
The improvements must:
1. Remain in the property as part of the landlord’s fixtures and
fittings when the tenant vacates the property.
2. Enhance the property for future use.
If receipts of the works are not on record, the estimated value should
be considered.
Maintenance of the tenants’ improvements
Some improvements may require maintenance and/or servicing – this
will be carried out by the Association provided:
1. the conditions for a tenant undertaking an improvement have been met;
2. the improvement is to remain the property of the Association after
the tenant has vacated;
3. the cost of maintenance and/or servicing is not over and above that
which the Association would normally pay.
RIGHTS TO COMPENSATION FOR IMPROVEMENTS
Introduction
The Leasehold Reform, Housing and Urban Development Act 1993 gave secure
tenants the right to compensation for improvements. This is now extended
to housing association tenants through the Tenants’ Guarantee.
Compensation for any improvements carried out by the tenant are only due
at the end of the tenancy and the improvements must have been agreed by
the Association.
If compensation is due it can be set against any monies owed to the Association
by the tenant including rent arrears and repairs to deal with damage at
the end of the tenancy.
Compensation will not be paid to those tenants who did not originally
pay for improvements i.e. tenants who have effected a mutual exchange.
QUALIFYING FOR COMPENSATION
The tenant must receive written permission from the Association prior
to making any improvements. The Association will consider the request
with regard to its current policy on tenants’ improvements.
The tenant should submit their proposals which should be forwarded to
the Housing Manager. These proposals should be put forward on the Association’s
standard application form.
If the Maintenance Manager and Housing Manager are satisfied with the
proposal they should inform the tenant that they need to submit three
estimates from bona-fide contractors. Standard conditions for tenants
undertaking improvements should be issued to the tenant.
The tenant should submit the estimates to the Maintenance Manager indicating
their preferred contractor.
If the Maintenance Manager considers the estimates reasonable, then they
should instruct the tenant that they are happy for them to commence the
works.
The Maintenance Manager should ensure that they make it clear in writing
that the Association is not responsible for the work of the contractor,
for the servicing or maintenance of the relevant works and that the tenant
is carrying out the works at their own risk.
Housing for Women should have no contact with the tenants’ chosen
contractor. The Maintenance Manager should also indicate in the letter
the notional life of the improvement after which no compensation will
be paid.
The Housing Manager should complete an entitlement to compensation for
improvement certificate and place this on the tenant’s file. Details
of notional lives are included in Appendix 2 though this list is not comprehensive.
PAYMENT OF COMPENSATION
On terminating the tenancy the tenant should make a written claim for
compensation.
Compensation is only payable where a certificate of entitlement to compensation
payment is on the tenant’s file.
The Housing Officer will calculate the entitlement to compensation based
on the original sum agreed and the time lapsed since the improvement was
carried out. Regard will be had to criteria currently in force.
The amount of compensation should be offset against any rent arrears or
any works required to repair damage to the property caused by the tenant
or the costs of any work needed to bring the property up to current standards.
A cheque requisition signed by the Housing Manager should be forwarded
to Finance.
Compensation will be paid from the Maintenance Budget.
There will be no entitlement if the tenancy was terminated following legal
action.
APPENDIX 1
APPLICATION FORM
TENANTS’ IMPROVEMENT WORKS
Before completing this form, you are advised to read the Terms and Conditions
of Tenant Improvement Works which are attached.
Name:
Address:
Description of proposed works:
Estimated costs:
Name and address of contractor carrying out the works:
Is a guarantee provided: YES/NO* Please delete
Is planning permission/building control approval required: YES/NO*
If yes, has planning/building control permission been approved: YES/NO
When do you propose to start work? ……………………….
This application form must be returned to the Housing Manager together
with a signed copy of the Standard Conditions for Tenants’ Improvements.
APPENDIX 2
A list of suggested improvements which may be included as qualifying
improvements under the Right to Compensation for Improvements, with their
associated notional life.
Bath or shower 12 years
Wash-hand basin 12 years
Toilet 12 years
Kitchen sink 10 years
Storage cupboards in bathroom or kitchen 10 years
Work surfaces for food preparation 10 years
Space or water heating 12 years
Thermostatic radiator valves 7 years
Insulation of pipes, water tank or cylinder 10
Loft insulation 20 years
Cavity wall insulation 20 years
Draught proofing of external doors and windows 8 years
Double glazing or other external window replacement or
secondary glazing 20 years
Rewiring or the provision of power and lighting or other
electrical fittings (including smoke detectors) 15 years
Any object which improves the security of the dwelling
house, but excluding burglar alarms 10 years
APPENDIX 3
STANDARD CONDITIONS FOR TENANTS UNDERTAKING IMPROVEMENTS
Housing for Women allows tenants to undertake improvements to their property,
provided certain conditions are met. Before completing an application
form you are advised to read these guidelines and conditions very carefully.
General conditions and guidelines
1. Before the Association can grant permission for works you propose to
carry out, an application form must be completed and forwarded to the
Housing Manager, together with any plans, schedules of work and a signed
copy of these conditions. You should receive written approval from the
Association prior to commencing any improvement works.
2. Unless otherwise agreed, in writing by the Association, the total cost
of the work and related expenses are to be met by yourself as the tenant
of the property.
3. You must advise the Maintenance Manager when works are due to commence
and when works are completed in order that the Area Maintenance Surveyor
may inspect.
4. Any contractors you employ must be suitably qualified and members of
the respective trade organisation and hold a current Public Liability
Insurance policy. A guarantee should be provided for some improvements
by the manufacturer or contractor.
5. You must ensure that the appropriate statutory authorities are involved
where necessary:
5.1 You may need planning permission or building regulation approval before
undertaking some works – if this is the case, the approval must
be sent to the Housing Manager before the Association can give permission
for the work to be carried out.
5.2 Notices may need to be served on the District Valuers, gas, electric
and water boards; drainage inspectors etc. If required, the Association
will need to see proof of these notices before giving consent for works
to go ahead. Any conditions required by these statutory authorities should
be met.
6. In carrying out the improvement, you will be required to ensure:
6.1 That if there are common parts to the building, they must be protected
and clear of obstruction. After the works have been completed, common
parts should be cleaned and free from dust.
6.2 That any damage caused during the works are notified and put right
at your expense You will be liable for any claims of damage from a third
party.
6.3 You should notify all neighbours likely to be affected by the works
and take all possible steps to minimise inconvenience and nuisance to
them. In particular no work should be undertaken outside the hours of
8.00 am to 9.00 pm and noisy operations which may disturb others should
only be undertaken between the hours of 9.00 am – 5.00 pm Monday
to Friday.
6.4 Where works necessitate the interruption of services to neighbours,
i.e. temporary disconnection of gas, water and electricity, mutually satisfactory
arrangements must be made with them beforehand.
6.5 Access is available for the Maintenance Manager to inspect works.
Should conditions not be met and/or the works are not progressing in a
satisfactory manner, the Association reserves the right to order the works
be stopped.
7. When you leave the property, you may
7.1 Remove the improvement, but you must reinstate the property to its
original state prior to when the improvement took place. Your Housing
Officer will need to visit and ascertain this has been done.
7.2 Decided to leave the improvement in the property to remain as part
of the Association’s fixtures and fittings.
8. The Association will pay compensation for the improvement should you
vacate the property, provided the improvement remains as part of the Association’s
fixtures and fittings.
In order for compensation to be paid you should supply copies of invoices
and receipts so that the amount can be calculated.
9. Some works may mean that a rent increase is necessary if the Association
require to maintain or service the improvement. You may wish to clarify
this before you commence works.
10. In making any application to carry out an improvement, you are required
to sign the copy of these conditions and return it to your local area
office.
Undertaking
I understand and will abide by the above conditions
Signed: (name of tenant)
Address:
Date:
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