§ Mr. CranTo ask the Secretary of State for the Environment whether he has reached conclusions following the consultation exercise on the new right to compensation from home improvements in the Housing and Urban Development Bill.
§ Mr. BaldryIn December, my right hon. and learned Friend and my right hon. Friend the Secretary of State for Wales published a consultation paper entitled "Compensation for Tenants' Improvements". The consultation paper sought views from interested parties on the operation of a new mandatory scheme whereby local authority tenants can receive compensation for carrying 635W out certain home improvements, once their tenancy ends. The Departments have together received 80 responses and I am today announcing our conclusions.
Subject to parliamentary approval, the new scheme will be applicable to secure tenants of local authorities; the Housing Corporation and Housing for Wales will be formulating proposals to ensure that tenants of housing associations will have similar rights under their tenants' guarantee. We intend to draw up a list of eligible improvements; other improvements, outside this core list, will be eligible for compensation under discretionary schemes run by authorities. The amount of compensation, payable once the tenancy ends, will be based on the costs incurred by the tenant, depreciated over time. We intend to provide for an element of discretion for authorities in the assessment of compensation—for example, to deal with situations where the improvement has deteriorated more rapidly that would have been expected. We also intend there to be both upper and lower limits on the amount payable in respect of improvements. We will be proposing minor amendments to the enabling powers in clause 110 of the Housing and Urban Development Bill, to reflect a number of suggestions from consultees on the operation of the scheme.
This new initiative, contained in our election manifesto, will further extend the rights of council tenants. It will encourage tenants to invest in their homes, by guaranteeing them due recompense. It will also stimulate further improvements in the condition of local authority housing stock.
The Department will consult during the summer on draft regulations governing the detailed operation of the scheme, with a target date of 1 April 1994 for the scheme to come into operation.
I have placed in the Libraries of the House copies of a note which gives further details of our proposals.