Under the Land Compensation Act 1973 (the 1973 Act) a landlord may have to pay a resident a home loss payment if the resident is permanently displaced from their home (subject to the circumstances and various conditions that have to be satisfied).

New regulations, the Home Loss Payments (Prescribed Amounts) (Wales) Regulations 2025, have been introduced to increase the amounts payable in respect of properties in Wales.

For displacements on or after 5 March 2025, the new amounts will be:

• For tenants, a minimum payment of £8,000 (in place of the existing £6,200); and
• For leaseholders (who are entitled to 10% of the market value of their interest in the property):
  • A minimum payment of £8,000 (replacing the existing £6,200 amount); and
  • A maximum payment of £82,000 (replacing the existing £62,000 amount).

In preparation for these changes, landlords operating in Wales must ensure that their policies and procedures, together with any business plans for redevelopment which include permanent decants, are updated to reflect the new amounts.

If you would like to find out more about this article or decants and home loss payments generally, please contact Emma Hardman.

Please note we are unable to advise tenants.