Statutory compensation under the Landlord and Tenant Act 1954
Statutory compensation under the Landlord and Tenant Act 1954

The following Property Disputes practice note provides comprehensive and up to date legal information covering:

  • Statutory compensation under the Landlord and Tenant Act 1954
  • Statutory compensation—which grounds are compensatable?
  • The first compensation case
  • The second compensation case
  • The third compensation case
  • Certification of successful ground of opposition
  • Worked examples of compensation cases
  • Bona fide belief in grounds of opposition
  • Abuse of process
  • Amount of compensation payable
  • More...

Statutory compensation—which grounds are compensatable?

Under section 37 of the Landlord and Tenant Act 1954 (LTA 1954), the tenant is entitled to statutory financial compensation for the disturbance to their rights of security of tenure where:

  1. the landlord relies on one or more ‘no fault/compensation grounds’; and

  2. one of the three compensation cases under LTA 1954, s 37(1A)–(1C) applies

Three of the seven grounds of opposition under LTA 1954, s 30(1) are ’compensation grounds’ as set out in the following table:

Ground of opposition under LTA 1954, s 30(1)Compensation ground?
Ground (a)—disrepairNo
Ground (b)—persistent delay in paying rentNo
Ground (c)—unlawful conduct No
Ground (d)—provision of suitable alternative accommodation No
Ground (e)—where the landlord requires possession of the holding for the purpose of letting or otherwise disposing of the property as a wholeYes
Ground (f)—where the landlord intends to demolish or reconstruct the premises comprised in the holding, or a substantial part of them, or to carry out substantial work of constructionYes
Ground (g)—where the landlord intends to occupy the holding for the purposes, or partly for the purposes, of a business to be carried on by him, or as his residenceYes

The first compensation case

The first compensation case (under LTA 1954, s 37(1A)) applies where:

  1. the tenant makes an application for the grant of a new tenancy (under section 24(1)); and

  2. the court is precluded from ordering the

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