Compensation is based on the principle of equivalence. This means that you should be no worse off in financial terms after the council has bought your property, than you were before. Likewise you should not be any better off. Home owners are entitled to the Open Market Value of their property, and either a Home Loss payment of 10% or a Basic Loss payment of 7.5% of the Open Market Value of their property.
The table below summarises the compensation package that you would be entitled to as a homeowner depending on your occupation status.
Owner occupier giving vacant possession (property in question being their only or principal home)
Market Value of your Property
Home loss payment, which is 10% of market value of the property, which is subject to cap
Reasonable legal costs
Non resident leaseholder/ Freeholder and Private landlord
Market Value of the property
Basic loss payment (7.5% of market value of the property, which is subject to cap)