Because it’s coming from a housing association as a BACS it should be fine as they are viewed as a trusted source if it was a cash deposit or a transaction from a dodgy country then it might raise a few flags. You could always call the bank just to let them know what it is wouldn’t take that long and it will mitigate the risk abit.

My housing association is due to pay the compensation payment of £6.5k shortly.

They are paying by BACS.

Will a large payment like this raise suspicions with the bank? As I’ve never had large payments like this or a balance like this before.

You hear horror stories of banks questioning where money has come from and suspending accounts.