Housing Act 1985

PART XVIICOMPULSORY PURCHASE AND LAND COMPENSATION

Introductory

578General enactments relating to compulsory purchase, &c., apply subject to this Part.

The [1981 c. 67.] Acquisition of Land Act 1981, the [1965 c. 56.] Compulsory Purchase Act 1965 and the [1961 c. 33.] Land Compensation Act 1961 apply to the compulsory purchase of land under this Act subject to the following provisions of this Part.

579Special provision as regards acquisition of land for clearance.

(1)The Acquisition of Land Act 1981 does not apply (except so far as expressly applied) to the compulsory purchase of land under section 290 (acquisition of land for clearance); instead, the provisions of Schedule 22 apply with respect to the making, confirmation, validity and operation of a compulsory purchase order under that section.

(2)However, in relation to a compulsory purchase order under that section—

(a)the provisions of Part I of the Compulsory Purchase Act 1965 apply as they apply to a compulsory purchase order under the Acquisition of Land Act 1981 (references to “the special Act” being read as references to this Act and the order); and

(b)the compensation payable shall be assessed in accordance with the Land Compensation Act 1961,

subject to the following provisions of this Part.

Compulsory purchase

580Incorporation of enactments relating to mineral rights.

A compulsory purchase order under section 290 (acquisition of land for clearance) shall incorporate Parts II and III of Schedule 2 to the [1981 c. 67] Acquisition of Land Act 1981 (mineral rights).

581Acquisition of commons, open spaces, &c.

(1)In so far as a compulsory purchase order under section 290 (acquisition of land for clearance) authorises the purchase of land forming part of a common, open space or allotment, the order shall be subject to special parliamentary procedure except where it provides for giving in exchange for such land other land, not being less in area, certified by the Secretary of State to be equally advantageous to the persons, if any, entitled to commonable or other rights and to the public.

(2)Before giving a certificate the Secretary of State shall give public notice of the proposed exchange, shall afford opportunities to all persons interested to make representations and objections in relation to it and shall, if necessary, hold a local inquiry on the subject.

(3)An order which authorises such an exchange shall provide for—

(a)vesting the land given in exchange in the persons in whom the common, open space or allotment was vested, subject to the same rights, trusts and incidents as attached to the common, open space or allotment, and

(b)discharging the land acquired from all rights, trusts and incidents to which it was previously subject.

(3)In this section—

• “common” includes any land subject to be enclosed under the Inclosure Acts 1845 to 1882, and any town or village green;

• “open space” means any land laid out as a public garden or used for the purposes of public recreation, or land which is a disused burial ground;

• “allotment” means any allotment set out as a fuel or field garden allotment under an Inclosure Act.

582Restriction on recovery of possession after making of compulsory purchase order.

(1)This section applies where a local housing authority have made a compulsory purchase order authorising—

(a)the acquisition of a house in multiple occupation under—

• section 17 (provision of housing),

• section 192 (house subject to repair order found to be beyond repair) or

• section 300 (purchase of condemned house for temporary housing use), or

(b)the acquisition of land under section 243(2) (land in housing action area on which there are premises consisting of or including housing accommodation),

and within the period specified in subsection (2) proceedings for possession of premises forming part of the house or land in question are brought in the county court against a person who was the lessee of the premises when the order was made, or became the lessee after the order was made, but is no longer the lessee.

(2)The period referred to in subsection (1) is the period beginning with the making of the compulsory purchase order and ending with—

(a)the third anniversary of the date on which the order became operative, or

(b)any earlier date on which the Secretary of State notifies the authority that he declines to confirm the order or the order is quashed by a court.

(3)Where this section applies the court may suspend the execution of any order for possession for such period, and subject to such conditions, as it thinks fit.

(4)The period of suspension ordered by the court shall not extend beyond the end of the period of three years beginning with the date on which the court makes its order or, if earlier, the date on which the compulsory purchae order became operative.

(5)The court may from time to time vary the period of suspension (but not so as to enlarge it beyond the end of the period of three years referred to in subsection (4)), or terminate it, or vary the terms of the order in other respects.

(6)If at any time—

(a)the Secretary of State notifies the authority that he declines to confirm the compulsory purchase order, or the order is quashed by a court, or

(b)the authority decide, whether before or after the order has been submitted to the Secretary of State for confirmation, not to proceed with it,

the authority shall notify the person entitled to the benefit of the order for possession and that person shall be entitled, on applying to the court, to obtain an order terminating the period of suspension, but subject to the exercise of the same discretion in fixing the date on which possession is to be given as the court might exercise if it were then making an order for possession for the first time.

(7)This section does not apply—

(a)where the person entitled to possession of the premises is the local housing authority;

(b)where the net annual value for rating of the premises exceeds the county court limit for the purposes of section 21(1) of the [1984 c. 24.] County Courts Act 1984 (actions for the recovery of land).

(8)In this section “house in multiple occupation” has the same meaning as in Part XI.

583Continuance of tenancies of housees compulsorily acquired and to be used for housing purposes.

(1)Where a local housing authority—

(a)are authorised to purchase compulsorily a house which is to be used for housing purposes, and

(b)have acquired the right to enter on and take possession of the house by virtue of having served a notice under section 11 of the [1965 c. 56.] Compulsory Purchase Act 1965,

they may, instead of exercising that right by taking actual possession of the house, proceed by serving notice on any person then in occupation of the house, or part of it, authorising him to continue in occupation upon terms specified in the notice or on such other terms as may be agreed.

(2)Where the authority proceed in accordance with subsection(1)—

(a)the like consequences follow with respect to the determination of the rights and liabilities of any person arising out of any interest of his in the house, or a part of it, and

(b)the authority may deal with the premises in all respects,

as if they had taken actual possession on the date of the notice.

(3)A person who by virtue of this section ceases to be entitled to receive rent in respect of the premises shall be deemed for the purposes of section 20 of the [1965 c. 56.] Compulsory Purchase Act 1965 (compensation of tenants, &c.) to have been required to give up possession of the premises.

(4)In this section “house” includes—

(a)any part of a building which is occupied as a separate dwelling, and

(b)any yard, garden, outhouses and appurtenances belonging to the house or usually enjoyed with it.

584Power to enter and determine short tenancies of land acquired or appropriated.

(1)This section applies where a local housing authority have agreed to purchase or have determined to appropriate land for the purposes of—

• Part II (provision of housing),

• Part VIII (area improvement), or

• the provisions of Part IX relating to clearance areas,

subject to the interest of the person in possession of the land.

(2)If that person’s interest is not greater than that of a tenant for a year, or from year to year, the authority may, after giving him not less than 14 days' notice, enter on and take possession of the land, or such part of the land as is specified in the notice, without previous consent.

(3)The power conferred by subsection (2) may be exercised at any time after the making of the agreement or determination, except where the appropriation requires Ministerial consent in which case the power is not exercisable until that consent has been given.

(4)The exercise of the local housing authority’s power under subsection (2) is subject to the payment to the person in possession of the like compensation, and interest on the compensation awarded, as would be payable if—

(a)the authority had been authorised to acquire the land compulsorily, and

(b)that person had been required in pursuance of their powers in that behalf to quit possession before the expiry of his term or interest in the land;

but without any necessity for compliance with section 11 of the Compulsory Purchase Act 1965 (which prohibits entry on the land acquired before the compensation has been ascertained and paid or secured).

Site value compensation for unfit houses and related matters

585Site value compensation for unfit houses.

(1)The compensation payable for—

(a)a house purchased compulsorily under section 192 (unfit house found to be beyond repair at reasonable cost),

(b)land purchased under section 290 as being comprised in a clearance area, except as mentioned in subsection (2), or

(c)a house purchased compulsorily under section 300 (purchase of condemned houses for temporary housing use),

is the value at the time when the valuation is made of the site as a cleared site available for development in accordance with the requirements of the building regulations in force in the district.

(2)Subsection (1)(b) does not apply to the site of a house or other building properly included in a clearance area only on the ground that it is dangerous or injurious to the health of the inhabitants of the area by reason of its bad arrangement in relation to other buildings or the narowness or bad arrangement of the streets, unless—

(a)it is a building constructed or adapted as, or for the purposes of, a dwelling, or partly for those purposes and partly for other purposes, and

(b)part of it (not being a part used for other purposes) is unfit for human habitation.

(3)The provisions of this section as to site value compensation are without prejudice to any further payment falling to be made under—

• section 586 and Schedule 23 (well maintained houses),

• section 587 and Schedule 24 (houses which are owner-occupied or used for business purposes), or

• section 589(2) (minimum compensation in certain cases),

and have effect subject to section 589(1) (maximum compensation in certain cases).

586Payments in respect of well maintained houses.

The provisions of Schedule 23 have effect as regards payments in respect of well maintained houses purchased at site value or demolished or closed under this Act.

587Payments in respect of houses which are owner-occupied or used for business purposes.

The provisions of Schedule 24 have effect as regards payments in respect of houses purchased at site value or demolished or closed under this Act, as follows—

• Part I: Payments in respect of owner-occupied houses.

• Part II: Payments in respect of houses used for business purposes.

588Avoidance of double compensation.

(1)Where a payment falls to be made in respect of an interest in a house under Schedule 24 (payments in respect of houses which are owner-occupied or used for business purposes), no payment shall be made in respect of that house under Schedule 23 (payments for well maintained houses) unless the other payment relates to part only of the house, and in that case such part only of the amount which would otherwise be payable in accordance with Schedule 23 shall be payable as may reasonably be attributable to the remainder of the house.

(2)In Schedules 23 and 24 references to a demolition order do not include such an order in respect of a house already subject to a closing order so far as it affects any part of the house in relation to which a payment under either of those Schedules has fallen to be made in respect of the closing order.

589Maximum and minimum compensation where s. 585 applies.

(1)Subject to the following provisions of this section, the compensation payable in respect of a compulsory acquisition in relation to which section 585 applies (site value compensation) shall not in any event exceed the amount which would have been payable if—

(a)that section did not apply, and

(b)in a case where any of the relevant land is in a clearance area, that area had not been declared to be a clearance area,

but in all other respects the acquisition had been effected in the circumstances in which it actually is effected.

(2)Where section 585 applies in relation to a compulsory acquisition of land which consists of or includes the whole or part of a house and—

(a)on the date of the making of the compulsory purchase order the person then entitled to the relevant interest was, in right of that interest, in occupation of the house, or part of it, as a private dwelling, and

(b)that person either continues, on the date of service of the notice to treat, to be entitled to the relevant interest, or if he has died before that date, continued to be entitled to that interest immediately before his death,

the amount of the compensation payable in respect of the acquisition of that interest, together with any amount payable under Schedules 23 or 24 (payments for well maintained houses and houses which are owner-occupied or used for business purposes), shall not in any event be less than the gross value of the dwelling.

(3)The gross value of the dwelling for this purpose shall be determined as follows—

(a)if the dwelling constitutes the whole of the house, its gross value is that shown in the valuation list in force on the date of service of the notice to treat as the gross value of the house for rating purposes;

(b)if the dwelling is only part of the house, its gross value is the amount certified by the district valuer as being properly attributable to the dwelling on an apportionment of the gross value of the house as determined under paragraph (a).

(4)The gross value of a dwelling whose rateable value is by virtue of subsection (1) of section 19 of the [1967 c. 9.] General Rate Act 1967 to be taken to be its next annual value, as ascertained in accordance with subsections (2) to (4) of that section, shall be taken to be its corresponding gross value.

(5)The corresponding gross value means a gross value which would be equivalent to the net annual value of the dwelling as shown in the valuation list if there were deducted any amount that by virtue of an order made or falling to be treated as made under section 19(2) of the General Rate Act 1967 would be deducted from the gross value of the dwelling if it had been required to be assessed to its gross value instead of its net annual value.

(6)If more than one value is so ascertained to be the corresponding gross value, the highest value so ascertained shall be taken.

590Repayment on revocation of demolition or closing order.

(1)Where a payment in respect of a house has been made by a local housing authority under Schedule 23 or 24 in connection with a demolition or closing order and—

(a)the demolition order is revoked under section 274 (revocation of demolition order to permit reconstruction of house), or

(b)the closing order is determined under section 278 (determination of closing order on premises being rendered fit),

then, if at that time the person to whom the payment was made is entitled to an interest in the house, he shall on demand repay the payment to the authority.

(2)In subsection (1) “interest” in the house does not include the interest of a tenant for a year or any less period or of a statutory tenant.

(3)Where by virtue of section 278 a closing order is determined as respects part of the premises to which it relates and—

(a)a payment has been made by the local housing authority in respect of the premises in pursuance of Schedule 23 or 24, and

(b)if the order and payment had related only to that part of the premises any person would by virtue of subsection (1) have been liable on demand to repay the payment to the authority,

that person shall on demand pay to the authority an amount equal to the appropriate fraction of the payment.

(4)The appropriate fraction of the payment is, except where subsection (5) applies, the fraction obtained by dividing the rateable value of the part of the premises in question by the rateable value of the premises.

(5)If the payment was reduced in pursuance of paragraph 4(3) of Part I of Schedule 24 (reduction where part of premises not occupied for purposes of private dwelling), the appropriate fraction is the fraction obtained by dividing the rateable value of so much of the part of the premises in question as was used for the purposes of a private dwelling by the rateable value of so much of the premises as was so used.

(6)For the purposes of subsections (4) and (5) the rateable value of premises or a portion of them is—

(a)if the premises or portion are a hereditament for which a rateable value is shown in the valuation list in force on the date on which the closing order was made, that rateable value;

(b)if the premises or portion form part only of such a hereditament, or consist of or form part of more than one such hereditament, such value as is found by a proper apportionment or aggregation of the rateable value or values shown;

and any question arising as to the proper apportionment or aggregation of any value or values shall be referred to and determined by the district valuer.

591Modifications of obligations under mortgages etc.

(1)This section applies where—

(a)a house is purchased at site value in accordance with section 585 (site value compensation for unfit houses), or

(b)is vacated in pursuance of a demolition or closing order under section 265 (unfit houses beyond repair at reasonable cost), or

(c)might have been the subject of such a demolition order but is vacated and demolished in pursuance of an undertaking for its demolition given to the local housing authority.

(2)Where this section applies and a relevant interest in the house is subject to a mortgage or charge, or to an agreement to purchase by instalments, either party to the mortgage, charge or agreement may apply to the county court which may, after giving the other party an opportunity to be heard, make an order—

(a)in the case of a house which has been purchased compulsorily, discharging or modifying any outstanding liabilities of the holder of the interest by virtue of any bond, covenant or other obligation with respect to the debt secured by the mortgage or charge or by virtue of the agreement, or

(b)in the case of a house vacated in pursuance of a demolition or closing order, or of an undertaking, discharging or modifying the terms of the mortgage, charge or agreement,

and in either case either unconditionally or subject to such terms and conditions, including conditions with respect to the payment of money, as the court may think just and equitable to impose.

(3)An interest is a relevant interest for the purposes of this section if—

(a)a payment in respect of it falls to be made under Part I of Schedule 24 (payments in respect of owner-occupied houses), and

(b)it is subject to the mortgage, charge or agreement, at the date when the house is purchased compulsorily or, as the case may be, vacated.

(4)An interest is also a relevant interest for the purposes of this section if—

(a)it is an interest in right of which, at the date of the making of the compulsory purchase or other order, or the giving of the undertaking, a person occupies the whole or part of the house as a private dwelling, and

(b)that person continues to own the interest until the end of the period mentioned in subsection (5), and

(c)the interest is subject to the mortgage, charge or agreement throughout that period.

(5)The period referred to in subsection (4) is the period from the date of the making of the compulsory purchase or other order, or the giving of the undertaking to—

(a)in the case of a compulsory purchase order, the date of service of notice to treat (or deemed notice to treat) for purchase of the interest or, if the purchase is effected without service of notice to treat, the date of completion of the purchase, and

(b)in the case of any other order or of an undertaking, the date of vacation of the house in pursuance of the order or undertaking,

or, if the owner of the interest died before the date specified in paragraph (a) or (b), to the date of death.

(6)In this section—

• “house” includes any building constructed or adapted wholly or partly as, or for the purposes of, a dwelling; and

• “interest” in a house does not include the interest of a tenant for a year or any less period or of a statutory tenant.

592Factors to be considered in proceedings under s. 591.

(1)In determining what order, if any, to make under section 591 (modification of obligations under mortgage, &c.) the court shall have regard to all the circumstances of the case, and in particular to the following matters.

(2)In the case of a mortgage or charge the court shall have regard to whether the mortgagee or person entitled to the benefit of the charge acted reasonably in advancing the principal sum on the terms of the mortgage or charge; and that person shall be deemed to have acted unreasonably if, at the time when the mortgage or charge was made, he knew or ought to have known that in all the circumstances of the case the terms of the mortgage or charge did not afford sufficient security for the principal sum advanced.

(3)In the case of a mortgage or charge the court shall have to regard to the extent to which the house may have become unfit for human habitation owing to default on the part of the mortgagor or person entitled to the interest charged in carrying out any obligation under the terms of the mortgage or charge with respect to the repair of the house.

(4)In the case of a mortgage or charge securing a sum which represents all or any part of the purchase price payable for the interest, the court shall have regard to whether the purchase price was excessive.

(5)In the case of an agreement to purchase by instalments the court shall have regard to how far—

(a)the amount already paid by way of principal, or

(b)where the house has been purchased compulsorily the aggregate of that amount and so much, if any, of the compensation in respect of the compulsory purchase as falls to be paid to the vendor,

represents an adequate price for the purchase.

Other land compensation matters

593Compensation where compulsory purchase order deemed to be made under different provision.

Where a compulsory purchase order under section 290 (acquisition of land for clearance) is to be treated as made under Part II of this Act (provision of housing) or Part VI of the [1971 c. 78.] Town and Country Planning Act 1971 (planning purposes) by virtue of—

• section 305(6)(b) (building becoming listed when subject to compulsory purchase for clearance), or

• paragraph 5(3) of Schedule 11 (building in clearance area in respect of which rehabilitation order is made),

compensation for the compulsory acquisition of the land comprised in the compulsory purchase order shall be assessed in accordance with the provisions applying to a compulsory acquisition under Part II of this Act or Part VI of the 1971 Act, as the case may be.

594Compensation where land deemed to be appropriated for purposes of Part II.

(1)This section applies where an interest in land in a clearance area is, by virtue of—

• section 305(6)(a) (building becoming listed when subject to compulsory purchase for clearance),

• section 306(2) (building becoming listed when acquired by agreement for clearance), or

• paragraph 6 of Schedule 11 (building in respect of which rehabilitation order is made),

to be treated as appropriated for the purposes of Part II (provision of housing).

(2)Compensation for the compulsory acquisition of the interest shall, where it increases the amount, be assessed to re-assessed in accordance with the provisions applying to a compulsory acquisition under Part II.

(3)Where the interest is acquired by agreement (after the declaration of the clearance area), compensation shall, where subsection (2) would have increased the amount, be assessed and paid as if the acquisition were a compulsory acquisition under section 290 (acquisition of land for clearance) to which subsection (2) above applied; but there shall be deducted from the amount of compensation so payable any amount previously paid in respect of the acquisition of that interest by the authority.

(4)Where subsection (2) or (3) applies, the local housing authority shall not later than six months after (as the case may be)—

(a)the relevant date as defined in section 305(3), or

(b)the date on which the rehabilitation order becomes operative in accordance with paragraph 14 of Schedule 11,

serve on the person entitled to the compensation a notice in the prescribed form giving particulars of the amount of compensation payable in accordance with the provisions applying to a compulsory acquisition under Part II.

(5)If the person served does not, within 21 days from service of the notice, accept the particulars, or if he disputes the amount stated, the question of disputed compensation shall be referred to the Lands Tribunal.

(6)References in this section to an increase in compensation shall be read as if payments under—

• Schedule 23 (payments for well maintained houses),

• Schedule 24 (payments in respect of houses which are owner-occupied or used for business purposes), and

• section 37 of the [1973 c. 26.] Land Compensation Act 1973 (disturbance payments for persons without compensatable interests),

and any extra-statutory payments by way of additional compensation were, to the extent that they were made to the person holding the interest in question, compensation in respect of the compulsory purchase.

595Application of other enactments where s. 594 applies.

(1)Section 30 of the [1965 c. 56] Compulsory Purchase Act 1965 (service of notices) applies to the notice to be served under section 594(4) (notice of particulars of compensation).

(2)Section 594(2) shall be left out of account in considering whether under section 22 of the Compulsory Purchase Act 1965 (procedure for acquiring interest mistakenly omitted from purchase) compensation has been properly paid for the land, and accordingly does not prevent an acquiring authority from remaining in undisputed possession of the land.

(3)Where section 594(2) makes an increase in compensation to be assessed in accordance with Schedule 2 to the Compulsory Purchase Act 1965 (absent and untraced owners)—

(a)a deed poll executed under paragraph 2(2) of that Schedule before the latest date for service of a notice under section 594(4) is not invalid because the increase in compensation has not been paid, and

(b)the local housing authority, shall not later than six months after that date, proceed under that Schedule to pay the proper additional amount into court.

(4)A sum payable by virtue of section 594 carries interest at the rate prescribed under section 32 of the [1961 c. 33.] Land Compensation Act 1961 from the time of entry on the land by the local housing authority, or from vesting of the land or interest, whichever is the earlier, until payment.

596Power to compensate shop-keepers in areas affected by clearance.

Where, as a result of action taken by a local housing authority under the provisions of Part IX relating to clearance areas, the population of the locality is materially decreased, the authority may pay to any person carrying on a retail shop in the locality such reasonable allowance as they think fit towards any loss involving personal hardship which in their opinion he will thereby sustain, but in estimating any such loss they shall have regard to the probable future development of the locality.

597Compensation payable on demolition of obstructive building.

(1)Where a building is demolished under section 287 (execution of obstructive building order), whether by the owner or by the local housing authority, compensation shall be paid by the authority to the owner in respect of loss arising from the demolition.

(2)The compensation shall be assessed in accordance with Part I of the [1961 c. 33.] Land Compensation Act 1961 (determination of questions of disputed compensation).

(3)In assessing the compensation no allowance shall be made on account of the demolition being compulsory.

598Disregard of things done to obtain increased compensation.

Section 4 of the [1981 c. 67.] Acquisition of Land Act 1981 (disregard of things done to obtain increased compensation) applies in relation to compulsory purchase under section 290 (acquisition of land for clearance).

599Application of compensation due to another local authority.

Compensation payable in respect of land of another local authority in pursuance of a compulsory purchase under—

• section 17 (provision of housing),

• section 192 (house subject to repair notice found to be beyond repair),

• section 290 (acquisition of land for clearance), or

• section 300 (purchase of condemned house for temporary housing use)

which would otherwise be paid into court in accordance with Schedule 1 to the [1965 c. 56.] Compulsory Purchase Act 1965 (purchase from persons not having power to dispose) may, if the Secretary of State consents, instead be paid and applied as he may determine.

Supplementary provisions

600Powers of entry.

(1)A person authorised by the local housing authority or the Secretary of State may at any reasonable time, on giving 24 hours' notice of his intention to the occupier, and to the owner if the owner is known, enter premises for the purpose of survey and examination where it appears to the authority or the Secretary of State that survey or examination is necessary in order to determine whether any powers under this Part should be exercised in respect of the premises.

(2)An authorisation for the purposes of this section shall be in writing stating the particular purpose or purposes for which the entry is authorised.

601Penalty for obstruction.

(1)It is a summary offence to obstruct an officer of the local housing authority or of the Secretary of State, or any person authorised to enter premises in pursuance of this Part, in the performance of anything which he is by this Part required or authorised to do.

(2)A person committing such an offence is liable on conviction to a fine not exceeding level 2 on the standard scale.

602Minor definitions.

In this Part—

• “house” includes any yard, garden, outhouses and appurtenances belonging to the house or usually enjoyed with it;

• “owner” in relation to premises—

  (a)

  means a person (other than a mortgagee not in possession) who is for the time being entitled to dispose of the fee simple in the premises, whether in possession or in reversion, and

  (b)

  includes also a person holding or entitled to the rents and profits of the premises under a lease of which the unexpired term exceeds three years.

603Index of defined expressions: Part XVII.

The following Table shows provisions defining or otherwise explaining expressions used in this Part (other than provisions defining or otherwise explaining an expression used in the same section or paragraph):