Housing Act 1957

10 Where a local authority are authorised to purchase compulsorily any house to be used for housing purposes under section forty-eight of this Act, and have acquired the right to enter on and take possession of the house by virtue of having served a notice under the last foregoing paragraph, the authority 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 any part thereof authorising him to continue in occupation upon terms specified in the notice, or on such other terms as may be agreed ; and accordingly, where the authority proceed in the manner authorised by this paragraph—

(a) the like consequences shall then ensue, with respect to the determination of the rights and liabilities of any person arising out of any interest of his in the house or any part thereof, as would have ensued if the authority had taken actual possession on the date of the notice, and the authority may deal with the premises in all respects as if they had done so ; and

(b) for the purposes of section one hundred and twenty-one of the Lands Clauses Consolidation Act, 1845 (which provides for payment of compensation to persons entitled to possession under short tenancies who are required to give up possession), any person who by virtue of this paragraph ceases to be entitled to receive rent in respect of any premises shall be deemed to have been required to give up possession thereof.