Land Compensation Act 1973

Disturbance payments E+W

37 Disturbance payments for persons without compensatable interests. E+W

(1) Where a person is displaced from any land in consequence of—

(a) the acquisition of the land by an authority possessing compulsory purchase powers;

[F1 (b) the making of a housing order in respect of a house or building on the land;]

(c) where the land has been previously acquired by an authority possessing compulsory purchase powers or appropriated by a local authority and is for the time being held by the authority for the purposes for which it was acquired or appropriated, the carrying out of [F2 any improvement to a house or building on the land or of] redevelopment on the land,

(d) [F3 the carrying out of any improvement to a house or building on the land or of re-development on the land by a housing association which has previously acquired the land and at the date of the displacement is [F4 either a private registered provider of social housing or] [F5 a registered social landlord within the meaning of the Housing Act 1985 (see section 5(4) and (5) of that Act)];]

he shall, subject to the provisions of this section, be entitled to receive a payment (hereafter referred to as a “disturbance payment”) from

[F6 (i) where paragraph (a) above applies, the acquiring authority;

(ii) where paragraph (b) above applies, the authority who made [F7 the housing order;]

(iii) where paragraph (c) above applies, the authority carrying out the improvement or redevelopment; and

(iv) where paragraph (d) above applies, the housing association carrying out the improvement or redevelopment.]

(2) A person shall not be entitled to a disturbance payment—

(a) in any case, unless he is in lawful possession of the land from which he is displaced;

(b) in a case within subsection (1)(a) above, unless either—

(i) he has no interest in the land for the acquisition or extinguishment of which he is (or if the acquisition or extinguishment were compulsory would be) entitled to compensation under any other enactment; or

(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F8

(c) in a case within subsection (1)(b) above, if he is entitled to [F9 a payment under section 584A(1) of the Housing Act 1985 (compensation payable in case of [F10 prohibition] and demolition orders)].

[F11 (d) in a case within subsection (1)(d) above, unless the M1 displacement occurred on or after 31st July 1974 (on which date the Housing Act 1974 was passed). ]

F12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) For the purposes of subsection (1) above a person shall not be treated as displaced in consequence of any such acquisition [F13 improvement or redevelopment as is mentioned in paragraph (a), (c) or (d)] of that subsection unless he was in lawful possession of the land—

(a) in the case of land acquired under a compulsory purchase order, at the time when notice was first published of the making of the compulsory purchase order prior to its submission for confirmation or, where the order did not require confirmation, of the preparation of the order in draft;

(b) in the case of land acquired under an Act specifying the land as subject to compulsory acquisition, at the time when the provisions of the Bill for that Act specifying the land were first published;

(c) in the case of land acquired by agreement, at the time when the agreement was made;

and a person shall not be treated as displaced in consequence of [F14 a housing order within paragraph (b) of that subsection unless he was in lawful possession as aforesaid at the time when the order was made.]

[F15 (3A) For the purposes of subsection (1) above a person shall not be treated as displaced in consequence of [F16 the carrying out of any improvement to a house or building unless he is permanently displaced in consequence of the carrying out of that improvement.]

(4) Where a person is displaced from land in circumstances such that, apart from this subsection, he would be entitled to a disturbance payment from any authority and also to compensation from that authority under section 37 of the M2 Landlord and Tenant Act 1954 (compensation from landlord where order for new tenancy of business premises precluded on certain grounds) he shall be entitled, at his option, to one or the other but not to both.

( 5 ) Where a person is displaced from any land as mentioned in subsection (1) above but is not entitled, as against the authority there mentioned, to a disturbance payment or to compensation for disturbance under any other enactment, the authority may, if they think fit, make a payment to him determined in accordance with section 38(1) to (3) below.

(6) A disturbance payment shall carry interest, at the rate for the time being prescribed under section 32 of the M3 Land Compensation Act 1961. . . F17 , from the date of displacement until payment.

(7) This section does not apply to any land which is used for the purposes of agriculture.

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F18

(9) In this section “a housing order. . . F17 F19 ...”[F20 “improvement”] and “redevelopment” have the same meaning as in section 29 above.

(10) This section applies if the date of displacement is on or after 17th October 1972.]

Textual Amendments

F1 S. 37(1)(b) substituted (6.4.2006 for E., 16.6.2006 for W.) by Housing Act 2004 (c. 34), s. 270(4)(5)(f), Sch. 15 para. 5(2)(a); S.I. 2006/1060, art. 2(1)(d) (with Sch.); S.I. 2006/1535, art. 2(b) (with Sch.)

F2 Words inserted by Housing Act 1974 (c. 44), s. 130, Sch. 13 para. 39(1)(b)

F3 S. 37(1)(d) substituted by Housing (Consequential Provisions) Act 1985 (c. 71, SIF 61), s. 4, Sch. 2 para. 24(3)(b)

F4 Words in s. 37(1)(d) inserted (1.4.2010) by The Housing and Regeneration Act 2008 (Consequential Provisions) Order 2010 (S.I. 2010/866), art. 1(2), Sch. 2 para. 6 (with art. 6, Sch. 3)

F5 Words in s. 37(1)(d) substituted (1.10.1996) by S.I. 1996/2325, art. 5(1), Sch. 2 para. 3(3)

F6 Paras. (i) to (iv) substituted for words by Housing Act 1974 (c. 44), s.130, Sch. 13 para. 39(1)(d)

F7 Words in s. 37(1)(ii) substituted (6.4.2006 for E., 16.6.2006 for W.) by Housing Act 2004 (c. 34), s. 270(4)(5)(f), Sch. 15 para. 5(2)(b); S.I. 2006/1060, art. 2(1)(d) (with Sch.); S.I. 2006/1535, art. 2(b) (with Sch.)

F8 S. 37(2)(b)(ii) repealed by Local Government and Housing Act 1989 (c. 42, SIF 81:1), s. 194(4), Sch. 12 Pt. II

F9 Words substituted by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 194(1), Sch. 11 para. 31

F10 Word in s. 37(2)(c) substituted (6.4.2006 for E., 16.6.2006 for W.) by Housing Act 2004 (c. 34), s. 270(4)(5)(f), Sch. 15 para. 5(3); S.I. 2006/1060, art. 2(1)(d) (with Sch.); S.I. 2006/1535, art. 2(b) (with Sch.)

F11 S. 37(2)(d) added by Housing Rents and Subsidies Act 1975 (c. 6), s. 17(4), Sch. 5 para. 10(b) and continued by virtue of Housing (Consequential Provisions) Act 1985 (c. 71, SIF 61), s. 4, Sch. 2 para. 24(3)(d)

F12 Words repealed by Housing (Consequential Provisions) Act 1985 (c. 71, SIF 61), s. 3, Sch. 1 Pt. I

F13 Words substituted by Housing Act 1974 (c. 44), s. 130, Sch. 13 para. 39(2)

F14 Words in s. 37(3) substituted (6.4.2006 for E., 16.6.2006 for W.) by Housing Act 2004 (c. 34), s. 270(4)(5)(f), Sch. 15 para. 5(4); S.I. 2006/1060, art. 2(1)(d) (with Sch.); S.I. 2006/1535, art. 2(b) (with Sch.)

F15 S. 37(3A) inserted by Housing Act 1974 (c. 44), s. 130, Sch. 13 para. 39(3)

F16 Words in s. 37(3A) substituted (6.4.2006 for E., 16.6.2006 for W.) by Housing Act 2004 (c. 34), s. 270(4)(5)(f), Sch. 15 para. 5(5); S.I. 2006/1060, art. 2(1)(d) (with Sch.); S.I. 2006/1535, art. 2(b) (with Sch.)

F17 Words repealed by Land Compensation (Scotland) Act 1973 (c. 56), Sch. 2 Pt. I

F18 Ss. 32(9), 34(7), 37(8), 41(11), 44(3), 46(8) repealed by Land Compensation (Scotland) Act 1973 (c. 56), Sch. 2 Pt. I

F19 Words in s. 37(9) repealed (6.4.2006 for E., 16.6.2006 for W.) by Housing Act 2004 (c. 34), s. 270(4)(5)(f), Sch. 15 para. 5(6), 16; S.I. 2006/1060, art. 2(1)(d)(e) (with Sch.); S.I. 2006/1535, art. 2(b)(c) (with Sch.)

F20 Word inserted by Housing Act 1974 (c. 44), s. 130, Sch. 13 para. 39(4)

Modifications etc. (not altering text)

C1 S. 37(5) excluded by Conwy Tunnel (Supplementary Powers) Act 1983 (c. 7, SIF 59), s. 14(7)

S. 37(5) modified (5.11.1993) by 1993 c. 42, s. 2, Sch. 2 para. 5(7) (with s. 30(1), Sch. 2 para. 9).

Marginal Citations

M1 1974 c. 44.

M2 1954 c. 56.

M3 1961 c. 33.

38 Amount of disturbance payment. E+W

(1) The amount of a disturbance payment shall be equal to—

(a) the reasonable expenses of the person entitled to the payment in removing from the land from which he is displaced; and

(b) if he was carrying on a trade or business on that land, the loss he will sustain by reason of the disturbance of that trade or business consequent upon his having to quit the land.

(2) In estimating the loss of any person for the purposes of subsection (1)(b) above, regard shall be had to the period for which the land occupied by him may reasonably have been expected to be available for the purposes of his trade or business and to the availability of other land suitable for that purpose.

This subsection has effect subject to section 46(7) below.

(3) Where the displacement is from a dwelling in respect of which structural modifications have been made for meeting the special needs of a disabled person (whether or not the person entitled to the disturbance payment) then, if—

(a) a local authority [F21 in England having functions under Part 1 of the Care Act 2014 or a local authority in Wales] having functions under [F22 Part 4 of the Social Services and Well-being (Wales) Act 2014] , F23 . . . , provided assistance, or

(b) such an authority would, if an application had been made, have provided assistance,

for making those modifications, the amount of the disturbance payment shall include an amount equal to any reasonable expenses incurred by the person entitled to the payment in making, in respect of a dwelling to which the disabled person removes, comparable modifications which are reasonably required for meeting the disabled person’s special needs.

(4) Any dispute as to the amount of a disturbance payment shall be referred to and determined by the [F24 Upper Tribunal] F23 . . . .

Textual Amendments

F21 Words in s. 38(3)(a) inserted (1.4.2015) by The Care Act 2014 and Children and Families Act 2014 (Consequential Amendments) Order 2015 (S.I. 2015/914), art. 1(2), Sch. para. 24 (with arts. 1(3), 3)

F22 Words in s. 38(3)(a) substituted (6.4.2016) by The Social Services and Well-being (Wales) Act 2014 (Consequential Amendments) Regulations 2016 (S.I. 2016/413), regs. 2(1), 31

F23 Words repealed by Land Compensation (Scotland) Act 1973 (c. 56), Sch. 2 Pt. I

F24 Words in s. 38(4) substituted (1.6.2009) by The Transfer of Tribunal Functions (Lands Tribunal and Miscellaneous Amendments) Order 2009 (S.I. 2009/1307), art. 1, Sch. 1 para. 107 (with Sch. 5)