Housing Act 1985

589 Maximum 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.