Housing Act 1985

PART I Payments in Respect of Owner-Occupied Houses

Introductory.

1 (1) This Part of this Schedule applies where a house—

(a) has been acquired at site value in accordance with section 585 (site value compensation for unfit houses acquired), or

(b) has been vacated in pursuance of a demolition order 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) The “relevant date” for the purposes of this part of this Schedule is—

(a) if the house was purchased compulsorily under section 192 (house subject to repair notice found to be beyond repair), the date when the notice mentioned in that section was served;

(b) if the house was vacated in pursuance of a demolition order or closing order, the date when the order was made;

(c) if the house was demolished in pursuance of an undertaking given in accordance with section 264, the date when the undertaking was given;

(d) if the house was comprised in an area declared as a clearance area under section 289, the date when the area was so declared;

(e) if the house was purchased compulsorily in pursuance of a notice served under section 300 (purchase of condemned house for temporary housing use), the date when the notice was served.

Right to payment: main cases.

2 (1) Where this Part of this Schedule applies and—

(a) on the relevant date and throughout the period of two years ending with that date the house was wholly or partly occupied as a private dwelling, and

(b) the person so occupying it (or, if during that period it was so occupied by two or more persons in succession, each of those persons) was a person entitled to an interest in the house or a member of the family of a person so entitled,

the local housing authority shall make in respect of that interest a payment of an amount determined in accordance with the following provisions of this Part of this Schedule.

(2) The authority shall also make such a payment where an interest in the house was acquired by a person less than two years before the relevant date if—

(a) the conditions specified in sub-paragraph (1) were met for the period beginning with the acquisition and ending with the relevant date,

(b) the authority are satisfied that before acquiring the interest he made all reasonable inquiries to ascertain whether it was likely that the notice, order, undertaking or declaration in question would be served, made or given within two years of the acquisition, and that he had no reason to believe that it was likely, and

(c) the person entitled to the interest when the house is purchased or vacated is the person mentioned above or a member of his family.

(3) For the purposes of this paragraph a person previously in occupation of the whole or part of the house who, during a part of the qualifying period amounting (or parts together amounting) to not more than one year, was not in occupation by reason only of—

(a) a posting in the course of his duties as a member of the armed forces of the Crown, or

(b) a change in the place of his employment or occupation,

shall be deemed to have continued in occupation during that part or those parts.

Right to payment: occupation before 13th December 1955.

3 (1) Where this Part of this Schedule applies and—

(a) on 13th December 1955 the house was wholly or partly occupied as a private dwelling,

(b) the person so occupying it was (or was a member of the family of) a person who acquired an interest in the house by purchase for value on or after 1st September 1939 and either before 13th December 1955 or before the relevant date, and

(c) at the date when the house was purchased or vacated that person or a member of his family was entitled to an interest in the house,

the local housing authority shall make in respect of that interest a payment of an amount determined in accordance with the following provisions of this Part of this Schedule.

(2) Where a person ceased to occupy a house or part of a house not more than one year before 13th December 1955 by reason only of—

(a) a posting in the course of his duties as member of the armed forces of the Crown, or

(b) a change in the place of his employment or occupation,

sub-paragraph (1) has effect as if he had occupied the house or part on that day in like manner as immediately before he ceased to occupy it.

(3) This paragraph applies only where no payment falls to be made under paragraph 2.

Amount of payment.

4 (1) The amount of the payment to be made in respect of an interest is its full compulsory purchase value less the compensation which was or would have been payable in respect of the interest in connection with the compulsory purchase of the house at site value.

(2) For this purpose—

(a) “full compulsory purchase value” means the compensation which would be payable in respect of the compulsory purchase of that interest if it fell to be assessed in accordance with the [1961 c. 33.] Land Compensation Act 1961, and

(b) “site value” means compensation assessed in accordance with section 585.

(3) The amount payable shall be reduced by so much, if any, of the amount as may reasonably be attributed to any part of the house occupied, at the date of the making of the order in question or the giving of the undertaking, for any purposes other than those of a private dwelling.

(4) Any question as to the purposes for which any part of a house was occupied shall be determined by the Secretary of State; subject to that, the amount of any payment under this Part of this Schedule shall be determined (in default of agreement) as if it were compensation payable in respect of the compulsory purchase of the interest and shall be dealt with accordingly.

Supplementary provisions.

5 (1) In this Part of this Schedule—

• “house” includes any building constructed or adapted wholly or partly for use as 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.

(2) For the purposes of this Part of this Schedule a person who on the death of another became entitled to an interest of his shall be deemed to have been entitled to that interest as from the date of death.

(3) A payment under this Part of this Schedule in respect of an interest which, at the date when the house was purchased compulsorily or, as the case may be, vacated, was held by virtue of an agreement to purchase by instalments shall be made to the person entitled to the interest at that date.

6 (1) For the purposes of this Part of this Schedule a person is a member of another’s family if that person is—

(a) the other’s wife or husband, or

(b) a son or daughter or a son-in-law or daughter-in-law of the other, or of the other’s wife or husband, or

(c) the father or mother of the other, or of the other’s wife or husband.

(2) In sub-paragraph (1)(b) any reference to a person’s son or daughter includes a step-son or step-daughter and any illegitimate son or daughter of that person, and “son-in-law” and “daughter-in-law” shall be construed accordingly.