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(1)Where section 291 (method of dealing with land acquired for clearance) applies to a building purchased by the local housing authority by agreement and the building becomes a listed building, the authority may, within the period of three months beginning with the date on which the building becomes a listed building, apply to the Secretary of State (and only to him) under section 55 of the [1971 c. 78.] Town and Country Planning Act 1971 for his consent to the demolition of the building.
(2)Where such an application is made and is refused, or the period for making such an application expires without the authority making an application—
(a)the authority shall cease to be subject to the duty imposed by section 291 to demolish the building, and
(b)the building shall be treated in the case of a house as appropriated to the purposes of Part II of this Act (provision of housing accommodation) and in any other case as appropriated to the purposes of Part VI of the Town and Country Planning Act 1971 (planning purposes).
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