Housing Act 1985

389 Compensation payable to dispossessed proprietor.

(1) The local housing authority shall pay compensation to the dispossessed proprietor—

(a) in respect of the period during which the control order is in force, at a rate calculated in accordance with Part II of Schedule 13 by reference to the rateable value of the house;

(b) in respect of a period during which the authority have the right to possession of furniture in pursuance of section 383 (house subject to furnished letting when control order made), at such rate as the parties agree or is determined in default of agreement by the rent tribunal for the district in which the house is situated.

(2) Compensation accrues from day to day (and is apportionable in respect of time accordingly) and is payable by quarterly instalments, the first instalment being payable three months after the date when the control order comes into force.

(3) If at the time when compensation accrues due the estate or interest of the dispossessed proprietor or, as the case may be, the furniture in question is subject to a mortgage or charge, the compensation is also comprised in the mortgage or charge.