Water Act 1989

Compensation for works other than street works

6 (1) If the value of any interest in any relevant land is depreciated by virtue of the exercise by the Authority, or by any water undertaker or sewerage undertaker, of any power conferred by virtue of paragraph 4 or 5 above, the person entitled to that interest shall be entitled to compensation from the Authority or, as the case may be, the undertaker of an amount equal to the amount of the depreciation.

(2) Where the person entitled to an interest in any relevant land sustains loss or damage which—

(a) is attributable to the exercise by the Authority or by any water undertaker or sewerage undertaker of any power conferred by virtue of paragraph 4 or 5 above;

(b) does not consist in depreciation of the value of that interest; and

(c) is loss or damage for which he would have been entitled to compensation by way of compensation for disturbance, if his interest in that land had been compulsorily acquired under section 151 of this Act,

he shall be entitled to compensation from the Authority or, as the case may be, the undertaker in respect of that loss or damage, in addition to compensation under sub-paragraph (1) above.

(3) Where any damage to, or injurious affection of, any land which is not relevant land is attributable to the exercise by the Authority, or by any water undertaker or sewerage undertaker, of any power conferred by virtue of paragraph 4 or 5 above, the Authority or, as the case may be, the undertaker shall pay compensation in respect of that damage or injurious affection to every person entitled to an interest in that land.

(4) Any question of disputed compensation under this paragraph, shall be referred to and determined by the Lands Tribunal; and in relation to the determination of any such compensation the provisions of sections 2 and 4 of the [1961 c. 33.] Land Compensation Act 1961 shall apply, subject to any necessary modifications.

(5) For the purpose of assessing any compensation under this paragraph, so far as that compensation is in respect of loss or damage consisting in depreciation of the value of an interest in land, the rules set out in section 5 of the Land Compensation Act 1961 shall, so far as applicable and subject to any necessary modifications, have effect as they have effect for the purpose of assessing compensation for the compulsory acquisition of an interest in land.

(6) Where the interest in land in respect of which any compensation falls to be assessed in accordance with sub-paragraph (5) above is subject to a mortgage—

(a) the compensation shall be assessed as if the interest were not subject to the mortgage;

(b) a claim for compensation may be made by any mortgagee of the interest, but without prejudice to the making of a claim by the person entitled to the interest;

(c) no such compensation shall be payable in respect of the interest of the mortgagee (as distinct from the interest which is subject to the mortgage); and

(d) any such compensation which is payable in respect of the interest which is subject to the mortgage shall be paid to the mortgagee, or, if there is more than one mortgagee, to the first mortgagee, and shall in either case be applied by him as if it were proceeds of sale.

(7) Where, apart from this sub-paragraph, any person entitled to an interest in any land would be entitled under this paragraph to an amount of compensation in respect of any works, there shall be deducted from that amount an amount equal to the amount by which the carrying out of the works has enhanced the value of any other land which—

(a) is contiguous or adjacent to that land; and

(b) is land to an interest in which that person is entitled in the same capacity.

(8) The Secretary of State may by regulations make provision requiring the Authority or any water undertaker or sewerage undertaker, where it is proposing or has begun to exercise any power conferred by virtue of paragraph 4 or 5 above in a prescribed case, to make advance payments on account of compensation that will become payable in respect of the exercise of that power.

(9) In this paragraph “relevant land”, in relation to any exercise of a power conferred by virtue of paragraph 4 or 5 above, means the land where the power is exercised or land held with that land.