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“584A Compensation payable in case of closing and demolition orders

(1) Subject to subsection (3), where a closing order under section 264 or a demolition order under section 265 is made in respect of any premises, the local housing authority shall pay to every owner of the premises an amount determined in accordance with subsection (2).

(2) The amount referred to in subsection (1) is the diminution in the compulsory purchase value of the owner’s interest in the premises as a result of the making of the closing order or, as the case may be, the demolition order; and that amount—

(a) shall be determined as at the date of the making of the order in question; and

(b) shall be determined (in default of agreement) as if it were compensation payable in respect of the compulsory purchase of the interest in question and shall be dealt with accordingly.

(3) In any case where—

(a) a closing order has been made in respect of any premises, and

(b) by virtue of section 279 (closing orders: substitution of demolition order), the closing order is revoked and a demolition order is made in its place,

the amount payable to the owner under subsection (1) in connection with the demolition order shall be reduced by the amount (if any) paid to the owner or a previous owner under that subsection in connection with the closing order.

(4) For the purposes of this section—

• “compulsory purchase value”, in relation to an owner’s interest in premises, 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 Land Compensation Act 1961; and

• “premises” has the meaning assigned by section 322 (minor definitions for the purposes of Part IX).

584B Repayment on revocation of demolition or closing order

(1) Where a payment in respect of any premises has been made by a local housing authority under section 584A(1) in connection with a demolition or closing order and—

(a) the demolition order is revoked under section 274 (revocation of demolition order to permit reconstruction of premises), or

(b) the closing order is determined under section 278 (determination of closing order on premises being rendered fit),

then, if at that time the person to whom the payment was made has the same interest in the premises as he had at the time the payment was made, he shall on demand repay to the authority the amount of the payment.

(2) In any case where—

(a) a payment in respect of any premises has been made by a local housing authority under section 584A(1) in connection with a closing order, and

(b) by virtue of section 278, the order is determined as respects part of the premises, and

(c) the person to whom the payment was made (in this section referred to as “the recipient”) had, at the time the payment was made, an owner’s interest in the part of the premises concerned (whether or not he had such an interest in the rest of the premises),

then, if at the time of the determination of the closing order the recipient has the same interest in the premises as he had at the time the payment was made, he shall on demand pay to the authority an amount determined in accordance with subsections (3), (4) and (5).

(3) The amount referred to in subsection (2) is whichever is the less of—

(a) the amount by which the value of the interest of the recipient in the premises increases as a result of the determination of the closing order; and

(b) the amount paid to the recipient under section 584A(1) in respect of his interest in the premises;

and the amount referred to in paragraph (a) shall be determined as at the date of the determination of the closing order.

(4) For the purpose of assessing the amount referred to in subsection (3)(a), 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.

(5) Any dispute as to the amount referred to in subsection (3)(a) shall be referred to and determined by the Lands Tribunal; and section 2 and subsections (1)(a) and (4) to (6) of section 4 of the Land Compensation Act 1961 shall, subject to any necessary modifications, apply for the purposes of this section as they apply for the purposes of that Act.

(6) In this section “premises” has the same meaning as in section 584A.”

76 Sections 585 to 595 (which concern site value compensation for unfit houses and related matters and certain other land compensation matters) shall cease to have effect.

77 Section 598 (disregard of things done to obtain increased compensation) shall cease to have effect.

78 In section 599 (application of compensation due to another local authority) the words from “section 192” to “beyond repair)” shall be omitted.

79 (1) In section 600 (powers of entry), in subsection (1) for the words “24 hours”' there shall be substituted “seven days”'.

(2) At the end of subsection (2) of that section there shall be added the words “and shall, if so required, be produced for inspection by the occupier or anyone acting on his behalf”.

80 (1) In section 601 (penalty for obstruction), in subsection (1) after the word “offence” there shall be inserted “intentionally”.

(2) In subsection (2) of that section for the words “level 2” there shall be substituted “level 3”.

81 In section 602 (minor definitions)—

(a) the definition of “house” shall be omitted; and

(b) in paragraph (b) of the definition of “owner” after the word “premises” there shall be inserted “or part of the premises”.

82 For section 603 (index of defined expressions: Part XVII) there shall be substituted the following section—

“603 Index of defined expressions: Part XVII

The following Table shows provisions defining or otherwise explaining expressions used in this Part (other than provisions defining or otherwise explaining an expression used in the same section or paragraph):—

Part V Amendments of Part XVIII

83 For section 604 there shall be substituted the following section—

“604 Fitness for human habitation

(1) Subject to subsection (2) below, a dwelling-house is fit for human habitation for the purposes of this Act unless, in the opinion of the local housing authority, it fails to meet one or more of the requirements in paragraphs (a) to (i) below and, by reason of that failure, is not reasonably suitable for occupation,—

(a) it is structurally stable;

(b) it is free from serious disrepair;

(c) it is free from dampness prejudicial to the health of the occupants (if any);

(d) it has adequate provision for lighting, heating and ventilation;

(e) it has an adequate piped supply of wholesome water;

(f) there are satisfactory facilities in the dwelling-house for the preparation and cooking of food, including a sink with a satisfactory supply of hot and cold water;

(g) it has a suitably located water-closet for the exclusive use of the occupants (if any);

(h) it has, for the exclusive use of the occupants (if any), a suitably located fixed bath or shower and wash-hand basin each of which is provided with a satisfactory supply of hot and cold water; and

(i) it has an effective system for the draining of foul, waste and surface water;

and any reference to a dwelling-house being unfit for human habitation shall be construed accordingly.

(2) Whether or not a dwelling-house which is a flat satisfies the requirements in subsection (1), it is unfit for human habitation for the purposes of this Act if, in the opinion of the local housing authority, the building or a part of the building outside the flat fails to meet one or more of the requirements in paragraphs (a) to (e) below and, by reason of that failure, the flat is not reasonably suitable for occupation,—

(a) the building or part is structurally stable;

(b) it is free from serious disrepair;

(c) it is free from dampness;

(d) it has adequate provision for ventilation; and

(e) it has an effective system for the draining of foul, waste and surface water.

(3) Subsection (1) applies in relation to a house in multiple occupation with the substitution of a reference to the house for any reference to a dwelling-house.

(4) Subsection (2) applies in relation to a flat in multiple occupation with the substitution for any reference to a dwelling-house which is a flat of a reference to the flat in multiple occupation.

(5) The Secretary of State may by order amend the provisions of subsection (1) or subsection (2) in such manner and to such extent as he considers appropriate; and any such order—

(a) may contain such transitional and supplementary provisions as the Secretary of State considers expedient; and

(b) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.”

84 After that section there shall be inserted the following section—

“604A Authority to consider guidance given by Secretary of State in deciding whether to take action under section 189, section 264, section 265 or section 289

(1) In deciding for the purposes of sections 189, 264, 265 and 289 whether the most satisfactory course of action, in respect of any dwelling-house, house in multiple occupation or building, is, if applicable,—

(a) serving notice under subsection (1) of section 189; or

(b) serving notice under subsection (1A) of that section; or

(c) making a closing order under subsection (1) of section 264; or

(d) making a closing order under subsection (2) of that section with respect to the whole or a part of the building concerned; or

(e) making a demolition order under subsection (1) of section 265; or

(f) making a demolition under subsection (2) of that section; or

(g) declaring the area in which the dwelling-house, house in multiple occupation or building is situated to be a clearance area in accordance with section 289;

the local housing authority shall have regard to such guidance as may from time to time be given by the Secretary of State.

(2) The Secretary of State may give guidance under subsection (1) to authorities generally or may give different guidance to different descriptions of authority or to authorities in different areas; and, without prejudice to the matters in respect of which the Secretary of State may give guidance, he may, in particular, give guidance in respect of financial and social considerations to be taken into account by authorities.

(3) Where the Secretary of State proposes to give guidance under subsection (1), or to revise guidance already given, he shall lay a draft of the proposed guidance or alterations before each House of Parliament and—

(a) he shall not give the guidance or revise the guidance until after the expiration of the period of forty days beginning with the day on which the draft is laid (or, if copies are laid before each House of Parliament on different days, with the later of those days); and

(b) if within that period either House resolves that the guidance or alterations be withdrawn he shall not proceed with the proposed alterations (but without prejudice to the laying of a further draft).

(4) In computing for the purposes of subsection (3) the period of forty days no account shall be taken of any time during which Parliament is dissolved or prorogued or during which both Houses are adjourned for more than four days.”

85 For section 605 there shall be substituted the following section—

“605 Consideration by local housing authority of housing conditions in their district

(1) The local housing authority shall at least once in each year consider the housing conditions in their district with a view to determining what action to take in performance of their functions under—

(a) Part VI (repair notices);

(b) Part IX (slum clearance);

(c) Part XI (houses in multiple occupation);

(d) Part VII of the Local Government and Housing Act 1989 (renewal areas); and

(e) Part VIII of that Act (grants towards cost of improvements and repairs etc.).

(2) For the purposes of carrying out their duty under subsection (1), the authority and their officers shall comply with any directions the Secretary of State may give and shall keep such records and supply him with such information as he may specify.”

86 In section 606 (reports on particular houses or areas), for the word “house”, in each place where it occurs, there shall be substituted “dwelling-house or house in multiple occupation”.

87 In section 608 (acquisition of ancient monuments etc.), in paragraph (a) the words from “section 192” to “beyond repair) or” shall be omitted.

88 In section 610 (power of court to authorise conversion of houses into flats), in subsection (1)—

(a) for the words “a house” there shall be substituted “any premises”;

(b) for the word “house”, in each subsequent place where it occurs, there shall be substituted “premises”; and

(c) in paragraph (a) for the words “is situated, it” there shall be substituted “are situated, they” and for the words “tenement” and “tenements” there shall be substituted “dwelling-house” and “dwelling-houses” respectively.

89 In section 612 (exclusion of Rent Act protection) for the word “house” there shall be substituted “dwelling-house”.

90 (1) In section 623 (minor definitions: Part XVIII), for the definition of “house” there shall be substituted—

““dwelling-house” and “flat”, except in the expression “flat in multiple occupation”, shall be construed in accordance with subsection (2);

“house in multiple occupation” and “flat in multiple occupation” have the same meaning as in Part XI;”.

(2) At the end of that section there shall be inserted the following subsection—

“(2) For the purposes of this Part, “dwelling-house” includes any yard, garden, outhouses and appurtenances belonging to it or usually enjoyed with it and section 183 shall have effect to determine whether a dwelling-house is a flat.”

91 In section 624 (index of defined expressions: Part XVIII)—

(a) the entry beginning “house” shall be omitted; and

(b) at the appropriate places in alphabetical order there shall be inserted the following entries—