HC Deb 26 July 1984 vol 64 cc1340-2

Lords amendment: No. 14, after clause 7 insert the following new clause— .—(1) In any case where—

  1. (a) there was a disposal of an interest in a defect '.Eve dwelling, being an interest held by a person (in this section referred to as the "owner") w ho immediately before the time of disposal was eligible for assistance in respect of the dwelling,
  2. (b) the disposal was made to an authority possessing compulsory purchase powers otherwise than in pursuance of section 6 or 7 of this Act,
  3. (c) on the disposal, the authority acquired an interest in any affected land, that is to say, the defective dwelling and any garage, outhouse, garden, yard and appurtenances occupied with and used for the purposes of the dwelling or any part of it, and
  4. (d) the amount paid as consideration for the disposal did not include any amount attributable to the owner's right to apply for assistance in respect of the dwelling,
the owner is entitled, subject to the following provisions of this section, to be paid by the housing authority the amount (if any) by which ninety-five per cent. of the defect-free value exceeds the amount of compensation for the disposal. (2) For the purposes of this section, the amount of compensation for the disposal is—
  1. (a) the amount that would have been the proper amount of compensation for the disposal (having regard, where any relevant determination has been made by the lands Tribunal or the lands Tribunal for Scotland, to that determination), or
  2. (b) if greater, the amount paid as the consideration for the disposal,
but excluding any amount payable for disturbance or for any other matter not directly based on the value of land; and in this section the "defect-free value" means the amount that would have been the proper amount of compensation for the disposal (excluding any amount so payable) if none of the defective dwellings to which the designation in question related had been affected by the qualifying defect. (3) For the purposes of this section—
  1. (a) it is to be assumed that the disposal occurred on a compulsory acquisition (in cases where it did not in fact do so),
  2. (b) where the compensation for the disposal fell to be assessed by reference to the value of the land as a site cleared of buildings and available for development then, for the purpose of determining the defect-free value, it is to be assumed that the compensation did not fall to be so assessed, and
  3. (c) any amount which, apart from this paragraph, would be payable by a housing authority under subsection (1) above, shall be reduced by the amount of any payment made in respect of the defective dwelling under section 30 or 60 of the Housing Act 1957 or section 30 of the Housing (Scotland) Act 1974.
 (4) A housing authority are not required to make a payment to any person under this section unless he makes a written application to them for the payment before the end of the period of two years beginning with the time of disposal. (5) Where a housing authority refuse an application for a payment under this section on the grounds that the owner was not eligible for assistance in respect of the defective dwelling at the time of the disposal, they shall give to the applicant a notice in writing stating the reasons for their view. (6) Any question arising under this section as to the amount of compensation for a dipsosal or defect-free value shall be determined by the district valuer if the owner or the housing authority so require by notice in writing served on the district valuer. (7) Before making a determination in pursuance of subsection (6) above, the district valuer shall consider any representation by the owner or the authority made to him within four weeks from the service of the notice under that subsection. (8) A person serving a notice on the district valuer under subsection (6) above shall serve notice in writing of that fact on the authority or, as the case may be, the owner. (9) In this section— (10) In this section—
  1. (a) references to the owner include a reference to his personal representatives; and
  2. (b) the reference to appurtenances occupied with and used for the purposes of a dwelling or any part of it is, in Scotland, a reference to pertinents belonging to or usually enjoyed with the dwelling or any part of it."

Mr. Gow

I beg to move, That this House doth agree with the Lords in the said amendment.

The purpose of the new clause is to ensure that owners of defective dwellings are not deprived of the benefits of the scheme of assistance as a result of the acquisition of their property by compulsory purchase or by agreement where a compulsory purchase order would otherwise have been made.

Under the terms of the compensation code, compensation in compulsory purchases cases is based on market value. The owner of a defective dwelling acquired in that way will be compensated by reference to the defective value of the property—perhaps before he had been able to receive assistance under the Bill. He could lose a considerable amount because of the chance intervention of the compulsory purchase order. The amendment is designed to remedy that injustice and I hope that the House will agree to it.

Question put and agreed to. [Special entry.]

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