§ Captain Gammans
asked the Chancellor of the Exchequer what steps he is taking to bring to the notice of owners of bomb damaged houses, who are contemplating the sale of such houses, their right to compensation under the War Damage Act, 1943?
§ Sir K. Wood
I am glad to have this opportunity of drawing attention to two points which are no doubt familiar to many owners. The first is that the test of total loss for the purpose of the War Damage Act, 1943, is not a physical but an economic test, and that it is likely that many houses of good quality will qualify for a cost of works payment even if they are physically totally destroyed. The second is that the War Damage Commission can only make a cost of works payment after the war damage has been made good and to the person who actually incurs the cost of making good the war damage; it follows that an owner selling his house should bear in mind that a cost of works payment must be paid by the Commission to the purchaser and not the vendor.