Housing and Planning Bill (HL Bill 117)

specified date) and give an address at which the acquiring authority
may be served with a counter-notice.””

(3) After section 11A (inserted by section 186 above) insert—

“11B Counter-notice requiring possession to be taken on specified date

(1) 5Where an acquiring authority serve a notice of entry under section 11(1)
on an occupier with an interest in land, the occupier may serve a
counter-notice requiring the acquiring authority to take possession of
the land by no later than a date specified in the counter-notice.

(2) If the occupier gives up possession of the land on or before the specified
10date the acquiring authority are to be treated as having taken
possession on that date (unless the acquiring authority has in fact taken
possession before that date).

(3) The date specified in the counter-notice—

(a) must not be before the end of the period specified in the notice
15of entry under section 11(1), and

(b) must be at least 28 days after the day on which the counter-
notice is served.

(4) A counter-notice under subsection (1) has no effect if the notice to treat
relating to the land is withdrawn or ceases to have effect before the date
20specified in the counter-notice.

(5) A counter-notice under subsection (1) has no effect if it would require
an acquiring authority to take possession of land at a time when section
11A or paragraph 6 of Schedule 2A prohibit the authority from entering
on and taking possession of the land.

(6) 25If subsection (5) applies, the authority must notify the occupier who
served the counter-notice—

(a) that the counter-notice has no effect, and

(b) if the authority serve a notice of entry as mentioned in section
11A(2)(b), of the date after which the authority could enter on
30and take possession of the land.

(7) If a counter-notice served under subsection (1) has no effect because of
subsection (5), the occupier who served it may serve a further counter-
notice.

(8) Where a notice of entry under section 11(1) is served on more than one
35occupier with the same interest in the land, a reference in this section to
the occupier with an interest in land is to all of them acting together.””

188 Agreement to extend notice period for possession following notice to treat

In section 11 of the Compulsory Purchase Act 1965 (powers of entry), after
subsection (1C) (inserted by section 187 of this Act), insert—

“(1D) 40An acquiring authority may extend the period specified in a notice of
entry under subsection (1) by agreement with each person on whom it
was served.

(1E) A reference in this Act to the period specified in a notice of entry under
subsection (1) is to the period as extended by any agreement under
subsection (1D).””

189 Corresponding amendments to the New Towns Act 1981

(1) 5Schedule 6 to the New Towns Act 1981 (modification of compulsory purchase
legislation as applied for the purposes of the Act) is amended as follows.

(2) In paragraph 4—

(a) in sub-paragraph (1)—

(i) in the words before paragraph (a), after “every owner of that
10land” insert “so far as known to the acquiring authority after
making diligent inquiry in accordance with section 5(1) of the
Compulsory Purchase Act 1965”;

(ii) in the words after paragraph (b), omit “(not being less than 14
days)”;

(b) 15after sub-paragraph (2) insert—

“(2A) The period specified in a notice under sub-paragraph (1)
must not end earlier than the end of the period of 3 months
beginning with the day on which the notice is served
unless—

(a) 20it is a notice to which paragraph 4A(3) applies, or

(b) it is a notice to which paragraph 13 of Schedule 2A to
the Compulsory Purchase Act 1965 (as modified by
paragraph 1(2)(g) above) applies.

(2B) A notice under sub-paragraph (1) must explain the effect of
25paragraph 4B (counter-notice requiring possession to be
taken on specified date) and give an address at which the
acquiring authority may be served with a counter-notice.

(2C) An acquiring authority may extend the period specified in a
notice under sub-paragraph (1) by agreement with each
30person on whom it was served.

(2D) A reference in this Schedule to the period specified in a notice
under sub-paragraph (1) is to the period as extended by any
agreement under sub-paragraph (2C).””

(3) After paragraph 4 insert—

“4A (1) 35This paragraph applies where—

(a) an acquiring authority have given a notice under paragraph
4(1) but have not yet entered on and taken possession of the
land, and

(b) the authority become aware of an owner (“the newly
40identified owner”) to whom they ought to have given a notice
to treat under section 5(1) of the Compulsory Purchase Act
1965 but have not.

(2) Any notice already served under paragraph 4(1) remains valid, but
the authority may not enter on and take possession of the land unless
45they serve on the newly identified owner—

(a) a notice to treat under section 5(1) of the Compulsory
Purchase Act 1965, and

(b) a notice under paragraph 4(1).

(3) Sub-paragraph (4) applies for the purpose of determining the period
5to be specified in the notice under paragraph 4(1) served on the
newly identified owner if—

(a) the owner is an occupier of the land and the authority were
not aware of the owner because they were given misleading
information when carrying out inquiries under section 5(1) of
10the Compulsory Purchase Act 1965, or

(b) the owner is not an occupier of the land.

(4) The period must be a period that ends—

(a) no earlier than the end of the period of 14 days beginning
with the day on which the notice of entry is served, and

(b) 15no earlier than the end of the period specified in any previous
notice under paragraph 4(1) given by the acquiring authority
in respect of the land.

(5) This paragraph applies instead of section 11A of the Compulsory
Purchase Act 1965.

4B (1) 20Where the acquiring authority serves a notice under paragraph 4(1)
on an occupier with an interest in land, the occupier may serve a
counter-notice requiring the acquiring authority to take possession
of the land by no later than a date specified in the counter-notice.

(2) If the occupier gives up possession of the land on or before the
25specified date, the acquiring authority is to be treated as having
taken possession on that date (unless the acquiring authority has in
fact taken possession before that date).

(3) The date specified in the counter-notice—

(a) must not be before the end of the period specified in the
30notice under paragraph 4(1), and

(b) must be at least 28 days after the day on which the counter-
notice is served.

(4) A counter-notice under sub-paragraph (1) has no effect if the notice
to treat relating to the land is withdrawn or ceases to have effect
35before the date specified in the counter-notice.

(5) A counter-notice under sub-paragraph (1) has no effect if it would
require an acquiring authority to take possession of land at a time
when either paragraph 4A of this Schedule or paragraph 6 of
Schedule 2A to the Compulsory Purchase Act 1965 prohibit the
40authority from entering on and taking possession of the land.

(6) If sub-paragraph (5) applies, the authority must notify the occupier
who served the counter-notice—

(a) that the counter-notice has no effect, and

(b) if the authority serve a notice under paragraph 4(1) of this
45Schedule as mentioned in paragraph 4A(2)(b) of this
Schedule, of the date after which the authority could enter on
and take possession of the land.

(7) If a counter-notice served under sub-paragraph (1) has no effect
because of sub-paragraph (5), the occupier who served it may serve
a further counter-notice.

(8) Where a notice under paragraph 4(1) is served on more than one
5occupier with the same interest in the land, a reference in this section
to the occupier with an interest in land is to all of them acting
together.

(9) This paragraph applies instead of section 11B of the Compulsory
Purchase Act 1965.””

190 10Abolition of alternative possession procedure following notice to treat

Schedule 16 abolishes the alternative procedure for taking possession of land
under section 11(2) of, and Schedule 3 to, the Compulsory Purchase Act 1965.

191 Extended notice period for taking possession following vesting declaration

In section 9 of the Compulsory Purchase (Vesting Declarations) Act 1981
15(minor tenancies and tenancies about to expire), in subsection (2), for “14 days”
substitute “3 months”.

Compensation

192 Making a claim for compensation

(1) After section 4 of the Land Compensation Act 1961 (costs) insert—

“4A 20Making a claim for compensation

(1) The appropriate national authority may by regulations impose further
requirements about the notice mentioned in section 4(1)(b).

(2) In subsection (1) “appropriate national authority” means—

(a) in relation to a claim for compensation for the compulsory
25acquisition of land in England, the Secretary of State;

(b) in relation to a claim for compensation for the compulsory
acquisition of land in Wales, the Welsh Ministers.

(3) Regulations under subsection (1) may make provision about—

(a) the form and content of the notice, and

(b) 30the time at which the notice must be given.

(4) Regulations under subsection (1) may permit or require a person
specified in the regulations to design the form of the notice.

(5) Regulations under subsection (1) may require an acquiring authority to
supply, at specified stages of the compulsory acquisition process,
35copies of a form to be used in giving the notice.

(6) Regulations under subsection (1) are to be made by statutory
instrument.

(7) A statutory instrument containing regulations under subsection (1) is
subject to annulment—

(a) in the case of an instrument made by the Secretary of State, in
pursuance of a resolution of either House of Parliament;

(b) in the case of an instrument made by the Welsh Ministers, in
pursuance of a resolution of the National Assembly for Wales.””

(2) 5In section 5 of the Compulsory Purchase Act 1965 (notice to treat and untraced
owners), after subsection (2) insert—

“(2ZA) For provision about notice of claims for compensation, see sections 4
and 4A of the Land Compensation Act 1961.””

193 Compensation after withdrawal of notice to treat

(1) 10Section 31 of the Land Compensation Act 1961 (withdrawal of notices to treat)
is amended in accordance with subsections (2) and (3).

(2) After subsection (3) insert—

“(3A) Where the acquiring authority withdraw a notice to treat under this
section, the authority shall also be liable to pay a person compensation
15for any loss or expenses occasioned by the person as a result of the
giving and withdrawal of the notice to treat if the person—

(a) acquired the interest to which the notice to treat relates before
its withdrawal, and

(b) has not subsequently been given a notice to treat in relation to
20that interest.””

(3) In subsection (4), after “(3)” insert “or (3A)”.

(4) In Schedule 18 to the Planning and Compensation Act 1991 (provisions under
which compensation is payable with interest), in Part 1, in the entry relating to
the Land Compensation Act 1961, after “section 31(3)” insert “or (3A)”.

194 25Making a request for advance payment of compensation

(1) The Land Compensation Act 1973 is amended as follows.

(2) In section 52 (right to advance payment of compensation), for subsection (2)
substitute—

“(2) A request for advance payment must be made in writing by the person
30entitled to it (“the claimant”) and must include—

(a) details of the claimant’s interest in the land, and

(b) information to enable the acquiring authority to estimate the
amount of the compensation in respect of which the advance
payment is to be made.

(2A) 35Within 28 days of receiving a request, the acquiring authority must—

(a) determine whether they have enough information to estimate
the amount of compensation, and

(b) if they need more information, require the claimant to provide
it.””

(3) 40In section 52ZC (land subject to mortgage: supplementary), for subsection (2)

substitute—

“(2) Within 28 days of receiving a request for a payment under section 52ZA
or 52ZB, the acquiring authority must—

(a) determine whether they have enough information to give effect
5to section 52ZA or, as the case may be, 52ZB, and

(b) if they need more information, require the claimant to provide
it.””

(4) After section 52ZC (land subject to mortgage: supplementary) insert—

“52ZD Making a request for advance payment

(1) 10The appropriate national authority may by regulations impose
requirements about the form and content of a request under section
52(2), 52ZA(3) or 52ZB(3).

(2) In subsection (1) “appropriate national authority” means—

(a) in relation to a request relating to the compulsory acquisition of
15land in England, the Secretary of State;

(b) in relation to a request relating to the compulsory acquisition of
land in Wales, the Welsh Ministers.

(3) Regulations under subsection (1) may permit or require a person
specified in the regulations to design a form to be used in making a
20request.

(4) Regulations under subsection (1) may require an acquiring authority to
supply, at specified stages of the compulsory acquisition process,
copies of a form to be used in making a request.

(5) Regulations under subsection (1) are to be made by statutory
25instrument.

(6) A statutory instrument containing regulations under subsection (1) is
subject to annulment in pursuance—

(a) in the case of an instrument made by the Secretary of State, in
pursuance of a resolution of either House of Parliament;

(b) 30in the case of an instrument made by the Welsh Ministers, in
pursuance of a resolution of the National Assembly for Wales.””

195 Power to make and timing of advance payment

(1) The Land Compensation Act 1973 is amended as follows.

(2) In section 52 (right to advance payment of compensation)—

(a) 35for subsections (1) to (1B) substitute—

“(1) An acquiring authority may make an advance payment on
account of compensation payable by them for the compulsory
acquisition of an interest in land if a request has been made
under subsection (2) after the compulsory acquisition has been
40authorised.

(1A) In a case where the compulsory acquisition is one to which the
Lands Clauses Consolidation Act 1845 applies, the acquiring
authority may not make an advance payment if they have not
taken possession of the land, but must do so if they have.

(1B) In all other cases, an acquiring authority must make an advance
payment under subsection (1) if, before or after the request is
made, the authority—

(a) give a notice of entry under section 11(1) of the
5Compulsory Purchase Act 1965, or

(b) execute a general vesting declaration under section 4 of
the Compulsory Purchase (Vesting Declarations) Act
1981 in respect of that land.”;”

(b) for subsection (4) substitute—

“(4) 10An advance payment required by subsection (1A) must be
made—

(a) before the end of the day on which the authority take
possession of the land, or

(b) if later, before the end of the period of two months
15beginning with the day on which the authority—

(i) received the request for the advance payment, or

(ii) received any further information required under
subsection (2A)(b).

(5) An advance payment required by subsection (1B) must be
20made—

(a) before the end of the day on which the notice of entry is
given or the general vesting declaration is executed, or

(b) if later, before the end of the period of two months
beginning with the day on which the authority—

(i) 25received the request for the advance payment, or

(ii) received any further information required under
subsection (2A)(b).”;”

(c) omit subsection (11).

(3) In section 52ZA (advance payments: land subject to mortgage for up to 90% of
30value), for subsection (1) substitute—

“(1) This section applies if—

(a) a request is made for an advance payment under section 52(1)
in respect of land,

(b) the authority is required by section 52(1A) or (1B) to make the
35advance payment, and

(c) the land is subject to a mortgage the principal of which does not
exceed 90% of the relevant amount.””

(4) In section 52ZB (advance payments: land subject to mortgage for more than
90% of value)—

(a) 40for subsection (1) substitute—

“(1) This section applies if—

(a) a request is made for an advance payment under section
52(1) in respect of land,

(b) the authority would be required by section 52(1A) or
45(1B) to make the advance payment if it were not for this
section, and

(c) the land is subject to a mortgage the principal of which
exceeds 90% of the relevant amount.”;”

(b) in subsection (9)(c) for “section 52ZA(1)(b)” substitute “section
52ZA(1)(c)”.

(5) In section 52ZC (land subject to mortgage: supplementary provisions)—

(a) after subsection (3) insert—

“(3A) 5In a case where the compulsory acquisition to which the request
relates is one to which the Lands Clauses Consolidation Act
1845 applies, the acquiring authority must make any payment
under section 52ZA or 52ZB—

(a) before the end of the day on which the authority take
10possession of the land, or

(b) if later, before the end of the period of two months
beginning with the day on which the authority—

(i) received the request under section 52ZA(3) or
52ZB(3), or

(ii) 15received any further information required under
subsection (2).

(3B) In all other cases, the authority must make any payment under
section 52ZA or 52ZB—

(a) before the end of the day on which the notice of entry is
20given or the general vesting declaration is executed, or

(b) if later, before the end of the period of two months
beginning with the day on which the authority—

(i) received the request under section 52ZA(3) or
52ZB(3), or

(ii) 25received any further information required under
subsection (2).”;”

(b) in subsection (4) omit “(4) and”.

196 Interest on advance payments of compensation

(1) The Land Compensation Act 1973 is amended as follows.

(2) 30In section 52A (right to interest where advance payment made)—

(a) in subsection (2), after the words “payment under section 52(1)” insert
“after the date of entry”;

(b) after subsection (2A) insert—

“(2B) In respect of any period in relation to which the acquiring
35authority is required to pay interest under section 52B (interest
on advance payment), the interest payable under subsection (2)
is limited to the interest which accrues on the difference
between the total amount and the paid amount.””

(3) After section 52A insert—

“52B 40 Interest on advance payments of compensation paid late

(1) If the acquiring authority are required by section 52(1A) or (1B) to make
an advance payment of compensation but pay some or all of it late, the
authority must pay interest on the amount which is paid late (“the
unpaid amount”).

(2) Interest under subsection (1) accrues on the unpaid amount for the
period beginning with the day after the end of the period mentioned in
section 52(4).

(3) If the amount of the advance payment is greater than the compensation
5as finally determined or agreed (“the actual amount”), the claimant
must repay any interest paid under this section that is attributable to
the amount by which the advance payment exceeded the actual
amount.

(4) The Treasury must by regulations specify the rate of interest for the
10purposes of subsection (1).

(5) Regulations under subsection (4) may contain further provision in
connection with the payment of interest under subsection (1).

(6) Regulations under subsection (4) are to be made by statutory
instrument.

(7) 15A statutory instrument containing regulations under subsection (4) is
subject to annulment in pursuance of a resolution of either House of
Parliament.””

197 Repayment of advance payment where no compulsory purchase

(1) The Land Compensation Act 1973 is amended as follows.

(2) 20Section 52 (right to advance payment of compensation) is amended in
accordance with subsections (3) and (4).

(3) Omit subsection (5).

(4) In subsection (9), for the words from “he disposes” to the end substitute—

“(a) the claimant’s interest in some or all of the land is acquired by
25another person, or

(b) the claimant creates an interest in some or all of the land in
favour of a person other than the acquiring authority,

the amount of the advance payment together with any amount paid
under section 52A shall be set off against any sum payable by the
30authority to that other person in respect of the compulsory acquisition
of the interest acquired or the compulsory acquisition or release of the
interest created.””

(5) After section 52 insert—

“52AZA Repayment by claimant etc.

(1) 35Where the amount or aggregate amount of any payments under section
52 made on the basis of the acquiring authority’s estimate of the
compensation exceeds the compensation as finally determined or
agreed, the excess is to be repaid.

(2) If after any payment under section 52 has been made to any person it is
40discovered that the person was not entitled to it, the person must repay
it.

(3) If the notice to treat relating to an interest in land in relation to which
an acquiring authority have made a payment to a claimant under
section 52 is withdrawn or has ceased to have effect before the authority

take possession of the land, the authority may by notice require the
claimant to pay them an amount equal to the amount of the payment,
unless another person has acquired the whole of the claimant’s interest
in the land.

(4) 5Subsection (5) applies where—

(a) a payment made to a claimant has been registered as a local
land charge in accordance with section 52(8A),

(b) the whole of the claimant’s interest in land has subsequently
been acquired by another person (a “successor”),

(c) 10any notice to treat given in relation to the interest is withdrawn
or ceases to have effect before the acquiring authority take
possession of the land, and

(d) the authority notify the successor that they are not going to give
the successor a notice to treat (or a further notice to treat) for the
15interest.

(5) The authority may by notice require the successor to pay them an
amount equal to the amount of any payment made to the claimant
under section 52.

(6) A notice under subsection (3) or (5) must specify the date by which the
20claimant or successor must pay the amount.

(7) The date mentioned in subsection (6) must be after the period of two
months beginning with the day on which the authority give the notice
under subsection (3) or (5).

(8) Neither subsection (3) nor subsection (5) affects a right to compensation
25under section 31(3) or (3A) of the Land Compensation Act 1961 or
section 5(2C)(b) of the Compulsory Purchase Act 1965.””

198 Repayment of payment to mortgagee if land not acquired

In the Land Compensation Act 1973, after section 52ZD (inserted by section 194
above) insert—

“52ZE 30 Payment to mortgagee recoverable if notice to treat withdrawn

(1) Where an acquiring authority have made a payment to a mortgagee
under section 52ZA or 52ZB in relation to an interest in land and notify
the claimant that the notice to treat relating to the interest is withdrawn
or has ceased to have effect before the authority take possession of the
35land, the authority may by notice require the claimant to pay them an
amount equal to the amount of the payment, unless another person has
acquired the whole of the claimant’s interest in the land.

(2) Subsection (3) applies where—

(a) a payment under section 52ZA or 52ZB has been registered as a
40local land charge in accordance with section 52(8A),

(b) the whole of a claimant’s interest in land has subsequently been
acquired by another person (a “successor”),

(c) any notice to treat given in relation to the interest is withdrawn
or ceases to have effect before the authority take possession of
45the land, and