Where the local housing authority have submitted to the Secretary of State an order for the compulsory purchase of land in a clearance area and the Secretary of State, on an application being made to him by the owner or owners of the land and the authority, is satisfied—
that the owner or owners of the land, with the concurrence of any mortgagee of the land, agree to the demolition of the buildings on the land, and
that the authority can secure the proper clearance of the area without acquiring the land,
the Secretary of State may authorise the authority to discontinue proceedings for the purchase of the land on their being satisfied that such covenants have been or will be entered into by all necessary parties as may be requisite for securing that the buildings will be demolished, and the land become subject to the like restrictions and conditions, as if the authority had dealt with the land in accordance with the provisions of section 291.