Where a local housing authority—
are authorised to purchase compulsorily a house which is to be used for housing purposes, and
have acquired the right to enter on and take possession of the house by virtue of having served a notice under section 11 of the Compulsory Purchase Act 1965,
they may, instead of exercising that right by taking actual possession of the house, proceed by serving notice on any person then in occupation of the house, or part of it, authorising him to continue in occupation upon terms specified in the notice or on such other terms as may be agreed.
A person who by virtue of this section ceases to be entitled to receive rent in respect of the premises shall be deemed for the purposes of section 20 of the Compulsory Purchase Act 1965 (compensation of tenants, &c.) to have been required to give up possession of the premises.
In this section "house" includes—
any part of a building which is occupied as a separate dwelling, and
any yard, garden, outhouses and appurtenances belonging to the house or usually enjoyed with it.