After section 155 of the Water Act 1989 insert —
(1) An Authority is liable to compensate any person who is the owner of a property in the district of the Authority which has ceased to be a serviced property by the operation of a declaration made by the Authority under section 161J if the owner has—
(a) sustained any pecuniary loss; or
(b) incurred any expense—
as a direct, natural and reasonable consequence of the property ceasing to be a serviced property.
(2) For the purposes of sub-section (1) a "direct natural and reasonable consequence of the property ceasing to be a serviced property" does not include the lost opportunity of the transfer of the service to another property.
(3) An Authority is not liable to compensate the owner of a property under sub-section (1) for consequential loss.
(4) Any claim for compensation under this section must be made and dealt with in accordance with the Land Acquisition and Compensation Act 1986 , as if it were a claim under Part 5 of that Act.'.