Housing Act 1974

• (7) The power of serving a provisional notice by virtue of subsection (4)(a) above and of taking any further steps authorised under this Part of this Act may be exercised by a local authority notwithstanding that the occupying tenant who made representations under subsection (1) above quits the dwelling and notwithstanding that, after the occupying tenant has made those representations, the authority pass a resolution declaring an area in which the dwelling is situated to be a general improvement area or a housing action area.

General provisions as to improvement notices

Improvement notices: content and registration

90

• (1) Subject to the following provisions of this section, a notice under this section (in this Part of this Act referred to as an " improvement notice ") shall—

• (a) specify the works which in the opinion of the local authority are required to improve the dwelling to the full standard or, as the case may be, to the reduced standard;

• (b) state the authority's estimate of the cost of carrying out those works; and

• (c) require the person having control of the dwelling to carry out to the authority's satisfaction the works specified in the notice within the period of 12 months beginning with the date when the improvement notice becomes operative or such longer period as the authority may by permission in writing from time to time allow.

• (2) The works specified in an improvement notice may be different from the works specified in the provisional notice but shall not require the improvement of a dwelling to the full standard if the provisional notice specified works for improving the dwelling only to the reduced standard.

• (3) In an improvement notice which requires the improvement of a dwelling only to the reduced standard the local authority may, if they think fit, substitute for the period of 12 months specified in paragraph (c) of subsection (1) above such shorter period as appears to them to be appropriate.

• (4) As soon as may be after an improvement notice has been served it shall be registered in the register of local land charges—

• (a) by the proper officer, for the purposes of section 15 of the Land Charges Act 1925, of the council in whose area the dwelling concerned is situated, and

• (b) in such manner as may be prescribed by rules under section 19 of that Act,

and in this subsection "council" means a district council, a London borough council or the Common Council of the City of London.

Appeals against improvement notices

91

• (1) Within 6 weeks from the service on the person having control of the dwelling of an improvement notice, that person, the occupying tenant (if any) of the dwelling or any other person having an estate or interest in the dwelling may appeal to the county court against the improvement notice in accordance with the following provisions of this section.

• (2) Subject to subsection (3) below, the grounds on which an appeal may be brought under this section are all or any of the following.—

• (a) that it is not practicable to comply with the requirements of the improvement notice at reasonable expense;

• (b) that the local authority have refused unreasonably to approve the execution of alternative works, or that the works specified in the notice are otherwise unreasonable in character or extent;

• (c) that the dwelling is within an area declared to be a clearance area under Part III of the Housing Act 1957 and, having regard to all the circumstances of the case, it would be unreasonable for the local authority to require the works specified in the improvement notice to be carried out;

• (d) that the dwelling is not, or is no longer, without one or more of the standard amenities ;

• (e) that, in a case where the improvement notice requires the improvement of the dwelling to the full standard, the works specified in the notice are inadequate to secure that the dwelling will attain that standard;

• (f) that some person other than the appellant will, as the holder of an estate or interest in the dwelling (whether or not that estate or interest entitles him to occupation), derive a benefit from the execution of the works and that that person ought to pay the whole or part of the cost of the execution of the works;

• (g) that the improvement notice is invalid on the ground that any requirement of this Part of this Act has not been complied with or on the ground of some informality, defect or error in or in connection with the improvement notice.

• (3) Without prejudice to the grounds on which he may appeal by virtue of subsection (2) above,—

• (a) an owner-occupier may bring an appeal under this section on the ground that the local authority are in error in considering that the circumstances specified in section 85(3) above exist in relation to the dwelling; and

• (b) the occupying tenant may bring an appeal under this section on the ground that the condition in section 88(2)(d) above or, as the case may be, section 89(6)(b) above for the service of the improvement notice is not fulfilled.

• (4) Subject to the following provisions of this section, on an appeal under this section the court may make such order either confirming or quashing or varying the improvement notice as the court thinks fit.

• (5) An improvement notice shall not be varied on an appeal under this section—

• (a) so as to extend the period within which the works specified in the notice are to be carried out; or

• (b) so as to require the carrying out of works to improve a dwelling to the full standard if the works specified in the notice were works to improve the dwelling to the reduced standard ; or

• (c) so as to require the carrying out of works to improve a dwelling to the reduced standard if the work specified in the notice were works to improve the dwelling to the full standard.

• (6) Where an appeal is brought under this section on the grounds specified in paragraph (f) of subsection (2) above (with or without other grounds), the court may on hearing of the appeal make such order as it thinks fit with respect to the payment to be made by the other person referred to in that paragraph to the appellant or where, by virtue of section 93 below, the works are carried out by the local authority to the local authority.

• (7) In so far as an appeal under this section is based on the ground that the improvement notice is invalid, the court shall confirm the improvement notice unless satisfied that the interests of the appellant have been substantially prejudiced by the facts relied on by him.

Operative effect and withdrawal of improvement notices

92

• (1) If no appeal is brought against an improvement notice under section 91 above, the notice shall become operative at the expiry of the period of 6 weeks beginning with the date of the service of the notice on the person having control of the dwelling, and any improvement notice against which an appeal is so brought shall, if and so far as it is confirmed by the county court, or on appeal from the county court, become operative on the final determination of the appeal.

• (2) For the purposes of subsection (1) above the withdrawal of an appeal shall be deemed to be the final determination thereof, having the like effect as a decision confirming the improvement notice or decision appealed against.

• (3) An improvement notice shall, subject to the right of appeal conferred by section 91 above, be final and conclusive as to any matters which could be raised on any such appeal.

• (4) A local authority may, if they think fit, at any time withdraw an improvement notice by serving notice of the withdrawal on the person having control of the dwelling, and the local authority shall serve a copy of any such notice on the occupier of the dwelling (if different from the person having control of it) and on every other person who, to the knowledge of the authority, is an owner, lessee or mortgagee of the dwelling.

Enforcement of improvement notices

93

• (1) If the works to be carried out in compliance with an improvement notice have not been carried out in whole or in part within the period specified in the notice, or within such longer period as the local authority by whom the notice was served may by permission in writing have allowed, the authority may themselves carry out so much of the works as has not been completed.

• (2) If before the expiry of the period mentioned in subsection (1) above the person who is for the time being the person having control of the dwelling notifies the local authority in writing that he does not intend or is unable to do the works in question, the authority may, if they think fit, do the works before the expiry of that period.

• (3) If the local authority by whom an improvement notice was served have reason to believe that the person who is for the time being the person having control of the dwelling does not intend or is unable to do the works in question in compliance with the notice,—

• (a) the authority may, before the expiry of the period mentioned in subsection (1) above, but not earlier than 6 months after the date on which the improvement notice becomes operative, serve on that person a notice requiring him to furnish them, within 21 days of the service of the notice, with evidence of his intentions with respect to the carrying out of the works; and

• (b) if, from any evidence furnished to them in pursuance of a notice under paragraph (a) above or otherwise, the authority are not satisfied that that person intends to carry out the works in compliance with the notice, they may, if they think fit, do the works before the expiry of the period mentioned in subsection (1) above.

• (4) Not less than 21 days before beginning to do the works the local authority shall serve notice of their intention on the occupier of the dwelling, on the person having control of the dwelling and on every other person who, to the knowledge of the authority, is an owner, lessee or mortgagee of the dwelling.

Recovery of expenses incurred by local authority on default under improvement notice

94

• (1) Subject to subsections (2) and (3) below, any expenses reasonably incurred by a local authority under section 93 above in carrying out works may, except so far as they are by any direction of the court on appeal recoverable under an order of the court, be recovered by them by action from the person having control of the dwelling.

• (2) A demand for the expenses recoverable by a local authority under subsection (1) above, together with interest thereon in accordance with subsection (3) below, shall be served on the person having control of the dwelling; and on the date on which a demand is so served, the local authority shall serve a copy of the demand on every other person who, to the knowledge of the authority, is an owner, lessee or mortgagee of the dwelling concerned.

• (3) Expenses in respect of which a demand is served under subsection (2) above shall carry interest—

• (a) from the date on which the demand is so served until payment of all sums due thereunder, and

• (b) at the rate fixed by section 171(2) of the Local Government Act 1972 (rates of interest in relation to various sums due to local authorities).

• (4) The amount of any expenses and interest thereon due to an authority under this section shall, as from the date when the demand under subsection (2) above becomes operative, be a charge on the premises in respect of which the expenses were incurred, and on all estates and interests in those premises, and the authority shall for the purpose of enforcing that charge have all the same powers and remedies under the Law of Property Act 1925 and otherwise as if they were mortgagees by deed having powers of sale and lease, of accepting surrenders of leases and of appointing a receiver; and the power of appointing a receiver under this subsection shall be exercisable at any time after the expiry of one month from the date when the said demand becomes operative.

• (5) Within 21 days from the date of service of a demand under subsection (2) above, any person on whom the demand or a copy thereof was so served may appeal to the county court against the demand, but on such an appeal no question may be raised which might have been raised on an appeal against the improvement notice relating to the dwelling in question.

• (6) A demand served under subsection (2) above—

• (a) against which no appeal is brought under subsection (5) above shall become operative on the expiry of 21 days from the date of service of the demand,

• (b) against which an appeal is so brought shall, if and so far as it is confirmed on appeal, become operative on the final determination of the appeal,

and for the purposes of this subsection the withdrawal of an appeal shall be deemed to be the final determination thereof, having the like effect as a decision confirming the demand appealed against.

• (7) A demand served under subsection (2) above shall, subject to the right of appeal conferred by subsection (5) above, be final and conclusive as to any matters which can be raised on such an appeal.

Charging orders in favour of persons carrying out works

95

Sections 14 and 15 of the Housing Act 1957 (charging orders in favour of owner executing works) shall apply as if any reference to works required to be executed by a notice under Part II of that Act included a reference to works required to be carried out by an improvement notice, and in the application of those sections by virtue of this section any reference to a house or the owner of a house shall be construed as a reference to a dwelling, within the meaning of this Part of this Act, or, as the case may require, the person having control of it, within the meaning of this Part.

Supplementary

Provisions as to carrying out of works

96

• (1) The person having control of any premises—

• (a) which consist of or include a dwelling in a general improvement area or a housing action area which is without all or any of the standard amenities, or

• (b) which consist of or include a dwelling in respect of which representations have been made by the occupying tenant under section 89 above,

shall, as against the occupying tenant of the dwelling and any other person having an estate or interest in the premises, have the right to enter the premises in order to carry out any survey or examination required with a view to providing the dwelling with any of the standard amenities and, where appropriate, of putting it in good repair (disregarding internal decorative repair) having regard to its age and character and the locality in which it is situated.

• (2) On and after the date on which an improvement notice in respect of a dwelling becomes operative, the person having control of the dwelling shall have the right, as against the occupying tenant (if any) of the dwelling and any other person having an estate or interest in the premises which consist of or include the dwelling, to take any reasonable steps for the purpose of complying with the improvement notice; and any person bound by an undertaking accepted under this Part of this Act shall have the right as against the occupying tenant (if any) of the dwelling to which the undertaking relates to take any reasonable steps for the purpose of complying with the undertaking.

• (3) Section 161 of the Housing Act 1957 (penalty for preventing execution of works) shall apply as if—

• (a) any reference in that section to Part II of that Act included a reference to this Part of this Act;

• (b) the reference therein to receiving notice of the intended action included a reference to receiving an improvement notice or a copy thereof; and

• (c) any reference therein to the owner of any premises included a reference to the person having control thereof.

• (4) Without prejudice to subsection (2) above, the carrying out of works in pursuance of an improvement notice or an undertaking accepted under this Part of this Act shall not give rise to any liability on the part of a lessee to reinstate any premises at any time in the condition in which they were before the works were carried out, or to any liability for failure so to reinstate the premises.

Further powers and duties of local authorities

97

• (1) Section 159 of the Housing Act 1957 (powers of entry of local authorities for certain purposes) shall apply to entry for the purpose of survey and examination of any dwelling with a view to ascertaining whether the requirements of an improvement notice served, or undertaking accepted, under this Part of this Act have been complied with, and section 160 of that Act (penalty for obstructing execution of Act) shall apply accordingly.

• (2) A local authority may by agreement with a person having control of a dwelling or any other person having an estate or interest in a dwelling execute at his expense any works which that person is required to carry out in the dwelling in pursuance of an improvement notice served, or undertaking accepted, under this Part of this Act, and for that purpose the local authority shall have all such rights as that person would have as against the occupying tenant (if any) of the dwelling and any other person having an interest in the dwelling.

• (3) Where under this Part of this Act a local authority are required to serve a copy of a notice on any person who, to their knowledge, is an owner, lessee or mortgagee of any dwelling, any person having an estate or interest in the dwelling who is not served with a copy of the notice shall, on application in writing to the local authority, be entitled to obtain a copy of that notice.

Consequential modifications of Agricultural Holdings Act 1948

98

• (1) Section 9 of the Agricultural Holdings Act 1948 (increases of rent for improvements carried out by landlord) shall apply, subject to subsection (2) below, as if references in subsection (1) of that section to improvements carried out at the request of the tenant included references to improvements carried out in compliance with an improvement notice or an undertaking accepted under this Part of this Act.

• (2) Where a tenant has contributed to the cost incurred by his landlord in carrying out such an improvement as is referred to in subsection (1) above, the increase in rent provided for by the said section 9 shall be reduced proportionately.

• (3) Any works carried out in compliance with an improvement notice or an undertaking accepted under this Part of this Act shall be included among the improvements specified in paragraph 8 of Schedule 3 to the Agricultural Holdings Act 1948 (tenant's right to compensation for erection, alteration or enlargement of buildings), but subject to the power conferred by section 78 of that Act to amend that Schedule; and section 49 of that Act (tenant's right to compensation conditional on the landlord consenting to the carrying out of the improvements) shall not apply to any works carried out in compliance with such a notice or undertaking.

• (4) Where a person other than the tenant claiming compensation has contributed to the cost of carrying out the works in compliance with an improvement notice or an undertaking accepted under this Part of this Act, compensation in respect of the works, as assessed under section 48 of the Agricultural Holdings Act 1948, shall be reduced proportionately.

Exclusion of dwellings controlled by Crown or a public authority

99

• (1) No provisional notice or improvement notice may be served in respect of a dwelling in which there is a Crown or Duchy interest except with the consent of the appropriate authority and, where a provisional notice or improvement notice is served with the consent of the appropriate authority, this Part of this Act shall apply in relation to the dwelling as it applies in relation to a dwelling in which there is no such interest.

• (2) No provisional notice or improvement notice may be served in respect of a dwelling if the person having control of the dwelling is—

• (a) a local authority ;

• (b) the Commission for the New Towns ;

• (c) the Housing Corporation ;

• (d) a registered housing association;

• (e) a development corporation within the meaning of the New Towns Act 1965 ; or

• (f) a housing trust as defined in section 5(3) of the Rent Act 1968 which is a charity within the meaning of the Charities Act 1960.

• (3) If, after a provisional notice or an improvement notice has been served in respect of any dwelling,—

• (a) any such body as is mentioned in paragraphs (a) to (f) of subsection (2) above becomes the person having control of the dwelling, or

• (b) in the case of a dwelling in which there is a Crown or Duchy interest, the appropriate authority becomes the person having control of the dwelling,

any such notice with respect to the dwelling and any undertaking accepted under this Part of this Act with respect to the dwelling shall cease to have effect.

• (4) If, by virtue of subsection (3) above, an improvement notice with respect to any dwelling ceases to have effect, it shall be the duty of the body which or person who has become the person having control of the dwelling as mentioned in that subsection to notify the officer who registered the notice in the register of local land charges and to furnish him with all information required by him for the purpose of cancelling the registration.

• (5) In this section " Crown or Duchy interest" means an interest belonging to Her Majesty in right of the Crown or of the Duchy of Lancaster, or belonging to the Duchy of Cornwall or belonging to a government department, or held in trust for Her Majesty for the purposes of a government department, and " the appropriate authority ",—

• (a) in relation to land belonging to Her Majesty in right of the Crown and forming part of the Crown Estate, means the Crown Estate Commissioners, and, in relation to any other land belonging to Her Majesty in right of the Crown, means the government department having the management of that land ;

• (b) in relation to land belonging to Her Majesty in right of the Duchy of Lancaster, means the Chancellor of the Duchy;

• (c) in relation to land belonging to the Duchy of Cornwall, means such person as the Duke of Cornwall, or the possessor for the time being of the Duchy of Cornwall, appoints; and

• (d) in relation to land belonging to a government department or held in trust for Her Majesty for the purposes of a government department, means that department;

and if any question arises as to what authority is the appropriate authority in relation to any land, that question shall be referred to the Treasury, whose decision shall be final.

• (6) In this section " local authority " includes, in addition to the bodies which, by virtue of section 104(1) below, are local authorities for the purposes of this Part of this Act,—

• (a) a county council;

• (b) the Greater London Council;

• (c) a parish or community council;

• (d) the trustees of the Honourable Society of the Inner Temple;

• (e) the trustees of the Honourable Society of the Middle Temple;

• (f) the police authority for any police area ; and

• (g) any joint board or joint committee all the constituent members of which are local authorities for the purposes of this section.

Duty of local authority to offer loans to meet expenses of compulsory improvement

100

• (1) Any person who is liable to incur expenditure in complying with an improvement notice served, or undertaking accepted, under this Part of this Act, or who is liable to make a payment as directed by a court under section 91(6) above, may apply to the local authority for a loan.

• (2) Subject to the following provisions of this section, if the local authority are satisfied that the applicant for a loan can reasonably be expected to meet obligations assumed by him in pursuance of this section in respect of a loan of the amount of the expenditure or payment to which the application relates, the local authority shall offer to enter into a contract with the applicant for a loan by the local authority to the applicant of that amount, to be secured to the local authority by a mortgage of the applicant's interest in the dwelling concerned.

• (3) Subject to the following provisions of this section, if the local authority are not satisfied as mentioned in subsection (2) above but consider that the applicant can reasonably be expected to meet obligations assumed by him in pursuance of this section in respect of a loan of a smaller amount, the local authority may, if they think fit, offer to enter into a contract with the applicant for a loan by the local authority to the applicant of that smaller amount, to be secured as mentioned in subsection (2) above.

• (4) Any contract entered into by a local authority under this section shall contain a condition to the effect that, if an improvement grant or intermediate grant becomes payable under Part VII of this Act in respect of the expenditure or payment to which the application under this section relates, the local authority shall not be required to lend a sum greater than the amount of the expenditure or payment to which the application relates after deduction of the amount of the improvement grant, or, as the case may be, the intermediate grant.

• (5) A local authority shall not make an offer under the preceding provisions of this section unless they are satisfied—

• (a) that the applicant's interest in the dwelling concerned amounts to an estate in fee simple absolute in possession or an estate for a term of years which will not expire before the date for final repayment of the loan; and

• (b) that, according to a valuation made on behalf of the local authority, the amount of the principal of the loan does not exceed the value which it is estimated that the mortgaged security will bear after improvement of the dwelling to the full standard or, as the case may be, to the reduced standard.

• (6) The rate of interest payable on a loan under this section shall be such as the Secretary of State may direct either generally or in any particular case and the Secretary of State may, if he thinks fit, give directions, either generally or in any particular case, as to the time within which a loan under this section, or any part of such a loan, is to be repaid.

• (7) Subject to the preceding provisions of this section, the contract offered by a local authority under this section shall require proof of title and contain such other reasonable terms as the local authority may specify in their offer and, in particular, may provide for the advance being made by instalments from time to time as the works specified in the improvement notice progress.

• (8) An application under this section shall be made in writing within the period of 3 months beginning with the date when the improvement notice becomes operative or the undertaking is accepted or the payment is to be made as directed by the court, as the case may be, or such longer period as the local authority by permission given in writing may allow.

• (9) Where an improvement grant or intermediate grant is payable under Part VII of this Act partly in respect of expenditure or a payment to which the application under this section relates and partly in respect of other expenditure or another payment, the references in subsection (4) above to an intermediate grant or an improvement grant shall be taken as a reference to the part of the intermediate grant or improvement grant which in the opinion of the local authority is attributable to the expenditure or payment to which the application under this section relates.

Right of person served with improvement notice to serve purchase notice

101

• (1) Where a local authority have served an improvement notice under this Part of this Act on the person having control of a dwelling, that person may, by notice in writing served on the local authority at any time within the period of 6 months beginning with the date on which the improvement notice becomes operative, require the local authority to purchase his interest in the dwelling in accordance with this section.

• (2) Where the person having control of a dwelling serves a notice on a local authority under subsection (1) above—

• (a) the authority shall be deemed to be authorised under and for the purposes of Part V of the Housing Act 1957 to acquire that person's interest in the dwelling compulsorily and to have served a notice to treat in respect of that interest on the date of the service of the notice under subsection (1) above; and

• (b) the power conferred by section 31 of the Land Compensation Act 1961 to withdraw a notice to treat shall not be exercisable in the case of the notice to treat which is deemed to have been so served.

• (3) Within 21 days of the receipt of a notice under subsection (1) above served by the person having control of a dwelling the local authority shall notify every other person who, to their knowledge, is an owner, lessee or mortgagee of the dwelling or who is the occupier thereof.

Effect of an area ceasing to be a general improvement area or housing action area after improvement notice is served

102

If, after an undertaking has been accepted under this Part of this Act in respect of a dwelling or an improvement notice has been served in respect of a dwelling by virtue of section 88(1) above, the general improvement area or housing action area in which the dwelling is situated ceases to be such an area or the land on which the dwelling is situated is excluded from such an area, the provisions of this Part of this Act shall continue to apply in relation to that undertaking or notice as if the dwelling continued to be in a general improvement area or housing action area declared by the local authority by whom the undertaking was accepted or, as the case may be, the notice was served.

Service of notices, etc.

103

• (1) In section 102(1) of the Housing Act 1964 (where a local authority are under a duty to serve a notice on a person described in a particular way, the local authority are to take reasonable steps to identify the person coming within that description) for the words " or Part II, Part III" there shall be substituted the words " Part VIII of the Housing Act 1974 ".

• (2) In section 103(1) of the Housing Act 1964 (method of service of notices, etc.) after the words " those Acts " there shall be inserted the words " or under Part VIII of the Housing Act 1974 ".

• (3) In section 103(2) of the Housing Act 1964 (service of notices, etc. where more than one person comes within the description of the person to be served) for the words " Part II", in the last place where they occur, there shall be substituted the words " Part VIII of the Housing Act 1974 ".

Interpretation of Part VIII

104

• (1) In this Part of this Act, unless the context otherwise requires,—

• " the full standard " has the same meaning as it has for the purposes of section 66 of this Act (intermediate grants);

• " housing arrangements " has the meaning assigned to it by section 86 above;

• " improvement " includes alteration and enlargement and, so far as also necessary to enable a dwelling to reach the full standard or the reduced standard, repair, and " improved " shall be construed accordingly;

• " improvement notice " means a notice under section 90 above;

• " lessee " includes any person entitled, at law or in equity, to a tenancy or any other term of years certain, whether in possession or in reversion ;

• " local authority ", subject to section 99(6) above, has the same meaning as in Part VII of this Act;

• " occupying tenant ", in relation to a dwelling, means the person who is not an owner-occupier, but who— occupies or is entitled to occupy the dwelling as a lessee; or is a statutory tenant of the dwelling, within the meaning of the Rent Act 1968 ; or occupies the dwelling as a residence under a Part VI contract, within the meaning of Part VI of the Rent Act 1968 (furnished lettings); or is employed in agriculture (as defined in section 17(1) of the Agricultural Wages Act 1948) and occupies or resides in the dwelling as part of the terms of his employment;

• " owner ", in relation to a dwelling, means the person who, otherwise than as a mortgagee in possession, is for the time being entitled to dispose of the fee simple in the dwelling;

• " owner-occupier ", in relation to a dwelling, means the person who, as owner or as lessee under a long tenancy, occupies or is entitled to occupy the dwelling, and " owner-occupied " shall be construed accordingly ;

• " the person having control ", in relation to a dwelling shall be determined in accordance with subsection (2) below;

• " provisional notice " means a notice under section 85(2) above;

• " the reduced standard " has the same meaning as it has for the purposes of section 66 of this Act (intermediate grants);

• " standard amenities " has the same meaning as in Part VII of this Act.

• (2) References in this Part of this Act to the person having control of a dwelling shall be construed as follows:—

• (a) if the dwelling is owner-occupied, the person having control of it is the owner-occupier ;

• (b) if there is an occupying tenant of the dwelling and he is a person employed in agriculture (as defined in section 17(1) of the Agricultural Wages Act 1948) who occupies or resides in the dwelling as part of the terms of his employment, the employer or other person by whose authority the occupying tenant occupies or resides in the dwelling is the person having control of it; and

• (c) in any other case, the person who has control of a dwelling is the person who is either the owner of it or the lessee of it under a long tenancy and whose interest in the dwelling is not in reversion on that of another person who has a long tenancy.

• (3) Section 3 of the Leasehold Reform Act 1967 (meaning of " long tenancy ") shall apply for the purposes of subsections (1) and (2) above as it applies for the purposes of Part I of that Act.

• (4) References in the following provisions of the Housing Act 1957 to that Act shall be construed as including a reference to this Part of this Act, that is to say—

• (a) section 169 (service of notices etc. on persons other than local authorities);

• (b) section 170 (power of local authority to require information as to ownership of premises);

• (c) section 178 (power of Secretary of State to prescribe information, etc.); and

• (d) section 179 (dispensation with advertisements and notices).

PART IX — Miscellaneous

Secretary of States' control over certain expenditure by housing authorities in England and Wales

105

• (1) A housing authority may not incur any expenses in—

• (a) providing dwellings by the conversion of houses or other buildings, or

• (b) carrying out works required for the improvement of dwellings, with or without associated works of repair,

except in accordance with proposals submitted by the authority to the Secretary of State and for the time being approved by him.

• (2) Any approval given by the Secretary of State under subsection (1) above may be given subject to such conditions, and may be varied in such circumstances, as appear to him to be appropriate, but before varying the terms of any such approval the Secretary of State shall consult the housing authority concerned.

• (3) In this section " housing authority " and " dwelling " have the same meanings as in Part VII of this Act.

Lodging-houses and hostels provided by local authorities and new town corporations in England and Wales

106

• (1) For the year 1975-76 and subsequent years, buildings, or parts of buildings, provided or converted for use as lodging-houses (that is to say, houses not occupied as separate dwellings) or as hostels shall be included among the buildings to which the requirements in subsection (1) of section 12 of the Housing Finance Act 1972 relate and, accordingly, subsection (2) of that section shall cease to have effect except with respect to years prior to the year 1975-76.

• (2) No payment shall be made for the year 1975-76 or any subsequent year to a local authority or a new town corporation—

• (a) under section 40 of the Housing Act 1949 (Exchequer contributions for hostels),

• (b) under section 15 or section 22 of the Housing (Financial Provisions) Act 1958 (grants for hostels),

• (c) under section 92 of the Housing Finance Act 1972 (hostel subsidy), or

• (d) so far as it relates to hostels, under any provision of the New Towns Act 1959 or the New Towns Act 1965,

nor shall any such payment be made by virtue of section 14(6) of the Housing Subsidies Act 1967; and in this section " local authority " has, in relation to any of the enactments specified in paragraphs (a) to (c) above, the same meaning as in that enactment and " new town corporation" has the meaning assigned to it by section 106 of the Housing Finance Act 1972.

• (3) For the purposes of Part V of the Housing Act 1957 " housing accommodation " shall include, and be deemed always to have included, hostels (within the meaning of this Act), and any reference in that Part to a house shall be, and shall be deemed always to have been, construed accordingly.

• (4) In accordance with the preceding provisions of this section, Schedule 1 to the Housing Finance Act 1972 (the Housing Revenue Account) shall be amended in accordance with Schedule 7 to this Act.

• (5) In this section " year " means a financial year, and " the year 1975-76 " means the financial year beginning in 1975.

Hostels provided by housing authorities in Scotland

107

For the purpose of enabling the Secretary of State to make grants to housing authorities within the meaning of section 5(3)(c) of this Act in respect of their expenditure on housing projects relating to hostels, such an authority shall be treated as a registered housing association, and sections 29(1) to (7), 30(1) to (7), 33 and 35 of this Act shall apply accordingly, but otherwise for the said purpose Parts I to III of this Act shall not apply.

Abolition of clearance orders, etc.

108

• (1) The power of a local authority for the purposes of the Housing Act 1957 to make a clearance order under Part III of that Act (clearance and re-development) for the demolition of any building in a clearance area—

• (a) shall not be available with respect to any clearance area declared on or after the commencement date ; and

• (b) shall cease to be available with respect to any other clearance area after the expiry of the period of 12 months beginning on the commencement date.

• (2) In the application of section 60 of the Housing Act 1957 (payments in respect of well-maintained houses in clearance areas) in relation to a house which is the subject of a compulsory purchase order or a clearance order made on or after the commencement date, for subsection (1) of that section there shall be substituted the subsections set out in Schedule 9 to this Act

• (3) This section shall come into operation at the expiry of the period of one month beginning with the date on which this Act is passed, and any reference in subsections (1) and (2) above to the commencement date is a reference to the day on which this section comes into operation.

General interpretation of section 110 to 115 for Scotland

109

• (1) In sections 110 to 115 the reference to an English enactment includes a reference to the corresponding Scottish enactment, and the corresponding Scottish enactments, except where the context otherwise implies or provides, are as follows—

• (a) the corresponding Scottish enactments to Part III of the Housing Act 1957 are Part III of the Housing (Scotland) Act 1966 and Part I of the Housing (Scotland) Act 1969;

• (b) the corresponding Scottish enactments to sections 54 and 55 of the Town and Country Planning Act 1971 are respectively sections 52 and 53 of the Town and Country Planning (Scotland) Act 1972 ;

• (c) the corresponding Scottish enactment to section 5 of the Compulsory Purchase Act 1965 is section 17 of the Lands Clauses Consolidation (Scotland) Act 1845 ;

• (d) the corresponding Scottish enactments to section 9 of the Housing Act 1957 are section 11 of the Housing (Scotland) Act 1966 and section 24 of the Housing (Scotland) Act 1969;

• (e) the corresponding Scottish enactment to Part V of the Housing Act 1957 is Part VII of the Housing (Scotland) Act 1966;

• (f) the corresponding Scottish enactment to Part VI of the Town and Country Planning Act 1971 is Part VI of the Town and Country Planning (Scotland) Act 1972;

• (g) the corresponding Scottish enactments to section 60 of, and Schedule 2 to, the Housing Act 1957 are section 49 of the Housing (Scotland) Act 1966 and section 11 of the Housing (Scotland) Act 1969 ;

• (h) the corresponding Scottish enactment to section 8 of the Town and Country Planning (Amendment) Act 1972 is section 9 of that Act;

• (i) the corresponding Scottish enactment to Schedule 2 to the Town and Country Planning (Amendment) Act 1972 is Schedule 3 to that Act;

• (j) the corresponding Scottish enactment to Schedule 3 to the Housing Act 1957 is Schedule 3 to the Housing (Scotland) Act 1966 by virtue of section 7(3) of the Housing (Scotland) Act 1969;

• (k) the corresponding Scottish enactments to section 43(2) of the Housing Act 1957 are section 37 of the Housing (Scotland) Act 1966 and section 6 of the Housing (Scotland) Act 1969;

• (l) the corresponding Scottish enactments to section 49 of the Housing Act 1957 are section 41 of the Housing (Scotland) Act 1966 and section 9 of the Housing (Scotland) Act 1969,

• (m) the corresponding Scottish enactments to section 169 of the Housing Act 1957 are section 5(3) of, and paragraph 19 of Schedule 1 to, the Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947 ;

• (n) the corresponding Scottish enactments to Schedule 4 to the Housing Act 1957 are paragraphs 6, 15 and 16 of Schedule 1 to the said Act of 1947, and the corresponding Scottish enactment to paragraph 1 of the said paragraph 6;

• (o) the corresponding Scottish enactment to section 30 of the Compulsory Purchase Act 1965 is paragraph 19 of Schedule 1 to the Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947;

• (p) the corresponding Scottish enactments to section 22 of the Compulsory Purchase Act 1965 are sections 117 and 118 of the Lands Clauses Consolidation (Scotland) Act 1845;

• (q) the corresponding Scottish enactment to section 32 of the Land Compensation Act 1961 is section 40 of the Land Compensation (Scotland) Act 1963 ;

• (r) the corresponding Scottish enactments to the reference to section 68 of and Schedule 5 to the Housing Act 1969 are sections 18 to 20 of the Housing (Scotland) Act 1969.

• (s) the corresponding Scottish enactment to section 37 of the Land Compensation Act 1973 is section 34 of the Land Compensation (Scotland) Act 1973 ;

• (t) the corresponding Scottish enactment to section 30 of the Land Compensation Act 1961 is section 38 of the Land Compensation (Scotland) Act 1963.

• (2)

• (a) The expression " clearance area " includes a housing treatment area which is to be dealt with by securing the demolition of all or some of the buildings in that area under section 4(2)(a) or 4(2)(c) of the Housing (Scotland) Act 1969 ;

• (b) " mortgagee" means the creditor in a heritable security.

Listed buildings subject to compulsory purchase orders under Part III of the Housing Act 1957

110

• (1) In this section references to a compulsory purchase order are to a compulsory purchase order made (at any time before or after the coming into operation of this section) under Part III of the Housing Act 1957.

• (2) Where a building to which a compulsory purchase order applies is (at any time after the making of the order) included in a list of buildings of special architectural or historic interest under section 54 of the Town and Country Planning Act 1971, the authority making the order may, subject to subsection (3) below, apply to the Secretary of State (and only to him) under section 55 of the Act of 1971 for his consent to the demolition of the building.

• (3) No such application may be made by virtue of subsection (2) above after the expiry of the period of three months beginning with the date—

• (a) on which the building is included in the said list, or

• (b) on which this section comes into force,

whichever is the later.

• (4) The following provisions of this section shall have effect where—

• (a) an application for consent has been made under the said section 55, by virtue of subsection (2) above, and has been refused, or

• (b) in a case falling within subsection (3) above, the period of three months has expired without the authority having made such an application,

and in this section " relevant date" means the date of the refusal or, as the case may be, of the expiry of the period of three months.

• (5) If, at the relevant date—

• (a) the building has not vested in the authority, and

• (b) no notice to treat has been served by the authority under section 5 of the Compulsory Purchase Act 1965, in respect of any interest in the building,

the compulsory purchase order shall cease to have effect in relation to the building and, where applicable, the building shall cease to be comprised in a clearance area.

• (6) Where a building, which was included in a clearance area solely by reason of its being unfit for human habitation, ceases to be comprised in the clearance area by virtue of subsection (5) above, the authority concerned shall, in respect of the building, forthwith—

• (a) serve a notice under section 9 of the Act of 1957 (power of local authority to require repair of unfit houses), or

• (b) make a closing order under Part II of that Act,

whichever is appropriate; and in the application of this subsection to Scotland the words from " solely " to " habitation " shall be omitted.

• (7) Where subsection (5) above does not apply, the authority shall cease to be subject to the duty imposed by Part III of the Act of 1957 to demolish the building, and in relation to any interest in the building which at the relevant date has not vested in the authority the compulsory purchase order shall have effect as if—

• (a) in the case of a house, it had been made and confirmed under Part V of the Act of 1957, and

• (b) in any other case, it had been made and confirmed under Part VI of the Act of 1971.

• (8) If the building, or any interest in the building, was vested in the authority at the relevant date it shall be treated—

• (a) in the case of a house, as appropriated to the purposes of Part V of the Act of 1957, and

• (b) in any other case, as appropriated to the purposes of Part VI of the Act of 1971.

• (9) As respects a building falling within subsection (2) above, the authority shall not serve notice to treat under section 5 of the Compulsory Purchase Act 1965 in respect of the building until after the relevant date.

Listed buildings in clearance areas, acquired by agreement

111

• (1) Where Part III of the Housing Act 1957 applies to a building purchased by a local authority by agreement, and at any time (before or after the coming into operation of this section) the building is included in a list of buildings of special architectural or historic interest under section 54 of the Town and Country Planning Act 1971, the authority may, subject to subsection (2) below, apply to the Secretary of State (and only to him) under section 55 of the Act of 1971 for his consent to the demolition of the building.

• (2) No such application may be made by virtue of subsection (1) above after the expiry of the period of three months beginning with the date—

• (a) on which the building is included in the said list, or

• (b) on which this section comes into force,

whichever is the later.

• (3) where—

• (a) an application for consent has been made under the said section 55, by virtue of subsection (1) above; and has been refused, or

• (b) the period of three months mentioned in subsection (2) above has expired without the authority having made such an application,

the authority shall cease to be subject to the duty, imposed by Part III of the Act of 1957, to demolish the building, which shall be treated—

• (i) in the case of a house, as appropriated to the purposes of Part V of the Act of 1957, and

• (ii) in any other case, as appropriated to the purposes of Part VI of the Act of 1971.

Temporary provision for listed buildings subject to clearance orders

112

• (1) In this section references to a " clearance order " are to a clearance order made (at any time before or after the coming into operation of this section) under Part III of the Housing Act 1957.

• (2) Where a building to which a clearance order applies is, at any time after the confirmation of the order, included in a list of buildings of special architectural or historic interest under section 54 of the Town and Country Planning Act 1971, the authority making the order may, subject to subsection (3) below, apply to the Secretary of State (and only to him) under section 55 of the Act of 1971 for his consent to the demolition of the building.

• (3) No such application may be made by virtue of subsection (2) above after the expiry of the period of three months beginning with the date—

• (a) on which the building is included in the said list, or

• (b) on which this section comes into force,

whichever is the later.

• (4) Where—

• (a) an application for consent has been made under the said section 55, by virtue of subsection (2) above, and has been refused, or

• (b) the period of three months mentioned in subsection (3) above has expired without the authority having made such an application,

the building shall cease to be comprised in a clearance area or to be subject to the clearance order.

• (5) Where a building, which was included in a clearance area solely by reason of its being unfit for human habitation, ceases to be comprised in the clearance area by virtue of subsection (4) above, the authority concerned shall, in respect of the building, forthwith—

• (a) serve a notice under section 9 of the Act of 1957 (power of local authority to require repair of unfit house) or

• (b) make a closing order under Part II of that Act,

whichever is appropriate; and in the application of this subsection to Scotland the words from " solely " to " habitation " shall be omitted.

• (6) Where a payment in respect of a house has been made by a local authority under section 60 of, or Schedule 2 to, the Act of 1957, or Schedule 5 to the Housing Act 1969, in connection with a clearance order, and by virtue of this section the house is excluded from the clearance area, then, if the person to whom the payment was made is entitled to an interest in the house he shall, subject to subsection (7) below, repay the payment to the authority on demand.

• (7) No repayment shall be required by virtue of subsection (6) above in a case where the authority have made a closing order in respect of the house and—

• (a) no appeal has, within the time allowed, been made against the making of the order, or

• (b) such an appeal has been made and has failed.

Application of provisions about listed buildings to buildings in conservation areas

113

• (1) Sections 110, 111 and 112 above shall, with the modifications mentioned in subsection (2) below, have effect in relation to buildings subject to directions made and confirmed under section 8 of the Town and Country Planning (Amendment) Act 1972 (control of demolition in conservation areas in England and Wales) as they have effect in relation to listed buildings.

• (2) The modifications subject to which those sections are to have effect by virtue of subsection (1) above are—

• (a) for references to section 55 of the Town and Country Planning Act 1971 there shall be substituted references to that section as applied by Schedule 2 to the Act of 1972; and

• (b) for references to a building being included in a list under section 54 of the Act of 1971 there shall be substituted references to a building being subject to a direction made and confirmed under section 8 of the Act of 1972.

Temporary provision for rehabilitation of unfit houses

114

• (1) This section applies to any building comprised in a clearance area under Part III of the Housing Act 1957 which—

• (a) at any time before the date on which this section comes into operation, has been purchased by agreement by the local authority in whose area the clearance area falls, or

• (b) is subject to a compulsory purchase order—

• (i) made at any time before that date under the said Part III, and

• (ii) which, at any time before the expiry of the period of three months beginning with that date, has been confirmed in accordance with Schedule 3 to the Act of 1957.

• (2) Where any building to which this section applies—

• (a) was included in the clearance area solely by reason of its being unfit for human habitation, and

• (b) in the opinion of the authority concerned is capable of being, and ought to be, improved to the full standard,

the authority may, subject to the provisions of this section and of Schedule 10 to this Act, make and submit to the Secretary of State an order under this section (a " rehabilitation order ") in relation to that building.

• (3) In subsection (2) above " full standard " in England and Wales means the standard attained by a dwelling in respect of which the conditions mentioned in section 66(2) of this Act are fulfilled and in Scotland means the standard specified by virtue of section 16(3) of the Housing (Scotland) Act 1974; and in the application to Scotland of subsection (2)(a) above the words from " solely " to " habitation " shall be omitted.

• (4) Schedule 10 to this Act shall have effect for the purpose of supplementing the provisions of this section.

Compensation

115

• (1) It is hereby declared that where, under section 110 above, or Schedule 10 to this Act, a compulsory purchase order is to be treated as made under Part V of the Housing Act 1957 or Part VI of the Town and Country Planning Act 1971 compensation for the compulsory acquisition of the land comprised in the compulsory purchase order is to be assessed in accordance with the provisions applying to a compulsory acquisition under the said Part V (or, as the case may be, the said Part VI).

• (2) Where under section 110 above, or Schedule 10 to this Act, land or any interest in land within a clearance area is to be treated as appropriated by a local authority to the purposes of the said Part V, compensation for its compulsory acquisition shall (where it increases the amount) be assessed or reassessed in accordance with the provisions applying to a compulsory acquisition under the said Part V.

• (3) Where under section 111 above or Schedule 10 to this Act, any interest in land acquired by a local authority by agreement (after the declaration of the clearance area) is to be treated as appropriated for the purposes of the said Part V—

• (a) compensation shall (where subsection (2) above would have increased the amount) be assessed and paid as if the acquisition were a compulsory acquisition, under the said Part III, to which subsection (2) applied, but

• (b) there shall be deducted from the amount of compensation so payable any amount previously paid in respect of the acquisition of that interest by the authority.

• (4) Where subsection (2) or subsection (3) above applies, the local authority shall serve on the person entitled to the compensation a notice in the prescribed form giving particulars of the amount of compensation payable in accordance with the provisions applying to a compulsory acquisition under the said Part V, and if the person served does not within twenty-one days from service of the notice accept the particulars, or if he disputes the amount stated, the question of disputed compensation shall be referred to the Lands Tribunal.

• (5) The notice shall be served not later than six months after (as the case may be)—

• (a) the relevant date as defined in section 110 above, or

• (b) confirmation of the rehabilitation order,

and section 30 of the Compulsory Purchase Act 1965 (service of notices) shall apply to the notice.

• (6) Subsection (2) above shall be left out of account in considering whether under section 22 of the Compulsory Purchase Act 1965 compensation has been properly paid for the land; and accordingly subsection (2) above shall not prevent an acquiring authority from remaining in undisputed possession of the land.

• (7) Where subsection (2) above makes an increase in compensation to be assessed in accordance with Schedule 2 to the Compulsory Purchase Act 1965 (absent and untraced owners)—

• (a) a deed poll executed under paragraph 2(2) of that Schedule before the latest date for service of a notice under subsection (5) above shall not be invalid because the increase in compensation had not been paid, and

• (b) it shall be the duty of the local authority not later than six months after the said date to proceed under the said Schedule 2 and pay the proper additional amount into court.

• (8) In Scotland where subsection (2) makes an increase in compensation to be assessed in accordance with sections 56 to 60 and 63 of the Lands Clauses (Consolidation) (Scotland) Act 1845 (provisions dealing with absent and untraced owners)—

• (a) a notarial instrument executed under section 76 of that Act before the latest date for service of a notice under subsection (4) above shall not be invalid because the increase in compensation had not been paid and

• (b) it shall be the duty of the local authority not later than six months after the said date to proceed under the said sections and pay the proper additional amount into the Bank.

• (9) Any sum payable by virtue of this section shall carry interest at the rate prescribed under section 32 of the Land Compensation Act 1961 from the time of entry by the local authority on the land, or from vesting of the land or interest, whichever is the earlier, until payment.

• (10) In this section references to an increase in compensation shall be read as if payments under—

• (a) sections 60 and 61 of and Schedule 2 to the Act of 1957 (payments in respect of well-maintained houses and payments to owner-occupiers),

• (b) section 63(1) of the Act of 1957 or section 30 of the Land Compensation Act 1961 (allowances to persons displaced),

• (c) section 68 of and Schedule 5 to the Housing Act 1969 (payments to owner-occupiers and others in respect of unfit houses purchased or demolished), and

• (d) section 37 of the Land Compensation Act 1973 (disturbance payments for persons without compensatable interests),

and any extra-statutory payments made by way of additional compensation were, to the extent that they were made to the person holding the interest in question, compensation in respect of the compulsory purchase.

• (11) In this section "prescribed" means prescribed by order made by the Secretary of State for the purposes of this section; and any order under this subsection shall be contained in a statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Amendment of section 4 of the Compulsory Purchase Act 1965

116

In section 4 of the Compulsory Purchase Act 1965 (time limits for exercising powers under compulsory purchase orders) there shall be added at the end, the following paragraph:—

For the purposes of this section no account shall be taken of any period during which an authority are, by virtue of section 110, 113, or 114 of the Housing Act 1974 (which relate among other things to unfit buildings in clearance or conservation areas) prevented from serving notice to treat under section 5 of this Act.

,

and the same amendment shall be made to section 116 of the Lands Clauses Consolidation (Scotland) Act 1845 with the substitution for the reference to section 5 of the Compulsory Purchase Act 1965 of a reference to section 17 of the said Act of 1845.

Removal of time limit for completing certain works eligible for higher rates of grants or contributions

117

• (1) In section 1 of the Housing Act 1971 (certain works carried out in local government areas wholly or partly in development areas or intermediate areas to be eligible for increased rates of grants or contributions) paragraph (b) of each of subsections (1) and (2) (which requires the works concerned to be completed before the expiration of a period of 3 years beginning with 23rd June 1971) shall not have effect in the case of works falling within subsection (2), subsection (3) or subsection (4) below.

• (2) Subsection (1) above applies to works which were the subject of an application to a local authority for an improvement grant, a standard grant or a special grant if the application was approved by the local authority on or before 30th September 1973 and—

• (a) in the case of an application to a local authority in England and Wales for an improvement grant, if the local authority have, before 23rd June 1974, fixed as the amount of the grant (either originally or by way of variation under subsection (2) of section 2 of the Housing Act 1971) an amount which took account of the amendments of Part I of the Housing Act 1969 effected by subsection (1) of that section (increase of grant or maximum grant from one-half to 75 per cent. of the cost of the works); and

• (b) in the case of an application to a local authority in Scotland for an improvement grant or a standard grant, if the local authority have, before 23rd June 1974, fixed as the amount of the grant (either originally or by way of variation under subsection (2) of section 3 of the Housing Act 1971) an amount which took account of the amendments of Parts I and II of the Housing (Financial Provisions) (Scotland) Act 1968 effected by subsection (1) of that section (increase of grant or maximum grant from one-half to 75 per cent. of the cost of the works).

• (3) Subsection (1) above also applies to works comprised in arrangements to which subsection (1) of section 21 of the Housing Act 1969 applies (contributions for dwellings provided or improved by housing associations under arrangements with local authorities) if an application for a contribution under that section containing particulars and estimates of those works was received by the Secretary of State on or before 30th September 1973.

• (4) Subsection (1) above also applies to works comprised in arrangements to which subsection (1) of section 16 or section 17 (in so far as the latter section applies to housing associations) of the Housing (Financial Provisions) (Scotland) Act 1968 applies (contributions for dwellings provided or improved by housing associations under arrangements with the Secretary of State or local authorities) if the Secretary of State had made arrangements under the said section 16 or had approved improvement proposals made under the said section 17 on or before 30th September 1973.

• (5) In this section " local authority ", " improvement grant ", " standard grant" and " special grant" have, in England and Wales, the same meanings as in Part I of the Housing Act 1969, and in Scotland " local authority " has the same meaning as in section 1 of the Housing (Scotland) Act 1966 and " improvement grant" and " standard grant" have the same meanings as in Part II of the Housing (Financial Provisions) (Scotland) Act 1968.

Raising of rateable value limits for enfranchisement or extension under Leasehold Reform Act 1967

118

• (1) In section 1 of the Leasehold Reform Act 1967, in subsection (1)(a) (certain tenants entitled to enfranchisement or extension of their leaseholds where rateable value is within certain limits on a particular day) after the words " rent and " there shall be inserted the words " subject to subsections (5) and (6) below " and after subsection (4) there shall be added the following subsections:—

(5) If, in relation to any house and premises, the appropriate day for the purposes of subsection (1)(a) above falls on or after 1st April 1973 that subsection shall have effect in relation to the house and premises,— (a) in a case where the tenancy was created on or before 18th February 1966, as if for the sums of £200 and £400 specified in that subsection there were substituted respectively the sums of £750 and £1,500 ; and (b) in a case where the tenancy was created after 18th February 1966, as if for those sums of £200 and £400 there were substituted respectively the sums of £500 and £1,000. (6) If, in relation to any house and premises,— (a) the appropriate day for the purposes of subsection (1)(a) above falls before 1st April 1973, and (b) the rateable value of the house and premises on the appropriate day was more than £200 or, if it was then in Greater London, £400, and (c) the tenancy was created on or before 18th February 1966, subsection (1)(a) above shall have effect in relation to the house and premises as if for the reference to the appropriate day there were substituted a reference to 1st April 1973 and as if for the sums of £200 and £400 specified in that subsection there were substituted respectively the sums of £750 and £1,500.

• (2) In any case where, by virtue only of the amendments of section 1 of the Leasehold Reform Act 1967 effected by subsection (1) above, the right specified in subsection (1) of that section is conferred on a tenant, section 19 of that Act (retention of management powers for general benefit of neighbourhood) shall have effect in relation to the house and premises to which the tenant's right applies as if for the reference in subsection (1) of that section to an application made within two years beginning with the commencement of Part I of that Act there were substituted a reference to an application made within two years beginning with the date on which this Act is passed.

• (3) After subsection (4) of section 1 of the Leasehold Reform Act 1967 there shall be inserted—

(4A) At any time the tenant may take the action provided in Schedule 8 to the Housing Act 1974 for his rateable value to be adjusted and in all such cases the agreed rateable value or that determined by the Court or District Valuer shall be the rateable value for the purposes of that Act.

• (4) In section 9 of the Leasehold Reform Act 1967 (purchase price of enfranchisement) there shall be inserted after subsection (1):—

(1A) Notwithstanding, the foregoing subsection, the price payable for a house and premises, the rateable value of which is above £1,000 in Greater London and £500 elsewhere, on a conveyance under section 8 above, shall be the amount which at the relevant time the house and premises, if sold in the open market by a willing seller, might be expected to realise on the following assumptions:— (a) on the assumption that the vendor was selling for an estate in fee simple, subject to the tenancy, but on the assumption that this Part of this Act conferred no right to acquire the freehold; (b) on the assumption that at the end of the tenancy the tenant has the right to remain in possession of the house and premises under the provisions of Part I of the Landlord and Tenant Act 1954; (c) on the assumption that the tenant has no liability to carry out any repairs, maintenance or redecorations under the terms of the tenancy or Part I of the Landlord and Tenant Act 1954 ; (d) on the assumption that the price be diminished by the extent to which the value of the house and premises has been increased by any improvement carried out by the tenant or his predecessors in title at their own expense; (e) on the assumption that (subject to paragraph (a) above) the vendor was selling subject, in respect of rentcharges and other rents to which section 11(2) below applies, to the same annual charge as the conveyance to the tenant is to be subject to, but the purchaser would otherwise be effectively exonerated until the termination of the tenancy from any liability or charge in respect of tenant's incumbrances; and (f) on the assumption that (subject to paragraphs (a) and (b) above) the vendor was selling with and subject to the rights and burdens with and subject to which the conveyance to the tenant is to be made, and in particular with and subject to such permanent or extended rights and burdens as are to be created in order to give effect to section 10 below. (1B) For the purpose of determining whether the rateable value of the house and premises is above £1,000 in Greater London, or £500 elsewhere, the rateable value shall be adjusted to take into account any tenant's improvements in accordance with Schedule 8 to the Housing Act 1974.

• (5) This section shall come into force on the passing of this Act.

Option mortgages

119

• (1) Subject to the following provisions of this section, Part II of the Housing Subsidies Act 1967 (assistance for house purchase and improvement) shall be amended in accordance with Schedule 11 to this Act and the amendments of section 28 of that Act contained in paragraph 5 of that Schedule shall be deemed to have taken effect on 18th April 1974.

• (2) Until 6th April 1980, nothing in paragraphs 1(2) and 2 of Schedule 11 to this Act or in paragraphs (ix) to (xi) of section 24(3) of the said Act of 1967 shall have effect in relation to a loan if—

• (a) the option notice in respect of the loan was signed on or before 26th June 1974, or

• (b) the loan was made in pursuance of an offer in writing made by the lender to the borrower on or before 26th June 1974 and the option notice was signed as mentioned in section 24(3)(b) of the said Act of 1967.

• (3) Until the expiry of the period of 3 months beginning on the appointed day, nothing in paragraphs 1(2) and 2 of Schedule 11 to this Act or in paragraphs (ix) to (xi) of section 24(3) of the said Act of 1967 shall have effect in relation to a loan (being a loan to which subsection (2) above does not apply) if the option notice in respect of the loan was signed after 26th June 1974 and before the day appointed for the coming into operation of this section.