Housing Act 1980

• (4) Where the title to the property is registered under the Land Registration Acts 1925 to 1971 the Chief Land Registrar shall, on application being made to him by the local authority, register the authority as proprietor of the property, free from all estates, interests and rights to which its mortgage had priority, and he shall not be concerned to inquire whether any of the requirements of this and the following section were complied with.

• (5) Where a local authority conveys the property, or part of it, to any person—

• (a) he shall not be concerned to inquire whether any of the provisions of this or the following section were complied with; and

• (b) his title shall not be impeachable on the ground that the property was not properly vested in the authority or that those provisions were not complied with.

• (6) Where application for leave under this section is made to the county court, the county court may adjourn the proceedings or postpone the date for the execution of the local authority's deed for such period or periods as the court thinks reasonable.

• (7) Any such adjournment or postponement may be made subject to such conditions with regard to payment by the mortgagor of any sum secured by the mortgage or the remedy of any default as the court thinks fit; and the court may from time to time vary or revoke any such condition.

• (8) Property vested under this section shall be treated as acquired under Part V of the 1957 Act.

Compensation and accounting under s. 112

113

• (1) Where, under section 112 above, a local authority has vested any property in itself it shall appropriate a fund equal to the aggregate of—

• (a) the price at which the authority could have re-acquired the property by virtue of the condition mentioned in section 112(1)(b) above; and

• (b) interest on that price for the period beginning with the vesting and ending with the appropriation at the rate or rates prescribed for that period under section 32 of the Land Compensation Act 1961.

• (2) The fund shall be applied—

• (a) first, in discharging, or paying sums into court for meeting, any prior incumbrances to which the vesting is not made subject;

• (b) secondly, in recovering costs, charges and expenses properly incurred by the authority as incidental to the vesting of the property; and

• (c) thirdly, in recovering the mortgage money, interest, costs, and other money (if any) due under the mortgage ;

and any residue then remaining in the fund shall be paid to the person entitled to the mortgaged property, or who would have been entitled to give receipts for the proceeds of sale of the property if it had been sold in exercise of the power of sale.

• (3) Section 107(1) of the Law of Property Act 1925 (mortgagee's written receipt sufficient discharge for money arising under power of sale) applies to money payable under this section as it applies to money arising under the power of sale conferred by that Act.

Subsidised home loans-amendments as to options

114

• (1) If an option notice under Part II of the Housing Subsidies Act 1967 (subsidised loans for house purchase and improvement) is given—

• (a) with the qualifying lender's agreement and in such circumstances or in such cases or descriptions of case as may be specified in directions given by the Secretary of State; or

• (b) not earlier than twelve months after the date of the repayment contract;

it shall have effect notwithstanding that the conditions specified in section 24(3) (a) and (b) of the Act are not satisfied.

• (2) An option notice given under subsection (1) above takes effect from the first day of April falling not less than three months after the notice is given; but if it is given under subsection (1)(a) above and it is so agreed between the borrower and the qualifying lender, it takes effect on the first day of such month beginning not less than three months after it is given as is so agreed.

• (3) An option notice may be cancelled as from any end of March falling not less than twelve months after the date of the repayment contract by a notice given by the borrower to the lender not less than three months before the cancellation.

• (4) Unless authorised by order under subsection (5) below—

• (a) an option notice given by virtue of subsection (1)(b) above cannot be cancelled by a notice under subsection (3) above; and

• (b) where an option notice has been cancelled under subsection (3) above no further option notice can be given under subsection (1)(b) above in respect of the same repayment contract.

• (5) If it appears to the Secretary of State appropriate to do so having regard to any material change in taxation or other conditions likely to affect a borrower's decision whether or not to take a subsidised loan, he may by order authorise the giving or cancellation of option notices in accordance with subsections (1) to (3) above in such circumstances or descriptions of case as may be specified in the order.

• (6) An order under subsection (5) above shall not authorise the giving of any option notice or of a notice cancelling an option notice later than twelve months after the end of the year in which the order is made.

• (7) A notice under subsection (3) above must be in writing and in such form as the Secretary of State may direct; and the reference in that subsection to the borrower includes persons in whom the rights and obligations under the repayment contract are for the time being vested.

• (8) Before making an order under subsection (5) above the Secretary of State shall have such consultations with qualifying lenders or organisations representative of them as he thinks appropriate having regard to the purposes of the proposed order.

• (9) This section shall be construed, and Part II of the Act of 1967 shall have effect, as if this section were contained in that Part.

Subsidised loans-further application of Part II of 1967 Act

115

• (1) In relation to a loan which satisfies the two conditions stated in subsections (2) and (3) below Part II of the Housing Subsidies Act 1967 shall have effect as if the loan were for or in connection with one or more of the purposes specified in section 24(1 )(b) of that Act.

• (2) The first condition is that the loan—

• (a) is made as part of a scheme under which not less than nine-tenths of the proceeds of the loan are applied to the purchase by the person or persons to whom it is made of an annuity—

• (i) ending, if the loan is made to one person, with his life or with the life of the survivor of two or more persons who include that person, and

• (ii) ending, if the loan is made to more than one person, with the life of the survivor of two or more persons who include the persons to whom the loan is made; or

• (b) was made under such a scheme before the commencement of this section.

• (3) The second condition is that each of the persons mentioned in subsection (2) above has attained the age of sixty-five years at the time the loan is made (or, if the loan was made before the commencement of this section, had attained that age at the time the loan was made).

Other amendments relating to subsidised loans

116

• (1) Part II of the Housing Subsidies Act 1967 is amended as shown in Schedule 14 (amendments to make new or altered provision about the conditions on which subsidised loans are to be available, the duration of subsidy and the bodies who are to be qualifying lenders).

• (2) Where a guarantee in respect of an advance by a building society to a borrower in Northern Ireland is given by an insurance company in pursuance of arrangements made under Article 14 of the Housing (Northern Ireland) Order 1978 (guarantee of advances in excess of normal amount)—

• (a) the guarantee is to be regarded as an appropriate policy for the purposes of section 33(1) of the Building Societies Act 1962 (advances for the payment of certain premiums); and

• (b) section 26(3) of that Act (which limits the amount of an advance where certain guarantees are given) does not apply to the guarantee.

Other provisions about local authority housing finance

Rent allowance and rent rebate subsidy

117

• (1) The amount of rent allowance subsidy payable to a local authority (for the credit of the general rate fund) shall be 90 per cent, of the authority's standard amount of rent allowances for the year, as defined by section 20(8) of the 1972 Act.

• (2) In section 3 of the 1975 Act (modified rent rebate subsidy)—

• (a) in subsection (3) (rate of subsidy) "90 per cent." Is substituted for " 75 per cent. "; and

• (b) in subsection (4)(a) (rate fund contribution) " 10 per cent." is substituted for " 25 per cent. ".

• (3) A local authority's rate fund contribution under section 3(4) of the 1975 Act, so far as payable under paragraph (a) of that subsection (percentage of standard amount of rent rebates), is not to count as relevant expenditure for the purposes of section 1 of the Local Government Act 1974 (rate support grant).

• (4) In section 19(2) of the Development of Rural Wales Act 1976 (rate of rent rebate subsidy payable to the Development Board for Rural Wales), " 90 per cent." is substituted for " 75 per cent. ".

• (5) This section applies in respect of subsidies payable for 1981-82 and subsequent years.

Rent rebates and allowances

118

Part II of the 1972 Act (rent rebates and allowances) shall have effect, in relation to the operation of rebate and allowance schemes after such date as the Secretary of State may by order appoint, subject to the amendments set out in Schedule 15 to this Act.

Rent rebates etc. and supplementary benefits

119

• (1) Except in accordance with directions of the Secretary of State, no rebate or allowance shall be paid by an authority under or by virtue of Part II of the 1972 Act to any person if, to the authority's knowledge—

• (a) he is receiving supplementary benefit; or

• (b) his income or resources fall to be aggregated under the 1972 Act or the Supplementary Benefits Act 1976 with those of another person who is receiving that benefit.

• (2) The Secretary of State may also give directions modifying the application of Part II of the 1972 Act (including Schedules 3 and 4) in circumstances where a person's entitlement to rebate or allowance is or may be affected by subsection (1) or directions under it.

• (3) Authorities shall supply the Secretary of State with such information in their possession as may be required to give effect to the Supplementary Benefits Act 1976; and the Secretary of State shall supply authorities with such information concerning claims for and payments of supplementary benefits as authorities may require to give effect to their rebate and allowance schemes.

• (4) Part II of Schedule 3 to the 1972 Act and Part II of Schedule 4 to that Act (provisions superseded by this section regarding relationship between supplementary benefits and rent rebates and allowances) are hereby repealed.

• (5) In this section " authority " means any of those bodies which under Part II of the 1972 Act operate rent rebate or rent allowance schemes; and " supplementary benefit" means the same as in that Part of that Act.

• (6) In section 22 of the 1972 Act (permitted totals of rent rebates and allowances) after subsection (1) there are inserted the following subsections—

(1A) The Secretary of State may, on application by an authority, direct that the authority's permitted total of rebates or allowances for such period as may be specified in the direction shall be such proportion of their standard amount of rent rebates or, as the case may be, standard amount of rent allowances, greater than 110 per cent., as may be specified in the direction. (1B) Any direction given under subsection (1A) above may be made conditional upon compliance by the authority concerned with such conditions as may be specified in the direction.

PART VIII — Housing Associations and the Housing Corporation

Borrowing powers of Housing Corporation

120

• (1) In section 7(5) of the 1974 Act (which limits the aggregate amount outstanding in respect of certain advances and loans to the Housing Corporation and its subsidiaries to £400 million but enables the limit to be raised to £750 million) for " £400 million " and " £750 million " there are substituted respectively " £2,000 million " and " £3,000 million ".

• (2) In ascertaining the limit imposed by that section any interest payable under section 7(6) of that Act on a loan made by the Secretary of State to the Housing Corporation which, with the approval of the Treasury, is deferred and treated as part of the loan, shall, so far as outstanding, be treated as outstanding by way of principal, whether the loan was made before or is made after the commencement of this section.

Grants to and by Housing Corporation

121

• (1) The Secretary of State may, with the consent of the Treasury, make out of moneys provided by Parliament such grants to the Housing Corporation as appear to him required to enable the Corporation to meet the expenses incurred by it in the exercise of its functions, and any such grant may be made subject to such conditions as he may with the consent of the Treasury determine.

• (2) In exercising its functions under section 1(2)(a) and (b) of the 1974 Act the Housing Corporation may, with the consent of the Secretary of State and of the Treasury, make grants—

• (a) to registered housing associations towards the expenses incurred by them in carrying out the objects mentioned in section 13(3)(c) and (d) of that Act (advice on formation or running of other housing associations and provision of services for them); and

• (b) to other voluntary organisations towards the expenses incurred by them in carrying out the like objects ;

and any such grant may be made subject to such conditions as the Corporation may, with the consent of the Secretary of State and of the Treasury, determine.

• (3) In this section "voluntary organisation" means a body the activities of which are carried on otherwise than for profit.

Disposal of land by registered housing associations

122

• (1) Without prejudice to the provisions of Chapter I of Part I of this Act, every registered housing association shall, subject to section 2 of the 1974 Act (control by Housing Corporation of dispositions by housing associations), have power by virtue of this section, but not otherwise, to dispose in such manner as it thinks fit of any land held by it.

• (2) If, in a case where a registered housing association disposes of any land, section 39 of the Settled Land Act 1925 (disposal of land by trustees) would apply but for this subsection, that section shall not apply in relation to the disposal; and accordingly the disposal need not be for the best consideration in money that can reasonably be obtained.

• (3) Nothing in subsection (2) above shall be taken to authorise any action on the part of a charity that would conflict with the trusts of the charity.

• (4) Subsections (2) to (9) of section 104B of the 1957 Act (repayment of discount on early disposal of freehold or lease), which is inserted in that Act by section 92 of this Act, apply (with the modification specified in subsection (5) below) in relation to a disposal by a registered housing association made under this section with the consent of the Housing Corporation, as they apply to a disposal by the local authority made under section 104 of that Act with the consent of the Secretary of State; and accordingly do not apply in any such case if the consent so provides.

• (5) The modification referred to in subsection (4) above is that the Housing Corporation is added to the bodies specified in subsection (6) of section 104B.

• (6) Section 104C of the 1957 Act (power to impose covenant limiting freedom to dispose of houses in National Parks and areas of outstanding beauty, etc.), which is also inserted in that Act by section 92 of this Act, shall apply in relation to a conveyance, grant or assignment executed under this section by a registered housing association as it applies to a conveyance, grant or assignment executed under section 104 of that Act by a local authority.

Consent of Housing Corporation to disposals of land by housing associations and housing trusts

123

• (1) Section 2 of the 1974 Act (control by Housing Corporation of dispositions of land by housing associations) is amended as follows.

• (2) After subsection (1) there are inserted the following subsections—

(1A) Any consent of the Corporation may be given either generally to all housing associations or to any particular association or description of association and either in relation to any particular land or description of land. (1B) Any such consent may be given subject to such conditions as the Corporation sees fit to impose.

.

• (3) For subsection (2) there is substituted the following subsection—

(2) Subsection (1) above shall not apply to a disposition by an unregistered housing association which is a charity if the disposition is one which, by virtue of subsection (1) or (2) of section 29 of the Charities Act 1960 (certain disposals not to take place without an order of the court or of the Charity Commissioners), cannot be made without such an order as is mentioned in that section.

.

• (4) After subsection (3) there is inserted the following subsection—

(3A) Subsection (1) above shall not apply to the letting, by a registered housing association or by an unregistered housing association which is a housing trust, of any land under a secure tenancy or under what would be a secure tenancy but for any of paragraphs 2 to 13 of Schedule 3 to the Housing Act 1980 or, as the case may be, but for any of paragraphs 2 to 7 of Schedule 1 to the Tenants' Rights, Etc. (Scotland) Act 1980.

.

• (5) In subsection (4), after the word " grant " there are inserted the words " by an unregistered housing association which does not satisfy the landlord condition in section 28 of the Housing Act 1980 (bodies which are capable of granting secure tenancies) ".

• (6) After subsection (5) there is inserted the following subsection—

(5A) Where a housing association has, at any time, made a disposition requiring the consent of the Corporation under this section, then— (a) in favour of any person claiming under the association, the disposition shall not be invalid by reason that any consent of the Corporation which is required has not been given ; and (b) a person dealing with the association or a person claiming under the association shall not be concerned to see or inquire whether any such consent has been given.

.

• (7) After subsection (6) there is inserted the following subsection—

(6A) In this section— - ' housing trust' has the same meaning as in section 15 of the Rent Act 1977 ; and - ' secure tenancy ' has the same meaning as in section 28 of the Housing Act 1980 or section 10 of the Tenants' Rights, Etc. (Scotland) Act 1980.

.

Accounts and audit

124

• (1) The Secretary of State may by order lay down accounting requirements for registered housing associations with a view to ensuring that the accounts of every registered housing association are prepared in the requisite form and give a true and fair view of the state of affairs of the association, so tar as its housing activities are concerned, and of the disposition of funds and assets which are, or at any time have been, in its hands in connection with those activities.

• (2) The accounts of every registered housing association must comply with those requirements; and the auditor's report shall state (in addition to any other matters which it is required to state) whether in the auditor's opinion they do so comply.

• (3) Every registered housing association shall furnish to the Housing Corporation a copy of its accounts, and auditor's report within 6 months of the end of the period to which they relate.

• (4) A registered housing association which is a society registered under the Industrial and Provident Societies Act 1965 shall be subject to section 4(1) of the Friendly and Industrial and Provident Societies Act 1968 (obligation to appoint auditors), without regard to the volume of its receipts and payments, the number of its members or the value of its assets; and such an association is in no case to be treated as an exempt society under that section.

• (5) A registered housing association which is a registered charity but not a society registered under the Act of 1965 shall, in respect of its housing activities (and separately from its other activities, if any) be subject to Part I of Schedule 16 to this Act (provisions corresponding to those of the Act of 1968); but this does not affect any obligation falling on the charity in consequence of section 8 of the Charities Act I960 (statement of accounts to be transmitted to Charity Commissioners).

• (6) The method by which an association shall distinguish in its accounts between its housing activities and other activities shall be as laid down by orders under subsection (1) above.

• (7) Subsections (2) to (6) above apply with respect to any period beginning on or after the day on which the first order under subsection (1) comes into force ; and the requirements contained in any order under that subsection shall not apply in relation to any period beginning before the day on which the order comes into force.

Enforcement of s. 124

125

• (1) All persons who are directly concerned with the conduct and management of the affairs of a registered housing association and are in that capacity responsible for the preparation and audit of accounts shall have the duty to ensure that section 124 and (where applicable) Part I of Schedule 16 are complied with by the association.

• (2) If—

• (a) the accounts of a registered housing association, as furnished to the Housing Corporation under section 124(3), do not comply with the accounting requirements laid down under section 124(1); or

• (b) section 124(3) is not complied with in respect of the accounts and auditor's report; or

• (c) Part I of Schedule 16 is not complied with by an association which is a registered charity but not a society registered under the Act of 1965,

the association as well as each of the persons on whom the above duty is imposed shall be liable on summary conviction to a fine not exceeding £200.

• (3) It is a defence—

• (a) for a person charged under subsection (2) above to prove that he did everything that could reasonably have been expected of him by way of discharging the duty imposed by subsection (1) above ; and

• (b) for an association charged under subsection (2) above to prove that the persons mentioned in subsection (1) above did everything that could reasonably have been expected of them by way of discharging the duty imposed by subsection (1) above in relation to the association.

• (4) No proceedings for an offence under this section shall be instituted in England or Wales except by or with the consent of the Director of Public Prosecutions or the Housing Corporation

Payments to certain committee members and others

126

For subsections (3) to (6) of section 26 and for section 27 of the 1974 Act (payments to members etc. of registered 1965 Act associations and contracts with committee members) there shall be substituted the provisions set out in Part II of Schedule 16 to this Act.

Registration of housing associations

127

• (1) A housing association which is a society registered under the Industrial and Provident Societies Act 1965 may have among its objects those of—

• (a) acquiring houses to be disposed of on sale or on lease, or building houses to be disposed of on leases falling within subsection (2) below ;

• (b) repairing and improving houses, or creating them by conversion of house or other property, with a view to such disposal,

without preventing the association from being or, as the case may be, remaining registered by the Housing Corporation under section 13 of the 1974 Act.

• (2) A lease of a house falls within this subsection if—

• (a) it is granted on payment of a premium which is calculated by reference to a percentage of the value of the house or of the cost of providing it; or

• (b) the tenant (or his personal representatives) will or may be entitled to a sum calculated by reference directly or indirectly to the value of the house.

• (3) In this section " house " includes a flat.

• (4) Section 14 of the 1974 Act (the Housing Associations Registration Advisory Committee) is hereby repealed.

Removal of certain housing associations from register

128

• (1) In section 15 of the 1974 Act

• (a) after subsection (2) there is inserted the subsection set out below; and

• (b) in subsection (6) for the words " this section " there are substituted the words " subsection (2) above ".

• (2) The subsection inserted after subsection (2) is:—

(2A) Where a body which is registered— (a) has not at any time received a grant under section 29 or section 32 below or any such payment or loan as is specified in paragraph 2 or paragraph 3 of Schedule 2 to this Act; and (b) requests the Corporation to remove it from the register; the Corporation may, if they think fit, remove it from the register.

Inquiries into affairs of registered housing association and power to act for its protection

129

Sections 19 and 20 of the 1974 Act are amended and extended in accordance with Schedule 17 to this Act.

Housing association grant

130

• (1) The Secretary of State may pay housing association grant under section 29 of the 1974 Act to a registered housing association in cases where the association— :

• (a) disposes of a house as one dwelling ;

• (b) divides a house into two or more separate dwellings and disposes of them ; or

• (c) combines two houses to form one dwelling and disposes of it;

after carrying out works of repair, improvement or conversion.

• (2) The maximum grant which may be paid in a case of the kind mentioned in subsection (1) above is £5,000 for any one dwelling, but the Secretary of State may, by order made with the consent of the Treasury, substitute another amount for £5.000.

• (3) In this section " house " includes a flat.

• (4) The provisions of Part III of the 1974 Act relating to housing association grant are amended in accordance with Schedule 18 to this Act.

Recoupment of surplus rental income

131

• (1) Every registered housing association which has at any time received a grant under section 29 of the 1974 Act shall show separately in its accounts for any period the surpluses arising from increased rental income during that period from housing projects in connection with which the grant was made.

• (2) The surpluses are to be shown by each association in a fund to be known as the Grant Redemption Fund; and the method of constituting the Fund and of showing it in the association's accounts is to be as required by order of the Secretary of State under section 124(1) above.

• (3) The surpluses in respect of any period are to be calculated in a manner determined by the Secretary of State for housing associations generally, and in determining it the Secretary of State may take account of the rental income received or capable of being received by an association and the management and maintenance costs and loan charges incurred or likely to be incurred by it.

• (4) The manner of calculating surpluses shall be determined after consultation with organisations appearing to the Secretary of State to be representative of registered housing associations, and shall be made known to the associations from time to time; and surpluses may be calculated differently for housing associations of different kinds or dwellings in different parts of Great Britain.

• (5) The Secretary of State may from time to time give notice to a registered housing association requiring it to pay to him, with interest, if demanded, or to apply or appropriate for purposes he specifies, any sums standing in its Grant Redemption Fund at the end of a period of account.

• (6) Any interest demanded under subsection (5) above

• (a) shall be at the rate or rates previously determined by the Secretary of State with the consent of the Treasury for housing associations generally and published by him or, if no such determination has been made, at the rate or rates specified with the consent of the Treasury in the notice ; and

• (b) shall be payable either from the date of the notice or from such earlier date, but not earlier than the end of the period of account, as the notice may specify.

• (7) Subsections (1) and (2) above apply to an association's accounts for any period beginning on or after the date on which the first order under section 124(1) above comes into force.

Amendment of rules of registered housing association

132

In section 24 of the 1974 Act the following subsection is inserted after subsection (5): —

(5A) In relation to a registered 1965 Act association section 10 of the 1965 Act shall have effect as if— (a) in subsection (1) after the words " shall not be valid" there were inserted the words " without the consent of the Housing Corporation given by order under the seal of the Corporation nor " and after paragraph (b) there were inserted the words " and there shall also be sent with the copies of the amendment a copy of the Corporation's consent " ; and (b) in subsection (2) at the end of the words preceding the paragraphs there were inserted the words " notice of any such change shall be sent to the Housing Corporation and.

Interpretation of Part VIII

133

• (1) In this Part of this Act—

• " registered charity" means a charity registered under section 4 of the Charities Act 1960, and "exempt charity " has the same meaning as in that Act;

• " registered housing association" means an association registered under section 13 of the 1974 Act.

• (2) For the purposes of this Part of this Act, the housing activities of a registered housing association are all those activities by reference to which it is to be regarded as a housing association (within the meaning given to that expression by section 189(1) of the 1957 Act or, as the case may be, section 208(1) of the Housing (Scotland) Act 1966) and as registrable under Part II of the 1974 Act.

Part IX — General

Housing Revenue Account and Housing Repairs Account

Working balance in Housing Revenue Account

134

Housing Repairs Account

135

• (1) Any local authority may, for the year 1981-82 and for subsequent years, keep an account (to be known as the Housing Repairs Account) in accordance with this section.

• (2) Every authority which keeps a Housing Repairs Account shall credit to the account—

• (a) contributions from its Housing Revenue Account;

• (b) income arising from the investment or other use of money credited to the account; and

• (c) sums received by the authority in connection with the repair or maintenance of any of its housing stock, either from its tenants or from the sale of scrapped or salvaged materials.

• (3) Every such authority shall debit to its Housing Repairs Account—

• (a) all expenditure incurred by it in connection with the repair or maintenance of any of its housing stock ;

• (b) any amount which is carried to the credit of its Housing Revenue Account in accordance with subsection (5) below; and

• (c) such expenditure incurred by it in connection with the improvement or replacement of any of its housing stock as may from time to time be determined by the Secretary of State.

• (4) Every such authority shall ensure that sufficient credits are carried to its Housing Repairs Account to secure that the account never shows a debit balance.

• (5) If an authority considers that any credit balance in its Housing Repairs Account at the end of a year will not be required for the purposes of that account, it may carry some or all of the balance to the credit of its Housing Revenue Account.

• (6) If an authority which has opened a Housing Repairs Account ceases to maintain the account, any balance shall be carried to its Housing Revenue Account.

• (7) In paragraph 3(1) of Schedule 1 to the 1972 Act (items to be debited to Housing Revenue Account)—

• (a) at the end of sub-paragraph (c) there are added the words " (except where that expenditure is properly debited to the Housing Repairs Account) "; and

• (b) after that sub-paragraph there is inserted the following sub-paragraph—

(d) contributions from the account to the Housing Repairs Account.

• (8) In paragraph 5(1) of Schedule 1 to the 1972 Act (Secretary of State's directions as to amounts to be credited or debited to Housing Revenue Account), after the words " Revenue Account" there are inserted the words " or, as the case may be, a Housing Repairs Account ".

• (9) Any determination by the Secretary of State under subsection (3)(c) above may be made to apply to local authorities generally or to a particular authority or group of authorities and may make different provision in respect of different cases or descriptions of case.

• (10) In this section—

• " expenditure " includes loan charges;

• " housing stock " means any house or other property within a local authority's Housing Revenue Account;

• " local authority " means the council of a district or London borough, the Greater London Council, the Common Council of the City of London or the Council of the Isles of Stilly.

Service charges

Service charges

136

• (1) Schedule 19 to this Act shall have effect, in place of sections 90 to 91A of the 1972 Act, in relation to periods ending after the commencement of this section, but subject to subsection (2) below.

• (2) In relation to works begun earlier than six months after the commencement of this section—

• (a) paragraphs 2 to 6 of Schedule 19 shall not apply, and

• (b) sections 90 to 91A shall continue to apply.

Miscellaneous

Avoidance of certain unauthorised disposals

137

• (1) If—

• (a) at any time after 18th July 1980 a local authority or a housing association has disposed of a house, and

• (b) the disposal was one which, under section 104 of the 1957 Act or section 2 of the 1974 Act, required the consent of the Secretary of State or of the Housing Corporation (or would have required it had the relevant provisions been in force) but was made without that consent;

then, unless the disposal was to an individual (or to two or more individuals) and did not extend to any other house, it shall be void (and, if made before the passing of this Act, be deemed always to have been void) and section 128(2) of the Local Government Act 1972 or, as the case may be, subsection (5A) (inserted by section 123(6) of this Act) of section 2 of the 1974 Act (protection of purchasers) shall not apply.

• (2) In this section " house " includes a flat and " the relevant provisions " means Part I and sections 91 and 123 of this Act.

Displacement of residential occupiers by housing authority

138

In section 42(1) of the Land Compensation Act 1973 (which requires an authority acquiring or redeveloping land to indemnify another authority against the cost of rehousing a person displaced by the acquisition or redevelopment but only if the displacing authority is not an authority having functions under Part V of the 1957 Act) after the words “ Housing Act 1957” (in paragraph (b)) there are inserted the words “ or (if they are such an authority) the land is acquired or redeveloped by them otherwise than in the discharge of those functions”.

Housing co-operatives

139

Exclusion of shared ownership tenancies from Leasehold Reform Act 1967

140

Amendments of Leasehold Reform Act 1967 etc.

141

Sections 1, . . . 9, 16, 23, and 29 of, and Schedules 1 and 3 to, the Leasehold Reform Act 1967 and Schedule 8 to the 1974 Act are amended as shown in Schedule 21 to this Act.

Leasehold valuation tribunals

142

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) ... The 1967 Act is amended in accordance with Schedule 22 to this Act.

Apportionment of rents

143

• (1) Section 20(1) of the Landlord and Tenant Act 1927 (apportionment of certain rents and other payments) has effect as respects applications for apportionment made under that section after the passing of this Act with the substitution in the proviso of “£5” for “two pounds”.

• (2) The Secretary of State may by order vary the amount there mentioned.

• (3) After section 20(1) of the said Act there is inserted the following subsection—

(1A) An order of apportionment under sections 10 to 14 of the said Act of 1854 may provide for the amount apportioned to any part of the land in respect of which the rent or payment is payable to be nil.

Landlord's failure to disclose identity or give notice of assignment: increased penalties

144

Houses in multiple occupation: revised penalties for certain offences

145

Houses in multiple occupation: overcrowding

146

• (1) For section 90 of the 1957 Act (overcrowding in houses let in lodgings) there is substituted the following section—

(90) (1) If it appears to a local authority, in the case of a house within their district which is occupied by persons who do not form a single household, that an excessive number of persons is being or is likely to be accommodated on the premises having regard to the rooms available, the local authority may serve on the occupier of the premises or on any person having the control and management thereof, or on both, a notice under this subsection (an " overcrowding notice ") complying with subsections (2) and (3) below and including either— (a) the requirement set out in subsection (4); or (b) that set out in subsection (5). (2) An overcrowding notice shall state, in relation to every room on the premises, what is in the authority's opinion the maximum number of persons by whom it is suitable to be occupied as sleeping accommodation at any one time or, as the case may be, that it is in their opinion unsuitable to be occupied as sleeping accommodation. (3) An overcrowding notice may, in relation to any room, prescribe special maxima applicable in any case where some or all of the persons occupying the room are under such age as may be specified in the notice. (4) The requirement referred to in subsection (1)(a) is that the person on whom the overcrowding notice is served must refrain from— (a) knowingly permitting any room to be occupied as sleeping accommodation otherwise than in accordance with the overcrowding notice; or (b) knowingly permitting such number of persons to occupy the premises as sleeping accommodation that it is not possible, without— (i) one or more rooms to which the overcrowding notice relates being occupied as sleeping accommodation otherwise than in accordance with that notice ; or (ii) any part of the premises which is not a room being occupied as sleeping accommodation; to avoid persons of opposite sexes and over the age of 12 years (other than persons living together as husband and wife) occupying sleeping accommodation in the same room. (5) The requirement referred to in subsection (1)(b) is that the person on whom the overcrowding notice is served must refrain from— (a) knowingly permitting any room to be occupied by a new resident as sleeping accommodation otherwise than in accordance with the overcrowding notice ; or (b) knowingly permitting a new resident to occupy any part of the premises as sleeping accommodation if it is not possible, without— (i) one or more rooms to which the overcrowding notice relates being occupied as sleeping accommodation otherwise than in accordance with that notice ; or (ii) any part of the premises which is not a room being occupied as sleeping accommodation; both to permit the new resident to so occupy any part of the premises and avoid persons of opposite sexes and over the age of 12 years (other than persons living together as husband and wife) occupying sleeping accommodation in the same room. (6) In subsection (5) above " new resident" means a person who was not, immediately before the date on which the overcrowding notice was served, living in the house. (7) Where a local authority have served an overcrowding notice on any person and that notice includes the requirement referred to in subsection (5) above, the local authority may, at any time, withdraw that overcrowding notice and serve on that person, in its place, an overcrowding notice which includes the requirement referred to in subsection (4) above. (8) Not less than seven days before serving an overcrowding notice, the local authority shall— (a) in writing inform the occupier of the premises and any person appearing to them to have the control and management thereof of their intention to serve the notice, and (b) ensure, so far as is reasonably possible, that every person living in the house is informed of that intention; and shall afford to any such person an opportunity of making representations regarding their proposal to serve the notice. (9) The local authority may from time to time serve on the occupier of premises in respect of which an overcrowding notice is in force, a notice requiring him to furnish them within 7 days with a statement in writing giving all or any of the following particulars, that is to say— (a) the number of individuals who are, on a date specified in the notice, occupying any part of the premises as sleeping accommodation ; (b) the number of families or households to which those individuals belong ; (c) the names of those individuals and of the heads of each of those families or households ; and (d) the rooms used by those individuals and families or households respectively. (10) Any person aggrieved by an overcrowding notice may, within twenty-one days after the date of service of the notice, appeal to the county court and— (a) on any such appeal the court may make such order confirming, quashing or varying the notice as it thinks fit; and (b) sections 37 and 38 of this Act shall apply in relation to an appeal under this section as they apply in relation to an appeal to the county court under Part II of this Act. (11) A local authority may at any time, on the application of any person having an estate or interest in the house, revoke an overcrowding notice or vary it so as to allow more people to be accommodated in the house. (12) If a local authority refuse an application under subsection (11) above, or do not within 35 days from the making of such an aplication, or within such further period as the applicant may in writing allow, notify the applicant of their decision on the application, the applicant may appeal to the county court, and on the appeal the court shall have power to revoke the notice or vary it in any manner in which it might have been varied by the local authority. (13) Any person who contravenes an overcrowding notice shall be guilty of an offence and liable on summary conviction to a fine not exceeding £500. (14) Any person who knowingly fails to comply with the requirements of a notice under subsection (9) above, or furnishes a statement which he knows is false in a material particular, shall be guilty of an offence and liable on summary conviction to a fine not exceeding £50.

• (2) Nothing in this section shall affect the < operation of the 1957 Act, as it had effect immediately before the commencement of this section, in relation to any notice served under section 90 before that date.

Houses in multiple occupation: means of escape from fire

147

• (1) Schedule 24 shall have effect in place of section 16 of the Housing Act 1961 and section 60 of the 1969 Act except in relation to notices served, undertakings accepted or orders made before the commencement of this section.

• (2) In relation to a breach after the commencement of this section of an undertaking accepted under section 60 of the 1969 Act subsection (3) of that section (fine on summary conviction) shall have effect as if for " £20 " there were substituted " £50 ".

• (3) The amendments and repeals made by this Act (except subsection (2) above) shall not affect the operation of any enactment in relation to any notice served, undertaking given or order made under the provisions replaced by this section.

Rent assessment panels: pensions for presidents and vicepresidents

148

In Schedule 10 to the 1977 Act (rent assessment committees) the following paragraph is inserted after paragraph 7—

(7A) The Secretary of State may, with the consent of the Minister for the Civil Service, provide for the payment of pensions, allowances or gratuities to or in respect of any person nominated to act as president or vice-president of a panel.

Power of local authority to require repair of houses

149

Supplemental

Interpretation

150

In this Act—

• “protected tenant” and “statutory tenant” have the same meanings as in the 1977 Act;

• “secure tenant” means the tenant under a secure tenancy and “secure tenancy” has the meaning given by section 28;

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “the 1977 Act” means the Rent Act 1977.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regulations and orders

151

• (1) Any power of the Secretary of State to make an order or regulations under this Act shall be exercisable by statutory instrument subject, except in the case of regulations under section 22(1), 33(2), 52(3), 56(7) or paragraph 11 of Schedule 3 or an order under section 52(4), 60 or 153 to annulment in pursuance of a resolution of either House of Parliament.

• (2) No order under section 52(4) or 60 shall be made unless a draft of it has been laid before Parliament and approved by a resolution of each House of Parliament.

• (3) Any order or regulation under this Act may make different provision with respect to different cases or descriptions of case, including different provision for different areas.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amendments, savings, transitional provisions and repeals

152

• (1) The enactments mentioned in Part I of Schedule 25 to this Act shall have effect subject to the amendments specified in that Schedule.

• (2) The savings and transitional provisions in Part II of that Schedule shall have effect.

• (3) The enactments specified in the first column of Schedule 26 to this Act are hereby repealed to the extent specified in column 3 of that Schedule.

Commencement

153

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) Sections 140, 150, 151, 152(2) and 153 to 155 shall come into operation on the passing of this Act.

• (4) The remaining provisions of this Act shall come into operation on such day as the Secretary of State may by order appoint; and—

• (a) different days may be appointed for different provisions; and

• (b) any provision may be brought into force on different days for England, Wales and Scotland.

Expenses and receipts

154

• (1) There shall be paid out of moneys provided by Parliament the administrative expenses of the Secretary of State under this Act and any increase attributable to this Act in the sums so payable under any other enactment.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Short title and extent

155

• (1) This Act may be cited as the Housing Act 1980.

• (2) Sections 114 to 116, 120 to 122(1), 123 to 133, 144, 151 to 153 of this Act, this section, Schedule 14, Part II of Schedule 16, paragraphs 1 to 3 of Schedule 17, Schedule 18, paragraphs 11 to 13, 24, 25 and 70 of Schedule 25 and the associated repeals in Schedule 26 extend to Scotland; but this Act does not otherwise so extend.

• (3) sections 111(8) 152(1), 153, this section and paragraphs 11, 12, 18 and 19 of Part I of Schedule 25 extend to Northern Ireland; but this Act does not otherwise so extend.

SCHEDULES 1—4A

PART I — Circumstances in which Right does not Arise

1

The landlord is a local authority and the dwelling-house is held by it otherwise than under Part V of the 1957 Act.

2

The landlord is a development corporation, the Commission for the New Towns or the Development Board for Rural Wales and—

• (a) the dwelling-house is held by it for purposes not corresponding to those for which dwelling-houses are held by local authorities under Part V of the 1957 Act; and

• (b) the landlord, or on appeal the Secretary of State, is of opinion that the right to buy ought not to be capable of being exercised with respect to the dwelling-house.

3

The dwelling-house has features which are substantially different from those of ordinary dwelling-houses and which are designed to make it suitable for occupation by physically disabled persons.

4

The dwelling-house is one of a group of dwelling-houses which it is the practice of the landlord to let for occupation by persons of pensionable age and a social service or special facilities are provided in close proximity to the group of dwelling-houses for the only or main purpose of assisting those persons.

5

The landlord has, within six weeks of the service on it of a notice claiming to exercise the right to buy the dwelling-house, applied to the Secretary of State for a determination under this paragraph, and the Secretary of State has determined that the right to buy is not to be capable of being exercised with respect to the dwelling-house ; and he shall so determine if satisfied—

• (a) that the dwelling-house is designed or specially adapted for occupation by persons of pensionable age ; and

• (b) that it is the practice of the landlord to let it only for occupation by such persons.

PART II — Circumstances in which Right Cannot be Exercised

1

The tenant is obliged to give up possession of the dwelling-house in pursuance of an order of the court, or will be so obliged at a date specified in such an order.

2

A bankruptcy petition is pending or a receiving order is in force against the person or one of the persons to whom the right to buy belongs or he is an undischarged bankrupt or has made a composition or arrangement with his creditors the terms of which remain to be fulfilled.

SCHEDULE 2

PART I — Common Provisions

Rights to be conveyed or granted—general

1

The conveyance or grant shall not exclude or restrict the general words implied under section 62 of the Law of Property Act 1925, unless the tenant consents or the exclusion or restriction is made for the purpose of preserving or recognising any existing interest of the landlord in tenant's incumbrances or any existing right or interest of any other person.

Rights of support, passage of water, etc.

2

• (1) The conveyance or grant shall, by virtue of this Schedule, have the effect stated in sub-paragraph (2) below as regards—

• (a) rights of support for any building or part of a building;

• (b) rights to the access of light and air to any building or part of a building;

• (c) rights to the passage of water or of gas or other piped fuel, or to the drainage or disposal of water, sewage, smoke or fumes, or to the use or maintenance of pipes or other installations for such passage, drainage or disposal;

• (d) rights to the use or maintenance of cables or other installations for the supply of electricity, for the telephone or for the receipt directly or by landline of visual or other wireless transmissions.

• (2) The effect is—

• (a) to grant with the dwelling-house all such easements and rights over other property, so far as the landlord is capable of granting them, as are necessary to secure to the tenant as nearly as may be the same rights as at the relevant time were available to him under or by virtue of the secure tenancy or any agreement collateral to it, or under or by virtue of any grant, reservation or agreement made on the severance of the dwelling-house from other property then comprised in the same tenancy ; and

• (b) to make the dwelling-house subject to all such easements and rights for the benefit of other property as are capable of existing in law and are necessary to secure to the person interested in the other property as nearly as may be the same rights as at the relevant time were available against the tenant under or by virtue of the secure tenancy or any agreement collateral to it, or under or by virtue of any grant, reservation or agreement made as mentioned in paragraph (a) above.

• (3) This paragraph—

• (a) does not restrict any wider operation which the conveyance or grant may have apart from this paragraph; but

• (b) is subject to any provision to the contrary that may be included in the conveyance or grant with the consent of the tenant.

Rights of way

3

The conveyance or grant shall include—

• (a) such provisions (if any) as the tenant may require for the purpose of securing to him rights of way over land not comprised in the dwelling-house, so far as the landlord is capable of granting them, being rights of way that are necessary for the reasonable enjoyment of the dwelling-house ; and

• (b) such provisions (if any) as the landlord may require for the purpose of making the dwelling-house subject to rights of way necessary for the reasonable enjoyment of other property, being property in which at the relevant time the landlord has an interest, or to rights of way granted or agreed to be granted before the relevant time by the landlord or by the person then entitled to the reversion on the tenancy.

Covenants and conditions

4

The conveyance or grant shall include such provisions (if any) as the landlord may require to secure that the tenant is bound by, or to indemnify the landlord against breaches of, restrictive covenants (that is to say covenants or agreements restrictive of the use of any land or premises) which affect the dwelling-house otherwise than by virtue of the secure tenancy or any agreement collateral to it and are enforceable for the benefit of other property.

5

Subject to Parts II and III below, the conveyance or grant may include such covenants and conditions as are reasonable in the circumstances.

Meaning of " incumbrances ", " tenant's incumbrances " and " relevant time "

6

In this Schedule—

• (a) " incumbrances" includes personal liabilities attaching in respect of the ownership of land or of an interest in land though not charged on the land or interest;

• (b) "tenant's incumbrance" means any incumbrance on the secure tenancy which is also an incumbrance on the reversion, and any interest derived directly or indirectly out of the secure tenancy ; and

• (c) " the relevant time " means, in all cases, the date on which the tenant's notice claiming to exercise the right to buy is served.

PART II — Conveyance of Freehold

General

7

The conveyance shall not exclude or restrict the all estate clause implied under section 63 of the Law of Property Act 1925, unless the tenant consents or the exclusion or restriction is made for the purpose of preserving or recognising any existing interest of the landlord in tenant's incumbrances or any existing right or interest of any other person.

8

The conveyance shall be of an estate in fee simple absolute subject to—

• (a) tenant's incumbrances; and

• (b) the burdens specified in paragraph 9 below ;

but otherwise free of incumbrances.

9

The burdens referred to in paragraph 8 above are burdens in respect of the upkeep or regulation for the benefit of any locality of any land, building, structure, works, ways or watercourse.

Covenants

10

The conveyance shall be expressed to be made by the landlord as beneficial owner (thereby implying the covenant set out in Part I of Schedule 2 to the Law of Property Act 1925).

PART III — Leases

General

11

• (1) The lease shall be for a term of not less than 125 years at a rent not exceeding £10 per annum, and the following provisions shall have effect with respect to the other terms of the lease but subject to sub-paragraph (2) below.

• (2) If a building contains two or more dwelling-houses and the landlord has, since the passing of this Act, granted a lease of one of them for a term of not less than 125 years, any lease granted in pursuance of this Chapter of the other or one of the others may be for a term expiring at the end of that term and, if it is for such a term, the assumption stated in section 6(4)(a) shall be modified accordingly.

Common use of premises and facilities

12

Where the tenant enjoyed, during the secure tenancy, the use, in common with others, of any premises, facilities or services, the lease shall include rights to the like enjoyment, so far as the landlord is capable of granting them, unless otherwise agreed between the landlord and the tenant.

Covenants by landlord

13

• (1) There shall be implied, by virtue of this Schedule, covenants by the landlord—

• (a) to keep in repair the structure and exterior of the dwelling-house and of the building in which it is situated (including drains, gutters and external pipes) and to make good any defect affecting that structure ;

• (b) to keep in repair any other property over or in respect of which the tenant has any rights by virtue of this Schedule;

• (c) to ensure, so far as practicable, that any services which are to be provided by the landlord and to which the tenant is entitled (whether by himself or in common with others) are maintained at a reasonable level and to keep in repair any installation connected with the provision of those services.

• (2) The covenant to keep in repair implied by virtue of subparagraph (1)(a) above includes a requirement that the landlord shall rebuild or re-instate the dwelling-house and the building in which it is situated in the case of destruction or damage by fire, tempest, flood or any other cause against the risk of which it is normal practice to insure.

• (3) The county court may, by order made with the consent of the parties, authorise the inclusion in the lease or in any agreement collateral to it, of provisions excluding or modifying the obligations of the landlord under the covenants implied by this paragraph, if it appears to the court that it is reasonable to do so.

Covenant by tenant

14

Unless otherwise agreed between the landlord and the tenant there shall be implied, by virtue of this Schedule, a covenant by the tenant to keep the interior of the dwelling-house in good repair (including decorative repair).

Avoidance of certain agreements

15

Any provision of the lease or of any agreement collateral to it shall be void in so far as it purports—

• (a) to prohibit or restrict the assignment of the lease or the subletting, wholly or in part, of the dwelling-house; or

• (b) to enable the landlord to recover from the tenant any part of the costs incurred by the landlord in discharging or insuring against his obligations under paragraph 13(1)(a) or 13(1)(b) above, or

• (c) to authorise any forfeiture or impose on the tenant any penalty or disability in the event of his enforcing or relying on the preceding provisions of this Schedule ;

but subject to section 19 of this Act and paragraph 16 below.

16

A provision is not void by virtue of paragraph 15 above in so far as it requires the tenant to bear a reasonable part of the costs of carrying out repairs not amounting to the making good of structural defects or of the costs of making good any structural defects falling within paragraph 17 below or of insuring against risks involving such repairs or the making good of such defects.

17

A structural defect falls within this paragraph if—

• (a) the landlord has notified the tenant of its existence before the lease was granted ; or

• (b) the landlord does not become aware of it earlier than 10 years after the lease is granted.

PART IV — Charges on Freehold

18

Where there is a charge (however created or arising) on the freehold which is not a tenant's incumbrance, then—

• (a) if it is not a rentcharge, the conveyance of the freehold in pursuance of the right to buy shall be effective to release the freehold from the charge, but the release shall not affect the personal liability of the landlord or any other person in respect of any obligation which the charge was created to secure ; and

• (b) whether or not it is a rentcharge, the charge shall not affect a lease granted in pursuance of the right to buy.

19

• (1) Where the freehold is subject to a rentcharge which does not affect other land the conveyance shall be made subject to the rent-charge.

• (2) Where the freehold is subject to a rentcharge which also affects other land the conveyance shall be made subject to the rentcharge but shall contain a covenant by the landlord to indemnify the tenant and his successors in title in respect of any liability arising under the rentcharge.

• (3) In a case falling within sub-paragraph (2) above the landlord shall, immediately after the conveyance and if the rentcharge is of a kind which may be redeemed under the Rentcharges Act 1977, take such steps as are necessary to redeem the rentcharge, so far as it affects land owned by the landlord (including land treated by subparagraph (4) below as so owned).

• (4) For the purposes of the Rentcharges Act 1977 and of subparagraph (3) above any land which has been conveyed by the landlord in pursuance of the right to buy, but subject to the rentcharge, shall be treated as if it had not been so conveyed but had continued to be owned by the landlord.

20

In this Part of this Schedule " rentcharge " has the same meaning as in the Rentcharges Act 1977 ; and for the purposes of paragraph 19 above land is owned by a person if he is the owner of the land within the meaning of section 13(1) of that Act.

SCHEDULE 3

Long leases

1

• (1) A tenancy is not a secure tenancy if it is a long tenancy.

• (2) For the purposes of this paragraph a long tenancy is a tenancy granted for a term certain exceeding 21 years, whether or not it is (or may become) terminable before the end of that term by notice given by the tenant or by re-entry or forfeiture, and —

• (a) includes a tenancy for a term fixed by law under a grant with a covenant or obligation for perpetual renewal, unless it is a tenancy by sub-demise from one which is not a long tenancy; but

• (b) does not include a tenancy granted so as to become terminable by notice after a death, unless it is a shared ownership tenancy.

• (3) For the purposes of this paragraph a tenancy is a " shared ownership tenancy " if—

• (a) it is granted by a housing association which, at the time of the grant, is registered under section 13 of the 1974 Act;

• (b) it is granted at a premium which is calculated by reference to a percentage of the value of the dwelling-house or of the cost of providing it; and

• (c) at the time it is granted it complies with the requirements of the regulations then in force under section 14G(4)(6) of this Act or, in the case of a tenancy granted before any such regulations have been brought into force, it complies with the first such regulations to be in force.

Premises occupied under contract of employment

2

• (1) A tenancy is not a secure tenancy if the tenant is an employee of the landlord or, if not such an employee, is an employee of—

• (a) a local authority ;

• (b) a development corporation ;

• (c) the Commission for the New Towns ;

• (d) a county council; or

• (e) the Development Board for Rural Wales ;

and his contract of employment requires him to occupy the dwelling-house for the better performance of his duties.

• (2) In this paragraph " contract of employment" means a contract of service or of apprenticeship, whether express or implied and (if express) whether oral or in writing.

Social service and educational premises

3

A tenancy is not a secure tenancy if the tenant is an employee of the landlord and—

• (a) the terms of the tenancy provide for the tenancy to terminate on the tenant ceasing to be employed by the landlord;

• (b) the dwelling-house is held by the landlord for the purpose of any of its functions under the Education Act 1944 or under any of the enactments specified in Schedule 1 to the Local Authority Social Services Act 1970; and

• (c) the dwelling-house forms part of a building held for those purposes or is within the curtilage of such a building.

Land acquired for development

4

A tenancy is not a secure tenancy if the dwelling-house is on land which has been acquired for development (within the meaning of section 22 of the Town and Country Planning Act 1971) and the dwelling-house is used by the landlord, pending development of the land, as temporary housing accommodation.

Accommodation for homeless persons

5

A tenancy granted in pursuance of section 3(4), 4(3) or 5(6) of the Housing (Homeless Persons) Act 1977 is not a secure tenancy before the expiry of a period of twelve months beginning with the date on which the tenant has received the notification required by section 8(1) of that Act or, if he received a notification under section 8(5) of that Act, that notification, unless he has before the expiry of that period been notified by the landlord that the tenancy is to be regarded as a secure tenancy.

Temporary accommodation for persons seeking employment

6

A tenancy of a dwelling-house within any district or London borough which was granted to a person who was not immediately before the grant resident in the district or London borough is not a secure tenancy before the expiry of one year from the grant if—

• (a) it was granted to that person for the purpose—

• (i) of meeting his need for temporary accommodation within the district or London borough in order to work there; and

• (ii) of enabling him to find permanent accommodation there ; and

• (b) before the grant of the tenancy—

• (i) the tenant obtained employment, or an offer of employment, within the district or London borough ; and

• (ii) the landlord notified the tenant in writing of the circumstances in which this exception applies and that in its opinion the proposed tenancy would fall within this exception;

unless the tenant has before the expiry of that year been notified by the landlord that the tenancy is to be regarded as a secure tenancy.

Short-term arrangements

7

A tenancy is not a secure tenancy if—

• (a) the dwelling-house has been leased to the landlord with vacant possession for use as temporary housing accommodation ;

• (b) the terms on which it has been leased include provision for the lessor to obtain vacant possession from the landlord on the expiry of a specified period or when required by the lessor;

• (c) the lessor is not a body which is capable of granting secure tenancies; and

• (d) the landlord has no interest in the dwelling-house other than under the lease in question or as mortgagee.

Temporary accommodation during works

8

A tenancy is not a secure tenancy if—

• (a) the dwelling-house has been made available for occupation by the tenant or his predecessor in title while works are carried out on the dwelling-house which he previously occupied as his home ; and

• (b) the tenant (or his predecessor in title) was not a secure tenant of that other dwelling-house at the time when he ceased to occupy it as his home.

Agricultural holdings

9

A tenancy is not a secure tenancy if the dwelling-house is comprised in an agricultural holding (within the meaning of the Agricultural Holdings Act 1948) and is occupied by the person responsible for the control (whether as tenant or as servant or agent of the tenant) of the farming of the holding.

Licensed premises

10

A tenancy is not a secure tenancy if the dwelling-house consists of or comprises premises licensed for the sale of intoxicating liquor for consumption on the premises.

Student lettings

11

A tenancy of a dwelling-house is not a secure tenancy before the expiry of the period of exemption if—

• (a) it was granted for the purpose of enabling the tenant to attend a designated course at an educational establishment; and

• (b) before the grant of the tenancy the landlord notified him in writing of the circumstances in which this exception applies and that in its opinion the proposed tenancy would fall within this exception ;

unless the tenant has before the expiry of that period been notified by the landlord that the tenancy is to be regarded as a secure tenancy.

1954 Act tenancies

12

A tenancy is not a secure tenancy if it is one to which Part II of the Landlord and Tenant Act 1954 applies.

Almshouses

13

A licence to occupy a dwelling-house is not a secure tenancy if—

• (a) the licence was granted by an almshouse charity ; and

• (b) any sum payable by the licensee under the licence does not exceed the maximum contribution that the Charity Commissioners have from time to time authorised or approved for the almshouse charity as a contribution towards the cost of maintaining its almshouses and essential services in them.

SCHEDULE 4

PART I — Grounds on Which Court May Order Possession

PART II — Suitability of Accommodation

1

• (1) For the purposes of this Part of this Act, accommodation is suitable if it consists of premises—

• (a) which are to be let as a separate dwelling under a secure tenancy, or

• (b) which are to be let as a separate dwelling under a protected tenancy (other than one of a kind mentioned in subparagraph (2) below) within the meaning of the 1977 Act,

and, in the opinion of the court, the accommodation is reasonably suitable to the needs of the tenant and his family.

• (2) The kind of protected tenancy referred to in sub-paragraph (1) above is one under which the landlord might recover possession of the dwelling-house under one of the Cases in Part II of Schedule 15 to the 1977 Act (cases where court must order possession).

2

In detemining whether it is reasonably suitable to those needs regard shall be had to—

• (a) the nature of the accommodation which it is the practice of the landlord to allocate to persons with similar needs ;

• (b) the distance of the accommodation available from the place of work or education of the tenant and of any members of his family;

• (c) its distance from the home of any member of the tenant's family if proximity to it is essential to that member's or the tenant's well-being;

• (d) the needs (as regards extent of accommodation) and means of the tenant and his family ;

• (e) the terms on which the accommodation is available and the terms of the secure tenancy ;

• (f) if any furniture was provided by the landlord for use under the secure tenancy, whether furniture is to be provided for use in the other accommodation and, if it is, the nature of that furniture;

but where possession is sought on ground 7, accommodation otherwise reasonably suitable to the needs of the tenant and his family shall not be deemed not to be so by reason only that the permitted number of persons, computed under Schedule 6 to the 1957 Act in relation to the number and floor area of the rooms in it, is less than the number of persons living in the dwelling-house of which possession is sought.

3

Where the landlord is not a local authority for the purposes of Part V of the 1957 Act, a certificate of such an authority certifying that the authority will provide suitable accommodation for the tenant by a date specified in the certificate shall be conclusive evidence that suitable accommodation will be available for him by that date, if the dwelling-house of which possession is sought is situated in the district for supplying the needs of which the authority has power under that Part of that Act.

SCHEDULE 5

1

The exceptions and modifications referred to in section 58(1) and (2) of this Act are as follows.

2

Sections 23, 43 and 56 to 60B do not apply.

3

In relation to an assured tenancy the expression “the holding” (which is defined for the purposes of Part II in section 23(3) means the property comprised in the tenancy.

4

• (1) Section 30 applies as if—

• (a) for paragraph (d) in subsection (1) there were substituted the following paragraph—

“(d) that the landlord has offered and is willing to provide or secure the provision of suitable alternative accommodation for the tenant,”;

• (b) in subsection (2) for the words from “a tenancy” to the end there were substituted the words “an assured tenancy or successive assured tenancies”; and

• (c) at the end there were added the subsections set out in sub-paragraph (2) below.

• (2) The following are the subsections added to section 30 in its application to assured tenancies—

(4) Accommodation shall be deemed to be suitable if it consists of either— (a) premises which are to be let as a separate dwelling such that they will then be let on an assured tenancy or on a protected or secure tenancy, or (b) premises to be let as a separate dwelling on terms which will, in the opinion of the court, afford to the tenant security of tenure reasonably equivalent to that afforded by this Part of this Act in the case of an assured tenancy, and, in the opinion of the court, the accommodation fulfils the conditions mentioned below. (5) The conditions are that the accommodation is reasonably suitable to— (a) the needs of the tenant and his family as regards proximity to place of work; (b) the means of the tenant; and (c) the needs of the tenant and his family as regards extent and character; and that if any furniture was provided for use under the assured tenancy in question, furniture is provide for use in the accommodation which is either similar to that so provided or is reasonably suitable to the needs of the tenant and his family. (6) Accommodation shall not be deemed to be suitable to the needs of the tenant and his family if the result of their occupation of the accommodation would be that it would be an overcrowded dwelling-house for the purposes of the Housing Act 1957. (7) In this section— - “assured tenancy” has the same meaning as in section 56 of the Housing Act 1980; - “protected tenancy” means a protected tenancy within the meaning of the Rent Act 1977, other than one under which the landlord might recover possession of the dwelling-house under one of the Cases in Part II of Schedule 15 to that Act (cases where the court must order possession); and - “secure tenancy” has the same meaning as in section 28 of the Act of 1980.

.

5

Section 31A applies as if in subsection (1)(a) for the words “for the purposes of the business carried on by the tenant” there were substituted “as a residence for the tenant and his family”.

6

Section 34 applies as if in subsection (2)(b) for the words from “tenancies” to the end there were substituted the words “assured tenancies (within the meaning of section 56 of the Housing Act 1980); and”.

7

Section 37 applies as if for subsections (2) and (3) there were substituted the following subsection—

(2) The said amount shall be the product of the appropriate multiplier and the rateable value of the holding.

.

8

Section 38 applies as if the following provisions were omitted—

• (a) in subsection (1), the words “(except as provided by subsection (4) of this section)”;

• (b) in subsection (2), the words from the beginning to the end of paragraph (b);

• (c) subsections (3) and (4).

9

Section 63(7)(a) applies as if reference to section 23(3) of the Act of 1954 were a reference to paragraph 3 of this Schedule.

SCHEDULE 6

1

Schedule 11 to the 1977 Act (applications for registration of rent) is amended as follows.

2

For paragraphs 2 and 3 there are inserted the following paragraphs—

(2) (1) Where the application is made jointly by the landlord and the tenant and it appears to the rent officer, after making such inquiry, if any, as he thinks fit and considering any information supplied to him in pursuance of paragraph 1 above, that the rent specified in the application is a fair rent, he may register that rent without further proceedings. (2) Where the rent officer registers a rent under this paragraph he shall notify the landlord and the tenant accordingly. (3) (1) In the case of an application which does not fall within paragraph 2 above, the officer shall serve on the landlord and on the tenant a notice— (a) stating the rent specified in the application ; (b) stating any sum specified in the application in accordance with section 67(2)(b) of this Act ; and (c) inviting the person on whom the notice is served to state, within a period of not less than seven days after the service of the notice, whether he wishes the rent officer to consider, in consultation with the landlord and the tenant, what rent ought to be registered for the dwelling-house. (2) Where, in pursuance of section 67(2)(b), the application was accompanied by details of the landlord’s expenditure in connection with the provision of services, a notice under this paragraph shall be accompanied by a copy of those details. (3A) If, after service of a notice by the rent officer under paragraph 3 above, no request is made within the period specified in the notice for the rent to be considered as mentioned in paragraph 3(1)(c) above, the rent officer after considering what rent ought to be registered or, as the case may be, whether a different rent ought to be registered, may— (a) determine a fair rent and register it as the rent for the dwelling-house ; or (b) confirm the rent for the time being registered and note the confirmation in the register ; or (c) serve a notice under paragraph 4(2) below.

3

For sub-paragraph (1) of paragraph 4 there is substituted the following sub-paragraph—

(1) Where, in response to a notice served by the rent officer under paragraph 3 above, the landlord or the tenant asks for the rent to be considered as mentioned in paragraph 3(1)(c), the rent officer shall serve a notice under this paragraph.

.

4

In sub-paragraph (2) of paragraph 4, for the word “ notice” there are inserted the words “ notice, or 14 days in a case falling within paragraph 3(1)(b) above”.

5

After sub-paragraph (3) of paragraph 4 there is inserted the following sub-paragraph—

(4) The rent officer may, where he considers it appropriate, arrange for consultations in respect of one dwelling-house to be held together with consultations in respect of one or more other dwelling-houses.

6

In paragraph 5, for the words “ and shall”, immediately after sub-paragraph (b), there is substituted—

(5A) Where a rent has been registered or confirmed by the rent officer under paragraph 3A or 5 above, he shall.

7

In paragraph 6(1) for “ 5” there is substituted “ 5A”.

Schedule 7

The following new Part is inserted at the end of Schedule 15 to the 1977 Act (grounds for possession of dwelling-houses let on or subject to protected or statutory tenancies)—

SCHEDULE 8

Part I

1

Where a tenancy granted before the commencement of section 73 of this Act becomes, or would but for its low rent become, a protected tenancy by virtue of that section, section 5 of the 1977 Act applies as if in relation to the dwelling-house the appropriate day were the commencement of that section.

2

In Part I of Schedule 15 to the 1977 Act the following is inserted after paragraph (b) of Case 6 :

(bb) the commencement of section 73 of the Housing Act 1980, in the case of a tenancy which became a regulated tenancy by virtue of that section.

3

In Part II of Schedule 15 to the 1977 Act any reference to the relevant date shall (notwithstanding paragraph 2 of Part III of that Schedule) be construed, in the case of a tenancy which becomes a regulated tenancy by virtue of section 73 of this Act as meaning the date falling six months after the passing of this Act.

4

• (1) Part II of Schedule 18 to the 1977 Act applies to a tenancy which becomes a regulated tenancy by virtue of section 73 of this Act (unless it is a tenancy falling within sub-paragraph (2) below).

• (2) Nothing in Part IX of the 1977 Act applies to the assignment, before the end of the year 1990, of a tenancy which falls within this sub-paragraph; and a tenancy falls within this sub-paragraph if it was granted for a term certain and its terms do not inhibit both the assignment and the underletting of the whole of the premises comprised in the tenancy, and either—

• (a) it was granted before the commencement of section 73 of this Act and became a regulated tenancy by virtue of that section; or

• (b) it is a regulated tenancy by virtue of that section and was granted to a person who, at the time of the grant, was the tenant of the premises comprised in it under a regulated tenancy which also fell within this sub-paragraph.

• (3) For the purposes of sub-paragraph (2) above the terms of a tenancy inhibit an assignment or underletting if they—

• (a) preclude it; or

• (b) permit it subject to a consent but exclude section 144 of the Law of Property Act 1925 (no payment in nature of fine); or

• (c) permit it subject to a consent but require in connection with a request for consent the making of an offer to surrender the tenancy.

Part II

5

Where the question whether a person is a qualifying worker for the purposes of the Rent (Agriculture) Act 1976 arises by virtue of section 73 of this Act, Part II of Schedule 3 to that Act applies as if the date of operation for forestry workers were the commencement of that section.

6

Where a protected occupancy or statutory tenancy within the meaning of the Rent (Agriculture) Act 1976 arises at the commencement of section 73 of this Act, Cases VIII and X in Schedule 4 to that Act apply in relation to it as if the operative date were that commencement.

7

For the purpose of determining whether, at the commencement of section 73 of this Act, a person becomes a statutory tenant for the purposes of the Rent (Agriculture) Act 1976 and of applying that Act to him if he does, paragraph 3 of Schedule 9 to that Act applies as if the operative date were that commencement.

8

Paragraphs 6 and 7 above apply in relation to forestry workers as they apply in relation to other persons and paragraph 7 of Schedule 9 to the Rent (Agriculture) Act 1976 does not apply.

Part III

9

Where an interest belongs to Her Majesty in right of the Duchy of Lancaster, then, for the purposes of Part I of the Landlord and Tenant Act 1954, the Rent (Agriculture) Act 1976 or the 1977 Act, the Chancellor of the Duchy of Lancaster shall be deemed to be the owner of the interest.

10

Where an interest belongs to the Duchy of Cornwall, then, for the purposes of Part I of the Landlord and Tenant Act 1954, the Rent (Agriculture) Act 1976 or the 1977 Act, the Secretary of the Duchy of Cornwall shall be deemed to be the owner of the interest.

SCHEDULE 9

1

Paragraphs 2 to 6 below apply to any tenancy which was a protected or statutory tenancy but which, by virtue of the landlord becoming a “housing trust” within the meaning of section 15 of the 1977 Act, has ceased to be such a tenancy.

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

Registration of a rent, or of a different rent, for the dwelling-house shall be effected in pursuance of section 87 of the 1977 Act; but until such time as a rent is so registered—

• (a) the rent recoverable under the tenancy; and

• (b) where a rent was registered for the dwelling-house under Part IV of the 1977 Act, the time at which an application for a different registered rent may be made;

shall be determined as if the tenancy had continued to be a regulated tenancy.

4

If the tenant was a successor within the meaning of Schedule 1 to the 1977 Act he shall not be treated as a successor for the purposes of Part IV of the Housing Act 1985 (secure tenancies).

5

Section 83 of the Housing Act 1985 (notice of proceedings for possession) does not apply in any case where proceedings for possession were begun before the tenancy ceased to be a protected or statutory tenancy; but in such a case the court shall allow the parties to take such steps in relation to the proceedings as it considers appropriate in consequence of the tenancy becoming a secure tenancy.

6

• (1) This paragraph applies in any case where—

• (a) the tenant died before the date on which the tenancy ceased to be a protected or statutory tenancy; and

• (b) there was then more than one member of his family entitled to succeed him as statutory tenant but no decision had, by that date, been reached as to which of them was to succeed.

• (2) In a case to which this paragraph applies, the person who is to be the secure tenant of the dwelling-house on the tenancy becoming a secure tenancy shall be selected by the landlord from among those mentioned in sub-paragraph (1)(b) above notwithstanding that the question may have been referred to the county court in accordance with paragraph 1(7) of Schedule 1 to the 1977 Act.

SCHEDULE 10

1

• (1) Section 86 of the 1977 Act is amended as follows.

• (2) In subsection (2) after the word “ tenancy”, where it first occurs, there are inserted the words “ (other than a co-ownership tenancy)”.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) After subsection (3) there is inserted the following subsection—

(3A) For the purposes of this section a tenancy is a “ co-ownership tenancy” if— (a) it was granted by a housing association which falls within section 15(3)(d) of this Act ; and (b) the tenant (or his personal representatives) will, under the terms of the tenancy agreement or of the agreement under which he became a member of the association, be entitled, on his ceasing to be a member and subject to any conditions stated in either agreement, to a sum calculated by reference directly or indirectly to the value of the dwelling house.

.

• (5) For subsection (4) there is substituted the following subsection—

(4) In this Part of this Act “ housing trust” has the same meaning as in section 15 of this Act.

.

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

Sections 90 (special rent limit where previous rent limit exceeds registered rent) and 91 (procedure on application to Secretary of State under section 90) of the 1977 Act are hereby repealed.

4

In section 92 (conversion of housing association tenancies into regulated tenancies) in subsection (1) the words “ in such form as may be prescribed” are hereby repealed.

5