Housing Act 1980

• (1) Section 93 of the 1977 Act (increase of rent without notice to quit) is amended as follows.

• (2) In subsection (1), for the words from “ given by the landlord” to the end there are substituted the words “ specifying the date on which the increase is to take effect and given by the landlord to the tenant not later than four weeks before that date.”.

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

(2) Where a notice of increase is given under subsection (1) above and the tenant, before the date specified in the notice of increase, gives a valid notice to quit, the notice of increase does not take effect unless the tenant, with the written agreement of the landlord, withdraws his notice to quit before that date.

• (4) Subsection (3) is hereby repealed.

• (5) This paragraph only applies to notices of increase given after the commencement of this paragraph.

SCHEDULE 11

PART I — Subsidies Payable Until 1980-81

PART II — Contributions Towards Costs of Improvement or Conversion

SCHEDULE 12

Consideration of application for grant

1

In section 57(3) (application not to be entertained unless certain conditions are complied with) for " entertain" substitute " approve ".

Withdrawal of application for grant and submission of new one

2

In section 57(6), omit the words " Except in so far as this Act otherwise provides " ; and after that subsection insert—

(6A) Subsection (6) does not apply if the relevant works have not been begun and either— (a) more than 2 years have elapsed since the date on which the previous application was approved ; or (b) the application is made with a view to taking advantage of orders under section 59 below.

Standard amenities

3

After section 58(2) insert—

(3) An order under subsection (2) above shall be subject to annulment in pursuance of a resolution of the House of Commons.

"Appropriate percentage" for determining amount, or maximum amount, of grant

4

For section 59 substitute—

(59) (1) In this Part of this Act "the appropriate percentage " (which is relevant for determining the amount or the maximum amount of grant) shall be a percentage ascertained from orders made by the Secretary of State with the consent of the Treasury and in force when the application for grant is approved. (2) Orders under this section shall operate with respect to applications for grant approved after such date as may be specified in the applicable order; but an order shall not be made unless a draft of it has been approved by resolution of the House of Commons, and shall not specify a date earlier than die date of the laying of the draft.

Certificates of future occupation

5

In section 60, substitute the following for subsections (3) and (4)—

(3) A " certificate of owner-occupation" is a certificate stating that the applicant for the grant intends that, on or before the first anniversary of the certified date and throughout the period of 4 years beginning on that first anniversary, the dwelling will be the only or main residence of, and will be occupied exclusively by, either— (a) the applicant himself and members of his household (if any); or (b) a person who is a member of the applicant's family, or a grandparent or grandchild of the applicant or his spouse, and members of that person's household (if any). (4) But in a case where application for grant is made by the personal representatives of a deceased person or by trustees, it is a certificate stating that the applicants are personal representatives or trustees and intend that, on or before the first anniversary of the certified date and throughout the period of 4 years beginning on that first anniversary, the dwelling will be the only or main residence of, and exclusively occupied by, either— (a) a beneficiary and members of his household (if any); or (b) a person related to a beneficiary by being a member of his family or a grandparent or grandchild of the beneficiary or his spouse, and members of that person's household (if any); and " beneficiary" means a person who, under the will or intestacy or, as the case may require, under the terms of the trust, is beneficially entitled to an interest in the dwelling or the proceeds of sale of it.

6

In section 60(5), add at the end—

(disregarding any part of that period in which neither of the above paragraphs applies but the dwelling is occupied by a person who is a protected occupier under the Rent (Agriculture) Act 1976).

.

Improvement grants

7

After section 62(4) insert—

(5) Subsections (1) and (2) above do not apply to dwellings in housing action areas. (6) Those subsections do not apply where the application for an improvement grant is made in respect of a dwelling for a disabled occupant and it appears to the local authority that the works are needed to meet a requirement arising from the particular disability from which the disabled occupant suffers.

8

Omit section 64(7).

Intermediate grants

9

For section 66 substitute—

(66) A local authority shall not approve an application for an intermediate grant unless— (a) they are satisfied that on completion of the relevant works the dwellings or, as the case may be each of the dwellings, to which the application relates will be fit for human habitation (to be determined in accordance with section 4 of the Housing Act 1957); or (b) it seems reasonable in all the circumstances to do so even though the dwelling or dwellings will not reach that standard on completion of the relevant works.

10

• (1) In section 67(2) omit paragraph (b) and the word " and " immediately preceding it.

• (2) For section 67(3) substitute—

(3) Where the relevant works specified in an application for an intermediate grant include works of repair or replacement which go beyond those needed, in the opinion of the local authority, to put the dwelling into reasonable repair (disregarding the state of internal decorative repair) having regard to its age and character and the locality in which it is situated and the period during which it is likely to be available for use as a dwelling, the local authority may, with the consent of the applicant, treat the application as varied so that the relevant works— (a) are confined to works other than works of repair or replacement; or (b) include only such works of repair or replacement as (taken with the rest of the relevant works) will, in the opinion of the local authority, put the dwelling into reasonable repair, and may approve the application as so varied.

• (3) Omit section 67(4).

11

• (1) In section 68(3)(a) for " £800 or such other amount as may be prescribed " substitute " the relevant limit ".

• (2) In section 68, after subsection (3) insert—

(3A) The relevant limit for the purposes of subsection (3)(a) above is— (a) £2,000 or such other amount as may be prescribed in a case where either— (i) the dwelling will, in the opinion of the local authority, be put on completion of the relevant works into reasonable repair (disregarding the state of internal decorative repair) having regard to its age and character and the locality in which it is situated and the period during which it is likely to be available for use as a dwelling ; or (ii) it appears to the local authority that the applicant could not without undue hardship finance the cost of the works necessary to put the dwelling into reasonable repair; (b) in any other case, the amount obtained by multiplying the number of standard amenities to be provided on completion of the relevant works by £200 or such other amount as may be prescribed, but subject to a maximum of £800 or such other amount as may be prescribed. (3B) An order under subsection (3A) above prescribing an amount shall be subject to annulment in pursuance of a resolution of the House of Commons.

.

Repairs grant

12

• (1) In section 71, for subsection (2) substitute—

(2) A local authority shall not in any case approve an application for a repairs grant unless— (a) they are satisfied that the relevant works are of a substantial and structural character ; or (b) the relevant works satisfy requirements prescribed (with the consent of the Treasury).

• (2) In section 71(3), omit paragraph (a) and after that subsection insert—

(3A) But an application for a repairs grant shall not be approved— (a) unless it is in respect of an old dwelling (within any meaning given to that expression by an order made by the Secretary of State); and (b) in the case of a dwelling situated elsewhere than in a housing action area where the application is accompanied by a certificate of owner-occupation, unless the rateable value (at the date of the application) is within limits specified by an order so made. (3B) Orders under subsection (3A)(b) require the consent of the Treasury.

13

After section 71 insert—

(71A) In so far as an application for a repairs grant relates to the execution of works required by a notice under section 9 of the Housing Act 1957 (a) section 60 above shall not apply ; and (b) the authority shall not refuse it if it is duly made and the authority are satisfied that the works are necessary for compliance with the notice.

14

• (1) After section 72(3), insert—

(3A) An order under this section prescribing an amount shall be subject to annulment in pursuance of a resolution of the House of Commons.

• (2) For section 72(4) substitute—

(4) The amount of a repairs grant— (a) so far as the grant is made in pursuance of section 71A above, shall be the appropriate percentage of the eligible expense ; and (b) otherwise shall be such as may be fixed by the local authority when they approve the application for the grant, but shall not exceed the appropriate percentage of the eligible expense. (4A) With the notification under subsection (1) above the local authority shall send to the applicant a notification of the amount of the grant.

• (3) In section 72(5), for " subsection (4)" substitute " subsection (4A) "

Special grants for houses in multiple occupation

15

In section 56(2) of the Act, for paragraph (c) substitute—

(c) a " special grant " in respect of works required for the improvement of a house in multiple occupation by the provision of (both or either)— (i) standard amenities, (ii) means of escape from fire.

.

16

• (1) In section 69, for subsection (2) substitute—

(2) An application for a special grant must state by how many households and individuals the house concerned is occupied and (as applicable)— (a) the standard amenities with which it is already provided ; (b) the means of escape from fire which are already available. (2A) Subject to section 69A, the application shall not be approved unless the local authority are satisfied that on completion of the relevant works the house will attain the relevant standard of repair. (2B) If, in the opinion of the authority, the relevant works are more extensive than is necessary for the purpose of securing that the house will attain that standard, the authority may (with the consent of the applicant) treat the application as varied so that the relevant works include only such works as seem to the local authority necessary for that purpose ; and they may then approve the application as so varied. (2C) For the purposes of this section a house shall be taken to attain the relevant standard of repair if it is in reasonable repair (disregarding the state of internal decorative repair) having regard to its age and character and the locality in which it is situated.

.

• (2) In section 84, at the end of the definition of " the relevant standard " add

and (d) in relation to a special grant, the relevant standard referred to in section 69(2C) above.

17

After section 69 insert—

(69A) (1) In so far as an application for a special grant relates to the provision of standard amenities, the authority shall not refuse it if it is duly made and the authority are satisfied that the relevant works are necessary for compliance with so much of a notice under section 15 of the Housing Act 1961 as relates to standard amenities. (2) In so far as such an application relates to the provision of means of escape from fire, the authority shall not refuse it if it is duly made and the authority are satisfied that the relevant works are necessary for compliance with a notice under Schedule 24 to the Housing Act 1980.

18

• (1) For section 70 substitute—

(70) (1) Where a local authority approve an application for a special grant they shall determine the amounts of the expenses which they think proper to be incurred respectively for those of the relevant works which— (a) consist in providing standard amenities ; (b) relate to the provision of means of escape from fire ; and (c) consist of works of repair or replacement; and the authority shall notify the applicant of the amounts so determined by them. (2) If the applicant satisfies the local authority that the relevant works cannot be, or could not have been, carried out without additional works and that this could not have been reasonably foreseen at the time the application was made, the local authority may determine a higher amount under any of paragraphs (a) to (c) of subsection (1). (3) The amount of a special grant— (a) so far as the grant is made in pursuance of section 69A above, shall be the appropriate percentage of the eligible expense ascertained under section 70A below; and (b) otherwise shall be such as may be fixed by the local authority when they approve the application for the grant but shall not exceed the appropriate percentage of the eligible expense ascertained under section 70A below. (4) With the notification under subsection (1) above, the local authority shall send to the applicant a notification of the amount of the grant. (5) If, after the amount of a special grant has been notified, the local authority under subsection (2) determine a higher amount under any of the heads of subsection (1), the eligible expense shall be recalculated under section 70A; and if the amount of it is then greater than when the application for grant was approved, the amount of the grant shall be increased, and the applicant notified, accordingly.

.

• (2) In section 82(2) for " 70(3) " substitute " 70(2) ".

19

After section 70 insert—

(70A) (1) Except in a case or description of case in respect of which the Secretary of State approves a higher eligible expense, the eligible expense for the purposes of a special grant shall be the aggregate of the contributory elements specified in the following subsections. (2) As regards the provision of standard amenities, the contributory element is so much of the amount determined under section 70(1)(a) as does not exceed the aggregate of the amounts specified in the second column of Part I of Schedule 6 to this Act in relation to each of the standard amenities which are to be provided by the relevant works (so that, where the relevant works make provision for more than one standard amenity of the same description, a separate amount shall be aggregated for each of those amenities). (3) As regards the provision of means of escape from fire, the contributory element is so much of the amount determined under section 70(1)(b) as does not exceed £6,750 or such other amount as may be prescribed. (4) As regards works of repair or replacement, the contributory element is so much of the amount determined under section 70(1)(c) as does not exceed £2,000 or such other amount as may be prescribed. (5) An order under this section prescribing an amount shall be subject to annulment in pursuance of a resolution of the House of Commons.

Standard of improvement, repair, etc.

20

• (1) In section 61(3)(6) for " good repair " substitute " reasonable repair ".

• (2) In section 61 insert after subsection (4)—

(4A) A local authority may dispense, to the extent they think fit, with any of the conditions specified in paragraphs (a) to (c) of subsection (3) if they are satisfied that the applicant could not, without undue hardship, finance the cost of the works without the assistance of a grant.

• (3) In section 71(5) for "good repair" substitute " reasonable repair ".

Grant conditions

21

In section 73(3)—

• (a) for paragraph (a) substitute—

(a) the applicant for the grant and— (i) in a case where the application was accompanied by a certificate of owner-occupation with respect to the dwelling, any person who derives title to the dwelling through or under the applicant; or (ii) in a case where the application was accompanied by a certificate of availability for letting with respect to the dwelling, any person who derives title to the dwelling through or under the applicant otherwise than by a conveyance for value;

.

• (b) after paragraph (a), insert—

(aa) a person who is a member of the applicant's family or a grandparent or grandchild of the applicant or his spouse; and

• (c) at the end of paragraph (b) insert—

and (bb) a person related to one who qualifies under paragraph (b) above, by being a member of his family or a grandparent or grandchild of his or of his spouse

.

22

At the end of section 73(4) insert—

(disregarding any part of that period in which neither of the above paragraphs applies but the dwelling is occupied by a person who is a protected occupier under the Rent (Agriculture) Act 1976)

.

23

In section 74(1) after "they shall" insert " (subject to subsection (2A) below) " and after section 74(2) insert—

(2A) Where, apart from this subsection, a local authority would be required to impose the conditions specified in subsection (2) above with respect to a dwelling in respect of which a certificate of owner-occupation has been given but it appears to the local authority that in the special circumstances of the case it would be reasonable to dispense with the conditions they shall not be required to impose the conditions.

.

24

• (1) In section 74(3), after paragraph (c) insert

or (d) which is occupied by a person who is a protected occupier or statutory tenant under the Rent (Agriculture) Act 1976.

• (2) In section 74, after subsection (3), insert—

(3A) There shall be disregarded for the purposes of subsection (3)(b) above any letting to the applicant for the grant or a member of his family, or a grandparent or grandchild of the applicant or his spouse.

Payment of grant by instalments

25

In section 82, for subsection (4) substitute—

(4) Where grant is paid in instalments, the aggregate of the instalments paid before the completion of the works shall not at any time exceed— (a) in the case of intermediate grant, the appropriate percentage of the total cost of the works so far executed; (b) in the case of improvement grant, special grant or repairs grant, an amount bearing to that total cost the same proportion as the fixed amount of the grant bears to the eligible expense.

Repair and special grants (consequential)

26

• (1) In section 57(3) for " section 83 " substitute " sections 69A, 71A and 83 ".

• (2) At the beginning of section 57(5) insert " Except under section 69A or 71A ".

Parliamentary control

27

In section 128(4) after "46" insert " 58 " and after "64" insert " 68, 70A, 72 ".

Tenants' grants (consequential)

28

In section 57(3), after " below" insert " and section 106 of the Housing Act 1980 ".

29

In section 60 insert after subsection (1)—

(1A) This section does not apply to an application made under section 106 of the Housing Act 1980

.

30

• (1) At the end of section 73(3) insert—

and where an application for a grant is accompanied by a certificate under section 106(2) of the Housing Act 1980 this subsection shall apply with the substitution for references to the applicant of references to the person who gave the certificate. (2) In section 73(4) after " certificate of availability for letting " insert " or a certificate under the said section 106(2)

.

31

In section 74(1), after "subsection (3) below" insert " and section 106(4) of the Housing Act 1980. "

32

In section 81(2), after "section 57(3) above" insert " or section 106(1) of the Housing Act 1980 ".

SCHEDULES 23—24

General improvement areas

1

• (1) In Part II of the 1969 Act section 28 (for which subsection (1) of section 50 of the 1974 Act substituted the two sections set out in Part I of Schedule 5 to that Act) is restored as originally enacted, but with the substitution in subsection (1) of the words " can most appropriately be improved " for the original "ought to be improved".

• (2) Sub-paragraph (1) above does not affect the operation of the sections so substituted in any case where a preliminary resolution under the first of those sections was passed before the commencement of this Schedule.

2

Subsections (2) to (4) of subsection 50 of the 1974 Act (termination by Secretary of State of status of general improvement area) shall cease to have effect.

3

In relation to any resolution passed by a local authority after the commencement or this Schedule section 30 of the 1969 Act (changes with respect to general improvement areas) shall have effect with the omission of the words " but such a resolution shall be of no effect unless approved by the Minister ".

4

In section 35 of the 1969 Act (disposal and appropriation of land)—

• (a) subsections (1), (3), (5) and (7) are hereby repealed ;

• (b) in subsection (2) for the words from the beginning to " without his consent" there are substituted the words " Where any land is vested in a local authority for the purposes of this Part of this Act they shall not, without the consent of the Secretary of State ";

• (c) in subsection (4) the words "the consent of the Minister under subsection (2) of this section " are hereby repealed; and

• (d) in subsection (6) the words from "with the approval" to " particular case " are hereby repealed.

5

For section 37 of the 1969 Act (contributions to local authority expenditure incurred under Part II) there is substituted the following section:—

(37) (1) The Secretary of State may pay contributions to a local authority towards such expenditure incurred by them under this Part of this Act as he may determine. (2) A contribution under this section shall be a sum payable annually for a period of 20 years beginning with the financial year in which the expenditure towards which the contribution is made is incurred and that sum shall be equal to one-half of the annual loan charges referable to that expenditure. (3) The aggregate of the expenditure towards which contributions may be made under this section with respect to any general improvement area shall not exceed the sum arrived at by multiplying £400 by the number of dwellings stated by the local authority under the preceding provisions of this Part of this Act to be in the area; but two adjoining general improvement areas may for the purposes of this subsection be treated as one. (4) The Secretary of State may, with the consent of the Treasury, by order substitute, in subsection (2) above, another fraction for one-half and, in subsection (3) above, another amount for £400; and he may, with the consent of the Treasury, direct that, in the case of a general improvement area specified in the direction or of a general improvement area of a description so specified, subsections (2) and (3) above shall have effect as if a higher fraction or a greater amount were substituted for the fraction or amount for the time being specified therein. (5) An order under subsection (4) above shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.

6

In section 38 of the 1969 Act after the word " Where " there are inserted the words " any contribution has been paid under section 37 of this Act towards " and the words from "has been approved " to " this Act" are omitted.

Housing action areas

7

In relation to any resolution passed by a local authority after the commencement of this Schedule, section 38(2)(a) of the 1974 Act (incorporation of general improvement area or part thereof into housing action area) shall have effect with the omission of the words " and approved by the Secretary of State ".

8

Section 42 of the 1974 Act (duty to inform Secretary of State of action taken) shall cease to have effect.

9

• (1) Section 45 of the 1974 Act is amended as follows.

• (2) For subsection (1) there is substituted the following subsection:—

(1) For the purpose of improving the amenities in a housing action area, the local authority may— (a) carry out on any land belonging to them works other than works to the interior of housing accommodation ; and (b) give assistance in accordance with this section towards the carrying out of such works by others ; and works which may be carried out or towards the carrying out of which assistance may be given under this section are in this section referred to as " environmental works ".

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

(3) No assistance may be given under subsection (1) above towards works in respect of which an application for a grant under Part VII of this Act has been approved.

10

• (1) For section 46 of the 1974 Act there is substituted the following section: —

(46) (1) The Secretary of State may pay contributions to local authorities in respect of such expenditure incurred by them under section 45(1) above as he may determine. (2) A contribution under this section shall be a sum payable annually for a period of 20 years beginning with the financial year in which the expenditure towards which the contribution is made is incurred and that sum shall be equal to one-half of the annual loan charges referable to that expenditure. (3) For the purposes of subsection (2) above, the annual loan charges referable to any expenditure are the annual sum that, in the opinion of the Secretary of State, would fall to be paid by the local authority for the repayment of principal and payment of interest on a loan repayable over 20 years of an amount equal to the expenditure. (4) The aggregate of the expenditure towards which contributions may be made under this section with respect to any housing action area shall not exceed the sum arrived at by multiplying £400 by the aggregate of the number of dwellings, houses in multiple occupation and hostels stated by the local authority, in accordance with section 36(4)(c) above, to be in the area ; but two adjoining housing action areas may for the purposes of this subsection be treated as one. (5) The Secretary of State may, with the consent of the Treasury, by order substitute, in subsection (2) above, another fraction for one-half and, in subsection (4) above, another amount for £400 ; and he may, with the consent of the Treasury, direct that, in the case of a housing action area specified in the direction or of a housing action area of a description so specified, subsections (2) and (4) above shall have effect as if a higher fraction or a greater amount were substituted for the fraction or amount for the time being specified therein. (6) An order under subsection (5) above shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons. (7) Where a contribution has been paid under this section towards any expenditure, neither the expenditure nor the contribution shall be carried to the authority's Housing Revenue Account except with the consent of the Secretary of State."

SCHEDULE 14

1

In section 24 of the 1967 Act, after subsection (2) insert—

(2A) Prescribed conditions governing entitlement to subsidy may be imposed by reference to— (a) a borrower's personal circumstances; (b) the amount of the loan and the terms of repayment; (c) the use and occupation foreseen for the property on which the loan is secured ; and (d) the existence and terms of any loans taken by a borrower or his spouse before the option notice ; and such other conditions may be prescribed as the Secretary of State thinks necessary to ensure that loans are subsidised only in proper cases, that subsidy is withdrawn when the conditions cease to be fulfilled, and that the borrower repays to the Secretary of State any sums paid by him under subsection (2)(a)(ii).

.

2

In section 24(3)(c) of the Act, for the words from "a declartion " to " section 24B of this Act is fulfilled " substitute—

the prescribed declaration with respect to his personal circumstances and the fulfilment of the subsidy conditions

;

and in that subsection omit paragraph (d) and all after it.

3

In that section, omit subsections (4), (5) and (5A).

4

For sections 24A and 24B substitute—

(24A) (1) An option notice shall have effect for the period beginning with the date on which it is signed and ending with whichever of the following events first occurs, namely— (a) the satisfaction of the borrower's debt to the lender; (b) the realisation of the security on the interest in land in question, whether or not the borrower's debt is fully satisfied thereby ; (c) that interest's ceasing to be security for the loan; (d) the vesting of the rights and obligations under the repayment contract of the borrower (or, in the case of joint borrowers, of both or all of them) in some other person who has become beneficially entitled to the interest; (e) subject to subsection (2) below, the vesting of the lender's rights under the repayment contract in some other person ; (f) if the number of the periodical payments referred to in section 24(1)(c) is not fixed by or ascertainable under the repayment contract, the expiration of 30 years from the beginning of the period for which the option notice has effect; (g) the taking effect of a direction under section 24(3A) with respect to the loan ; (h) any event which by regulations under section 24(2A) is made to terminate subsidy entitlement, in consequence of the subsidy conditions having ceased to be fulfilled or otherwise. (2) If at the expiration of the period of 3 months beginning with the date of the vesting referred to in subsection (1)(e) above the other person there referred to is a qualifying lender, the option notice shall not cease to have effect by virtue of that paragraph; and the notice and the provisions of this Part of this Act shall be treated as having continued to have effect during that period as if the other person were a qualifying lender, notwithstanding that at any time during that period he was not so.

5

• (1) In section 26(1), for " subsections (2) to (6) of the said section 24 " substitute " sections 24(2) to (6) and 24A above. "

• (2) In section 26(2) for " subsections (2) to (6) of that section " substitute " sections 24(2) to (6) and 24A above " and for " the said subsections (2) to (6)" substitute " sections 24(2) to (6) and 24A above ".

6

• (1) In section 27(1)(c) after sub-paragraph (iii) insert—

and (iv) other bodies whose activities and objects appear to him to qualify them for inclusion in this subsection

.

• (2) At the end of section 27(1) insert—

(g) trustee savings banks; (h) the Scottish Special Housing Association ; (j) the Development Board for Rural Wales.

.

• (3) In section 32(1) at the end insert—

• " subsidy conditions" means conditions prescribed under section 24(2A) of this Act

.

SCHEDULE 15

1

Part II of the 1972 Act is amended as follows.

2

For section 18 there is substituted the following section—

(18) (1) It shall be the duty of every authority to maintain a scheme for granting, to persons who occupy as their homes dwellings let to them by the authority, rebates from rent calculated in accordance with the provisions of the scheme by reference to their needs and resources. (2) A scheme under this section is referred to in this Part of this Act as a ' rebate scheme'. (3) No rebate from the rent for any dwelling shall be granted by virtue of this section to any person— (a) if he occupies the dwelling under a licence which was granted as a temporary expedient to a person who entered it, or any other land, as a trespasser (whether or not before the grant another licence of that or any other dwelling has been granted to him); or (b) if he occupies the dwelling in pursuance of a contract of service with the authority the terms of which require that he shall be provided with a dwelling at a rent specified in the contract; or (c) if Part II of the Landlord and Tenant Act 1954 (security of business tenants) applies to his tenancy. (4) Where a person who is not the tenant of a dwelling has a licence to occupy the dwelling, granted for a consideration, this Part of this Act, so far as it relates to rebate schemes, applies to the licence as it applies to a tenancy and, as so applied, has effect as if expressions appropriate to a licence were substituted for those appropriate to a tenancy.

.

3

For section 19 there is substituted the following section—

(19) (1) It shall be the duty of every local authority to maintain a scheme for granting to private tenants who occupy as their homes dwellings in the authority's area allowances, calculated in accordance with the provisions of the scheme by reference to their needs and resources, towards the rent payable under their tenancies. (2) A scheme under this section is referred to in this Part of this Act as an ' allowance scheme'. (3) No allowance towards the rent of a dwelling shall be granted by virtue of this section to any person who occupies a dwelling in pursuance of a contract of service the terms of which require that he shall be provided with a dwelling at a rent specified in the contract. (4) In this Part of this Act ' private tenant' means a person who is a private tenant by virtue of any of the following provisions of this section. (5) A person is a private tenant if— (a) he is a protected or statutory tenant for the purposes of the Rent Act 1977 ; (b) he occupies a dwelling under a contract which is a restricted contract for the purposes of that Act; (c) he occupies a dwelling under a contract which would be a restricted contract but for section 19(5)(c) of the Act of 1977 ; (d) he occupies a dwelling let to him under an assured tenancy within the meaning of section 56 of the Housing Act 1980; (e) he occupies a dwelling let to him by— (i) a county council; (ii) the Housing Corporation ; (iii) a housing association; (iv) a housing trust within the meaning of section 15 of the Act of 1977 ; and his tenancy would be a protected tenancy for the purposes of that Act but for section 14 or 15 of the Act of 1977 ; (f) he occupies a dwelling let to him by a housing co-operative, as defined in paragraph 1 of Schedule 20 to the Housing Act 1980, and his tenancy would be a protected tenancy but for section 16 of the Act of 1977 or, where the housing co-operative is a housing association, but for sections 15 and 16 of the Act of 1977; (g) he is a statutory tenant of premises under the Rent (Agriculture) Act 1976 and the rent payable under his tenancy is not less than two-thirds of the rateable value which is or was the rateable value of his dwelling on the appropriate day for the purposes of the Act of 1977; or (h) he occupies hostel accommodation or shared accommodation. (6) In subsection (5)(h) above— - ' hostel accommodation ' means accommodation in a building in which there is provided, for persons generally or for a class or classes of person, residential accommodation otherwise than in separate and self-contained sets of premises ; and - ' shared accommodation ' means accommodation which a person occupies together with one or more other persons and of which he would be a private tenant by virtue of any of paragraphs (a) to (g) of subsection (5) above if he had the right to exclusive occupation of the accommodation. (7) A person is not a private tenant if he occupies a dwelling let to him by a housing association and he (or his personal representative) 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. (8) Where a person occupies hostel accommodation under a licence, granted for a consideration, this Part of this Act, so far as it relates to allowance schemes, applies to the licence as it applies to a tenancy and, as so applied, has effect as if expressions appropriate to a licence were substituted for those appropriate to a tenancy. (9) In this section ' local authority' does not include the Greater London Council.

.

4

In section 19A(1) for " (4) " there is substituted " (3) ".

5

• (1) In section 20(5)—

• (a) for paragraph (a) there is substituted the following paragraph—

(a) that the general level of the rents charged by an authority is exceptionally high by comparison with the general level of the rents charged by other authorities.

;

• (b) for paragraph (c) there is substituted the following paragraph—

(c) that the general level of the rents charged by an authority for a class of dwelling, or of the rents paid by private tenants for a class of dwelling in the area of an authority, is exceptionally high by comparison with the general level of the rents charged by other authorities or, as the case may be, with the general level of the rents paid by private tenants elsewhere

; and

• (c) paragraph (d) is hereby repealed.

• (2) In section 20(7) the words from " section 19(8) " to " Schedule 3 to this Act" are hereby repealed.

6

• (1) In section 24(5) the words " or their allowance scheme, as may be appropriate " and the words from " of Housing Revenue " to " housing account dwellings " are hereby repealed.

• (2) For subsection (6) of section 24 there is substituted the following subsection—

(6) An authority shall also furnish the statutory particulars of their rebate scheme to any person who becomes their tenant, on or before the date on which his tenancy commences.

.

• (3) In section 24(9), for the words " tenant of a dwelling " there are substituted the words " private tenant ".

7

• (1) In section 25(2), after paragraph (c) there are inserted the following words—

, and (d) exclusive of any part of the rent or residue which is fairly attributable to the provision of board

.

• (2) In section 25(5). after the word " services" there are inserted the words " or board ".

8

• (1) In section 26(1), the following are hereby repealed—

• (a) in the definition of " allowance " the words from " but also " to the end;

• (b) in the definition of " allowance scheme" the words from " and includes " to the end ; and

• (c) the definition of " housing account dwelling ".

• (2) In section 26(1) for the definition of " dwelling " there are substituted the following definitions—

• ' dwelling ' means— in relation to a rebate scheme, any residential accommodation provided by an authority, whether or not comprising separate and self-contained premises; and in relation to an allowance scheme, any premises of which a person is a private tenant for the purposes of this Part of this Act;
• ' housing association ' has the meaning assigned to it for the purposes of the Housing Act 1957 by section 189(1) of that Act.

.

• (3) In section 26(1), for the definition of "tenant" there is substituted the following definition—

• ' tenant ' means— in relation to a rebate scheme, a person who occupies a dwelling as mentioned in section 18 of this Act, including a successor in title of the person to whom the dwelling was originally let, and in relation to an allowance scheme, a private tenant.

.

9

In Schedule 4, in paragraph 1(3)(a) the words from " Housing " to " account" are hereby repealed.

SCHEDULE 16

PART I — Accounting Requirements for Charitable

1

• (1) The charity shall in respect of its housing activities—

• (a) cause to be kept proper books of account showing its transactions and its assets and liabilities; and

• (b) establish and maintain a satisfactory system of control of its books of account, its cash holdings and all its receipts and remittances.

• (2) The books of account must be such as to enable a true and fair view to be given of the state of affairs of the society in respect of its housing activities, and to explain its transactions in the course of those activities.

2

• (1) The charity shall for each period of account prepare—

• (a) a revenue account giving a true and fair view of the charity's income and expenditure in the period, so far as arising in connection with its housing activities,

• (b) a balance sheet giving a true and fair view (as at the end of the period) of the state of the charity's affairs.

• (2) The revenue account and balance sheet must be signed by at least two trustees of the charity.

3

• (1) The charity shall in each period of account appoint a qualified auditor to audit the accounts prepared to comply with paragraph 2.

• (2) A person is qualified for the purposes of this paragraph if he is either a member of one of the following bodies—

• (a) the Institute of Chartered Accountants in England and Wales;

• (b) the Institute of Chartered Accountants of Scotland ;

• (c) the Association of Certified Accountants;

• (d) the Institute of Chartered Accountants in Ireland ;

• (e) any other body of accountants established in the United Kingdom and recognised by the Secretary of State for the purposes of section 161(1)(a) of the Companies Act 1948,

or a person who is for the time being authorised by the Secretary of State under section 161(1)(b) of that Act as being a person with similar qualifications obtained outside the United Kingdom.

• (3) But none of the following shall be appointed—

• (a) any trustee, officer or servant of the charity or of an associated body;

• (b) any person who is a partner of or in the employment of, or who employs, a trustee, officer or servant of the charity or of an associated body ; or

• (c) a body corporate;

and any body of persons is " associated " for this purpose (whether a corporate or unincorporated body, and whether or not itself a charity) if it is essentially under the same management or control as the charity.

• (4) A Scottish firm is qualified for appointment as auditor, notwithstanding sub-paragraph (3)(c) above, if each of the partners in it is qualified for appointment.

4

• (1) The charity's auditor appointed under this Schedule shall make a report to the charity on the accounts examined by him.

• (2) The report shall state whether, in the auditor's opinion—

• (a) the revenue account gives a true and fair view of the income and expenditure of the charity in respect of its housing activities and of any other matters to which it relates ; and

• (b) the balance sheet gives a true and fair view of the state of affairs of the charity as at the end of the period of account

5

• (1) It shall be the duty of the charity's auditor so appointed, in preparing his report, to carry out such investigations as will enable him to form an opinion as to the following matters—

• (a) whether the charity has kept, in respect of its housing activities, proper books of account in accordance with the requirements of this Schedule;

• (b) whether the charity has maintained a satisfactory system of control over its transactions in accordance with all those requirements; and

• (c) whether the accounts are in agreement with the charity's books.

• (2) If the auditor is of opinion that the charity has failed in any respect to comply with this Schedule, or if the accounts are not in agreement with the books, the auditor shall state that fact in his report.

• (3) The auditor—

• (a) shall have a right of access at all times to the books, deeds and accounts of the charity, so far as relating to its housing activities, and to all other documents relating to those activities; and

• (b) shall be entitled to require from the trustees or officers of the charity such information and explanations as he thinks necessary for the performance of his duties.

• (4) If the auditor fails to obtain all the information and explanations which, to the best of his knowledge and belief, are necessary for the purposes of his audit, he shall state that fact in his report.

6

A period of account for the purposes of this Schedule is 12 months or such other period not less than 6 months and not more than 18 months as the charity may with the consent of the Housing Corporation determine.

PART II — Payments to Certain Committee Members and Others

Provisions substituted for subsections (3) to (6) of section 26 of the 1974 Act

Provision substituted for section 27 of the 1974 Act

SCHEDULE 17

Appointment of persons to conduct inquiries

1

In section 19, in subsection (1), the words " (who may or may not be a member of the Corporation's staff)" are hereby repealed; and after subsection (1) there is inserted the following subsection—

(1A) No person who is, or at any time has been, a member of the Corporation's staff shall be appointed to conduct an inquiry under subsection (1) above.

.

Duty of agents to give information

2

In subsection (2) of section 19 after " officer " there is inserted " agent " and at the end of the section there is added the following: —

(8) In subsection (2) above " agent" includes banker, solicitor and auditor; but nothing in this section requires the disclosure— (a) by a solicitor, of any privileged communication made to him in his capacity of a solicitor ; or (b) by a housing association's bankers, of any information as to the affairs of any of their other customers.

Suspension of committee members and others

3

In section 20—

• (a) after subsection (1)(a) there is inserted—

(aa) by order suspend such a person for up to 6 months, pending determination whether he should be removed;

;

• (b) after subsection (1) there is inserted—

(1A) Where a person is suspended, the Corporation may give directions with respect to the performance of his functions and otherwise as to matters arising from the suspension.

;

• (c) in subsection (5) after " subsection (2) above" there is inserted " or suspended under subsection (1)(aa) above ".

Extension to registered charities which are not exempt charities

4

The powers exercisable by the Housing Corporation under sections 19 and 20 may be exercised in relation to any registered housing association—

• (a) which is a registered charity and not an exempt charity; and

• (b) with respect to which, at the time the powers are exercised (in this Schedule referred to as the relevant time), the condition stated in paragraph 5 below is satisfied ;

but subject to the following provisions of this Schedule.

5

The condition mentioned in paragraph 4 above is that the housing association has at any time received a grant or loan under section 119(3) of the 1957 Act, section 9, 29, 31, 32 or 33 of the 1974 Act or under any enactment mentioned in paragraph 2 or 3 of Schedule 2 to that Act.

6

Sections 19 and 20 shall have effect in their application by virtue of paragraph 4 above as if—

• (a) the references in either section to a registered 1965 Act association included such an association as is mentioned in that paragraph;

• (b) the references in either section to an officer, agent or member or to a member of the committee included a trustee;

• (c) the references in section 19 to the association's business did not include any activities other than the association's housing activities;

• (d) the references in section 19 to the association's accounts did not include revenue accounts not relating to the association's housing activities, except in so far as such accounts are necessary for the auditing of revenue accounts which do so relate or of the association's balance sheet; and

• (e) the auditor referred to in section 19(4) were an auditor qualified for the purposes of paragraph 3 of Schedule 16 to this Act.

7

The power under section 19(1), section 20(1)(a), section 20(1) (aa) or section 20(3) shall not be exercised by virtue of paragraph 4 above except after consultation with the Charity Commissioners; and nothing in this Schedule shall be taken to enable the Housing Corporation to appoint a trustee in excess of the maximum number permissible under the constitution of the housing association with respect to which the power under section 20(3) is exercisable.

8

A person appointed under section 20(3) as a member of the committee or a trustee of a housing association shall be entitled—

• (a) to attend, speak and vote at any general meeting of the association and to receive all notices of and other communications relating to any general meeting which a member of the association is entitled to receive ; and

• (b) to require a general meeting of the association to be convened within 21 days of a request to that effect made in writing to the committee or the trustees of the association.

Proceedings for an offence

9

In section 20(7), after " the consent of " there is inserted " the Director of Public Prosecutions or ".

SCHEDULE 18

Shared ownership schemes

1

• (1) In section 29 of the 1974 Act (housing association grant) after subsection (2) there is inserted the following subsection: —

(2A) For the purposes of this section, " letting " includes the grant of a lease or licence to occupy— (a) on payment of a premium calculated by reference to a percentage of the value of the dwelling or of the cost of providing it; or (b) under which 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 dwelling.

• (2) This paragraph shall be deemed always to have had effect.

Cost of housing projects

2

In section 29, after subsection (6) there is inserted the following subsection—

(6A) In determining the net cost of a housing project under subsection (6) above the Secretary of State may adopt the assessment of the body forwarding the application under subsection (3) above.

Approved development programmes

3

After section 29 there is inserted the following section—

(29A) (1) In this section " approved development programme " means any programme for the development of housing by registered housing associations prepared by the Housing Corporation or— (a) in England and Wales, by a council which has power under section 119 of the Housing Act 1957 to make loans to registered housing associations ; or (b) in Scotland, by a local authority ; and approved for the time being by the Secretary of State for the purposes of this section. (2) Where a registered housing association undertake a housing project which falls within an approved development programme, housing association grant may be paid under section 29 in respect of that project, notwithstanding that it has not been approved by the Secretary of State under section 29(1).

.

Payment of housing association grant

4

In subsection (1) of section 30—

• (a) after the words " the project is completed " where they occur in paragraphs (a) and (b) there are inserted the words " or its completion has become impossible "; and

• (b) for the words " before the project is completed " there are substituted the words " at an earlier time ".

5

After subsection (2) of section 30 there is inserted the following subsection—

(2A) In any case where, by virtue of section 29A above, a housing project has not required the approval of the Secretary of State under section 29(1), the Secretary of State may impose such conditions as are mentioned in subsection (2) above before first making payment of housing association grant in respect of that project.

.

6

For subsection (3) of section 30 there are substituted the following subsections—

(3) If, after the making of a housing association grant to a registered housing association— (a) any land to which the grant relates has been disposed of by the association in any manner ; (b) any condition imposed under subsection (2) above has not been complied with ; or (c) the Secretary of State is satisfied that any land to which the grant relates has ceased to be used, or to be available for use, for the purpose for which, at the time the project concerned was approved, it was intended that it should be used ; the Secretary of State may reduce the amount of, or of any payment in respect of, the grant or suspend or discontinue any instalment of it or, where any payment has been made to the association in respect of the grant, direct the association to pay to him an amount equal to the whole, or such proportion as he may determine, of the amount so paid to the association. (3A) Any amount which a registered housing association is directed to repay to the Secretary of State under subsection (3) above shall be recoverable as a simple contract debt, or in Scotland as a debt due under a contract, in any court of competent jurisdiction.

.

7

Subsection (5) of section 30 is hereby repealed.

Management grant

8

No grant shall be made under section 31 (management grants) except in pursuance of an application made before the passing of this Act; and accordingly that section shall cease to have effect except in relation to giants payable in pursuance of such applications.

Revenue deficit grant

9

In section 32 (deficit grants)—

• (a) in subsection (1), the word " annual" is omitted and for the words " an accounting year of the association " there are substituted the words " any period ";

• (b) in subsection (2)—

• (i) in the words preceding the paragraphs for the words from "in respect of" to "association" there are substituted the words " to a registered housing association in respect of any period ";

• (ii) in paragraph (a) for the words from "in respect of that year" to "end of that year" there are substituted the words " in respect of that period is made by the association to the Secretary of State not later than 15 months after the end of that period "; and

• (iii) in paragraph (c) for the words " accounting year " there is substituted the word " period ";

• (c) for subsection (3) there is substituted the following subsection : —

(3) For the purposes of this section, a registered housing association shall be treated as incurring a deficit on its revenue account for any period, if— (a) its expenditure for that period which, in the opinion of the Secretary of State, is attributable to its housing activities and is reasonable and appropriate, having regard to all the circumstances; exceeds (b) the income which, in the opinion of the Secretary of State, it might reasonably be expected to receive for that period in respect of its housing activities, including sums by way of grant or subsidy under any enactment other than this section; and for this purpose— (i) an association's housing activities are any of its activities not relating to hostels or, if the association is a registered charity and not an exempt charity, those of its activities not relating to hostels which fall within section 133(2) of the Housing Act 1980 ; and (ii) an association's expenditure and income shall be calculated in such manner as the Secretary of State may, with the consent of the Treasury, from time to time determine.

;

• (d) subsection (4) shall cease to have effect except in relation to grants made in pursuance of applications made before the passing of this Act;

• (e) in subsection (5) for the words "accounting year" there is substituted the word " period " and for the words "that year" the words " that period " ;

• (f) in subsection (6) for the words "accounting year", in both places, there is substituted the word " period "; and

• (g) subsection (8) is hereby repealed.

Hostel deficit grant

10

In section 33—

• (a) in subsection (1) for the words " an accounting year of the association " there are substituted the words " any period ";

• (b) in subsection (2) for the words from "any accounting year" to "end of that year" there are substituted the words " any period unless an application in respect of that period is made by the association to the Secretary of State not later than 15 months after the end of that period ";

• (c) in subsection (3)—

• (i) in the words preceding the paragraphs, for the words "an accounting year of the association" there are substituted the words " any period "; and

• (ii) in paragraphs (a) and (b) for the word "year", wherever it occurs, there is substituted the word " period ";

• (d) in subsection (4) for the words "accounting year of the association" there is substituted the word " period " and for the words "that year" the words "that period";

• (e) in subsection (5) for the words "accounting year" there is substituted the word " period " and for the words "that year" the words "that period"; and

• (f) in subsection (6) for the words "accounting year", in both places, there is substituted the word " period " and the words " before the expiry of that year " are omitted.

SCHEDULE 19

Service charge and relevant costs

1

• (1) For the purposes of this Schedule, a service charge is an amount payable by the tenant of a flat as part of or in addition to the rent—

• (a) which is payable, directly or indirectly, for services, repairs, maintenance or insurance or the landlord's costs of management; and

• (b) the whole or part of which varies or may vary according to the relevant costs ;

and the relevant costs are the costs or estimated costs (including overheads) incurred or to be incurred in any period (whether the period for which the service charge is payable or an earlier or later period) by or on behalf of the landlord or a superior landlord in connection with the matters for which the service charge is payable.

• (2) Other expressions used in this Schedule are to be construed in accordance with paragraphs 16 to 20 below.

Limitation of service charge

2

The extent to which relevant costs are taken into account in determining the amount of a service charge payable for any period shall be limited in accordance with the following paragraphs, and the amount payable shall be limited accordingly ; and where the service charge is payable before the relevant costs are incurred—

• (a) no greater amount shall be so payable than is reasonable ; and

• (b) after the relevant costs have been incurred any necessary adjustments shall be made by repayment, reduction of subsequent charges or otherwise.

3

Costs are to be taken into account only to the extent that they are reasonably incurred, and costs incurred on the provision of services or the carrying out of works only if the services or works are of a reasonable standard.

4

• (1) Where costs incurred on the carrying out of works on a building exceed the amount prescribed by or under this paragraph the excess is not to be taken into account unless the requirements of paragraph 5 below have been complied with or are dispensed with under paragraph 6 below.

• (2) The prescribed amount is £25 multiplied by the number of flats in the building or £500, whichever is the greater, but the Secretary of State may by order substitute a different amount for £25 or £500 or both.

5

• (1) The requirements are as follows.

• (2) At least two estimates for the works shall be obtained, one of them from a person wholly unconnected with the landlord.

• (3) A notice accompanied by a copy of the estimates shall be given to each of the tenants concerned or shall be displayed in the building so as to be likely to come to the notice of all those tenants and, if there is a recognised tenants' association for the building, the notice and copy of the estimates shall also be given to the secretary of the association.

• (4) The notice shall describe the works to be carried out and invite observations on them and on the estimates and shall state the name and the address in the United Kingdom of the person to whom the observations may be sent and the date by which they are to be received.

• (5) The date stated in the notice shall not be earlier than one month after the date on which it is given or displayed as required by subparagraph (3) above.

• (6) The landlord shall have regard to any observations received in pursuance of the notice and, unless the works are urgently required, they shall not be begun earlier than the date specified in the notice.

• (7) For the purposes of this paragraph the tenants concerned are all the landlord's tenants of flats in the building by whom a service charge is payable to which the costs of the proposed works are relevant.

6

In any proceedings relating to a service charge the court, if satisfied that the landlord acted reasonably, may dispense with all or any of the requirements.

Information as to relevant costs

7

• (1) Ii a tenant requests the landlord in writing to supply him with a written summary of the costs incurred in the relevant period defined in sub-paragraph (5) below which are relevant to the service charges payable or demanded as payable by the tenant in that or any other period, the landlord shall do so within six months of the end of the period or within one month of the request, whichever is the later.

• (2) If there is a recognised tenants' association for the building and the tenant consents, a request under sub-paragraph (1) above may be made by the secretary of the association instead of by the tenant and may then be for the supply of the summary to the secretary.

• (3) The summary shall set out those costs in a way showing how they are or will be reflected in demands for service charges and, if there are more than four flats in the building or the relevant costs relate also to another building, it must be certified by a qualified accountant as in his opinion a fair summary complying with this requirement and as being sufficiently supported by accounts, receipts and other documents which have been produced to him.

• (4) Where a tenant or the secretary has obtained such a summary as is referred to in sub-paragraph (1) above (whether in pursuance of this paragraph or otherwise) the tenant, or the secretary with the consent of the tenant may, within six months of obtaining it, require the landlord in writing to afford him reasonable facilities for inspecting the accounts, receipts and other documents supporting the summary and for taking copies or extracts from them, and the landlord shall then make such facilities available to the tenant or secretary for a period of two months beginning not later than one month after the request is made.

• (5) The relevant period mentioned in sub-paragraph (1) above is—

• (a) if the relevant accounts are made up for periods of 12 months, the last such period ending not later than the date of the request; and

• (b) if none are made up for such a period, the period of 12 months ending with the request.

Information held by superior landlord

8

• (1) If a request under paragraph 7(1) above relates in whole or in part to relevant costs incurred by or on behalf of a superior landlord, and the landlord to whom the request is made is not in possession of the relevant information—

• (a) he shall in turn make a written request for the relevant information to the person who is his landlord (and so on if that person is not himself the superior landlord) and the superior landlord shall then comply with the request within a reasonable time ; and

• (b) it shall be the duty of the immediate landlord to comply with the tenant's or secretary's request, or that part of it which relates to the relevant costs incurred by or on behalf of the superior landlord, within the time allowed by paragraph 7 or within such further time, if any, as is reasonable in the circumstances.

• (2) If a request made under paragraph 7(4) above relates to a summary of costs incurred by or on behalf of a superior landlord, the landlord to whom the request is made shall forthwith inform the tenant or secretary of that fact and of the name and address of the superior landlord, and sub-paragraph (4) shall then apply as if the superior landlord were the immediate landlord.

Service of requests under paragraph 7

9

A request under paragraph 7 above shall be deemed to be duly served on a landlord if it is served on any agent of the landlord named as such in the rent book or similar document, or on the person who receives the rent on behalf of the landlord; and a person on whom a request is so served shall forward it as soon as may be to the landlord.

Effect of assignment

10

The assignment of a tenancy shall not affect the validity of a request made under paragraph 7 or 8 above before the assignment, but a person shall not be obliged to provide a summary or make facilities available more than once for the same flat and for the same period.

Determination of reasonableness

11

Any agreement made by a tenant of a flat, other than an arbitration agreement within the meaning of section 32 of the Arbitration Act 1950, shall be void in so far as it purports to provide for a determination in a particular manner or on particular evidence of any question whether any amount payable before costs for services, repair, maintenance, insurance or management are incurred is reasonable, whether such costs were reasonably incurred or whether services or works for which costs were incurred are of a reasonable standard.

12

A county court may make a declaration that any such amount is or is not reasonable, that any such costs were or were not reasonably incurred or that any services or works are or are not of a reasonable standard, notwithstanding that no other relief is sought m the proceedings.

Offences

13

• (1) If any person without reasonable excuse fails to perform any duty imposed on him by this Schedule he shall be guilty of an offence and liable on summary conviction to a fine not exceeding £500

• (2) Where an offence under this Schedule which has been committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, a director, manager, secretary or other similar officer of the body corporate, or any person who was purporting to act in any such capacity, he, as well as the body corporate, shall be guilty of an offence and be liable to be proceeded against and punished accordingly.

• (3) Where the affairs of a body corporate are managed by its members, sub-paragraph (2) above shall apply in relation to the acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.

Exceptions

14

• (1) This Schedule does not apply to service charges payable by a tenant of any of the following bodies, that is to say—

• (a) a local authority or development corporation (as defined in section 50(1) of this Act),

• (b) the council of a county,

• (c) the Commission for the New Towns,

• (d) the Development Board for Rural Wales,

unless the tenancy is a long tenancy for the purposes of paragraph 1 of Schedule 3 to this Act.

• (2) Where this Schedule applies to a service charge payable by the tenant of a body mentioned in sub-paragraph (1) above—

• (a) paragraph 13 does not apply, and

• (b) the persons who are qualified accountants include a member of the Chartered Institute of Public Finance and Accountancy and paragraph 17(2)(b) below does not apply.

15

This Schedule does not apply to service charges payable by the tenant of a flat the rent of which is registered under Part IV of the 1977 Act, unless the amount registered is, in pursuance of section 71(4) of that Act, entered as a variable amount.

Definition of " fiat", " qualified accountant", " landlord ", " tenant" and " recognised tenants' association "

16

A flat is a separate set of premises, whether or not on the same floor, which—

• (a) forms part of a building; and

• (b) is divided horizontally from some other part of that building; and

• (c) is constructed or adapted for use for the purposes of a dwelling and is occupied wholly or mainly as a private dwelling.

17

• (1) A qualified accountant is a person qualified for the purposes of paragraph 3 of Schedule 16, but subject to sub-paragraph (2) below.

• (2) None of the following is a qualified accountant—

• (a) a body corporate, except a Scottish firm ;

• (b) an officer or employee of the landlord or, where the landlord is a company, of a company which is the landlord's holding company or subsidiary (within the meaning of section 154 of the Companies Act 1948) or a subsidiary of the landlord's holding company; and

• (c) a person who is a partner or employee of any such officer or employee.

18

" Landlord " includes any person who has a right to enforce payment of a service charge and, in relation to a flat occupied by a tenant under a right conferred by an enactment, also includes the person who, apart from that right, would be entitled to possession of the flat.

19

"Tenant" includes a person occupying a flat under a right conferred by an enactment, and, where the whole or any part of the flat is sublet, includes also the sub-tenant.

20

A recognised tenants' association is an association of tenants of flats in a building which is recognised for the purposes of this Schedule either;—

• (a) by a notice in writing given by the landlord to the secretary of the association ; or

• (b) by a certificate of one of the persons appointed by the Lord Chancellor under the 1977 Act to the panel of persons to act as members of a rent assessment committee for the registration area in which the building is situated.

21

• (1) A notice given under paragraph 20(a) above may be withdrawn by the landlord by notice in writing given to the secretary of the association not less than six months before the date on which it is to be drawn ; and a certificate given under paragraph 20(b) above may be cancelled by one of the persons there mentioned.

• (2) The Secretary of State may by regulations specify the matters to which regard is to be had in giving or cancelling a certificate under paragraph 20(b) above.

SCHEDULE 20

1

In this Schedule " housing co-operative " means a society, company or body of trustees for the time being approved by the Secretary of State for the purposes of this Schedule.

2

• (1) Where a local authority a new town corporation or the Development Board for Rural Wales has made an agreement with a housing co-operative and the agreement is one to which this Schedule applies, neither the agreement nor any letting of land in pursuance of it shall be taken into account in determining the authority's, corporation's or Board's reckonable expenditure or reckonable income under Part VI of this Act or as a ground for recovering, withholding or reducing any sum under section 102 ; but subject to sub-paragraph (2) below.

• (2) Sub-paragraph (1) above does not apply where the letting is a lease constituting shared ownership, except if, and to the extent that, the Secretary of State otherwise determines.

• (3) For the purposes of sub-paragraph (2) above a lease constituting shared ownership is a lease of a dwelling—

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

• (b) under which 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 dwelling.

3

The agreements to which this Schedule applies are agreements with a local authority made (whether before or after the passing of this Act) with the approval of the Secretary of State—

• (a) for the exercise by the co-operative, on such terms as may be provided in the agreement, of any of the local authority's powers relating to land in which it has a legal estate and which the authority for the time being holds for the purposes of Part V of the 1957 Act, and the performance by the co-operative of any of the local authority's duties relating to such land ; or

• (b) for the exercise by the co-operative, in connection with any such land as is referred to in paragraph (a) above, of any of the local authority's powers under section 94 or 95 of the 1957 Act (powers to provide furniture, board and laundry facilities),

and agreements with a new town corporation or the Development Board for Rural Wales for the exercise by the co-operative, on such terms as may be provided in the agreement, of any of the corporation's or Board's powers under the New Towns Act 1965 or the Development of Rural Wales Act 1976 relating to land in which it has a legal estate.

4

The Secretary of State's approval to the making of any such agreement may be given either generally to local authorities or new town corporations or to any local authority or description of local authority or any new town corporation or description of new town corporation or the Development Board for Rural Wales, or in any particular case, and may be given unconditionally or subject to conditions.

5

Without prejudice to any power to let land conferred on a local authority a new town corporation or the Development Board for Rural Wales by an enactment, the terms of an agreement to which this Schedule applies may include terms providing for the letting of land to the housing co-operative by the local authority, new town corporation or Board.

6

A housing association registered under Part II of the 1974 Act shall not be entitled to a grant under Part III of that Act in respect of land for the time being comprised in an agreement to which this Schedule applies.

SCHEDULE 21

1

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

2

For section 1(4A) of the 1967 Act (reduction of rateable value in consequence of tenants’ improvements), substitute—

(4A) Schedule 8 to the Housing Act 1974 shall have effect to enable a tenant to have the rateable value of the house and premises reduced for purposes of this section in consequence of tenant’s improvements.

3

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

4

In section 16 of the 1967 Act (exclusion of rights which would otherwise accrue under extending tenancies), after subsection (1) insert—

(1A) The Rent Act 1977 shall not apply to a tenancy extended under section 14 above ; but if when this provision comes into force a rent is registered under Part IV of the 1977 Act for a dwelling-house which is the subject of an extended tenancy, the tenant shall not be obliged to pay more than the registered rent under the extended tenancy until the next rental period (within the meaning of the 1977 Act) after the landlord has served on him a notice in writing that the registered rent no longer applies.

5

In section 29 of the 1967 Act (reservation of future right to develop), after subsection (6A) insert—

(6B) Where the landlord is a university body, the possible development for which land may be reserved by a covenant entered into to give effect to subsection (1) or (2) above includes development by a related university body (within the meaning of section 28(6)(b) above

6

In paragraph 7(1)(b) of Schedule 1 to the 1967 Act, at the beginning insert “ subject to paragraph 7A”, omit “ (subject to paragraph 8 below)” and after paragraph 7 insert—

(7A) (1) The price payable for a minor superior tenancy shall be calculated (except where it has been determined by agreement or otherwise before this paragraph comes into force ) by applying the formula set out in sub-paragraph (5) instead of in accordance with section 9. (2) “A minor superior tenancy” means a superior tenancy having an expectation of possesion of not more than one month and in respect of which the profit rent is not more than £5 per year. (3) “Profit rent” means an amount equal to that of the rent payable under the tenancy on which the minor superior tenancy is in immediate reversion, less that of the rent payable under the minor superior tenancy. (4) Where the minor superior tenancy or that on which it is in immediate reversion comprises property other than the house and premises, the reference in sub-paragraph (3) to the rent payable under it means so much of that rent as is apportioned to the house and premises. (5) The formula is— $P=£RY-RY(1+Y)n$ where— - P=the price payable; - R=the profit rent; - Y=the yield (expressed as a decimal fraction) from 2½ per cent. Consolidated Stock ; - n=the period, expressed in years (taking any part of a year as a whole year) which the minor superior tenancy would have to run if it were not extinguished by enfranchisement. (6) In calculating the yield from 2½ per cent. Consolidated Stock, the price of that stock shall be taken to be the middle market price at the close of business on the last trading day in the week before the tenant gives notice in accordance with this Act of his desire to have the freehold.

7

In paragraph 6(1)(b) of Schedule 3 to the 1967 Act (particulars to be included in tenants’ notices of desire to have freehold or extended lease), after “ show that” insert “ (i)”, and at the end insert—

(ii) at the material time the rateable value was within the limits specified for the puroses of section 1; .

8

In Schedule 8 to the 1974 Act (procedure for obtaining reduction of rateable value for purposes of the 1967 Act)—

• (a) in paragraph 1(1) (notice to landlord requiring agreement to reduction), for “ subsection (1) of section 1 of this Act” substitute “ section 1 of the Leasehold Reform Act 1967 ” ;

• (b) in paragraph 2(2)(determinations by county court), omit from “ and any such determination” onwards ;

• (c) in paragraph 3(2)(a) (valuation officer’s certificate) for “ subsection (1) of section 1 of this Act” substitute “ section 1 of the Leasehold Reform Act 1967 ”;

• (d) after paragraph 3 insert—

(4) Where a notice under paragraph 1 of this Schedule is served on or after 21st December 1979, the tenant shall bear the reasonable costs incurred by the landlord in investigating any matter specified in it.

• (e) in paragraph 2 of the second Form set out in the Schedule, for the words “ Schedule Seven to the Leasehold Reform Act 1967” substitute “ Schedule 8 to the Housing Act 1974 ”, and in paragraph 3 of that Form for “ Seven” substitute “ 8 ”.

SCHEDULE 22

Part I — Supplementary Provisions

Constitution of tribunals

1

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

Appeals

2

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

3

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

4

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

Costs

5

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

6

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

Provision of information

7

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

Part II — Amendments of 1967 Act

8

• (1) In section 21(1) (jurisdiction of Lands Tribunal) for “ the Lands Tribunal” substitute “ a leasehold valuation tribunal”.

• (2) After section 21(1) insert—

(1A) An application to a leasehold valuation tribunal under subsection (1) above must be in the prescribed form and contain the prescribed particulars. (1B) No application may be made to a leasehold valuation tribunal under subsection (1) above to determine the price for a house and premises unless either— (a) the landlord has informed the tenant of the price he is asking ; or (b) two months have elapsed without his doing so since the tenant gave notice of his desire to have freehold this Part of this Act.

.

• (3) In section 21(2), for “ the Lands Tribunal” substitute “ a leasehold valuation tribunal” and for “ the Tribunal” substitute “ a tribunal”.

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

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (7) Section 21(5) (costs of proceedings before Lands Tribunal) is repealed.

9

In section 31(2)(a) (consent of Church Commissioners required to provisions of conveyance) after “ the court” insert “ a leasehold valuation tribunal”.

10

In paragraph 5(3) of Schedule 1 (price for intermediate leasehold interests) for “ the Lands Tribunal” (twice) substitute “ a leasehold valuation tribunal”.

11

In paragraph 2(2) of Schedule 2 (compensation payable to tenant for loss of house and premises) for “ the Lands Tribunal” substitute “ a leasehold valuation tribunal”.

12

Paragraph 8(2) of Schedule 2 (costs of proceedings before Lands Tribunal) is hereby repealed.

SCHEDULE 23

1

Sections 20 of the Housing Act 1961 and 61(6) of the 1969 Act are hereby repealed.

2

In section 13(4) of the Housing Act 1961 (contravention of, or failure to comply with, regulations prescribing management code) for paragraphs (a) and (b) there are substituted the words " to a fine not exceeding £200 ".

3

In section 19 of the Act of 1961 (directions to prevent or reduce overcrowding in houses in multiple occupation)—

• (a) in subsection (9) (penalty for making false statement) for the words " twenty pounds " there is substituted " £50 "; and

• (b) for subsection (11) (penalty for failing to comply with requirements of subsection (10)) there is substituted the following subsection—

(11) A person committing an offence under subsection (10) above shall be liable, on summary conviction, to a fine not exceeding £500.

.

4

In section 22(4) of the Act of 1961 (penalty for failing to provide information to local authority) for the words " ten pounds" there is substituted " £50 ".

5

• (1) In Part II of the Act of 1961, after section 26, there is inserted the following section—

(26A) If any person, after receiving notice of the intended action— (a) being the occupier of any premises, prevents the owner thereof or his officers, agents, servants or workmen, from carrying into effect with respect to those premises any of the provisions of this Part of this Act; or (b) being the owner or occupier of any premises, prevents any officer, agent, servant or workman of the local authority, from so doing ; a magistrates' court may order him to permit to be done on the premises all things requisite for carrying into effect those provisions and if he fails to comply with the order he shall be liable, on summary conviction, to a fine not exceeding £200 and to a further fine of £20 for every day or part of a day during which the failure continues.

.

• (2) Section 66 of the Housing Act 1964 is hereby repealed.

6

• (1) In section 65(1) of the Housing Act 1964 (penalty for failure to execute works in respect of houses in multiple occupation) for paragraphs (a) and (b) there are substituted the words " to a fine not exceeding £500 ".

• (2) In Schedule 6 to the Criminal Law Act 1977 the entry relating to section 65(1) of the Act of 1964 is hereby repealed.

7

In section 75(6) of the Act of 1964 (penalty for failure to comply with magistrates' court order) for the words from " in respect of each day" to the end there are substituted the words " be liable, on summary conviction, to a fine not exceeding £200 and to a further fine of £20 for every day or part of a day during which the failure continues ".

8

• (1) In section 61 of the Housing Act 1969 (offences and penalties) for " £100 " there is substituted " £500 ".

• (2) In Schedule 6 to the Criminal Law Act 1977 the entry relating to section 61 of the 1969 Act is hereby repealed.

9

In section 64(7) of the 1969 Act (offence to contravene or fail to comply with scheme for registering houses in multiple occupation) for paragraphs (a) to (c) there are substituted the following paragraphs—

(a) if the offence is a contravention . of so much of the control provisions as relate— (i) to occupation, to a greater extent than permitted thereunder, of a house not registered in pursuance of those, provisions ; or (ii) to the occupation of a house registered in pursuance of those provisions by more households or persons than the registration permits ; to a fine not exceeding £500 ; and (b) in any other case to a fine not exceeding £50.

.

SCHEDULE 24

Exercise of powers of local authority

1

If it appears to a local authority that a house which is occupied by persons who do not form a single household is not provided with such means of escape from fire as the local authority considers necessary the local authority may exercise such of its powers under this Schedule as appear to it most appropriate ; and it shall do so if the house is of such description or occupied in such manner as the Secretary of State may by order specify.

Powers available to local authority

2

• (1) The local authority may serve a notice on any person on whom a notice may be served under section 15 of the Housing Act 1961 specifying the works which in the opinion of the local authority are required to provide the necessary means of escape from fire and requiring the person on whom the notice is served to execute those works within such period, not less than twenty-one days from the service of the notice, as may be specified in the notice.

• (2) The period specified in the notice may from time to time be extended by the local authority.

• (3) Where the local authority serves a notice on any person under this paragraph it shall inform any other person who to its knowledge is an owner, lessee or mortgagee of the house of the fact that the notice has been served.

3

If it appears to the local authority that the means of escape from fire would be adequate if part of the house were not used for human habitation the local authority may secure that that part is not so used.

4

The local authority may secure that part of the house is not used for human habitation and serve a notice under paragraph 2 above specifying such works only as in the opinion of the authority are required to provide the means of escape from fire which will be necessary if that part is not so used.

5

For the purpose of securing that a part of the house is not used for human habitation the local authority may, if after consultation with any owner or mortgagee it thinks fit to do so, accept an undertaking from him that that part will not be used for human habitation without the permission of the local authority.

6

If the local authority does not accept an undertaking under paragraph 5 above with respect to a part of the house, or if, in a case where it has accepted such an undertaking, that part of the house is at any time used in contravention of the undertaking, the local authority may make a closing order with respect to that part of the house.

Enforcement

7

Any person who, knowing that an undertaking has been accepted under paragraph 5 above, uses the part of the house to which the undertaking relates in contravention of the undertaking, or permits that part of the house to be so used, shall be guilty of an offence and liable on summary conviction to a fine not exceeding £50 and to a further fine of £5 for every day, or part of a day, on which he so uses it or permits it to be so used after conviction.

Consultation with fire authority

8