Legalize / United Kingdom / Public General Act

Tenants’ Rights, Etc. (Scotland) Act 1980

Type Public General Act

Publication 1985-08-01

Last updated 1980-08-08

State In force

Department Statute Law Database

Source legislation.gov.uk

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PART I — Rights of Public Sector Tenants to Purchase the Dwelling-houses which they Occupy

Secure tenant's right to purchase

1

(1) Notwithstanding anything contained in any tenancy agreement, a tenant of a dwelling-house to which this section applies (or such one or more of joint tenants as may be agreed between them) shall, subject to this Part of this Act, have the right to purchase the dwelling-house at a price fixed under subsection (5) below.

(2) Where the spouse of a tenant or, where there is a joint tenancy, the spouse of a joint tenant, occupies the dwelling-house as his only or principal home but is not himself a joint tenant, the right to purchase the dwelling-house under subsection (1) above shall not be exercised without the consent of such spouse.

(3) Subject to subsection (11) below, this section applies to every dwelling-house let under a secure tenancy where the landlord is a body mentioned in any of paragraphs (a), (b), (c) or (f) of section 10(2) of this Act and, immediately prior to the relevant date, the tenant or, where there are joint tenants, any one of them has been for not less than 3 years in occupation of a dwelling-house or of a succession of dwelling-houses provided by any persons mentioned in subsection (10) below.

(4) A tenant may exercise his right to purchase, if he so wishes, together with one or more members of his family acting as joint purchasers, provided—

(a) that such members are over the age of 18 years and at the relevant date the dwelling-house has been their only or principal home for a continuous period of 6 months, and their residence in the dwelling-house is not a breach of any obligation of the tenancy; or

(b) where the requirements of paragraph (a) above are not satisfied, the landlord has consented.

(5) Subject to subsection (7) below, the price at which a tenant shall be entitled to purchase a dwelling-house under this section shall be fixed by subtracting from the market value of the dwelling-house (determined in accordance with paragraph (a) below) a discount calculated in accordance with paragraph (b) below—

(a) the market value for the purposes of this subsection shall be determined by—

(i) a qualified valuer nominated by the landlord and accepted by the tenant; or

(ii) the district valuer, as if the dwelling-house were available for sale on the open market with vacant possession at the relevant date;

(b) the discount for the purposes of this subsection shall be—

(i) 33 per cent of the market value determined under paragraph (a) above; together with

(ii) an additional one per cent of the said market value for every year beyond 3 of continuous occupation by the tenant or by any one of the joint tenants or by his spouse, immediately preceding the relevant date, of a dwelling-house or of a succession of dwelling-houses provided by any persons mentioned in subsection (10) below,

up to a maximum discount of 50 per cent of the said market value.

(6) For the purposes of subsection (5)(a) above, no account shall be taken of any element in the market value of the house which reflects an increase in value as a result of work the cost of which would qualify for a reimbursement under section 24 of this Act.

(7) Where the dwelling-house was first let under a secure tenancy (or under a tenancy which, if Part II of this Act had then been in force, would have been a secure tenancy) after 15 May 1975, the price fixed under subsection (5) above shall not be less than—

(a) the outstanding debt incurred in providing the dwelling house ; or

(b) the market value of the dwelling-house determined under subsection (5)(a) above,

whichever is the lesser except in such cases as the Secretary of State may by order made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament, with the consent of the Treasury, prescribe.

(8) In subsection (7) above, "outstanding debt" means any undischarged debt arising from—

(a) the cost of the erection or acquisition of the dwelling house ; together with

(b) the cost of acquisition of the site of the dwelling-house; and

(d) administrative costs attributable to the matters mentioned in paragraphs (a) to (c) above.

(9) Where at the date of service of an offer to sell under section 2 of this Act any of the costs referred to in subsection (8) above are not known, the landlord shall make an estimate of such unknown costs for the purposes of the said subsection.

(10) The persons referred to in subsection (3) above (right of purchase) and in subsection (5)(b)(ii) above (discount) are—

(a) a regional, district or islands council in Scotland; any local authority in England and Wales or in Northern Ireland; and the statutory predecessors of any such council or authority, or the common good of any such council, or any trust under the control of any such council;

(b) the Commission for the New Towns ;

(c) a development corporation established under an order made, or having effect as if made under the New Towns (Scotland) Act 1968; any development corporation established under corresponding legislation in England and Wales or in Northern Ireland; and the statutory predecessors of any such authority;

(d) the Scottish Special Housing Association ;

(e) a housing co-operative within the meaning of section 5 of the Housing Rents and Subsidies (Scotland) Act 1975 or of paragraph 9 of Schedule 1 to the Housing Rents and Subsidies Act 1975 ;

(f) the Development Board for Rural Wales ;

(g) the Northern Ireland Housing Executive or any statutory predecessor;

(h) a police authority in Scotland within the meaning of section 2(1) or section 19(9)(b) of the Police (Scotland) Act 1967 ; any police authority constituted under corresponding legislation in England and Wales or in Northern Ireland; and the statutory predecessors of any such authority;

(i) a fire authority in the United Kingdom for the purposes of the Fire Services Acts 1947 to 1959 ; and the statutory predecessors of any such authority ;

(j) a water authority in Scotland as constituted under section 148 of the Local Government (Scotland) Act 1973 ; any water authority constituted under corresponding legislation in England and Wales or in Northern Ireland; and the statutory predecessors of any such authority;

(k) the Secretary of State, where the dwelling-house was at the material time used for the purposes of the Scottish Prison Service or of a prison service for which the Home Office or the Northern Ireland Office have responsibility ;

(l) the Crown, in relation to accommodation provided in connection with service by the tenant or occupier as a member of the regular armed forces of the Crown;

(m) the Secretary of State, where the dwelling-house was at the material time used for the purposes of a health board constituted under section 2 of the National Health Services (Scotland) Act 1978 or for the purposes of a corresponding board in England and Wales, or for the purposes of the statutory predecessors of any such board; or the Department of Health and Social Services for Northern Ireland, where the house was at the material time used for the purposes of a Health and Personal Services Board in Northern Ireland, or for the purposes of the statutory predecessors of any such board;

(n) the Secretary of State, or the Minister of Agriculture, Fisheries and Food, where the dwelling-house was at the material time used for the purposes of the Forestry Commission.

(11) This section does not apply—

(a) where a landlord mentioned in any of paragraphs (a), (b) or (c) of section 10(2) of this Act is not the heritable proprietor of a dwelling-house ;

(b) where a landlord of a dwelling-house is a housing co-operative within the meaning of section 5 of the Housing Rents and Subsidies (Scotland) Act 1975 and neither it nor a body mentioned in the said paragraph (a) of section 10(2) of this Act is the heritable proprietor of the dwelling-house ; nor

(c) where a dwelling-house is one of a group which has been provided with facilities (including a call system and the services of a warden) specially designed or adapted for the needs of elderly or disabled persons.

(12) In this section—

" occupation " of a dwelling-house means occupation— as a tenant or as a person to whom a dwelling-house is provided rent-free ; or as the spouse of a person mentioned in paragraph (i) above; or in the discretion of the landlord, as the child of a person mentioned in paragraph (i) above who has succeeded to the rights of that person in a dwelling-house occupation of which would be reckon-able for the purposes of this section, but only in relation to any period when the child is over the age of 16 years ; and any interruption in occupation of 12 months or less shall, and any interruption in occupation of more than 12 months and less than 24 months may at the discretion of the landlord, be disregarded and, for the purposes of subsection (5)(b)(ii), "dwelling-house" includes accommodation provided in connection with service by the tenant or occupier as a member of the regular armed forces of the Crown ;

" regular armed forces of the Crown " has the same meaning as in section 1 of the House of Commons Disqualification Act 1975; and

" relevant date " means— in the case where an application to purchase is served within 6 months of the date of the commencement of this section, that date ; and in any other case the date of service of an application to purchase under section 2(1) of this Act.

Procedure

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(1) A tenant who seeks to exercise a right to purchase a dwelling-house under section 1 of this Act shall serve on the landlord a notice (referred to in this Part of this Act as an " application to purchase ") which shall be in such form as the Secretary of State shall by order made by statutory instrument prescribe, and shall contain—

(a) notice that the tenant seeks to exercise the right to purchase;

(b) a statement of any period of occupancy of a dwelling house on which the tenant intends to rely for the purposes of section 1 of this Act; and

(c) the name of any joint purchaser: provided that any reference in this section to a joint purchaser is a reference to a joint purchaser within the meaning of section 1 (4) of this Act.

(2) Where an application to purchase is served on a landlord, and the landlord does not serve a notice of refusal under section 3 of this Act, it shall, within 3 months where the application is made during the first year after the commencement of this section, or, in any other case, within 2 months after service of the application to purchase serve on the tenant a notice (referred to in this Part of this Act as an " offer to sell ") containing—

(a) the market value of the dwelling-house determined under section 1(5)(a) of this Act;

(b) the discount calculated under section 1(5) (b) of this Act;

(d) any conditions which the landlord intends to impose under section 4 of this Act; and

(e) an offer to sell the dwelling-house to the tenant and any joint purchaser named in the application to purchase at the price referred to in paragraph (c) above and under the conditions referred to in paragraph (d) above.

(3) Where an offer to sell is served on a tenant and he wishes to exercise his right to purchase, but—

(a) he considers that a condition contained in the offer to sell is unreasonable ; or

(b) he wishes to have a new condition included in it; or

(c) he has not previously notified the landlord of his intention to exercise that right together with a joint purchaser, but now wishes to do so ; or

(d) he has previously notified the landlord of his intention to exercise that right together with any joint purchaser but now wishes to exercise the right without that joint purchaser,

he may request the landlord to strike out or vary the condition, or to include the new condition, or to make the offer to sell to the tenant and the joint purchaser, or to withdraw the offer to sell in respect of the joint purchaser, as the case may be, by serving on the landlord within one month after service of the offer to sell a notice in writing setting out his request; and if the landlord agrees, it shall accordingly serve an amended offer to sell on the tenant within one month of service of the said notice setting out the request.

(4) A tenant who is aggrieved by the refusal of the landlord to agree to strike out or vary a condition, or to include a new condition or to make the offer to sell to the tenant and the joint purchaser, or to withdraw the offer to sell in respect of any joint purchaser under subsection (3) above, or by his failure timeously to serve an amended offer to sell under the said subsection, may, within one month or, with the consent of the landlord given in writing before the expiry of the said period of one month, within two months of the refusal or failure, refer the matter to the Lands Tribunal for Scotland for determination.

(5) In proceedings under subsection (4) above, the Lands Tribunal for Scotland may, as it thinks fit, uphold the condition or strike it out or vary it, or insert the new condition or order that the offer to sell be made to the tenant and the joint purchaser, or order that the offer to sell be withdrawn in respect of any joint purchaser, and where its determination results in a variation of the terms of the offer to sell, it shall order the landlord to serve on the tenant an amended offer to sell accordingly within 2 months thereafter.

(6) Where an offer to sell is served on a tenant and he wishes to exercise his right to purchase and—

(a) he does not dispute the terms of the offer to sell by timeously serving a notice setting out a request under subsection (3) above; or

(b) any such dispute has been determined by agreement between the landlord and the tenant or by determination by the Lands Tribunal for Scotland ;

the tenant shall serve a notice of acceptance on the landlord within two months of whichever is the latest of—

(i) the service on him of the offer to sell;

(ii) the service on him of an amended offer to sell (or if there is more than one, of the latest amended offer to sell);

(iii) a determination by the Lands Tribunal for Scotland under subsection (5) above which does not require service of an amended offer to sell;

(iv) where a loan application under section 5 of this Act has been served on the landlord, the service of a relative offer of loan ; or

(v) where section 5(7) of this Act is invoked, the decision of the court.

(7) Where an offer to sell (or an amended offer to sell) has been served on the tenant and a relative notice of acceptance has been duly served on the landlord, a contract of sale of the dwelling-house shall be constituted between the landlord and the tenant on the terms contained in the offer (or amended offer) to sell.

(8) Where an offer to sell (or an amended offer to sell) is served on a tenant, but he is unable by reason of the application of regulations made under section 5(3) of this Act to obtain a loan of the amount for which he has applied, he may, within 2 months of service on him of an offer of loan, or (as the case may be) of the date of a declarator by the sheriff under section 5(7) of this Act, whichever is the later, serve on the landlord a notice to the effect that he wishes to have a fixed price option, which notice shall be accompanied by a payment to the landlord of £100, and in that event he shall be entitled to serve a notice of acceptance on the landlord at any time within 2 years of the service of the application to purchase.

(9) The payment of £100 mentioned in subsection (8) above shall be recoverable—

(a) by the tenant, when he purchases the dwelling-house in accordance with that subsection or, if he does not, at the expiry of the period of 2 years mentioned therein ;

(b) by the tenant, when the landlord recovers possession of the dwelling-house under subsection (11) below ; or

(c) by his personal representatives, if he dies without purchasing the dwelling-house in accordance with that subsection.

(10) Where a tenant has made an application to purchase under subsection (1) above, he shall not be entitled to make an application to purchase under this Part of this Act again until 12 months after the last date on which he would be entitled to serve a notice of acceptance under subsection (6) or (8) above.

(11) The existence of a fixed price option under subsection (8) above shall not prevent the landlord from recovering possession of the property in any manner which may be lawful, and in that event the option shall be terminated.

Refusal of applications

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(1) Where a landlord on which an application to purchase has been served disputes the tenant's right to purchase a dwelling-house under section 1 of this Act, it shall by notice (referred to in this Part of this Act as a " notice of refusal ") served within one month after service of the application to purchase—

(a) refuse the application ; or

(b) offer to sell the dwelling-house to the tenant under section 8 of this Act or under any other power which the landlord has to sell the dwelling-house.

(2) Where a landlord on which an application to purchase has been served, after reasonable enquiry (which shall include reasonable opportunity for the tenant to amend his application), is of the opinion that information contained in the application is incorrect in a material respect it shall issue a notice of refusal within 2 months of the application to purchase.

(3) A notice of refusal shall specify the grounds on which the landlord disputes the tenant's right to purchase or, as the case may be, the accuracy of the information.

(4) Where a landlord serves a notice of refusal on a tenant under this section, the tenant may within one month thereafter apply to the Lands Tribunal for Scotland for a finding that he has a right to purchase the dwelling-house under section 1 of this Act on such terms as it may determine.

Conditions of sale

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(1) An offer to sell under section 2(2) of this Act shall contain such conditions as are reasonable, provided that—

(a) the conditions shall have the effect of ensuring that the tenant has as full enjoyment and use of the dwelling-house as owner as he has had as tenant;

(b) the conditions shall secure to the tenant such additional rights as are necessary for his reasonable enjoyment and use of the dwelling-house as owner (including, without prejudice to the foregoing generality, common rights in any part of the building of which the dwelling-house forms part) and shall impose on the tenant any necessary duties relative to rights so secured ; and

(c) the conditions shall include such terms as are necessary to entitle the tenant to receive a good and marketable title to the dwelling-house.

(2) A condition which imposes a new charge or an increase of an existing charge for the provision of a service in relation to the dwelling-house shall provide for the charge to be in reasonable proportion to the cost to the landlord of providing the service.

(3) No condition shall be imposed under this section which has the effect of requiring the tenant to pay any expenses of the landlord incurred in connection with the sale of the dwelling-house.

(4) Subject to subsection (6) below, no condition shall be imposed under this section which has the effect of requiring the tenant or any of his successors in title to offer to the landlord, or to any other person, an option to purchase the dwelling-house in advance of its sale to a third party, except in the case of a dwelling-house which has facilities which are substantially different from those of an ordinary dwelling-house and which has been designed or adapted for occupation by an elderly or disabled person whose special needs require accommodation of the kind provided by the dwelling-house.

(5) Where an option to purchase permitted under subsection (4) above is exercised, the price to be paid for the dwelling-house shall be determined by the district valuer who shall have regard to the market value of the dwelling-house at the time of the purchase and to any amount due to the landlord under section 6 of this Act (recovery of discount on early re-sale).

(6) Subsection (4) above shall not apply to dwelling-houses in an area which is designated a rural area by the islands or district council within whose area it is situated where the Secretary of State, on the application of the islands or district council concerned, makes an order, which shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament, to that effect.

(7) An order under subsection (6) above may be made where—

(a) within the said rural area more than one-third of the number of dwelling-houses of which the council concerned is the landlord at the date of commencement of this Part of this Act have been sold ; and

(b) the Secretary of State is satisfied that an unreasonable proportion of the houses sold have been resold and are not being used as the only or principal home of the owner.

(8) A condition imposed by virtue of subsection (6) above shall not have effect in relation to any dwelling-house for more than 10 years from the date of its conveyance to a tenant in pursuance of his right to purchase under this Part of this Act and subsection (5) above shall apply to any option to purchase exercised under such a condition.

Loans

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(1) A tenant who seeks to exercise his right to purchase a dwelling-house under section 1 of this Act and who has received an offer to sell (or, as the case may be, an amended offer to sell) from the landlord shall be entitled, together with any joint purchaser under subsection (4) of the said section 1 (and the said tenant and any joint purchaser are referred to in this section as " the applicant ") to apply—

(a) in the case where the landlord is a development corporation established by an order made, or having effect as if made, under the New Towns (Scotland) Act 1968, or the Scottish Special Housing Association, to that body; or

(b) in any other case, to the islands or district council for the area in which the dwelling-house is situated,

for a loan of an amount not exceeding the price fixed under section 1(5) of this Act to assist him to purchase the dwelling-house.

(2) An application under this section (referred to in this Part of this Act as a " loan application ")—

(a) must be served on the landlord or other body within one month after service on the tenant of the offer to sell (or, where there has been service of one or more amended offers to sell or there has been a determination by the Lands Tribunal for Scotland under section 2(5) of this Act which does not require the issue of an amended offer to sell, of the latest of these);

(b) shall be in such form as the Secretary of State shall by order made by statutory instrument prescribe, and shall contain—

(i) the amount of the loan which the applicant seeks;

(ii) the applicant's annual gross income and his net income after payment of income tax and national insurance contributions;

(iii) any liabilities in respect of credit sales or other fixed outgoings of the applicant; and

(iv) a statement that the applicant has applied for and been unable to obtain a sufficient building society loan; and

(3) Subject to such requirements as the Secretary of State may by order made by statutory instrument impose, a landlord or, other body which receives an application under subsection (1) above shall, where it is satisfied on reasonable inquiry (which shall include reasonable opportunity for the applicant to amend his application) that the information contained in the loan application is correct, serve on the applicant an offer of loan, which shall specify a maximum amount of loan calculated in accordance with regulations made by order made by statutory instrument by the Secretary of State.

(4) A landlord or other body to which application has been made under subsection (1) above shall complete its inquiries and either—

(a) issue the offer of loan under subsection (3) above ; or

(b) refuse the application on the ground that information contained in the loan application is incorrect in a material respect,

within 2 months of the date of service of the loan application.

(5) An applicant who wishes to accept an offer of loan shall do so along with his notice of acceptance under section 2(6) of this Act.

(6) An offer of loan under subsection (3) above together with an acceptance under subsection (5) above shall constitute an agreement by the landlord or other body, subject to such requirements as the Secretary of State may by order made by statutory instrument impose, to lend to the applicant for the purpose of purchasing the dwelling-house—

(a) the maximum amount of loan mentioned in subsection (3) above; or

(b) the amount of loan sought by the applicant,

whichever is the lesser, on the execution by the applicant of a standard security over the dwelling-house.

(7) An applicant who is aggrieved by a refusal under subsection (4)(b) above, or by a failure to comply with the said subsection, or by the calculation of maximum amount of loan mentioned in subsection (3) above may, within 2 months of the date of the refusal or failure or of the offer of loan, as the case may be, raise proceedings by way of summary application in the sheriff court for the district in which the dwelling-house is situated for declarator that he is entitled to a loan in accordance with subsection (3) above.

(8) Where in proceedings under subsection (7) above the sheriff grants declarator that the applicant is entitled to a loan, such declarator shall have effect as if it were an offer of loan of the amount specified in the declarator duly issued under this section by the landlord or other body.

(9) A statutory instrument made under subsection (3) or (6) above shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Recovery of discount on early re-sale

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(1) A person who has purchased a dwelling-house in exercise of a right to purchase under section 1 of this Act, or any of his successors in title, who sells or otherwise disposes of the dwelling-house (otherwise than in the capacity of executor of the deceased owner or as a result of an order for compulsory purchase) before the expiry of 5 years from the date of service of a notice of acceptance by the tenant under section 2(6) of this Act shall be liable to repay to the landlord a proportion of the discount under section 1(5)(b) of this Act in accordance with subsection (3) below.

(2) Subsection (1) above applies to the disposal of part of a dwelling-house except in a case where—

(a) it is a disposal by one of the parties to the original sale to one of the other parties; or

(b) the remainder of the dwelling-house continues to be the only or principal home of the person disposing of the part.

(3) The proportion of the said discount which shall be paid to the landlord shall be 100 per cent where the said disposal occurs within the first year after the said date of service of notice, 80 per cent, where it occurs in the second such year, and so on, reducing by 20 per cent, each year until the end of the 5 year period.

(4) Where there is more than one disposal within the period mentioned in subsection (1) above, this section applies only in relation to the first disposal.

(5) Where a landlord secures the liability to repay a proportion of discount under this section the security shall, notwithstanding section 13 of the Conveyancing and Feudal Reform (Scotland) Act 1970, have priority immediately after—

(a) a standard security granted in security of a loan for the purchase of the dwelling-house and any interest present or future due thereon (including any such interest which has accrued or may accrue) and any expenses or outlays (including interest thereon) which may be, or may have been, reasonably incurred in the exercise of any power conferred on the lender by the deed expressing the said standard security; and

(b) if the landlord consents, a standard security over the dwelling-house granted in security of any further loan, and in relation thereto any such interest, expenses or outlays as aforesaid.

(6) The liability to repay a proportion of discount under this section shall not be imposed as a real burden in a disposition of any interest in the dwelling-house.

Duties of landlords

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(1) It shall be the duty of every landlord under a secure tenancy of a dwelling-house to which this Part of this Act applies to make provision for the progression of applications under this Part of this Act in such manner as may be necessary to enable any tenant who wishes to exercise his rights under this Part of this Act to do so, and to comply with any regulations which may be made by order made by statutory instrument by the Secretary of State in that regard.

(2) the tenant (together with any joint purchaser) may refer the matter to the Lands Tribunal for Scotland by serving on the clerk to that body a copy of any notice served and of any finding or determination made under this Part of this Act, together with a statement of his grievance.

(1) Where a landlord who has been duly served with an application to purchase fails to issue timeously either an offer to sell or a notice of refusal; or

(b) where the Lands Tribunal for Scotland has made a determination under section 2(5) of this Act (variation of terms of offer to sell), and the landlord has failed to issue an amended offer to sell within 2 months thereafter ; or

(c) where the Lands Tribunal for Scotland has made a finding under section 3(4) of this Act (refusal of right to purchase) and the landlord has not duly progressed the application to purchase in accordance with the said finding, within 2 months thereafter,

(3) Where a matter has been referred to the Lands Tribunal for Scotland under subsection (2) above, the Lands Tribunal for Scotland shall consider whether in its opinion any of paragraphs (a) to (c) of that subsection apply, and if it so finds it may issue such notices and undertake such other steps as may be required to complete the procedure provided for in section 2 of this Act; and anything done under this subsection shall have effect as if it had been duly done by the landlord under the relevant provision of the said section 2.

(4) Nothing in this section shall affect the operation of the provisions of any other enactment relating to the enforcement of a statutory duty whether under that enactment or otherwise

Removal of restrictions on powers of local authorities to sell houses

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(1) Notwithstanding anything contained in any enactment a local authority may sell any house to which this section applies without the consent of the Secretary of State.

(2) This section applies to a house provided for the purposes of part VII of the Housing (Scotland) Act 1966, where—

(a) the house is being sold to a tenant or to members of his family who normally reside with him ( or to a tenant together with such members of his family, as joint purchases) ; or

(b) the house is unoccupied and—

(i) it is not held on the housing revenue account maintained in terms of section 23 of the Housing (Financial Provisions) (Scotland) Act 1972; or

(ii) it is held on the housing revenue account and it is, in the opinion of the local authority, either surplus to its requirements or difficult to let, because it has been continuously vacant for a period of not less than 3 months immediately prior to the date of the sale and during that period it has been on unrestricted offer to any applicant on the local authority's housing list (within the meaning of section 26 of this Act (allocation)).

(3) Section 145 of the Housing (Scotland) Act 1966 (powers to deal with land acquired for the purposes of Part VII) shall be amended as follows—

(a) in subsection (1)(d), for the words from "paid" to the end substitute " secured by standard security over the subjects sold. " ;

(b) paragraph (b) of subsection (5) is repealed ;

(6A) subsection (6) above shall not apply where— (a) the house is being sold to a tenant or to a member of his family who normally resides with him (or to a tenant together with members of his family, as joint purchasers); or (b) the requirements of section 8(2)(b) of the Tenants' Rights, Etc. (Scotland) Act 1980 are satisfied.

(4) Expressions used in this section and in the said Part VII have the same meaning in this section as in that Part.

Removal of restrictions on powers of registered housing associations to sell houses

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(1) After the commencement of this section, any provision contained in the rules of a body to which this section applies which prevents it from selling or leasing any dwelling-house (where such a disposal would otherwise be lawful) shall cease to have effect.

(2) This section applies to every body which is a housing association within the meaning of section 208(1) of the Housing (Scotland) Act 1966 and which is registered in the register of housing associations established under section 13 of the Housing Act 1974.

(3) Nothing in this section shall affect the operation of section 2 of the Housing Act 1974 (control by the Housing Corporation).

PART II — Rights of Public Sector Tenants to Security of Tenure Etc

Security of tenure

Secure tenancies

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(1) From the commencement of this Part of this Act, subject to subsection (4) below and to sections 11 and 13(6) of this Act, a tenancy (whether created before or after the commencement of this section) of a dwelling-house shall be a secure tenancy if—

(a) the dwelling-house is let as a separate dwelling ;

(b) the tenant is an individual and the dwelling-house is his only or principal home ; and

(2) The bodies referred to in subsection (1)(c) above are—

(a) an islands or district council, or a joint board or joint committee of an islands or district council or the common good of an islands or district council, or any trust under the control of an islands or district council;

(b) a development corporation established by an order made, or having effect as if made, under the New Towns (Scotland) Act 1968;

(d) the Housing Corporation ;

(e) a registered housing association within the meaning of the Housing Act 1974 ;

(f) a housing co-operative within the meaning of section 5 of the Housing Rents and Subsidies (Scotland) Act 1975 ; and

(g) any housing trust which was in existence on 13th November 1953 or any authorised society within the meaning of the Housing Act 1914.

(3) Where a tenancy of a dwelling-house is held jointly by two or more individuals, the requirements of subsection (1)(b) above shall be deemed to be satisfied if all the joint tenants are individuals and at least one of the joint tenants occupies the dwelling-house as his only or principal residence.

(a) A tenancy shall not be a secure tenancy if it is a tenancy of a kind mentioned in Schedule 1 to this Act.

(b) Where the tenancy of a dwelling-house is excluded from being a secure tenancy by reason only of the operation of paragraph 2 of the said Schedule 1, sections 16, 17 and 21 to 25 of this Act shall nevertheless apply to that tenancy as if it were a secure tenancy.

(5) A tenancy which has become a secure tenancy shall continue to be a secure tenancy notwithstanding that the requirements Of subsection (1)(b) above may have ceased to be fulfilled.

(6) Where a tenant under a secure tenancy is accommodated temporarily in another dwelling-house of which the landlord is a body mentioned in subsection (2) above, while the dwelling-house which he normally occupies is not available for occupation, the other dwelling-house shall be deemed for the purposes of this Part of this Act, except sections 12 and 14, to be the dwelling-house which he normally occupies.

Special provision for housing associations

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(1) In this section—

" registered association " means a registered housing association within the meaning of the Housing Act 1974; and

" registered society " means a housing association which is a registered society within the meaning of section 74 of the Industrial and Provident Societies Act 1965 and whose rules restrict membership to persons who are tenants or prospective tenants of the association and preclude the granting or assigning of tenancies to persons other than members.

(2) A tenancy shall not be a secure tenancy at any time when the interest of the landlord belongs to a housing association which is both a registered association and a registered society.

(3) Part II of this Act with the exception of sections 16, 17 and 21 to 25 shall apply to a tenancy at any time when the interest of the landlord belongs to a housing association which is a registered society but is not a registered association.

(4) If a housing association which is a registered society has been a registered association but ceases to be a registered association, it shall notify those of its tenants who become secure tenants on its ceasing to be a registered association that they have become secure tenants in terms of subsection (3) above.

(5) Notice under subsection (4) above shall be given in writing to each tenant concerned, within the period of 21 days beginning with the date on which the association ceases to be a registered association.

Security of tenure

12

(1) Notwithstanding any provision contained in the tenancy agreement, a secure tenancy may not be brought to an end except—

(a) by the death of the tenant (or, where there is more than one, of any of them), where there is no qualified person within the meaning of section 13 of this Act;

(b) by operation of section 13(4) or (5) of this Act;

(d) by operation of section 19(2) of this Act;

(e) by an order for recovery of possession under section 15(2) of this Act; or

(f) by 4 weeks notice given by the tenant to the landlord.

(2) If while the dwelling-house which the tenant under a secure tenancy normally occupies is not available for occupation, the tenant is accommodated temporarily in another dwelling-house of which the landlord is a body mentioned in section 10(2) of this Act, either—

(a) by agreement; or

(b) following an order under section 15(2) of this Act (in a case where an order has also been made under subsection (5) of that section),

the landlord shall not be entitled to bring the tenant's occupation of the other dwelling-house to an end before the dwelling-house which he normally occupies is available for occupation unless the secure tenancy has been brought to an end.

Succession to secure tenancy

13

(1) On the death of a tenant under a secure tenancy, the tenancy shall pass by operation of law to a qualified person, unless—

(a) there is no qualified person, or the qualified person declines the tenancy under subsection (4) below; or

(b) the tenancy is terminated by operation of subsection (5) below.

(2) For the purposes of this section, a qualified person is—

(a) the tenant's spouse where the dwelling-house was his only or principal home at the time of the tenant's death;

(b) where the tenancy was held jointly by two or more individuals, a surviving tenant where the dwelling-house was his only or principal home at the time of the tenant's death;

(c) where there is no person falling within paragraph (a) or (b) above, a member of the tenant's family over the age of 16 years where the dwelling-house was his only or principal home throughout the period of 12 months immediately preceding the tenant's death.

(3) Where there is more than one qualified person, the benefit of the provisions of subsection (1) above or, as the case may be, of subsection (6) below shall accrue—

(a) to such qualified person ; or

(b) to such two or more qualified persons as joint tenants,

as may be decided by agreement between all the qualified persons or, failing agreement within four weeks of the death of the tenant, as the landlord shall decide.

(4) A qualified person who is entitled to the benefit of subsection (1) above may decline the tenancy by giving the landlord notice in writing within 4 weeks of the tenant's death, and—

(a) he shall vacate the dwelling-house within 3 months thereafter;

(b) he shall be liable to pay rent which becomes due after the said death only in respect of any rental period (that is to say, a period in respect of which an instalment of rent falls to be paid) during any part of which he has occupied the dwelling-house after the said death.

(5) A secure tenancy which has passed under subsection (1) above to a qualified person shall not, on the death of a tenant (or one of joint tenants) so pass on a second occasion, and accordingly, the secure tenancy shall be terminated when such a death occurs; but the provisions of this subsection shall not operate so as to terminate the secure tenancy of any tenant under a joint tenancy where such a joint tenant continues to use the dwelling-house as his only or principal home.

(6) Where a secure tenancy is terminated by operation of subsection (5) above, and there is a qualified person, he shall be entitled to continue as tenant for a period not exceeding 6 months, but the tenancy shall cease to be a secure tenancy.

(7) Where a tenant gives up a secure tenancy in order to occupy another dwelling-house which is subject to a secure tenancy, whether by agreement or following termination of the first tenancy by an order under section 15(2)(b) of this Act, for the purposes of subsections (2) and (5) above those tenancies shall be treated as being a single secure tenancy.

Proceedings for possession

14

(1) The landlord under a secure tenancy may raise proceedings for recovery of possession of the dwelling-house by way of summary cause in the sheriff court of the district in which it is situated.

(2) Proceedings for recovery of possession of a dwelling-house subject to a secure tenancy may not be raised unless—

(a) the landlord has served on the tenant a notice complying with subsection (3) below ;

(b) the proceedings are raised after the date specified in the said notice ; and

(3) A notice under this section shall be in a form prescribed by the Secretary of State by statutory instrument, and shall specify—

(a) the ground, being a ground set out in Part I of Schedule 2 to this Act, on which proceedings for recovery of possession are to be raised ; and

(b) a date, not earlier than 4 weeks from the date of service of the notice or the date on which the tenancy could have been brought to an end by a notice to quit had it not been a secure tenancy, whichever is later, on or after which the landlord may raise proceedings for recovery of possession.

(4) A notice under this section shall cease to be in force 6 months after the date specified in it in accordance with subsection (3)(b) above, or when it is withdrawn by the landlord, whichever is earlier.

Powers of sheriff in proceedings

15

(1) The court may, as it thinks fit, adjourn proceedings under section 14 of this Act on a ground set out in any of paragraphs 1 to 6 of Part I of Schedule 2 to this Act for a period or periods, with or without imposing conditions as to payment of outstanding rent or other conditions.

(2) Subject to subsection (1) above, in proceedings under the said section 14 the court shall make an order for recovery of possession—

(a) if it appears to the court that the landlord has a ground for recovery of possession, being a ground set out in any of paragraphs 1 to 7 of the said Part I and specified in the notice required by the said section 14 and that it is reasonable to make the order ; or

(b) where a ground for recovery of possession set out in any of paragraphs 8 to 14 of the said Part I is specified in the said notice, if it appears to the court that other suitable accommodation will be available for the tenant when the order takes effect.

(3) Part II of Schedule 2 to this Act shall have effect to determine whether accommodation is suitable for the purposes of subsection (2)(b) above.

(4) An order under subsection (2) above shall appoint a date for recovery of possession and shall have the effect of—

(a) terminating the tenancy ; and

(b) giving the landlord the right to recover possession of the dwelling-house,

at that date.

(5) Where, in proceedings under section 14 of this Act on the ground set out in paragraph 10 of Part I of Schedule 2 to this Act, it appears to the court that it is the intention of the landlord—

(a) that substantial work will be carried out on the building (or a part of the building) which comprises or includes the dwelling-house ; and

(b) that the tenant should return to the dwelling-house after the work is completed,

the court shall make an order that the tenant shall be entitled to return to the dwelling-house after the work is completed ; and subsection (4)(a) above shall not apply in such a case.

Leases

Tenant's right to written lease

16

(1) Every secure tenancy created after the commencement of this section shall be constituted by writing which shall be probative or holograph of the parties.

(2) It shall be the duty of the landlord under every secure tenancy which is in existence at the commencement of this section to embody the existing terms of the tenancy (so far as not implied by law or already contained in a lease which complies with this subsection or in a lease which has been declared binding by the sheriff under subsection (5) below) in a written lease which shall be probative or holograph of the parties.

(3) It shall be the duty of the landlord under a secure tenancy to draw up the documents required to comply with subsection (1) or (2) above, to ensure that they are duly executed—

(a) in the case of subsection (1) above, before the commencement of the tenancy ; and

(b) in the case of subsection (2) above, within 2 years after the commencement of this section,

and to supply a copy of the documents to the tenant.

(4) may raise proceedings by way of summary application in the sheriff court of the district in which the dwelling-house is situated.

(a) A tenant (or any one of joint tenants) under a secure tenancy who considers that a lease drawn up by the landlord for the purposes of subsection (2) above does not fairly reflect the existing terms of the tenancy; or

(b) a landlord, in a case where a tenant refuses or fails duly to execute a document for the purposes of this section,

(5) In proceedings under subsection (4) above the sheriff shall—

(a) where it appears to him that the lease does not fairly reflect the existing terms of the tenancy, adjust the terms of the lease so that they do so ; and

(b) in any case make an order declaring that the lease (or, as the case may be, the lease as adjusted by him) fairly reflects the terms of the tenancy, and the said lease shall then have effect as if it had been duly executed by the parties.

(6) A tenant shall not be required to pay any fees in respect of anything done under subsection (3) above.

Variation of terms of secure tenancies

17

(1) Notwithstanding anything contained in the tenancy agreement, the terms of a secure tenancy may not be varied, except—

(a) by agreement between the landlord and the tenant; or

(b) under subsection (2) or (4) below.

(2) The rent or any other charge payable under a secure tenancy may, without the tenancy being terminated, be increased with effect from the beginning of any rental period (that is to say, a period in respect of which an instalment of rent falls to be paid) by a written notice of increase given by the landlord to the tenant not less than 4 weeks before the beginning of the rental period (or any earlier day on which the payment of rent in respect of that period falls to be made).

(3) the landlord or, as the case may be, the tenant may raise proceedings by way of summary application in the sheriff court of the district in which the dwelling-house is situated.

(a) Where a landlord wishes to vary the terms or conditions of a secure tenancy, but the tenant refuses or fails to agree the variation ; or

(b) where a tenant wishes to vary any term of a secure tenancy which restricts his use or enjoyment of the dwelling-house, on the ground that—

(i) by reason of changes in the character of the dwelling-house or of the neighbourhood or other circumstances which the sheriff may deem material, the term is or has become unreasonable or inappropriate ; or

(ii) the term is unduly burdensome compared with any benefit which would result from its performance ; or

(iii) the existence of the term impedes some reasonable use of the dwelling-house,

but the landlord refuses or fails to agree the variation,

(4) In proceedings under subsection (3) above, the sheriff may make such order varying any term of the tenancy (other than a term relating to the amount of rent or of any other charge payable by the tenant) as he thinks it reasonable to make in all the circumstances, having particular regard to the safety of any person and to any likelihood of damage to the dwelling-house or to any premises of which it forms part, including if the sheriff thinks fit an order that the tenant shall pay to the landlord such sum as the sheriff thinks just to compensate him for any patrimonial loss occasioned by the variation; and such an order shall not have the effect of terminating the tenancy.

(5) At any time before he grants an order in proceedings under subsection (3)(b) above the sheriff may order the tenant to serve a copy of his application on any person who, in the capacity of owner or tenant of any land.—

(a) appears to the sheriff to benefit from the term of which variation is sought; or

(b) appears to him to be adversely affected by the proposed variation.

(6) An agreement under subsection (1)(a) above shall be in writing which is probative or holograph of the parties, and it shall be the duty of the landlord to draw up the said writing and to ensure that it is duly executed.

(7) Section 62 of the Housing (Scotland) Act 1969 shall be amended as follows—

(a) in subsection (1), for " (2) and (3)" substitute " (2), (3) and (8) " ;

(b) in the same subsection, after the first "rent", insert " or any other charge " ; and

(8) This section does not apply in relation to a tenancy which is a secure tenancy within the meaning of section 10 of the Tenants' Rights, Etc. (Scotland) Act 1980.

Abandonment of secure tenancy

Rights of landlord where secure tenancy appears to have been abandoned

18

(1) This section shall have effect where a landlord under a secure tenancy has reasonable grounds for believing that—

(a) the dwelling-house is unoccupied; and

(b) the tenant does not intend to occupy it as his home.

(2) The landlord shall be entitled to enter the dwelling-house at any time, for the purpose of securing the dwelling-house and any fittings, fixtures or furniture against vandalism.

(3) For the purposes of subsection (2) above the landlord and its servants or agents may open, by force if necessary, doors and lockfast places.

(4) The landlord may take possession of the dwelling-house in accordance with section 19 of this Act.

Re-possession

19

(1) A landlord wishing to take possession of a dwelling-house under section 18(4) of this Act shall serve on the tenant a notice—

(a) stating that the landlord has reason to believe that the dwelling-house is unoccupied and that the tenant does not intend to occupy it as his home;

(b) requiring the tenant to inform the landlord in writing within 4 weeks of service of the notice if he intends to occupy the dwelling-house as his home; and

(c) informing the tenant that, if it appears to the landlord at the end of the said period of 4 weeks that the tenant does not intend so to occupy the dwelling-house, the secure tenancy will be terminated forth' with.

(2) Where the landlord has—

(a) served on the tenant a notice which complies with subsection (1) above; and

(b) made such inquiries as may be necessary to satisfy the landlord that the dwelling-house is unoccupied and that the tenant does not intend to occupy it as his home,

and at the end of the period of 4 weeks mentioned in the said subsection (1) is so satisfied, it may serve a further notice on the tenant bringing the tenancy to an end forthwith.

(3) Where a tenancy has been terminated in accordance with this section the landlord shall be entitled to take possession of the dwelling-house forthwith without any further proceedings.

(4) The Secretary of State may by order made by statutory instrument make provision for the landlord to secure the safe custody and delivery to the tenant of any property which is found in a dwelling-house to which this section applies; and in particular—

(a) for requiring charges to be paid in respect of such property before it is delivered to the tenant; and

(b) for authorising the disposal of such property, if the tenant has not arranged for its delivery to him before the expiry of such period as the order may specify and the application of any proceeds towards any costs incurred by the landlord and any rent due but unpaid by the tenant to the landlord.

Tenant's right of recourse to sheriff

20

(1) A tenant under a secure tenancy who is aggrieved by termination of the tenancy by the landlord under section 19(2) of this Act may raise proceedings by summary application within 6 months after the date of the said termination in the sheriff court of the district in which the dwelling-house is situated.

(2) Where in proceedings under this section it appears to the sheriff that—

(a) the landlord has failed to comply with any provision of section 19 of this Act; or

(b) the landlord did not have reasonable grounds for finding that the dwelling-house was unoccupied, or did not have reasonable grounds for finding that the tenant did not intend to occupy it as his home; or

(c) the landlord was in error in finding that the tenant did not intend to occupy the dwelling-house as his home, and the tenant had reasonable cause, by reason of illness or otherwise, for failing to notify the landlord of his intention so to occupy it,

he shall—

(i) where the dwelling-house has not been let to a new tenant, make an order that the secure tenancy shall continue; or

(ii) in any other case, direct the landlord to make other suitable accommodation available to the tenant.

(3) Part II of Schedule 2 to this Act shall have effect to determine whether accommodation is suitable for the purposes of subsection (2)(ii) above.

Subletting

21

(1) It shall be a term of every secure tenancy that the tenant shall not assign, sublet or otherwise give up to another person possession of the dwelling-house or any part thereof or take in a lodger except with the consent in writing of the landlord, which shall not be unreasonably withheld.

(2) The landlord may refuse consent under this section if it appears to it that a payment other than—

(a) a rent which is in its opinion a reasonable rent; or

(b) a deposit returnable at the termination of the assignation, sublet or other transaction given as security for the subtenant's obligations for accounts for supplies of gas, electricity, telephone or other domestic supplies and for damage to the dwelling-house or contents, which in its opinion is reasonable,

has been or is to be received by the tenant in consideration of the assignation, subletting or other transaction.

(3) This section shall not apply to any assignation, subletting or other transaction entered into before the commencement of this section provided that the consent of the landlord to the transaction and to the rent which is being charged has been obtained.

(4) An assignation, subletting or other transaction to which this section applies shall not be a protected tenancy or a statutory tenancy within the meaning of the Rent (Scotland) Act 1971, nor shall Part VII of that Act apply to such an assignation, sublet or other transaction.

(5) Section 151(6) of the Housing (Scotland) Act 1966 is repealed.

(6) In this section and in section 22 of this Act " subtenant" means a person entitled to possession of a dwelling-house or any part thereof under an assignation, subletting or other transaction to which this section applies, and includes a lodger.

(7) The provisions of Schedule 3 to this Act shall have effect as terms of every secure tenancy.

Rent payable by subtenants

22

(a) Where a landlord under a secure tenancy has given consent to an assignation, subletting or other transaction under section 21 of this Act, this section shall apply to the rent payable by the subtenant at the commencement of the assignation, subletting or other transaction;

(b) where, before the commencement of this Act, a landlord under a tenancy which has become a secure tenancy by virtue of this Act gave consent to an assignation, sublet or other transaction under section 151(6) of the Housing (Scotland) Act 1966, this section shall apply to the latest rent payable by the subtenant before the commencement of this Act provided that it is a reasonable rent within the meaning of paragraph (b) of the said section 151(6).

(2) It shall be a term of every secure tenancy—

(a) that the tenant shall notify the landlord of any proposed increase in a rent to which this section applies; and

(b) that no increase shall be made in a rent to which this section applies if the landlord objects.

Alterations etc. to dwelling-house

23

(1) It shall be a term of every secure tenancy that the tenant shall not carry out work, other than interior decoration, in relation to the dwelling-house without the consent in writing of the landlord, which shall not be unreasonably withheld.

(2) In this section and in Schedule 4 to this Act " work " means—

(a) alteration, improvement or enlargement of the dwelling house or of any fittings or fixtures ;

(b) addition of new fittings or fixtures ;

but does not include repairs or maintenance of any of these.

(3) The provisions of Schedule 4 to this Act shall have effect as terms of every secure tenancy.

Reimbursement of cost of work

24

(1) On the termination of a secure tenancy, the landlord shall have the power (in addition to any other power which it has to make such payments) to make any payment to the tenant which it considers to be appropriate in respect of any work carried out by him (or by any predecessor of his as tenant under the same secure tenancy) before the commencement of section 23 of this Act or with the consent of the landlord which has materially added to the price which the dwelling-house might be expected to fetch if sold on the open market.

(2) The amount of any payment under subsection (1) above shall not exceed the cost of the work in respect of which it is made, after deduction of the amount of any grant paid or payable under Part I of the Housing (Scotland) Act 1974.

(3) Where a secure tenancy has been terminated (under section 12(1)(a) of this Act) by the death of the tenant, a payment under subsection (1) above may be made to the tenant's personal representatives.

Effect of works on rent

25

No account shall be taken at any time in the assessment of rent to be payable under a secure tenancy by a tenant who has carried out work on the dwelling-house or by a person who has succeeded him in the tenancy or by the spouse of such a person of any improvement in the value or amenities of the dwelling-house resulting from the work carried out by the tenant.

PART III — Miscellaneous Matters Relating to Public Sector Housing Authorities

Allocation

Restriction on residential requirements

26

(1) In considering whether an applicant for local authority housing is entitled to be admitted to a housing list, an islands or district council shall take no account of the age of the applicant provided that he is over the age of 18 years.

(2) In the allocation of local authority housing, an islands or district council shall take no account of the length of time for which an applicant has resided in its area nor of the age of the applicant provided that he is over the age of 18 years, nor of the income of the applicant and his family.

(3) Where an applicant—

(a) is employed in the area of the local authority; or

(b) has been offered employment in the area of the local authority; or

(c) wishes to move into the area of the local authority and the local authority is satisfied that his purpose in doing so is to seek employment; or

(d) is over 60 years of age and wishes to move into the area of the local authority to be near a younger relative ; or

(e) has special social or medical reasons for requiring to be housed within the area of the local authority,

admission to a housing list shall not depend on the fact that the applicant is resident in the area.

(4) Where a local authority has rules which give priority to applicants on its housing list it shall apply those rules to an applicant to whom subsection (3) above applies no less favourably than it applies them to a tenant of the local authority whose housing needs are similar to those of the applicant and who is seeking a transfer to another dwelling-house belonging to the local authority.

(5) In the allocation of local authority housing, an islands or district council shall not impose a requirement that an application must have remained in force for a minimum period before the applicant is eligible for the allocation of housing.

(6) In considering an application for admission to a housing list and in the allocation of local authority housing an islands or district council shall take no account of any outstanding liability (for payment of rent or otherwise) attributable to the tenancy of any dwelling-house of which the applicant is not, and was not when the liability accrued, a tenant.

(7) In this section and in section 27 of this Act " housing list" means a list of applicants for local authority housing which is kept by an islands or district council in connection with allocation of housing.

Publication of rules

27

(1) It shall be the duty of every islands and district council, the Scottish Special Housing Association and Development Corporations established under an order made, or having effect as if made, under the New Towns (Scotland) Act 1968, to publish in accordance with subsection (2) below, within 6 months of the commencement of this section and within 6 months of any alteration of the rules any rules which it may have governing—

(a) admission of applicants to any housing list;

(b) priority of allocation of dwelling-houses ;

(d) exchanges of dwelling-houses.

(2) The rules to be published by a body in accordance with subsection (1) above shall be—

(a) available for perusal; and

(b) on sale at a reasonable price ; and

at all reasonable times at its principal offices and its housing department offices.

(3) An applicant for housing provided by a body mentioned in subsection (1) above shall be entitled on request to inspect any record kept by that body of information furnished by him to it in connection with his application.

Abolition of reserve powers to limit rents

Repeal of provisions of Housing Rents and Subsidies (Scotland) Act 1975

28

(1) Section 1(5) of the Housing Rents and Subsidies (Scotland) Act 1975 (no provision to be made for surplus in housing revenue account) is repealed.

(2) For sub-paragraph 11(1) of Schedule 4 to the Housing (Financial Provisions) (Scotland) Act 1972 there shall be substituted the following sub-paragraph—

(11) (1) if at any time a credit balance is shown in the housing revenue account, the whole or part of it may be made available for any purpose for which the general fund of the local authority maintained under section 93 of the Local Government (Scotland) Act 1973 may lawfully be applied.

(3) Section 2 of the Housing Rents and Subsidies (Scotland) Act 1975 (reserve powers to limit rents) is repealed.

Home loans

Amendments relating to home loans by local authorities

29

(1) Section 49 of the Housing (Financial Provisions) (Scotland) Act 1968 shall be amended as follows—

(a) in subsection (1), the words " subject to such conditions as may be approved by the Secretary of State " are repealed; and

(b) after subsection (1) insert a new subsection as follows—

(1A) In determining whether to advance money under subsection (1) above, the local authority shall have regard to any advice which may be given from time to time by the Secretary of State.

(2) In section 24 of the Housing (Scotland) Act 1974 there shall be substituted for subsection (6) the following subsection—

(6) The rate of interest payable on a loan under this section shall be a variable rate calculated under section 30 of the Tenants' Rights, Etc. (Scotland) Act 1980.

Local authority home loan interest rates

30

(1) Subject to subsections (2) and (3) below, from the commencement of this section—

(a) any advance of money under a power conferred by section 49 of the Housing (Financial Provisions) (Scotland) Act 1968 (advances to increase housing accommodation), or under any other power to make loans for the like purposes ; and

(b) any sum secured under any arrangement by which the price or part of the price of a dwelling-house sold by an islands or district council is secured by a standard security; and

(c) any sum secured under any security which is taken over by an islands or district council under a power conferred by section 31 of this Act (local authority indemnities for building societies etc.),

is a variable interest home loan for the purposes of this section.

(2) This section does not apply to an advance made before the commencement of this section, or to a sum secured in respect of the price of a dwelling-house agreed to be sold before the said commencement, or (where paragraph 1(c) above applies) to a security granted before the said commencement.

(3) This section shall not apply to an advance made in implement of a contract constituted by an offer of advance made before the commencement of this section and an unqualified acceptance of the said offer after the said commencement.

(4) Islands and district councils shall, in respect of their variable interest home loans, charge a rate of interest which shall be equal to whichever is the higher of the following—

(a) the standard rate for the time being, as declared by the Secretary of State in accordance with subsection (5) below;

(b) the locally determined rate calculated in accordance with subsection (6) below.

(5) In considering what rate to declare as the standard rate for the purposes of subsection (4) above, the Secretary of State shall take into account interest rates charged by building societies in the United Kingdom and any movement in those rates, and the standard rate shall be effective from the date when it is declared by the Secretary of State.

(6) The locally determined rate for the purposes of this section shall be the rate which is necessary to service loan charges (within the meaning of the Housing (Financial Provisions) (Scotland) Act 1968) on money which is to be applied to making variable interest home loans during the relevant period of six months (referred to in subsection (7) below), together with the addition of one quarter per cent, to cover the administrative cost of making and managing variable interest home loans.

(7) The locally determined rate, for the purposes of this section, shall be determined by each islands or district council for the period of 6 months—

(a) beginning at the commencement of this section ; and

(b) thereafter, beginning immediately after the expiry of every previous period,

not less than one month before the beginning of the relevant period.

(8) Where, by reason of the declaration of a new standard rate or, as the case may be, of a new locally determined rate, the rate of interest being charged by an islands or district council in respect of its variable interest home loans no longer complies with this section, it shall, within 2 months of the said declaration, serve on all borrowers of variable interest home loans a notice which shall, as from one month after the service of the said notice—

(a) vary the rate of interest payable by the borrower ; and

(b) where as the result of the variation, the amount outstanding under the advance or security would increase if the periodic repayments were not increased, increase the amount of the periodic repayments to such an amount as will ensure that the said outstanding amount will not increase.

(9) Notwithstanding anything contained in subsections (1) to (8) above, but subject to subsections (11) and (12) below, the Secretary of State may, where he considers that the interest rate charged by an islands or district council does not satisfy the requirements of subsection (4) above, direct an islands or district council—

(a) to charge an interest rate specified in the direction; and

(b) to vary the rate in accordance with the provisions of subsection (8) above.

(10) Nothing in this section shall affect the operation of section 1(4)(b) of the Home Purchase Assistance and Housing Corporation Guarantee Act 1978 (under which a part of certain loans may be free of interest for up to 5 years).

(11) Notwithstanding any other provision of this section, an islands or district council may, where the conditions set out in subsection (12) below are satisfied, give assistance to a person acquiring a house in need of repair or improvement by making provision for waiving or reducing, for a period ending not later than five years after the date of an advance of money of the kind mentioned in subsection (1)(a) above or of the granting of a security under an arrangement of the kind mentioned in subsection (1)(b) above, the interest payable on the sum advanced or remaining outstanding under the security, as the case may be.

(12) The conditions mentioned in subsection (11) above are that—

(a) the assistance is given in accordance with a scheme which has been approved by the Secretary of State or which conforms with such requirements as may be specified by the Secretary of State by order made by statutory instrument with the consent of the Treasury ; and

(b) the person acquiring the house has entered into an agreement with the local authority to carry out, within a period specified in the agreement, works of repair or improvement therein specified.

Local authority and Housing Corporation indemnities for building societies etc.

31

(1) An islands or district council or the Housing Corporation may, with the approval of the Secretary of State, enter into an agreement with a building society (within the meaning of the Building Societies Act 1962 or the Building Societies Act (Northern Ireland) 1967) under which the council or, as the case may be, the Housing Corporation binds itself to indemnify the building society in respect of—

(a) the whole or part of any outstanding indebtedness of a borrower ; and

(b) loss or expense to the building society resulting from the failure of the borrower duly to perform any obligation imposed on him by the standard security.

(2) The agreement may also, where the borrower is made party to it, enable or require the council, or as the case may be, the Housing Corporation in specified circumstances to take an assignation of the rights and liabilities of the building society under the standard security.

(3) Approval of the Secretary of State under subsection (1) above may be given generally in relation to agreements which satisfy specified requirements, or in relation to individual agreements, and with or without conditions, as he thinks fit, and such approval may be withdrawn at any time on one month's notice.

(4) Before issuing any general approval under subsection (1) above the Secretary of State shall consult with such bodies as appear to him to be representative of islands and district councils, and of building societies, and also with the Housing Corporation and with the Chief Registrar of Friendly Societies.

(5) Section 16(3) and (5) of the Restrictive Trade Practices Act 1976 (recommendations by services supply association to members) shall not apply to recommendations made to building societies about the making of agreements under this section provided that the recommendations are made with the approval of the Secretary of State.

(6) Section 50 of the Housing (Financial Provisions) (Scotland) Act 1968 is repealed.

(7) Schedule 3 to the Building Societies Act 1962 shall be amended as follows—

(a) in paragraph 3(2)(b), after " Scotland " insert the words

and section 31 of the Tenants' Rights, Etc. (Scotland) Act 1980

; and

(b) at the end add the following paragraph—

(15) An agreement under section 31 of the Tenants' Rights, Etc. (Scotland) Act 1980 (agreement by local authority or the Housing Corporation to indemnify building society in respect of borrower's default).

(8) Schedule 3 to the Building Societies Act (Northern Ireland) 1967 shall be amended as follows—

(a) in paragraph 3(2)(c) after " Scotland " insert " section 31 of the Tenants' Rights, Etc. (Scotland) Act 1980, " ; and

(b) at the end add the following paragraph—

(15) An agreement under section 31 of the Tenants' Rights, Etc. (Scotland) Act 1980 (local authority indemnities for building societies, etc.) " Exchequer contributions in respect of expenditure on amenities..

Variation of exchequer contribution

32

In section 59(3) of the Housing (Scotland) Act 1969 for the words from " one-half " to the end there shall be substituted the words " such percentage of the expenditure approved for the purposes of this section as the Secretary of State shall, with the consent of the Treasury, prescribe by order made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the Commons House of Parliament. "

PART IV — Provisions Relating to Private Sector Tenancies

Interpretation

Interpretation of Part IV

33

(1) In this Part of this Act—

" the 1971 Act" means the Rent (Scotland) Act 1971;

"the 1972 Act" means the Housing (Financial Provisions) (Scotland) Act 1972;

" the 1975 Act" means the Housing Rents and Subsidies (Scotland) Act 1975 ; and

" short tenancy " has the meaning assigned to it in section 34 of this Act.

(2) This Part of this Act shall be construed along with the Rent (Scotland) Acts 1971 to 1975.

Short tenancies

34

(1) A protected tenancy (within the meaning of section 1 of the 1971 Act) created after the commencement of this Act is a short tenancy for the purposes of this Part of this Act where—

(a) immediately before the creation of the tenancy the tenant was not a protected or statutory tenant of the dwelling-house, except where he was then a tenant under a short tenancy or a statutory tenant following on the expiry of a short tenancy ;

(b) the tenancy is for a period specified in the tenancy agreement of not less than one year nor more than 5 years;

(c) the tenancy agreement does not contain any provision whereby the landlord may terminate the tenancy before the expiry of the said specified period other than for non-payment of rent or for breach of any other obligation of the tenancy;

(d) before the creation of the tenancy the landlord has served on the tenant notice in writing informing him that the tenancy will be a short tenancy for the purposes of this Part of this Act; and

(e) either—

(i) there is, at the commencement of the tenancy, a rent registered for the dwelling-house which is the subject of the tenancy in the register of rents kept for the purposes of Part IV of the 1971 Act, or

(ii) the landlord has applied for and been granted a certificate of fair rent under section 41 of the 1971 Act and has, within 14 days after the commencement of the tenancy, made an application for that fair rent to be registered under subsection (4) of that section.

(2) Where a short tenancy has been created in a case to which sub-paragraph (e)(ii) of subsection (1) above applies, the application referred to in that sub-paragraph may not be withdrawn and, notwithstanding the provisions of section 44(1) and (4) of the 1971 Act, the rent registered for the dwelling-house shall take effect from the commencement of the tenancy.

(3) The Secretary of State may by order made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament dispense with the requirements of subsection (1)(e) above in relation to any registration area within the meaning of section 37 of the 1971 Act.

(4) The Secretary of State may by order made by statutory instrument prescribe the form of notice required under subsection (1)(d) above.

Effect of tenancy being short tenancy

35

(1) At the expiry of the period of a short tenancy as specified in the tenancy agreement, the landlord shall, subject to section 36 of this Act, be entitled to recover possession of the dwelling-house.

(2) The tenant under a short tenancy may terminate it by giving to the landlord—

(a) where the period of the tenancy specified in the tenancy agreement is 2 years or less, one month's notice ;

(b) in any other case, 3 months' notice.

(3) Notwithstanding anything contained in any enactment or rule of law, but subject to subsection (5) below, a landlord under a short tenancy who becomes entitled to recover possession of the dwelling-house which is the subject of the short tenancy shall be entitled to enforce his right to recover possession against any assignee or sub-tenant or against any statutory tenant who has succeeded to the tenancy.

(4) Notwithstanding anything contained in the tenancy agreement, a tenant under a short tenancy shall not be liable to pay to the landlord on termination of the tenancy any sum greater than the outstanding rent (if any) together with any sum due by the tenant to the landlord in respect of damage to the dwelling-house or its contents or in respect of any household accounts incurred by the tenant for which the landlord is or has become responsible.

(a) Where a short tenancy is terminated by the death of the tenant before the expiry of the period specified in the tenancy agreement any statutory tenant by succession within the meaning of Schedule 1 to the Rent (Scotland) Act 1971 shall be entitled to retain possession of the premises until the expiry of that period only.

(b) Where a short tenancy is terminated for any reason before the expiry of the period specified in the tenancy agreement, any subtenant of the dwelling-house shall be entitled to retain possession of the premises until the expiry of that period only.

(6) For the purposes of subsection (5) above " subtenant" means any person deriving title from the original tenant or from a subtenant, provided that his title has not been granted in contravention of the tenancy agreement.

Conditions applying to landlord's right to recovery of possession

36

(1) A landlord under a short tenancy who seeks recovery of possession of the dwelling-house on or after termination of the tenancy, subject to subsection (2) below, may recover possession of the dwelling-house in accordance with Case 11D of Schedule 3 to the 1971 Act.

(2) A landlord who at any time seeks an order under the said Case 11D shall, either before or not later than 3 months after the expiry of the period specified in the tenancy agreement, or, in a case to which subsection (4) below applies, not later than 3 months after the expiry of any period of 12 months for which the tenancy is continued under that subsection, serve on the tenant a notice in writing of his intention to apply for the order, and the relative application shall be made not less than 3 nor more than 6 months after service of the said notice.

(3) In Part II of Schedule 3 to the 1971 Act (cases in which the court must order possession of a dwelling-house subject to a regulated tenancy) the following Case shall be inserted after Case 11C—

Case 11D Where— the dwelling-house was let on a short tenancy within the meaning of section 34 of the Tenants' Rights, Etc. (Scotland) Act 1980 ; or in the opinion of the Court it is just and equitable that the tenancy should be treated as a short tenancy within the meaning of the said section 34, notwithstanding that a requirement of subsection (1)(d) or (e) of that section has not been complied with, and the short tenancy has terminated: Provided that, where a further tenancy has been created by agreement between the landlord and the tenant no application for an order for possession under this Case shall be made before the end of the period of that tenancy.

(4) Where a landlord fails timeously to serve a notice in compliance with subsection (2) above, the tenancy shall be continued as a short tenancy for a period of 12 months beginning with the expiry of the period specified in the tenancy agreement or with the expiry of any period of 12 months for which the tenancy is continued under this subsection.

Limits on rent increases

37

(1) Subject to subsection (5) below, sections 7 to 9 of the 1975 Act and Schedule 2 to that Act are repealed.

(2) The Secretary of State shall by order make the following provision in relation to regulated tenancies in respect of which there are registered rents which are registered after the commencement of this section under Part IV Of the 1971 Act, that is to say he shall—

(a) specify the maximum amount by which the total of the rent payable under a tenancy to which this subsection applies in any period of 12 months beginning with the relevant date for the purposes of sections 40 and 41 of that Act or with any subsequent anniversary of that date may be increased ;

(b) restrict the total additional rental income which may be recovered by a landlord under such a tenancy in any period of 12 months beginning with the relevant date for the purposes of sections 40 and 41 of that Act or with any subsequent anniversary of that date to such amount as is specified in the order.

(3) An order made under subsection (2) above shall be made by statutory instrument subject to annulment in pursuance of a resolution by either House of Parliament, and may contain such supplementary and incidental provisions as the Secretary of State thinks fit.

(4) For the purposes of subsection (2) above " rent" and " rental income" do not include sums paid to the landlord in respect of the provision of any services.

(5) Where a rent registered for a dwelling-house under a regulated tenancy under Part IV of the 1971 Act was registered before the commencement of this section, but the full registered rent has not yet become payable by reason of the operation of section 7 of the 1975 Act, the said section 7 and Schedule 2 shall continue to have effect so as to allow increase of rent to take place under the said section 7.

(6) The 1971 Act shall be amended in sections 19(2), 21(2)(b), 31(1), 31(4), and 43(3)(a) by substituting for every reference to any of sections 7 to 9 of the 1975 Act a reference to section 37 of the Tenants' Rights, Etc. (Scotland) Act 1980.

(7) In Schedule 6 to the 1971 Act (applications for registrations of rents) in paragraph 15 after the word " 1975 " there shall be inserted the words " or of an order made under section 37 of the Tenants' Rights, Etc. (Scotland) Act 1980 " .

Amendments to provisions relating to rent limits for dwelling-houses let by housing associations and the Housing Corporation

38

(1) Section 42(3)(bb) of the 1972 Act shall be amended by substituting for the words from " the rent " to the end the words " may be limited under section 37 of the Tenants' Rights, Etc. (Scotland) Act 1980 ".

(2) Section 60(b) of the 1972 Act shall be amended by inserting after " for " the words "section 1(1)(a) or";

(3) Section 61(2) of the 1972 Act shall be amended by inserting after " thereof) " the words " , section 44(2) ".

Reserve and Auxiliary Forces (Protection of Civil Interests)

Amendment of Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951

39

(1) The Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951 shall be amended in accordance with this section.

(2) In section 15 (protection of tenure of certain premises), after subsection (1) insert the following subsection—

(1A) This section does not apply in relation to any tenancy entered into after the commencement of section 55 of the Tenants' Rights, Etc. (Scotland) Act 1980.

(3) In section 16 (protection of tenure of premises not falling under section 15)—

(i) in subsection (2)(c) the words from " and " to the end are repealed;

(ii) for subsections (3) to (8) substitute the following sub-sections—

(3) The rent for any rental period (that is to say, a period in respect of which an instalment of rent falls to be paid) shall be the amount payable for the last rental period before the end of the tenancy, but subject to adjustment from time to time in accordance with section 22 or 23 of the Rent (Scotland) Act 1971 (adjustment, with respect to rates, services and furniture, of recoverable rent for statutory periods before registration). (4) Subsection (3) above has effect subject to any agreement between the parties for the payment of a lower rent; and where a lower rent is agreed it shall not be increased in accordance with the said section 22 or 23 but may, notwithstanding anything in any other enactment, be increased by agreement in writing between the parties up to an amount not exceeding the amount of rent provided for in subsection (3) above.

(4) In section 17(2)(b) (provisions supplementary to section 16 where the accommodation is shared other than with the landlord) for " (5) to (8) " substitute " (3) and (4) " .

(5) In section 18(2) (protection of tenure in connection with employment, under a licence or a rent-free letting) for " (5) to (8) " substitute " (3) and (4) " .

(6) Section 19(5) (limitation on application of Rent Acts-heritable securities) is repealed.

Crown Tenants of Crown Estate Commissioners etc.

Extension of Rent (Scotland) Act 1971 to Crown tenants of Crown Estate Commissioners etc.

40

(1) Section 4 of the 1971 Act shall be amended as follows—

(a) in subsection (1)—

(i) before "A tenancy" insert " Subject to subsection (3) below " ; and

(ii) the words " or of the Duchy of Lancaster; or to the Duchy of Cornwall " are repealed ;

(b) after subsection (2) add a new subsection—

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Tenants’ Rights, Etc. (Scotland) Act 1980

PART I — Rights of Public Sector Tenants to Purchase the Dwelling-houses which they Occupy

Secure tenant's right to purchase

1

Procedure

2

Refusal of applications

3

Conditions of sale

4

Loans

5

Recovery of discount on early re-sale

6

Duties of landlords

7

Removal of restrictions on powers of local authorities to sell houses

8

Removal of restrictions on powers of registered housing associations to sell houses

9

PART II — Rights of Public Sector Tenants to Security of Tenure Etc

Security of tenure

Secure tenancies

10

Special provision for housing associations

11

Security of tenure

12

Succession to secure tenancy

13

Proceedings for possession

14

Powers of sheriff in proceedings

15

Leases

Tenant's right to written lease

16

Variation of terms of secure tenancies

17

Abandonment of secure tenancy

Rights of landlord where secure tenancy appears to have been abandoned

18

Re-possession

19

Tenant's right of recourse to sheriff

20

Subletting

Subletting

21

Rent payable by subtenants

22

Alterations etc. to dwelling-house

Landlord's consent to work

23

Reimbursement of cost of work

24

Effect of works on rent

25

PART III — Miscellaneous Matters Relating to Public Sector Housing Authorities

Allocation

Restriction on residential requirements

26

Publication of rules

27

Abolition of reserve powers to limit rents

Repeal of provisions of Housing Rents and Subsidies (Scotland) Act 1975

28

Home loans

Amendments relating to home loans by local authorities

29

Local authority home loan interest rates

30

Local authority and Housing Corporation indemnities for building societies etc.

31

Variation of exchequer contribution

32

PART IV — Provisions Relating to Private Sector Tenancies

Interpretation

Interpretation of Part IV

33