Housing and Building Control Act 1984

PART I — Disposal of Public Sector Dwelling-Houses and Rights of Secure Tenants

Right to buy

Extension to certain cases where landlord does not own freehold.

1

• (1) The provisions of this section and of Schedule 1 to this Act shall have effect for the purpose of extending the right to buy conferred by Chapter I of Part I of the Housing Act 1980 (in this Part of this Act referred to as “the 1980 Act”) to certain cases where the landlord does not own the freehold of the dwelling-house.

• (2) In section 1(1) of the 1980 Act (right to acquire freehold or long lease) for paragraphs (a) and (b) there shall be substituted the following paragraphs—

(a) if the dwelling-house is a house and the landlord owns the freehold, to acquire the freehold of the dwelling-house; (b) if the landlord does not own the freehold or (whether or not the landlord owns it) the dwelling-house is a flat, to be granted a lease of the dwelling-house; and

.

• (3) At the end of section 2(3) of the 1980 Act (exceptions to right to buy) there shall be inserted the words

or has an interest sufficient to grant a lease in pursuance of this Chapter— (a) where the dwelling-house is a house, for a term exceeding 21 years commencing with the relevant time; (b) where the dwelling-house is a flat, for a term of not less than 50 years commencing with that time.

• (4) The amendments made by this section and Schedule 1 to this Act (except paragraph 10) shall not apply where the landlord’s notice under section 5(1) of the 1980 Act was served before the commencement date.

Variation of circumstances in which right does not arise.

2

• (1) Subsection (5) of section 2 of the 1980 Act (exceptions to the right to buy) shall be omitted and for paragraphs 1 and 2 of Part I of Schedule 1 to that Act (circumstances in which the right to buy does not arise) there shall be substituted the following paragraph—

(1) (1) The dwelling-house either forms part of, or is within the curtilage of, a building to which sub-paragraph (2) below applies or is situated in a cemetery and (in either case) the dwelling-house was let to the tenant or to a predecessor in title of his in consequence of the tenant or predecessor being in the employment of the landlord or of a body specified in sub-paragraph (3) below. (2) This sub-paragraph applies to a building if the building or so much of it as is held by the landlord— (a) is held mainly for purposes other than housing purposes; and (b) consists mainly of accommodation other than housing accommodation; and in this sub-paragraph ' housing purposes ' means the purposes for which dwelling-houses are held by local authorities under Part V of the 1957 Act or purposes corresponding to those purposes. (3) The bodies referred to in sub-paragraph (1) above are— (a) a local authority; (b) a development corporation; (c) an urban development corporation within the meaning of Part XVI of the Local Government, Planning and Land Act 1980 (d) the Commission for the New Towns; (e) a county council; (f) the governors of an aided school; and (g) the Development Board for Rural Wales.

• (2) For paragraphs 3 and 4 of that Part of that Schedule there shall be substituted the following paragraphs—

(3) The dwelling-house has features which are substantially different from those of ordinary dwelling-houses and which are designed to make it suitable for occupation by physically disabled persons and either— (a) the dwelling-house has had those features since it was constructed or, where it was provided by means of the conversion of a building, since it was so provided; or (b) the dwelling-house is one of a group of dwelling-houses which it is the practice of the landlord to let for occupation by physically disabled persons and a social service or special facilities are provided in close proximity to the group of dwelling-houses wholly or partly for the purpose of assisting those persons. (3A) The landlord or a predecessor of the landlord has carried out, for the purpose of making the dwelling-house suitable for occupation by physically disabled persons, one or more of the following alterations, namely— (a) the provision of not less than 7\5 square metres of additional floor space; (b) the provision of an additional bathroom or shower-room; (c) the installation of a vertical lift. (3B) The dwelling-house is one of a group of dwelling-houses which it is the practice of the landlord to let for occupation by persons who are suffering or have suffered from a mental disorder (within the meaning of the Mental Health Act 1983) and a social service or special facilities are provided wholly or partly for the purpose of assisting those persons. (4) The dwelling-house is one of a group of dwelling-houses which are particularly suitable, having regard to their location, size, design, heating systems and other features, for occupation by persons of pensionable age and which it is the practice of the landlord to let for occupation by such persons, or for occupation by such persons and physically disabled persons, and special facilities are provided wholly or mainly for the purpose of assisting those persons which consist of or include either— (a) the services of a resident warden; or (b) the services of a non-resident warden, a system for calling him and the use of a common room in close proximity to the group of dwelling-houses.

• (3) For paragraph 5 of that Part of that Schedule there shall be substituted the following paragraph—

(5) (1) The Secretary of State has determined, on the application of the landlord, that the right to buy is not to be capable of being exercised with respect to the dwelling-house; and he shall so determine if, and only if, he is satisfied that the dwelling-house— (a) is particularly suitable, having regard to its location, size, design, heating system and other features, for occupation by persons of pensionable age; and (b) was let to the tenant or to a predecessor in title of his for occupation by a person of pensionable age or a physically disabled person (whether the tenant or predecessor or any other person). (2) An application for a determination under this paragraph shall be made within four weeks or, in a case falling within section 5(2) of this Act, eight weeks of the service of the notice claiming to exercise the right to buy.

• (4) The amendments made by subsections (1) and (3) above shall not apply where the tenant’s claim to exercise the right to buy was made before the commencement date; and the amendment made by subsection (2) above shall not apply where the landlord’s notice under section 5(1) of the 1980 Act was served before that date.

Further periods to count for qualification and discount.

3

• (1) For subsections (3) to (7) of section 1 of the 1980 Act (determination of qualifying period) there shall be substituted the following subsections—

(3) The right to buy does not arise unless the period which, in accordance with Part I of Schedule 1A to this Act, is to be taken into account for the purposes of this subsection is a period of not less than two years. (4) Where the secure tenancy is a joint tenancy the condition in subsection (3) above need be satisfied with respect to one only of the joint tenants.

• (2) For subsection (1) of section 7 of the 1980 Act (discount) there shall be substituted the following subsections—

(1) A person exercising the right to buy is entitled to a discount equal, subject to the following provisions of this section, to the following persentage of the price before discount, that is to say— (a) if the period which, in accordance with Part I of Schedule 1A to this Act, is to be taken into account for the purposes of discount is less than three years, 32 per cent.; and (b) if that period is three years or more, 32 per cent. plus one per cent. for each complete year by which that period exceeds two years, but not together exceeding 60 per cent.; and where joint tenants exercise the right to buy, that Part of that Schedule shall be construed as if for the secure tenant there were substituted that one of the joint tenants whose substitution will produce the largest discount. (1A) There shall be deducted from the discount any amount which, in accordance with Part II of Schedule 1A to this Act, falls to be so deducted.

• (3) In subsection (2) of that section after the words “31st March 1974” there shall be inserted the words “(or such later date as may be specified in an order made by the Secretary of State)”.

• (4) Subsections (5) to (11) of that section and section 15 of that Act (children succeeding parents) shall be omitted.

• (5) After Schedule 1 to the 1980 Act there shall be inserted, as Schedule 1A, the Schedule set out in Schedule 2 to this Act.

• (6) The amendments made by this section shall not apply—

• (a) for the purposes of section 1(3) of the 1980 Act where the landlord’s notice under section 5(1) of that Act was served before the commencement date; or

• (b) for the purposes of discount where the notice under section 10(1) of that Act was served before that date.

Inclusion of land let with or used for purposes of dwelling-house.

4

• (1) For the avoidance of doubt it is hereby declared that in Chapter I of Part I of the 1980 Act “dwelling-house” has the meaning given by section 50(2) of that Act as extended by section 3(4) of that Act.

• (2) In subsection (2) of section 3 of the 1980 Act (land used for purposes of dwelling-house) after the words “by virtue of” there shall be inserted the words “subsection (4) below or”.

• (3) For subsection (4) of that section there shall be substituted the following subsections—

(4) There shall be treated as included in a dwelling-house any land which is or has been used for the purposes of the dwelling-house if— (a) the tenant, by a written notice served on the landlord at any time before he exercises the right to buy, requires the land to be included in the dwelling-house; and (b) it is reasonable in all the circumstances for the land to be so included. (4A) A notice under subsection (4) above may be withdrawn by a written notice served on the landlord at any time before the tenant exercises the right to buy.

• (4) Where, after the service of the notice under section 10(1) of the 1980 Act, a notice under section 3(4) of that Act is served or withdrawn, the parties shall, as soon as practicable after the service or withdrawal of that notice, take all such steps (whether by way of amending, withdrawing or re-serving any notice or extending any period or otherwise) as may be requisite for the purpose of securing that all parties are (as nearly as may be) in the same position as that in which they would have been if the notice under section 3(4) had been served or withdrawn before the service of the notice under section 10(1).

Repayment of discount on early disposal.

5

• (1) In subsection (1) of section 8 of the 1980 Act (repayment of discount on early disposal) for the words “disposal falling within subsection (3)” there shall be substituted the words “relevant disposal which is not exempted by subsection (3A)”.

• (2) For subsection (3) of that section there shall be substituted the following subsections—

(3) A disposal is a relevant disposal for the purposes of this section if it is— (a) a further conveyance of the freehold or an assignment of the lease; or (b) the grant of a lease or sub-lease for a term of more than twenty-one years otherwise than at a rack rent, whether the disposal is of the whole or part of the dwelling-house; and for the purposes of paragraph (b) above it shall be assumed that any option to renew or extend a lease or sub-lease, whether or not forming part of a series of options, is exercised, and that any option to terminate a lease or sub-lease is not exercised. (3A) A relevant disposal is exempted by this subsection if— (a) it is a disposal of the whole of the dwelling-house and a further conveyance of the freehold or an assignment of the lease and the person or each of the persons to whom it is made is a qualifying person; (b) it is a vesting of the whole of the dwelling-house in a person taking under a will or on an intestacy; (c) it is a disposal of the whole of the dwelling-house in pursuance of an order under section 24 of the Matrimonial Causes Act 1973 or section 2 of the Inheritance (Provision for Family and Dependants) Act 1975; (d) the property disposed of is acquired compulsorily or by a person who has made or would have made, or for whom another person has made or would have made, a compulsory purchase order authorising its compulsory purchase for the purposes for which it is acquired; or (e) the property disposed of is land included in the dwelling-house by virtue of section 3(4) or 50(2) of this Act. (3B) For the purposes of subsection (3A)(a) above a person is a qualifying person in relation to a disposal if he— (a) is the person or one of the persons by whom it is made; (b) is the spouse or a former spouse of that person or one of those persons; or (c) is a member of the family of that person or one of those persons and has resided with him throughout the period of twelve months ending with the disposal. (3C) Where there is a relevant disposal which is exempted by subsection (3A)(d) or (e) above— (a) the covenant required by subsection (1) above shall not be binding on the person to whom the disposal is made or any successor in title of his; and (b) that covenant and the charge taking effect by virtue of subsection (4) below shall cease to apply in relation to the property disposed of.

• (3) In subsection (4) of that section for the words “specified in” there shall be substituted the words “falling within”.

• (4) After that subsection there shall be inserted the folowing subsection—

(4A) The landlord may at any time by written notice served on a body falling within subsection (5) below postpone the charge taking effect by virtue of subsection (4) above to any legal charge securing any amount advanced or further advanced to the tenant by that body.

• (5) For subsection (5) of that section there shall be substituted the following subsections—

(5) The bodies referred to in subsection (4)(b) and (4A) above are— (a) the Housing Corporation; (b) any building society; (c) any body falling within paragraphs 6 to 9 of the Schedule to the Home Purchase Assistance and Housing Corporation Guarantee Act 1978; and (d) any body specified or of a class or description specified in an order made by the Secretary of State with the consent of the Treasury. (5A) Before making an order under subsection (5) above varying or revoking an order previously made, the Secretary of State shall give an opportunity for representations to be made on behalf of any body which, if the order were made, would cease to be a body falling within that subsection.

• (6) In subsection (8) of that section for the words “disposal falling within subsection (3) above” there shall be substituted the words “relevant disposal which is not exempted by subsection (3A) above”.

• (7) Where any conveyance or grant executed in pursuance of Chapter I of Part I of the 1980 Act before the commencement date contains the covenant required by section 8(1) of that Act, then, as from that date, that covenant shall have effect with such modifications as may be necessary to bring it into conformity with the amendments made by this section.

Notice to complete by landlord.

6

• (1) In subsection (1) of section 16 of the 1980 Act (completion) for the words from “matters” to “dwelling-house” there shall be substituted the words “relevant matters”.

• (2) For subsection (2) of that section there shall be substituted the following subsections—

(2) Subject to subsections (2A) and (3) below, the landlord may at any time serve on the tenant a written notice— (a) requiring him— (i) if all relevant matters have been agreed or determined, to complete the transaction within a period stated in the notice; (ii) if any relevant matters are outstanding, to serve on the landlord within that period a written notice to that effect specifying those matters; and (b) informing the tenant of the effect of this subsection and of subsections (2A), (3), (6) and (6B) below; and the period stated in a notice under this subsection shall be such period (not less than 56 days) as may be reasonable in the circumstances. (2A) A notice under subsection (2) above shall not be served at any time if, at that time— (a) any requirement for the determination or re-determination of the value of the dwelling-house by the district valuer has not been complied with; (b) any proceedings for the determination of any other relevant matter have not been disposed of; or (c) any relevant matter stated to be outstanding in a written notice served on the landlord by the tenant has not been agreed in writing or determined.

• (3) In subsection (3) of that section for the words “three months”, in each place where they occur, there shall be substituted the words “nine months”.

• (4) For subsection (6) of that section there shall be substituted the following subsections—

(6) If the tenant does not comply with a notice under subsection (2) above, the landlord may serve on him a further written notice— (a) requiring him to complete the transaction within a period stated in the notice; and (b) informing him of the effect of subsection (6B) below; and the period stated in a notice under this subsection shall be such period (not less than 56 days) as may be reasonable in the circumstances. (6A) At any time before the end of the period stated in a notice under subsection (6) above (or that period as extended under this subsection), the landlord may by a written notice served on the tenant extend (or further extend) that period. (6B) If the tenant does not comply with a notice under subsection (6) above the notice claiming to exercise the right to buy shall be deemed to be withdrawn at the end of the period stated in the notice under that subsection or, as the case may require, that period as extended under subsection (6A) above.

• (5) In subsection (7) of that section for the words “subsection (6)” there shall be substituted the words “subsection (6B)” and in subsection (9) of that section for the words “subsection (2)” there shall be substituted the words “subsection (6)”.

• (6) After subsection (11) of that section there shall be inserted the following subsection—

(12) In this section "relevant matters' means matters relating to the grant and to the amount to be left outstanding or advanced on the security of the dwelling-house.