Housing Act 1985

• (2) The corresponding authorities and bodies in Scotland are—

• a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 ,

• a joint board or joint committee of such a council,

• the common good of such a council or a trust under its control,

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

• the Scottish Special Housing Association

• Scottish Homes,

• a housing association which falls within section 61(2)(a)(vi) of the Housing (Scotland) Act 1987 but is not a registered society within the meaning of section 45 of that Act, and

• . . .

• (3) The corresponding authorities and bodies in Northern Ireland are—

• a district council within the meaning of the Local Government Act (Northern Ireland) 1972,

• the Northern Ireland Housing Executive, and

• a registered housing association within the meaning of Chapter II of Part II of the Housing (Northern Ireland) Order 1983.

8

• (1) The landlord condition shall also be treated as having been satisfied, in such circumstances as may be prescribed for the purposes of this paragraph by order of the Secretary of State, if the interest of the landlord belonged to a person who is so prescribed.

• (2) An order under this paragraph—

• (a) may make different provision with respect to different cases or descriptions of case, including different provision for different areas, and

• (b) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

The tenant condition

9

The tenant condition is that the tenant was an individual and occupied the dwelling-house as his only or principal home; or, where the tenancy was a joint tenancy, that each of the joint tenants was an individual and at least one of them occupied the dwelling-house as his only or principal home.

Application to certain housing association tenancies

10

For the purpose of determining whether at any time a tenant of a housing association was a public sector tenant and his tenancy a public sector tenancy, the association shall be deemed to have been registered at that time, under Part 2 of the Housing and Regeneration Act 2008,Part I of the Housing Act 1996 or Part I of the Housing Associations Act 1985 or under the corresponding Northern Ireland legislation, if it was so registered at any later time.

SCHEDULE 5

Charities

1

The right to buy does not arise if the landlord is a housing trust or a housing association and is a charity.

Certain housing associations

2

The right to buy does not arise if the landlord is a co-operative housing association.

3

The right to buy does not arise if the landlord is a housing association which at no time received a grant under—

• any enactment mentioned in paragraph 2 of Schedule 1 to the Housing Associations Act 1985 (grants under enactments superseded by the Housing Act 1974),

• section 31 of the Housing Act 1974 (management grants),

• section 41 of the Housing Associations Act 1985 (housing association grants),

• section 54 of that Act (revenue deficit grants),

• section 55 of that Act (hostel deficit grants), . . .

• section 58 of that Act (grants by local authorities).

• section 50 of the Housing Act 1988 (housing association grants), . . .

• section 51 of that Act (revenue deficit grants).

• section 18 of the Housing Act 1996 (social housing grants), ...

• section 22 of that Act (grants by local authorities for registered social landlords) , or

• section 19 of the Housing and Regeneration Act 2008 (financial assistance) which was a grant made on condition that the housing association provides social housing ... .

• or a grant from the Greater London Authority which was a grant made on condition that the housing association provides social housing.

Landlord with insufficient interest in the property

4

The right to buy does not arise unless the landlord owns the freehold or has an interest sufficient to grant a lease in pursuance of this Part for—

• (a) where the dwelling-house is a house, a term exceeding 21 years, or

• (b) where the dwelling-house is a flat, a term of not less than 50 years,

commencing, in either case, with the date on which the tenant’s notice claiming to exercise the right to buy is served.

Dwelling-houses let in connection with employment

5

• (1) The right to buy does not arise if the dwelling-house—

• (a) forms part of, or is within the curtilage of, a building which, or so much of it as is held by the landlord, is held mainly for purposes other than housing purposes and consists mainly of accommodation other than housing accommodation, or is situated in a cemetery, and

• (b) was let to a tenant or a predecessor in title of his in consequence of the tenant or predecessor being in the employment of the landlord or of—

• a local authority,

• a development corporation,

• a housing action trust

• . . .

• a Mayoral development corporation,

• an urban development corporation, or

• the governors of an aided school.

• (2) In sub-paragraph (1)(a) “housing purposes” means the purposes for which dwelling-houses are held by local housing authorities under Part II (provision of housing) or purposes corresponding to those purposes.

Certain dwelling-houses for the disabled

6

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

7

The right to buy does not arise if the dwelling-house has features which are substantially different from those of ordinary dwelling-houses and are designed to make it suitable for occupation by physically disabled persons, and—

• (a) it 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

• (b) 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.

8

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

9

• (1) The right to buy does not arise if—

• (a) 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, and

• (b) a social service or special facilities are provided wholly or partly for the purpose of assisting those persons.

• (2) In sub-paragraph (1)(a) “mental disorder” has the same meaning as in the Mental Health Act 1983

Certain dwelling-houses for persons of pensionable age

10

• (1) The right to buy does not arise if the dwelling-house is one of a group of dwelling-houses—

• (a) which are particularly suitable, having regard to their location, size, design, heating systems and other features, for occupation by elderly persons and

• (b) which it is the practice of the landlord to let for occupation by persons aged 60 or more, or for occupation by such persons and physically disabled persons,

and special facilities such as are mentioned in sub-paragraph (2) are provided wholly or mainly for the purposes of assisting those persons.

• (2) The facilities referred to above are facilities which consist of or include—

• (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.

11

• (1) The right to buy does not arise if the dwelling-house—

• (a) is particularly suitable, having regard to its location, size, design, heating system and other features, for occupation by elderly persons, and

• (b) was let to the tenant or a predecessor in title of his for occupation by a person who was aged 60 or more (whether the tenant or predecessor or another person).

• (2) In determining whether a dwelling is particularly suitable, no regard shall be had to the presence of any feature provided by the tenant or a predecessor in title of his.

• (3) Notwithstanding anything in section 181 (jurisdiction of county court), any question arising under this paragraph shall be determined as follows.

• (4) If an application for the purpose is made by the tenant to the the appropriate tribunal ... before the end of the period of 56 days beginning with the service of the landlord’s notice under section 124, the question shall be determined by the appropriate tribunal ....

• (5) If no such application is so made, the question shall be deemed to have been determined in favour of the landlord.

• (5A) In this paragraph “ the appropriate tribunal ... ” means—

• (a) ..., the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal...

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5B) For appeals, see section 11 of the Tribunals, Courts and Enforcement Act 2007 (for decisions of the First-tier Tribunal) and section 65A of the Rent Act 1977 (for decisions of a rent assessment committee).

• (6) This paragraph does not apply unless the dwelling-house concerned was first let before 1st January 1990.

Dwelling-houses held on Crown tenancies

12

• (1) The right to buy does not arise if the dwelling-house is held by the landlord on a tenancy from the Crown, unless—

• (a) the landlord is entitled to grant a lease in pursuance of this Part without the concurrence of the appropriate authority, or

• (b) the appropriate authority notifies the landlord that as regards any Crown interest affected the authority will give its consent to the granting of such a lease.

• (2) In this paragraph “tenancy from the Crown” means a tenancy of land in which there is a Crown interest superior to the tenancy, and “Crown interest” and “appropriate authority” mean respectively—

• (a) an interest comprised in the Crown Estate, and the Crown Estate Commissioners or other government department having the management of the land in question;

• (b) an interest belonging to Her Majesty in right of the Duchy of Lancaster, and the Chancellor of the Duchy;

• (c) an interest belonging to the Duchy of Cornwall, and such person as the Duke of Cornwall or the possessor for the time being of the Duchy appoints;

• (d) any other interest belonging to a government department or held on behalf of Her Majesty for the purposes of a government department, and that department.

• (3) Section 179(1) (which renders ineffective certain provisions restricting the grant of leases under this Part) shall be disregarded for the purposes of sub-paragraph (1)(a).

SCHEDULE 6

Part I — Common Provisions

Rights to be conveyed or granted—general

1

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

Rights of support, passage of water, etc.

2

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

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

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

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

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

• (2) The effect is—

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

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

• (3) This paragraph—

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

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

Rights of way

3

The conveyance or grant shall include—

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

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

Covenants and conditions

4

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

5

Subject to paragraph 6, and to Parts II and III of this Schedule, the conveyance or grant may include such other covenants and conditions as are reasonable in the circumstances.

No charge to be made for landlord’s consent or approval

6

A provision of the conveyance or lease is void in so far as it purports to enable the landlord to charge the tenant a sum for or in connection with the giving of a consent or approval.

Meaning of “incumbrances” and “tenant’s incumbrance”

7

In this Schedule—

• “incumbrances” includes personal liabilities attaching in respect of the ownership of land or an interest in land though not charged on the land or interest; and

• “tenant’s incumbrance” means—

• (a) an incumbrance on the secure tenancy which is also an incumbrance on the reversion, and

• (b) an interest derived, directly or indirectly, out of the secure tenancy.

Part II — Conveyance of Freehold

General

8

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

9

• (1) The conveyance shall be of an estate in fee simple absolute, subject to—

• (a) tenant’s incumbrances,

• (b) burdens (other than burdens created by the conveyance) in respect of the upkeep or regulation for the benefit of any locality of any land, building, structure, works, ways or watercourses;

but otherwise free from incumbrances.

• (2) Nothing in sub-paragraph (1) shall be taken as affecting the operation of paragraph 5 of this Schedule (reasonable covenants and conditions).

Covenants

10

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

Part III — Leases

General

11

A lease shall be for the appropriate term defined in paragraph 12 (but subject to sub-paragraph (3) of that paragraph) and at a rent not exceeding £10 per annum or, if the lease is a regulated lease within the meaning of the Leasehold Reform (Ground Rent) Act 2022, the rent permitted by that Act, and the following provisions have effect with respect to the other terms of the lease.

The appropriate term

12

• (1) If at the time the grant is made the landlord’s interest in the dwelling-house is not less than a lease for a term of which more than 125 years and five days are unexpired, the appropriate term is a term of not less than 125 years.

• (2) In any other case the appropriate term is a term expiring five days before the term of the landlord’s lease of the dwelling-house (or, as the case may require, five days before the first date on which the term of any lease under which the landlord holds any part of the dwelling-house) is to expire.

• (3) If the dwelling-house is a flat contained in a building, which also contains one or more other flats and the landlord has, since 8th August 1980, granted a lease of one or more of them for the appropriate term, the lease of the dwelling-house may be for a term expiring at the end of the term for which the other lease (or one of the other leases) was granted.

Common use of premises and facilities

13

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

Covenants by the landlord

14

• (1) This paragraph applies where the dwelling-house is a flat.

• (2) There are implied covenants by the landlord—

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

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

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

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

• (3) There is an implied covenant that the landlord shall rebuild or reinstate the dwelling-house and the building in which it is situated in the case of destruction or damage by fire, tempest, flood or any other cause against the risk of which it is normal practice to insure.

• (3A) Sub-paragraphs (2) and (3) have effect subject to paragraph 15(3) (certain obligations not to be imposed, where landlord’s title is leasehold, by reason of provisions of superior lease).

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

15

• (1) This paragraph applies where the landlord’s interest in the dwelling-house is leasehold.

• (2) There is implied a covenant by the landlord to pay the rent reserved by the landlord’s lease and, except in so far as they fall to be discharged by the tenant, to discharge its obligations under the covenants contained in that lease.

• (3) A covenant implied by virtue of paragraph 14 (implied covenants where dwelling-house is a flat) shall not impose on the landlord an obligation which the landlord is not entitled to discharge under the provisions of the landlord’s lease or a superior lease.

• (4) Where the landlord’s lease or a superior lease, or an agreement collateral to the landlord’s lease or a superior lease, contains a covenant by a person imposing obligations which, but for sub-paragraph (3), would be imposed by a covenant implied by virtue of paragraph 14, there is implied a covenant by the landlord to use its best endeavours to secure that that person’s obligations under the first-mentioned covenant are discharged.

Covenant by tenant

16

Unless otherwise agreed between the landlord and the tenant, there is implied a covenant by the tenant—

• (a) where the dwelling-house is a house, to keep the dwelling-house in good repair (including decorative repair);

• (b) where the dwelling-house is a flat, to keep the interior of the dwelling-house in such repair.

Avoidance of certain provisions

17

• (1) A provision of the lease, or of an agreement collateral to it, is void in so far as it purports to prohibit or restrict the assignment of the lease or the subletting, wholly or in part, of the dwelling-house.

• (2) Sub-paragraph (1) has effect subject to section 157 (restriction on disposal of dwelling-houses in National Parks, etc.).

18

Where the dwelling-house is a flat, a provision of the lease or of an agreement collateral to it is void in so far as it purports—

• (a) to authorise the recovery of such a charge as is mentioned in paragraph 16A (contributions in respect of repairs, etc.) otherwise than in accordance with that paragraph and paragraph 16B (restrictions in initial period of lease); or

• (b) to authorise the recovery of any charge in respect of costs incurred by the landlord—

• (i) in discharging the obligations imposed by the covenant implied by paragraph 14(3) (rebuilding or reinstatement, &c.), or those obligations as modified in accordance with paragraph 14(4), or

• (ii) in contributing to costs incurred by a superior landlord or other person in discharging obligations to the like effect; or

• (c) to authorise the recovery of an improvement contribution otherwise than in accordance with paragraph 16C (restrictions in initial period of lease).

19

A provision of the lease, or of an agreement collateral to it, is void in so far as it purports to authorise a forfeiture, or to impose on the tenant a penalty or disability, in the event of his enforcing or relying on the preceding provisions of this Schedule.

Part IV — Charges

Grant of lease

20

A charge (however created or arising) on the interest of the landlord which is not a tenant’s incumbrance does not affect a lease granted in pursuance of the right to buy.

Conveyance of freehold

21

• (1) This paragraph applies to a charge (however created or arising) on the freehold where the freehold is conveyed in pursuance of the right to buy.

• (2) If the charge is not a tenant’s incumbrance and is not a rentcharge the conveyance is effective to release the freehold from the charge; but the release does not affect the personal liability of the landlord or any other person in respect of any obligation which the charge was created to secure.

• (3) If the charge is a rentcharge the conveyance shall be made subject to the charge; but if the rentcharge also affects other land—

• (a) the conveyance shall contain a covenant by the landlord to indemnify the tenant and his successors in title in respect of any liability arising under the rentcharge, and

• (b) if the rent charge is of a kind which may be redeemed under the Rentcharges Act 1977 the landlord shall immediately after the conveyance take such steps as are necessary redeem the rentcharge so far as it affects land owned by him.

• (4) In this paragraph “rentcharge” has the same meaning as in the Rentcharges Act 1977; and—

• (a) for the purposes of sub-paragraph (3) land is owned by a person if he is the owner of it within the meaning of section 13(1) of that Act, and

• (b) for the purposes of that sub-paragraph and that Act land which has been conveyed by the landlord in pursuance of the right to buy but subject to the rentcharge shall be treated as if it had not been so conveyed but had continued to be owned by him.

SCHEDULE 7

1

The deed shall provide for repayment of the amount secured in equal instalments of principal and interest combined.

2

• (1) The period over which repayment is to be made shall be—

• (a) 25 years, or

• (b) where the mortgagor’s interest in the dwelling-house is leashold and the term of the lease is less than 25 years, a period equal to the term of the lease,

or, at the option of the mortgagor, a shorter period.

• (2) The period mentioned in sub-paragraph (1) may be extended by the mortgagee.

3

• (1) The Secretary of State may by order—

• (a) vary the preceding provisions of this Schedule, or

• (b) prescribe additional terms to be contained in the deed,

but only in relation to deeds executed after the order comes into force.

• (2) An order under this paragraph—

• (a) may make different provision with respect to different cases or descriptions of case, including different provision for different areas, and

• (b) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

4

The deed may contain such other provisions as may be—

• (a) agreed between the mortgagor and the mortgagee, or

• (b) determined by the county court to be reasonably required by the mortgagor or the mortgagee.

SCHEDULE 8

Additional shares

1

• (1) The lease shall state the tenant’s initial share of the dwelling-house and shall contain provision enabling the tenant to acquire additional shares in the dwelling-house, which shall be either the prescribed percentage (within the meaning of section 145) or a multiple of that percentage.

• (2) The right so conferred is exercisable at any time during the term of the lease on the tenant serving written notice on the landlord, stating the additional share he proposes to acquire.

• (3) Where the tenant claims to exercise the right to acquire an additional share, the landlord shall, as soon as practicable, serve on the tenant a written notice stating—

• (a) the amount which in the opinion of the landlord should be the amount of the consideration for that share on the assumption that the share is as stated in the tenant’s notice, and

• (b) the effective discount on an acquisition of that share,

determined in each case, in accordance with paragraph 3(1).

• (4) A notice required by this paragraph may be withdrawn at any time by notice in writing served on the landlord.

2

• (1) Where the dwelling-house is a house and the landlord owns the freehold, the lease shall provide that, on his acquiring an additional share such that his total share will be 100 per cent., the tenant is entitled to require the freehold to be conveyed either to himself or to such other person as he may direct.

• (2) The right so conferred is exercisable at any time during the term of the lease on the tenant serving written notice on the landlord.

• (3) As soon as practicable after the right mentioned in sub-paragraph (1) has become exercisable, the landlord shall serve on the tenant a written notice—

• (a) informing him of the right, and

• (b) stating the provisions which, in the opinion of the landlord, should be contained in the conveyance.

• (4) A conveyance executed in pursuance of that right—

• (a) shall conform with Parts I and II of Schedule 6 (terms of conveyance in pursuance of right to buy), and

• (b) shall preserve the effect of the covenant required by section 155 (repayment of discount on early disposal), and

• (c) where the lease contains any such covenant as is mentioned in section 157 (restriction on disposal of dwelling-houses in National Parks, etc.), shall preserve the effect of that covenant;

and Part IV of Schedule 6 (charges) applies to such a conveyance as it applies to a conveyance of the freehold in pursuance of the right to buy.

• (5) A notice required by this paragraph may be withdrawn at any time by notice in writing served on the landlord.

Additional contributions

3

• (1) The consideration for an additional share (referred to in this Part as an “additional contribution”) shall be determined by the formula—

$C=S(V-D)100$

and the effective discount to which the tenant is entitled on the acquisition of an additional share shall be determined by the formula—

$$E=SxD100$where—C = the additional contribution,E = the effective discount,S = the additional share expressed as a percentage,V = the value of the dwelling-house (determined in accordance with paragraph 11) at the time when the notice under paragraph 1 is served, andD = the discount which on the assumptions stated in sub-paragraph (2) below would be applicable under sections 129 to 131 (discount on exercise of right to buy).$

• (2) The assumptions are that—

• (a) the shared ownership lease had not been granted and the secure tenancy had not come to an end, and

• (b) the tenant was exercising the right to buy and his notice under paragraph 1 was a notice claiming to exercise that right.

Rent

4

• (1) The lease shall provide that, for any period for which the tenant’s total share is less than 100 per cent., the rent payable under the lease shall be determined by the formula—

$$R=F(100-S)100$where—R=the rent payable,F=the amount determined by the landlord as the rent which would be payable for that period if the shared ownership lease had not been granted and the secure tenancy had not come to an end, but excluding any element attributable to rates or council tax or to services provided by the landlord, andS=the tenant’s total share expressed as a percentage.$

• (2) In making a determination under sub-paragraph (1) the landlord shall take into account all matters which appear to it to be relevant including, in particular, where comparable dwelling-houses in the locality are let on secure tenancies, the rents payable under those tenancies.

• (3) The lease shall also provide that, for any such period, if the Secretary of State by order so provides—

• (a) the rent payable under the lease as so determined, or

• (b) any amount payable by the tenant under the lease which is payable, directly or indirectly, for repairs, maintenance, or insurance,

shall be adjusted in such manner as may be provided by the order.

• (4) The Secretary of State may by order under sub-paragraph (3) provide for such adjustment as he considers appropriate having regard to the differing reponsibilities for repairs, maintenance and insurance of a tenant under a shared ownership lease and a secure tenant.

• (5) An order under this paragraph—

• (a) may make different provision with respect to different cases or descriptions of case, including different provision for different areas, and

• (b) may contain such transitional provisions as appear to the Secretary of State to be necessary or expedient,

and shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

• (6) In this paragraph “rates” includes charges in respect of any services provided by a water undertaker or sewerage undertaker in the course of the carrying out of its functions.

5

The lease shall provide that, for any period for which the tenant’s total share is 100 per cent., the rent payable under the lease shall be £10 per annum.

Payment for outstanding share on disposal

6

• (1) The lease shall contain a covenant binding on the tenant and his successors in title to pay to the landlord on demand for the outstanding share an amount determined in accordance with sub-paragraph (2) if, at a time when the tenant’s total share is less than 100 per cent., there is—

• (a) a relevant disposal which is not an exempted disposal, or

• (b) a compulsory disposal.

• (2) The amount payable under the covenant shall be determined by the formula—

$$P=V(100-S)100$where—P = the amount payable under the covenant,V = the value at the time of the disposal (determined in accordance with paragraph 11) of the dwelling-house or, in the case of a compulsory disposal of a part of the dwelling-house, of the part disposed of, andS = the tenant’s total share expressed as a percentage.$

• (3) Section 156 (liability to repay discount a charge on the premises) applies in relation to the liability that may arise under the covenant required by this paragraph as it applies in relation to the liability that may arise under the covenant required by section 155 (repayment of discount on early disposal).

7

The lease shall provide that, on the discharge of a liablility arising under the covenant required by paragraph 6—

• (a) the rent payable under the lease, or

• (b) in the case of a compulsory disposal of a part of the dwelling-house, the rent payable under the lease so far as relating to that part,

shall be £10 per annum.

8

• (1) Where the dwelling-house is a house and the landlord owns the freehold, the lease shall provide that on the discharge of a liability arising under the covenant required by paragraph 6—

• (a) any person in whom the tenant’s interest in the dwelling-house is vested, or

• (b) in the case of a compulsory disposal of a part of the dwelling-house, any person in whom that part is vested,

is entitled to require the freehold of the dwelling-house, or as the case may be that part of the dwelling-house, to be conveyed either to himself or to such other person as he may direct.

• (2) The right so conferred is exercisable at any time during the term of the lease on the person referred to in sub-paragraph (1)(a) or (b) serving written notice on the landlord.

• (3) As soon as practicable after such a right as is mentioned in sub-paragraph (1) has become exercisable by any person, the landlord shall serve on him a written notice—

• (a) informing him of the right, and

• (b) stating the provisions which, in the opinion of the landlord, should be contained in the conveyance.

• (4) A conveyance executed in pursuance of such a right—

• (a) shall conform with Parts I and II of Schedule 6 (terms of conveyance in pursuance of right to buy), and

• (b) where the lease contains any such covenant as is mentioned in section 157 (restriction on disposal of dwelling-houses in National Parks, etc.), shall preserve the effect of that covenant;

and Part IV of Schedule 6 (charges) applies to such a conveyance as it applies to a conveyance of the freehold in pursuance of the right to buy.

• (5) A notice required by this paragraph may be withdrawn at any time by notice in writing served on the landlord.

No disposals of part while share outstanding

9

• (1) The lease shall contain a covenant binding on the tenant and his successors in title that there will be no relevant disposal of part of the dwelling-house, other than a compulsory disposal, at any time when the tenant’s total share is less than 100 per cent.

• (2) A disposal in breach of the covenant required by sub-paragraph (1) is void.

Applications of provisions after disposal

10

• (1) The lease shall provide that in the event of a relevant disposal which is an exempted disposal by virtue of—

• section 160(1)(a) (a disposal of whole dwelling-house to member of family),

• section 160(1)(b) (vesting on death of tenant), or

• section 160(1)(c) (matrimonial property adjustment or family provision order),

references to the tenant in the provisions of the lease required by this Schedule or by section 155 (repayment of discount on early disposal) shall include references to the person to whom the disposal is made.

• (2) The lease shall also provide that, in the event of a compulsory disposal of a part of the dwelling-house, references in those provisions to the dwelling-house shall be construed as references to the remaining part of the dwelling-house.

Value of dwelling-house or part

11

• (1) For the purposes of paragraph 3 (additional contributions) and paragraph 6 (payment for outstanding share on disposal) the value of the dwelling-house, or a part of the dwelling-house, at any time is the amount agreed between the parties or determined by the district valuer as the amount which, in accordance with this paragraph, is to be taken as its value at that time.

• (2) That value shall be taken to be the price which the interest of the tenant in the dwelling-house or part would realise if sold on the open market by a willing vendor—

• (a) on the assumption that the liabilities mentioned in sub-paragraph (3) would be discharged by the vendor, and

• (b) disregarding the matters specified in sub-paragraph (4).

• (3) The liabilities referred to in sub-paragraph (2)(a) are—

• (a) any mortgages of the tenant’s interest,

• (b) any liability under the covenant required by paragraph 6 (payment for outstanding share on disposal), and

• (c) any liability under the covenant required by section 155 (repayment of discount on early disposal).

• (4) The matters to be disregarded in pursuance of sub-paragraph (2)(b) are any interests or rights over the dwelling-house created by the tenant, any improvements made by the tenant or any of the persons mentioned in section 127(4) (certain predecessors as secure tenant) and any failure by the tenant or any of those persons—

• (a) where the dwelling-house is a house, to keep the dwelling-house in good repair (including decorative repair);

• (b) where the dwelling-house is a flat, to keep the interior of the dwelling-house in such repair.

SCHEDULE 9

Right to further advances

1

• (1) The deed shall enable the tenant to require further sums to be advanced to him in the circumstances and subject to the limits stated in this Schedule.

• (2) The right so conferred is exercisable, within three months of the tenant claiming to exercise his right to acquire an additional share, on the tenant serving written notice on the landlord or Corporation.

• (3) Such a notice may be withdrawn at any time by notice in writing served on the landlord or Corporation.

Amount of further advance

2

The amount which a tenant exercising the right to a further advance is entitled to have advanced to him is, subject to the limit imposed by paragraph 3, the amount of his additional contribution.

3

• (1) The limit is that the aggregate of that amount and the amount for the time being secured by the mortgage shall not exceed—

• (a) where the right to a further advance belongs to one person, the amount to be taken into account, in accordance with regulations under paragraph 4, as his available annual income multiplied by such factor as, under the regulations, is appropriate to it;

• (b) where the right to a further advance belongs to more than one person, the aggregate of the amounts to be taken into account in accordance with the regulations as the available annual income of each of them, after multiplying each of those amounts by the factor appropriate to it under the regulations.

• (2) Where the amount which a tenant is entitled to have advanced to him is reduced by the limit imposed by this paragraph, the landlord may, if it thinks fit and the tenant agrees, treat him as entitled to have advanced to him such amount exceeding that limit, but not exceeding the amount of his additional contribution, as the landlord may determine.

4

• (1) The Secretary of State may by regulations make provision for calculating the amount which is to be taken into account as a person’s available annual income and for specifying a factor appropriate to it.

• (2) The regulations may—

• (a) provide for arriving at a person’s available annual income by deducting from the sums taken into account as his annual income sums related to his needs and commitments, and may exclude sums from those to be taken into account as a person’s annual income, and

• (b) specify different amounts and different factors for different circumstances.

• (3) Regulations under this paragraph—

• (a) may make different provision with respect to different cases or descriptions of case, including different provision for different areas, and

• (b) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Notice of amount and terms of further advance

5

As soon as practicable after the service on it of a notice required by paragraph 1, the landlord or Corporation shall serve on the tenant a written notice stating—

• (a) the amount which, in the opinion of the landlord or Corporation, the tenant is entitled to have advanced to him on the assumption that the additional share is as stated in the tenant’s notice under paragraph 1 of Schedule 8 (claim-to exercise right to acquire additional shares),

• (b) if greater than that amount, the amount which, in the opinion of the landlord or Corporation, the tenant would be entitled to have advanced to him if the additional share were such that his total share would be 100 per cent,

• (c) how that amount, or those amounts, have been arrived at, and

• (d) the provisions which, in the opinion of the landlord or Corporation, should be contained in the deed by which the further mortgage is effected.

Terms of deed by which further mortgage is effected

6

Schedule 7 (terms of mortgage granted in pursuance of right to a mortgage) applies to the deed by which the further mortgage is effected, but with the substitution for any reference to the term of the lease of a reference to the unexpired term of the lease.

SCHEDULE 10

Introductory

1

The provisions of this Schedule have effect for enabling the local authority to recover expenses reasonably incurred by them in carrying out, in a case where the notice has not been complied with, works required to be carried out by a notice under—

• section 189 or 190 (repair notices),

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , or

• section 352, . . . or 372 (notices relating to houses in multiple occupation).

Recovery of expenses

2

• (1) The expenses are recoverable by the authority

• (a) where the works were required by a notice under section 189 or section 190 (repair notices), from the person having control of the dwelling-house house in multiple occupation or part of the building to which the notice relates; and

• (b) where the works were required by a notice under section 352 or 372 (notices relating to houses in multiple occupation), from the person having control of the house or the person managing the house, as the authority think fit;

• (2) Where the person primarily liable—

• (a) in the case of a notice under section 189 or 190 (repair notices), receives the rent of the premises as agent or trustee for some other person, or

• (b) in the case of a notice under section 352, . . . or 372 (notices relating to houses in multiple occupation), was only properly served with that notice as being an agent or trustee for some other person,

the expenses are also recoverable by the authority from that other person, or partly from him and partly from the person primarily liable.

• (3) Where the person primarily liable proves—

• (a) that sub-paragraph (2) applies, and

• (b) that he has not, and since the date of the service on him of the demand has not had, in his hands on behalf of that other person sufficient money to discharge the whole demand of the authority,

his liability is limited to the total amount of the money which he has, or has had, in his hands as mentioned in paragraph (b).

• (4) Expenses are not recoverable under this paragraph to the extent that they are by any direction of the court on appeal recoverable under an order of the court.

Service of demand

3

• (1) A demand for the expenses, together with interest in accordance with paragraph 4, shall be served on the person from whom the authority seek to recover them.

• (2) On the date on which the demand is served, the authority shall serve a copy of it on every other person who, to the knowledge of the authority, is an owner, lessee or mortgagee of the premises.

• (3) The demand becomes operative, if no appeal is brought, on the expiry of 21 days from the date of service of the demand and is final and conclusive as to matters which could have been raised on an appeal.

Interest

4

Expenses in respect of which a demand is served carry interest, at such reasonable rate as the authority may determine, from the date of service until payment of all sums due under the demand.

Order for payment by instalments.

5

Appeals

6

• (1) A person aggrieved by a demand for the recovery of expenses, . . . , may within 21 days of the service of the demand or copy, . . . appeal to the county court.

• (1A) Where the demand for recovery of expenses relates to works carried out by virtue of section 193(2A), it shall be a ground of appeal that, at the time the local housing authority gave notice under section 194 of their intention to enter and do the works, reasonable progress was being made towards compliance with the repair notice.

• (1B) Where the demand for recovery of expenses relates to works carried out by virtue of subsection (3) of section 375, it shall be a ground of appeal that, at the time the local housing authority served notice under subsection (3A) of that section, reasonable progress was being made towards compliance with the notice in question.

• (2) On an appeal the court may make such order either confirming, quashing or varying the demand . . . as it thinks fit.

• (3) A demand . . . against which an appeal is brought becomes operative, so far as it is confirmed on appeal, on the final determination of the appeal; and the withdrawal of an appeal has for this purpose the same effect as a decision dismissing the appeal.

• (4) No question may be raised on appeal under this paragraph which might have been raised on an appeal against the relevant notice.

Expenses and interest to be a charge on the premises

7

• (1) The expenses recoverable by the authority, together with the interest accrued due, are, until recovered, a charge on the premises to which the notice related.

• (2) The charge takes effect when the demand for the expenses and interest becomes operative.

• (3) The authority have for the purpose of enforcing the charge the same powers and remedies, under the Law of Property Act 1925 and otherwise, as if they were mortgagees by deed having powers of sale and lease, of accepting surrenders of leases and of appointing a receiver.

• (4) The power of appointing a receiver is exercisable at any time after the expiration of one month from the date when the charge takes effect.

Recovery of expenses and interest from other persons profiting from execution of works

8

• (1) This paragraph applies only to notices under section 352, . . . or 372 (notices relating to houses in multiple occupation).

• (2) If the authority apply to the county court and satisfy the court that—

• (a) the expenses and interest have not been and are unlikely to be recovered, and

• (b) some person is profiting by the execution of the works in respect of which the expenses were incurred to obtain rents or other payments which would not have been obtainable if the number of persons living in the premises was limited to that appropriate for the premises in their state before the works were executed,

the court may, if satisfied that that person has had proper notice of the application, order him to make such payments to the authority as may appear to the court to be just.

SCHEDULE 11

PART I — The Making of the Order and its Effect

Introductory.

1

• (1) This Schedule applies to a house comprised in a clearance area which—

• (a) was purchased under section 290 (acquisition of land for clearance), by agreement or compulsorily, before 2nd December 1974, or

• (b) is subject to a compulsory purchase order made under that section before that date and confirmed before 2nd March 1975.

• (2) In the case of a clearance area comprising houses within sub-paragraph (1)(a) or (b), this Schedule also applies to houses included in it by virtue of section 293 (local housing authority’s own property).

• (3) In this Schedule “land liable to be cleared”, in relation to a clearance area, means—

• (a) land in the clearance area,

• (b) land surrounded by or adjoining the clearance area for whose purchase a resolution under section 290(2) has been passed (whether or not it has been so purchased), and

• (c) land to which the provisions of this Part relating to clearance areas apply by virtue of section 293 (local housing authority’s own property),

but does not include land subject to a clearance order made and confirmed under section 44 of the Housing Act 1957 before the repeal of that provision on 9th October 1979.

Power to make rehabilitation order.

2

• (1) Where a house to which this Schedule applies—

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

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

the authority may make and submit to the Secretary of State a rehabilitation order in relation to the house.

• (2) In addition to applying to such a house, the order may, if the authority think fit, be made to apply to other land liable to be cleared.

• (3) Where the owner of a house to which this Schedule applies and which was included in the clearance area by reason of its being unfit for human habitation requests the local housing authority to make a rehabilitation order in respect of the house and they refuse to do so, they shall give him in writing the reasons for their refusal.

Clearance procedure suspended on making of order.

3

• (1) Where the local housing authority have made a rehabilitation order they shall not—

• (a) serve notice to treat under section 5 of the Compulsory Purchase Act 1965 in respect of land included in a compulsory purchase order made and confirmed by virtue of section 290 which includes land in relation to which a notice is required to be served under paragraph 10 below (notice of intention to submit order for confirmation), or

• (b) demolish, without the consent of the Secretary of State, any building on land in relation to which such a notice is required to be served,

until after the date on which the notice becomes operative or, as the case may be, on which confirmation of the order is refused.

• (2) No account shall be taken for the purposes of section 4 of the Compulsory Purchase Act 1965 (time limit for completing compulsory purchase) of any period during which an authority are prevented by sub-paragraph (1) from serving a notice to treat under section 5 of that Act.

Principal effects of rehabilitation order.

4

• (1) On the date on which a rehabilitation order becomes operative, the local housing authority cease to be subject to any duty under this Part to demolish or secure the demolition of buildings on the land.

• (2) The authority shall then take such steps as are necessary—

• (a) to restore the house so as to provide one or more dwellings to the full standard, or

• (b) where the house is not vested in the authority, to ensure that the house is restored with that object.

• (3) The authority may accept undertakings for the purposes of sub-paragraph (2)(b) from the owner of the house, or any other person who has or will have an interest in it, concerning the works to be carried out to restore the house and the time within which the works are to be carried out.

Other effects of rehabilitation order.

5

• (1) This paragraph applies where a rehabilitation order becomes operative in respect of land included in a compulsory purchase order made and confirmed by virtue of section 290 (acquisition of land for clearance).

• (2) If at the date on which the rehabilitation order becomes operative—

• (a) no interest in the land has vested in the local housing authority, and

• (b) they have not served a notice to treat under section 5 of the Compulsory Purchase Act 1965 in respect of any interest in the land.

the compulsory purchase order ceases to have effect in relation to the land and if the land is included in a clearance area it ceases to be so included.

• (3) Where sub-paragraph (1) does not apply the compulsory purchase order has effect in relation to any interest in the land which has not vested in the authority at the date on which the rehabilitation order becomes operative—

• (a) in so far as it relates to a house, as if made and confirmed under Part II (provision of housing), and

• (b) in so far as it relates to land other than a house, as if made and confirmed under Part VI of the Town and Country Planning Act 1971 (planning purposes).

6

Where a rehabilitation order becomes operative in respect of land and an interest in the land comprised in the order is vested in the local housing authority, the interest shall be treated—

• (a) in the case of an interest in a house, as appropriated to the purposes of Part II (provision of housing), and

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

7

• (1) A rehabilitation order may be made and confirmed notwithstanding that the effect of the order in excluding land from a clearance area is to sever the area into two or more separate and distinct areas.

• (2) In such a case the provisions of this Act relating to the effect of a compulsory purchase order when confirmed, and to the proceedings to be taken after confirmation of such an order, apply as if those areas formed one clearance area.

8

Where a rehabilitation order becomes operative in respect of land and its effect is to exclude from the clearance area land adjoining a general improvement area, the land shall be included in the general improvement area unless the Secretary of State otherwise directs.

PART II — Procedural Matters

The form of the order.

9

A rehabilitation order shall be made in the prescribed form and shall describe, by reference to a map—

• (a) the houses to which it applies and which were included in the clearance area by reason of their being unfit for human habitation,

• (b) any other land to which it applies, and

• (c) any land not within paragraph (a) or (b) in respect of which notice is required to be served under paragraph 10.

Notices to be given.

10

• (1) Before submitting a rehabilitation order to the Secretary of State the local housing authority shall, except so far as the Secretary of State directs otherwise, comply with the following provisions.

• (2) They shall publish in one or more newspapers circulating in their district a notice in the prescribed form—

• (a) stating that the rehabilitation order has been made,

• (b) describing the land to which it applies, and

• (c) naming a place where a copy of the order and its accompanying map may be seen at all reasonable hours.

• (3) They shall serve on every person mentioned in sub-paragaph (4) a notice in the prescribed form stating—

• (a) the effect of the rehabilitation order,

• (b) that it is about to be submitted to the Secretary of State for confirmation, and

• (c) the time within which and the manner in which objections to the order can be made.

• (4) The persons to whom notice must be given are—

• (a) every person on whom notice was served of the making under this Part of a compulsory purchase order which at the date of its confirmation included land subsequently comprised in the rehabilitation order;

• (b) every successor in title of such a person;

• (c) every owner, lessee and occupier of land liable to be cleared, other than a tenant for a month or a period less than a month;

• (d) mortgagees of such land, so far as it is reasonably practicable to ascertain them; and

• (e) every person on whom notice would have been required to be served under paragraph (c) or (d) but whose interest has been acquired under section 290 (acquisition of land for clearance) since the clearance area was declared.

• (5) A notice under this paragraph shall be accompanied by a statement of the grounds on which the authority are seeking confirmation of the order.

Confirmation of the order.

11

• (1) If no objection is duly made by any of the persons on whom notices are required to be served under paragraph 10, or if all objections so made are withdrawn, the Secretary of State may confirm the order with or without modifications.

• (2) If an objection duly made is not withdrawn, the Secretary of State shall, before confirming the order, either—

• (a) cause a public local inquiry to be held, or

• (b) afford to every person by whom an objection has been duly made and not withdrawn an opportunity of appearing before and being heard by a person appointed by the Secretary of State for the purpose.

• (3) After considering any objection not withdrawn and the report of the person who held the inquiry or was appointed under sub-paragraph (2), the Secretary of State may confirm the order with or without modifications.

• (4) The Secretary of State may require a person who has made an objection to state the grounds of the objection in writing, and may disregard the objection if he is satisfied that it relates exclusively to matters which can be dealt with by the tribunal by whom any compensation is to be assessed.

• (5) The Secretary of State’s power to modify a rehabilitation order includes power, subject to sub-paragraph (6), to extend it to any land liable to be cleared.

• (6) The Secretary of State shall not extend the application of a rehabilitation order to any land unless he has served on the following persons—

• (a) the authority who make the order,

• (b) every owner, lessee and occupier of the land, except a tenant for a month or a period less than a month, and

• (c) every mortgagee of any of the land who it is reasonably practicable to ascertain,

a notice stating the effect of his proposals, and has afforded them an opportunity to make their views known.

Notice of confirmation of the order.

12

• (1) So soon as may be after the order has been confirmed by the Secretary of State, the local housing authority shall comply with the following provisions.

• (2) They shall publish in a newspaper circulating in their district a notice in the prescribed form—

• (a) stating that the order has been confirmed, and

• (b) naming a place where a copy of the order as confirmed and of the map referred to in the order may be seen at all reasonable hours.

• (3) They shall serve a like notice on—

• (a) every person who, having given notice to the Secretary of State of his objection to the order, appeared at the public local inquiry or before the appointed person in support of his objection, and

• (b) every person on whom the Secretary of State served notice under paragraph 11(6) (notice of proposal to confirm order with modification extending its operation).

Challenge to validity of order.

13

• (1) If a person aggrieved by the order desires to question its validity on the ground—

• (a) that it is not within the powers of this Act, or

• (b) that any requirement of this Act has not been complied with,

he may within six weeks after publication of the notice of confirmation make an application for the purpose to the High Court.

• (2) Where such an application is duly made, the court may by interim order suspend the operation of the order, either generally or in so far as it affects property of the applicant until the final determination of the proceedings.

• (3) If on the hearing of the application the court is satisfied—

• (a) that the order is not within the powers of this Act, or

• (b) that the interests of the applicant have been substantially prejudiced by any requirement of this Act not having been complied with,

the court may quash the order, either generally or in so far as it affects property of the applicant.

• (4) No appeal lies to the House of Lords from a decision of the Court of Appeal in proceedings under this paragraph except by leave of the Court of Appeal.

• (5) Subject to the provisions of this paragraph, the order shall not be questioned in any legal proceedings whatsoever, either before or after the order is confirmed.

Notice of order having become operative.

14

• (1) The order becomes operative (subject to any order under paragraph 13) at the expiration of six weeks from the date on which notice of confirmation of the order is published in accordance with paragraph 12.

• (2) So soon as may be after the order has become operative the local housing authority shall serve a copy of the notice on every person on whom a notice was served by them of their intention to submit the order to the Secretary of State for confirmation.

SCHEDULE 12

Introductory.

1

This Schedule has effect with respect to the provision which may be made by regulations under section 313 prescribing the method of determining whether a local authority have incurred a loss in connection with the exercise of their slum clearance functions and the amount of the loss.

Treatment of expenditure or receipts of a capital nature.

2

• (1) The regulations may require expenditure or receipts to be treated, or not to be treated, as of a capital nature.

• (2) The regulations may, in the case of an item, of a capital nature, determine the method of arriving at the appropriate equivalent annual amounts to be taken into account, and their number, or may specify classes of case in which an item of a capital nature is to be taken into account for a single year.

• (3) The number of equivalent annual amounts prescribed under sub-paragraph (2) shall not in any case exceed 60.

• (4) The regulations may provide that, where the prescribed number of equivalent annual amounts in respect of an item exceeds 15, all equivalent annual amounts in respect of that item shall be left out of account from such year, not being less than 15 years after the year in which the item arises and not earlier than 1986-87, as may be specified in the regulations.

Approval of expenditure by Secretary of State.

3

The regulations may provide that expenditure of any class or description shall not be taken into account unless, and except so far as, the Secretary of State has approved the expenditure.

Avoidance of double payment of subsidy, &c..

4

The regulations may, in order to prevent subsidy or other payments out of money provided by Parliament being made in respect of the same loss or expenditure, or in respect of the same land, both under section 312 (slum clearance subsidy) and under—

• (a) section 7 of the Local Government Act 1966 or section 250 of the Town and Country Planning Act 1971 (grants for development and re-development), or

• (b) any other enactment, including any other provision of this Act,

provide for the exclusion of any item of expenditure or the making of any other adjustment.

Expenditure or receipts in connection with land acquired before 1st April 1965.

5

The regulations shall not take into account expenditure or receipts (whether capital or not, and whether incurred or due before 1st April 1971 or later) in connection with land acquired by the authority before 1st April 1965.

Expenditure or receipts incurred or due before 1st April 1971.

6

• (1) Except as mentioned in sub-paragraph (2), the regulations shall not take into account expenditure or receipts incurred or due before 1st April 1971.

• (2) Where in the period of six years beginning on 1st April 1965 and ending on 31st March 1971 the authority have acquired land for the purposes of their slum clearance functions and continue to hold that land for those purposes until the end of that period, the regulations may take into account the equivalent annual amounts in respect of capital expenditure incurred, or capital receipts becoming due, in that period in connection with that land.

Miscellaneous.

7

The regulations may—

• (a) make different provision for different classes of authorities, or special provision for particular authorities;

• (b) contain such transitional and other supplementary or incidental provisions as appear to the Secretary of State to be necessary or expedient.

8

Nothing in paragraphs 3, 4 or 7 of this Schedule prejudices the generality of the regulation-making power conferred by section 313.

SCHEDULE 13

Part I — Management Schemes

Contents of management scheme

1

• (1) The scheme shall give particulars of all works which, in the opinion of the local housing authority, they would, if a control order were not in force, have required to be carried out under any provision of this Part, or under any other enactment relating to housing or public health, and which, in their opinion, constitute works of capital expenditure.

• (2) The scheme shall include an estimate of the costs of carrying out the works of which particulars are given in the scheme.

• (3) The scheme shall specify what, in the opinion of the authority, is the highest number of individuals or households who should live in the house from time to time, having regard to—

• (a) the considerations set out in section 352(1) (matters relevant to fitness of house for number of occupants), and

• (b) the existing condition of the house and its future condition as the works progress which the authority carry out in the house.

• (4) The scheme shall include an estimate of the balance which will from time to time accrue to the authority after deducting from the rent or other payments received by the authority from persons occupying the house—

• (a) the compensation payable by the authority to the dispossessed proprietor under section 389 and Part II of this Schedule, and

• (b) all expenditure, other than that of which particulars are given under sub-paragraph (2), incurred by the authority in respect of the house while the control order is in force.

The estimate in the scheme of surpluses on revenue account

2

• (1) References in this Schedule to the surpluses on revenue account as settled by the scheme are to the amount included in the scheme by way of an estimate under paragraph 1(4), subject to any variation of the scheme made by the local housing authority or on an appeal or application to the court.

• (2) In paragraph 1(4), and elsewhere in this Schedule, “rent or other payments”, in relation to payments received by the local housing authority from persons occupying a house subject to a control order, means rent or other payments so received—

• (a) under leases or licences, or

• (b) in respect of furniture to which section 383(1) applies (furniture comprised in furnished letting of which right to possession vests in authority).

• (3) In paragraph 1(4), and elsewhere in this Schedule, references to expenditure incurred by the local housing authority in respect of a house subject to a control order include, in a case where the authority—

• (a) require persons living in the house to vacate their accommodation for a period while the authority are carrying out works in the house, and

• (b) provide housing accommodation for those persons for any part of that period or defray all or any part of the expenses incurred by or on behalf of those persons removing from and returning to the house,

the net cost to the authority in so providing housing accommodation and the sums so defrayed by the authority.

Appeal against scheme

3

• (1) A person having an estate or interest in a house to which a control order relates may, within six weeks from the date on which a management scheme relating to the house was served in accordance with section 386, or such longer period as the local housing authority may in writing allow, appeal to the county court against the scheme.

• (2) The appeal may be on any of the following grounds—

• (a) that, having regard to the condition of the house and to the other circumstances, any of the works of which particulars are given in the scheme (whether already carried out or not) are unreasonable in character or extent, or are unnecessary;

• (b) that any of the works do not involve expenditure which ought to be regarded as capital expenditure;

• (c) that the number of individuals or households living in the house, as specified by the local housing authority in the scheme, is unreasonably low;

• (d) that the estimate of the surpluses on revenue account in the scheme is unduly low on account of assumptions made by the authority as to matters within their control (for example, as to the rents charged by them).

• (3) On an appeal the court may, as it thinks fit, confirm or vary the scheme.

• (4) Proceedings on an appeal against a scheme shall, so far as practicable, be combined with proceedings on any appeal under section 384 against the control order itself; and if on such an appeal the court decides to revoke the control order, the court shall not proceed with any appeal against the scheme.

Expenditure on works to be set against surpluseson revenue account.

4

• (1) An account shall be kept by the local housing authority for the period during which the control order is in force showing—

• (a) the surpluses on revenue account as settled by the scheme, and

• (b) the expenditure incurred by the authority in carrying out works of which particulars were given in the scheme;

and balances shall be struck in the account at half-yearly intervals so as to ascertain the amount of that expenditure which cannot be set off against those surpluses.

• (2) So far as, at the end of a half-yearly period, the expenditure is not so set off, it shall carry interest, at such reasonable rate as the authority may determine, until it is so set off or until the charge arising under paragraph 16 of this Schedule (recovery of expenditure when control order ceases to have effect) is satisfied.

• (3) So far as there is a sum out of the surpluses on revenue account not required to meet expenditure incurred by the authority, it shall go to meet interest under sub-paragraph (2).

Variation or review of surpluses on revenue accountas settled by the scheme

5

The local housing authority may at any time vary a scheme in such a way as to increase the amount of the surpluses on revenue account as settled by the scheme for all or any periods, including past periods.

6

• (1) The local housing authority, or a person having an estate or interest in the house, may at any time apply to the county court for a review of the surpluses on revenue account as settled by the scheme.

• (2) On such an application the court shall take into consideration—

• (a) whether in the period since the control order came into force the actual balances mentioned in paragraph 1(4) have exceeded, or been less than, the surpluses on revenue account as settled by the scheme, and

• (b) whether there has been any change in circumstances such that the number of persons or households who should live in the house, or the amount of the rents and other payments receivable by the local housing authority from persons occupying the house, ought to be greater or less than was originally estimated.

• (3) The court may on such an application, as it thinks fit, confirm or vary the scheme (but not so as to affect the provisions of the scheme relating to the works), and may vary the surpluses on revenue account as settled by the scheme for all or any period, including past periods.

Part II — Compensation Payable to Dispossessed Proprietor

Rate of compensation

7

The compensation payable by the local housing authority to the dispossessed proprietor in pursuance of section 389(1)(a) shall be at an annual rate equal to

• (a) in a case where the gross value of the house was shown in the valuation list on the date a control order made before 1st April 1990 came into force, one half of the gross value of the house multiplied by the appropriate multiplier in accordance with paragraphs 8 to 13; and

• (b) in any other case, one half of the rental value of the house in accordance with paragraph 13A.

Ascertainment of gross value of house

8

Subject to the following provisions, the gross value of a house for the purposes of this Part of this Schedule is its gross value for rating purposes as shown in the valuation list on the date when the control order comes into force.

9

• (1) If the house forms part only of a hereditament, the gross value of the house is such proportion of the gross value shown in the valuation list for that hereditament as may be agreed in writing between the local housing authority and the person claiming compensation.

• (2) If any dispute arises under sub-paragraph (1), the authority or the person claiming compensation may by means of a reference in writing submit the dispute for decision by the district valuer.

10

If the house consists or forms part of more than one hereditament, the gross value shall be ascertained by determining the gross value of each hereditament or part as if it were a separate house and aggregating the gross values so determined.

11

• (1) The gross value of a hereditament whose rateable value is by virtue of subsection (1) of section 19 of the General Rate Act 1967 to be taken to be its net annual value ascertained in accordance with subsections (2) to (4) of that section shall be taken to be its corresponding gross value, that is to say, the gross value which would be equivalent to the net annual value shown in the valuation list if there were deducted any amounts which by virtue of an order made or falling to be treated as made under section 19(2) of the General Rate Act 1967 would be deducted from the gross value of the hereditament if it had been required to be assessed to its gross value instead of its net annual value.

• (2) If more than one value is so ascertained to be the corresponding gross value, the highest value so ascertained shall be taken.

12

Where after the date on which the control order comes into force—

• (a) the valuation list is altered so as to vary the gross value (or where paragraph 11 applies the net annual value) of the house or of the hereditament of which the house forms part, and

• (b) the alteration has effect from a date before, or from the same date as, the control order came into force,

compensation is payable as if the value shown in the list on the date when the control order came into force had been that shown in the list as altered.

The appropriate multiplier

13

• (1) The appropriate multiplier for the purposes of this Part of this Schedule is that specified by order of the Secretary of State.

• (2) An order under this paragraph shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Apportionment of compensation between proprietors of differentparts of house.

14

• (1) If different persons are the dispossessed proprietors of different parts of the house, the compensation payable shall be apportioned between them according to the proportions of the gross value , or as the case may be, rental value of the house properly attributable to the parts of the house in which they are respectively interested.

• (2) If they do not agree on the apportionment they shall refer the matter, in writing, for determination by the district valuer.

Part III — Cessation of Control Order

General consequences of cessation of control order

15

• (1) On and after the date on which a control order ceases to have effect—

• (a) a lease, licence or agreement in which the local housing authority were substituted for another party by virtue of section 382 (effect of order on persons occupying house) has effect with the substitution of the original party, or his successor in title, for the authority,

• (b) an agreement in the nature of a lease or licence created by the local housing authority has effect with the substitution of the dispossessed proprietor for the authority.

• (2) If the dispossessed proprietor is a lessee, nothing in a superior lease imposes liability on him, or on a superior lessee, in respect of anything done in pursuance of the terms of an agreement in which the dispossessed proprietor is substituted for the local housing authority by virtue of this paragraph.

• (3) This paragraph applies in all circumstances in which a control order ceases to have effect.

16

• (1) When a control order ceases to have effect, a final balance shall be struck in the account mentioned in paragraph 4(1) and the expenditure reasonably incurred by the local housing authority in carrying out works of which particulars were given in the management scheme, together with interest at such reasonable rate as the authority may determine is, so far as not set off against the surpluses on revenue account as settled by the scheme, a charge on the premises.

• (2) The premises subject to the charge include any part of the premises excluded from the provisions of the order under section 380 (modification of order where proprietor resides in part of the house).

• (3) The local housing authority have for the purposes of enforcing the charge all the same powers and remedies, under the Law of Property Act 1925 and otherwise, as if they were mortgagees by deed having powers of sale and lease, of accepting surrender of leases and of appointing a receiver.

• (4) The power of appointing a receiver is exercisable at any time after the expiration of one month from the date when the charge takes effect.

• (5) References in this paragraph to the provisions of the management scheme include reference to the provisions as varied; and if, when the control order ceases to have effect, proceedings are pending which may result in a variation of the scheme—

• (a) those proceedings may be continued until finally determined, and

• (b) if the charge under this paragraph is enforced before the final determination of those proceedings, the local housing authority shall account for any money recovered by enforcing the charge which, having regard to the decision in the proceedings as finally determined, they ought not to have recovered.

• (6) This paragraph does not apply—

• (a) where a control order is revoked by the county court on an appeal against the order, or

• (b) where a control order ceases to have effect under Part IV of this Schedule (control order followed by compulsory purchase order),

but applies in every other case where a control order ceases to have effect (including the case where the order is revoked by a court on appeal from the county court).

Revocation of order by county court on appealagainst making of order

17

• (1) The provisions of this paragraph apply where a control order is revoked by the county court on an appeal against the control order.

• (2) The court shall take into consideration whether the state or condition of the house is such that action ought to be taken by the local housing authority under any other provision of this Part, and shall approve the taking of any of the following steps accordingly, that is—

• (a) the serving of a notice under section 352, 366 or 372 (notices requiring the execution of works),

• (b) the giving of a direction under section 354 (direction limiting number of occupants of house), or

• (c) the making of an order under section 370 (order applying management code to house);

and no appeal lies against a notice or order so approved.

• (3) If the local housing authority are in the course of carrying out works in the house which, if a control order were not in force, the authority would have power to require some other person to carry out under any provision of this Part or under any other enactment relating to housing or public health, and on the hearing of the appeal the court is satisfied that the carrying out of the works could not be postponed until after the determination of the appeal by the county court because the works were urgently required for the sake of the safety, welfare or health of persons living in the house, or of other persons, the court may suspend the revocation of the control order until the works have been completed.

• (4) The county court shall fix the date on which the control order is to be revoked without regard to whether an appeal has been or may be brought against the decision of the county court; but that does not prevent the local housing authority from bringing such an appeal.

• (5) The court may authorise the local housing authority to create under section 381(1)(c) (power to create interests akin to leases) interests which expire, or which the dispossessed proprietor can terminate, within six months from the time when the control order ceases to have effect, being interests which, notwithstanding section 381(2), are for a fixed term exceeding one month or are terminable by notice to quit (or an equivalent notice) of more than four weeks.

18

• (1) If a control order is revoked by the county court on an appeal against the order, the local housing authority shall pay to the dispossessed proprietor the balances, which from time to time accrued to the authority after deducting from the rent or other payments received by the authority from persons occupying the house—

• (a) the compensation payable by the authority to the dispossessed proprietor, and

• (b) all expenditure (other than capital expenditure) incurred by the authority in respect of the house while the control order was in force.

• (2) If the court is satisfied that the balances which the local housing authority are under sub-paragraph (1) liable to pay to the dispossessed proprietor are unduly low for any reason within the control of the authority, having regard to—

• (a) the desirability of observing the standards of management contained in regulations made under section 369 (the management code), and

• (b) the other standards which the authority ought to observe as to the number of persons living in the house and the rents which they ought to charge,

the court shall direct that, for the purposes of the authority’s liability to the dispossessed proprietor under this paragraph, the balances under sub-paragraph (1) shall be deemed to be such greater sums as the court may direct.

• (3) The court shall not under sub-paragraph (2) give a direction which will afford to the dispossessed proprietor a sum greater than what he may, in the opinion of the court, have lost by the making of the control order.

• (4) If different persons are dispossessed proprietors of different parts of the house, sums payable under this paragraph by the local housing authority shall be apportioned between them in the manner provided by paragraph 14.

19

• (1) The provisions of this paragraph have effect for the purpose of enabling the local housing authority to recover capital expenditure incurred in carrying out works in the house in the period before the control order is revoked on an appeal against the order.

• (2) On the hearing of the appeal the authority may apply to the court for the approval of those works on the ground that—

• (a) they were works which, if a control order had not been in force, the authority could have required some person to carry out under any provision of this Part or under any other enactment relating to housing or public health, and

• (b) the works could not be postponed until after the determination of the appeal by the county court because they were urgently required for the sake of the safety, welfare or health of persons living in the house, or other persons.

• (3) Expenditure reasonably incurred by the authority in carrying out works so approved—

• (a) may be deducted by the authority out of the balances which they are liable to pay to the dispossessed proprietor under paragraph 18, and

• (b) so far as not so deducted, is a charge on the premises and on all estates and interests in the premises;

and the premises subject to the charge include any part of the premises which was excluded from the provisions of the order under section 380 (modification of order where proprietor resides in part of the house).

• (4) The charge takes effect as from the date when the control order is revoked and the expenditure so charged carries interest from that date at such reasonable rate as the authority may determine.

• (5) The local housing authority have for the purposes of enforcing the charge all the same powers and remedies, under the Law of Property Act 1925 and otherwise, as if they were mortgagees by deed having powers of sale and lease, of accepting surrenders of leases and of appointing a receiver.

• (6) The power of appointing a receiver is exercisable at any time after the expiration of one month from the date when the charge takes effect.

Revocation of control order on further appeal

20

• (1) If on an appeal from a decision of the county court confirming a control order it is determined that the control order should be revoked, but the local housing authority satisfy the court hearing the appeal—

• (a) that they are in the course of carrying out works in the house which, if a control order were not in force, they would have power to require some person to carry out under any provision of this Part of this Act or under any other enactment relating to housing or public health, and

• (b) that the carrying out of the works could not be postponed until the time when the control order could no longer be revoked by order of any court on an appeal against the order because the works were urgently required for the sake of safety, welfare or health of persons living in the house, or other persons,