Legalize / United Kingdom / Public General Act

Housing Act 1985

Type Public General Act

Publication 1985-10-30

Last updated 2025-05-01

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(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

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,

the court may suspend the revocation of the control order until the works have been completed.

(2) If on the hearing by the county court of an appeal against a control order the appellant indicates—

(a) that an appeal may be brought against any decision of the county court confirming the order, and

(b) that certain works ought not, unless the control order is confirmed on the further appeal, to be works the cost of which can be recovered by the local housing authority under paragraph 4 or 16,

the county court may direct that those works shall not be works of which the cost may be so recovered if they are begun before the time when the further appeal is finally determined and the control order is not confirmed on that appeal.

Revocation of control order by county court on appealagainst refusal to revoke.

21

(1) The provisions of this paragraph apply where a control order is revoked by the county court on an appeal under section 393 (appeal against refusal of local housing authority to revoke order).

(2) If the local housing authority represent to the court that revocation of the control order would unreasonably delay completion of works of which particulars were given in the management scheme, and which the authority have begun to carry out the court shall take the representations into account and may, if it thinks fit, revoke the control order as from the time when the works are completed.

(3) The court may make an order under which the revocation does not take effect until the time for appealing against the decision of the county court has expired and any appeal brought within that time has been finally determined.

(4) The court may approve the taking of any of the following steps, to take effect on the revocation of the control order, that is—

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

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

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

(5) Where the house will on the revocation of the control order be charged with any sum in favour of the local housing authority by virtue of any provision of this Schedule, the court may make it a condition of the revocation of the order that the appellant first pays off to the authority that sum or such part of that sum as the court may specify.

(6) 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.

Part IV — Control Order Followed by Compulsory Purchase Order

Introductory

22

The provisions of this Part of this Schedule apply where the local housing authority make a control order with respect to a house and within eight weeks of the making of that order make a compulsory purchase order for the acquisition of the house under Part II of this Act (provision of housing accommodation).

Preparation and service of management scheme

23

(1) The local housing authority need not prepare or serve a management scheme under section 386 until they are notified by the Secretary of State of his decision to confirm or not to confirm the compulsory purchase order.

(2) The time within which copies of the scheme are to be served under section 386 is—

(a) if the Secretary of State’s decision is not to confirm the compulsory purchase order, eight weeks from the date on which that decision is notified to the authority;

(b) if the Secretary of State’s decision is to confirm the compulsory purchase order, eight weeks from the time at which the compulsory purchase order becomes operative.

Control order ceases to have effect on acquisition of house

24

Where the compulsory purchase order is confirmed by the Secretary of State, the control order ceases to have effect—

(a) if the local housing authority enter into a contract to purchase the house, on the date when the contract is made;

(b) if the local housing authority, in pursuance of a notice served under section 11 of the Compulsory Purchase Act 1965, enter and take possession of the house or serve a notice under section 583 of this Act (power to take possession without displacing tenant), on the date when the notice under section 11 is served.

Balances payable to dispossessed proprietor

25

(1) Where a control order ceases to have effect by virtue of paragraph 24, the local housing authority shall pay to the dispossessed proprietor the balance which from time to time accrued to the authority after deducting from the rent or other payments received by them from persons occupying the house—

(a) the compensation payable to him by the authority, 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) The local housing authority shall give notice to the dispossessed proprietor informing him of the balances which they propose to pay him under this paragraph and of his right to appeal.

(3) The dispossessed proprietor may, within 21 days of the service of the notice or such longer period as the local housing authority may in writing allow, appeal to the county court.

(4) If on such an appeal the court is of opinion that the balances are unduly low for any reason within the control of the local housing 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 shall be deemed to be such greater amount as the court may direct.

(5) The court shall not under sub-paragraph (4) give a direction which will afford to the dispossessed proprietor a sum greater than the amount which, in the opinion of the court, he may have lost by the making of the control order.

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

Recovery of capital expenditure incurred by local housing authority

26

(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 ceases to have effect.

(2) The local housing authority may, by a notice served on the dispossessed proprietor, specify such works as being works—

(a) which the authority could, if the control order were not in force, have required 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) which could not be postponed because they were urgently required for the sake of the safety, welfare or health of persons living in the house, or other persons;

and such a notice shall inform the dispossessed proprietor of his right to appeal.

(3) The dispossessed proprietor may, within 21 days of the service of the notice or such longer period as the local housing authority may in writing allow, appeal to the county court which may confirm, vary or quash the notice.

(4) Expenditure reasonably incurred by the local housing authority in carrying out the works specified in a notice under this paragraph (or specified in such a notice as varied on appeal) may be deducted by the authority from the balances which they are liable to pay to the dispossessed proprietor under paragraph 25.

(5) So far as that expenditure exceeds those balances, it may, if the house is purchased compulsorily, be deducted from the amount payable as compensation, and accordingly any interest payable on that amount shall be calculated after allowing for the deduction.

SCHEDULE 14

PART I — Credits to the Account

For each year a local housing authority who are required to keep a Housing Revenue Account shall carry to the credit of the account amounts equal to the items listed in this Part of this Schedule.

Item 1: rents

The income of the authority for the year from rents and charges in respect of houses and other property within the account.

This item does not include—

Item 2: charges for services and facilities

The income of the authority for the year in respect of services or facilities provided by them in connection with the provision by them of houses and other property within the account.

This item includes, in particular, income in respect of services or facilities provided under sections 10 and 11 (power to provide furniture, board and laundry facilities), but not payments for the purchase of furniture or hire-purchase instalments for furniture.

Item 3: housing subsidy

Housing subsidy payable to the authority for the year.

Item 4: rent rebate subsidy

Rent rebate subsidy payable to the authority for the year under Part II of the Social Security and Housing Benefits Act 1982, to the extent that it is calculated by reference to Housing Revenue Account rebates within the meaning of that Part, or the cost of administering such rebates.

Item 5: certain contributions

Contributions of any description paid to the authority for the year towards expenditure falling to be debited to the account (for that or any other year).

Item 6: investment income

Income, and receipts in the nature of income, arising to the authority for the year from the investment or other use of—

Item 7: income from proceeds of disposals

Income of the authority arising from the investment or other use of capital money received by the authority in respect of the sale or other disposal of houses or other property within the account.

This item does not apply—

Any such direction may be varied or revoked by a further direction.

Item 8: sums transferred from the Housing Repairs Account

Sums transferred from the Housing Repairs Account in accordance with section 419(5) or (6) (credit balance at end of year or on ceasing to maintain account).

PART II — Debits to the Account

For each year the authority shall debit to the account amounts equal to the items listed in this Part of this Schedule.

Item 1: loan charges

The loan chages which the authority are liable to pay for the year in respect of money borrowed for any of the following purposes—

Item 2: rents, rates, taxes and other charges

The rents, rates, taxes and other charges which the authority are liable to pay for the year in respect of houses and other property within the account.

This item does not include, as respects occupied houses within the account other than mentioned below, rates and charges other than water rates or charges or owner’s drainage rates (within the meaning of section 63(2)(a) of the Land Drainage Act 1976).

The houses to which the above exception does not apply are—

Item 3: expenditure on repairs, maintenance and management

The expenditure (including loan charges) of the authority for the year in respect of the repair, maintenance, supervision and management of houses and other property within the account.

This item does not include expenditure properly debited to the authority’s Housing Repairs Account.

Item 4: contributions to Housing Repairs Account

Contributions from the account to the Housing Repairs Account.

PART III — Supplementary Provisions with Respect to Matters Arising Before 1972

Land acquired for re-development.

1

The reference in section 417(1) (d) to land acquired for the purposes of Part II includes—

(a) land which a local authority were deemed to have acquired under Part V of the Housing Act 1957 by virtue of section 57(6) of that Act (land acquired for re-development in pursuance of re-development plan) before the repeal of that section on 25th August 1969, and

(b) any structures on such land which were made available to a local authority under section 1 of the Housing (Temporary Accommodation) Act 1944 (prefabs).

Houses and other property brought within the account under s. 50 of the Housing (Financial Provisions) Act 1958.

2

The houses and other property within an authority’s Housing Reveneue Account include any property brought within the account before 10th August 1972—

(a) with the consent of a Minister given under section 50(1)(e) of the Housing (Financial Provisions) Act 1958, or

(b) by virtue of section 50(2) of that Act (houses vesting in local authority on default of another person).

Income arising from balance left on abolition of Housing Equalisation Account.

3

(1) For each year the authority shall carry to the credit of the Housing Revenue Account amounts equal to any income, and receipts in the nature of income, arising to the authority for the year from the investment of other use of money representing a sum treated as a capital receipt in pursuance of paragraph 4 of Schedule 10 to the Housing Finance Act 1972 (balance left at 31st March 1972 on abolition of Housing Equalisation Account).

(2) In complying with the requirements of this paragraph the authority shall act in accordance with any directions which may be given by the Secretary of State.

(3) Any such directions may be varied or revoked by further directions.

Housing provided on or before 6th February 1919.

4

References in section 417 (the Housing Revenue Account) or this Schedule to property provided under Part II (provision of housing) do not include property provided on or before 6th February 1919.

Money borrowed for the execution of works assisted under the Housing (Rural Workers) Act 1926.

5

Section 417(4) (investment income to be carried to Housing Revenue Account), and item 1 of Part II of this Schedule (loan charges to be debited to the account) apply to money borrowed for the execution of works in respect of which, before 10th August 1972—

(a) a Minister made a contribution under section 4(2A) of the Housing (Rural Workers) Act 1926, or

(b) the local authority for the purposes of that Act gave assistance under that Act,

as they apply to money borrowed for the provision of housing accommodation under Part II.

Adjustments affecting the account.

6

(1) Where, but for the coming into force of the Housing Finance Act 1972, a correction of a Housing Revenue Account for the year 1971-72 or any earlier year would have been effected by entering a credit or debit in the account for the year 1972-73 or any later year, the correction shall be made notwithstanding the provisions of this Act as to the nature of the credits or debits to be entered in the account.

(2) Any direction given under section 24 of the Town and Country Planning Act 1959 (adjustment of accounts on appropriation of land) concerning the Housing Revenue Account of a local authority shall apply in relation to the account to be kept under this Act as it would have applied to the account to be kept under the Housing (Financial Provisions) Act 1958.

Proceeds from certain demolitions.

7

(1) The authority shall credit to the account an amount equal to the net proceeds for the year derived by the authority from any demolition of—

(a) structures made available to a local authority under section 1 of the Housing (Temporary Accommodation) Act 1944 (prefabs),

(b) buildings demolished upon ceasing to be used for the purpose of providing housing accommodation in pursuance of arrangements approved before 10th August 1972 under section 16 of the Housing (Financial Provisions) Act 1958 (use of war buildings for temporary housing accommodation), or

(c) houses to which section 92 of the Housing Act 1964 applied before its repeal on 10th August 1972 (aluminium "B.2' houses).

(2) In this paragraph “net proceeds” means the sums realised by the authority by the disposal of materials derived from the demolished building or structure, after deducting the cost of the demolition and any cost incurred in reinstating the site of the building or structure.

PART IV — Rate Fund Contributions to the Account

Amenities shared by the whole community.

1

(1) Where benefits or amenities arising from the exercise of a local housing authority’s functions under Part II (provision of housing) and provided for the persons housed by the authority are shared by the community as a whole, the authority shall make such contributions from their general rate fund to their Housing Revenue Account as, in their opinion and having regard to the amounts of the contributions and the period over which they are made, will properly reflect the community’s share of the benefits or amenities.

(2) Where it appears to the Secretary of State that an authority have failed to comply with sub-paragraph (1), either generally or in a particular case, he may give them such directions as appear to him appropriate to ensure compliance.

(3) The direction may contain particulars as to the amounts of the contributions and the years for which they are to be made.

(4) Before giving a direction the Secretary of State shall consult with the authority.

Land disposed of at less than market value.

2

The Secretary of State in giving his consent under any enactment for the disposal at less than market value of land within the account may impose a condition requiring the authority to make a contribution from their general rate fund for such years and of such amount, or of any amount calculated in such manner, as he may determine.

Rent rebates in excess of subsidy.

3

There shall be credited to the account any contribution made under section 34(1) of the Social Security and Housing Benefits Act 1982 (housing benefits: contribution from general rate fund representing excess of rent rebates over subsidy).

Deficits in the account.

4

(1) If for any year a deficit is shown in the account, the authority shall carry to the credit of the account a contribution from their general rate fund of an amount equal to the deficit.

(2) The authority may also carry to the credit of the account, in addition to any amount required by sub-paragraph (1), such further amounts, if any, as they may think fit.

PART V — Other Supplementary Provisions

Credit balances in the account.

1

(1) An authority who keep a Housing Revenue Account may from time to time carry to the credit of their general rate fund the whole or part of any balance in the account.

(2) Subject to sub-paragraph (1), if at the end of a year a credit balance is shown in an authority’s Housing Revenue Account it shall be carried forward and credited to the account for the next following year.

Ascertainment of loan charges.

2

(1) In this Schedule “loan charges”—

(a) in relation to money borrowed, means the sums required for the payment of interest on the money and for its repayment (either by instalments or by means of a sinking fund) and the expenses of managing the debt, and

(b) includes loan charges made by an authority as a matter of internal accounting (including charges for debt management), whether in respect of borrowing from a capital fund kept by the authority or in respect of borrowing between accounts kept by the authority for different purposes or otherwise.

(2) Where money borrowed by a local authority for different purposes is carried to a common fund or account, the loan charges in respect of money borrowed for any one of those purposes shall be ascertained by reference to the accounting practice of the authority and the manner in which loan charges are ascertained for the purposes of their internal accounting.

(3) Sub-paragraph (2) has effect subject to any direction under section 420 (directions by Secretary of State to secure proper accounting).

Use of estimated figures.

3

Any requirement of this Schedule as to the crediting or debiting of an amount to the Housing Revenue Account may be met by taking in the first instance an estimate of the amount and making adjustments in the account for a later year when the amount is more accurately known or is finally ascertained.

Adjustment of accounts on appropriation of land.

4

(1) Where land is appropriated by a local housing authority for the purposes of Part II (provision of housing), or on the discontinuance of use for those purposes, such adjustment shall be made in the accounts of the authority as the Secretary of State may direct.

(2) A direction may be either a general direction or a direction for a particular case and may be varied or revoked by a further direction.

(3) Where this paragraph applies section 24 of the Town and Country Planning Act 1959 (which also relates to the adjustment of accounts on the appropriation of land) does not apply.

Duty to supply information.

5

(1) A local housing authority, and any officer or employee of a local housing authority concerned with their housing functions, shall supply the Secretary of State with such information as he may specify, either generally or in any particular case, for the purpose of enabling the Secretary of State to ascertain the state of the authority’s Housing Revenue Account for any year.

(2) A local housing authority shall supply the Secretary of State with such certificates supporting the information required by him as he may specify.

Directions excluding or modifying statutory provisions.

6

(1) Where the Secretary of State is satisfied, on the application of a local housing authority, that any of the provisions of this Part relating to the Housing Revenue Account are inappropriate for any housing accommodation or other property provided by the authority under Part II, he may direct that all or any of those provisions shall not apply to that property, or shall apply subject to such modifications as are specified in the direction.

(2) The Secretary of State may direct that the provisions of this Part relating to the Housing Revenue Account shall apply to a local authority subject to such modifications as are specified in the direction.

(3) A direction may be a general direction or a direction for a particular case, and may be given for such period and subject to such conditions as may be specified in the direction.

(4) A direction may be varied or revoked by a further direction.

Transfers of housing stock between authorities in London.

7

(1) Where houses and other property within the account have been transferred from one authority to another under section 23(3) of the London Government Act 1963 (orders transferring land held by London borough council or Common Council of City of London), the Secretary of State may by order direct, for any of the purposes of this Part—

(a) within whose Housing Revenue Account the transferred houses and property are to be treated as falling, and

(b) how relevant expenditure and income are to be treated in the Housing Revenue Accounts of the authorities to whom the order applies.

(2) The order may be made to apply to a description of local authorities specified in the order or to a specified local authority, and may make different provision in respect of different years or for different purposes in relation to the same year.

(3) An order under this paragraph may amend an order made under section 23(3) of the London Government Act 1963 and may provide that one authority shall pay to another in respect of houses and property to which it relates such amounts calculated by such methods and in respect of such items and such years as appear to the Secretary of State to be appropriate.

(4) An order under this paragraph—

(a) shall be made by the Secretary of State with the concurrence of the Treasury, and

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

(5) Before making an order the Secretary of State shall consult such associations of local authorities as appear to him to be concerned and with any local authority with whom consultation appears to be desirable.

Contributions in respect of land in general improvement area.

8

Where a contribution under section 259 (contributions by Secretary of State towards expenditure on general improvement area) has been paid towards expenditure incurred by a local housing authority in relation to land held by them for the purposes of Part II (provision of housing), neither the expenditure nor the contribution shall be carried to the Housing Revenue Account except with the consent of the Secretary of State.

SCHEDULE 15

Part I — Loans Under the Housing (Rural Workers) Acts 1926 to 1942

The Housing (Rural Workers) Acts 1926 to 1942, and any enactment so far as it relates to the rate of interest payable on a loan under those Acts, continue to have effect in relation to a loan made under section 2 of the Housing (Rural Workers) Act 1926 before 10th August 1972.

Part II — ANNUAL GRANTS FOR AGRICULTURAL HOUSING

Annual grants by local housing authorities

1

(1) Annual grants shall, notwithstanding the abolition of exchequer contributions by paragraph 6(1) of Schedule 18 to the Housing Act 1996, continue to be payable by local housing authorities in respect of agricultural housing provided in pursuance of arrangements made under section 46 of the Housing (Financial Provisions) Act 1958.

(2) Subject to the provisions of this Part of this Schedule, such annual grants are payable, in respect of any house as to which the Secretary of State originally undertook to make annual contributions under section 46 of the Housing (Financial Provisions) Act 1958, for the remainder of the 40 year period for which that undertaking was given.

(3) The amount paid by way of annual grant to the owner of a house shall not be less than the amount of the last annual contribution paid by the Secretary of State in respect of the house.

Conditions of payment of annual grant

2

(1) It is a condition of the payment of a grant in respect of a house in any year that throughout the year the house—

(a) is reserved for members of the agricultural population, and

(b) if let, is let at a rent not exceeding the limit applicable in accordance with the following provisions of this paragraph,

and that in the opinion of the local housing authority all reasonable steps have been taken to secure the maintenance of the house in a proper state of repair during the year.

3

(1) In the case of a house completed on or after 18th April 1946 the payment of a grant for any year during which the house is at any time occupied by a member of the agricultural population in pursuance of a contract of service and otherwise than as a tenant is also subject to the following condition.

(2) The condition is that if the contract of service is terminated—

(a) by less than four weeks’ notice given by the employer, or

(b) by dismissal of the employee without notice, or

the employer or his personal representatives will permit the employee (or, in the case of his death, any person residing with him at his death) to continue to occupy the house free of charge from the determination of the contract until the expiration of a period of four weeks beginning with the date on which the notice is given, or, if the contract is determined otherwise than by notice, with the date on which it is determined.

Grants payable to owners by local housing authority

4

A grant shall not be made or shall be reduced, as the local housing authority think fit, if (before the grant is paid) the local housing authority are of the opinion that during the whole or the greater part of the period to which the payment of the grant is referable the house has not been available as a dwelling fit for habitation, unless the authority is satisfied that that could not with reasonable diligence have been achieved.

No further payments if house vests in local housing authority

5

Where a house which has been provided under arrangements under section 46 of the Housing (Financial Provisions) Act 1958 becomes vested in the local housing authority making the arrangements, no further sums are payable by . . . the authority in respect of the house under this Part of this Schedule.

Part III — Contributions for Improvement of Dwellings by Housing Authorities

(s. 9 of the Housing (Financial Provisions) Act 1958; s. 13 of the House Purchase and Housing Act 1959)

1

(1) Subject to sub-paragraph (2), contributions by the Secretary of State to a local authority remain payable—

(a) under section 9 of the Housing (Financial Provisions) Act 1958 (contributions over a period of 20 years towards the cost to local authorities of works of conversion or improvement) in pursuance of proposals approved before 25th August 1969, and

(b) under section 13 of the House Purchase and Housing Act 1959 (contributions over a period of 20 years in respect of standard amenities provided by local authorities), in pursuance of applications approved before 25th August 1969.

(2) No contribution is payable under this paragraph in respect of a dwelling within a local housing authority’s Housing Revenue Account or a new town corporation’s housing account.

(3) The contributions are payable at such times and in such manner as the Treasury may direct, and subject to such conditions as to records, certificates, audit or otherwise as the Secretary of State may, with the approval of the Treasury, impose.

(4) The amount or duration of any contribution payable under this paragraph to which section 25(2) of the Housing (Financial Provisions) Act 1958 applied immediately before the commencement of this Act (payments arising out of the exercise of housing powers by county councils) may be reduced by the the Secretary of State at his discretion.

(ss. 17 to 20 of the Housing Act 1969)

2

(1) Contributions by the Secretary of State to a housing authority remain payable under section 18 or 19 of the Housing Act 1969 (improvement contributions or standard contributions payable over a period of 20 years for dwellings converted or improved by the authority) in pursuance of applications approved before 2nd December 1974.

(2) The contributions are payable at such times and in such manner as the Treasury may direct, and subject to such conditions as to records, certificates, audit or otherwise as the Secretary of State may, with the approval of the Treasury, impose.

(3) No contribution is payable under this paragraph in respect of a dwelling within a local housing authority’s Housing Revenue Account or a new town corporation’s housing account.

(4) The amount or duration of any contribution payable under this paragraph to which section 25(2) of the Housing (Financial Provisions) Act 1958 Act applied immediately before the commencement of this Act (payments arising out of the exercise of housing powers by county councils) may be reduced by the Secretary of State at his discretion.

(s. 79 of the Housing Act 1974)

3

(1) Subject to sub-paragraph (2), contributions by the Secretary of State to a housing authority remain payable under section 79 of the Housing Act 1974 (improvement contributions payable over a period of 20 years) in pursuance of applications approved before 8th August 1980.

(2) No contribution is payable under this paragraph in respect of dwellings within a local housing authority’s Housing Revenue Account or a new town corporation’s housing account.

(3) The contributions are payable subject to such conditions as to records, certificates, audit or otherwise as the Secretary of State may, with the approval of the Treasury, impose.

Part IV — Town Development Subsidy

Transitional town development subsidy

1

(1) Transitional town development subsidy is payable each year, subject to the following provisions of this Part of this Schedule, to a sending authority to whom town development subsidy under section 9 of the Housing Finance Act 1972 was payable for the year 1974-75; and the amount of the subsidy, subject to the following provisions of this Schedule, is the amount of town development subsidy payable to the authority for the year 1974-75.

(2) The subsidy is payable for the credit of the sending authority’s general rate fund.

2

(1) The subsidy is payable by the Secretary of State at such times and in such manner as the Treasury may direct, and subject to such conditions as to records, certificates, audit or otherwise as the Secretary of State may, with the approval of the Treasury, impose.

(2) The payment of subsidy is subject to the making of a claim for it in such form and containing such particulars as the Secretary of State may from time to time determine.

(3) The amount of the subsidy for any year shall be calculated to the nearest pound, by disregarding an odd amount of £0·50, or less, and by treating an odd amount exceeding £0·50 as a whole pound.

(4) A direction or determination under this paragraph may contain supplementary or incidental provisions and may be made to apply to a specified description of authorities or to a specified authority.

Reduction or discontinuance of subsidy

3

(1) The Secretary of State may reduce or discontinue a sending authority’s transitional town development subsidy if a dwelling in respect of which it is payable—

(a) has been demolished,

(b) has been disposed of by the receiving authority,

(d) in any other circumstances he considers relevant.

(2) The Secretary of State may from time to time determine for the purposes of sub-paragraph (1)—

(a) the circumstances in which a dwelling is to be treated as having been demolished or disposed of,

(b) the circumstances in which a dwelling is to be treated as not fit to be used, or as not being used, for letting as a dwelling,

(c) in which circumstances other than those mentioned in sub-paragraph (1)(a) to (c) an authority’s transitional town development subsidy is to be reduced or discontinued, and

(d) the method by which any calculation is to be made;

and the power conferred by paragraph (b) above also includes power to determine what constitutes letting as a dwelling.

(3) A determination under this paragraph may contain supplementary or incidental provisions and may be made to apply to a specified description of authorities or dwellings or to a specified authority.

Payments to receiving authority

4

(1) Where transitional town development subsidy is payable, the sending authority shall for each year pay to the receiving authority four times the amount of the sending authority’s transitional town development subsidy attributable to dwellings of the receiving authority which are available in that year for tenants from the sending authority.

(2) The payments are for the credit of the receiving authority’s general rate fund.

Communication of subsidy and payments to receiving authority

5

(1) The Secretary of State may, with the agreement of the sending authority and the receiving authority, determine—

(a) to commute further payments of transitional town development subsidy into a single payment of an amount to be determined by him or calculated in a manner determined by him, and

(b) to commute the corresponding payments by the sending authority to the receiving authority under paragraph 4 into a single payment of four times that payable under paragraph (a).

(2) In making a determination the Secretary of State shall make such allowance, if any, as appears to him appropriate for circumstances in which, if there were no commutation, his power under paragraph 3 to reduce or discontinue the sending authority’s transitional town development subsidy might be exercised.

Meaning of “receiving authority”

6

In this part of this Schedule “receiving authority” means the council of a receiving district within the meaning of the Town Development Act 1952.

SCHEDULE 16

The rate of interest

1

(1) The rate of interest shall be whichever is for the time being the higher of—

(a) the standard national rate, or

(b) the applicable local average rate.

(2) The rate shall be capable of being varied by the local authority whenever a change in either or both of those rates requires it; and the amount of the periodic payments shall be capable of being changed accordingly.

The standard national rate

2

The standard national rate is the rate for the time being declared as such by the Secretary of State after taking into account interest rates charged by building societies in the United Kingdom and any movement in those rates.

The local average rate

3

A local authority shall for every period of six months declare, on a date falling within the month immediately preceding that period—

(a) a rate applicable to the advances and transfers mentioned in section 438(1)(a) and (c) (advances under section 435 and transfers of mortgages under section 442), and

(b) a rate applicable to sums left outstanding as mentioned in section 438(1)(b) (sums left outstanding on disposal of house).

4

(1) The rate declared under paragraph 3(a) or (b) shall be a rate calculated in such manner as the Secretary of State may determine.

(2) A determination under this paragraph—

(a) may make different provision for different cases or descriptions of cases, including different provision for different areas, for different local authorities or for different descriptions of local authorities; and

(b) may be varied or withdrawn by a subsequent determination.

(3) As soon as practicable after making a determination under this paragraph, the Secretary of State shall send a copy of the determination to the local authority or authorities to which it relates.

Variation of rate of interest

5

(1) Where on a change of the standard national rate or the applicable local average rate a rate of interest is capable of being varied, the local authority shall vary it.

(2) The authority shall serve on the person liable to pay the interest notice in writing of the variation not later than two months after the change.

(3) The variation shall take effect with the first payment of interest due after a date specified in the notice, which—

(a) if the variation is a reduction, shall be not later than one month after the change, and

(b) if the variation is an increase, shall not be earlier than one month nor later than three months after the service of the notice.

6

(1) On a variation of the rate of interest, the local authority may make a corresponding variation of the periodic payments.

(2) The authority shall do so if the period over which the repayment of principal is to be made would otherwise be reduced below the period fixed when the mortgage was effected.

(3) The variation shall be notified and take effect together with the variation of the rate of interest.

Directions by Secretary of State

7

(1) The Secretary of State may by notice in writing to a local authority direct it to treat a rate specified in the notice as being the higher of the two rates mentioned in paragraph 1, either for a period specified in the notice or until further notice; and the preceding provisions of this Schedule have effect accordingly.

(2) A direction so given may be varied or withdrawn by a further notice in writing.

SCHEDULE 17

Vesting of house with leave of court

1

(1) The authority may, if the county court gives it leave to do so, by deed vest the house in itself—

(a) for the estate and interest in the house which is the subject of the mortgage and which the authority would be authorised to sell or convey on exercising its power of sale, and

(b) freed from all estates, interests and rights to which the mortgage has priority.

but subject to all estates, interests and rights which have priority to the mortgage.

(2) Where application for leave under this paragraph is made to the county court, the court may adjourn the proceedings or postpone the date for the execution of the authority’s deed for such period as the court thinks reasonable.

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

Effect of vesting

2

(1) On the vesting of the house the authority’s mortgage term or charge by way of legal mortgage, and any subsequent mortgage term or charge, shall merge or be extinguished as respects the house.

(2) Where the house is registered under the Land Registration Act 2002, the Chief Land Registrar shall, on application being made to him by the authority, register the authority as the proprietor of the house free from all estates, interests and rights to which its mortgage had priority, and he shall not be concerned to inquire whether any of the requirements of this Schedule were complied with.

(3) Where the authority conveys the house, or part of it, to a person—

(a) he shall not be concerned to inquire whether any of the provisions of this Schedule were complied with, and

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

(4) A house which is vested under this Schedule in a local housing authority shall be treated as acquired under Part II (provision of housing).

Compensation and accounting

3

(1) Where the authority has vested the house in itself under paragraph 1, it shall appropriate a fund equal to the aggregate of—

(a) the amount agreed between the authority and the mortgagor or determined by the district valuer as being the amount which under sub-paragraph (2) is to be taken as the value of the house at the time of the vesting, and

(b) interest on that amount, for the period beginning with the vesting and ending with the appropriation, at the rate prescribed for that period under section 32 of the Land Compensation Act 1961 (rate prescribed for compulsory purchase cases where entry is made before compensation is paid).

(2) The value of the house at the time of the vesting shall be taken to be the price which, at that time, the interest vested in the authority would realise if sold on the open market by a willing vendor on the assumption that any prior incumbrances to which the vesting is not made subject would be discharged by the vendor.

(3) The fund shall be applied in the following order—

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

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

(d) in recovering any amount which falls to be paid under the covenant required by section 35 or 155 (repayment of discount, etc. on disposal) or paragraph 6 of Schedule 8 (terms of shared ownership lease: payment for outstanding share on disposal) or any provision of the conveyance or grant to the like effect;

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

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

Modifications in case of conveyance or grant before 8th August 1980

4

In a case to which this Schedule applies by virtue of section 452(6) (disposals before 8th August 1980 of property held by local authorities for housing purposes), the preceding paragraphs have effect with the following modifications—

(a) for “house” substitute “ property ”;

(b) for paragraph (a) of paragraph 3 (1) (value of house) substitute—

(a) the price at which the authority could have re-acquired the property by virtue of the condition mentioned in section 452(6)(b),

and omit paragraph 3(2) (which provides for ascertaining the value of the house);

SCHEDULE 18

Repayment of advance

1

(1) The advance shall be repaid with interest within such period not exceeding 30 years as may be agreed upon.

(2) The rate of interest is per cent, in excess of the rate of interest which, one month before the date on which the terms of the advance were settled, was the rate fixed by the Treasury in respect of loans to local authorities for the purposes of Part V of the Housing Act 1957 (provision of housing), as follows—

(a) where the time referred to is before 27th February 1964, the rate so fixed under section 1 of the Public Works Loans Act 1897;

(b) where the time referred to is on or after 27th February 1964 and before 1st April 1968, the rate so fixed under section 2 of the Public Works Loans Act 1964 in respect of loans made on the security of local rates, or, where there was more than one rate so fixed, such of those rates as the Treasury have directed in that behalf under that section;

(c) where the time referred to is on or after 1st April 1968, the rate determined under section 6(2) of the National Loans Act 1968 in respect of local loans of that class made on the security of local rates, subject to any relevant direction given by the Treasury under that subsection.

(3) The repayment may be made either by equal instalments of principal or by an annuity of principal and interest combined; and all payments on account of principal or interest shall be made either weekly or at such other periods not exceeding half a year as may be agreed.

(4) The proprietor of a house in respect of which an advance has been made may at any of the usual quarter days, after one month’s written notice, and on paying all sums due on account of interest, repay to the local authority—

(a) the whole of the outstanding principal of the advance, or

(b) any part of it, being £10 or a multiple of £10;

and where the repayment is made by an annuity of principal and interest combined, the amount so outstanding, and the amount by which the annuity will be reduced where a part of the advance is paid off, shall be determined by a table annexed to the instrument securing the repayment of the advance.

The statutory conditions

2

(1) The house of which the ownership was acquired by means of the advance shall be held subject to the following conditions (in this Schedule referred to as “the statutory conditions”):—

(a) Every sum for the time being due in respect of principal or interest for the advance shall be punctually paid:

(b) The proprietor shall reside in the house:

(c) The house shall be kept insured against fire to the satisfaction of the local authority, and the receipts for the premiums produced when required by them:

(d) The house shall be kept in good sanitary condition and good repair:

(e) The house shall not be used for the sale of intoxicating liquors, or in such a manner as to be a nuisance to adjacent houses:

(f) The local authority shall have power to enter the house by any person, authorised by them in writing for the purpose, at all reasonable times for the purpose of ascertaining whether the statutory conditions are complied with.

(2) The statutory condition as to residence has effect for a period of three years from the date when the advance is made, or from the date on which the house is completed, whichever is the later.

(3) The other statutory conditions have effect until the advance has been fully repaid, with interest, or the local authority have taken possession or ordered a sale under this Schedule.

Condition as to residence may be dispensed with or suspended

3

(1) The statutory condition as to residence may at any time be dispensed with by the local authority.

(2) The local authority may allow a proprietor to permit, by letting or otherwise, a house to be occupied as a furnished house by some other person—

(a) during a period not exceeding four months in all in any twelved months, or

(b) during his absence from the house in the performance of any duty arising from or incidental to any office, service or employment held or undertaken by him;

and the statutory condition as to residence is suspended while the permission continues.

(3) Where the proprietor of a house subject to the statutory conditions dies, the condition requiring residence is suspended until th expiration of twelve months from the death, or any earlier date at which the personal representatives transfer the ownership or interest of the proprietor in the course of administration.

(4) Where the proprietor of any such house becomes bankrupt, or his estate falls to be administered in accordance with an order under section 421 of the Insolvency Act 1986, and in either case an arrangement under this Schedule is made with the trustee in bankruptcy, the local authority may, if they think fit, suspend the condition as to residence during the continuance of the arrangement.

(5) Where an advance has been made in pursuance of section 7(1) of the Small Dwellings Acquisition Act 1899 (power to make advance on strength of undertaking to begin residence), the statutory condition requiring residence is suspended during the period allowed before residence must be begun.

Personal liability and powers of the proprietor

4

(1) The proprietor of the house of which the ownership was acquired by means of the advance is personally liable for the repayment of any sum due in respect of the advance until he ceases to be proprietor by reason of a transfer made in accordance with this paragraph.

(2) The proprietor of the house may with the permission of the local authority (which shall not be unreasonably withheld) at any time transfer his interest in the house, but any such transfer shall be made subject to the statutory conditions.

(3) The provisions of sub-paragraph (2) requiring the consent of the local authority to the transfer of the proprietor’s interest in the house do not apply to a charge on that interest made by the proprietor, so far as the charge does not affect any rights or powers of the local authority under this Schedule.

Circumstances in which local authority may takepossession or order sale.

5

(1) Where default is made in complying with the statutory condition as to residence, the local authority may take possession of the house, and where default is made in complying with any of the other statutory conditions, whether the statutory condition as to residence has or has not been complied with, the local authority may either take possession of the house or order the sale of the house without taking possession.

(2) In the case of the breach of any condition other than that of punctual payment of the principal and interest of the advance, the authority shall, previously to taking possession or ordering a sale, by notice in writing delivered at the house and addressed to the proprietor, call on the proprietor to comply with the condition, and if the proprietor—

(a) within 14 days after the delivery of the notice gives an undertaking in writing to the authority to comply with the notice, and

(b) within two months after the delivery of the notice complies with it,

the authority shall not take possession or, as the case may be, order a sale.

(3) In the case of the bankruptcy of the proprietor of the house, or in the case of a deceased proprietor’s estate falling to be administered in accordance with an order under section 421 of the Insolvency Act 1986, the local authority may either take possession of the house or order the sale of the house without taking possession, and shall do so except in pursuance of some arrangement to the contrary with the trustee in bankruptcy.

Recovery of possession and disposal of house

6

(1) Where a local authority take possession of a house, all the estate, right, interest and claim of the proprietor in or to the house shall vest in and become the property of the local authority, and the authority may either retain the house under their own management or sell or otherwise dispose of it as they think expedient.

(2) Where a local authority take possession of a house, they shall pay to the proprietor either—

(a) such sum as may be agreed upon, or

(b) a sum equal to the value of the interest in the house at the disposal of the local authority, after deducting the amount of the advance then remaining unpaid and any sum due for interest;

and that value, in the absence of a sale and in default of agreement, shall be settled by a county court judge as arbitrator or, if the Lord Chancellor so authorises, by a single arbitrator appointed by the county court judge, . . . shall apply to any such arbitration.

(3) The sum so payable to the proprietor if not paid within three months after the date of taking possession shall carry interest at the rate of three per cent. per annum from the date of taking possession.

(4) All costs of or incidental to the taking possession, sale or other disposal of the house (including the costs of the arbitration, if any) incurred by the local authority, before the amount payable to the proprietor has been settled either by agreement or arbitration, shall be deducted from the amount otherwise payable to the proprietor.

(5) Where the local authority are entitled under this Schedule to take possession of a house, possession may be recovered in the county court whatever the annual value of the house for rating.

Procedure as to ordering sale

7

(1) Where a local authority order the sale of a house without taking possession, they shall cause it to be put up for sale by auction and shall retain out of the proceeds of sale—

(a) any sum due to them on account of the interest or principal of the advance, and

(b) all costs, charges and expenses properly incurred by them in or about the sale of the house,

and shall pay over the balance (if any) to the proprietor.

(2) If the local authority are unable at the auction to sell the house for such a sum as will allow of the payment out of the proceeds of sale of the interest and principal of the advance then due to the authority, and the costs, charges and expenses referred to above, they may take possession of the house in manner provided by this Schedule, but shall not be liable to pay any sum to the proprietor.

List of advances and accounts to be kept

8

(1) A local authority shall keep at their offices a book containing a list of the advances made by them containing—

(a) a description of the house in respect of which the advance was made, and

(b) the amount advanced.

(2) The authority shall enter in the book with regard to each advance—

(a) the amount for the time being repaid,

(b) the name of the proprietor for the time being of the house, and

(3) The book shall be open to inspection at the office of the local authority during office hours free of charge.

(4) Separate accounts shall be kept by every local authority of their receipts and expenditure in relation to advances to which this Schedule applies.

Meaning of “residence”, “ownership” and “proprietor”

9

(1) A person shall not be treated for the purposes of this Schedule as resident in a house unless he is both the occupier of and resident in the house.

(2) In this Schedule “ownership” means such interest, or combination of interests, in a house as, together with the interest of the purchaser of the ownership, will constitute either—

(a) a fee simple in possession, or

(b) a leasehold interest in possession of which at least 60 years are unexpired at the date of the purchase.

(3) Where the ownership of a house is acquired by means of an advance to which this Schedule applies, the purchase of the ownership or, in the case of any devolution or transfer, the person in whom the interest of the purchaser is for the time being vested, is the proprietor of the house for the purposes of this Schedule.

Date of advance

10

For the purposes of this Schedule an advance shall be deemed to have been made on the date on which the instrument securing the repayment of the advance was executed.

SCHEDULE 19

(Section 36 of the Housing (Financial Provisions) Act 1958)

1

(1) Contributions remain payable by the Secretary of State under section 36 of the Housing (Financial Provisions) Act 1958 1958 (contributions over a period of 20 years towards certain grants under Part II of that Act, Part II of the House Purchase and Housing Act 1959 or Part III of the Housing Act 1964) in pursuance of applications made before 25th August 1969.

(2) The contributions are payable at such times and in such manner as the Treasury may direct and subject to such conditions as to records, certificates, audit or otherwise as the Secretary of State may, with the approval of the Treasury, impose.

(Section 16 of the Housing Act 1969)

2

(1) Contributions remain payable by the Secretary of State under section 16 of the Housing Act 1969 (contributions over a period of 20 years towards grants paid under Part I of that Act) in pursuance of applications made before 12th December 1974.

(2) The contributions are payable at such times and in such manner as the Treasury may direct, and subject to such conditions as to records, certificates, audit or otherwise as the Secretary of State may, with the approval of the Treasury, impose.

SCHEDULE 20

Part I — The Agreement to Repurchase

The interest to be acquired

1

In this Schedule “the interest to be acquired” means the interest of the person entitled to assistance by way of repurchase, so far as subsisting in—

(a) he defective dwelling, and

(b) any garage, outhouse, garden, yard and appurtenances occupied and used for the purposes of the dwelling or a part of it.

Request for notice of proposed terms of acquisition

2

(1) A person who is entitled to assistance by way of repurchase, may, within the period of three months beginning with the service of the notice of determination, or that period as extended, request the purchasing authority in writing to notify him of the proposed terms and conditions for their acquisition of the interest to be acquired.

(2) The authority shall, if there are reasonable grounds for doing so, by notice in writing served on the person so entitled, extend, or further extend, the period within which he may make a request under this paragraph (whether or not the period has expired).

Authority’s notice of proposed terms

3

The purchasing authority shall, within the period of three months beginning with the making of a request under paragraph 2, serve on the person so entitled a notice in writing specifying the proposed terms and conditions and stating—

(a) their opinion as to the value of the interest to be acquired, and

(b) the effect of the following provisions of this Part of this Schedule.

Settlement of terms

4

Subject to the provisions of Part II of this Schedule (price payable and valuation), an agreement for the acquisition by the purchasing authority of the interest to be acquired shall contain such provisions as the parties agree or, in default of agreement, are determined in accordance with this Part of this Act to be reasonable.

Service of draft agreement

5

The authority shall, within three months of all the provisions to be included in the agreement being agreed or determined—

(a) draw up for execution by the parties an agreement embodying those provisions, and

(b) serve a copy of the agreement on the person entitled to assistance.

Notice to enter into agreement

6

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