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

(6) Any dispute as to the amount referred to in subsection (4)(a) shall be referred to and determined by the Upper Tribunal; and subsections (1)(a), (4) and (5) of section 4 of the Land Compensation Act 1961 shall, subject to any necessary modifications, apply for the purposes of this section as they apply for the purposes of that Act.

(7) In this section “premises” and “relevant prohibition order” have the same meaning as in section 584A.

604A

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Amount of discount which may be demanded by landlord: right to buy

621A

(1) In this Act “service charge” means an amount payable by a purchaser or lessee of premises—

(a) which is payable, directly or indirectly, for services, repairs, maintenance or insurance or the vendor’s or lessor’s costs of management, and

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

(2) The relevant costs are the costs or estimated costs incurred or to be incurred by or on behalf of the payee, or (in the case of a lease) a superior landlord, in connection with the matters for which the service charge is payable.

(3) For this purpose—

(a) “costs” includes overheads, and

(b) costs are relevant costs in relation to a service charge whether they are incurred, or to be incurred, in the period for which the service charge is payable or in an earlier or later period.

(4) In relation to a service charge—

(a) the “payee” means the person entitled to enforce payment of the charge, and

(b) the “payer” means the person liable to pay it.

(5) But this section does not apply in relation to Part 14.

Introductory tenancies

1A

A tenancy is not a secure tenancy if it is an introductory tenancy or a tenancy which has ceased to be an introductory tenancy—

(a) by virtue of section 133(3) of the Housing Act 1996 (disposal on death to non-qualifying person), or

(b) by virtue of the tenant, or in the case of a joint tenancy every tenant, ceasing to occupy the dwelling-house as his only or principal home.

1B

A tenancy is not a secure tenancy if it is a demoted tenancy within the meaning of section 143A of the Housing Act 1996.

Family intervention tenancies

4ZA

(1) A tenancy is not a secure tenancy if it is a family intervention tenancy.

(2) But a tenancy mentioned in sub-paragraph (1) becomes a secure tenancy if the landlord notifies the tenant that it is to be regarded as a secure tenancy.

(3) In this paragraph “ a family intervention tenancy ” means, subject to sub-paragraph (4), a tenancy granted by a local housing authority in respect of a dwelling-house—

(a) to a person (“ the new tenant ”) against whom a relevant possession order in respect of another dwelling-house—

(i) has been made, in relation to a secure tenancy ...;

(ii) could, in the opinion of the authority, have been so made in relation to such a tenancy; or

(iii) could, in the opinion of the authority, have been so made if the person had had such a tenancy; and

(b) for the purposes of the provision of behaviour support services.

(4) A tenancy is not a family intervention tenancy for the purposes of this paragraph if the local housing authority has failed to serve a notice under sub-paragraph (5) on the new tenant before the new tenant entered into the tenancy.

(5) A notice under this sub-paragraph is a notice stating—

(a) the reasons for offering the tenancy to the new tenant;

(b) the dwelling-house in respect of which the tenancy is to be granted;

(c) the other main terms of the tenancy (including any requirements on the new tenant in respect of behaviour support services);

(d) the security of tenure available under the tenancy and any loss of security of tenure which is likely to result from the new tenant agreeing to enter into the tenancy;

(e) that the new tenant is not obliged to enter into the tenancy or (unless otherwise required to do so) to surrender any existing tenancy or possession of a dwelling-house;

(f) any likely action by the local housing authority if the new tenant does not enter into the tenancy or surrender any existing tenancy or possession of a dwelling-house.

(6) The appropriate national authority may by regulations made by statutory instrument amend sub-paragraph (5).

(7) A notice under sub-paragraph (5) must contain advice to the new tenant as to how the new tenant may be able to obtain assistance in relation to the notice.

(8) The appropriate national authority may by regulations made by statutory instrument make provision about the type of advice to be provided in such notices.

(9) Regulations under this paragraph may contain such transitional, transitory or saving provision as the appropriate national authority considers appropriate.

(10) A statutory instrument containing (whether alone or with other provision) regulations under this paragraph which amend or repeal any of paragraphs (a) to (f) of sub-paragraph (5) may not be made—

(a) by the Secretary of State unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament; ...

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

(11) Subject to this, a statutory instrument containing regulations made under this paragraph—

(a) by the Secretary of State is subject to annulment in pursuance of a resolution of either House of Parliament; ...

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

(12) In this paragraph—

“appropriate national authority”—in relation to England, means the Secretary of State; ......

“ behaviour support agreement ” means an agreement in writing about behaviour and the provision of support services made between the new tenant and the local housing authority concerned (or between persons who include those persons);

“ behaviour support services ” means relevant support services to be provided by any person to—the new tenant; orany person who is to reside with the new tenant;for the purpose of addressing the kind of behaviour which led to the new tenant falling within sub-paragraph (3)(a);

“ family intervention tenancy ” has the meaning given by sub-paragraph (3);

“ the new tenant ” has the meaning given by sub-paragraph (3)(a);

“ relevant possession order ” means—a possession order under section 84 that is made on ground 2, 2ZA or 2A of Part 1 of Schedule 2, ora possession order under section 84A;

“ relevant support services ” means support services of a kind identified in a behaviour support agreement and designed to meet such needs of the recipient as are identified in the agreement.

Accommodation for asylum-seekers

4A

(1) A tenancy is not a secure tenancy if it is granted in order to provide accommodation under section 4 or Part VI of the Immigration and Asylum Act 1999 .

(2) A tenancy mentioned in sub-paragraph (1) becomes a secure tenancy if the landlord notifies the tenant that it is to be regarded as a secure tenancy.

...

4B

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

The condition of the dwelling-house or of any of the common parts has deteriorated owing to acts of waste by, or the neglect or default of, the tenant or a person residing in the dwelling-house and, in the case of an act of waste by, or the neglect or default of, a person lodging with the tenant or a sub-tenant of his, the tenant has not taken such steps as he ought reasonably to have taken for the removal of the lodger or sub-tenant.

The tenant or a person residing in or visiting the dwelling-house—

Ground 2A

The dwelling-house was occupied (whether alone or with others) by a married couple or a couple living together as husband and wife and—

The tenant is the person, or one of the persons, to whom the tenancy was granted and the landlord was induced to grant the tenancy by a false statement made knowingly or recklessly by—

The dwelling-house 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, and—

and

The dwelling-house was made available for occupation by the tenant (or a predecessor in title of his) while works were carried out on the dwelling-house which he previously occupied as his only or principal home and—

The landlord intends, within a reasonable time of obtaining possession of the dwelling-house—

and cannot reasonably do so without obtaining possession of the dwelling-house.

Ground 10A

and that employment has ceased, and

The dwelling-house has features which are substantially different from those of ordinary dwelling-houses and which are designed to make it suitable for occupation by a physically disabled person who requires accommodation of a kind provided by the dwelling-house and—

The landlord is a housing association or housing trust which lets dwelling-houses only for occupation (whether alone or with others) by persons whose circumstances (other than merely financial circumstances) make it especially difficult for them to satisfy their need for housing, and—

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 with special needs and—

The dwelling-house is in England, the accommodation afforded by it is more extensive than is reasonably required by the tenant and—

For this purpose “the relevant date” is—

The matters to be taken into account by the court in determining whether it is reasonable to make an order on this ground include—

1

For the purposes of section 84(2)(b) and (c) (case in which court is not to make an order for possession unless satisfied that suitable accommodation will be available) accommodation is suitable if it consists of premises—

(a) which are to be let as a separate dwelling under a secure tenancy, or

(b) which are to be let as a separate dwelling under a protected tenancy, not being a tenancy under which the landlord might recover possession under one of the Cases in Part II of Schedule 15 to the Rent Act 1977 (cases where court must order possession), or

(c) which are to be let as a separate dwelling under an assured tenancy which is neither an assured shorthold tenancy, within the meaning of Part I of the Housing Act 1988, nor a tenancy under which the landlord might recover possession under any of Grounds 1 to 5 in Schedule 2 to that Act

and, in the opinion of the court, the accommodation is reasonably suitable to the needs of the tenant and his family.

2

In determining whether the accommodation is reasonably suitable to the needs of the tenant and his family, regard shall be had to—

(a) the nature of the accommodation which it is the practice of the landlord to allocate to persons with similar needs;

(b) the distance of the accommodation available from the place of work or education of the tenant and of any members of his family;

(c) its distance from the home of any member of the tenant’s family if proximity to it is essential to that member’s or the tenant’s well-being;

(d) the needs (as regards extent of accommodation) and means of the tenant and his family;

(e) the terms on which the accommodation is available and the terms of the secure tenancy;

(f) if furniture was provided by the landlord for use under the secure tenancy, whether furniture is to be provided for use in the other accommodation, and if so the nature of the furnitire to be provided.

3

Where possession of a dwelling-house is sought on ground 9 (overcrowding such as to render occupier guilty of offence), other accommodation may be reasonably suitable to the needs of the tenant and his family notwithstanding that the permitted number of persons for that accommodation, as defined in section 326(3) (overcrowding: the space standard), is less than the number of persons living in the dwelling-house of which possession is sought.

4

(1) A certificate of the appropriate local housing authority that they will provide suitable accommodation for the tenant by a date specified in the certificate is conclusive evidence that suitable accommodation will be available for him by that date.

(2) The appropriate local housing authority is the authority for the district in which the dwelling-house of which possession is sought is situated.

(3) This paragraph does not apply where the landlord is a local housing authority.

Part V — Approval of Redevelopment Schemes for Purposes of Ground 10A

1

(1) The Secretary of State may, on the application of the landlord, approve for the purposes of ground 10A in Part II of this Schedule a scheme for the disposal and re-development of an area of land consisting of or including the whole or part of one or more dwelling-houses.

(2) For this purpose—

(a) “ disposal ” means a disposal of any interest in the land (including the grant of an option), and

(b) “ redevelopment ” means the demolition or reconstruction of buildings or the carrying out of other works to buildings or land;

and it is immaterial whether the disposal is to precede or follow the redevelopment.

(3) The Secretary of State may on the application of the landlord approve a variation of a scheme previously approved by him and may, in particular, approve a variation adding land to the area subject to the scheme.

2

(1) Where a landlord proposes to apply to the Secretary of State for the approval of a scheme or variation it shall serve a notice in writing on any secure tenant of a dwelling-house affected by the proposal stating—

(a) the main features of the proposed scheme or, as the case may be, the scheme as proposed to be varied,

(b) that the landlord proposes to apply to the Secretary of State for approval of the scheme or variation, and

(c) the effect of such approval, by virtue of section 84 and ground 10A in Part II of this Schedule, in relation to proceedings for possession of the dwelling-house,

and informing the tenant that he may, within such period as the landlord may allow (which shall be at least 28 days from service of the notice), make representations to the landlord about the proposal.

(2) The landlord shall not apply to the Secretary of State until it has considered any representations made to it within that period.

(3) In the case of a landlord to which section 105 applies (consultation on matters of housing management) the provisions of this paragraph apply in place of the provisions of that section in relation to the approval or variation of a redevelopment scheme.

3

(1) In considering whether to give his approval to a scheme or variation the Secretary of State shall take into account, in particular—

(a) the effect of the scheme on the extent and character of housing accommodation in the neighbourhood,

(b) over what period of time it is proposed that the disposal and redevelopment will take place in accordance with the scheme, and

(c) to what extent the scheme includes provision for housing provided under the scheme to be sold or let to existing tenants or persons nominated by the landlord;

and he shall take into account any representations made to him and, so far as they are brought to his notice, any representations made to the landlord.

(2) The landlord shall give to the Secretary of State such information as to the representations made to it, and other relevant matters, as the Secretary of State may require.

4

The Secretary of State shall not approve a scheme or variation so as to include in the area subject to the scheme—

(a) part only of one or more dwelling-houses, or

(b) one or more dwelling-houses not themselves affected by the works involved in redevelopment but which are proposed to be disposed of along with other land which is so affected,

unless he is satisfied that the inclusion is justified in the circumstances.

5

(1) Approval may be given subject to conditions and may be expressed to expire after a specified period.

(2) The Secretary of State, on the application of the landlord or otherwise, may vary an approval so as to—

(a) add, remove or vary conditions to which the approval is subject; or

(b) extend or restrict the period after which the approval is to expire.

(3) Where approval is given subject to conditions, the landlord may serve a notice under section 83or 83ZA (notice of proceedings for possession) specifying ground 10A notwithstanding that the conditions are not yet fulfilled but the court shall not make an order for possession on that ground unless satisfied that they are or will be fulfilled.

6

Where the landlord is a private registered provider of social housing or a housing association registered in the register maintained by Scottish Homes under section 3 of the Housing Associations Act 1985, the Regulator of Social Housing, or Scottish Homes, (and not the Secretary of State) has the functions conferred by this Part of this Schedule.

7

In this Part of this Schedule references to the landlord of a dwelling-house include any authority or body within section 80 (the landlord condition for secure tenancies) having an interest of any description in the dwelling-house.

The tenant or the proposed assignee is obliged to give up possession of the dwelling-house of which he is the secure tenant in pursuance of an order of the court, or will be so obliged at a date specified in such an order.

Proceedings have been begun for possession of the dwelling-house of which the tenant or the proposed assignee is the secure tenant on one or more of grounds 1 to 6 in Part I of Schedule 2 (grounds on which possession may be ordered despite absence of suitable alternative accommodation), or there has been served on the tenant or the proposed assignee a notice under section 83 or 83ZA (notice of proceedings for possession) which specifies one or more of those grounds and is still in force.

Ground 2A

The accommodation afforded by the dwelling-house is substantially more extensive than is reasonably required by the proposed assignee.

The extent of the accommodation afforded by the dwelling-house is not reasonably suitable to the needs of the proposed assignee and his family.

The dwelling-house—

The landlord is a charity and the proposed assignee’s occupation of the dwelling-house would conflict with the objects of the charity.

The landlord is a housing association or housing trust which lets dwelling-houses only for occupation (alone or with others) by persons whose circumstances (other than merely financial circumstances) make it especially difficult for them to satisfy their need for housing and if the assignment were made there would no longer be such a person residing in the dwelling-house.

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 with special needs and a social service or special facility is provided in close proximity to the group of dwelling-houses in order to assist persons with those special needs and if the assignment were made there would no longer be a person with those special needs residing in the dwelling-house.

Ground 10

The dwelling-house is the subject of a management agreement under which the manager is a housing association of which at least half the members are tenants of dwelling-houses subject to the agreement, at least half the tenants of the dwelling-houses are members of the association and the proposed assignee is not, and is not willing to become, a member of the association.

Reference to a management agreement includes a section 247 or 249 arrangement, as defined by section 250A(6) of the Housing and Regeneration Act 2008.

SCHEDULE 3A

Disposals to which this Schedule applies

1

(1) This Schedule applies to the disposal by a local authority of an interest in land as a result of which a secure tenant or an introductory tenant of the authority will become the tenant of a private sector landlord.

(2) For the purposes of this Schedule the grant of an option which if exercised would result in a secure tenant or an introductory tenant of a local authority becoming the tenant of a private sector landlord shall be treated as a disposal of the interest which is the subject of the option.

(3) Where a disposal of land by a local authority is in part a disposal to which this Schedule applies, the provisions of this Schedule apply to that part as to a separate disposal.

(4) In this paragraph “ private sector landlord ” means a person other than an authority or body within section 80 (the landlord condition for secure tenancies).

2

(1) The Secretary of State shall not entertain an application for his consent to a disposal to which this Schedule applies unless the authority certify either—

(a) that the requirements of paragraph 3 as to consultation have been complied with, or

(b) that the requirements of that paragraph as to consultation have been complied with except in relation to tenants expected to have vacated the dwelling-house in question before the disposal;

and the certificate shall be accompanied by a copy of the notices given by the authority in accordance with that paragraph.

(2) Where the certificate is in the latter form, the Secretary of State shall not determine the application until the authority certify as regards the tenants nor originally consulted—

(a) that they have vacated the dwelling-house in question, or

(b) that the requirements of paragraph 3 as to consultation have been complied with;

and a certificate under sub-paragraph (b) shall be accompanied by a copy of the notices given by the authority in accordance with paragraph 3.

(3) References in this Schedule to the Secretary of State’s consent to a disposal are to the consent required by section 32 or 43 (general requirement of consent for disposal of houses or land held for housing purposes).

Requirements as to consultation

3

(1) The requirements as to consultation referred to above are as follows.

(2) The authority shall serve notice in writing on the tenant informing him of—

(a) such details of their proposal as the authority consider appropriate, but including the identity of the person to whom the disposal is to be made,

(b) the likely consequences of the disposal for the tenant, and

(c) the effect of the provisions of this Schedule and , in the case of a secure tenant, of a dwelling-house in England of sections 171A to 171H (preservation of right to buy on disposal to private sector landlord),

and informing him that he may, within such reasonable period as may be specified in the notice, make representations to the authority.

(3) The authority shall consider any representations made to them within that period and shall serve a further written notice on the tenant informing him—

(a) of any significant changes in their proposal, and

(b) that he may within such period as is specified (which must be at least 28 days after the service of the notice) communicate to the Secretary of State his objection to the proposal,

and informing him of the effect of paragraph 5 (consent to be withheld if majority of tenants are opposed).

(4) When a notice has been served under sub-paragraph (3) the authority shall arrange a ballot of the tenants in accordance with sub-paragraph (5) to establish whether or not the tenants wish the disposal to proceed.

(5) The authority shall—

(a) make arrangements for such person as they consider appropriate to conduct the ballot in such manner as that person considers appropriate; or

(b) conduct the ballot themselves.

(6) After the ballot has been held the authority shall serve a notice on each tenant (whether or not he voted in the ballot) informing him—

(a) of the ballot result; and

(b) if the authority intend to proceed with the disposal, that he may within 28 days after the service of the notice make representations to the Secretary of State or (as the case may be) the Welsh Ministers.

Power to require further consultation

4

The Secretary of State may require the authority to carry out such further consultation with their tenants, and to give him such information as to the results of that consultation, as he may direct.

5

(1) The Secretary of State shall not give his consent if the result of a ballot arranged under paragraph 3(4) shows that a majority of the tenants of the dwelling-houses to which the application relates who voted in the ballot do not wish the disposal to proceed; but this does not affect his general discretion to refuse consent on grounds relating to whether a disposal has the support of the tenants or on any other ground.

(2) In making his decision the Secretary of State may have regard to any information available to him; and the local authority shall give him such information as to the representations made to them by tenants and others, and other relevant matters, as he may require.

Guidance

5A

(1) The appropriate person must give guidance to local authorities about complying with the requirements of paragraph 3 as to consultation.

(2) The appropriate person must publish guidance given under this paragraph as soon as reasonably practicable after giving it.

(3) Local authorities must, in complying with the requirements of paragraph 3 as to consultation, have regard to the guidance for the time being in force under this paragraph.

(4) The appropriate person may revoke guidance given under this paragraph.

(5) References in this paragraph to giving guidance include references to giving guidance by varying existing guidance.

(6) In this paragraph “ the appropriate person ” means—

(a) in relation to England, the Secretary of State, and

(b) in relation to Wales, the Welsh Ministers.

Protection of purchasers

6

The Secretary of State’s consent to a disposal is not invalidated by a failure on his part or that of the local authority to comply with the requirements of this Schedule.

Periods during which right to buy is preserved

5A

A period qualifies under this paragraph if it is a period during which, before the relevant time—

(a) the secure tenant, or

(b) his spouse or civil partner(if they are living together at the relevant time), or

was a qualifying person for the purposes of the preserved right to buy or was the spouse or civil partner of such a person and occupied the qualifying dwelling-house as his only or principal home.

7A

(1) The landlord condition shall be treated as having been satisfied in the case of a dwelling-house comprised in a housing co-operative agreement made—

(a) in England and Wales, by a local housing authority, new town corporation or the Development Board for Rural Wales, or

(b) in Scotland, by a local housing authority,

if the interest of the landlord belonged to the housing co-operative.

(2) In sub-paragraph (1) “ housing co-operative agreement ” and “ housing co-operative ”—

(a) as regards England and Wales have the same meaning as in section 27B (agreements with housing co-operatives under superseded provisions), and

(b) as regards Scotland mean an agreement made under section 5 of the Housing Rents and Subsidies (Scotland) Act 1975 and a housing co-operative within the meaning of that section.

7B

The landlord condition shall be treated as having been satisfied in the case of a dwelling-house let under a tenancy falling within section 80(2A) to (2E) at any time if, at that time, the interest of the landlord belonged to—

(a) the Homes and Communities Agency,

(aa) the Greater London Authority, or

(b) the Welsh Ministers.

9A

The tenant condition is not met during any period when a tenancy is a demoted tenancy by virtue of section 20B of the Housing Act 1988 or section 143A of the Housing Act 1996.

Dwelling-house due to be demolished within 24 months

13

(1) The right to buy does not arise if a final demolition notice is in force in respect of the dwelling-house.

(2) A “ final demolition notice ” is a notice—

(a) stating that the landlord intends to demolish the dwelling-house or (as the case may be) the building containing it (“the relevant premises”),

(b) setting out the reasons why the landlord intends to demolish the relevant premises,

(i) the date by which he intends to demolish those premises (“ the proposed demolition date ”), and

(ii) the date when the notice will cease to be in force (unless extended under paragraph 15),

(d) stating that one of conditions A to C in paragraph 14 is satisfied in relation to the notice (specifying the condition concerned), and

(e) stating that the right to buy does not arise in respect of the dwelling-house while the notice is in force.

(3) If, at the time when the notice is served, there is an existing claim to exercise the right to buy in respect of the dwelling-house, the notice shall (instead of complying with sub-paragraph (2)(e)) state—

(a) that that claim ceases to be effective on the notice coming into force, but

(b) that section 138C confers a right to compensation in respect of certain expenditure,

and the notice shall also give details of that right to compensation and of how it may be exercised.

(4) The proposed demolition date must fall within the period of 24 months beginning with the date of service of the notice on the tenant.

(5) For the purposes of this paragraph a final demolition notice is in force in respect of the dwelling-house concerned during the period of 24 months mentioned in sub-paragraph (4), but this is subject to—

(a) compliance with the conditions in sub-paragraphs (6) and (7) (in a case to which they apply), . . .

(b) the provisions of paragraph 15(1) to (7A), and

(6) If—

(a) the dwelling-house is contained in a building which contains one or more other dwelling-houses, and

(b) the landlord intends to demolish the whole of the building,

the landlord must have served a final demolition notice on the occupier of each of the dwelling-houses contained in it (whether addressed to him by name or just as “the occupier”).

An accidental omission to serve a final demolition notice on one or more occupiers does not prevent the condition in this sub-paragraph from being satisfied.

(7) A notice stating that the landlord intends to demolish the relevant premises must have appeared—

(a) in a local or other newspaper circulating in the locality in which those premises are situated (other than one published by the landlord), and

(b) in any newspaper published by the landlord, and

(8) The notice mentioned in sub-paragraph (7) must contain the following information—

(a) sufficient information to enable identification of the premises that the landlord intends to demolish;

(b) the reasons why the landlord intends to demolish those premises;

(d) the date when any final demolition notice or notices relating to those premises will cease to be in force, unless extended or revoked under paragraph 15;

(e) that the right to buy will not arise in respect of those premises or (as the case may be) in respect of any dwelling-house contained in them;

(f) that there may be a right to compensation under section 138C in respect of certain expenditure incurred in respect of any existing claim.

(9) In this paragraph and paragraphs 14 and 15 (other than paragraph 15(7A) any reference to the landlord, in the context of a reference to an intention or decision on his part to demolish or not to demolish any premises, or of a reference to the acquisition or transfer of any premises, includes a reference to a superior landlord.

14

(1) A final demolition notice may only be served for the purposes of paragraph 13 if one of conditions A to C is satisfied in relation to the notice.

(2) Condition A is that the proposed demolition of the dwelling-house does not form part of a scheme involving the demolition of other premises.

(3) Condition B is that—

(a) the proposed demolition of the dwelling-house does form part of a scheme involving the demolition of other premises, but

(b) none of those other premises needs to be acquired by the landlord in order for the landlord to be able to demolish them.

(4) Condition C is that—

(a) the proposed demolition of the dwelling-house does form part of a scheme involving the demolition of other premises, and

(b) one or more of those premises need to be acquired by the landlord in order for the landlord to be able to demolish them, but

(5) For the purposes of sub-paragraph (4) arrangements for the acquisition of any premises are in place if—

(a) an agreement under which the landlord is entitled to acquire the premises is in force, or

(b) a notice to treat has been given in respect of the premises under section 5 of the Compulsory Purchase Act 1965, or

(c) a vesting declaration has been made in respect of the premises under section 4 of the Compulsory Purchase (Vesting Declarations) Act 1981.

(6) In this paragraph—

“ premises ” means premises of any description;

“ scheme ” includes arrangements of any description.

15

(1) The Secretary of State may, on an application by the landlord, give a direction extending or further extending the period during which a final demolition notice is in force in respect of a dwelling-house.

(2) A direction under sub-paragraph (1) may provide that any extension of that period is not to have effect unless the landlord complies with such requirements relating to the service of further notices as are specified in the direction.

(3) A direction under sub-paragraph (1) may only be given at a time when the demolition notice is in force (whether by virtue of paragraph 13 or this paragraph).

(4) If, while a final demolition notice is in force, the landlord decides not to demolish the dwelling-house in question, he must, as soon as is reasonably practicable, serve a notice (“ a revocation notice ”) on the tenant which informs him—

(a) of the landlord’s decision, and

(b) that the demolition notice is revoked as from the date of service of the revocation notice.

(5) If, while a final demolition notice is in force, it appears to the Secretary of State that the landlord has no intention of demolishing the dwelling-house in question, he may serve a notice (“a revocation notice”) on the tenant which informs him—

(a) of the Secretary of State’s conclusion, and

(b) that the demolition notice is revoked as from the date of service of the revocation notice.

Section 169 applies in relation to the Secretary of State’s power under this sub-paragraph as it applies in relation to his powers under the provisions mentioned in subsection (1) of that section.

(6) But the Secretary of State may not serve a revocation notice unless he has previously served a notice on the landlord which informs him of the Secretary of State’s intention to serve the revocation notice.

(7) Where a revocation notice is served under sub-paragraph (4) or (5), the demolition notice ceases to be in force as from the date of service of the revocation notice.

(7A) Sub-paragraphs (4) to (7) do not apply if the landlord is selling or otherwise transferring his interest as landlord to another person or is offering it for sale or for other transfer.

(8) Once a final demolition notice (“the earlier notice”) has (for any reason) ceased to be in force in respect of a dwelling-house without it being demolished, no further final demolition notice (and no initial demolition notice) may be served in respect of it , by the landlord who served the earlier notice or any landlord who served a continuation notice in respect of the earlier notice, during the period of 5 years following the time when the earlier notice ceases to be in force, unless—

(a) the further final demolition notice (or, as the case may be, the initial demolition notice) is served with the consent of the Secretary of State, and

(b) it states that it is so served.

(9) The Secretary of State’s consent under sub-paragraph (8) may be given subject to compliance with such conditions as he may specify.

(10) In sub-paragraph (8) “ initial demolition notice ” has the meaning given by paragraph 1 of Schedule 5A (initial demolition notices).

15A

(1) This paragraph applies if—

(a) a final demolition notice is in force in respect of a dwelling-house, and

(b) the landlord transfers his interest as landlord to another person.

(2) The final demolition notice (“the original notice”) continues in force but this is subject to—

(a) paragraphs 13(5) and 15, and

(b) the following provisions of this paragraph.

(3) Sub-paragraph (4) applies if the transferee—

(a) intends to demolish the dwelling-house, but

(b) has not—

(i) served a continuation notice, and

(ii) complied with the conditions in sub-paragraphs (8) and (10),

within the period of 2 months beginning with the date of transfer.

(4) The transferee must proceed under paragraph 15(4) as if the transferee has decided not to demolish the dwelling-house (and paragraph 15(5) to (7) applies on the same basis).

(5) A continuation notice is a notice—

(a) stating that the transferee—

(i) has acquired the interest concerned, and

(ii) intends to demolish the dwelling-house or (as the case may be) the building containing it (“the relevant premises”),

(b) setting out the reasons why the transferee intends to demolish the relevant premises,

(c) stating that one of conditions A to C in paragraph 14 is satisfied in relation to the original notice (specifying the condition concerned),

(d) stating that the original notice is to continue in force, and

(e) explaining the continued effect of the original notice.

(6) A continuation notice may not vary the proposed demolition date in the original notice nor the date when the original notice will cease to be in force.

(7) Sub-paragraph (8) applies if—

(a) the dwelling-house is contained in a building which contains one or more other dwelling-houses, and

(b) the transferee intends to demolish the whole of the building.

(8) The transferee must serve a continuation notice on the occupier of each of the dwelling-houses contained in the building (whether addressed to him by name or just as “the occupier”).

(9) An accidental omission to serve a continuation notice on one or more occupiers does not prevent the condition in sub-paragraph (8) from being satisfied.

(10) Paragraph 13(7) and (8) apply in relation to the transferee's intention to demolish so as to impose a condition on the transferee for a notice to appear within the period of 2 months beginning with the date of transfer.

(11) Sub-paragraphs (7) to (10) above apply instead of paragraph 13(6) to (8) in relation to a final demolition notice so far as continued in force under this paragraph.

16

(1) Any notice under paragraph 13 , 15 or 15A may be served on a person—

(a) by delivering it to him, by leaving it at his proper address or by sending it by post to him at that address, or

(b) if the person is a body corporate, by serving it in accordance with paragraph (a) on the secretary of the body.

(2) For the purposes of this section and section 7 of the Interpretation Act 1978 (service of documents by post) the proper address of a person on whom a notice is to be served shall be—

(a) in the case of a body corporate or its secretary, that of the registered or principal office of the body, and

(b) in any other case, the last known address of that person.

SCHEDULE 5A

Initial demolition notices

1

(1) For the purposes of this Schedule an “ initial demolition notice ”is a notice served on a secure tenant—

(a) stating that the landlord intends to demolish the dwelling-house or (as the case may be) the building containing it (“the relevant premises”),

(b) setting out the reasons why the landlord intends to demolish the relevant premises,

(d) stating that, while the notice remains in force, he will not be under any obligation to make such a grant as is mentioned in section 138(1) in respect of any claim made by the tenant to exercise the right to buy in respect of the dwelling-house.

(2) An initial demolition notice must also state—

(a) that the notice does not prevent—

(i) the making by the tenant of any such claim, or

(ii) the taking of steps under this Part in connection with any such claim up to the point where section 138(1) would otherwise operate in relation to the claim, or

(iii) the operation of that provision in most circumstances where the notice ceases to be in force, but

(b) that, if the landlord subsequently serves a final demolition notice in respect of the dwelling-house, the right to buy will not arise in respect of it while that notice is in force and any existing claim will cease to be effective.

(3) If, at the time when an initial demolition notice is served, there is an existing claim to exercise the right to buy in respect of the dwelling-house, the notice shall—

(a) state that section 138C confers a right to compensation in respect of certain expenditure, and

(b) give details of that right to compensation and of how it may be exercised.

(4) The period specified in accordance with sub-paragraph (1)(c) must not—

(a) allow the landlord more than what is, in the circumstances, a reasonable period to carry out the proposed demolition of the relevant premises (whether on their own or as part of a scheme involving the demolition of other premises); or

(b) in any case expire more than seven years after the date of service of the notice on the tenant.

Period of validity of initial demolition notice

2

(1) For the purposes of this Schedule an initial demolition notice—

(a) comes into force in respect of the dwelling-house concerned on the date of service of the notice on the tenant, and

(b) ceases to be so in force at the end of the period specified in accordance with paragraph 1(1)(c),

but this is subject to compliance with the conditions mentioned in sub-paragraph (2) (in a case to which they apply) and to paragraphs 3 and 3A .

(2) The conditions in sub-paragraphs (6) and (7) of paragraph 13 of Schedule 5 (publicity for final demolition notices) shall apply in relation to an initial demolition notice as they apply in relation to a final demolition notice.

(3) The notice mentioned in paragraph 13(7) (as it applies in accordance with sub-paragraph (2) above) must contain the following information—

(a) sufficient information to enable identification of the premises that the landlord intends to demolish,

(b) the reasons why the landlord intends to demolish those premises,

(d) the date when any initial demolition notice or notices relating to those premises will cease to be in force, unless revoked or otherwise terminated under or by virtue of paragraph 3 below,

(e) that, during the period of validity of any such notice or notices, the landlord will not be under any obligation to make such a grant as is mentioned in section 138(1) in respect of any claim to exercise the right to buy in respect of any dwelling-house contained in those premises,

(f) that there may be a right to compensation under section 138C in respect of certain expenditure incurred in respect of any existing claim.

Revocation or termination of initial demolition notices

3

(1) Paragraph 15(4) to (7A) of Schedule 5 (revocation notices) shall apply in relation to an initial demolition notice as they apply in relation to a final demolition notice.

(2) If a compulsory purchase order has been made for the purpose of enabling the landlord to demolish the dwelling-house in respect of which he has served an initial demolition notice (whether or not it would enable him to demolish any other premises as well) and—

(a) a relevant decision within sub-paragraph (3)(a) becomes effective while the notice is in force, or

(b) a relevant decision within sub-paragraph (3)(b) becomes final while the notice is in force,

the notice ceases to be in force as from the date when the decision becomes effective or final.

(3) A “ relevant decision ”is—

(a) a decision under Part 2 of the Acquisition of Land Act 1981 to confirm the order with modifications, or not to confirm the whole or part of the order, or

(b) a decision of the High Court to quash the whole or part of the order under section 24 of that Act,

where the effect of the decision is that the landlord will not be able, by virtue of that order, to carry out the demolition of the dwelling-house.

(4) A relevant decision within sub-paragraph (3)(a) becomes effective—

(a) at the end of the period of 16 weeks beginning with the date of the decision, if no application for judicial review is made in respect of the decision within that period, or

(b) if such an application is so made, at the time when—

(i) a decision on the application which upholds the relevant decision becomes final, or

(ii) the application is abandoned or otherwise ceases to have effect.

(5) A relevant decision within sub-paragraph (3)(b), or a decision within sub-paragraph (4)(b), becomes final—

(a) if not appealed against, at the end of the period for bringing an appeal, or

(b) if appealed against, at the time when the appeal (or any further appeal) is disposed of.

(6) An appeal is disposed of—

(a) if it is determined and the period for bringing any further appeal has ended, or

(b) if it is abandoned or otherwise ceases to have effect.

(7) Where an initial demolition notice ceases to be in force under sub-paragraph (2), the landlord must, as soon as is reasonably practicable, serve a notice on the tenant which informs him—

(a) that the notice has ceased to be in force as from the date in question, and

(b) of the reason why it has ceased to be in force.

(8) If, while an initial demolition notice is in force in respect of a dwelling-house, a final demolition notice comes into force under paragraph 13 of Schedule 5 in respect of that dwelling-house, the initial demolition notice ceases to be in force as from the date when the final demolition notice comes into force.

(9) In such a case the final demolition notice must state that it is replacing the initial demolition notice.

Transfer of initial demolition notices

3A

(1) This paragraph applies if—

(a) an initial demolition notice is in force in respect of a dwelling-house, and

(b) the landlord transfers his interest as landlord to another person.

(2) The initial demolition notice (“the original notice”) continues in force but this is subject to—

(a) paragraphs 2 and 3, and

(b) the following provisions of this paragraph.

(3) Sub-paragraph (4) applies if the transferee—

(a) intends to demolish the dwelling-house, but

(b) has not—

(i) served a continuation notice, and

(ii) complied with the conditions in sub-paragraphs (8) and (10),

within the period of 2 months beginning with the date of transfer.

(4) The transferee must proceed under paragraph 15(4) of Schedule 5 as applied by paragraph 3(1) above as if the transferee has decided not to demolish the dwelling-house (and paragraph 15(5) to (7) of that Schedule as so applied applies on the same basis).

(5) A continuation notice is a notice—

(a) stating that the transferee—

(i) has acquired the interest concerned, and

(ii) intends to demolish the dwelling-house or (as the case may be) the building containing it (“the relevant premises”),

(b) setting out the reasons why the transferee intends to demolish the relevant premises,

(d) explaining the continued effect of the original notice.

(6) A continuation notice may not vary the period specified in the original notice in accordance with paragraph 1(1)(c).

(7) Sub-paragraph (8) applies if—

(a) the dwelling-house is contained in a building which contains one or more other dwelling-houses, and

(b) the transferee intends to demolish the whole of the building.

(8) The transferee must serve a continuation notice on the occupier of each of the dwelling-houses contained in the building (whether addressed to him by name or just as “the occupier”).

(9) An accidental omission to serve a continuation notice on one or more occupiers does not prevent the condition in sub-paragraph (8) from being satisfied.

(10) Paragraph 13(7) of Schedule 5 applies in relation to the transferee's intention to demolish so as to impose a condition on the transferee for a notice to appear within the period of 2 months beginning with the date of transfer; and paragraph 2(3) above applies for this purpose.

(11) Sub-paragraphs (7) to (10) above apply instead of paragraph 2(2) and (3) in relation to an initial demolition notice so far as continued in force under this paragraph.

Restriction on serving further demolition notices

4

(1) This paragraph applies where an initial demolition notice (“ the relevant notice ”) has (for any reason) ceased to be in force in respect of a dwelling-house without it being demolished.

(2) No further initial demolition notice may be served in respect of the dwelling-house , by the landlord who served the relevant notice or any landlord who served a continuation notice in respect of the relevant notice, during the period of 5 years following the time when the relevant notice ceases to be in force, unless—

(a) the further notice is served with the consent of the Secretary of State, and

(b) it states that it is so served.

(3) Subject to sub-paragraph (4), no final demolition notice may be served in respect of the dwelling-house , by the landlord who served the relevant notice or any landlord who served a continuation notice in respect of the relevant notice, during the period of 5 years following the time when the relevant notice ceases to be in force, unless—

(a) the final demolition notice is served with the consent of the Secretary of State, and

(b) it states that it is so served.

(4) Sub-paragraph (3) does not apply to a final demolition notice which is served at a time when an initial demolition notice served in accordance with sub-paragraph (2) is in force.

(5) The Secretary of State’s consent under sub-paragraph (2) or (3) may be given subject to compliance with such conditions as he may specify.

Service of notices

5

Paragraph 16 of Schedule 5(service of notices) applies in relation to notices under this Schedule as it applies in relation to notices under paragraph 13 , 15 or 15A of that Schedule.

Interpretation

6

(1) In this Schedule (other than paragraph 3A) any reference to the landlord, in the context of a reference to the demolition or intended demolition of any premises, includes a reference to a superior landlord.

(2) In this Schedule—

“ final demolition notice ” means a final demolition notice served under paragraph 13 of Schedule 5;

“ premises ” means premises of any description;

“ scheme ” includes arrangements of any description.

4A

he conveyance or grant shall be expressed to be made by the landlord with full title guarantee (thereby implying the covenants for title specified in Part I of the Law of Property (Miscellaneous Provisions) Act 1994).

Service charges and other contributions payable by the tenant

16A

(1) The lease may require the tenant to bear a reasonable part of the costs incurred by the landlord—

(a) in discharging or insuring against the obligations imposed by the covenants implied by virtue of paragraph 14(2) (repairs, making good structural defects, provision of services, etc.), or

(b) in insuring against the obligations imposed by the covenant implied by virtue of paragraph 14(3) (rebuilding or reinstatement, etc.),

and to the extent that by virtue of paragraph 15(3) (effect of provision of superior lease) such obligations are not imposed on the landlord, to bear a reasonable part of the costs incurred by the landlord in contributing to costs incurred by a superior landlord or other person in discharging or, as the case may be, insuring against obligations to the like effect.

(2) Where the lease requires the tenant to contribute to the costs of insurance, it shall provide that the tenant is entitled to inspect the relevant policy at such reasonable times as may be specified in the lease.

(3) Where the landlord does not insure against the obligations imposed by the covenant implied by virtue of paragraph 14(3), or, as the case may be, the superior landlord or other person does not insure against his obligations to the like effect, the lease may require the tenant to pay a reasonable sum in place of the contribution he could be required to make if there were insurance.

(4) Where in any case the obligations imposed by the covenants implied by virtue of paragraph 14(2) or (3) are modified in accordance with paragraph 14(4) (power of county court to authorise modification), the references in this paragraph are to the obligations as so modified.

(5) This paragraph has effect subject to paragraph 16B (restrictions in certain cases as regards costs incurred in the initial period of the lease).

16B

(1) Where a lease of a flat requires the tenant to pay service charges in respect of repairs (including works for the making good of structural defects), his liability in respect of costs incurred in the initial period of the lease is restricted as follows.

(2) He is not required to pay in respect of works itemised in the estimates contained in the landlord’s notice under section 125 any more than the amount shown as his estimated contribution in respect of that item, together with an inflation allowance.

(3) He is not required to pay in respect of works not so itemised at a rate exceeding—

(a) as regards parts of the initial period falling within the reference period for the purposes of the estimates contained in the landlord’s notice under section 125, the estimated annual average amount shown in the estimates;

(b) as regards parts of the initial period not falling within that reference period, the average rate produced by averaging over the reference period all works for which estimates are contained in the notice;

together, in each case, with an inflation allowance.

(4) The initial period of the lease for the purposes of this paragraph begins with the grant of the lease and ends five years after the grant, except that—

(a) if the lease includes provision for service charges to be payable in respect of costs incurred in a period before the grant of the lease, the initial period begins with the beginning of that period;

(b) if the lease provides for service charges to be calculated by reference to a specified annual period, the initial period continues until the end of the fifth such period beginning after the grant of the lease; . . .

16C

(1) Where a lease of a flat requires the tenant to pay improvement contributions, his liability in respect of costs incurred in the initial period of the lease is restricted as follows.

(2) He is not required to make any payment in respect of works for which no estimate was given in the landlord’s notice under section 125.

(3) He is not required to pay in respect of works for which an estimate was given in that notice any more than the amount shown as his estimated contribution in respect of that item, together with an inflation allowance.

(4) The initial period of the lease for the purposes of this paragraph begins with the grant of the lease and ends five years after the grant, except that—

(a) if the lease includes provision for improvement contributions to be payable in respect of costs incurred in a period before the grant of the lease, the initial period begins with the beginning of that period;

(b) if the lease provides for improvement contributions to be calculated by reference to a specified annual period, the initial period continues until the end of the fifth such period beginning after the grant of the lease; . . .

16D

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

(a) the method by which inflation allowances for the purposes of paragraph 16B or 16C are to be calculated by reference to published statistics; and

(b) the information to be given to a tenant when he is asked to pay a service charge or improvement contribution to which the provisions of paragraph 16B or 16C are or may be relevant.

(2) An order—

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

(b) may contain such incidental, supplementary or transitional provisions as the Secretary of State thinks appropriate; and

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

16E

(1) Where a lease of a flat granted in pursuance of the right to acquire on rent to mortgage terms requires the tenant to pay—

(a) service charges in respect of repairs (including works for the making good of structural defects), or

(b) improvement contributions,

his liability in respect of costs incurred at any time before the final payment is made is restricted as follows.

(2) He is not required to pay any more than the amount determined by the formula—

$$M=Px100-S100$where—$

Schedule 6A

1

(1) The conveyance or grant shall contain a covenant binding on the secure tenant and his successors in title to make to the landlord, immediately after—

(a) the making of a relevant disposal which is not an excluded disposal, or

(b) the expiry of the period of one year beginning with a relevant death,

(whichever first occurs), a final payment, that is to say, a payment of the amount required to redeem the landlord’s share.

(2) A disposal is an excluded disposal for the purposes of this paragraph if—

(a) it is a further conveyance of the freehold or an assignment of the lease and the person or each of the persons to whom it is made is, or is the spouse or civil partner of, the person or one of the persons by whom it is made;

(b) it is a vesting in a person taking under a will or intestacy; or

(i) section 24 or 24A of the Matrimonial Causes Act 1973 (property adjustment orders or orders for the sale of property in connection with matrimonial proceedings),

(ii) section 2 of the Inheritance (Provision for Family and Dependants) Act 1975 (orders as to financial provision to be made from estate),

(iii) section 17 of the Matrimonial and Family Proceedings Act 1984 (property adjustment orders or orders for the sale of property after overseas divorce, &c.), . . .

(iv) paragraph 1 of Schedule 1 to the Children Act 1989 (orders for financial relief against parents), or

(v) Part 2 or 3 of Schedule 5, or paragraph 9 of Schedule 7, to the Civil Partnership Act 2004 (property adjustment orders, or orders for the sale of property, in connection with civil partnership proceedings or after overseas dissolution of civil partnership, etc.),

and (in any case) an interest to which this paragraph applies subsists immediately after the disposal.

(3) In this paragraph “ relevant death ” means the death of a person who immediately before his death was the person or, as the case may be, the last remaining person entitled to an interest to which this paragraph applies.

(4) A beneficial interest in the dwelling-house is an interest to which this paragraph applies if the person entitled to it is—

(a) the secure tenant or, as the case may be, one of the secure tenants, or

(b) a qualifying person.

2

(1) The conveyance or grant shall include provision entitling the secure tenant and his successors in title to make a final payment at any time.

(2) The right shall be exercisable by written notice served on the landlord claiming to make a final payment.

(3) The notice may be withdrawn at any time by written notice served on the landlord.

(4) If the final payment is not tendered to the landlord before the end of the period of three months beginning with the time when the value of the dwelling-house is agreed or determined in accordance with paragraph 8, the notice claiming to make a final payment shall be deemed to have been withdrawn.

3

The value of the landlord’s share shall be determined by the formula -

Final discount

4

(1) Where a final payment is made by, or by two or more persons who include—

(a) the secure tenant or, as the case may be, one of the secure tenants, or

(b) a qualifying person,

the person or persons making the payment are entitled, subject to the following provisions of this paragraph and paragraph 5, to a final discount equal to 20 per cent. of the value of the landlord’s share.

(2) Sub-paragraph (1) shall not apply if the final payment is made after the end of the protection period, that is to say, the period of two years beginning with the time when there ceases to be an interest to which this sub-paragraph applies.

(3) A beneficial interest in the dwelling-house is an interest to which sub-paragraph (2) applies if the person entitled to it is—

(a) the secure tenant or, as the case may be, one of the secure tenants, or

(b) a qualifying partner .

(4) The Secretary of State may by order made with the consent of the Treasury provide that the percentage discount shall be such percentage as may be specified in the order.

(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,

(b) may contain such incidental, supplementary or transitional provisions as appear to the Secretary of State necessary or expedient, and

(c) shall be made by statutory instrument and shall not be made unless a draft of the order has been laid before and approved by resolution of each House of Parliament.

Restrictions on and deductions from final discount

5

(1) Except where the Secretary of State so determines, a final discount shall not reduce the total purchase price, that is to say, the aggregate of the initial payment, the final payment and any interim payments, below the amount which would be applicable under section 131(1) in respect of the dwelling-house if the relevant time were the time when the value of the dwelling-house is agreed or determined.

(2) The total discount, that is to say, the aggregate of the initial discount, the final discount and any interim discounts, shall not in any case reduce the total purchase price by more than the sum prescribed for the purposes of section 131(2) at the time when the value of the dwelling-house is agreed or determined.

(3) If a final payment is made after the end of the first twelve months of the protection period, there shall be deducted from any final discount given by paragraph 4 and the preceding provisions of this paragraph an amount equal to 50 per cent. of that discount.

(4) There shall be deducted from any final discount given by paragraph 4 and the preceding provisions of this paragraph an amount equal to any previous discount qualifying or, the aggregate of any previous discounts qualifying, under the provisions of section 130.

(5) A determination under this paragraph may make different provision for different cases or descriptions of case, including different provision for different areas.

Right to make interim payment at any time

6

(1) The conveyance or grant shall include provision entitling the secure tenant and his successors in title at any time to make to the landlord an interim payment, that is to say, a payment which—

(a) is less than the amount required to redeem the landlord’s share; but

(b) is not less than 10 per cent. of the value of the dwelling-house (agreed or determined in accordance with paragraph 8).

(2) The right shall be exercisable by written notice served on the landlord, claiming to make an interim payment and stating the amount of the interim payment proposed to be made.

(3) The notice may be withdrawn at any time by written notice served on the landlord.

(4) If the interim payment is not tendered to the landlord before the end of the period of three months beginning with the time when the value of the dwelling-house is agreed or determined in accordance with paragraph 8, the notice claiming to make an interim payment shall be deemed to have been withdrawn.

7

The landlord’s share after the making of an interim payment shall be determined by the formula -

Value of dwelling-house

8

(1) For the purposes of the final payment or any interim payment, the value of a dwelling-house is the amount which for those purposes—

(a) is agreed at any time between the parties, or

(b) in default of such agreement, is determined at any time by an independent valuer,

as the amount which, in accordance with this paragraph, is to be taken as its value at that time.

(2) Subject to sub-paragraph (6), that value shall be taken to be the price which the interest of the secure tenant in the dwelling-house 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 interest of the secure tenant,

(b) the liability under the covenant required by paragraph 1, and

(4) The matters to be disregarded in pursuance of sub-paragraph (2)(b) are—

(a) any interests or rights created over the dwelling-house by the secure tenant,

(b) any improvements made by the secure tenant or any of the persons mentioned in section 127(4) (certain predecessors as secure tenant), and

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

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

(5) Sub-paragraph (6) applies where, at the time when the value of the dwelling-house is agreed or determined, the dwelling-house—

(a) has been destroyed or damaged by fire, tempest, flood or any other cause against the risk of which it is normal practice to insure, and

(b) has not been fully rebuilt or reinstated.

(6) That value shall be taken to include the value of such of the following as are applicable, namely—

(a) any sums paid or falling to be paid to the secure tenant under a relevant policy in so far as they exceed the cost of any rebuilding or reinstatement which has been carried out;

(b) any rights of the secure tenant under the covenant implied by paragraph 14(3) of Schedule 6 (covenant to rebuild or reinstate); and

(c) any rights of the secure tenant under the covenant implied by paragraph 15(4) of that Schedule (covenant to use best endeavours to secure rebuilding or reinstatement).

(7) In sub-paragraph (6) “ relevant policy ” means a policy insuring the secure tenant against the risk of fire, tempest or flood or any other risk against which it is normal practice to insure.

(8) References in this paragraph to the secure tenant include references to his successors in title.

Costs of independent valuation

9

The conveyance or grant shall include provision requiring any sums falling to be paid to an independent valuer (whether by way of fees or expenses or otherwise) to be paid by the secure tenant or his successors in title.

No charges to be made by landlord

10

A provision of the conveyance or grant is void in so far as it purports to enable the landlord to charge the tenant or his successors in title a sum in respect of or in connection with the making of a final or interim payment.

Other covenants and provisions

11

Subject to the provisions of this Schedule, the conveyance or grant may include such covenants and provisions as are reasonable in the circumstances.

Interpretation

12

(1) In this Schedule—

“ independent valuer ” means an independent valuer appointed in pursuance of provisions in that behalf contained in the conveyance or grant;

“ protection period ” has the meaning given by paragraph 4(2);

“ qualifying person ” means qualifying partner or a qualifying resident.

(2) A person is a qualifying partner for the purposes of this Schedule if—

(a) he is entitled to a beneficial interest in the dwelling-house immediately after the time when there ceases to be an interest to which this paragraph applies;

(b) he is occupying the dwelling-house as his only or principal home immediately before that time; and

(i) is the spouse, the civil partner, a former spouse, a former civil partner, the surviving spouse, the surviving civil partner, a surviving former spouse or a surviving former civil partner of the person who immediately before that time was entitled to the interest to which this paragraph applies or, as the case may be, the last remaining such interest, or

(ii) is the surviving spouse, the surviving civil partner, a surviving former spouse or a surviving former civil partner of a person who immediately before his death was entitled to such an interest.

(3) A person is a qualifying resident for the purposes of this Schedule if—

(a) he is entitled to a beneficial interest in the dwelling-house immediately after the time when there ceases to be an interest to which this paragraph applies;

(b) he is occupying the dwelling-house as his only or principal home immediately before that time;

(i) with the person who immediately before that time was entitled to the interest to which this paragraph applies or, as the case may be, the last remaining such interest, or

(ii) with two or more persons in succession each of whom was throughout the period of residence with him entitled to such an interest; and

(d) he is not a qualifying partner .

(4) A beneficial interest in the dwelling-house is an interest to which this paragraph applies if the person entitled to it is the secure tenant or, as the case may be, one of the secure tenants.

(5) References in this Schedule to the secure tenant are references to the secure tenant or tenants to whom the conveyance or grant is made and references to the secure tenant or, as the case may be, one of the secure tenants shall be construed accordingly.

(6) References in this Schedule to the secure tenant’s successors in title do not include references to any person entitled to a legal charge having priority to the mortgage required by section 151B (mortgage for securing redemption of landlord’s share) or any person whose title derives from such a charge.

Schedule 9A

Statement to be contained in instrument effecting qualifying disposal

1

On a qualifying disposal, the disponor shall secure that the instrument effecting the disposal—

(a) states that the disposal is, so far as it relates to dwelling-houses occupied by secure tenants, a disposal to which section 171A applies (preservation of right to buy on disposal to private landlord), and

(b) lists, to the best of the disponor’s knowledge and belief, the dwelling-houses to which the disposal relates which are occupied by secure tenants.

Registration of title on qualifying disposal

2

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) Where on a qualifying disposal the disponor’s title to the dwelling-house is not registered, the disponor shall give the disponee a certificate stating that the disponor is entitled to effect the disposal subject only to such incumbrances, rights and interests as are stated in the instrument effecting the disposal or summarised in the certificate.

(3) Where the disponor’s interest in the dwelling-house is a lease, the certificate shall also state particulars of the lease and, with respect to each superior title—

(a) where it is registered, the title number;

(b) where it is not registered, whether it was investigated in the usual way on the grant of the disponor’s lease.

(4) The certificate shall be—

(a) in a form approved by the Chief Land Registrar, and

(b) signed by such officer of the disponor or such other person as may be approved by the Chief Land Registrar.

and the Chief Registrar shall, for the purpose of registration of title, accept the certificate as sufficient evidence of the facts stated in it.

3

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

Entries on register protecting preserved right to buy

4

(1) This paragraph applies where the Chief Land Registrar approves an application for registration of—

(a) a disposition of registered land, or

(b) the disponee’s title under a disposition of unregistered land,

and the instrument effecting the disposition contains the statement required by paragraph 1.

(2) The Chief Land Registrar must enter in the register—

(a) a notice in respect of the rights of qualifying persons under this Part in relation to dwelling-houses comprised in the disposal, and

(b) a restriction reflecting the limitation under section 171D(2) on subsequent disposal.

Change of qualifying dwelling-house

5

(1) This paragraph applies where by virtue of section 171B(6) a new dwelling-house becomes the qualifying dwelling-house which—

(a) is entirely different from the previous qualifying dwelling-house, or

(b) includes new land,

and applies to the new dwelling-house or the new land, as the case may be.

(2) If the landlord’s title is registered, the landlord shall apply for the entry in the register of—

(a) a notice in respect of the rights of the qualifying person or persons under the provisions of this Part, and

(b) a restriction reflecting the limitation under section 171D(2) on subsequent disposal.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) If the landlord’s title is not registered, the rights of the qualifying person or persons under the provisions of this Part are registrable under the Land Charges Act 1972 in the same way as an estate contract and the landlord shall, and a qualifying person may, apply for such registration.

Effect of non-registration

6

(1) The rights of a qualifying person under this Part in relation to the qualifying dwelling house shall not be regarded as falling within Schedule 3 to the Land Registration Act 2002 (and so are liable to be postponed under section 29 of that Act, unless protected by means of a notice in the register).

(2) Where by virtue of paragraph 5(4) the rights of a qualifying person under this Part in relation to the qualifying dwelling-house are registrable under the Land Changes Act 1972 in the same way as an estate contract, section 4(6) of that Act (under which such a contract may be void against a purchaser unless registered) applies accordingly, with the substitution for the reference to the contract being void of a reference to the right to buy ceasing to be preserved.

Statement required on certain disposals on which right to buy ceases to be preserved

7

(1) A conveyance of the freehold or grant of a lease of the qualifying dwelling-house to a qualifying person in pursuance of the right to buy shall state that it is made in pursuance of the provisions of this Part as they apply by virtue of section 171A (preservation of the right to buy).

(2) Where on a conveyance of the freehold or grant of a lease of the qualifying dwelling-house to a qualifying person otherwise than in pursuance of the right to buy the dwelling-house ceases to be subject to any rights arising under this Part, the conveyance or grant shall contain a statement to that effect.

(3) Where on a disposal of an interest in a qualifying dwelling-house the dwelling-house ceases to be subject to the rights of a qualifying person under this Part by virtue of section 171D(1)( a ) or 171E(2)( a ) (qualifying person becoming tenant of authority or body satisfying landlord condition for secure tenancies), the instrument by which the disposal is effected shall state that the dwelling-house ceases as a result of the disposal to be subject to any rights arising by virtue of section 171A (preservation of the right to buy).

Removal of entries on land register

8

Where the registered title to land contains an entry made by virtue of this Schedule, the Chief Land Registrar shall, for the purpose of removing or amending the entry, accept as sufficient evidence of the facts stated in it a certificate by the registered proprietor that the whole or a specified part of the land is not subject to any rights of a qualifying person under this Part.

Liability to compensate or indemnify

9

(1) An action for breach of statutory duty lies where—

(a) the disponor on a qualifying disposal fails to comply with paragraph 1 (duty to secure inclusion of statement in instrument effecting disposal), or

(b) the landlord on a change of the qualifying dwelling-house fails to comply with paragraph 5(2) or (4) (duty to apply for registration protecting preserved right to buy),

and a qualifying person is deprived of the preserved right to buy by reason of the non-registration of the matters which would have been registered if that duty had been complied with.

(2) If the Chief Land Registrar has to meet a claim under the Land Registration Act 2002 as a result of acting upon-

(a) a certificate given in pursuance of paragraph 2 (certificate of title on first registration),

(b) a statement made in pursuance of paragraph 7 (statements required on disposal on which right to buy ceases to be preserved), or

(c) a certificate given in pursuance of paragraph 8 (certificate that dwelling-house has ceased to be subject to rights under this Part),

the person who gave the certificate or made the statement shall indemnify him.

Meaning of disposal and instrument effecting disposal

10

References in this Schedule to a disposal or to the instrument effecting a disposal are to the conveyance, transfer, grant or assignment, as the case may be.

Secretary of State’s general power to intervene.

Expenses and interest recoverable from occupiers

6A

(1) Where a demand becomes operative by virtue of paragraph 3(3) or 6(3), the local housing authority may serve notice on any person—

(a) who occupies the premises concerned, or part of those premises, as the tenant or licensee of the person on whom the demand was served under paragraph 3(1); and

(b) who, by virtue of his tenancy or licence, pays rent or any sum in the nature of rent to the person on whom the demand was served,

stating the amount of expenses recoverable by the authority and requiring all future payments of rent or sums in the nature of rent, whether already accrued due or not, by such tenant or licensee to be made direct to the authority until the expenses recoverable by the authority, together with interest accrued due, have been duly paid.

(2) In the case of a demand which was served on any person as agent or trustee for another person (in this sub-paragraph referred to as “the principal or beneficiary”) sub-paragraph (1) shall have effect as if the reference in each of paragraphs (a) and (b) to the person on whom the demand was served were a reference to that person or the principal or beneficiary.

(3) Subject to sub-paragraph (4), where a notice is served under sub-paragraph (1) then, unless the authority by further notice served on the tenant or licensee otherwise direct, it shall operate to transfer to the authority the right to recover, receive and give a discharge for the rent or sums in the nature of rent.

(4) The right of the authority to recover, receive and give a discharge for any rent or sums in the nature of rent by virtue of this paragraph shall be postponed to any right in respect of that rent or those sums which may at any time be vested in a superior landlord by virtue of a notice under section 6 of the Law of Distress Amendment Act 1908.

Expenditure on works to be set against surpluses on revenue account

Calculation of rental value

13A

(1) The rental value of a house is an amount equal to the rent at which the house might reasonably be expected to let from year to year if the tenant undertook to pay all usual tenant’s rates and taxes and the landlord undertook to bear the cost of the repairs and insurance and the other expenses, if any, necessary to maintain the house in a state to command that rent.

(2) The amount referred to in sub-paragraph (1) shall be determined by the local housing authority as at the date on which the control order comes into force; and any dispute arising in respect of that determination shall be referred in writing for decision by the district valuer.

Apportionment of compensation between proprietors of different parts of house

Revocation of control order by county court on appeal against refusal to revoke

Rent lawfully due from the tenant has not been paid or an obligation of the tenancy has been broken or not performed.

(s. 46 of the Housing (Financial Provisions) Act 1958)

Commutation of future annual grant

6

(1) A local authority may make an offer in writing to the person who is for the time being the owner of a house as respects which annual grant is payable under this Part of this Schedule to pay a lump sum in lieu of—

(a) the annual grant payable for the year in which the offer is accepted; and

(b) any further payments of annual grant that would (apart from this paragraph) be payable for the remainder of the period for which the original arrangements under section 46 of the Housing (Financial Provisions) Act 1958 were made.

(2) An owner may accept an offer made under this paragraph by notice in writing to the local housing authority.

(3) Subject to sub-paragraph (4) below, where such an offer is accepted the local housing authority shall pay to the owner a lump sum calculated in such manner as the authority may determine.

(4) A lump sum shall not be paid as respects a house unless the local housing authority are satisfied that the conditions in this Part of this Schedule have been observed throughout the year preceding the date on which the lump sum would otherwise be paid.

(5) On payment of a lump sum under this paragraph to the owner of a house—

(a) no further annual grants under this Part of this Schedule shall be payable in respect of the house; and

(b) the conditions described in this Part of this Schedule shall cease to apply to the house.

(s. 9 of the Housing Finance Act 1972; s. 5 of the Housing Rents and Subsidies Act 1975)

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.

Circumstances in which local authority may take possession or order sale

SCHEDULES 22—24.

SCHEDULE

1

The following abbreviations are used in this Table—

2

The Table does not show the effect of Transfer of Functions Orders.

3

The letter R followed by a number indicates that the provision gives effect to the Recommendation bearing that number in the law Commission’s Report on the Consolidation of the Housing Acts (Cmnd. 9515).

4

A reference followed by “passim” indicates that the provision of the consolidation derives from passages within those referred to which it is not convenient, and does not appear necessary, to itemise.

5

The entry “drafting” indicates a provision of a mechanical or editorial nature affecting the arrangement of the consolidation; for instance, a provision introducing a Schedule or introducing a definition to avoid undue repetition of the defining words.

Editorial notes

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Housing Act 1985

604A

Amount of discount which may be demanded by landlord: right to buy

621A

Introductory tenancies

1A

1B

Family intervention tenancies

4ZA

Accommodation for asylum-seekers

4A

...

4B

Ground 2A

Ground 10A

1

2

3

4

Part V — Approval of Redevelopment Schemes for Purposes of Ground 10A

1

2

3

4

5

6

7

Ground 2A

Ground 10

SCHEDULE 3A

Disposals to which this Schedule applies

1

Application for Secretary of State’s consent

2

Requirements as to consultation

3

Power to require further consultation

4

Consent to be withheld if majority of tenants are opposed

5

Guidance

5A

Protection of purchasers

6

Periods during which right to buy is preserved

5A

7A

7B

9A

Dwelling-house due to be demolished within 24 months

13

14

15

15A

16

SCHEDULE 5A

Initial demolition notices

1

Period of validity of initial demolition notice

2

Revocation or termination of initial demolition notices

3

Transfer of initial demolition notices

3A

Restriction on serving further demolition notices

4

Service of notices

5

Interpretation

6

4A

Service charges and other contributions payable by the tenant

16A

16B

16C

16D

16E

Schedule 6A

Obligation to redeem landlord’s share in certain circumstances

1