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) The person entitled to assistance may, at any time within the period of six months beginning with the service of the copy of the agreement, or within that period as extended, notify the authority in writing that he requires them to enter into an agreement embodying those provisions and the authority shall comply with the requirement.

(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 a notice under this paragraph may be given (whether or not the period has expired).

Part II — Price Payable and Valuation

The price

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(1) The price payable for the acquisition of an interest in pursuance of this Part of this Act is 95 per cent. of the value of the interest at the relevant time.

(2) In this Schedule “the relevant time” means the time at which the notice under paragraph 3 above (authority’s notice of proposed terms of acquisition) is served on the person entitled to assistance.

The value

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(1) For the purposes of this Schedule, the value of an interest at the relevant time is the amount which, at that time, would be realised by a disposal of the interest on the open market by a willing seller to a person other than the purchasing authority on the following assumptions—

(a) that none of the defective dwellings to which the designation in question relates is affected by the qualifying defect;

(b) that no liability has arisen or will arise under a covenant required by section 35 or 155 (covenant to repay discount) or paragraph 6(1) of Schedule 8 (terms of shared ownership lease: covenant to pay for outstanding share), or any covenant to the like effect;

(d) that (subject to the preceding paragraphs) the seller is selling with and subject to the rights and burdens with and subject to which the disposal is to be made.

(2) Where the value of an interest falls to be considered at a time later than the relevant time and there has been since the relevant time a material change in the circumstances affecting the value of the interest, the value at the relevant time shall be determined on the further assumption that the change had occurred before the relevant time.

(3) In determining the value of an interest no account shall be taken of any right to the grant of a tenancy under section 554 (former owner-occupier) or section 555 (former statutory tenant).

Determination of value

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(1) Any question arising under this Schedule as to the value of an interest in a defective dwelling shall be determined by the district valuer in accordance with this paragraph.

(2) The person entitled to assistance or the purchasing authority may require that value to be determined or redetermined by notice in writing served on the district valuer—

(a) within the period beginning with the service on the person entitled to assistance of a notice under paragraph 3 above (authority’s notice of proposed terms of acquisition) and ending with the service under paragraph 5 above of the copy of the agreement drawn up for execution by the parties, or

(b) after the end of that period but before the parties enter into an agreement for the acquisition of the interest of the person so entitled, if there is a material change in the circumstances affecting the value of the interest.

(3) A person serving notice on the district valuer under this paragraph shall serve notice in writing of that fact on the other party.

(4) Before making a determination in pursuance of this paragraph, the district valuer shall consider any representation made to him, within four weeks of the service of the notice under this paragraph, by the person entitled to assistance or the purchasing authority.

Service of amended draft agreement

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Where the value of an interest is determined, or redetermined, in pursuance of a notice served under paragraph 9(2)(b) (notice given after service of draft agreement)—

(a) the purchasing authority shall comply again with paragraph 5 (service of draft agreement within three months of terms being settled), and

(b) paragraph 6 (notice to enter into agreement) shall apply in relation to that agreement instead of the earlier one.

Part III — Supplementary Provisions

Introductory

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(1) In this Part of this Schedule “the agreement” means the agreement entered into in pursuance of Parts I and II of this Schedule, and—

“the authority” means the authority acquiring an interest in a defective dwelling under the agreement;

“the conveyance” means the conveyance executed under the agreement;

“the interest acquired” means the interest in the dwelling concerned of which the vendor disposes under the agreement;

“the purchase price” means the price which the agreement requires the authority to pay for the interest acquired; and

“the vendor” means the person with whom the authority enter into the agreement.

(2) In this Part of this Schedule—

(a) references to a charge include a mortgage or lien, but not a rentcharge within the meaning of the Rentcharges Act 1977, and

(b) references to a relevant charge are to a charge to which the interest acquired is subject immediately before the conveyance and which secures the performance of an obligation but is not either a local land charge or a charge which is, or would be, overreached by the conveyance apart from this Schedule.

Conveyance frees interest acquired from relevant charges

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(1) The conveyance is effective—

(a) to discharge the interest acquired from any relevant charge,

(b) to discharge the interest acquired from the operation of any order made by a court for the enforcement of such a charge, and

without the persons entitled to or interested in such a charge, order or term of years becoming parties to or executing the conveyance.

(2) The effect of this paragraph is restricted to discharging the interest acquired from the charge and does not affect personal liabilities.

(3) This paragraph does not prevent a person from joining in the conveyance for the purpose of discharging the interest acquired from a charge.

(4) The operation of this paragraph is subject to paragraph 14 (effect of failure to apply purchase price in or towards satisfaction of charge).

Application of purchase price in satisfaction of relevant charges

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(1) The authority shall apply the purchase price in the first instance in or towards the redemption of any relevant charge securing the payment of money (if there is more than one, then according to their priorities), subject to the provisions of this paragraph.

(2) For the purposes of this paragraph—

(a) a person entitled to a charge may not exercise a right to consolidate the charge with a separate charge on other property;

(b) a person may be required to accept three months’ or longer notice of the intention to repay the principal or any part of it secured by the charge, together with interest to the date of payment, notwithstanding that this differs from the terms of the security as to the time and manner of payment;

(c) a charge to which the vendor or the authority themselves are entitled ranks for payment as it would if another person were entitled to it; and

(d) where a person, without payment or for less payment than he would otherwise be entitled to, joins in the conveyance for the purpose of discharging the interest acquired from a charge, the persons to whom the purchase price ought to be paid shall be determined accordingly.

(3) This paragraph does not apply to—

(a) a charge in favour of the holders of a series of debentures issued by a body, or

(b) a charge in favour of trustees for such debenture holders which at the date of the conveyance is a floating charge;

and the authority shall disregard such charges in performing their duty under this paragraph.

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If the authority do not apply an amount which under paragraph 13 they are required to apply in or towards the redemption of a charge (and do not pay that amount into court in accordance with paragraph 15), the charge is not discharged by virtue of paragraph 12 and the interest acquired remains subject to the charge as security for that amount.

Power to make payment into court in case of difficulty

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(1) Where a person is or may be entitled by virtue of paragraph 13 to receive, in respect of a relevant charge, the whole or part of the purchase price and—

(a) for any reason difficulty arises in ascertaining how much is payable in respect of the charge, or

(b) for any reason mentioned in sub-paragraph (2) difficulty arises in making a payment in respect of the charge,

the authority may pay into court on account of the purchase price the amount, if known, of the payment to be made in respect of the charge or, if the amount is not known, the whole of the purchase price, or such lesser amount as the authority think right in order to provide for that payment.

(2) The reasons referred to in sub-paragraph (1)(b) are—

(a) that a person who is or may be entitled to receive payment cannot be found or ascertained;

(b) that any such person refuses or fails to make out a title, or to accept payment and give a proper discharge, or to take any step reasonably required of him to enable the sum payable to be ascertained and paid; or

(c) that a tender of the sum payable cannot, by reason of complications in the entitlement to payment or the want of two or more trustees or for other reasons, be effected, or not without incurring or involving unreasonable cost or delay.

Duty to pay into court in certain cases

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(1) The authority shall pay the purchase price into court if, before the execution of the conveyance, written notice is given to them—

(a) that the vendor, or a person entitled to a charge on the interest to be acquired, so requires either for the purpose of protecting the rights of persons so entitled or for reasons related to the bankruptcy or winding up of the vendor, or

(b) that steps have been taken to enforce a charge on the interest to be acquired by the bringing of proceedings in a court, by the appointment of a receiver or otherwise.

(2) Where a payment into court is made by reason only of a notice under this paragraph and the notice is given with reference to proceedings in a specified court (other than the county court), payment shall be made into that court.

Registration of title

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

(2) For the purposes of registration of title to the land acquired by the authority—

(a) the authority shall give to the Chief Land Registrar a certificate stating that the person from whom the relevant interest was acquired to convey the interest subject only to such incumbrances, rights and interests as are stated in the conveyance or summarised in the certificate, and

(b) the Chief Land Registrar shall accept the certificate as sufficient evidence of the facts stated in it;

but if, as a result, he has to meet a claim against him under the Land Registration Act 2002, the authority shall indemnify him.

(3) A certificate under sub-paragraph (2) shall be in a form approved by the Chief Land Registrar and shall be signed by such officer of the authority, or such other person, as may be approved by the Chief Land Registrar.

Interest acquired by local housing authority treated as acquiredunder Part II

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If the authority are a local housing authority, the interest acquired by them shall be treated as acquired by them under section 17 (acquisition of land for purposes of Part II (provision of housing)).

Certain grant conditions cease to have effect

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(1) Where the interest acquired is or includes a dwelling in relation to which an improvement grant, intermediate grant, special grant or repairs grant has been paid under Part XV—

(a) any grant condition imposed under or by virtue of that Part ceases to be in force with respect to the dwelling with effect from the time of disposal of the interest, and

(b) the owner for the time being of the dwelling is not liable to make in relation to the grant any payment under section 506 (repayment of grant for breach of condition) except in pursuance of a demand made before the time of disposal of the interest.

(2) In this paragraph “dwelling” and “owner” have the same meaning as in Part XV.

Overreaching effect of conveyance

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The conveyance has effect under section 2(1) of the Law of Property Act 1925 (conveyances overreaching certain equitable interests and powers) to overreach any incumbrance capable of being overreached under that section—

(a) as if the requirements to which that section refers as to the payment of capital money allowed any part of the purchase price paid under paragraph 13, 15 or 16 (payment in satisfaction of charge or into court) to be so paid, and

(b) where the interest conveyed is settled land, as if the conveyance were made under the powers of the Settled Land Act 1925.

SCHEDULE 21

Introductory

1

This Schedule applies in relation to a defective dwelling where the building that the dwelling consists of or includes falls within two or more designations under section 528 (designation by Secretary of State) or 559 (designation under local scheme).

Cases in which later designation to be disregarded

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Where a person is already eligible for assistance in respect of a defective dwelling at a time when another designation comes into operation, the later designation shall be disregarded if—

(a) he would not be eligible for assistance in respect of the dwelling by virtue of that designation, or

(b) he is by virtue of an earlier designation entitled to assistance by way of repurchase in respect of the dwelling.

In other cases any applicable designation may be relied on

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Where a person is eligible for assistance in respect of a defective dwelling and there are two or more applicable designations, this Part has effect in relation to the dwelling as if—

(a) references to the designation were to any applicable designation;

(b) references to the provision by virtue of which it is a defective dwelling were to any provision under which an applicable designation was made;

(d) references to the period within which persons may seek assistance under this Part were to any period specifed for that purpose in any applicable designation; and

(e) the reference in section 543(1)(c) (amount of reinstatement grant) to the maximum amount permitted to be taken into account for the purposes of that section were to the aggregate of the maximum amounts for each applicable designation.

Procedure to be followed where later designation comes into operation

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The following provisions of this Schedule apply where—

(a) notice has been given to a person under section 536 (determination of eligibility) stating that he is in the opinion of the local housing authority eligible for assistance in respect of a defective dwelling, and

(b) after the notice has been given another designation comes into operation designating a class within which the building that consists of or includes the dwelling falls.

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(1) The local housing authority shall, as soon as reasonably practicable, give him notice in writing stating whether in their opinion the new designation falls to be disregarded in accordance with paragraph 2.

(2) If in their opinion it is to be disregarded the notice shall state the reasons for their view.

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(1) This paragraph applies where it appears to the authority that the new designation does not fall to be disregarded.

(2) They shall forthwith give him notice in writing—

(a) stating the effect of the new designation and of paragraph 3 (new designation may be relied on) and sub-paragraph (3) below (entitlement to be redetermined), and

(b) informing him that he has the right to make a claim under section 537(2) (claim that assistance by way of reinstatement grant is inappropriate in his case).

(3) They shall as soon as reasonably practicable—

(a) make a further determination under section 537(1) (determination of form of assistance to which person is entitled), taking account of the new designation, and

(b) give a further notice of determination in place of the previous notice;

and where the determination is that he is entitled to assistance by way of repurchase, the notice shall state the effect of paragraph 7 (cases where reinstatement work already begun or contracted for).

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(1) This paragraph applies where a person entitled to assistance by way of reinstatement grant is given a further notice of entitlement under paragraph 6 stating that he is entitled to assistance by way of repurchase; and “the reinstatement work” means the work stated in the previous notice or in a notice under section 544 (change of work required).

(2) Where in such a case—

(a) he satisfies the authority that he has, before the further notice was received, entered into a contract for the provision of services or materials for any of the reinstatement work, or

(b) any such work has been carried out before the further notice was received, and has been carried out to the satisfaction of the appropriate authority,

the previous notice (and any notice under section 544 (change of work required)) continues to have effect for the purposes of reinstatement grant in relation to the reinstatement work or, in a case within paragraph (b), such of that work as has been carried out as mentioned in that paragraph, and the authority shall pay reinstatement grant accordingly.

(3) Where in a case within sub-paragraph (2) the reinstatement work is not completed but part of the work is carried out to the satisfaction of the appropriate authority within the period stated in the notice in question—

(a) the amount of reinstatement grant payable in respect of that part of the work shall be an amount equal to the maximum instalment of grant payable under section 545(2) (instalments not to exceed appropriate percentage of cost of work completed), and

(b) section 546 (repayment of grant in event of failure to complete work) does not apply in relation to reinstatement grant paid in respect of that part of the work.

SCHEDULE 22

Introductory.

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This Schedule applies to compulsory purchase orders under section 290 (acquisition of land comprised in, surrounded by or adjoining a clearance area).

Form of order.

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The order shall be in the prescribed form, shall describe by reference to a map the land to which it applies and shall show in the prescribed manner—

(a) what parts, if any, of the land to be purchased compulsorily are outside the clearance area, and

(b) what buildings, if any, to be purchased compulsorily are included in the clearance area only on the ground that they are by reason of their bad arrangement in relation to other buildings, or the narrowness or bad arrangement of the streets, dangerous or injurious to the health of the inhabitants of the area.

Notice of making of order.

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(1) Before submitting the order to the Secretary of State the local housing authority shall comply with the following requirements.

(2) They shall publish in one or more newspapers circulating in their district a notice in the prescribed form stating the fact of such an order having been made, describing the area comprised in it, and naming a place where a copy of the order and of the map referred to in it may be seen at all reasonable hours.

(3) They shall serve on—

(a) every owner of the land to which the order relates,

(b) every lessee or occupier of the land, other than a tenant for a month or less than a month or a statutory tenant, and

a notice in the prescribed form stating the effect of the order and that it is about to be submitted to the Secretary of State for confirmation and specifying the time within and the manner in which objections to it can be made.

(4) A notice which under sub-paragraph (3) is to be served on an owner, lessee or occupier may be served by addressing it to him by the description of “owner” or “lessee” or “occupier” of the land (describing it) to which it relates and delivering it to some person on the premises or, if there is no person on the premises to whom it may be delivered, by fixing it, or a copy of it, to some conspicuous part of the premises.

Hearing of objections.

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(1) If an objection duly made by a person on whom a notice is required to be served under paragraph 3 is not withdrawn, the Secretary of State shall before confirming the order either—

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

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

and shall consider any objection not withdrawn and the report of the person who held the inquiry or was so appointed.

(2) Where an objection not withdrawn has been made on the ground that a building included in the order is not unfit for human habitation, the local housing authority shall, at least 28 days before the date of the inquiry or hearing—

(a) serve on the objector a notice in writing stating what facts have emerged as their principal grounds for being satisfied that the building is so unfit, and

(b) send a copy of the notice to the Secretary of State.

(3) A person who objects to the order on the grounds that a building included in the order (being a building in which he is interested) is not unfit for human habitation and who appears at the public local inquiry or hearing in support of his objection shall, if the building is included in the order as confirmed as being unfit for human habitation, be entitled, on making a request in writing, to be furnished by the Secretary of State with a statement in writing of his reasons for deciding that the building is so unfit.

(4) Notwithstanding anything in the foregoing provisions of this paragraph, the Secretary of State may require a person who has made an objection to s" tate in writing the grounds of his objection and may disregard the objection for the purposes of this paragraph if he is satisfied that it relates exclusively to matters which can be dealt with by the tribunal by whom the compensation is to be assessed.

Confirmation of order.

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(1) The Secretary of State may confirm the order, with or without modification—

(a) if no objection is duly made by any of the persons on whom notices are required to be served or if all objections so made are withdrawn; or

(b) after considering any objection duly made which is not withdrawn and the report of the person who held the inquiry or of the appointed person.

(2) His power to confirm the order with modifications is not exercisable so as to authorise the local housing authority—

(a) to purchase land which the order as submitted would not have authorised them to purchase, or

(b) to purchase as land comprised in the clearance area land shown in the order as submitted as being outside the area, or

(c) to purchase a building compulsorily on terms less favourable as to compensation than those which would have applied if the order had been confirmed as submitted.

(3) If the Secretary of State is of opinion that land included by the local housing authority in the clearance area should not have been so included, he shall in confirming the order modify it so as to exclude the land for all purposes from the clearance area; but if in such a case he is of opinion that the land might properly be purchased by the authority under section 290(2) (land surrounded by or adjoining clearance area), he shall further modify the order so as to authorise them to purchase the land under that provision.

(4) The Secretary of State may confirm notwithstanding that the effect of the modifications made by him in excluding a building from a clearance area is to sever the area into two or more separate and distinct areas; and in such a case the provisions of this Act relating to the effect of the order when confirmed and to the proceedings to be taken subsequent to its confirmation apply to those areas as one clearance area.

Notice of confirmation of order.

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So soon as may be after the order has been confirmed by the Secretary of State, the local housing authority shall—

(a) publish in a newspaper circulating in their district a notice in the prescribed form stating that the order has been confirmed and naming a place where a copy of the order as confirmed and of the map referred to in the order may be seen at all reasonable hours, and

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

Challenge to validity of order.

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

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

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

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

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

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

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

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

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

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

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

Notice of order having become operative.

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(1) Subject to the provisions of paragraph 7, the order becomes operative at the expiration of six weeks from the date on which notice of confirmation of the order is published in accordance with paragraph 6.

(2) So soon as may be after the order has become operative the local housing authority shall serve a copy of the notice on every person on whom a notice was served by them under paragraph 3 of their intention to submit the order to the Secretary of State for confirmation.

Costs of opposing orders, &c..

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(1) The Secretary of State may make such order as he thinks fit in favour of an owner of lands included in the compulsory purchase order for the allowance of reasonable expenses properly incurred by the owner in opposing the order.

(2) The following shall be deemed to be expenses of the local housing authority under this Part—

(a) expenses allowed to a person under sub-paragraph (1), and

(b) expenses incurred by the Secretary of State in relation to a compulsory purchase order, to such amount as he thinks proper to direct,

and shall be paid to that person and to the Secretary of State in such manner and at such times, either in one sum or by instalments, as the Secretary of State may order.

(3) The Secretary of State may order interest to be paid, at such rate not exceeding 5 per cent. per annum as he thinks fit, upon any sum for the time being due in respect of expenses under sub-paragraph (2).

(4) An order made by the Secretary of State in pursuance of this paragraph may be made a rule of the High Court, and be enforced accordingly.

SCHEDULE 23

Well-maintained houses subject to demolition or closing orders.

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(1) Where a house—

(a) is vacated in pursuance of a demolition or closing order under section 265 (unfit houses beyond repair at reasonable cost), or

(b) might have been the subject of such a demolition order but is vacated and demolished in pursuance of an undertaking for its demolition given to the local housing authority,

a person may represent to the local housing authority that the house in question has been well maintained and that the good maintenance of the house is attributable wholly or partly to work carried out by him or at his expense.

(2) The representation must be made within three months of the service by the local housing authority of a copy of the order or, as the case may be, of the date of the undertaking.

(3) If the authority are satisfied that the representation is correct, they shall make to the person by whom the representation was made such payment, if any, as is authorised by the following provisions of this Schedule; and if they are not so satisfied they shall serve on him notice that no such payment falls to be made.

(4) In reaching that decision the authority shall leave out of account any defects in the house in respect of the matters listed in section 604 (standard of fitness for human habitation) other than repair.

(5) A person aggrieved by a notice under sub-paragraph (3) may, within 21 days after the date of the service of the notice, appeal to the county court and on the appeal the court may make such order confirming, quashing or varying the notice as it thinks fit.

(6) If the persons who would be entitled to appear and be heard on such an appeal so agree in writing, any matter which might have been the subject of an appeal shall instead be submitted to arbitration.

Well-maintained houses purchased under s. 192 or 300.

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(1) Where a house is purchased compulsorily under—

section 192 (unfit house subject to repair notice found to be beyond repair), or

section 300 (purchase of condemned house for temporary housing use),

(2) The representation must be made within three months of the service by the local housing authority of—

(a) in the case of a purchase under section 192, the notice of the compulsory purchase order;

(b) in the case of a purchase under section 300, the notice of their determination to purchase under that section.

(3) If the authority are satisfied that the representation is correct, they shall make to the person by whom the representation was made such payment, if any, as is authorised by the following provisions of this Schedule; and if they are not so satisfied, they shall serve on him notice that no such payment falls to be made.

(4) In reaching that decision the authority shall leave out of account any defects in the house in respect of the matters listed in section 604 (standard of fitness for human habitation), other than repair.

(5) A person aggrieved by a notice under sub-paragraph (3) may, within 21 days after the date of the service of the notice, appeal to the county court and on the appeal the court may make such order confirming, quashing or varying the notice as it thinks fit.

(6) If the persons who would be entitled to appear and be heard on such an appeal so agree in writing, any matter in dispute which might have been the subject of an appeal shall instead be submitted to arbitration.

Well-maintained house subject to clearance.

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(1) Where a house—

(a) is made the subject of a compulory purchase order under section 290 (acquisition of land for clearance) as being unfit for human habitation, and

(b) is on that ground included in the order as confirmed by the Secretary of State,

the local housing authority shall if they are satisfied that the house has been well maintained make a payment of such amount, if any, as is authorised by the following provisions of this Schedule.

(2) The payment shall be made—

(a) if the house is occupied by an owner, to him;

(b) if the house is not so occupied, to the person or persons liable under any enactment, covenant or agreement to maintain and repair the house (and, if more than one person is so liable, in such shares as the authority think equitable in the circumstances);

unless some other person satisfies the authority that the good maintenance is attributable to a material extent to the work carried out by him or at his expense, in which case the authority may, if it appears to them to be equitable in the circumstances, make the payment, in whole or in part, to him.

Amount of payment for well-maintained house.

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(1) The amount of the payment to be made under paragraph 1, 2 or 3 is an amount equal to the rateable value of the house multiplied by four or such other multiplier as may be prescribed by order of the Secretary of State; but subject to the limit that the amount shall not exceed the amount, if any, by which the full value of the house exceeds its site value.

(2) For this purpose the rateable value of a house is—

(a) if the house is a hereditament for which a rateable value is shown in the valuation list in force on the relevant date, that rateable value;

(b) if the house forms part only of such a hereditament, or consists of or forms part of more than one such hereditament, such value as is found by a proper apportionment or aggregation of the rateable value or values shown;

and any question arising as to the proper apportionment or aggregation of any value or values shall be referred to and determined by the district valuer.

(3) The “relevant date” is—

(a) if the house was purchased compulsorily under section 192 (house subject to repair notice found to be beyond repair), the date when the notice mentioned in that section was served;

(b) if the house was vacated in pursuance of a demolition or closing order, the date when the order was made;

(c) if the house was vacated and demolished in pursuance of an undertaking for its demolition given to the local housing authority, the date on which the undertaking was given;

(d) if the house was comprised in an area declared a clearance area, the date on which the area was so declared;

(e) if the house was purchased compulsorily in pursuance of a notice served under section 300 (purchase of condemned house for temporary housing use), the date on which the notice was served.

(4) An order of the Secretary of State prescribing a multiplier for the purposes of this paragraph shall be made by statutory instrument which shall be of no effect unless approved by a resolution of each House of Parliament.

(5) In this paragraph—

“full value” means the amount which would have been payable as compensation if the house had been purchased compulsorily but not as being unfit for human habitation, and

“site value” means the amount which is payable as compensation by virtue of its being purchased compulsorily as being unfit for human habitation, or which would have been so payable if it had been so purchased;

and any question as to such value shall be determined in default of agreement, in the same way as a question of disputed compensation arising on such a purchase.

Partially well-maintained houses.

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(1) A house which apart from this paragraph would not fall to be treated as well maintained for the purposes of paragraphs 1 to 3 shall be so treated if either the exterior or the interior of the house has been well maintained.

(2) A payment made under paragraph 1, 2 or 3 by virtue of this paragraph shall be one half of the amount ascertained in accordance with paragraph 4.

Well-maintained flats and parts of buildings.

6

(1) Where—

(a) a house comprises more than one dwellling, or

(b) a house is occupied partly for the purposes of a dwelling or dwellings and partly for other purposes,

the dwellings or each of the dwellings shall be deemed to be a house for the purposes of the provisions of this Schedule so far as they relate to the maintenance of the interior of a house, but not so far as they relate to the maintenance of the exterior of the house.

(2) For this purpose the exterior of such a house includes any part of the house which is not included in the interior of a dwelling.

(3) Where a closing order is made by virtue of section 266(a) (part of building used, or suitable for use, as a dwelling) with respect to a part of a building the interior of which is well maintained, that part shall be deemed to be a house for the purposes of the provisions of this Schedule.

Notification required in case of house acquired for clearance.

7

(1) Where a house is made the subject of a compulsory purchase order under section 290 (acquisition of land for clearance) as being unfit for human habitation, the local housing authority shall serve notice in accordance with this paragraph as regards payments under this Schedule.

(2) Notice shall be served—

(a) with respect to the house, on every owner, lessee, mortgagee and occupier of the house, and

(b) with respect to each dwelling in the case of a house falling within paragraph 6(1) (houses comprising more than one dwelling or occupied partly for the purposes of a dwelling and partly for other purposes), on every owner, lessee, mortgagee and occupier of the dwelling,

so far as it is reasonably practicable to ascertain those persons.

(3) The notice shall be served not later than the date, or if there is more than one the last date, on which the authority serve notice of the effect of the compulsory purchase order under paragraph 3(3) of Schedule 22 (notice that order about to be submitted for confirmation).

(4) The notice shall be in the prescribed form and shall state that the authority are satisfied—

(a) that, in the case of a house which does not fall within paragraph 5 or 6(1) (payments in respect of partially well maintained house or parts of buildings), both the interior and exterior of the house have been well maintained,

(b) that, in the case of a house which would not be treated as well maintained apart from paragraph 5 or 6(1), either the interior or the exterior of the house has been well maintained,

(c) that in the case of a house falling within paragraph 6(1), the exterior of the house (as defined in that paragraph) has been well maintained,

(d) that in the case of a dwelling falling within paragraph 6(1), the interior of the dwelling has been well maintained, or

(e) that no part of the house or dwelling has been well maintained.

(5) A notice stating that the authority are satisfied—

(a) as mentioned in sub-paragraph (4)(b) shall also state the reasons why the authority are not satisfied that the interior or, as the case may be, the exterior of the house concerned has been well maintained;

(b) as mentioned in sub-paragraph (4)(e) shall state the reasons why the authority are satisfied that no part of the house or dwelling has been well maintained.

Appeal against notification under paragraph 7.

8

(1) An owner, lessee, mortgagee or occupier of a house or dwelling in respect of which a notice is served to which paragraph 7(5) applies (duty to state reasons for adverse decision) who is aggrieved at the decision of the local housing authority may make a written representation to that effect to the Secretary of State.

(2) The representation shall be made in the prescribed manner and within the period within which an objection may be made to the compulsory purchase order concerned.

(3) The Secretary of State may if he thinks it appropriate to do so and (if he considers it necessary) after causing the house or dwelling concerned to be inspected by an officer of his, give directions for the making by the local housing authority of a payment (or, as the case may be, a further payment) in respect of the house or dwelling concerned, of the amount ascertained in accordance with paragraph 4 or, as the case may require, one-half of that amount.

SCHEDULE 24

PART I — Payments in Respect of Owner-Occupied Houses

Introductory.

1

(1) This Part of this Schedule applies where a house—

(a) has been acquired at site value in accordance with section 585 (site value compensation for unfit houses acquired), or

(b) has been vacated in pursuance of a demolition order or closing order under section 265 (unfit houses beyond repair at reasonable cost), or

(c) might have been the subject of such a demolition order but is vacated and demolished in pursuance of an undertaking for its demolition given to the local housing authority.

(2) The “relevant date” for the purposes of this part of this Schedule is—

(a) if the house was purchased compulsorily under section 192 (house subject to repair notice found to be beyond repair), the date when the notice mentioned in that section was served;

(b) if the house was vacated in pursuance of a demolition order or closing order, the date when the order was made;

(c) if the house was demolished in pursuance of an undertaking given in accordance with section 264, the date when the undertaking was given;

(d) if the house was comprised in an area declared as a clearance area under section 289, the date when the area was so declared;

(e) if the house was purchased compulsorily in pursuance of a notice served under section 300 (purchase of condemned house for temporary housing use), the date when the notice was served.

Right to payment: main cases.

2

(1) Where this Part of this Schedule applies and—

(a) on the relevant date and throughout the period of two years ending with that date the house was wholly or partly occupied as a private dwelling, and

(b) the person so occupying it (or, if during that period it was so occupied by two or more persons in succession, each of those persons) was a person entitled to an interest in the house or a member of the family of a person so entitled,

the local housing authority shall make in respect of that interest a payment of an amount determined in accordance with the following provisions of this Part of this Schedule.

(2) The authority shall also make such a payment where an interest in the house was acquired by a person less than two years before the relevant date if—

(a) the conditions specified in sub-paragraph (1) were met for the period beginning with the acquisition and ending with the relevant date,

(b) the authority are satisfied that before acquiring the interest he made all reasonable inquiries to ascertain whether it was likely that the notice, order, undertaking or declaration in question would be served, made or given within two years of the acquisition, and that he had no reason to believe that it was likely, and

(c) the person entitled to the interest when the house is purchased or vacated is the person mentioned above or a member of his family.

(3) For the purposes of this paragraph a person previously in occupation of the whole or part of the house who, during a part of the qualifying period amounting (or parts together amounting) to not more than one year, was not in occupation by reason only of—

(a) a posting in the course of his duties as a member of the armed forces of the Crown, or

(b) a change in the place of his employment or occupation,

shall be deemed to have continued in occupation during that part or those parts.

Right to payment: occupation before 13th December 1955.

3

(1) Where this Part of this Schedule applies and—

(a) on 13th December 1955 the house was wholly or partly occupied as a private dwelling,

(b) the person so occupying it was (or was a member of the family of) a person who acquired an interest in the house by purchase for value on or after 1st September 1939 and either before 13th December 1955 or before the relevant date, and

(c) at the date when the house was purchased or vacated that person or a member of his family was entitled to an interest in the house,

the local housing authority shall make in respect of that interest a payment of an amount determined in accordance with the following provisions of this Part of this Schedule.

(2) Where a person ceased to occupy a house or part of a house not more than one year before 13th December 1955 by reason only of—

(a) a posting in the course of his duties as member of the armed forces of the Crown, or

(b) a change in the place of his employment or occupation,

sub-paragraph (1) has effect as if he had occupied the house or part on that day in like manner as immediately before he ceased to occupy it.

(3) This paragraph applies only where no payment falls to be made under paragraph 2.

Amount of payment.

4

(1) The amount of the payment to be made in respect of an interest is its full compulsory purchase value less the compensation which was or would have been payable in respect of the interest in connection with the compulsory purchase of the house at site value.

(2) For this purpose—

(a) “full compulsory purchase value” means the compensation which would be payable in respect of the compulsory purchase of that interest if it fell to be assessed in accordance with the Land Compensation Act 1961, and

(b) “site value” means compensation assessed in accordance with section 585.

(3) The amount payable shall be reduced by so much, if any, of the amount as may reasonably be attributed to any part of the house occupied, at the date of the making of the order in question or the giving of the undertaking, for any purposes other than those of a private dwelling.

(4) Any question as to the purposes for which any part of a house was occupied shall be determined by the Secretary of State; subject to that, the amount of any payment under this Part of this Schedule shall be determined (in default of agreement) as if it were compensation payable in respect of the compulsory purchase of the interest and shall be dealt with accordingly.

Supplementary provisions.

5

(1) In this Part of this Schedule—

“house” includes any building constructed or adapted wholly or partly for use as a dwelling, and

“interest” in a house does not include the interest of a tenant for a year or any less period or of a statutory tenant.

(2) For the purposes of this Part of this Schedule a person who on the death of another became entitled to an interest of his shall be deemed to have been entitled to that interest as from the date of death.

(3) A payment under this Part of this Schedule in respect of an interest which, at the date when the house was purchased compulsorily or, as the case may be, vacated, was held by virtue of an agreement to purchase by instalments shall be made to the person entitled to the interest at that date.

6

(1) For the purposes of this Part of this Schedule a person is a member of another’s family if that person is—

(a) the other’s wife or husband, or

(b) a son or daughter or a son-in-law or daughter-in-law of the other, or of the other’s wife or husband, or

(2) In sub-paragraph (1)(b) any reference to a person’s son or daughter includes a step-son or step-daughter and any illegitimate son or daughter of that person, and “son-in-law” and “daughter-in-law” shall be construed accordingly.

PART II — Payments in Respect of Houses used for Business Purposes

Introductory.

1

(1) This Part of this Schedule applies where a house—

(a) has been purchased at site value in pursuance of section 585,

(b) has been vacated in pursuance of a demolition order under section 265 (unfit houses beyond repair at reasonable cost), or

(c) might have been the subject of such a demolition order but is vacated and demolished in pursuance of an undertaking for its demolition given to the local housing authority.

(2) The “relevant date” for the purpose of this Part of this Schedule is—

(a) if the house was purchased compulsorily, the date of making of the compulsory purchase order;

(b) if the house was vacated in pursuance of a demolition order, the date when the order was made;

Right to payment: main case.

2

If at the relevant date and at all times during the two years preceding that date—

(a) the house was occupied wholly or partly for the purposes of a business, and

(b) the person entitled to the receipts of the business held an interest in the house,

the local housing authority shall make in respect of that interest a payment of the amount specified in the following provisions of this Part of this Schedule

Right to payment: business use on 13th December 1955.

3

The authority shall also make such a payment if no payment falls to be made under paragraph 2 but the conditions specified in sub-paragraphs (a) and (b) of that paragraph were satisfied at the relevant date and on 13th December 1955.

Amount of payment.

4

(1) The amount of the payment to be made in respect of an interest is its full compulsory purchase value less the compensation which was or would have been payable in respect of the interest in connection with the compulsory purchase of the house at site value.

(2) For this purpose—

(a) “full compulsory purchase value” means the compensation which would be payable in respect of the compulsory purchase of that interest if it fell to be assessed in accordance with the Land Compensation Act 1961, and

(b) “site value” means compensation assessed in accordance with section 585.

(3) The amount payable shall be reduced by so much, if any, of the amount as may reasonably be attributed to any part of the house not occupied at the relevant date for the purposes of the business.

(4) Any question arising under sub-paragraph (3) as to the purposes for which any part of a house was occupied shall be determined by the Secretary of State; subject to that, the amount of any payment under this Part of this Schedule shall be determined (in default of agreement) as if it were compensation payable in respect of the compulsory purchase of the interest and shall be dealt wtih accordingly.

Supplementary provisions.

5

In this Part of this Schedule—

“business”, in relation to the purposes for which a house was occupied, does not include the letting of accommodation in the house, whether with or without service;

“house” includes any building constructed or adapted wholly or partly for use as a dwelling;

“interest” in a house does not include the interest of a tenant for a year or any less period or of a statutory tenant.

Local housing authorities.

Buildings situated in more than one district.

6A

(1) In this Act “the Relevant Authority” means the Regulator of Social Housing, the Secretary of State or Scottish Homes, subject as follows.

(2) In relation to a housing association which is—

(a) a registered charity which has its address for the purposes of registration by the Charity Commission in Wales,

(b) a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014 which has its registered office for the purposes of that Act in Wales, or

(c) a company registered under the Companies Act 2006 which has its registered office for the purposes of that Act in Wales,

“the Relevant Authority” means the Secretary of State.

(3) In relation to a housing association which is a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014 which has its registered office for the purposes of that Act in Scotland, “the Relevant Authority” means Scottish Homes.

(4) In relation to any other housing association which is a registered charity, a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014 or a company registered under the Companies Act 2006, “the Relevant Authority” means the Regulator of Social Housing.

(4A) This section is subject to any provision made elsewhere in this Act.

(5) In this section “registered charity” means a charity which is registered in accordance with section 30 of the Charities Act 2011 . . . .

Housing trusts.

11A

(1) A local housing authority may provide in connection with the provision of housing accommodation by them (whether or not under this Part) such welfare services, that is to say, services for promoting the welfare of the persons for whom the accommodation is so provided, as accord with the needs of those persons.

(2) The authority may make reasonable charges for welfare services provided by virtue of this section.

(3) In this section “welfare services” does not include the repair, maintenance, supervision or management of houses or other property.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Management agreements

27A

27AA

27AB

(1) The Secretary of State may make regulations for imposing requirements on a local housing authority in any case where a tenant management organisation serves written notice on the authority proposing that the authority should enter into a management agreement with that organisation.

(2) The regulations may make provision requiring the authority—

(a) to provide or finance the provision of such office accommodation and facilities, and such training, as the organisation reasonably requires for the purpose of pursuing the proposal;

(b) to arrange for such feasibility studies with respect to the proposal as may be determined by or under the regulations to be conducted by such persons as may be so determined;

(ba) to provide to the organisation such information or descriptions of information, in connection with the proposal, as may be prescribed in the regulations;

(bb) to take, in circumstances prescribed in the regulations, such other steps as may be so prescribed to co-operate with the organisation in connection with the proposal;

(c) to arrange for such ballots or polls with respect to the proposal as may be determined by or under the regulations to be conducted of such persons as may be so determined; and

(d) in such circumstances as may be prescribed by the regulations (which shall include the organisation becoming registered if it has not already done so), to enter into a management agreement with the organisation.

(3) The regulations may make provision with respect to any management agreement which is to be entered into in pursuance of the regulations—

(a) for determining the houses and land to which the agreement should relate, and the amounts which should be paid under the agreement to the organisation;

(b) requiring the agreement to be in such form as may be approved by the Secretary of State and to contain such provisions as may be prescribed by the regulations;

(c) requiring the agreement to take effect immediately after the expiry or other determination of any previous agreement; and

(d) where any previous agreement contains provisions for its determination by the authority, requiring the authority to determine it as soon as may be after the agreement is entered into.

(4) The regulations may also make such procedural, incidental, supplementary and transitional provisions as may appear to the Secretary of State necessary or expedient, and may in particular make provision—

(a) for particular questions arising under the regulations to be determined by the authority or the person making the regulations;

(b) for other questions so arising to be determined by an arbitrator agreed to by the parties or, in default of agreement, appointed by the Secretary of State;

(ba) setting time-limits for the carrying out of requirements under the regulations;

(c) requiring any person exercising functions under the regulations to act in accordance with any guidance or directions given by the Secretary of State; and

(d) for enabling the authority, if invited to do so by the organisation concerned, to nominate one or more persons to be directors or other officers of any tenant management organisation with whom the authority have entered into, or propose to enter into, a management agreement.

(5) Nothing in subsections (2) to (4) above shall be taken as prejudicing the generality of subsection (1).

(6) Regulations under this section—

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

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

(7) Except as otherwise provided by regulations under this section—

(a) a local housing authority shall not enter into a management agreement with a tenant management organisation otherwise than in pursuance of the regulations; and

(b) the provisions of the regulations shall apply in relation to the entering into of such an agreement with such an organisation in place of—

(i) the provisions of regulations under section 27BA (consultation with respect to management)

(ii) in the case of secure tenants or tenants who are secure contract-holders, the provisions of section 105 (consultation on matters of housing management), . . .

(iii) . . . and

(iv) in the case of introductory tenants, the provisions of section 137 of the Housing Act 1996 (consultation on matters of housing management).

(8) In this section—

“ arbitrator ” means a member of a panel approved for the purposes of the regulations by the Secretary of State;

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

“contract-holder” has the same meaning as in the Renting Homes (Wales) Act 2016 (anaw 1) (see section 7 of that Act);

“ previous agreement ”, in relation to an agreement entered into in pursuance of the regulations, means a management agreement , or a section 247 or 249 arrangement, previously entered into in relation to the same houses and land;

“ registered ” means registered under the Co-operative and Community Benefit Societies Act 2014 or the Companies Act 2006 ;

“section 247 or 249 arrangement” has the meaning given by section 250A(6) of the Housing and Regeneration Act 2008;

“secure contract” has the same meaning as in the Renting Homes (Wales) Act 2016 (see section 8 of that Act);

“ tenant management organisation ” means a body which satisfies such conditions as may be determined by or under the regulations.

27B

(1) In this section “housing co-operative” means a society, company or body of trustees with which a housing co-operative agreement was made, that is to say—

(a) an agreement to which paragraph 9 of Schedule 1 to the Housing Rents and Subsidies Act 1975 or Schedule 20 to the Housing Act 1980 applied or,

(b) an agreement made under section 27 above before the commencement of section 10 of the Housing and Planning Act 1986 (which substituted the present section 27).

(2) A housing co-operative agreement made with a local housing authority which is in force immediately before the commencement of section 10 of the Housing and Planning Act 1986 has effect as if made under the present section 27, so that, in particular, any terms of the agreement providing for the letting of land to the housing co-operative no longer have effect except in relation to lettings made before commencement.

(3) A housing co-operative agreement made with a new town corporation . . . which is in force immediately before the commencement of section 10 of the Housing and Planning Act 1986 remains in force notwithstanding that the present section 27 does not apply to such authorities.

(4) In this Act (except in section 27) the expressions “management agreement” and “manager”, in relation to such an agreement, include a housing co-operative agreement to which subsection (2) or (3) applies and the housing co-operative with whom the agreement is made.

Consultation with respect to housing management

27BA

(1) The Secretary of State may make regulations for imposing requirements on a local housing authority to consult tenants, or to consider representations made to them by tenants, with respect to the exercise of their management functions (including proposals as to the exercise of those functions), in relation to any of the authority’s houses or other land held for a related purpose.

(2) The regulations may include provision requiring a local housing authority to consult tenants, or consider representations made by tenants, with respect to—

(a) the terms of a written specification to be prepared by the authority of functions proposed to be exercised by the authority or another person;

(b) a proposal of the authority to exercise management functions themselves;

(d) the standards of service for the time being achieved by the authority or (as the case may be) the person with whom they have entered into a management agreement;

(e) a proposal to enforce the standards of service required by a management agreement.

(3) The requirements imposed on a local housing authority by the regulations may include provision with respect to—

(a) the tenants to be consulted or whose representations are to be considered;

(b) the means by which consultation is to be effected (including the arrangements to be made for tenants to consider the matters on which they have been consulted);

(d) the action to be taken by the authority where representations are made.

(4) The regulations may include provision requiring a local housing authority to consult representatives of tenants, or to consider representations made to them by such representatives, as well as (or instead of) the tenants themselves; and accordingly, references in subsections (1) to (3) above to tenants include references to such representatives.

(5) The regulations may include provision for particular questions arising under them to be determined by a local housing authority on whom they impose requirements.

(6) Nothing in subsections (2) to (5) above shall be taken as prejudicing the generality of subsection (1).

(7) Regulations under this section—

(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 to be necessary or expedient, and

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

(8) Except as otherwise provided by the regulations, in the case of secure tenants or tenants who are secure contract-holders, the provisions of the regulations shall apply in place of the provisions of section 105 (consultation on matters of housing management).

(9) Except as otherwise provided by the regulations, in the case of introductory tenants, the provisions of the regulations shall apply in place of the provisions of section 137 of the Housing Act 1996 (consultation on matters of housing management).

(10) References in this section to the management functions of a local housing authority in relation to houses or land shall be construed in the same way as references to any such functions in section 27.

Proposals for co-operative management or ownership

27C

34A

(1) The appropriate person may make regulations for imposing requirements on a local housing authority in any case where a tenant group serves written notice on the authority proposing that the authority should dispose of particular land held by them for the purposes of this Part, or a particular description of such land, to a relevant housing provider.

(2) The regulations may make provision requiring the authority—

(a) to provide, or finance the provision of, such office accommodation and facilities, and such training, as the tenant group reasonably requires for the purpose of pursuing the proposal;

(b) to arrange for such feasibility studies with respect to the proposal as may be determined by or under the regulations to be conducted by such persons as may be so determined;

(c) to provide to the tenant group such information or descriptions of information, in connection with the proposal, as may be prescribed in the regulations;

(d) to take, in circumstances prescribed in the regulations, such other steps as may be so prescribed to co-operate with the tenant group in connection with the proposal;

(e) to arrange for such ballots or polls with respect to the proposal as may be determined by or under the regulations to be conducted by such persons as may be so determined; and

(f) in such circumstances as may be prescribed by the regulations, to enter into an agreement for the disposal.

(3) The regulations may make provision—

(a) for determining the houses and other land to which the disposal should relate, and the amounts which should be paid in respect of the disposal;

(b) requiring the agreement for the disposal to be in such form as may be approved by the appropriate person and to contain such provisions as may be prescribed by the regulations.

(4) The regulations may make such procedural, incidental, supplementary and transitional provisions as may appear to the appropriate person necessary or expedient, and may in particular make provision—

(a) for particular questions arising under the regulations to be determined by the authority or the appropriate person;

(b) setting time-limits for the carrying out of requirements under the regulations;

(c) requiring any person exercising functions under the regulations to act in accordance with any guidance or directions given by the appropriate person.

(5) Nothing in subsections (2) to (4) is to be taken as prejudicing the generality of subsection (1).

(6) Any regulations which provide for the appropriate person to approve a proposal for a local housing authority to dispose of land must ensure that the authority has the opportunity to make representations to the appropriate person before the appropriate person decides whether or not to approve the proposal.

(7) This section does not affect any requirement under section 32 or 33 for the consent of the Secretary of State or the Welsh Ministers.

(8) Regulations under this section—

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

(b) are to be made by statutory instrument which—

(i) in the case of an instrument made by the Secretary of State, is subject to annulment in pursuance of a resolution of either House of Parliament; and

(ii) in the case of an instrument made by the Welsh Ministers, is subject to annulment in pursuance of a resolution of the National Assembly for Wales.

(9) In this section—

“ appropriate person ” means— in relation to England, the Secretary of State; andin relation to Wales, the Welsh Ministers;

“ relevant housing provider ” means— in relation to England, a private registered provider of social housing; andin relation to Wales, a registered social landlord; and

“ tenant group ” means a body or other person which satisfies such conditions as may be determined by or under the regulations.

35A

(1) In calculating the maximum amount which may be demanded by the authority under section 35, such amount (if any) of the price or premium paid for the first relevant disposal which is attributable to improvements made to the house—

(a) by the person by whom the disposal is, or is to be, made, and

(b) after the conveyance, grant or assignment and before the disposal,

shall be disregarded.

(2) The amount to be disregarded under this section shall be such amount as may be agreed between the parties or determined by the district valuer.

(3) The district valuer shall not be required by virtue of this section to make a determination for the purposes of this section unless—

(a) it is reasonably practicable for him to do so; and

(b) his reasonable costs in making the determination are paid by the person by whom the disposal is, or is to be, made.

(4) If the district valuer does not make a determination for the purposes of this section (and in default of an agreement), no amount is required to be disregarded under this section.

36A

(1) This section applies where, on a disposal of a house under section 32, a discount is given to the purchaser by the local authority in accordance with a consent given by the Secretary of State under subsection (2) of that section; but this section does not apply in any such case if the consent so provides.

(2) On the disposal the conveyance, grant or assignment shall contain the following covenant, which shall be binding on the purchaser and his successors in title.

(3) The covenant shall be to the effect that, until the end of the period of ten years beginning with the conveyance, grant or assignment, there will be no relevant disposal which is not an exempted disposal, unless the prescribed conditions have been satisfied in relation to that or a previous such disposal.

(4) In subsection (3) “the prescribed conditions” means such conditions as are prescribed by regulations under this section at the time when the conveyance, grant or assignment is made.

(5) The Secretary of State may by regulations prescribe such conditions as he considers appropriate for and in connection with conferring on—

(a) a local authority which have made a disposal as mentioned in subsection (1), or

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