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

(b) otherwise, is such as may be fixed by the local housing authority when they approve the application for the grant but shall not exceed the appropriate percentage of the eligible expense.

(2) The authority shall notify the applicant of the amount of the grant together with the notification under section 496(1) (notification of estimated expense of works).

(3) Where the authority redetermine the amount of the estimated expense under section 496(2) (new estimate where works cannot be carried out in accordance with original estimate), they shall make such other adjustments relating to the amount of the grant as appear to them to be appropriate; but the amount of the grant shall not be increased beyond the amount which could have been notified when the application was approved if the estimate contained in the application had been of the same amount as the further estimate.

(4) Where the authority redetermine the amount of the estimated expense under section 496(3) (redetermination where additional works prove necessary), the eligible expense shall be re-calculated under section 497, and if on the re-calculation the amount is greater than when the application was approved the amount of the grant shall be increased, and the applicant notified, accordingly.

Grant conditions

Conditions as to future occupation: introductory.

499

(1) Where an application for a grant (other than a special grant) has been approved by a local housing authority, the provisions of—

section 500 (condition as to owner-occupation),

section 501 (condition as to availability for letting), and

section 502 (conditions as to provision of information about occupation),

apply during the initial period as to the occupation of the dwelling or, as the case may be, each of the dwellings to which the grant relates.

(2) The “initial period” means the period of five years beginning with the date certified by the authority as the date on which the dwelling first becomes fit for occupation after the completion of the relevant works to the satisfaction of the authority.

(3) That date is referred to in this Part as “the certified date”.

Condition as to owner-occupation.

500

(1) This section applies where the application for the grant was accompanied by a certificate of owner-occupation.

(2) It is a condition of the grant that—

(a) throughout the first year of the initial period the dwelling will, as a residence, be occupied exclusively by, or be available for the exclusive occupation of, a qualifying person and the members of his household (if any), and

(b) if at any time after that first year (but during the initial period) the dwelling is not occupied exclusively as his only or main residence by a qualifying person and members of his household (if any), it will be let or available for letting by a qualifying person as a residence, and not for a holiday, to persons other than members of that person’s family.

(3) The following persons are “qualifying persons” for the purposes of this section—

(a) the applicant and any person deriving title to the dwelling through or under him;

(b) a member of the applicant’s family or a grandparent or grandchild of the applicant or his spouse;

(c) at a time when personal representatives or trustees are the qualifying persons by virtue of paragraph (a), a person who under the will or intestacy or, as the case may be, under the terms of the trusts concerned is beneficially entitled to an interest in the dwelling or the proceeds of sale of the dwelling;

(d) a person related to one who qualifies under paragraph (c) by being a member of his family or a grandparent or grandchild of his or of his spouse.

(4) In determining whether there is a breach of the condition specified in subsection(2), a period of not more than twelve months during which the condition was not fulfilled shall be disregarded if—

(a) the period began on the death of a qualifying person who immediately before his death was occupying the dwelling as his residence, and

(b) throughout the period an interest in the dwelling (or in the proceeds of sale of the dwelling), being either the interest which belonged to the deceased or an interest which arose or fell into possession on his death, is vested in his personal representatives (acting in that capacity), or in trustees as such, or by virtue of section 9 of the Administration of Estates Act 1925 (vesting of estate of intestate between death and grant of administration) in the Probate Judge within the meaning of that Act.

Condition as to availability for letting.

501

(1) This section applies where the application for the grant was accompanied by a certificate of availability for letting.

(2) It is a condition of the grant that throughout the initial period—

(a) the dwelling will be let or available for letting as a residence, and not for a holiday, by a qualifying person to persons other than members of the family of that qualifying person or of any other person who is for the time being a qualifying person in relation to the dwelling, or

(b) the dwelling will be occupied or available for occupation by a member of the agricultural population in pursuance of a contract of service and otherwise than as a tenant,

(disregarding any part of that period in which neither of the above paragraphs applies but the dwelling is occupied by a person who is a protected occupier under the Rent (Agriculture) Act 1976).

(3) The following persons are “qualifying persons” for the purposes of this section—

(a) the applicant and any person who derives title to the dwelling through or under him otherwise than by a conveyance for value;

(b) a member of the applicant’s family or a grandparent or grandchild of the applicant or his spouse;

(c) at a time when personal representatives or trustees are the qualifying persons by virtue of paragraph (a), a person who under the will or intestacy or, as the case may require, under the terms of the trusts concerned is beneficially entitled to an interest in the dwelling or the proceedings of sale of the dwelling;

(d) a person related to one who qualifies under paragraph (c) by being a member of his family or a grandparent or grandchild of his or of his spouse.

(4) Where the application was accompanied by a certificate under section 464(2) (tenants' applications: certificate to be given by owner or landlord), subsection (3) has effect with the substitution for the references to the applicant of references to the person who gave the certificate.

Conditions as to provision of information about occupation.

502

It is a condition of the grant—

(a) that if, at any time within the initial period, the authority by whom the grant was paid serve notice on the owner of the dwelling requiring him to do so, he shall, within the period of 21 days beginning with the date on which the notice is served, furnish to the authority a certificate giving such information as the authority may reasonably require with respect to the occupation of the dwelling, and

(b) that, if required to do so by the owner of the dwelling, any tenant of the dwelling will furnish the owner with such information as he may reasonably require to enable him to furnish the certificate to the authority.

Imposition of further conditions by local housing authority.

503

(1) Where an application for an improvement grant, intermediate grant or repairs grant is approved by a local housing authority, then, subject to subsection (2), the authority—

(a) may impose with respect to the dwelling or, as the case may be, each of the dwellings to which the grant relates the further conditions specified in section 504 (further conditions as to letting of dwellings), and

(b) shall do so, subject to subsection (3), in the case of a dwelling situated in an area which on the date on which the application is approved is a housing action area or general improvement area;

but the authority may impose no other condition in relation to the approval or making of the grant, whether purporting to operate by way of a condition of the grant, a personal covenant or otherwise.

(2) The further conditions specified in section 504 may not be imposed to the extent that the grant relates to—

(a) a dwelling in which a registered housing assocation or co-operative housing association has an estate or interest on the date on which the application is approved, or

(b) a dwelling in respect of which a certificate of owner-occupation has been given and which has not been let in whole or in part for residential purposes at any time during the period of twelve months immediately preceding the date on which the application is approved (disregarding for this purpose any letting to the applicant, to a member of his family or to a grandparent or grandchild of the applicant or his spouse),or

(c) a dwelling which is occupied by or available for occupation by a member of the agricultural population in pursuance of a contract of service and otherwise than as a tenant, or

(d) a dwelling which is occupied by a person who is a protected occupier or statutory tenant under the Rent (Agriculture) Act 1976.

or where the application is a tenant’s application and is not accompanied by a certificate of availability for letting.

(3) In the case of a dwelling within subsection (1)(b) in respect of which a certificate of owner-occupation has been given, the local housing authority need not impose the further conditions specified in section 504 if it appears to them that in the special circumstances of the case it would be reasonable to dispense with them.

Further conditions as to letting of dwelling.

504

(1) The conditions referred to in section 503(1) (power of local housing authority to impose further conditions) are—

(a) that the dwelling will be let or available for letting on a regulated tenancy or a restricted contract;

(b) that the owner of the dwelling will, if the authority serve notice requiring him to do so, give the authority, within the period of 21 days beginning with the date on which the notice is served, a certificate that the condition set out in paragraph (a) is being fulfilled;

(c) that any tenant of the dwelling will, if required to do so by the owner, give him such information as he may reasonably require for the purpose of enabling him to comply with the condition set out in paragraph (b);

(d) that, if on the certified date there is no registered rent for the dwelling and no application or reference is pending, an application or reference will be made before the expiry of the period of 14 days beginning with the first day, not being earlier than the certified date, on which the dwelling is or becomes subject to a regulated tenancy or let on a restricted contract;

(e) that any such application or reference, either pending or made as mentioned in paragraph(d), will be diligently proceeded with and not withdrawn; and

(f) that no premium (within the meaning of Part IX of the Rent Act 1977) will be required as a condition of the grant, renewal or continuance, on or after the certified date, of a lease or agreement for a lease of, or restricted contract relating to, the dwelling.

(2) In subsection (1)

(a) “regulated tenancy” has the same meaning as in the Rent Act 1977,

(b) “registered rent”, in relation to a dwelling subject to, or available for letting on, a regulated tenancy, means a rent registered under Part IV of that Act, and in relation to a dwelling let or available for letting on a restricted contract, means a rent registered in the register kept under section 79 of that Act, and

(c) “application” and “reference”, in relation to the registration of a rent, mean, respectively, an application to the rent officer and a reference of the restricted contract to the rent tribunal.

Duration and enforceability of grant conditions.

505

(1) A grant condition is in force—

(a) in the case of a condition imposed under section 503 (further conditions) with respect to a dwelling which on the date on which the application is approved is in a housing action area, for the period of seven years beginning with the certified date, and

(b) in any other case, for the period of five years beginning with that date;

but subject to the provisions of section 506 and 507 (repayment of grant).

(2) So long as a grant condition remains in force—

(a) it is binding on any person, other than a housing authority or registered housing association, who is for the time being the owner of the dwelling to which the grant relates, and

(b) it is enforceable against all other persons having an interest in the dwelling as if it were a condition of the terms of every lease, agreement for a lease or statutory tenancy of, or of property including, the dwelling.

(3) A grant condition is a local land charge.

Repayment of grant for breach of condition.

506

(1) In the event of a breach of a grant condition, the local housing authority may demand that the owner for the time being of the dwelling repay the grant forthwith.

(2) The amount payable is—

(a) where the grant related to a single dwelling, the amount of the grant, or

(b) where the grant related to two or more dwellings, such part of the grant as appears to the authority to be referable to the dwelling to which the breach relates,

together with compound interest on that amount or part as from the certified date, calculated at such reasonable rate as the local housing authority may determine and with yearly rests.

(3) The authority may determine not to make such a demand or may demand a lesser amount.

(4) On satisfaction of the liability arising from a demand under this section, all conditions of the grant cease to be in force with respect to the dwelling in question.

Voluntary repayment of grant.

507

(1) If at any time while a condition of a grant remains in force—

(a) the owner of the dwelling to which the condition relates pays to the local housing authority by whom the grant was made the amount specified in section 506(2) (amount repayable for breach of condition), or

(b) a mortgagee of the interest of the owner in that dwelling, being a mortgagee entitled to exercise a power of sale, makes such a payment,

all conditions of the grant cease to be in force with respect to that dwelling.

(2) An amount paid under subsection (1) by a mortgagee shall be treated as part of the sums secured by the mortgage and may be discharged accordingly.

(3) The purposes authorised for the application of capital money by—

section 73 of the Settled Land Act 1925,

that section as applied by section 28 of the Law of Property Act 1925 in relation to trusts for sale, and

section 26 of the Universities & College Estates Act 1925,

include the making of payments under subsection (1).

Main grants: supplementary provisions

Standard amenities and maximum eligible amounts.

508

(1) The standard amenities for the purposes of this Part are those described in column 1 of the following Table (subject to the Notes below); and the maximum eligible amounts for each description of amenity are those shown in column 2 of the Table.

Description of amenity	Maximum eligible amount	Maximum eligible amount
Description of amenity	Premises in Greater London	Premises elsewhere
Description of amenity	£	£
NOTES: A fixed bath or shower shall be in a bathroom, unless Note 2 applies. If it is not reasonably practicable for the fixed bath or shower to be in a bathroom but it is reasonably practicable for it to be provided with a hot and cold water supply, it need not be in a bathroom but may be in any part of the dwelling which is not a bedroom. A water closet shall, if reasonably practicable, be in, and accessible from within, the dwelling or, where the dwelling is part of a larger building, in such a position in that building as to be readily accessible from the dwelling. Notes 2 and 3 do not apply for the purposes of special grants.
A fixed bath or shower (see Notes 1 and 2)	450	340
A hot and cold water supply at a fixed bath or shower (see Notes 1 and 2)	570	430
A wash-hand basin	175	130
A hot and cold water supply at a wash-hand basin	300	230
A sink	450	340
A hot and cold water supply at a sink	380	290
A water closet (see Note 3)	680	515

(2) The Secretary of State may by order vary the provisions of the above Table and Notes.

(3) An order—

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

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

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

Meaning of “the appropriate percentage”.

509

(1) The “appropriate percentage” for the purpose of determining the amount or maximum amount of a grant shall be prescribed by order of the Secretary of State made with the consent of the Treasury.

(2) An order—

(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 and shall not be made unless a draft of it has been laid before and approved by resolution of the House of Commons.

(3) An order has effect with respect to applications for grants approved after such date as may be specified in the order, and the specified date shall not be earlier than the date of the laying of the draft.

Statement of reasons for refusing application or giving less than maximum grant.

510

(1) If the local housing authority—

(a) do not approve an application for a grant, or

(b) where the amount of the grant is discretionary, fix the amount at less than the appropriate percentage of the eligible expense.

they shall give the applicant a statement in writing of their reasons for doing so.

Payment of grants: general.

511

(1) Where the local housing authority have approved an application for a grant, they shall pay the grant, subject to section 512 (conditions as to completion of works).

(2) The grant may be paid—

(a) after the completion of the works towards the cost of which it is payable, or

(b) in part by instalments as the works progress and the balance after completion of the works.

(3) Where a grant is paid in instalments, the aggregate of the instalments paid before the completion of the works shall not at any time exceed—

(a) in the case of an intermediate grant, the appropriate percentage of the total cost of the works so far executed;

(b) in the case of an improvement grant, special grant or repairs grant, an amount bearing to that total cost the same proportion as the amount of the grant fixed by the authority bears to the eligible expense.

Payment of grants: conditions as to completion of works.

512

(1) The payment of a grant, or part of a grant, is conditional upon the works or the corresponding part being executed to the satisfaction of the local housing authority.

(2) In approving an application for a grant the authority may require as a condition of paying the grant that the relevant works are carried out within such time, not being less than twelve months, as the authority may specify or such further time as they may allow.

(3) In particular, where the authority are satisfied that the relevant works cannot or could not have been carried out without the carrying out of additional works, they may allow further time as the time within which the relevant works and the additional works are to be carried out.

(4) If an instalment of a grant is paid before the completion of the works and the works are not completed within—

(a) the time specified by the authority under subsection (2) or such further time as they may allow, or

(b) if no time was so specified, twelve months from the date on which the instalment is paid or such further time as the authority may allow,

the authority may demand the repayment forthwith by the applicant or his personal representatives of that instalment, and any further sums paid by the authority, together with interest at such reasonable rate as the authority may determine from the date of payment until repayment.

Special cases: parsonages, application by charities, &c.

513

(1) This section applies to—

(a) an application for a grant in respect of glebe land or the residence house of an ecclesiastical benefice made, during a period when the benefice is vacant, by a sequestrator of the profits of the benefice, and

(b) an application for a grant made by a charity or on behalf of a charity by the charity trustees of the charity.

(2) The following provisions do not apply to an application to which this section applies—

section 463(1) (preliminary condition: interest of applicant in the property),

section 464 (preliminary condition: certificate as to future occupation), and

sections 499 to 504 (grant conditions as to future occupation, &c.).

Power of local housing authority to carry out works which would attract grant.

514

(1) The local housing authority may by agreement with a person having the requisite interest execute at his expense—

(a) any works towards the cost of which a grant under this Part is payable or might be paid on an application duly made and approved, and

(b) any further works which it is in their opinion necessary or desirable to execute together with the works mentioned in paragraph (a)

(2) The “requisite interest” means an interest in every parcel of land on which the works are to be carried out which is either—

(a) an estate in fee simple absolute in possession, or

(b) a term of years absolute of which not less than five years remains unexpired.

(3) The works with respect to which an agreement may be made under this section include, if the works are to be carried out in a general improvement area—

(a) any works the carrying out of which will or might be assisted under section 255(1)(a) (improvement of amenities or dwellings), or

(b) any works of external repair (including decorative repair) or replacement.

Grants restricted to applicant and his personal representatives.

515

(1) In relation to a grant or an application for a grant, references in the preceding provisions of this Part, and in subsection(2) below, to the applicant shall be construed in relation to any time after his death as a reference to his personal representatives.

(2) If, before the certified date, the applicant ceases to have an owner’s interest or ceases to be a tenant of the dwelling—

(a) no grant shall be paid or, as the case may be, no further instalments shall be paid, and

(b) the local housing authority may demand that any instalment of the grant which has been paid, be repaid forthwith, together with interest from the date on which it was paid until repayment at such reasonable rate as the authority may determine.

(3) In subsection (2) “owner’s interest” and “tenant” have the same meaning as in section 463(1) (preliminary condition: interest of applicant in the property).

Contributions by Secretary of State.

516

(1) The Secretary of State may make contributions towards the expense incurred by a local housing authority in making a grant.

(2) The contributions shall be annual sums—

(a) payable in respect of a period of 20 years beginning with the financial year in which the works towards the cost of which the grant was made were completed, and

(b) equal to a percentage of the annual loan charges referable to the amount of the grant.

(3) Subject to any order under section 517 (power to vary percentages), the percentage is—

(a) 90 per cent. in a case where the premises to which the application relates are in a general improvement area or housing action area, and

(b) 75 per cent. in any other case;

and, subject to subsection (4), the applicable percentage shall be determined by reference to the state of affairs at the date when the application is approved.

(4) Where on that date the premises are in an area declared to be a housing action area and the Secretary of State subsequently notifies the local housing authority—

(a) that the area is no longer to be such an area, or

(b) that land on which the premises are situated is to be excluded from the area,

he may (without prejudice to his discretion under subsection (1) not to make a contribution) make a contribution on the basis that the applicable percentage is 75 per cent.

(5) The annual loan charges referable to the amount of a grant are the annual sums which, in the opinion of the Secretary of State, would fall to be provided by a housing authority for the payment of interest on, and the repayment of, a loan of that amount repayable over a period of 20 years.

(6) Contributions under this section are payable subject to such conditions as to records, certificates, audit or otherwise as the Secretary of State may, with the approval of the Treasury, impose.

Power to vary percentages mentioned in s. 516.

517

(1) The Secretary of State may by order made with the consent of the Treasury vary either or both of the percentages mentioned in section 516 (contributions by Secretary of State to expense of making grants).

(2) An order—

(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 and shall not be made unless a draft of it has been laid before and approved by resolution of the House of Commons.

(3) An order has effect with respect to applications for grants approved after such date as may be specified in the order, and the specified date shall not be earlier than the date of the laying of the draft.

518

(1) In this Part “dwelling for disabled occupant” means a dwelling which—

(a) is a disabled occupant’s only or main residence when an application for a grant in respect of it is made, or

(b) is likely in the opinion of the local housing authority to become a disabled occupant’s only or main residence within a reasonable period after the completion of the relevant works,

and “disabled occupant” means a disabled person for whose benefit it is proposed to carry out any of the relevant works.

(2) In subsection (1) “disabled person” means—

(a) a person who is registered in pursuance of arrangements made under section 29(1) of the National Assistance Act 1948 (handicapped persons' welfare), or

(b) any other person for whose welfare arrangements have been made under that provision or, in the opinion of the welfare authority, might be made under it;

and for this purpose “welfare authority” means the council which is the local authority for the purposes of the Local Authority Social Services Act 1970 for the area in which the dwelling is situated.

(3) In this part “improvement”, in relation to a dwelling for a disabled occupant, includes the doing of works required for making it suitable for his accommodation, welfare or employment.

Meaning of “reasonable repair”.

519

(1) In determining what is “reasonable repair”, in relation to a dwelling or house, a local housing authority—

(a) shall have regard to the age and character of the dwelling or house and the locality in which it is situated

(b) for the purposes of an intermediate grant, shall also have regard to the period during which the dwelling is likely to be available for use as a dwelling, and

Members of a person’s family.

520

(1) A person is a member of another’s family within the meaning of this Part if—

(a) he is the spouse of that person, or

(b) he is that person’s parent or child.

(2) For the purposes of subsection (1)(b)—

(a) a relationship by marriage shall be treated as a relationship by blood,

(b) the stepchild of a person shall be treated as his child, and

Grants for thermal insulation

Schemes for grants for thermal insulation.

521

Finance and administration of schemes under s. 521.

522

(1) Finance for the making of grants under section 521 shall be provided to local housing authorities from time to time by the Secretary of State.

(2) A local housing authority is not required, nor has power, to make grants under section 521 in any year beyond those for which the Secretary of State has notified them that finance is committed for that year in respect of the authority’s district.

(3) In the administration of grants under section 521 local housing authorities shall comply with any directions given to them by the Secretary of State after consultation with their representative organisations.

(4) The Secretary of State may, in particular, give directions as to—

(a) the way in which applications for grants are to be dealt with, and the priorities to be observed between applicants and different categories of applicant, and

(b) the means of authenticating applications, so that grants are only given in proper cases, and of ensuring that the works are carried out to any standard specified in the applicable scheme.

(5) The Secretary of State shall, with the approval of the Treasury, pay such sums as he thinks reasonable in respect of the administrative expenses incurred by local housing authorities in operating schemes under section 521.

Miscellaneous

Assistance for provision of separate service pipe for water supply.

523

(1) The local housing authority may, if they think fit, give assistance in respect of the provision of a separate service pipe for a house which has a piped supply of water from a water main but no separate service pipe.

(2) The assistance shall be by way of a grant in respect of all or part of the expenses incurred in the provision of the separate service pipe.

(3) The reference in subsection (2) to the expenses incurred in the provision of the separate service pipe includes, in a case where all or part of the works are carried out by . . . water undertakers (whether in exercise of default powers or otherwise), sums payable to the undertakers by the owner of the house, or any other person, for carrying out the works.

Contributions under superseded enactments.

524

Schedule 19 has effect with respect to contributions payable under superseded enactments.

General supplementary provisions

Minor definitions.

525

In this Part—

“ agricultural population ” means—

(a) persons whose employment or latest employment is or was employment in agriculture or in an industry mainly dependent on agriculture, and

(b) the dependents of those persons;

and for this purpose “ agriculture ” includes dairy-farming and poultry-farming and the use of land as grazing, meadow or pasture land, or orchard or osier land or woodland, or for market gardens or nursery grounds;

“ charity trustees ” has the same meaning as in the the Charities Act 2011 ;

“ dwelling ” means a building or part of a building occupied or intended to be ocupied as a separate dwelling, together with any yard, garden, outhouses and appurtenances belonging to it or usually enjoyed with it;

“ house in multiple occupation ” means a house which is occupied by persons who do not form a single household, exclusive of any part of the house which is occupied as a separate dwelling by persons who form a single household;

“ improvement ” includes alteration and enlargement;

“ owner ”, in relation to a dwelling, means the person who—

(a) is for the time being entitled to receive from a lessee of the dwelling (or would be so entitled if the dwelling were let) a rent of not less than two-thirds of the net annual value of the dwelling; and

(b) is not himself liable as lessee of the dwelling, or of property which includes the dwelling, to pay such a rent to a superior landlord.

Index of defined expressions: Part XV.

526

The following Table shows provisions defining or otherwise explaining expressions used in this part (other than provisions defining or explaining an expression in the same section):—

PART XVI — ASSISTANCE FOR OWNERS OF DEFECTIVE HOUSING

Eligibility for assistance

Eligibility for assistance.

527

A person is eligible for assistance under this Part in respect of a dwelling if—

(a) he is an individual who is not a trustee, a trustee for beneficiaries who are all individuals or a personal representative,

(b) the dwelling is a defective dwelling within the meaning of this Part by virtue of a designation under section 528 (designation by Secretary of State) or section 559 (designation under local scheme),

(d) the conditions specified in section 531 (conditions of eligibility: disposal by public sector authority, &c.) are satisfied;

but subject to section 533 (exceptions to eligibility).

Designation of defective dwellings by Secretary of State.

528

(1) The Secretary of State may designate as a class buildings each of which consists of or includes one or more dwellings if it appears to him that—

(a) buildings in the proposed class are defective by reason of their design or construction, and

(b) by virtue of the circumstances mentioned in paragraph (a) having become generally known, the value of some or all of the dwellings concerned has been substantially reduced.

(2) A dwelling which is, or is included in, a building in a class so designated is referred to in this Part as a “defective dwelling”; and in this Part, in relation to such a dwelling—

(a) “the qualifying defect” means what, in the opinion of the Secretary of State, is wrong with the buildings in that class, and

(b) “the cut-off date” means the date by which, in the opinion of the Secretary of State, the circumstances mentioned in subsection (1)(a) became generally known.

(3) A designation shall describe the qualifying defect and specify—

(a) the cut-off date,

(b) the date (being a date falling on or after the cut-off date) on which the designation is to come into operation, and

(4) A designation may make different provision in relation to England and Wales; subject to that, a designated class shall not be described by reference to the area in which the buildings concerned are situated.

(5) Notice of a designation shall be published in the London Gazette.

(6) Any question arising as to whether a building is or was at any time in a class designated under this section shall be determined by the Secretary of State.

Variation or revocation of designation.

529

(1) The Secretary of State may—

(a) vary a designation under section 528, but not so as to vary the cut-off date, or

(b) revoke such a designation.

(2) The Secretary of State may by a variation of the designation extend the period referred to in section 528(3)(c) (period within which assistance must be applied for) whether or not it has expired.

(3) The variation or revocation of a designation does not affect the operation of the provisions of this Part in relation to a dwelling if, before the variation or revocation comes into operation, the dwelling is a defective dwelling by virtue of the designation in question and an application for assistance under this Part has been made.

(4) Notice of the variation or revocation of a designation shall be published in the London Gazette.

Meaning of “relevant interest”.

530

(1) In this Part “relevant interest”, in relation to a dwelling, means the freehold or a long tenancy, not being in either case subject to a long tenancy.

(2) A tenancy is a long tenancy for this purpose, subject to subsection (3), if it is—

(a) a tenancy granted for a term certain exceeding 21 years, whether or not it is (or may become) terminable before the end of that term by notice given by or to the tenant or by re-entry, forfeiture or otherwise,

(b) a tenancy granted in pursuance of Part V (the right to buy), or

(c) a tenancy for a term fixed by law under a grant with a covenant or obligation for perpetual renewal, unless it is a tenancy by sub-demise from one which is not a long tenancy.

(3) A tenancy is not a long tenancy for this purpose if it is—

(a) an interest created by way of security and liable to termination by the exercise of a right of redemption or otherwise, or

(b) a secure tenancy.

(4) References in this part to an interest in a dwelling are to an interest in land which is or includes the dwelling.

Conditions of eligibility: disposal by public sector authority, &c.

531

(1) The conditions referred to in section 527(d) (eligibility for assistance) are that there has been a disposal by a public sector authority of a relevant interest in the dwelling and that either of the following sets of conditions is satisfied.

(2) The first set of conditions is that—

(a) the disposal by a public sector authority was made before the cut-off date, and

(b) there has been no disposal for value by any person of a relevant interest in the dwelling on or after that date.

(3) The second set of conditions is that—

(a) a person to whom section 527 applies acquired a relevant interest in the dwelling on a disposal for value occurring within the period of twelve months beginning with the cut-off date,

(b) he was unaware on the date of the disposal of the association of the dwelling with the qualifying defect,

(c) the value by reference to which the price for the disposal was calculated did not take any, or any adequate, account of the qualifying defect, and

(d) if the cut-off date had fallen immediately after the date of the disposal, the first set of conditions would have been satisfied.

(4) For the purposes of this section where a public sector authority hold an interest in a dwelling a disposal of the interest by or under an enactment shall be treated as a disposal by the authority.

Construction of references to disposal, &c.

532

(1) References in this Part to a disposal include a part disposal; but for the purposes of this Part a disposal of an interest in a dwelling is a disposal of a relevent interest in the dwelling only if on the disposal the person to whom it is made acquires a relevant interest in the dwelling.

(2) Where an interest in land is disposed of under a contract, the time at which the disposal is made is, for the purposes of this Part—

(a) if the contract is unconditional, the time at which the contract is made, and

(b) if the contract is conditional (and in particular if it is conditional on the exercise of an option), the time when the condition is satisfied;

and not, if different, the time at which the interest is conveyed.

(3) Reference in this Part to a disposal of an interest for value are to a disposal for money or money’s worth, whether or not representing full value for the interest disposed of.

(4) In relation to a person holding an interest in a dwelling formed by the conversion of another dwelling, references in this Part to a previous diposal of an interest in the dwelling include a previous disposal on which an interest in land which included that part of the original dwelling in which his interest subsists was acquired.

Exceptions to eligibility.

533

(1) A person who holds a relevant interest in a defective dwelling is not eligible for assistance in respect of the dwelling at any time when that interest is subject to the rights of a person who is a protected occupier or statutory tenant within the meaning of the Rent (Agriculture) Act 1976 or who occupies the dwelling under an assured agricultural occupancy which is not an assured tenancy.

(2) A person is not eligible for assistance in respect of a defective dwelling if the local housing authority are of the opinion—

(a) that work to the building which consists of or includes the dwelling has been carried out in order to deal with the qualifying defect, and

(b) that on the completion of the work, no further work relating to the dwelling was required to be done to the building in order to deal satisfactorily with the qualifying defect.

Determination of entitlement

Application for assistance.

534

A person seeking assistance under this Part in respect of a defective dwelling shall make a written application to the local housing authority within a period specified in the relevant designation.

Application not to be entertained where grant application pending or approved.

535

(1) The local housing authority shall not entertain an application for assistance under this Part if—

(a) an application has been made in respect of the defective dwelling (whether before or after the relevant designation came into operation) for renovation grant or common parts grant under Chapter I of Part I of the Housing Grants, Construction and Regeneration Act 1996 (grants for renewal of private sector housing)., and

(b) the relevant works in relation to that grant include the whole or part of the work required to reinstate the dwelling,

unless the grant application has been refused or has been withdrawn under subsection (2) or the relevant works have been completed.

(2) Where a person has applied for such a grant in respect of a dwelling and—

(a) the dwelling is a defective dwelling, and

(b) the relevant works include the whole or part of the work required to reinstate it,

he may withdraw his application, whether or not it has been approved, if the relevant works have not been begun.

(3) In this section “relevant works”, in relation to a grant, has the same meaning as in Part XV.

Determination of eligibility.

536

(1) A local housing authority receiving an application for assistance under this Part shall as soon as reasonably practicable give notice in writing to the applicant stating whether in their opinion he is eligible for assistance in respect of the defective dwelling.

(2) If they are of opinion that he is not so eligible, the notice shall state the reasons for their view.

(3) If they are of opinion that he is so eligible, the notice shall inform him of his right to make such a claim as is mentioned in section 537(2) (claim that assistance by way of reinstatement grant is appropriate in his case).

Determination of form of assistance to which applicant is entitled.

537

(1) A local housing authority receiving an application for assistance under this Part shall, if the applicant is eligible for assistance, determine as soon as reasonably practicable whether he is entitled to assistance by way of reinstatement grant or by way of repurchase.

(2) If the authority are satisfied, on a claim by the applicant to that effect, that it would be unreasonable to expect him to secure or await the carrying out of the work required to reinstate the defective dwelling, the applicant is entitled to assistance by way of repurchase.

(3) Subject to subsection (2), the applicant is entitled to assistance by way of reinstatement grant if the authority are satisfied that the conditions for such assistance set out in section 538 are met, and otherwise to assistance by way of repurchase.

Conditions for assistance by way of reinstatement grant.

538

(1) The conditions for assistance by way of reinstatement grant are, subject to any order under subsection (2)—

(a) that the dwelling is a house (as defined in section 575);

(b) that if the work required to reinstate the dwelling (together with any other work which the local housing authority are satisfied the applicant proposes to carry out) were carried out—

(i) the dwelling would be likely to provide satisfactory housing accommodation for a period of at least 30 years, and

(ii) an individual acquiring the freehold of the dwelling with vacant possession would be likely to be able to arrange a mortgage on satisfactory terms with a lending institution;

(c) that giving assistance by way of reinstatement grant is justified having regard, on the one hand, to the amount of reinstatement grant that would be payable in respect of the dwelling and, on the other hand, to the likely value of the freehold of the dwelling with vacant possession after the work required to reinstate it has been carried out; and

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The Secretary of State may by order amend the conditions set out in subsection (1) so as to modify or omit any of the conditions or to add or substitute for any of the conditions other conditions.

(3) An order—

(a) may make different provision for different classes of case,

(b) shall be made by statutory instrument, and

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

(4) An order does not affect an application for assistance made before the order comes into force.

Meaning of “work required for reinstatment” and “associated arrangement”.

539

(1) For the purposes of this Part the work required to reinstate a defective dwelling is the work relating to the dwelling that is required to be done to the building that consists of or includes the dwelling in order to deal satisfactorily with the qualifying defect, together with any further work—

(a) required to be done, in order to deal satisfactorily with the qualifying defect, to any garage or outhouse designed or constructed as that building is designed or constructed, being a garage or outhouse in which the interest of the person eligible for assistance subsists and which is occupied with and used for the purposes of the dwelling or any part of it, or

(b) reasonably required in connection with other work falling within this subsection.

(1A) In any case where—

(a) the most satisfactory way of dealing with the qualifying defect is substantially to demolish the building that consists of or includes the defective dwelling or a part of that building, and

(b) it is practicable to rebuild the building or part concerned on, or substantially on, its existing foundations and reconstruct the dwelling to the same, or substantially the same, plan,

the work required to carry out those operations shall be regarded for the purposes of this Part as work required to reinstate the defective dwelling.

(2) In this Part “associated arrangement” means an arrangement which is entered into in connection with the execution of the work required to reinstate a defective dwelling and is likely to contribute towards the dwelling being regarded as an acceptable security by a lending institution.

Notice of determination.

540

(1) Where an applicant is eligible for assistance, the authority to whom the application was made shall as soon as reasonably practicable give him notice in writing (a “notice of determination”) stating the form of assistance to which he is entitled.

(2) If, on such a claim by the applicant as is mentioned in section 537(2) (claim that assistance by way of reinstatement grant is inappropriate in his case), the authority are not satisfied that it would be unreasonable to expect him to secure or await the carrying out of the work required to reinstate the defective dwelling, the notice shall state the reasons for their view.

(3) A notice stating that the applicant is entitled to assistance by way of reinstatement grant shall also state—

(a) the grounds for the authority’s determination;

(b) the work which, in their opinion, is required to reinstate the defective dwelling;

(d) the amount of expenditure which, in their opinion, may properly be incurred in entering into an associated arrangement;

(e) the condition required by section 542 (execution of work to satisfaction of authority within specifed period), including the period within which the work is to be carried out; and

(f) their estimate of the amount of grant payable in respect of the dwelling in pursuance of this Part.

(4) A notice stating that the applicant is entitled to assistance by way of repurchase shall also state the grounds for the authority’s determination and the effect of—

(a) paragraphs 1 to 3 of Schedule 20 (request for notice of proposed terms of repurchase), and

(b) sections 554, 556 and 557(1) (provisions for grant of tenancy to former owner-occupier of repurchased dwelling).

(5) References in the following provisions of this Part to a person entitled to assistance by way of reinstatement grant or, as the case may be, by way of repurchase are to a person who is eligible for assistance in respect of the dwelling and on whom a notice of determination has been served stating that he is entitled to that form of assistance.

Assistance by way of reinstatement grant

Reinstatement grant.

541

(1) Where a person is entitled to assistance by way of reinstatement grant, the local housing authority shall pay reinstatement grant to him in respect of—

(a) the qualifying work, and

(b) any associated arrangement,

subject to and in accordance with the following provisions of this Part.

(2) The “qualifying work” means the work stated in the notice of determination, or in a notice under section 544 (notice of change of work required), to be the work which in the opinion of the local housing authority is required to reinstate the dwelling.

Conditions of payment of reinstatement grant.

542

(1) It is a condition of payment of reinstatement grant that the qualifying work is carried out—

(a) to the satisfaction of the local housing authority, and

(b) within the period specified in the notice of determination. or that period as extended.

(2) The period so specified shall be such reasonable period (of at least twelve months), beginning with service of the notice, as the authority may determine.

(3) The authority shall, if there are reasonable grounds for doing so, by notice in writing served on the person entitled to assistance, extend or further extend the period for carrying out the qualifying work (whether or not the period has expired).

(4) Payment of reinstatement grant shall not be subject to any other condition, however expressed.

Amount of reinstatement grant.

543

(1) The amount of reinstatement grant payable is the appropriate percentage of whichever is the least of—

(a) the amount stated in the notice of determination, or in a notice under section 544 (notice of change in work required or expenditure permitted), to be the amount of expenditure which, in the opinion of the local housing authority, may properly be incurred in executing the qualifying work and entering into any associated arrangement,

(b) the expenditure actually incurred in executing the qualifying work and entering into any associated arrangement, and

(2) The appropriate percentage is 90 per cent, or, in a case where the authority are satisfied that the person entitled to assistance would suffer financial hardship unless a higher percentage of the expenditure referred to in subsection (1) were paid to him, 100 per cent.

(3) The Secretary of State may by order vary either or both of the percentages mentioned in subsection (2).

(4) The maximum amount of expenditure permitted to be taken into account for the purposes of this section is the amount specified as the expenditure limit by order made by the Secretary of State, except in a case or description of case in which the Secretary of State, on the application of a local housing authority, approves a higher amount.

(5) An order under subsection (4) may make different provision for different areas, different designated classes and different categories of dwelling.

(6) An order under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.

Changes in work or expenditure.

544

Where the local housing authority are satisfied that—

(a) the work required to reinstate the defective dwelling is more extensive than that stated in the notice of determination or in a previous notice under this section, or

(b) the amount of the expenditure which may properly be incurred in executing that work is greater than that so stated, or

(c) there is an amount of expenditure which may properly be incurred in entering into an associated arrangement but no such amount is stated in the notice of determination or a previous notice under this section, or

(d) where such an amount is so stated, the amount of expenditure which may be properly so incurred is greater than that amount,

they shall by notice in writing served on the person entitled to assistance state their opinion as to that amount or, as the case may be, that work and that amount; and the amount of reinstatement grant shall be adjusted accordingly.

Payment of reinstatement grant.

545

(1) The local housing authority may pay reinstatement grant in respect of the qualifying work in a single sum on completion of the work or by instalments.

(2) No instalments shall be paid if the instalment, together with any amount previously paid, would exceed the appropriate percentage of the cost of so much of the qualifying work as has been executed at that time.

(3) The authority shall pay reinstatement grant in respect of an associated arrangement when payment in respect of the expenditure incurred in entering into the arrangement falls to be made.

Repayment of grant for breach of condition.

546

(1) Where an amount of reinstatement grant has been paid in one or more instalments and the qualifying work is not completed within the period for carrying out the work, the local housing authority may, if they think fit, require the person who was entitled to assistance to repay that amount to them forthwith.

(2) The amount required to be repaid (or, if it was paid in more than one instalment, the amount of each instalment) shall carry interest, at such reasonable rate as the authority may determine, from the date on which it was paid until repayment.

Assistance by way of repurchase

Repurchase.

547

The provisions of Schedule 20 have effect with respect to assistance by way of repurchase, as follows—

Part I—The agreement to repurchase.

Part II—Price payable and valuation.

Part III—Supplementary provisions.

Repurchase by authority other than local housing authority.

548

(1) Where the local housing authority give a notice of determination to a person stating that he is entitled to assistance by way of repurchase and they are of opinion that—

(a) a relevant interest in the dwelling was disposed of by a public sector authority mentioned in column 1 of the following Table (or a predecessor mentioned there of such an authority),

(b) there has been no disposal within paragraph (a) since the time of that disposal, and

they shall forthwith give that other authority a notice in writing, together with a copy of the notice of determination, stating that the authority may acquire in accordance with this Part, the interest of the person entitled to assistance.

Public sector authority	Conditions
A1. A non-profit registered provider of social housing (other than a co-operative housing association) or a predecessor housing association of that provider.	None
1. A registered social landlord (other than a co-operative housing association) or a predecessor housing association of that registered social landlord.	None.
2. A development corporation.	No interests have at any time been transferred from the corporation in pursuance of a scheme made or having effect as if made under section 42 of the New Towns Act 1981 (transfer o housing to district council).
3. . . .	. . .
Another local housing authority or a predecessor of that authority.	The local housing authority provide housing accommodation in the vicinity of the defective dwelling with which the dwelling may conveniently be managed.
5. Any other public sector authority prescibed by order of the Secretary of State, or a predecessor so prescribed.	Any conditions prescribed in the order.

(2) The other authority may, within the period of four weks beginning with the service of the notice on them, give notice in writing to the local housing authority—

(a) stating that they wish to acquire the interest, and

(b) specifying the address of the principal office of the authority and any other address which may also be used as an address for service;

and the local housing authority shall forthwith give to the person entitled to assistance a transfer notice, that is, a notice in writing of the contents of the notice received by them and the effect of subsection (3).

(3) After a transfer notice has been given to the person entitled to assistance, the other authority shall be treated as the appropriate authority for the purposes of anything done or falling to be done under this Part, except that—

(a) a request under paragraph 2 of Schedule 20 (request for notice of proposed terms of acquisition) may be made either to the local housing authority or to the other authority, and

(b) any such request given to the local housing authority (whether before or after the notice) shall be forwarded by them to the other authority;

and references in this Part to “the purchasing authority” shall be construed accordingly.

(4) An order under this section shall be made by statutory instrument.

Interest subject to right of pre-emption &c.

549

(1) This section applies where a person (“the owner”) is entitled to assistance by way of repurchase in respect of a defective dwelling and there is a covenant relating to his interest in the dwelling whereby—

(a) before disposing of the interest he must offer to dispose of it to a public sector authority, or

(b) in the case of a leasehold interest, he may require a public sector authority who are his landlord to accept a surrender of the lease but is otherwise prohibited from disposing of it,

(2) If the public sector authority are the local housing authority, the covenant shall be disregarded for the purposes of Schedule 20 (repurchase).

(3) If the public sector authority are not the local housing authority, the provisions of this Part as to repurchase do not apply so long as there is such a covenant; but if—

(a) the owner disposes of his interest to the public sector authority in pursuance of the covenant or lease, and

(b) the interest acquired by that authority on the disposal subsists only in the land affected, that is to say, the defective dwelling and any garage, outhouse, garden, yard and appurtenances occupied with and used for the purposes of the dwelling or part of it,

the owner is entitled to be paid by the local housing authority the amount (if any) by which 95 per cent. of the defect-free value exceeds the considaeration for the disposal.

(4) For the purposes of this section—

(a) the “consideration for the disposal” means the amount before any reduction required by section 158(3) (reduction corresponding to amount of discount repayable or amount payable for outstanding share under shared ownership lease) or any provision to the like effect, and

(b) the “defect-free value” means the amount that would have been the consideration for the disposal if none of the defective dwellings to which the designation in question related had been affected by the qualifying defect.

Compulsory purchase compensation to be made up to 95 per cent of defect-free value.

550

(1) Where a person (“the owner”) has disposed of an interest in a defective dwelling, otherwise than in pursuance of Schedule 20 (repurchase), to an authority possessing compulsory purchase powers and—

(a) immediately before the time of the disposal he was eligible for assistance under this Part in respect of the dwelling,

(b) the amount paid as consideration for the disposal did not include any amount attributable to his right to apply for such assistance, and

(c) on the disposal the authority acquired an interest in any of the affected land, that is to say, the defective dwelling and any garage, outhouse, garden, yard and appurtenances occupied with and used for the purposes of the dwelling or part of it,

he is entitled, subject to the following provisions of this section, to be paid by the local housing authority the amount (if any) by which 95 per cent. of the defect-free value exceeds the amount of the compensation for the disposal.

(2) For the purposes of this section—

(a) the “amount of compensation for the disposal” means the amount that would have been the proper amount of compensation for the disposal (having regard to any relevant determination of the Upper Tribunal) or, if greater, the amount paid as the consideration for the disposal, and

(b) the “defect-free value” means the amount that would have been the proper amount of compensation for the disposal if none of the defective dwellings to which the designation in question related had been affected by the qualifying defect;

but excluding, in either case any amount payable for disturbance or for any other matter not directly based on the value of land.

(3) For the purposes of this section, it shall be assumed that the disposal occurred on a compulsory acquisition (in cases where it did not in fact do so).

(4) Where the compensation for the disposal fell to be assessed by reference to the value of the land as a site cleared of buildings and available for development, it shall be assumed for the purposes of determining the defect-free value that it did not fall to be so assessed.

(5) The amount payable by the local housing authority under this section shall be reduced by the amount of any payment made in respect of the defective dwelling under Schedule 23 (payments for well-maintained houses).

(6) In this section “authority possessing compulsory purchase powers” has the same meaning as a in the Land Compensation Act 1961.

Supplementary provisions as to payments under s. 549 or 550.

551

(1) The local housing authority are not required to make a payment to a person under—

(a) section 549 (making-up of consideration on disposal in pursuance of right of pre-emption, &c.), or

(b) section 550 (making-up of compulsory purchase compensation),

unless he makes a written application to them for payment before the end of the period of two years beginning with the time of the disposal.

(2) Where the authority—

(a) refuse an application for payment under section 549 on any grounds, or

(b) refuse an application for payment under section 550 on the grounds that the owner was not eligible for assistance in respect of the defective dwelling,

they shall give the applicant written notice of the reasons for their decision.

(3) Any question arising—

(a) under section 549 or 550 as to the defect-free value, or

(b) under section 550 as to the amount of compensation for the disposal,

shall be determined by the district valuer if the owner or the local housing authority so require by notice in writing served on the district valuer.

(4) A person serving a notice on the district valuer in pursuance of subsection (3) shall serve notice in writing of that fact on the other party.

(5) Before making a determination in pursuance of subsection (3), the district valuer shall consider any representation by the owner or the authority made to him within four weeks from the service of the notice under that subsection.

Reimbursement of expenses incidental to repurchase.

552

(1) A person whose interest in a defective dwelling is acquired by the purchasing authority in pursuance of Schedule 20 (repurchase) is entitled to be reimbursed by the purchasing authority the proper amount of—

(a) expenses in respect of legal services provided in connection with the authority’s acquisition, and

(b) other expenses in connection with negotiating the terms of that acquisition,

being in each case expenses which are reasonably incurred by him after receipt of a notice under paragraph 3 of that Schedule (authority’s notice of proposed terms of acquisition).

(2) An agreement between a person and the purchasing authority is void in so far as it purports to oblige him to bear any part of the costs or expenses incurred by the authority in connection with the exercise by him of his rights under this Part.

Effect of repurchase on occupier

Effect of repurchase on certain existing tenancies.

553

(1) Where an authority mentioned in section 80 (authorities satisfying the landlord condition for secure tenancy) acquire an interest in a defective dwelling in England in pursuance of Schedule 20 (repurchase) and—

(a) the land in which the interest subsists is or includes a dwelling-house occupied as a separate dwelling, and

(b) the interest of the person entitled to assistance by way of repurchase is, immediately before the completion of the authority’s acquisition, subject to a tenancy of the dwelling-house,

the tenancy shall not, on or after the acquisition, become a secure tenancy unless the conditions specified in subsection (2) are met.

(2) The conditions are—

(a) that the tenancy was a protected tenancy or an assured tenancy throughout the period beginning with the making of an application for assistance under this Part in respect of the defective dwelling and ending immediately before the authority’s acquisition; and

(b) no notice was given in respect of the tenancy in accordance with any of Cases 11 to 18 and 20 in Schedule 15 to the Rent Act 1977 (notice that possession might be recovered under that Case) or under section 52(1)(b) of the Housing Act 1980 (notice that tenancy is to be a protected shorthold tenancy) or in accordance with any of Grounds 1, 3, 4 and 5 in Schedule 2 to the Housing Act 1988 (notice that possession might be recovered under that ground) . . .; and.

Grant of tenancy to former owner-occupier.

554

(1) Where an authority acquire an interest in a defective dwelling in pursuance of Schedule 20 (repurchase), or in the circumstances described in section 549(3) (exercise of right of pre-emption &c.), and—

(a) the land in which the interest subsists is or includes a dwelling-house occupied as a separate dwelling, and

(b) an individual is an occupier of the dwelling-house throughout the period beginning with the making of an application for assistance under this Part in respect of the dwelling and ending immediately before the completion of the authority’s acquisition, and

(c) he is a person entitled to assistance by way of repurchase in respect of the defective dwelling, or the persons so entitled are in relation to the interest concerned his trustees,

the authority shall, in accordance with this section, either grant or arrange for him to be granted a tenancy (of that dwelling-house or another: see section 556) on the completion of their acquisition of the interest concerned.

(2) If the authority are among those mentioned in section 80(1) (public sector authorities capable of granting secure tenancies) their obligation is to grant a secure tenancy or secure contract.

(2A) If the authority is the new towns residuary body or a private registered provider of social housing or registered social landlord, other than a housing co-operative, within the meaning of section 27B, their obligation is to grant a secure tenancy or, where the dwelling-house is in Wales, a secure contract if the individual to whom a tenancy is to be granted—

(a) is a person who, immediately before he acquired his interest in the dwelling-house, was a secure tenant or a secure contract-holder of it; or

(b) is the spouse or civil partner, or a former spouse or former civil partner, or the surviving spouse or surviving civil partner, of a person falling within paragraph (a); or

(c) is a member of the family, within the meaning of section 186, of a person falling within paragraph (a) who has died, and was residing with that person in the dwelling-house at the time of and for the period of twelve months before his death

(3) In any other case their obligation is to grant or arrange for the grant of either—

(a) a secure tenancy, or

(b) a protected tenancy other than one under which the landlord might recover possession under one of the cases in Part II of Schedule 15 to the Rent Act 1977 (cases in which the court must order possession) or

(c) 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 on any of Grounds 1 to 5 in Schedule 2 to that Act, or

(d) a secure contract.

(4) Where two or more persons qualify for the grant of a tenancy under this section in respect of the same dwelling-house, the authority shall grant the tenancy, or arrange for it to be granted, to such one or more of them as they may agree among themselves or (if there is no such agreement) to all of them.

Grant of tenancy to former statutory tenant.

555

(1) Where an authority mentioned in section 80(1) (public sector authorities capable of granting secure tenancies) acquire an interest in a defective dwelling in pursuance of Schedule 20 (repurchase) and—

(a) the land in which the interest subsists is or includes a dwelling-house occupied as a separate dwelling, and

(b) an individual is an occupier of a dwelling-house throughout the period beginning with the making of an application for assistance under this Part in respect of the dwelling and ending immediately before the completion of the authority’s acquisition, and

(d) no notice was given in respect of the original tenancy in accordance with any of Cases 11 to 18 and 20 in Schedule 15 to the Rent Act 1977 (notice that possession might be recovered under that Case) or under section 52(1)(b) of the Housing Act 1980 (notice that tenancy is to be a protected shorthold tenancy), and

(e) the interest of the person entitled to assistance would, if the statutory tenancy were a contractual tenancy, be subject to the tenancy at the end of the period mentioned in paragraph (b),

the authority shall grant him a secure tenancy or, where the dwelling-house is in Wales, a secure contract (of that dwelling-house or another: see section 556) on the completion of their acquisition of the interest concerned.

(2) Where two or more persons qualify for the grant of a tenancy under this section in respect of the same dwelling-house, the authority shall grant the tenancy to such one or more of them as they may agree among themselves or (if there is no such agreement) to all of them.

(3) If at any time after the service of a notice of determination it appears to the purchasing authority that a person may be entitled to request them to grant him a secure tenancy or secure contract under this section, they shall forthwith give him notice in writing of that fact.

(4) This section has effect notwithstanding any provision to the contrary in section 11 of the Renting Homes (Wales) Act 2016 (anaw 1).

Alternative accommodation under s. 554 or 555,.

556

(1) The dwelling-house to be let under the tenancy granted to a person—

(a) under section 554 or 555 (grant of tenancy to former owner-occupier or statutory tenant of defective dwelling-house acquired by authority), or

(b) under arrangements made for the purposes of section 554,

shall be the dwelling-house of which he is the occupier immediately before the completion of the authority’s acquisition (the “current dwelling-house”), except in the following Cases.

Case 1

By reason of the condition of any building of which the current dwelling-house consists or of which it forms part, the dwelling-house may not safely be occupied for residential purposes.

Case 2

(2) In those Cases the dwelling-house to be let shall be another dwelling-house which, so far as is reasonably practicable in the case of that authority, affords accommodation which is—

(a) similar as regards extent and character to the accommodation afforded by the current dwelling-house,

(b) reasonably suitable to the means of the prospective tenant and his family, and

(c) reasonably suitable to the needs of the prospective tenant and his family as regards proximity to place of work and place of education.

Request for tenancy under s. 554 or 555.

557

(1) An authority are not required to grant, or arrange for the grant of, a tenancy to a person under section 554 or 555 unless he requests them to do so in writing before—

(a) in the case of an acquisition under Schedule 20 (repurchase,), the service on the person entitled to assistance of a copy of the agreement drawn up under paragraph 5 of that Schedule, or

(b) in the case of an acquisition in the circumstances described in section 549(3) (acquisition in pursuance of right of pre-emption, &c.), the time of the disposal.

(2) An authority receiving a request under subsection (1) shall, as soon as reasonably practicable, give notice in writing to the person making the request stating whether in their opinion either of the Cases in section 556(1) applies (cases in which tenancy may be of a dwelling-house other than the current dwelling-house).

(3) If their opinion is that either Case does apply, the notice shall also state which of the Cases is applicable and the effect of section 556.

Interpretation of ss. 553 to 557.

558

(1) In sections 553 to 557 (effect of repurchase on occupier)—

(a) “dwelling-house” has the same meaning as in Part IV (secure tenancies);

(b) “occupier”, in relation to a dwelling-house, means a person who occupies the dwelling-house as his only or principal home or (in the case of a statutory tenant) as his residence;

(c) references to the grant of a secure tenancy are to the grant of a tenancy which would be a secure tenancy assuming that the tenant under the tenancy occupies the dwelling-house as his only or principal home

(d) references to the grant of a secure contract are to the grant of an occupation contract which would be a secure contract (within the meaning given by section 8 of the Renting Homes (Wales) Act 2016 (anaw 1)) assuming that the contract-holder under the contract occupies the dwelling as their only or principal home;

(e) the following terms have the same meaning as in the Renting Homes (Wales) Act 2016—

(i) “contract-holder” (see section 7 (see also section 48) of that Act);

(ii) “occupation contract” (see section 7 of that Act).

Local schemes

Designation of defective dwellings under local schemes.

559

(1) A local housing authority may by resolution designate as a class buildings in their district each of which consists of or includes one or more dwellings if it appears to them that—

(a) buildings in the proposed class are defective by reason of their design or construction, and

(b) by virtue of the circumstances mentioned in paragraph (a) having become generally known, the value of some or all of the dwellings concerned has been substantially reduced.

(2) Subsection (1) does not apply to a building in a class designated under section 528 (designation by Secretary of State); but a building does not cease to be included in a class designated under this section by virtue of its inclusion in a class designated under that section.

(3) A dwelling which is, or is included in, a building in a class so designated is referred to in this Part as a “defective dwelling”; and in this Part, in relation to such a dwelling—

(a) “The qualifying defect” means what, in the opinion of the authority, is wrong with the buildings in that class, and

(b) “the cut-off date” means the date by which, in the opinion of the authority, the circumstances mentioned in subsection (1)(a) became generally known.

(4) A designation shall describe the qualifying defect and specify—

(a) the cut-off date,

(b) the date (being a date falling on or after the cut-off date) on which the designation is to come into operation, and

(5) A designation may not describe a designated class by reference to the area (other than the authority’s district) in which the buildings concerned are situated; but a designated class may be so described that within the authority’s district there is only one building in the class.

(6) Any question arising as to whether a building is or was at any time in a class designated under this section shall be determined by the local housing authority concerned.

Variation or revocation of designation under local scheme.

560

(1) The local housing authority may by resolution—

(a) vary a designation under section 559, but not so as to vary the cut-off date, or

(b) revoke such a designation.

(2) The authority may by a variation of the designation extend the period referred to in section 559(4)(c) (period within which assistance must be applied for) whether or not it has expired.

(3) The variation of revocation of a designation does not affect the operation of the provisions of this Part in relation to a dwelling if, before the variation or revocation comes into operation, the dwelling is a defective dwelling by virtue of the designation in question and application for assistance under this Part has been made.

Secretary of State’s control over designation, variation or revocation.

561

(1) Where a local housing authority have passed a resolution under—

(a) section 559 (designation under local scheme) or,

(b) section 560 (variation or revocation of designation under local scheme),

they shall give written notice to the Secretary of State of the resolution before the expiry of the period of 28 days beginning with the date on which it is passed.

(2) The designation, variation or revocation shall not come into operation before the cut-off date or if it is later the expiry of the period of two months or such longer period as the Secretary of State may direct for the purposes of this subsection under subsection (2A) below beginning with the receipt by the Secretary of State of the notice under subsection (1).

(2A) If, within the period for the time being specified in or (by virtue of the previous operation of this subsection) for the purposes of subsection (2) above, the Secretary of State is satisfied that he does not have reasonably sufficient information to enable him to come to a decision with respect to the resolution concerned, he may direct for the purposes of that subsection that it shall have effect as if for the period so specified there were substituted such longer period as is specified in the direction.

(3) If before the cut-off date or, if it is later, the expiry of the period for the time being specified in or for the purposes of subsection (2) above the Secretary of State serves notice in writing to that effect on the authority, the designation, revocation or variation shall not come into operation.

Miscellaneous

Duty of local housing authority to publicise availability of assistance.

562

(1) A local housing authority shall, within the period of three months beginning with the coming into operation of—

(a) a designation under section 528 (designation of defective dwellings by Secretary of State) or section 559 (designation of defective dwellings under local scheme), or,

(b) a variation of such a designation,

publish in a newspaper circulating in their district notice suitable for the purpose of bringing the effect of the designation or variation to the attention of persons who may be eligible for assistance in respect of such of the dwellings concerned as are situated within their district.

(2) No such notice need be published by a local housing authority who are of opinion—

(a) that none of the dwellings concerned are situated in their district, or

(b) that no-one is likely to be eligible for assistance in respect of the dwellings concerned which are situated in their district.

(3) If at any time it becomes apparent to a local housing authority that a person is likely to be eligible for assistance in respect of a defective dwelling within their district, they shall forthwith take such steps as are reasonably practicable to inform him of the fact that assistance is available.

Duties of public sector authority disposing of defective dwelling.

563

(1) A public sector authority shall, where a person is to acquire a relevant interest in a defective dwelling on a disposal by the authority, give him notice in writing before the time of the disposal—

(a) specifying the qualifying defect, and

(b) stating that he will not be eligible for assistance under this part in respect of the dwelling.

(2) A public sector authority shall, before they convey a relevant interest in a defective dwelling in pursuance of a contract to a person on whom a notice under subsection (1) has not been served, give him notice in writing—

(a) specifying the qualifying defect,

(b) stating, where the time of disposal of the interest falls after the cut-off date, that he will not be eligible for assistance under this Part, and

(3) A person on whom a notice under subsection (2) is served—

(a) is not obliged to complete the conveyance before the expiry of the period of six months beginning with the service of that notice on him, and

(b) may within that period withdraw from the transaction by notice in writing to the authority to that effect;

and upon such a notice of withdrawal being given to the authority the parties to the contract are discharged from any obligations in connection with it and any deposit paid shall be repaid.

(4) Where a public sector authority are required to serve a notice under section 124 (landlord’s response to notice claiming to exercise right to buy) in respect of a defective dwelling, the notice under subsection (1) shall be served with that notice.

(5) A notice under subsection (1) or (2) shall, (except in the case of a notice under subsection (1) which is served in accordance with subsection (4)), be served at the earliest date at which it is reasonably practicable to do so.

Reinstatement of defective dwelling by local housing authority.

564

(1) Where a relevant interest in a defective dwelling has been disposed of by a public sector authority, the local housing authority may, before the end of the period within which a person may seek assistance under this Part in respect of the dwelling, enter into an agreement with—

(a) any person holding an interest in the dwelling, or

(b) any person who is a statutory tenant of it,

to execute at his expense any of the work required to reinstate the dwelling.

(2) For the purposes of this section a disposal by or under an enactment of an interest in a dwelling held by a public sector authority shall be treated as a disposal of the interest by the authority.

Death of person eligible for assistance, &c.

565

(1) Where a person who is eligible for assistance in respect of a defective dwelling—

(a) dies, or

(b) disposes of his interest in the dwelling (otherwise than on a disposal for value) to such a person as is mentioned in section 527(a) (persons qualifying for assistance: individuals, trustees for individuals and personal representatives),

this Part applies as if anything done (or treated by virtue of this subsection as done) by or in relation to the person so eligible had been done by or in relation to his personal representatives or, as the case may be, the person acquiring his interest.

(2) In sections 549 to 551 (subsidiary forms of financial assistance) references to the owner of an interest in a defective dwelling include his personal representatives.

Dwellings included in more than one designation.

566

The provisions of Schedule 21 have effect with respect to dwellings included in more than one designation.

Modifications of this Part in relation to shared ownership leases.

567

(1) If it appears to a local housing authority that the interest of a person eligible for assistance in respect of a defective dwelling in their area is—

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Housing Act 1985

Grant conditions

Conditions as to future occupation: introductory.

499

Condition as to owner-occupation.

500

Condition as to availability for letting.

501

Conditions as to provision of information about occupation.

502

Imposition of further conditions by local housing authority.

503

Further conditions as to letting of dwelling.

504

Duration and enforceability of grant conditions.

505

Repayment of grant for breach of condition.

506

Voluntary repayment of grant.

507

Main grants: supplementary provisions

Standard amenities and maximum eligible amounts.

508

Meaning of “the appropriate percentage”.

509

Statement of reasons for refusing application or giving less than maximum grant.

510

Payment of grants: general.

511

Payment of grants: conditions as to completion of works.

512

Special cases: parsonages, application by charities, &c.

513

Power of local housing authority to carry out works which would attract grant.

514

Grants restricted to applicant and his personal representatives.

515

Contributions by Secretary of State.

516

Power to vary percentages mentioned in s. 516.

517

Meaning of “dwelling for a disabled occupant” and related expressions.

518

Meaning of “reasonable repair”.

519

Members of a person’s family.

520

Grants for thermal insulation

Schemes for grants for thermal insulation.

521

Finance and administration of schemes under s. 521.

522

Miscellaneous

Assistance for provision of separate service pipe for water supply.

523

Contributions under superseded enactments.

524

General supplementary provisions

Minor definitions.

525

Index of defined expressions: Part XV.

526

PART XVI — ASSISTANCE FOR OWNERS OF DEFECTIVE HOUSING

Eligibility for assistance

Eligibility for assistance.

527

Designation of defective dwellings by Secretary of State.

528

Variation or revocation of designation.

529

Meaning of “relevant interest”.

530

Conditions of eligibility: disposal by public sector authority, &c.

531

Construction of references to disposal, &c.

532

Exceptions to eligibility.

533

Determination of entitlement

Application for assistance.