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

(a) refuse an application under section 392 for the revocation of a control order, or

(b) do not within 42 days from the making of such an application or such further period as the applicant may in writing allow, inform him of their decision,

the applicant may appeal to the county court and the county court may revoke the order.

(2) The court shall revoke the control order if—

(a) the appellant has an estate or interest in the house which, apart from the rights conferred on the local housing authority by section 381 (general effect of control order) and the rights of persons occupying any part of the house, would give him the right to possesion of the house,

(b) that estate or interest was, when the control order came into force, subject to a lease for a term of years which has subsequently expired, and

(c) the appellant satisfies the court that he is in a position and intends, if the control order is revoked, to demolish or reconstruct the house or to carry out substantial work of construction on the site of the house;

and if the court is not so satisfied but would be so satisfied if the date of revocation of the control order were a date later than the hearing of the appeal, the court shall, if the appellant so requires, make an order for the revocation of the control order on that later date.

(3) If an appeal is brought under this section, the leave of the court is required for the bringing of another appeal against the same order, whether by the same or a different appellant, within the period of six months beginning with the final determination of the previous appeal.

(4) Further provisions as to certain matters arising on the revocation of a control order on appeal are contained in Part III of Schedule 13.

Cessation of control order.

394

Further provisions as to matters arising on the cessation of a control order are contained in Parts III and IV of Schedule 13—

Part III relates to the cessation of control orders generally, and

Part IV provides for the case where a control order is followed by a compulsory purchase order.

General supplementary provisions

Powers of entry.

395

(1) Where it appears to the local housing authority that survey or examination of any premises is necessary in order to determine whether any powers under this Part should be exercised in respect of the premises, a person authorised by the authority may at any reasonable time, on giving 24 hours’ notice of his intention to the occupier, and to the owner if the owner is known, enter the premises for the purpose of such a survey and examination.

(2) A person authorised by the local housing authority may at any reasonable time, without any such prior notice as is mentioned in subsection (1), enter any premises for the purpose of ascertaining whether an offence has been committed under any of the following provisions of this Part—

section 348G (contravention of or failure to comply with provision of registration scheme),

section 355(2) (failure to comply with requirements of direction limiting number of occupants of house),

section 358(4) (contravention of overcrowding notice),

section 368(3) (use or permitting use of part of house with inadequate means of escape from fire in contravention of undertaking),

section 369(5) (contravention of or failure to comply with regulations prescribing management code),

section 376(1) or (2) (failure to comply with notice requiring execution of works).

(3) An authorisation for the purposes of this section shall be in writing stating the particular purpose or purposes for which the entry is authorised and shall, if so required, be produced for inspection by the occupier or anyone acting on his behalf.

Penalty for obstruction.

396

(1) It is a summary offence intentionally to obstruct an officer of the local housing authority, or any person authorised to enter premises in pursuance of this Part, in the performance of anything which he is by this Part required or authorised to do.

(2) A person committing such an offence is liable on conviction to a fine not exceeding level 4 on the standard scale.

Warrant to authorise entry.

397

(1) Where it is shown to the satisfaction of a justice of the peace, on sworn information in writing, that admission to premises specified in the information is reasonably required by a person employed by, or acting on the instructions of, the local housing authority—

(a) for the purpose of survey and examination to determine whether any powers under this Part should be exercised in respect of the premises, or

(b) for the purpose of ascertaining whether an offence has been committed under any of the provisions of this Part listed in section 395(2),

the justice may by warrant under his hand authorise that person to enter on the premises for those purposes or for such of those purposes as may be specified in the warrant.

(2) The justice shall not grant the warrant unless he is satisfied—

(a) that admission to the premises has been refused and, except where the purpose specified in the information is that mentioned in subsection (1)(b), that admission was sought after not less than 24 hours’ notice of the intended entry had been given to the occupier, or

(b) that application for admission would defeat the purpose of the entry.

(3) The power of entry conferred by the warrant includes power to enter by force, if need be, and may be exercised by the person on whom it is conferred either alone or together with other persons.

(4) If the premises are unoccupied or the occupier is temporarily absent, a person entering under the authority of the warrant shall leave the premises as effectively secured against trespassers as he found them.

(5) The warrant continues in force until the purpose for which the entry is required is satisfied.

Meaning of “lessee”, “owner”, “person, having control” and similar expressions.

398

(1) In this Part the expressions “lessee”, “owner” “person having an estate or interest”, “person having control”, and “person managing” shall be construed as follows.

(2) “Lessee” includes a statutory tenant of the premises, and references to a lease or to a person to whom premises are let shall be construed accordingly.

(3) “Owner”—

(a) means a person (other than a mortgagee not in possession) who is for the time being entitled to dispose of the fee simple of the premises whether in possession or in reversion, and

(b) includes also a person holding or entitled to the rents and profits of the premises under a lease having an unexpired term exceeding three years.

(4) “Person having an estate or interest” includes a statutory tenant of the premises.

(5) “Person having control” means the person who receives the rack-rent of the premises, whether on his own account or as agent or trustee of another person, or who would so receive it if the premises were let at a rack-rent (and for this purpose a “rack-rent” means a rent which is not less than 2/3rds of the full net annual value of the premises).

(6) “Person managing”—

(a) means the person who, being an owner or lessee of the premises—

(i) receives, directly or through an agent or trustee, rents or other payments from persons who are tenants of parts of the premises, or who are lodgers, or

(ii) would so receive those rents or other payments but for having entered into an arrangement (whether in pursuance of a court order or otherwise) with another person who is not an owner or lessee of the premises by virtue of which that other person receives the rents or other payments, and

(b) includes, where those rents or other payments are received through another person as agent or trustee, that other person.

Minor definitions.

399

In this Part—

“dispossessed proprietor”, in relation to a house subject to a control order, means the person by whom the rent or other periodical payments to which the local housing authority become entitled on the coming into force of the order would have been receivable but for the making of the order, and the successors in title of that person;

“final determination”, in relation to an appeal, includes the withdrawal of the appeal, which has the same effect for the purposes of this Part as a decision dismissing the appeal;

“house” includes any yard, garden, outhouses and appurtenances belonging to the house or usually enjoyed with it.

Index of defined expressions: Part XI.

400

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

Part XII

Introductory

Meaning of “common lodging house”.

401

In this Part “common lodging house” means a house (other than a public assistance institution) provided for the purpose of accommodating by night poor persons, not being members of the same family, who resort to it and are allowed to occupy one common room for the purpose of sleeping or eating, and includes, where part only of a house is so used, the part so used.

Regulation of common lodging houses

No person to keep a common lodging house unless registered.

402

No person shall keep a common lodging house, or receive a lodger in a common lodging house, unless he is registered as the keeper of the house under this Part.

Register of common lodging house keepers and their houses.

403

The local housing authority shall keep a register in which shall be entered—

(a) the full names and the place of residence of every person registered as the keeper of a common lodging house;

(b) the situation of every such lodging house;

(d) the full names and places of residence of any persons who are to act as deputies of the keeper of the lodging house.

Provisions with respect to registration.

404

(1) Subject to the following provisions of this section, a local housing authority, on receiving from a person an application in writing—

(a) for registration as a keeper of a common lodging house, or

(b) for the renewal of his registration,

shall register the applicant in respect of the common lodging house named in the application, or renew his registration in respect of it, and issue to him a certificate of registration or renewal

(2) The authority shall not register an applicant until an officer of the authority has inspected the premises named in the application and has made a report on them.

(3) The authority may refuse to register, or renew the registration of, an applicant if they are satisfied that—

(a) he, or a person employed or proposed to be employed by him at the common lodging house, as a deputy or otherwise, is not a fit person, whether by reason of his age or otherwise, to keep or to be employed at a common lodging house; or

(b) the premises are not suitable for use as a common lodging house or are not, as regards sanitation and water supply and in other respects, including means of escape in case of fire, suitably equipped for such use; or

(c) the use of the premises as a common lodging house is likely to occasion inconvenience or annoyance to persons residing in the neighbourhood.

(4) The registration of a person as a keeper of a common lodging house remains in force for such period, not exceeding 13 months, as may be fixed by the authority, but may be renewed by them for a period not exceeding 13 months at any one time.

(5) If a local housing authority refuse to grant or renew registration, they shall, if required by the applicant, give him a statement in writing of the grounds on which his application is refused.

(6) A local housing authority shall at any time, on the application of a person registered as the keeper of a common lodging house—

(a) remove from the register the name of any person entered in it as a deputy of the keeper, or

(b) insert the name of any other person (being a person approved by the authority) whom the keeper proposes to employ as a deputy,

and shall make any consequential alterations in the certificate of registration.

Appeals against refusal of registration.

405

(1) A person aggrieved by the refusal of a local housing authority under section 404 to grant or renew registration may appeal to a magistrates’ court.

(2) The time within which an appeal may be brought is 21 days from the date on which notice of the authority’s refusal was served on the person desiring to appeal; and for the purposes of this subsection the making of the complaint shall be deemed to be the bringing of the appeal.

(3) Where such an appeal lies, the document notifying to the person concerned the decision of the authority in the matter shall state the right of appeal to a magistrates’ court and the time within which such an appeal may be brought.

(4) A person aggrieved by a decision of a magistrates’ court on such an appeal may appeal to the Crown Court.

(5) Where on an appeal under this section a court varies or reverses the authority’s decision, the authority shall make any necessary entry in the register and issue any necessary certificate.

Byelaws as to common lodging houses.

406

A local housing authority may, and if so required by the Secretary of State shall, make byelaws—

(a) for fixing the number of persons who may be received into a common lodging house, and for the separation of the sexes in it;

(b) for promoting cleanliness and ventilation in common lodging houses, and requiring the walls and ceilings of such lodging houses to be limewashed, or treated with some other suitable preparation, at specified intervals;

(d) generally for the well-ordering of such lodging houses.

Management and control of common lodging houses.

407

(1) The keeper of a common lodging house shall, if required by the local housing authority to do so, affix, and keep affixed and undefaced and legible, a notice with the words “Registered Common Lodging-house” in some conspicuous place on the outside of the house.

(2) Either the keeper of the lodging house, or a deputy registered under this Part, shall manage the lodging house and exercise supervision over persons using it, and either the keeper or a deputy so registered shall be at the lodging house continuously between the hours of nine o’clock in the evening and six o’clock in the morning of the following day.

(3) The local housing authority may by notice require the keeper of a common lodging house in which beggars or vagrants are received to report daily to them, or to such persons as they may direct, every lodger who resorted to the house during the preceding day or night.

(4) An authority who require such reports to be made shall supply to the keeper of the lodging house schedules to be filled up by him with the information required and to be transmitted by him in accordance with their notice.

(5) The keeper of a common lodging house, and every other person having the care or taking part in the management of it, shall at all times, if required by an authorised officer of the local housing authority, allow him to have free access to all parts of the house.

Offences.

408

(1) It is a summary offence for a person—

(a) to contravene or fail to comply with any of the provisions of this Part;

(b) being the registered keeper of a common lodging house, to fail to keep the premises suitably equipped for use as such;

(c) to apply to be registered as the keeper of a common lodging house at a time when he is, under section 409, disqualified from being so registered; or

(d) in an application for registration, or for the renewal of his registration, as the keeper of a common lodging house, to make a statement which he knows to be false.

(2) A person committing such an offence is liable on conviction to a fine not exceeding level 2 on the standard scale and, subject to subsection (3), to a further fine not exceeding one-tenth of the amount corresponding to that level for each day on which the offence continues after conviction.

(3) The court by which a person is convicted of the original offence may fix a reasonable period from the date of conviction for compliance by the defendant with any directions given by the court and, where a court has fixed such a period, the daily penalty is not recoverable in respect of any day before the period expires.

Power of court on conviction to cancel registration and to disqualify for re-registration.

409

Where the registered keeper of a common lodging house is convicted of—

(a) an offence under this Part or a byelow made under it, or

(b) an offence under section 39(2) or 49(2) of the Public Health (Control of Disease) Act 1984 (failure to notify case of infectious disease or failure to comply with closing order made on account of notifiable disease),

the court by which he is convicted may cancel his registration as a common lodging house keeper and may order that he be disqualified for such period as the court thinks fit from being again registered as such a keeper.

Enforcement

Duty of local housing authority to enforce this Part.

410

(1) The local housing authority shall carry this Part into execution.

(2) Sections 322 to 326 of the Public Health Act 1936 (default powers of Secretary of State and related provisions) apply in relation to failure by a local housing authority to discharge their functions under this Part.

Powers of entry.

411

(1) An authorised officer of a local housing authority may at any reasonable time, on giving 24 hours’ notice of his intention to the occupier and producing, if so required, some duly authenticated document showing his authority, enter premises for the purpose—

(a) of ascertaining whether there is, or has been, on or in connection with the premises, any contravention of the provisions of this Part or of any byelaw made under it;

(b) of ascertaining whether circumstances exist which would authorise or require the authority to take any action under this Part or any such byelaws;

(c) for the purpose of taking any action authorised or required by this Part or any such byelaws to be taken by the authority; or

(d) generally, for the purpose of the performance by the authority of their functions under this Part or any such byelaws.

(2) If it is shown to the satisfaction of a justice of the peace on sworn information in writing that there is reasonable ground for entry into premises for any of the purposes mentioned in subsection (1) and—

(a) that admission to premises has been refused, or that refusal is apprehended,

(b) that the premises are unoccupied or the occupier is temporarily absent, or

he may, by warrant under his hand, authorise the authority by any authorised officer to enter the premises, by force if need be.

(3) A warrant shall not be issued unless the justice is satisfied either—

(a) that notice of the intention to apply for a warrant has been given to the occupier, or

(b) that the premises are unoccupied, the occupier is temporarily absent, the case is one of urgency, or the giving of such notice would defeat the object of the entry.

(4) An authorised officer entering premises by virtue of this section, or of a warrant issued under this section, may take with him such other persons as may be necessary; and on leaving any unoccupied premises which he has entered by virtue of such a warrant shall leave them as effectually secured against trespassers as he found them.

(5) A warrant granted under this section continues in force until the purpose for which the entry is necessary has been satisfied.

Penalty for obstruction.

412

(1) It is a summary offence for a person intentionally to obstruct a person acting in the execution of this Part or of any byelaw or warrant made or issued under it.

(2) A person committing such an offence is liable on conviction to a fine not exceeding level 3 on the standard scale.

Restriction on right to prosecute.

413

Proceedings in respect of an offence created by or under this Part shall not, without the written consent of the Attorney General, be taken by any person other than a party aggrieved or the local housing authority.

Supplementary provisions

Evidence in legal proceedings.

414

(1) If in proceedings under this Part it is alleged that the inmates of a house or part of a house are members of the same family, the burden of proving that allegation rests on the person by whom it is made.

(2) In proceedings under this Part a document purporting to be a copy of an entry in the register of common lodging houses and purporting to be certified as such by the proper officer of the local housing authority shall be prima facie evidence of the matters recorded in the entry.

(3) The proper officer of the local housing authority shall supply such a certified copy free of charge to any person who applies for it at a reasonable hour.

Power to apply provisions to Crown property.

415

Section 341 of the Public Health Act 1936 (power to apply provisions to Crown property) applies to the provisions of this Part as it applies to provisions of that Act.

Index of defined expressions: Part XII.

416

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

PART XIII — GENERAL FINANCIAL PROVISIONS

Housing accounts of local housing authorities

The Housing Revenue Account.

417

The keeping of the Housing Revenue Account.

418

The provisions of Schedule 14 have effect with respect to the keeping of an authority’s Housing Revenue Account, as follows—

Part I—Credits to the account.

Part II—Debits to the account.

Part III—Supplementary provisions as to matters arising before 1972.

Part IV—Rate fund contributions.

Part V—Other supplementary provisions.

The Housing Repairs Account.

419

(1) A local housing authority who are required to keep a Housing Revenue Account may also keep, in accordance with this section, an account called the “Housing Repairs Account”.

(2) An authority who keep a Housing Repairs Account shall credit to the account—

(a) contributions from their Housing Revenue Account,

(b) sums received by the authority in connection with the repair or maintenance of houses or other property (within the authority’s Housing Revenue Account (either from their tenants or from the sale of scrapped or salvaged materials), and

(3) The authority shall debit to the account—

(a) all expenditure incurred by them in connection with the repair or maintenance of houses or other property within their Housing Revenue Account,

(b) such expenditure incurred by them in connection with the improvement or replacement of houses or other property within their Housing Revenue Account as may from time to time be determined by the Secretary of State, and

and in this subsection “expenditure” includes loan charges.

(4) The authority shall secure that sufficient credits are carried to the account to secure that it never shows a debit balance.

(5) If the authority consider that a credit balance in the account at the end of a year will not be required for the purposes of the account, they may carry some or all of the balance to the credit of their Housing Revenue Account.

(6) If an authority who have opened a Housing Repairs Account cease to maintain the account, any balance shall be carried to their Housing Revenue Account.

(7) A determination of the Secretary of State under subsection (3)(b) may be made to apply to local housing authorities generally or to a particular authority or group of authorities and may make different provision in respect of different cases or descriptions of case.

Directions to secure proper accounting.

420

(1) Where it appears to the Secretary of State, as regards a Housing Revenue Account or Housing Repairs Account—

(a) that amounts in respect of incomings and outgoings provided for in this Part have not been properly credited or debited to the account, or

(b) that amounts in respect of incomings and outgoings not so provided for ought properly to be credited or debited to the account, or

he may give directions for the appropriate credits or debits to be made, or for the rectification of the account, as the case may require.

(2) In the case of incomings and outgoings not provided for in this Part the direction may, instead of directing particular amounts to be credited or debited, direct generally that credits or debits shall be made in respect of incomings and outgoings of a kind specified in the direction.

(3) Without prejudice to the generality of the preceding provisions, the Secretary of State may give such directions (which may be general directions or directions for a particular case) as to the amounts to be credited or debited to a Housing Revenue Account or Housing Repairs Account as in his opinion will ensure that the account reflects a proper system of internal accounting of the authority.

(4) Before giving a direction the Secretary of State shall consult—

(a) such associations of local authorities as appear to him to be concerned, and

(b) any local authority with whom consultation appears to him to be desirable,

except where the authorities who are to comply with the direction are all named in it, in which case the Secretary of State shall consult each of those authorities and need not consult any association of local authorities.

Housing subsidy

Housing subsidy.

421

(1) Housing subsidy is payable for each year to development corporations . . ..

(2) Housing subsidy shall be credited to the corporation's housing account

(3) Housing subsidy shall be paid by the Secretary of State at such times, in such manner and subject to such conditions as to records, certificates, audit or otherwise as he may, with the agreement of the Treasury, determine.

(4) Payment of housing subsidy is subject to the making of a claim for it in such form, and containing such particulars, as the Secretary of State may from time to time determine.

Calculation of housing subsidy for local housing authorities.

422

(1) The amount of the housing subsidy payable to a development corporation for a year (the year of account) shall be calculated from the amounts which, in accordance with sections 423 to 425, are the corporation’s—

(a) base amount (BA),

(b) housing costs differential (HCD), and

for the year, and shall be so calculated by using the formula BA+HCD-LCD.

(2) If the amount so calculated is nil or a negative amount, no housing subsidy is payable to the corporation for that year.

The base amount.

423

(1) A development corporation’s base amount for a year of account is, subject to any adjustment under subsection (2), the amount calculated for the preceding year under section 422, that is to say, the amount of the housing subsidy payable to the corporation for that year or, if none was payable, nil or a negative amount, as the case may be.

(2) If the Secretary of State is of opinion that particular circumstances require it, he may adjust the base amount for amy year by increasing or decreasing it, either generally or in relation to . . . any particular corporation .

The housing costs differential.

424

(1) A development corporation’s housing costs differential for a year of account is the amount by which their reckonable expenditure for that year exceeds their reckonable expenditure for the preceding year (and accordingly is nil or, as the case may be, a negative amount if the reckonable expenditure for the year is the same as or less than that for the preceding year).

(2) A development corporation’s reckonable expenditure for a year is the aggregate of—

(a) so much of the expenditure incurred by the corporation in that year and falling to be debited to the corporation’s housing account as the Secretary of State may determine, and

(b) so much of any other expenditure incurred by the corporation in that year, or treated as so incurred in accordance with a determination made by the Secretary of State, as the Secretary of State may determine to be taken into account for the purposes of housing subsidy.

(3) A determination may be made for all development corporations or different determinations may be made for individual corporations; and a determination may be varied or revoked in relation to all or any of the corporations for which it was made.

(4) Before making a determination for all development corporations the Secretary of State shall consult organisations appearing to him to be representative of development corporations.

The local contribution differential.

425

(1) A development corporation’s local contribution differential for a year of account is the amount by which their reckonable income for that year exceeds their reckonable income for the preceding year (and accordingly is nil or, as the case may be, a negative amount if their reckonable income for the year is the same as or less than that for the preceding year).

(2) A corporation’s reckonable income for a year is the amount which, in accordance with any determination made by the Secretary of State, the corporation are assumed to receive for that year as income which they are required to carry to their housing account including—

(a) any contribution made by the corporation out of their general revenue account, and

(b) any rent rebate subsidy payable under section 140Aof the Social Security Administration Act 1992,

but excluding any other subsidy, grant or contribution.

(3) A determination shall state the assumptions on which it is based and the method of calculation used in it, and in making it the Secretary of State shall have regard, amongst other things, to past and expected movements in incomes, costs and prices.

(4) A determination may be made for all development corporations or different determinations may be made for different corporations or groups of corporations.

(5) Before making a determination for all development corporations the Secretary of State shall consult organisations appearing to him to be representative of development corporations.

(6) A determination shall be made known to the corporations for which it is made in the year preceding the year of account for which it is to have effect.

Calculation of housing subsidy for other authorities.

426

Recoupment of subsidy in certain cases.

427

(1) Where housing subsidy has been paid to a development corporation . . . and it appears to the Secretary of State that—

(a) the purpose for which it was paid has not been fulfilled or not completely or adequately or not without unreasonable delay, and

(b) that the case falls within rules published by him,

he may recover from that corporation the whole or such part of the payment as he may determine in accordance with the rules, with interest from such time and at such rates as he may so determine.

(2) A sum recoverable under this section may, without prejudice to other methods of recovery, be recovered by withholding or reducing housing subsidy.

(3) The withholding or reduction under this section of housing subsidy for a year does not affect the base amount for the following year.

Borrowing powers

Continuance of certain powers to borrow for housing purposes.

428

(1) A local authority may borrow for any of the purposes for which borrowing was, before the commencement of this Act, authorised by—

section 136(1) of the Housing Act 1957,

section 54(1) of the Housing (Financial Provisions) Act 1958, or

paragraph 19 of Schedule 8 to the Housing Act 1969.

(2) The maximum period which may be sanctioned as the period for which money may be borrowed for any of those purposes by the Common Council of the City of London is 80 years, notwithstanding the provisions of any Act of Parliament.

Miscellaneous

The improvement for sale scheme.

429

(1) The Secretary of State may, with the consent of the Treasury, make schemes for making contributions to the net cost (as determined under the schemes) to local housing authorities of disposing of dwellings where the authority—

(a) disposes of a house as one dwelling,

(b) divides a house into two or more separate dwellings and disposes of them, or

after carrying out works of repair, improvement or conversion.

(2) The cost towards which contributions may be made under such a scheme shall not exceed, for any one dwelling—

(a) in respect of a dwelling in Greater London, £10,000.

(b) elsewhere, £7,500,

or such other amount as may be prescribed by order of the Secretary of State made with the consent of the Treasury.

(3) An order under this section—

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

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

(4) In this section “house” includes a flat.

Application of capital money received on disposal of land.

430

— . . .

Control of expenditure by housing authorities on works of conversion or improvement.

431

(1) A local authority or development corporation may not incur expenses in—

(a) providing dwellings by the conversion of houses or other buildings, or

(b) carrying out works required for the improvement of dwellings, with or without associated works of repair,

except in accordance with proposals submitted by the authority or corporation to the Secretary of State and for the time being approved by him.

(2) The Secretary of State’s approval may be given subject to such conditions, and may be varied in such circumstances, as appear to him to be appropriate; but before varying the terms of an approval he shall consult the authority or corporation concerned.

(3) In this section “dwelling” has the same meaning as in Part XV (grants for works of improvement, repair and conversion).

Superseded contributions, subsidies, grants, and other financial matters.

432

The provisions of Schedule 15 have effect with respect to superseded contributions, subsidies, grants and other financial matters, as follows—

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

. . .

Part III—Contributions for improvement of dwellings by housing authorities.

Part IV—Town development subsidy.

Supplementary

Minor definitions.

433

In this Part—

Index of defined expressions: Part XIII.

434

PART XIV — LOANS FOR ACQUISITION OR IMPROVEMENT OF HOUSING

Local authority mortgages

Power of local authorities to advance money.

435

(1) A local authority may advance money to a person for the purpose of—

(a) acquiring a house,

(b) constructing a house,

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

or for the purpose of facilitating the repayment of an amount outstanding on a previous loan made for any of those purposes.

(1A) A local authority which is not a local housing authority may advance money to a person—

(a) for the purpose of altering, enlarging, repairing or improving a house, or

(b) for the purpose of facilitating the repayment of an amount outstanding on a previous loan made for any of those purposes.

(2) The authority may make an advance notwithstanding that it is intended that some part of the premises will be used, or continue to be used, otherwise than as a dwelling if it appears to the authority that the principal effect of making the advance would be to meet the applicant’s housing needs; and in such a case the premises shall be treated as a building to be converted into a house.

(3) The authority may make advances whether or not the houses or buildings are in the authority’s area.

(4) An advance may be made in addition to assistance given by the authority in respect of the same house under any other Act or any other provision of this Act.

Terms of advance.

436

(1) The provisions of this section have effect with respect to the terms of advances under section 435.

(2) The advance, together with the interest on it, shall be secured by a mortgage of the land concerned; and an advance shall not be made unless the estate proposed to be mortgaged is either—

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

(b) an estate for a term of years absolute of which a period of not less that ten years in excess of the period fixed for the repayment of the advance remains unexpired on the date on which the mortgage is executed.

(3) The amount of the principal of the advance shall not exceed the value of the mortgage security or, as the case may be the value which it is estimated the mortgaged security will bear when the construction, conversion, alteration, enlargement, repair or improvement has been carried out; and the advance shall not be made except after a valuation duly made on behalf of the authority.

(4) Where the advance is for any of the purposes specified in section 435(1)(b) and (c) and (1A) (construction, conversion, alteration, enlargement, repair or improvement) it may be made by instalments from time to time as the works progress.

(5) The mortgage deed shall provide—

(a) for repayments of the principal either by instalments of equal or unequal amounts, beginning on the date of the advance or at a later date, or at the end of a fixed period (with or without a provision allowing the authority to extend the period) or on the happening of a specified event before the end of that period, and

(b) for the payment of instalments of interest throughout the period beginning on the date of the advance and ending when the whole of the principal is repaid;

but subject to section 441 (waiver or reduction of payments in case of property requiring repair or improvement) and to section 446(1)(b) (assistance for first time buyers: part of loan interest-free for up to five years).

(6) The mortgage deed shall also provide that, notwithstanding the provisions referred to in subsection (5), the balance for the time being unpaid—

(a) shall become repayable on demand by the authority in the event of any of the conditions subject to which the advance is made not being complied with, and

(b) may, in any event, be repaid on one of the usual quarter-days by the person for the time being entitled to the equity of redemption after one month’s written notice of intention to repay has been given to the authority.

Power of local authority on disposal to leave amount outstanding on mortgage.

437

On the disposal of a house under section 32 (disposal by local authority of land held for purposes of Part II(—

(a) by way of sale, or

(b) by the grant or assignment of a lease at a premium

the local authority may agree to the price or premium, or part of it, and any expenses incurred by the purchaser, being secured by a mortgage of the premises.

Local authority mortgage interest rates.

438

(1) Where after 3rd October 1980 a local authority—

(a) advance money for any of the purposes mentioned in section 435, or

(b) on the disposal of a house allow, or have to allow, a sum to be left outstanding on the security of the house, or

the provision made by them with respect to interest on the sum advanced or remaining outstanding shall comply with the provisions of Schedule 16.

(2) This section does not prevent a local authority from giving assistance in the manner provided by—

section 441 (waiver or reduction of payments in case of property requiring repair or improvement), or

section 446(1)(b) (assistance for first-time buyers: part of loan interest-free for up to five years).

(3) This section does not apply to loans made by local authorities under—

section 228 (duty to make loans for improvements required by improvement notice), or

section 22 of the Housing Act 1996 or section 58 of the Housing Associations Act 1985 (financial assistance for housing associations).

Requirements as to fitness of premises, &c.

439

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

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) An advance shall not be made for the purpose specified in the closing words of subsection (1) of section 435 (repayment of previous loan) or in subsection (1A)(b) of that section (repayment of previous loan for improvements etc), unless the authority satisfy themselves that the primary effect of the advance will be to meet the housing needs of the applicant by enabling him either—

(a) to retain an interest in the house concerned, or

(b) to carry out such works in relation to the building or house concerned as would be eligible for an advance under

(i) subsection (1)(c) of that section (conversion), or

(ii) subsection (1A)(a) of that section (improvements, etc),

as the case may be.

Deposits in respect of maintenance or repair of mortgaged premises.

440

A local authority by whom has been advanced on the mortgage of a house in pursuance of any enactment may accept the deposit by the mortgagor of the sums estimated to be required for the maintenance or repair of the mortgaged premises, and may pay interest on sums so deposited.

Waiver or reduction of payments in case of property requiring repair or improvement.

441

(1) Where a local authority—

(a) advance money for the acquisition of a house which is in need of repair or improvement, or

(b) on the disposal of a house which is in need of repair or improvement allow, or have to allow, a sum to be left outstanding on the security of the house,

they may, if the conditions stated in subsection (2) are satisfied, give assistance in accordance with this section to the person acquiring the house.

(2) The conditions are—

(a) that the assistance is given in accordance with a scheme which either has been approved by the Secretary of State or conforms with such requirements as may be prescribed, and

(b) that the person acquiring the house has entered into an agreement with the local authority to carry out, within a period specified in the agreement, such works of repair or improvement as are so specified.

(3) The assistance shall take the form of making provision—

(a) for waiving or reducing the interest payable on the sum advanced or remaining outstanding, and

(b) for dispensing with the repayment of principal,

for a period ending not later than five years after the date of the advance or, as the case may be, the date of the disposal.

(4) In this section “prescribed” means prescribed by order of the Secretary of State made with the consent of the Treasury.

(5) 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 which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Local authority assistance in connection with mortgages

Agreement by local authority to indemnify mortgagee.

442

(1) A local authority may enter into an agreement with a person or body making an advance on the security of a house (or a building to be converted into a house) whereby, in the event of default by the mortgagor, and in the circumstances and subject to conditions specified in the agreement, the authority binds itself to indemnify the mortgagee in respect of the whole or part of the mortgagor’s outstanding indebtedness and any loss or expense falling on the mortgagee in consequence of the mortgagor’s default.

(1A) The local authority may only enter into the agreement if the advance is for one or more of the purposes specified in subsection (1) or (1A) of section 435; and subsections (2) to (4) of that section apply in relation to power to enter into such an agreement as they apply to the power to make an advance under that section.

(2) The agreement may also, if the mortgagor is made party to it, enable or require the authority in specified circumstances to take a transfer of the mortgage and assume rights and liabilities under it, the mortgagee being then discharged in respect of them.

(3) The transfer may be made to take effect—

(a) on terms provided for by the agreement (including terms involving the substitution of a new mortgage agreement or modification of the existing one), and

(b) so that the authority is treated as acquiring (for and in relation to the purposes of the mortgage) the benefit and burden of all preceding acts, omissions and events.

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

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Local authority contributions to mortgage costs.

443

(1) A local authority may contribute towards costs incurred by a person in connection with a legal charge which secures, or a proposed legal charge which is intended to secure, a relevant advance made or proposed to be made to him by any person or body

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

Recognised bodies and relevant advances for purposes of ss. 442 and 443.

444

The expression “relevant advance” in section 443 (contributions to mortgage costs) means an advance made to a person whose interest in the house (or building to be converted into a house) on the security of which the advance is made is, or was, acquired by virtue of a conveyance of the freehold, or a grant or assignment of a long lease, by a housing authority.

Assistance for first-time buyers

Advances to recognised lending institutions to assist first-time buyers.

445

(1) The Secretary of State may make advances to recognised lending institutions enabling them to provide assistance to first-time purchasers of house property in Great Britain where—

(a) the purchaser intends to make his home in the property,

(b) finance for the purchase of the property (and improvements, if any) is obtained by means of a secured loan from the lending institution, and

(2) In this section “prescribed” means prescribed by order of the Secretary of State.

(3) An order—

(a) may prescribe different limits for properties in different areas, and

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

Forms of assistance and qualifying conditions.

446

(1) Assistance under section 445 (assistence for first-time buyers) may be given in the following ways—

(a) the secured loan may be financed by the Secretary of State to the exent of £600 (that amount being normally additional to that which the institution would otherwise have lent, but not so that the total loan exceeds the loan value of the property);

(b) £600 of the total loan may be made free of interest, and of any obligation to repay principal, for up to five years from the date of purchase; and

(c) the institution may provide the purchaser with a bonus on his savings (which bonus shall be tax-exempt) up to a maximum of £110, payable towards the purchase or expenses arising in connection with it.

(2) The purchaser qualifies for assistance under subsection (1)(a) and (b) (interest-free loan) by satisfying the following conditions with respect to his own savings—

(a) that he has been saving with a recognised savings institution for at least two years preceding the date of his application for assistance,

(b) that throughout the twelve months preceding that date he had at least £300 of such savings, and

and he qualifies for assistance under subsection (1)(c) (bonus on savings) by satisfying the conditions specified in paragraphs (a) and (b) above.

(3) The Secretary of State may allow for the conditions to be relaxed or modified in particular classes of case.

(4) No assistance shall be given in any case unless the amount of the secured loan is at least £1,600 and amounts to not less than 25 per cent. of the purchase price of the property.

(5) The Secretary of State may by order made with the consent of the Treasury—

(a) alter any of the money sums specified in this section;

(b) substitute a longer or shorter period for either or both of the periods mentioned in subsection (2)(a) and (b) (conditions as to savings);

(c) alter the condition in subsection (2)(c) so as to enable the purchaser to satisfy it with lesser amounts of savings and to enable assistance to be given in such a case according to reduced scales specified in the order;

(d) alter the percentage mentioned in subsection (4) (minimum secured loan).

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

Recognised lending institutions.

447

(1) The lending institutions recognised for the purposes of section 445 (assistance for first-time buyers) are—

an authorised deposit taker

an authorised insurer

. . .local authorities,development corporations,the Development Board for Rural Wales,. . .. . .. . .. . . Swansea Building SocietyAbbey Life Home Service Limited.Abbey Life Mortgage Securities Limited.Abbey Life Residential Loans Limited.General Portfolio Finance Limited.Royal London Homebuy Limited.Abbey Life Mortgage Finance Limited,Abbey Life Mortgage Loans Limited,CIS Mortgage Maker LimitedMortgage Express Ltd.Halifax Loans LimitedBNP Mortgages Limited.Sun Life of Canada Home Loans LimitedHalifax Loans (No.2) Limited Halifax Loans (No.3) LimitedHalifax Loans (No.4) Limited.

(2) The Secretary of State may by order made with the consent of the Treasury—

(a) add to the list in subsection (1), or

(b) direct that a named body shall no longer be a recognised lending institution;

but before making an order under paragraph (b) he shall give an opportunity for representations to be made on behalf of the body concerned.

(3) An order shall be made by statutory instrument.

Recognised savings institutions.

448

(1) The savings institutions recognised for the purposes of section 446 (qualifying conditions as to savings) are—

(2) The Secretary of State may by order made with the consent of the Treasury—

(a) add to the list in subsection (1), or

(b) direct that a named body shall no longer be a recognised savings institution;

but before making an order under paragraph (b) he shall give an opportunity for representations to be made on behalf of the body concerned.

(3) An order shall be made by statutory instrument.

Terms of advances and administration.

449

(1) Advances to lending institutions under section 445 (assistance for first-time buyers) shall be on such terms as to repayment and otherwise as may be settled by the Secretary of State, with the consent of the Treasury, after consultation with lending and savings institutions or organisations representative of them; and the terms shall be embodied in directions issued by the Secretary of State.

(2) The following matters, among others, may be dealt with in directions issued by the Secretary of State—

(a) the cases in which assistance is to be provided;

(b) the method of determining the loan value of property for the purpose of section 446(1)(a) (limit on total loan);

(d) the considerations by reference to which a person is or is not to be treated as a first-time purchaser of house property;

(e) the steps which must be taken with a view to satisfying the conditions in section 446(2) (conditions as to purchaser’s own savings), and the circumstances in which those conditions are or are not to be treated as satisfied;

(f) the supporting evidence and declarations which must be furnished by a person applying for assistance, in order to establish his qualification for it, and the means of ensuring that restitution is made in the event of it being obtained by false representations;

(g) the way in which amounts paid over by way of assistance are to be repaid to the lending institutions and to the Secretary of State.

(3) The Secretary of State may, to the extent that he thinks proper for safeguarding the lending institutions, include in the terms an undertaking to indemnify the institutions in respect of loss suffered in cases where assistance has been given.

Modifications of building society law.

450

Miscellaneous

Loans by Public Works Loan Commissioners.

451

(1) The Treasury may lend money for the purpose of constructing or improving houses, or facilitating or encouraging the construction or improvement of houses, to any person entitled to land for an estate in fee simple absolute in possession or for a term of years absolute of which not less than 50 years remains unexpired.

(1A) Any loan made under subsection (1) is a local loan for the purposes of section 3 of the National Loans Act 1968 (see Schedule 4 to that Act).

(2) A loan for any of those purposes, and interest on the loan, shall be secured by a mortgage of—

(a) the land in respect of which the purpose is to be carried out, and

(b) such other land, if any, as may be offered as security for the loan;

and the money lent shall not exceed three-quarters of the value, to be ascertained to the satisfaction of the Treasury, of the estate or interest in the land proposed to be so mortgaged.

(3) Loans may be made by instalments from time to time as the building or other work on land mortgaged under subsection (2) progresses (so, however, that the total amounts lent does not at any time exceed the amount specified in that subsection); and a mortgage may be accordingly made to secure such loans so made.

(4) If the loan exceeds two-thirds of the value referred to in subsection (2), the Treasury shall require, in addition to such a mortgage as is mentioned in that subsection, such further security as they may think fit.

(5) The period for repayment of the loan shall not exceed 40 years, and no money shall be lent on a mortgage of land or houses unless the estate proposed to be mortgaged is either a fee simple absolute in possession or an estate for a term of years absolute of which not less than 50 years are unexpired at the date of the loan.

(6) This section does not apply to housing associations; but corresponding provision is made by section 23 of the Housing Act 1996

Vesting of house in authority entitled to exercise power of sale.

452

(1) Where there has been a disposal of a house by a housing authority and—

(a) the authority is a mortgagee of the house,

(b) the conveyance or grant contains a pre-emption provision in favour of the authority, and

(c) within the period during which the pre-emption provision has effect the authority becomes entitled as mortgagee to exercise the power of sale conferred by section 101 of the Law of Property Act 1925 or the mortgage deed.

the provisions of Schedule 17 apply with respect to the vesting of the house in the authority.

(2) In subsection (1)—

“disposal” means a conveyance of the freehold or a grant or assignment of a long lease;

. . .

“pre-emption provision” means a covenant imposing a condition of the kind mentioned in section 33(2)(b) or (c) (right of pre-emption or prohibition of assignment), the limitation specified in section 157(4) (restriction on disposal of dwellings in National Parks, etc.), or any other provision to the like effect.

(3) The vesting of a house under Schedule 17 shall be treated as a relevant disposal for the purposes of—

(a) the provisions of Parts II and V relating to the covenant required by section 35 or 155 (repayment of discount on early disposal), and

(b) any provision of the conveyance or grant to the like effect as the covenant required by those sections.

(4) Where a conveyance or grant executed before 26th August 1984 contains both—

(a) a pre-emption provision within the meaning of subsection (1), and

(b) the covenant required by section 35 or 155 (repayment of discount on early disposal) or any other provision to the like effect.

the latter covenant or provision has effect as from that date with such modifications as may be necesary to bring it into conformity with the provisions of this section.

(5) The preceding provisions of this section do not apply where the conveyance or grant was executed before 8th August 1980.

(6) Where before 8th August 1980 a local authority sold property under the powers of section 104(1) of the Housing Act 1957 (disposal of houses provided under Part V of that Act) and—

(a) part of the price was secured by a mortgage of the property,

(b) such a condition was imposed on the sale as was mentioned in section 104(3)(c) of that Act, and

(c) within the period during which the authority has the right to re-acquire the property they become entitled to exercise the power of sale conferred by section 101 of the Law of Property Act 1925 or by the mortgage deed,

the provisions of Schedule 17 apply with respect to the vesting of the property in the authority, but subject to the modifications specified in paragraph 4 of that Schedule.

Further advances in case of disposal on shared ownership lease.

453

(1) Where—

(a) a lease of a house, granted otherwise than in pursuance of the provisions of part V (the right to buy) relating to shared ownership leases, contains a provision to the like effect as that required by paragraph 1 of Schedule 8 (terms of shared ownership lease: right of tenant to acquire additional shares), and

(b) a housing authority (other than the Homes and Communities Agencyor the Greater London Authority) has, in the exercise of any of its powers, left outstanding or advanced any amount on the security of the house.

that power includes power to advance further amounts for the purpose of assisting the tenant to make payments in pursuance of that provision.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exclusion of Restrictive Trade Practices Act: recommendations as to implementation of this Part.

454

Exclusion of Restrictive Trade Practices Act: agreements as to loans on security of new houses.

455

Advances under the Small Dwellings Acquisition Acts.

456

The provisions of Schedule 18 have effect with respect to advances made under the Small Dwellings Acquisition Acts 1899 to 1923 before the repeal of those Acts by the Housing (Consequential Provisions) Act 1985.

Supplementary provisions

Meaning of “house” and “house property”.

457

In this Part “house” includes—

(a) any yard, garden, outhouses and appurtenances belonging to the house or usually enjoyed with it, and

(b) any part of a building which is occupied or intended to be occupied as a separate dwelling including, in particular, a flat;

and “house property” shall be construed accordingly.

Minor definitions.

458

(1) In this Part—

“the corresponding Northern Ireland provisions” means—

(a) in relation to section 442 (local authority agreements to indemnify mortgagees), Article 156 of the Housing (Northern Ireland) Order 1981;

(b) in relation to sections 445 to 449 (assistance for first-time buyers), Part IX of that Order;

“the corresponding Scottish provisions”, in relation to sections 445 to 449 (assistance for first-time buyers), means sections 222 to 228 of the Housing (Scotland) Act 1987;

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

“ housing authority ” includes (subject to subsections (1A) and (2) and sections 450A(6), 450B(4) and 450D(10)) any local authority, an urban development corporation, a Mayoral development corporation, the Homes and Communities Agency, the Greater London Authority, the Relevant Authority , a private registered provider of social housing and a registered social landlord ;

“long lease” means a lease creating a long tenancy within the meaning of section 115.

“ service charge ” has the meaning given by section 18(1) of the Landlord and Tenant Act 1985 (c. 70).

(1A) A profit-making registered provider of social housing is a housing authority for the purposes of this Part only in relation to social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008.

(2) In section 444 “ housing authority ” does not include the Secretary of State unless the interest in the house is or was acquired on a disposal by him under section 90 of the Housing Associations Act 1985; and in section 452 “ housing authority ” does not include the Secretary of State unless the disposal was under that section 90.

Index of defined expressions: Part XIV.

459

PART XV — GRANTS FOR WORKS OF IMPROVEMENT, REPAIR AND CONVERSION

Main forms of grant assistance

General description of the main grants.

460

Grant applications.

461

(1) A grant shall be paid by a local housing authority only if an application for it is made to the authority in accordance with the provisions of this Part and is approved by them.

(2) The application shall specify the premises to which the application relates and contain—

(a) particulars of the works in respect of which the grant is sought (referred to in this part as “the relevant works”) and an estimate of their cost, and

(b) such other particulars as may be specified by the Secretary of State.

(3) A local housing authority may not entertain an application for a grant if—

(a) the relevant works are or include works which were the relevant works in relation to an application previously approved under the Part, and

(b) the applicant is, or is the personal representative of, the person who made the earlier application,

except in the circumstances specified in subsection (4).

(4) Such an application may be entertained if the relevant works have not been begun and either—

(a) more than two years have elapsed since the date on which the previous application was approved, or

(b) the application is made with a view to taking advantage of an order under section 509 (orders varying appropriate percentage for purposes of determining amount of grant).

Preliminary condition: the age of the property.

462

(1) A local housing authority shall not entertain an application for—

(a) an improvement grant in respect of works required for the provision of a dwelling by the conversion of a house or other building which was erected after 2nd October 1961, or

(b) any grant for the improvement or repair of a dwelling which was provided after 2nd October 1961.

unless they consider it appropriate to do so.

(2) The authority’s discretion to entertain such applications is subject to such general or special directions as may be given by the Secretary of State.

Preliminary condition: the interest of the applicant in the property.

463

(1) A local housing authority may entertain an application for a grant only if they are satisfied that—

(a) the applicant has, or proposes to acquire, an owner’s interest in every parcel of land on which the relevant works are to be or have been carried out, or

(b) the applicant is a tenant of the dwelling;

and references in this part to an “owner’s application” or a “tenant’s application” shall be construed accordingly.

(2) In subsection (1)(a) an “owner’s interest” means an interest 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 remain unexpired at the date of the application;

and where an authority entertain an owner’s application by a person who proposes to acquire the necessary interest, they shall not approve the application until they are satisfied that he has done so.

(3) In subsection (1)(b) a “tenant” means a person who has in relation to the dwelling—

(a) a protected tenancy, protected occupancy or statutory tenancy,

(b) a secure tenancy,

(c) a tenancy to which section 1 of the Landlord and Tenant Act 1954 applies (long tenancies at low rents) and of which less than five years remain unexpired at the date of the application, or

(d) a tenancy which satisfies such conditions as may be prescribed by order of the Secretary of State.

(4) An authority shall not entertain a tenant’s application for an improvement grant in respect of works required for the provision of a dwelling.

(5) An order 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.

(6) This section has effect subject to—

sections 486 and 494 (works required by statutory notice), and

section 513 (parsonages, applications by charities, etc.).

Preliminary condition: certificate as to future occupation.

464

(1) A local housing authority shall not entertain an owner’s application, other than an application for a special grant, unless it is accompanied by—

(a) a certificate of owner-occupation, or

(b) a certificate of availability for letting,

in respect of the dwelling, or each of the dwellings for the provision, improvement or repair of which the application is made.

(2) A local housing authority may refuse to entertain a tenant’s application unless it is accompanied by a certificate of availability for letting given by a person from whom the authority could have approved an owner’s application.

(3) A “certificate of owner-occupation” is (except where it is given by personal representatives or trustees) a certificate stating that the applicant intends that, on or before the first anniversary of the certified date and throughout the period of four years beginning on that first anniversary, the dwelling will be the only or main residence of, and will be occupied exclusively by, either—

(a) the applicant himself and members of his household (if any), or

(b) a person who is a member of the applicant’s family, or a grandparent or grandchild of the applicant or his spouse, and members of that person’s household (if any).

(4) Where the application for grant is made by the personal representatives of a deceased person or by trustees, a “certificate of owner-occupation” is a certificate stating that the applicants are personal representatives or trustees and intend that, on or before the first anniversary of the certified date and throughout the period of four years beginning with that first anniversary, the dwelling will be the only or main residence of, and exclusively occupied by, either—

(a) a beneficiary and members of his household (if any), or

(b) a person related to a beneficiary by being a member of his family or a grandparent or grandchild of the beneficiary or his spouse, and members of that person’s household (if any);

and in this subsection “beneficiary” means a person who, under the will or intestacy, or, as the case may require, under the terms of the trust, is beneficially entitled to an interest in the dwelling or the proceeds of sale of it.

(5) A “certificate of availability for letting” is a certificate stating that the person giving the certificate intends that, throughout the period of five years beginning with the certified date—

(a) the dwelling will be let or available for letting as a residence, and not for a holiday, to a person other than a member of the family of the person giving the certificate, 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 protected occupier under the Rent (Agriculture) Act 1976).

Restriction on grants for works already begun.

465

(1) A local housing authority may not approve an application for a grant if the relevant works have been begun unless they are satisfied that there were good reasons for beginning the works before the application was approved.

(2) Subsection (1) has effect subject to sections 486 and 494 (works required by statutory notice).

466

(1) The Secretary of State may direct that applications for an improvement grant or intermediate grant of a specified description shall not be approved without his consent.

(2) Such directions may be given to local housing authorities generally or to a particular local housing authority.

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