Housing (Scotland) Act 1987

Secretary of State may give directions to modify conditions of sale

78

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Secretary of State may give financial and other assistance for tenants involved in proceedings

79

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Secretary of State may make contributions towards the cost of transfers and exchanges

80

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Information from landlords in relation to Secretary of State's powers

81

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General

Interpretation of this Part

82

In ... sections 14, 19, and 20, except where provision is made to the contrary,

• ...

• “family” and any reference to membership thereof shall be construed in accordance with section 83;

• ...

• ...

• ...

• “landlord” means a person who lets a house to a tenant for human habitation, and includes his successors in title;

• ...

• ...

• . . .

• . . .

• ...

• “tenancy” means any agreement under which a house is made available for occupation for human habitation, and “leases”, “let” and “lets” shall be construed accordingly;

• “tenant” means a person who leases a house from a landlord and who derives his right therein directly from the landlord, and in the case of joint tenancies means all the tenants.

Members of a person's family

83

• (1) A person is a member of another’s family for the purposes of this Act if—

• (a) he is the spouse or civil partner of that person or he and that person live together as husband and wife or in a relationship which has the characteristics of the relationship between husband and wife except that the persons are of the same sex; or

• (b) he is that person’s parent, grandparent, child, grandchild, brother, sister, uncle, aunt, nephew or niece.

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

• (a) a relationship by marriage or by virtue of civil partnership shall be treated as a relationship by blood;

• (b) a relationship of the half-blood shall be treated as a relationship of the whole blood;

• (c) the stepchild of a person shall be treated as his child; and

• (ca) a person brought up or treated by another person as if the person were the child of the other person shall be treated as that person’s child;

• (d) a child shall be treated as such whether or not his parents are married.

• (3) Except in subsection (1)(a), references in this Act to a person’s spouse include references to that person’s civil partner or to another person living together with that person as husband and wife or in a relationship which has the characteristics of the relationship between husband and wife except that the persons are of the same sex.

Service of notices

84

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PART IV — SUB-STANDARD HOUSES

The tolerable standard

General duty of local authority in respect of houses not meeting tolerable standard

85

• (1) It shall be the duty of every local authority to secure that all houses in their district which do not meet the tolerable standard are closed, demolished or brought up to the tolerable standard within such period as is reasonable in all the circumstances.

• (2) In determining what period is reasonable for the purposes of subsection (1), regard shall be had to alternative housing accommodation likely to be available for any persons who may be displaced from houses as a result of any action proposed by the local authority in pursuance of that subsection.

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

Definition of house meeting tolerable standard

86

• (1) Subject to subsection (2), a house meets the tolerable standard for the purposes of this Act if the house—

• (a) is structurally stable;

• (b) is substantially free from rising or penetrating damp;

• (c) has satisfactory provision for natural and artificial lighting, for ventilation and for heating;

• (ca) has satisfactory thermal insulation;

• (d) has an adequate piped supply of wholesome water available within the house;

• (e) has a sink provided with a satisfactory supply of both hot and cold water within the house;

• (f) has a water closet or waterless closet available for the exclusive use of the occupants of the house and suitably located within the house;

• (fa) has a fixed bath or shower and a wash-hand basin, each provided with a satisfactory supply of both hot and cold water and suitably located within the house;

• (g) has an effective system for the drainage and disposal of foul and surface water;

• (ga) in the case of a house having a supply of electricity, complies with the relevant requirements in relation to the electrical installation for the purposes of that supply;

“the electrical installation” is the electrical wiring and associated components and fittings, but excludes equipment and appliances;

“the relevant requirements” are that the electrical installation is adequate and safe to use;

• (h) has satisfactory facilities for the cooking of food within the house;

• (i) has satisfactory access to all external doors and outbuildings;

• (j) has satisfactory equipment installed for detecting, and for giving warning of, fire or suspected fire;

• (k) has satisfactory equipment installed for detecting, and for giving warning of, carbon monoxide present in a concentration that is hazardous to health,

and any reference to a house not meeting the tolerable standard or being brought up to the tolerable standard shall be construed accordingly.

• (1A) In construing any such reference, regard shall be had to any guidance issued by the Scottish Ministers.

• (1B) The Scottish Ministers must issue the guidance in such manner as they consider appropriate for bringing it to the notice of local authorities and other persons with an interest.

• (1C) The Scottish Ministers may vary or revoke any such guidance.

• (2) The Secretary of State may by order vary or extend or amplify the criteria set out in the foregoing subsection either generally or, after consultation with a particular local authority, in relation to the district, or any part of the district, of that authority.

• (2A) An order under subsection (2) is to be made by statutory instrument, and no such order is to be made unless a draft of the order has been laid before and approved by resolution of the Scottish Parliament.

• (3) This section shall be without prejudice to section 114 (certain underground rooms to be treated as houses not meeting the tolerable standard).

Official representation that house does not meet tolerable standard

87

• (1) The proper officer of the local authority may make an official representation to the authority whenever he is of opinion that any house in their district does not meet the tolerable standard.

• (2) A local authority shall as soon as may be take into consideration any official representation which has been made to them.

• (3) Every representation made in pursuance of this section by the proper officer of the local authority shall be in writing.

Improvement order

Improvement of houses below tolerable standard outside housing action areas

88

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Housing action areas

Declaration of housing action areas for demolition

89

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Declaration of housing action areas for improvement

90

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Declaration of housing action areas for demolition and improvement

91

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Provisions supplementary to sections 89 to 91

92

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Consent to demolition of listed buildings, rehabilitation orders and compensation

93

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Powers of Secretary of State

Functions of Secretary of State, and duty of local authority to publish information

94

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Powers of local authority

Further procedure, powers of local authority on acquisition of land, compensation and agricultural holdings

95

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Power of local authority to retain houses subject to demolition for temporary occupation

96

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Local authority may control occupation of houses in housing action areas

97

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Obligation of local authorities in relation to rehousing in housing action areas

98

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Landlords and tenants in housing action areas

Application to sheriff for possession where house is identified in accordance with paragraph 1(1) of Schedule 8 as read with section 92(4)(a)

99

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Application to sheriff for possession where house is identified in accordance with paragraph 1(1) of Schedule 8 as read with section 92(4)(c)

100

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Application to sheriff for possession where house is identified in accordance with paragraph 1 of Schedule 8 as read with section 92(4)(b)

101

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Procedure; and application of s. 103(1) of Rent (Scotland) Act 1984

102

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Certain provisions of. Rent (Scotland) Act 1984 not to apply

103

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Effect of refusal to make order on validity of resolution

104

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Miscellaneous

Exclusion of houses controlled by Crown

105

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Power of local authority to arrange for the execution of works of improvement by agreement with the owner

106

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Conditions may be attached to sale of below-standard local authority houses

107

Where a house on land acquired or appropriated by a local authority for the purposes of Part I lacks one or more of the standard amenities (within the meaning given by section 73(6) of the Housing (Scotland) Act 2006 (asp 1)) or does not meet the tolerable standard, the local authority may make the sale by them of that house conditional on the purchaser providing the house with the standard amenities which it lacks or bringing the house up to the tolerable standard.

PART V — REPAIR OF HOUSES

Repair notices

Power of local authority to secure repair of house in state of serious disrepair

108

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Recovery by local authority of expenses under s. 108

109

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Recovery by lessee of proportion of expenses incurred in repairing house

110

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Appeals etc.

Appeals under Part V

111

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Date of operation of notices, demands and orders subject to appeal

112

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Landlord and tenant

Obligations to repair

113

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PART VI — CLOSING AND DEMOLITION ORDERS

Powers of local authority

Closing order

114

• (1) Where a local authority, on consideration of an official representation or a report by the proper officer or other information in their possession, are satisfied that any house does not meet the tolerable standard and that it ought to be demolished and—

• (a) the house forms only part of a building, and

• (b) the building does not comprise only houses which do not meet the tolerable standard,

the local authority may make a closing order prohibiting the use of the house for human habitation.

• (2) A closing order shall have effect from such date as may be specified in the order, not being less than 28 days from the date on which it comes into operation.

• (3) In this section, “house” includes any room habitually used as a sleeping place, the surface of the floor of which is more than 3 feet below the surface of the part of the street adjoining or nearest to the room (an “underground room”).

• (4) An underground room does not meet the tolerable standard for the purpose of this section if—

• (a) it is not an average of 7 feet in height from floor to ceiling, or

• (b) it does not comply with such regulations as the local authority may make for securing the proper ventilation and lighting of such rooms and the protection thereof against dampness, effluvia or exhalation.

• (5) If a local authority, after being required to do so by the Secretary of State, fail to make regulations under subsection (4)(b), the Secretary of State may himself make regulations which shall have effect as if they had been made by the authority under that subsection.

Demolition order

115

Where a local authority, on consideration of an official representation or a report by the proper officer or other information in their possession, are satisfied that any building comprises only a house which does not meet, or houses which do not meet, the tolerable standard and that the house or, as the case may be, houses, ought to be demolished, they may, subject to section 119, make a demolition order requiring—

• (a) that the building shall be vacated within such period as may be specified in the order, not being less than 28 days from the date on which the order comes into operation, and

• (b) that the building shall be demolished within 6 weeks after the expiration of that period or, if the building is not vacated before the expiration of the period, within 6 weeks after the date on which it is vacated.

Revocation of closing and demolition order

116

If in the case of a house in respect of which a closing order has been made or a building in respect of which a demolition order has been made the local authority are satisfied, on an application made by any owner of the house or building, or any person appearing to the authority to have reasonable cause for making the application, that the house has, or, as the case may be, the house or houses comprised in the building have, been brought up to the tolerable standard, they shall make an order revoking the closing order or, as the case may be, the demolition order.

Undertakings to bring up to tolerable standard and suspension order

117

• (1) Where a closing order or a demolition order has been made in respect of a house or building and not revoked, any owner of the house or building, or any person holding a heritable security over it, may give to the local authority, within a period of 21 days from the date of service of the order or such longer period therefrom as the authority may, either during or after the expiry of the 21 days, determine to be appropriate, an undertaking in writing—

• (a) that he will within a specified period carry out such works as will, in the opinion of the local authority, bring the house or, as the case may be, all the houses in the building, up to the tolerable standard; or

• (b) in the case of a building in respect of which a demolition order has been made, that no house in the building will be used for human habitation (unless at any time all the houses therein are brought up to the tolerable standard and the local authority agree that they have been so brought).

• (2) If an undertaking is so given the local authority shall as soon as may be either—

• (a) accept the undertaking and make in respect of it a suspension order suspending the closing order or, as the case may be, the demolition order, or

• (b) reject the undertaking and serve on the person who gave the undertaking notice that they have done so.

• (3) A suspension order shall cease to have effect on the expiry of one year from the date of its making unless renewed, at the discretion of the local authority, at the expiry of that year; and this subsection shall apply to any suspension order so renewed as it applies to the original order.

• (4) A suspension order made or renewed by a local authority may be revoked by them at any time by order if they have reasonable cause to believe that there has been a breach of the undertaking in respect of which it was made or renewed.

• (5) Any period—

• (a) between the service of the closing order or demolition order and the service of a suspension order or a notice of rejection under subsection (2), and

• (b) while a suspension order is in force,

shall be left out of account in reckoning in relation to the closing order or demolition order in question the period of 21 days referred to in sections 129(1) and 130.

Service

118

• (1) Any order made or notice issued under sections 114 to 117 in respect of a house or building shall be served—

• (a) upon the person having control of the house or, as the case may be, the house or houses comprised in the building;

• (b) upon any other person who is an owner of the house or, as the case may be, any of those houses;

• (c) upon any person holding a heritable security over the house or, as the case may be, any of those houses, unless it appears to the local authority, after exercising their powers under section 325, that there is no such person; and

• (d) where an application has been made in relation to the house, or, as the case may be, those houses, under section 116, by a person upon whom the order or notice is not required to be served apart from this paragraph, upon that person.

• (2) In subsection (1), references to an owner of, and to any person holding a heritable security over, a building shall be construed as including respectively references to an owner of, and to any person holding a heritable security over, any part of the building.

Listed buildings and houses subject to building preservation orders

119

• (1) Where apart from this section a local authority would be empowered to make a demolition order under this Part with respect to a building—

• (a) in relation to which a building preservation notice served under sections 3 to 5 of the Planning (Listed Buildings and Conservation Areas) (Scotland) Act 1997 is in force, or

• (b) which is a listed building within the meaning of section 1(4) of that Act,

they shall not make a demolition order but instead may make a closing order or closing orders under this section in respect of the house or houses comprised in the building.

• (2) Where a building to which a demolition order made under this Part by a local authority applies (whether or not that order has become operative) becomes—

• (a) subject to a building preservation notice served under the said sections 3 to 5, or

• (b) a listed building within the meaning of the said section 1(4),

the local authority shall revoke the demolition order and may make a closing order or closing orders in respect of the house or houses comprised in the building.

• (3) The provisions of sections 114(1), 116, 117 and 118 shall, subject to any necessary modifications, have effect in relation to a closing order made under this section as they have effect in relation to a closing order made under those sections.

Powers of local authority in relation to building consisting wholly of closed houses

120

• (1) Where a building consists wholly of houses with respect to which closing orders have become operative and none of those orders has been revoked or is subject to a suspension order, then—

• (a) the local authority may revoke the closing orders and make a demolition order under section 115 in respect of the whole building, but section 117 shall not apply to the order; or

• (b) the local authority may purchase the land by agreement or may, subject to the provisions of this section, be authorised by the Secretary of State to purchase it compulsorily.

• (2) The provisions of the Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947 shall apply in relation to the compulsory purchase of land under subsection (1)(b) as if that subsection had been in force immediately before the commencement of that Act.

• (3) The compensation to be paid for land purchased compulsorily under this section shall be assessed by the Lands Tribunal in accordance with Land Compensation (Scotland) Act 1963 subject, however, to the provisions of subsections (4) and (5).

• (4) The compensation payable under this section shall not (except by virtue of paragraph 3 of Schedule 2 to the said Act of 1963) exceed the value, at the time when the valuation is made, of the site as a cleared site available for development in accordance with the requirements of the building regulations for the time being in force in the district.

• (5) The references in subsections (3) and (4) to compensation are references to the compensation payable in respect of the purchase exclusive of any compensation for disturbance or for severance or for injurious affection.

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Local authority may acquire and repair house or building liable to closing or demolition order

121

• (1) If, in relation to any house or building to which this section applies, it appears to a local authority that having regard to—

• (a) its existing condition;

• (b) the needs of the area for the provision of further housing accommodation;

the house or building must remain in use as housing accommodation, they may purchase it.

• (2) This section applies to any house or building in respect of which the local authority may make—

• (a) a closing order under section 114; or

• (b) a demolition order under section 115 or 120(1).

• (3) Where a local authority determine to purchase a house or building under subsection (1), they shall serve notice of the determination on every person on whom they would be required under section 118(1) to serve a closing order or a demolition order made in respect of the house or building, and at any time after that notice comes into operation the local authority may purchase the house or building by agreement or may be authorised by the Secretary of State to purchase it compulsorily.

• (4) The provisions of the Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947 shall apply in relation to the compulsory purchase of a house or building under this section as if this section had been in force immediately before the commencement of that Act.

• (5) The compensation to be paid for any house or building purchased compulsorily under this section shall be assessed by the Lands Tribunal in accordance with the Land Compensation (Scotland) Act 1963 subject, however, to the provisions of subsections (6) and (7).

• (6) The compensation payable under this section shall not (except by virtue of paragraph 3 of Schedule 2 to the said Act of 1963) exceed the value, at the time when the valuation is made, of the site as a cleared site available for development in accordance with the requirements of the building regulations for the time being in force in the area.

• (7) The references in subsections (5) and (6) to compensation are references to the compensation payable in respect of the purchase exclusive of any compensation for disturbance or for severance or for injurious affection.

• (8) A local authority by whom a house or building is purchased under this section shall carry out such works as may in the opinion of the authority from time to time be required for rendering or keeping it capable of being continued in use as housing accommodation.

• (9) In respect of any house purchased by a local authority under this section, the authority shall have the like powers and duties as they have in respect of houses provided under Part I.

Offences

Penalty for use of premises in contravention of closing order or of undertaking

122

• (1) If any person—

• (a) knowing that a closing order made under section 114 or section 119 has become operative and applies to any premises, uses those premises or permits those premises to be used for human habitation without having obtained the consent of the local authority to the use of the premises for that purpose; or

• (b) knowing that an undertaking that any premises shall not be used for human habitation has been accepted by the local authority under this Part, uses those premises for human habitation or permits them to be so used,

he shall be guilty of an offence.

• (2) Any person guilty of an offence under subsection (1) shall be liable on summary conviction—

• (a) to a fine not exceeding level 5 on the standard scale, or to imprisonment for a term not exceeding 3 months or to both such fine and such imprisonment; and

• (b) in the case of a continuing offence, to a further fine of £5 for every day or part of a day on which he so uses those premises, or permits them to be so used, after conviction.

Powers of local authority following demolition order

Procedure where demolition order made

123

• (1) When a demolition order has become operative, the owner of the building to which it applies shall demolish the building within the time limited in that behalf by the order; and, if the building is not demolished within that time, the local authority may enter and demolish the building and sell the material thereof.

• (2) Any expenses incurred by a local authority under subsection (1), after giving credit for any amount realised by the sale of materials, may be recovered by them from the owner of the building, and any surplus in the hands of the authority shall be paid by them to the owner of the building.

• (3) In the application of this section to a demolition order made in respect of a building comprising two or more parts separately owned—

• (a) any reference to the owner of the building shall be construed as a reference to the owners of the several parts comprised in the building;

• (b) without prejudice to the powers of the local authority under subsection (1), the duty imposed by that subsection on the owners of the several parts comprised in the building to demolish the building shall be regarded as a duty to arrange jointly for the demolition of the building; and

• (c) subsection (2) shall have effect subject to the proviso that any sum recoverable or payable by the local authority under that subsection shall be recoverable from or payable to the several owners in such proportions as the owners may agree or, failing agreement, as shall be determined by an arbiter, nominated by the owners or, failing such nomination, nominated on the application of the authority or any of the owners, by the sheriff.

Power of local authority to purchase site of demolished building where expense of demolition cannot be recovered

124

• (1) Where a local authority have demolished a building in exercise of the powers conferred on them by section 123 and the expenses thereby incurred by them cannot be recovered by reason of the fact that the owner of the building cannot be found, the authority may be authorised by the Secretary of State to purchase compulsorily the site of the building, including the area of any yard, garden or pertinent belonging to the building or usually enjoyed therewith.

• (2) The provisions of the Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947 shall apply in relation to a compulsory purchase of land under subsection (1) as if that subsection had been in force immediately before the commencement of that Act.

• (3) A local authority shall be entitled to deduct from the compensation payable on the compulsory purchase of the site of a building under this section the amount of the expenses referred to in subsection (1) so far as not otherwise recovered.

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

Demolition of obstructive buildings

Local authority may by resolution require demolition of obstructive building

125

• (1) A local authority may serve upon the owner or owners of a building which appears to the authority to be an obstructive building notice of the time (being some time not less than one month after the service of the notice) and place at which the question of demolishing the building will be considered by the authority.

• (2) Where a local authority serve a notice under subsection (1) on an owner of a building, they shall at the same time require him to furnish within two weeks thereafter a written statement specifying the name and address ... of any person holding a heritable security over the owner’s interest in the building, and the authority shall as soon as may be after receipt of such statement serve on any person whose name is included therein, notice of the time and place at which the question of demolishing the building will be considered.

• (3) Any person on whom a notice is served under subsection (1) or (2) shall be entitled to be heard when the question of demolishing the building to which the notice relates is taken into consideration.

• (4) If after so taking the matter into consideration the local authority are satisfied that the building is an obstructive building and that the building or any part thereof ought to be demolished, they may pass a resolution that the building or that part thereof shall be demolished and may, by such resolution, require that the building, or such part thereof as is required to be vacated for the purposes of the demolition, shall be vacated within two months from the date on which the resolution becomes operative, and, if they do so, shall serve a copy of the resolution upon the owner or owners of the building.

• (5) If any person fails to give to the local authority any information required by them under subsection (2) or knowingly makes any mis-statement with reference thereto, he shall be guilty of an offence and shall be liable on summary conviction to a fine not exceeding level 1 on the standard scale.

• (6) In this section, the expression “obstructive building” means a building which, by reason only of its contact with, or proximity to, other buildings, is injurious or dangerous to health.

• (7) This section shall not apply to a building which is the property of public undertakers, unless it is used for the purposes of a dwelling, showroom or office, or which is the property of a local authority.

Effect of resolution for demolition of obstructive building

126

• (1) Subject to the provisions of this section, where a local authority have made a resolution and required a building to be vacated under section 125(4), they shall be bound to purchase the building if the owner offers to sell it to them.

• (2) On purchasing a building under this section, the local authority shall demolish it as soon as possible after they obtain possession of it.

• (3) A local authority shall only be bound to purchase the building if—

• (a) the offer is made before the expiry of the period within which the resolution requires it to be vacated; and

• (b) the acquisition of the owner’s interest would, apart from section 125, enable them to demolish the building.

• (4) The offer to sell shall be at a price to be assessed by the Lands Tribunal in accordance with the Land Compensation (Scotland) Act 1963, as modified by Schedule 1, as if it were compensation for compulsory purchase.

• (5) If no such offer as is mentioned in subsection (1) is made before the expiry of the said period, the local authority shall, as soon as may be thereafter, carry out the demolition and shall have the like right to sell the materials rendered available thereby as if they had purchased the building.

• (6) Where the demolition of a building is carried out under subsection (5), compensation shall be paid by the local authority to the owner in respect of loss arising from the demolition, and that compensation shall, notwithstanding that no land is acquired compulsorily by the authority, be assessed by the Lands Tribunal in accordance with the said Act of 1963, as modified by Schedule I, except that paragraphs (2) to (6) of section 12 of the said Act of 1963 shall not apply and that paragraph (1) of the said section 12 shall have effect with the substitution, for the reference to acquisition, of a reference to demolition.

Possession

Recovery of possession of building or house subject to closing order, etc.

127

• (1) Where a closing order, a demolition order, or a resolution passed under section 125 has become operative, the local authority shall serve on the occupier of any building or house or any part thereof to which the order or resolution relates a notice—

• (a) stating the effect of the order or resolution, and

• (b) specifying the date by which the order or resolution requires the building or house to be vacated, and

• (c) requiring the occupier to remove from the building or house before the said date or before the expiration of 28 days from the service of the notice, whichever may be the later.

• (2) If at any time after the date on which a notice under subsection (1) requires a building or house to be vacated, any person is in occupation of the building or house or of any part of it, the local authority or any owner of the building or house may make a summary application for removal and ejection to the sheriff.

• (3) The sheriff may, after requiring service of such additional notice (if any) as he thinks fit, grant warrant for ejection giving vacant possession of the building or house or of the part of it in question to the authority or owner, as the case may be, within such period, not being less than 2 weeks nor more than 4 weeks, as the sheriff may determine.

• (4) Subject to subsection (5), any expenses incurred by a local authority under this section in obtaining possession of any building or house or part thereof may be recovered by them from the owner of the building or house.

• (5) Subsection (4) does not apply to expenses incurred in obtaining possession of—

• (a) premises to which a resolution passed under section 125 applies; or

• (b) any other premises unless the owner has failed to make within a reasonable time a summary application for removal and ejection to the sheriff or, having made such an application, has failed to take all steps necessary to have the application disposed of within a reasonable time.

• (6) Any person who, knowing that a demolition order or a resolution passed under section 125 has become operative and applies to any building or house, enters into occupation of that building or house or any part of it after the date by which the order or resolution requires that building or house to be vacated, or permits any other person to enter into such occupation after that date, shall be guilty of an offence and shall be liable on summary conviction—

• (a) to a fine not exceeding level 5 on the standard scale, or to imprisonment for a term not exceeding 3 months or to both such fine and such imprisonment; and

• (b) in the case of a continuing offence to a further fine of £5 for every day, or part of a day, on which the occupation continues after conviction.

Recovery of possession of house to which Rent Act applies

128

• (1) Nothing in an enactment mentioned in subsection (2) shall be deemed to affect the provisions of this Act relating to obtaining possession of a house with respect to which a closing order, or a demolition order has been made or to which a resolution passed under section 125 applies, or to prevent possession being obtained—

• (a) of any house possession of which is required for the purpose of enabling a local authority to exercise their powers under any enactment relating to housing;

• (b) of any house possession of which is required for the purpose of securing compliance with any byelaws made for the prevention of overcrowding;

• (c) of any premises by any owner in a case where an undertaking has been given under this Part that those premises shall not be used for human habitation.

• (2) The enactments referred to in subsection (1) are—

• (a) the Rent (Scotland) Act 1984;

• (b) Part II of the Housing (Scotland) Act 1988;

• (c) the Private Housing (Tenancies) (Scotland) Act 2016.

Appeals and date of operation of certain notices, etc.

Appeals

129

• (1) Subject to the provisions of this section and subsections (2) to (7) of section 324 any person aggrieved by—

• (a) a closing order made under section 114 or section 119 or a refusal to determine such a closing order;

• (b) a demolition order or a refusal to determine a demolition order or a resolution under section 125;

• (c) a notice of determination to purchase served under section 121(3);

• (d) a notice that no payment falls to be made under section 304(1) served under subsection (2) of that section;

may appeal to the sheriff by giving notice of appeal within 21 days after the date of the service of the notice, or order or resolution, or after the refusal, as the case may be; and no proceedings shall be taken by the local authority to enforce any notice, or order while an appeal against it is pending.

• (2) No appeal shall lie under paragraphs (a), (b) or (c) of subsection (1) at the instance of a person who is in occupation of the premises to which the order or resolution or notice relates under a lease or agreement the unexpired term of which does not exceed 6 months.

• (3) On an appeal under paragraph (a) or paragraph (b) of subsection (1), the sheriff may consider any undertaking such as is specified in relation to a closing order or a demolition order, as the case may be, in section 117 and, if he thinks it proper to do so having regard to the undertaking, may direct the local authority to make a suspension order under that section.

Date of operation of notices, orders or resolutions subject to appeal

130

• (1) Any notice, or order or resolution against which an appeal might be brought to the sheriff under section 129 shall, if no such appeal is brought, become operative on the expiration of 21 days after the date of the service of the notice, or order or resolution, as the case may be, and shall be final and conclusive as to any matters which could have been raised on such an appeal.

• (2) Any such notice or order or resolution against which an appeal is brought shall, if and so far as it is confirmed by the sheriff, become operative as from the date of the determination of the appeal.

Charging orders

Power of local authority to make charging order in favour of themselves

131

• (1) Where a local authority have themselves incurred expenses under section 123 in the demolition of a building, they may make a charging order in favour of themselves in respect of such expenses.

• (2) The provisions of Schedule 9 shall, subject to any necessary modifications and to the provisions of subsection (3), apply to a charging order so made.

• (3) A charging order so made shall be made in relation to the site of the building demolished, including the area of any yard, garden or pertinent belonging to the building or usually enjoyed therewith.

Supplementary

Protection of superiors and owners

132

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

• (2) Nothing in this Part shall prejudice or interfere with the rights or remedies of any owner for the breach, non-observance or non-performance of any contract or obligation entered into by a tenant or lessee with reference to any house in respect of which an order or resolution is made by a local authority under this Part; and if any owner is obliged to take possession of any house in order to comply with any such order or resolution the taking possession shall not affect his right to avail himself of any such breach, non-observance or non-performance which may have occurred before he so took possession.

Interpretation

133

• (1) In this Part (except sections 125, 126 and 132) any reference to a house, or to a building, includes a reference to premises occupied by agricultural workers although such premises are used for sleeping purposes only.

• (2) For the purposes of this Part a crofter or a landholder shall be deemed to be the owner of any house on his croft or holding in respect of which he would, on the termination of his tenancy, be entitled to compensation under the Crofters (Scotland) Acts 1955 and 1961 or, as the case may be, the Small Landholders (Scotland) Acts 1886 to 1931, as for an improvement.

Saving

Saving for telecommunication and gas apparatus

134

Paragraph 23 of Schedule 2 to the Telecommunications Act 1984 (code for cases where works involve the alteration of apparatus), as applied by paragraph 2(7) of Schedule 7 to the Gas Act 1986 to gas apparatus, shall apply to a local authority for the purposes of any works which they are authorised to execute under this Part.

PART VII — OVERCROWDING

Definition of overcrowding

Definition of overcrowding

135

—A house is overcrowded for the purposes of this Part when the number of persons sleeping in the house is such as to contravene—

• (a) the standard specified in section 136 (the room standard), or

• (b) the standard specified in section 137 (the space standard).

The room standard

136

• (1) The room standard is contravened when the number of persons sleeping in a house and the number of rooms available as sleeping accommodation is such that two persons of opposite sexes who are not living together as husband and wife must sleep in the same room.

• (2) For this purpose—

• (a) children under the age of 10 shall be left out of account, and

• (b) a room is available as sleeping accommodation if it is of a type normally used in the locality either as a bedroom or as a living room.

The space standard

137

• (1) The space standard is contravened when the number of persons sleeping in a house is in excess of the permitted number, having regard to the number and floor area of the rooms of the house available as sleeping accommodation.

• (2) For this purpose—

• (a) no account shall be taken of a child under the age of one and a child aged one or over but under 10 shall be reckoned as one-half of a unit, and

• (b) a room is available as sleeping accommodation if it is of a type normally used in the locality either as a living room or as a bedroom.

• (3) The permitted number of persons in relation to a house is whichever is the less of—

• (a) the number specified in Table I in relation to the number of rooms in the house available as sleeping accommodation, and

• (b) the aggregate for all such rooms in the house of the numbers specified in column 2 of Table II in relation to each room of the floor area specified in column 1.

No account shall be taken for the purposes of either Table of a room having a floor area of less than 50 square feet.

Number of rooms	Number of persons
1	2
2	3
3	5
4	7½
5 or more	2 for each room
Floor area of room	Number of persons
---	---
110 sq. ft. or more	2
90 sq. ft. or more but less than 110 sq. ft.	1½
70 sq. ft. or more but less than 90 sq. ft.	1
50 sq. ft. or more but less than 70 sq. ft.	½

• (4) The Secretary of State may prescribe the manner in which the floor area of a room is to be ascertained for the purposes of this section; and the regulations may provide for the exclusion from computation, or the bringing into computation at a reduced figure, of floor space in a part of the room which is of less than a specified height.

• (5) Regulations under subsection (4) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

• (6) A certificate of the local authority stating the number and floor areas of the rooms in a house, and that the floor areas have been ascertained in the prescribed manner, is evidence for the purposes of legal proceedings of the facts stated in it.

Powers of Secretary of State

Secretary of State may increase permitted number of persons temporarily

138

• (1) The Secretary of State may, subject to the provisions of this section, increase by order the number of permitted persons in relation to houses to which this section applies or a specified class of those houses.

• (2) This section applies to houses consisting of a few rooms, or comprising rooms of exceptional floor area.

• (3) The Secretary of State may make an order under this section if he is satisfied on the representation of the local authority that such houses constitute so large a proportion of the housing accommodation in their district, or in any part of it, that it would be impracticable to assess the permitted number of persons in accordance with the provisions of section 137(3).

• (4) An order under this section may—

• (a) direct that the provisions of section 137(3) are to have effect subject to such modifications for increasing the permitted number of persons as may be specified in the order;

• (b) specify the period not exceeding 3 years during which such modifications are to apply;

• (c) specify different modifications in relation to different classes of houses.

• (5) Any period specified in the order may be extended by the Secretary of State on the application of the local authority.

• (6) The Secretary of State shall consult the local authority before varying or revoking an order made under this section, and may vary it in respect of the modifications or of the houses to which the modifications apply or to both.

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

Responsibility of occupier

Penalty for occupier causing or permitting overcrowding

139

• (1) The occupier of a house who causes or permits it to be overcrowded is guilty of an offence, subject to subsection (2).

• (2) The occupier is not guilty of an offence—

• (a) if the overcrowding is within the exceptions specified in sections 140 or 141 (children attaining age of one or 10 or temporary visitor), or

• (b) by reason of anything done under the authority of, and in accordance with any conditions specified in, a licence granted by the local authority under section 142 or a resolution passed under section 143.

• (3) A person committing an offence under this section is liable on summary conviction to a fine not exceeding level 1 on the standard scale.

Exception: children attaining age of 1 or 10

140

• (1) Where a house which would not otherwise be overcrowded becomes overcrowded by reason of a child attaining the age of one or 10, the occupier does not commit an offence under section 139(1) (occupier causing or permitting overcrowding), so long as the condition in subsection (2) is met and the occupier does not fail to accept an offer of suitable alternative accommodation or to secure the removal of any person living in the house who is not a member of his family and whose removal is reasonably practicable.

• (2) The condition is that all the persons sleeping in the house are persons who were living there when the child attained that age and thereafter continuously live there, or children born after that date of any of those persons.

Exception: temporary visitor

141

—The occupier of a house shall not be guilty of an offence under section 139(1) in respect of overcrowding if the overcrowding is caused by a temporary resident whose stay does not exceed 16 days and to whom lodging is given by the occupier otherwise than for gain.

Licence of local authority

142

• (1) The occupier or intending occupier of a house may apply to the local authority for a licence authorising him to permit a number of persons in excess of the permitted number to sleep in the house.

• (2) The authority may grant such a licence if it appears to them that there are exceptional circumstances and that it is expedient to do so; and they shall specify in the licence the number of persons authorised in excess of the permitted number.

• (3) The licence shall be in the prescribed form and may be granted either unconditionally or subject to conditions specified in it.

• (4) The local authority may revoke the licence at their discretion by notice in writing served on the occupier and specifying a period (at least one month from the date of service) at the end of which the licence will cease to be in force.

• (5) Unless previously revoked, the licence continues in force for such period not exceeding twelve months as may be specified in it.

• (6) A copy of the licence and of any notice of revocation shall, within seven days of the issue of the licence or the service of the notice on the occupier, be served by the local authority on the landlord (if any) of the house.

Exception: holiday visitors

143

• (1) A local authority may, for the purpose of providing for a seasonal increase of holiday visitors in their area, pass a resolution authorising—

• (a) the occupiers of houses generally;

• (b) the occupiers of houses of a specified class,

in their area or any specified part of it to permit such number of persons in excess of the permitted number as may be specified to sleep in those houses during any period it is in force.

• (2) Such a resolution—

• (a) requires the approval of the Secretary of State;

• (b) is subject to such conditions as may be specified in it; and

• (c) remains in force during the year in which it is passed for such period or periods not exceeding 16 weeks in the aggregate as it may specify.

Powers and duties of landlord

Offence by landlord not to inform prospective tenant of permitted number of occupants

144

• (1) The landlord of a house is guilty of an offence if he lets or agrees to let it to any person without—

• (a) giving that person a written statement in the prescribed form of the permitted number of persons in relation to the house, and

• (b) obtaining from that person a written acknowledgement in the prescribed form, and

• (c) exhibiting the acknowledgement to the local authority on demand by them.

• (2) A person guilty of an offence under subsection (1) shall be liable on summary conviction to a fine not exceeding level 1 on the standard scale.

• (3) A written statement given under subsection (1)(a) shall be treated as being sufficient and correct if it agrees with information given by the local authority under section 148.

Recovery of possession of overcrowded house that is let

145

• (1) —If the occupier of a house is guilty of an offence by reason of it being overcrowded—

• (a) nothing in an enactment mentioned in subsection (2) shall prevent the landlord from obtaining possession of the house;

• (b) the local authority after giving to the landlord written notice of their intention to do so may take any such steps for the termination of the occupier’s tenancy or for his removal or ejection from the house as the landlord could take.

• (2) The enactments referred to in subsection (1) are—

• (a) the Rent (Scotland) Act 1984;

• (b) Part II of the Housing (Scotland) Act 1988;

• (c) the Private Housing (Tenancies) (Scotland) Act 2016.

Powers and duties of local authority

Duty of local authority to inspect district and to make reports and proposals as to overcrowding

146

• (1) A local authority shall, subject to the provisions of this section, carry out an inspection of their district or any part of it for the purpose of identifying houses that are overcrowded.

• (2) An inspection under subsection (1) shall be carried out at such times as—

• (a) it appears to the local authority that there is occasion to do so, or

• (b) the Secretary of State so directs.

• (3) On carrying out such an inspection the local authority shall prepare and submit to the Secretary of State a report indicating—

• (a) the result of the inspection, and

• (b) the additional housing accommodation required to put an end to overcrowding in the area to which the report relates, and

• (c) subject to subsection (5), proposals for its provision, and

• (d) in relation to such proposals, a statement of the steps the local authority propose to take to secure that priority is given to rehousing families living under the worst conditions of overcrowding or otherwise living under unsatisfactory housing conditions.

• (4) The report shall give such details as the Secretary of State may direct.

• (5) The report shall not require to make proposals for the additional housing accommodation required, if the local authority satisfy the Secretary of State that it will be otherwise provided.

• (6) Where the Secretary of State gives a direction under subsection (2), he may fix dates before which the performance of their duties under this section is to be completed.

Power to require information about persons sleeping in house

147

• (1) The local authority may, for the purpose of enabling them to discharge their duties under this Part, serve notice on the occupier of a house requiring him to give them within 14 days a written statement of the number, ages and sexes of the persons sleeping in the house.

• (2) The occupier shall be guilty of an offence if—

• (a) he makes default in complying with the requirement, or

• (b) he gives a statement which to his knowledge is false in a material particular,

and shall be liable on summary conviction to a fine not exceeding level 1 on the standard scale.

Duty to give information to landlords and occupiers

148

• (1) A local authority shall inform the landlord and the occupier of a house in writing of the permitted number of persons in relation to the house as soon as they have ascertained the floor area of the rooms.

• (2) They shall also so inform the landlord or the occupiers if they apply for the information.

Power to publish information

149

A local authority may publish information for the assistance of landlords and occupiers of houses as to their rights and duties under this Part.

Duty to enforce this Part

150

A local authority shall enforce the provisions of this Part.

Interpretation and application

151

• (1) In this Part, except where the context otherwise requires—

• “house” means any premises used or intended to be used as a separate dwelling . . . ;

• “landlord” means, in relation to any house, the person from whom the occupier derives his right to occupy it;

• “suitable alternative accommodation” means, in relation to the occupier of a house, a house in which the occupier and his family can live without causing it to be overcrowded, being a house which the local authority certify to be suitable to the needs of the occupier and his family as respects security of tenure and proximity to place of work and to be suitable in relation to his means.

• (2) The provisions of sections 138(1) to (5), 139, 140 and 144 apply only to a locality in respect of which a day has been appointed under section 99 of the Housing (Scotland) Act 1966 or under any enactment referred to in that section.

PART VIII — HOUSES IN MULTIPLE OCCUPATION

Registration schemes

Registration schemes

152

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

Steps to inform the public about scheme

153

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

Proof of scheme and contents of register

154

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

Power to require information for purposes of scheme

155

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

Management code

Power of Secretary of State to make management code

156

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

Power of local authority to apply management code to particular house

157

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

Appeal against making of, or failure to revoke, order under s. 157

158

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

Registration of order and of revocation

159

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

Powers of local authority to require works to be done

Notice requiring compliance with management code

160

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

Notice requiring compliance with standards

161

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

Notice requiring provision of means of escape from fire

162

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

Appeal against notice requiring execution of works

163

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

Carrying out of works by local authority

164

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

Penalty for failure to execute works

165

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

Overcrowding

Local authority may give directions to prevent or reduce overcrowding in house in multiple occupation

166

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

Notice of direction

167

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

Power to require information where notice is in force

168

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

Revocation and variation

169

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

Appeal against refusal

170

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

Supplementary

Application of sections 156 to 161 to certain buildings comprising separate dwellings

171

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

Management code to be available for dwellings in certain tenements

172

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

Warrant to authorise entry

173

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

Application to sheriff where consent unreasonably withheld

174

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

Protection of superiors and owners

175

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

Identity and notice under Part VIII

176

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

Statutory tenant to be regarded as lessee, etc.

177

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

Control orders

Making of control order

178

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

General effect of control order

179

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

Effect of control order on persons occupying house

180

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

Effect of control order in relation to furniture in furnished lettings

181

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

General duties of local authority when control order in force

182

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

Compensation payable to dispossessed proprietor

183

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

Duty to prepare management scheme

184

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

Power of sheriff to modify or determine lease

185

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

Appeals

Appeal against control order

186

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

Control order revoked on appeal

187

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

Expiration and revocation of control order, Et ceteralaetc

Expiration of control order, and earlier revocation by local authority or sheriff

188

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

Effect of cessation of control order

189

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

Interpretation of Part VIII

190

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

PART IX — GOVERNMENT GRANTS AND SUBSIDIES

Housing support grants to local authorities

Housing support grants: fixing of aggregate amount

191

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

Apportionment of housing support grants

192

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

Variation of orders

193

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

Grants to the Scottish Special Housing Association and other bodies

Grants payable to the Scottish Special Housing Association and development corporations

194

• (1) The Secretary of State may each year make grants, of such amount and subject to such conditions as he may determine, to . . . development corporations in accordance with the provisions of this section.

• (2) Grants under this section shall be payable for any year to . . . development corporations in respect of the total net annual expenditure (as approved by the Secretary of State and calculated in accordance with rules made by him with the consent of the Treasury) necessarily incurred for that year by . . . any development corporation—

• (a) in providing housing accommodation by—

• (i) erecting houses,

• (ii) converting any houses or other buildings into houses,

• (iii) acquiring houses;

• (b) in improving housing accomodation so provided;

• (c) in managing and maintaining any housing accommodation so provided or improved;

• (d) in improving the amenities of a predominantly residential area;

• (e) in providing or converting buildings for use as hostels or as parts of hostels, and in improving, managing and maintaining buildings so provided or converted;

• (f) in doing anything ancillary to any of the activities mentioned in paragraphs (a) to (e).

• (3) In subsection (2) “improving” includes altering, enlarging or repairing.

Grants for affording tax relief to Scottish Special Housing Association

195

• (1) The Secretary of State may, on the application of the Association, make grants to the Association for affording relief from—

• (a) income tax (other than income tax which the Association is entitled to deduct on making any payment); and

• (b) corporation tax.

• (2) A grant under this section shall be of such amount, shall be made at such times and shall be subject to such conditions as the Secretary of State thinks fit.

• (3) The conditions mentioned in subsection (2) may include conditions for securing the repayment in whole or in part of a grant made to the Association in the event of tax in respect of which the grant was made subsequently being found not to be chargeable or in such other events as the Secretary of State may determine.

• (4) An application under this section shall be made in such manner and shall be supported by such evidence as the Secretary of State may direct.

• (5) The Commissioners of Inland Revenue and their officers may disclose to the Secretary of State such particulars as he may reasonably require for determining whether a grant should be made under this section or whether a grant so made should be repaid or the amount of such grant or repayment.

Advances to Scottish Special Housing Association for provision or improvement of housing accommodation

196

Financial assistance to voluntary organisations concerned with housing

197

• (1) The Secretary of State may, with the consent of the Treasury and upon such terms and subject to such conditions as he may determine, give to a voluntary organisation assistance by way of grant or by way of loan, or partly in the one way and partly in the other, for the purpose of enabling or assisting the organisation to provide training or advice, or to undertake research, or for other similar purposes relating to housing.

• (2) In this section “voluntary organisation” means a body the activities of which are carried on otherwise than for profit, but does not include any public or local authority or a registered housing association.

Payment of grants

Payment of grants and accounting provisions

198

• (1) Any grant to be paid by the Secretary of State under this Part shall be payable at such times and in such manner as he may determine and subject to such conditions as he may impose.

• (2) Without prejudice to the generality of subsection (1), the making of any such payment shall be subject to the making of an application for the payment in such form, and containing such particulars, as the Secretary of State may from time to time determine.

Termination of certain exchequer payments to housing authorities

199

Schedule 12 shall have effect for the purpose of terminating certain exchequer payments to housing authorities.

Slum clearance subsidy

The slum clearance subsidy

200

Payment of subsidies

Payment of subsidies and accounting provisions

201

• (1) Any subsidy to be paid by the Secretary of State under this Part shall be payable at such times and in such manner as the Treasury may direct and subject to such conditions as to records, certificates, audit or otherwise, as the Secretary of State may, with the approval of the Treasury, impose.

• (2) Without prejudice to the generality of subsection (1), the making of any such payment shall be subject to the making of a claim for the payment in such form, and containing such particulars, as the Secretary of State may from time to time determine.

• (3) The aggregate amount of any one subsidy payable under this Part to a housing authority for any year shall be calculated to the nearest pound, by disregarding an odd amount of 50 pence, or less, and by treating an odd amount exceeding 50 pence as a whole pound.

• (4) Subsection (1) applies to Exchequer contributions payable under the enactments specified in Schedule 13 as it applies to subsidies paid under this Part, and Schedule 13 shall have effect for the purposes of this subsection.

• (5) Schedule 14 shall have effect for the purposes of specifying such Exchequer contributions as may be reduced, suspended or discontinued under section 202(3).

Secretary of State’s power to vary Exchequer contributions

Power of Secretary of State to reduce, suspend, discontinue or transfer particular Exchequer contributions

202

• (1) The Secretary of State may in the circumstances mentioned in subsection (2) reduce the amount of a subsidy to be paid under this Part or suspend or discontinue such payment or part of such payment.

• (2) The circumstances are—

• (a) where the Secretary of State is satisfied that the local authority has failed to discharge any of their functions;

• (b) where the subsidy is payable subject to a condition, and the Secretary of State is satisfied that the condition has not been complied with.

• (3) The Secretary of State may, in any of the circumstances mentioned in subsection (5), reduce the amount of any Exchequer contribution being an Exchequer contribution falling to be made under any of the enactments specified in Schedule 14 in respect of a particular subsidised unit, or suspend or discontinue the payment of such Exchequer contributions or part thereof, as he thinks just in those circumstances.

• (4) Where an Exchequer contribution is made to a local authority in respect of a subsidised unit in relation to which an annual grant is payable by the authority to a development corporation or a housing association, then, if the amount of the Exchequer contribution is reduced or the payment of the Exchequer contribution or part of it is suspended or discontinued under this section, the authority may reduce the annual grant to a corresponding or any less extent or suspend the payment thereof, for a corresponding period or discontinue the payment, or of a corresponding part, as the case may be.

• (5) The circumstances referred to in subsection (3) are—

• (a) that the Exchequer contribution is to be made to a local authority and the Secretary of State is satisfied that the authority have failed to discharge any of their duties under this Act or that they have failed to exercise any power mentioned therein in any case where any such power ought to have been exercised;

• (b) that the Exchequer contributions fall to be made or the subsidy falls to be paid subject to any conditions and the Secretary of State is satisified that any of those conditions has not been complied with;

• (c) that the subsidised unit has been converted, demolished or destroyed;

• (d) that the subsidised unit is not fit to be used or has ceased to be used for the purpose for which it was intended;

• (e) that the subsidised unit has been sold or has been leased for a stipulated duration exceeding 12 months;

• (f) that the subsidised unit has been transferred, whether by sale or otherwise.

• (6) Where the Secretary of State’s power under this section to discontinue the payment of the whole or part of any Exchequer contributions to be made to a recipient authority in respect of a particular subsidised unit becomes exercisable in the circumstances mentioned in paragraph (e) or paragraph (f) of subsection (5) and the subsidised unit has become vested in or has been leased to another recipient authority, then, if the Secretary of State exercised that power he may make to that other authority Exchequer contributions of the like amount as he would otherwise have made to the first-mentioned authority if the conditions subject to which the first-mentioned Exchequer contributions fell to be made had been complied with.

• (7) In this section—

• “recipient authority” means a local authority, a development corporation or a housing association.