Legalize / United Kingdom / Public General Act

Housing Act 1988

Type Public General Act

Publication 1988-11-15

Last updated 2025-12-27

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(1) This section applies where a house has been disposed of by a Corporation to disposal falling within section 79(2) above and, in relation to a house provide legal which has been so disposed of, a “transferred tenant” means a tenant of it assistance to who either—

(a) was the secure tenant or the introductory tenant of the house immediately before the disposal; or

(b) is the widow, widower or surviving civil partner of the person who was then the secure tenant or the introductory tenant of it.

(2) On an application by a transferred tenant of a house who is a party or a prospective party to proceedings or prospective proceedings to determine any dispute between himself and the person who acquired the house on the disposal referred to in subsection (1) above, the appropriate authority may give assistance to the transferred tenant if it thinks fit to do so—

(a) on the ground that the case raises a question of principle; or

(b) on the ground that it is unreasonable, having regard to the complexity of the case, or to any other matter, to expect the transferred tenant to deal with it without assistance; or

(3) Assistance given by the appropriate authority under this section may include—

(a) giving advice;

(b) procuring or attempting to procure the settlement of the matter in dispute;

(d) arranging for representation by a solicitor or counsel, including such assistance as is usually given by a solicitor or counsel in the steps preli*minary or incidental to any proceedings, or in arriving at or giving effect to a compromise to avoid or bring to an end any proceedings; and

(e) any other form of assistance which the appropriate authority may consider appropriate;

but paragraph (d) above does not affect the law and practice regulating the descriptions of persons who may appear in, conduct, defend and address the court in any proceedings.

(4) In so far as expenses are incurred by the appropriate authority in providing a transferred tenant with assistance under this section, the recovery of those expenses (as taxed or assessed in such manner as may be prescribed by rules of court) shall constitute a first charge for the benefit of the appropriate authority—

(a) on any costs which (whether by virtue of a judgment or order of a court or an agreement or otherwise) are payable to the tenant by any other person in respect of the matter in connection with which the assistance was given, and

(b) so far as relates to any costs, on his rights under any compromise or settlement arrived at in connection with that matter to avoid or bring to an end any proceedings;

but subject to any charge imposed by section 25 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 and any provision in, or made under, Part I of that Act for the payment of any sum to the Lord Chancellor.

(5) In this section “the appropriate authority” means—

(a) in a case where the disposal mentioned in subsection (1) was to a private registered provider of social housing, the Regulator of Social Housing, ...

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

Secure tenancies and right to buy

Application of Parts IV and V of Housing Act 1985

83

(1) Parts IV and V of the Housing Act 1985 (secure tenancies and the right to buy) shall be amended in accordance with this section.

(2) In section 80(1) (which lists the landlords whose tenancies can qualify as secure tenancies), after the entry specifying a new town corporation there shall be inserted— “ a housing action trust ”.

(3) In section 108 (heating charges to secure tenants), in paragraph (a) of subsection (5) (the definition of “heating authority”) after the words “housing authority” there shall be inserted “or housing action trust”.

(4) In section 114 (meaning of “landlord authority” for the purposes of that Part), in each of subsections (1) and (2), after the entry specifying a development corporation, there shall be inserted— “ a housing action trust ”.

(5) In section 171 (power to extend right to buy where certain bodies hold an interest in a dwelling-house), in subsection (2), after the entry specifying a new town corporation there shall be inserted— “ a housing action trust ”.

(6) In each of the following provisions (all of which relate to cases where premises are or were let to a person in consequence of employment), namely—

(a) paragraph 2(1) of Schedule I (tenancies which are not secure tenancies),

(b) Grounds 7 and 12 of Schedule 2 (grounds for possession of dwelling-houses let under secure tenancies),

(d) paragraph 5 of Schedule 5 (exceptions to the right to buy),

after the entry specifying a new town corporation there shall be inserted— “ a housing action trust ”.

(7) In Schedule 4 (qualifying period for right to buy and discount), inparagraph 7 (the landlord condition) after the entry specifying a new town corporation there shall be inserted— “ a housing action trust ”.

Provisions applicable to disposals of dwelling-houses subject to secure tenancies

84

(1) The provisions of this section apply in any case where—

(a) a housing action trust proposes to make a disposal of one or more houses let on secure tenancies or introductory tenancies which would result in a person who, before the disposal, is a secure tenant or an introductory tenant of the trust becoming, after the disposal, the tenant of another person, and

(b) that other person is not a local housing authority or other local authority.

(2) Before applying to the Secretary of State for consent to the proposed disposal or serving notice under subsection (4) below, the housing action trust shall serve notice in writing on any local housing authority in whose area any houses falling within subsection (1) above are situated—

(a) informing the authority of the proposed disposal and specifying the houses concerned, and

(b) requiring the authority within such period, being not less than 28 days, as may be specified in the notice, to serve on the trust a notice under subsection (3) below.

(3) A notice by a local housing authority under this subsection shall inform the housing action trust, with respect to each of the houses specified in the notice under subsection (2) above which is in the authority’s area, of the likely consequences for the tenant if the house were to be acquired by the authority.

(4) Before applying to the Secretary of State for consent to the proposed disposal, and after the expiry of the period specified in the notice under subsection (2) above, the housing action trust shall serve notice in writing on ... the secure tenant or, as the case may be, introductory tenant—

(a) informing him of the proposed disposal and of the name of the person to whom the disposal is to be made;

(b) containing such other details of the disposal as seem to the trust to be appropriate;

(c) informing him of the likely consequences of the disposal on his position as a ... secure tenant or an introductory tenant and, if appropriate, of the effect of sections 171A to 171H of the Housing Act 1985 (preservation of right to buy on disposal to private sector landlord);

(d) if the local housing authority in whose area the house of which he is tenant is situated has served notice under subsection (3) above, informing him (in accordance with the information given in the notice) of the likely consequences for him if the house were to be acquired by that authority;

(e) informing him, if he wishes to become a tenant of that authority, of his right to make representations to that effect under paragraph (f) below and of the rights conferred by section 84A below;

(f) informing him of his right to make representations to the trust with respect to the proposed disposal within such period, being not less than 28 days, as may be specified in the notice.

(5) If, by virtue of any representations made to the housing action trust in accordance with subsection (4)(f) above, section 84A below applies in relation to any house or block of flats, the trust shall—

(a) serve notice of that fact on the Secretary of State, on the local housing authority and on the tenant of the house or each of the tenants of the block, and

(b) so amend its proposals with respect to the disposal as to exclude the house or block;

and in this subsection “ house ” and “ block of flats ” have the same meanings as in that section.

(5A) The housing action trust shall consider any other representations so made and, if it considers it appropriate to do so having regard to any of those representations—

(a) may amend (or further amend) its proposals with respect to the disposal, and

(b) in such a case, shall serve a further notice under subsection (4) above (in relation to which this subsection will again apply).

(6) When applying to the Secretary of State for consent to the proposed disposal (as amended, where appropriate, by virtue of subsection (5) or subsection (5A) above) the housing action trust shall furnish to him—

(a) a copy of any notice served on it under subsection (3) above or served by it under subsection (4) above;

(b) a copy of any representations received by the trust; and

(7) Without prejudice to the generality of section 72 above, where an application is made to the Secretary of State for consent to a disposal to which this section applies, or a disposal which would be such a disposal if subsection (1)(b) above were omitted, the Secretary of State may, by a direction under that section, require the housing action trust—

(a) to carry out such further consultation or, as the case may be, such consultation with respect to the proposed disposal as may be specified in the direction; and

(b) to furnish to him such information as may be so specified with respect to the results of that consultation.

(8) Notwithstanding the application to a housing action trust of Part IV of the Housing Act 1985 (secure tenancies) of Chapter 1 of Part V of the Housing Act 1996 (introductory tenancies), a disposal falling within subsection (1) above shall be treated as not being a matter of housing management to which section 105 of the Act of 1985 applies (in the case of secure tenants) or section 137 of the Act of 1996 applies (in the case of introductory tenants).

Rents

Rents generally

85

(1) A housing action trust may make such reasonable charges as it may determine for the tenancy or occupation of housing accommodation for the time being held by it.

(2) A housing action trust shall from time to time review rents and make such changes, either of rents generally or of particular rents, as circumstances may require.

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

Increase of rent where tenancy not secure

86

(1) This section applies where a dwelling-house is let by a housing action trust on a periodic tenancy which is not a secure tenancy, or an introductory tenancy.

(2) The rent payable under the tenancy may, without the tenancy being terminated, be increased with effect from the beginning of a rental period by a written notice of increase given by the housing action trust to the tenant.

(3) A notice under subsection (2) above is not effective unless—

(a) it is given at least four weeks before the first day of the rental period, or any earlier day on which the payment of rent in respect of that period falls to be made;

(b) it tells the tenant of his right to terminate the tenancy and of the steps to be taken by him if he wishes to do so; and

(c) it gives him the, dates by which, if (by virtue of subsection (4) below) the increase is not to be effective, a notice to quit must be received by the trust and the tenancy be made to terminate.

(4) Where a notice is given under subsection (2) above specifying an increase in rent with effect from the beginning of a rental period and the tenancy continues into that period, the notice shall not have effect if—

(a) the tenancy is terminated by notice to quit given by the tenant in accordance with the provisions (express or implied) of the tenancy;

(b) the notice to quit is given before the expiry of the period of two weeks beginning on the day following the date on which the notice of increase is given, or before the expiry of such longer period as may be allowed by the notice of increase; and

(c) the date on which the tenancy is made to terminate is not later than the earliest day on which the tenancy could be terminated by a notice to quit given by the tenant on the last day of that rental period.

(5) In this section “rental period” means a period in respect of which a payment of rent falls to be made.

Agency and dissolution

Agency agreements

87

(1) With the approval of the Secretary of State, a housing action trust may enter into an agreement with another person whereby, in relation to any housing accommodation or other land held by the trust which is specified in the agreement, that other person shall exercise, as agent of the trust, such of the functions of the trust as are so specified.

(2) An agreement under subsection (1) above shall set out the terms on which the functions of the housing action trust are exercisable by the person who, under the agreement, is the agent of the trust (in this Part of this Act referred to as “the agent”).

(3) Where the agent is a body or association, an agreement under subsection (1) above may provide that the functions of the agent under the agreement may be performed by a committee or sub-committee, or by an officer, of the body or association.

(4) The approval of the Secretary of State under subsection (1) above may be given unconditionally or subject to conditions.

(5) References in this section to the functions of a housing action trust in relation to housing accommodation or other land include—

(a) functions conferred by any statutory provision, and

(b) the powers and duties of the trust as holder of an estate or interest in the housing accommodation or land in question.

Dissolution of housing action trust

88

(1) A housing action trust shall use its best endeavours to secure that its objects are achieved as soon as practicable.

(2) Where it appears to a trust that its objects have been substantially achieved, it shall—

(a) so far as practicable, dispose or arrange to dispose of any remaining property, rights or liabilities of the trust in accordance with the preceding provisions of this Part of this Act; and

(b) submit proposals to the Secretary of State for—

(i) the dissolution of the trust;

(ii) the disposal to any person of any remaining property, rights or liabilities of the trust which it has not been able to dispose of or arrange to dispose of under paragraph (a) above;and

(iii) the transfer of any function exercisable by the trust to another person (including, where appropriate, a person with whom the trust has entered into an agreement under section 87 above).

(3) The Secretary of State may by order provide for the dissolution of a housing action trust and for any such disposal or transfer as is mentioned in subsection (2)(b) above, whether by way of giving effect (with or without modifications) to any proposals submitted to him under subsection (2) above or otherwise.

(4) Any order under this section—

(a) where it provides for any such disposal or transfer as is mentioned in subsection (2)(b) above, may be on such terms, including financial terms, as the Secretary of State thinks fit and may create or impose such new rights or liabilities in respect of what is transferred as appear to him to be necessary or expedient;

(aa) where it provides for any such disposal or transfer as is mentioned in subsection (2)(b) above, may contain provisions—

(i) establishing new bodies corporate to receive the disposal or transfer; or

(ii) amending, repealing or otherwise modifying any enactment for the purpose of enabling any body established under any enactment to receive the disposal or transfer;

(b) may contain such supplementary and transitional provisions as the Secretary of State thinks necessary or expedient, including provisions amending , repealing or otherwise modifying any enactment; and

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

(5) In this section “enactment” includes any instrument made under any enactment.

Miscellaneous and general

Supply of goods and services

89

(1) A housing action trust and an urban development corporation established by an order under section 135 of the Local Govemment, Planning and Land Act 1980, or a housing action trust and a Mayoral development corporation, may enter into any agreement with each other for all or any of the purposes set out in section 1(1) of the Local Authorities (Goods and Services) Act 1970, as if they were local authorities within the meaning of section I of that Act.

(2) Without prejudice to subsection (1) above, in section 1(4) of the Local Authorities (Goods and Services) Act 1970 (supply of goods and services by local authorities to public bodies), after the words “ “public body” means any local authority” there shall be inserted “housing action trust established under Part III of the Housing Act 1988”.

Information

90

(1) If required to do so by notice in writing given by the Secretary of State for any of the purposes mentioned in subsection (3) below, a local authority,—

(a) at such time and place as may be specified in the notice, shall produce any document; or

(b) within such period as may be so specified, or such longer period as the Secretary of State may allow, shall furnish a copy of any document or supply any information;

being a document, copy or information of a description specified in the notice.

(2) Where notice is given to a local authority under subsection (1) above, any officer of the authority—

(a) who has the custody or control of any document to which the notice relates, or

(b) who is in a position to give information to which the notice relates,

shall take all reasonable steps to ensure that the notice is complied with.

(3) The purposes referred to in subsection (1) above are—

(a) determining whether the Secretary of State should make a designation order in respect of any area;

(b) where a designation order is to be or has been made, detemining whether, and to what extent, he should exercise any of his other powers under this Part of this Act; and

(4) Without prejudice to the generality of subsection (1) above, among the information which may be required by a notice under that subsection is information with respect to the interests in, and the occupation of, land held by a local authority and, in particular, information with respect to any matter entered in a register kept under the Land Registration Act 2002 or the Land Charges Act 1972.

(5) To any extent to which, apart from this subsection, he would not be able to do so, the Secretary of State may use, for any of the purposes mentioned in subsection (3) above, any infor*mation obtained by him under, or in connection with his functions under, the Housing Act 1985 or any other enactment.

(6) If the Secretary of State considers it necessary or desirable to do so in order the better to enable a housing action trust to carry out its functions, he may disclose to the trust any information originally obtained by him for a purpose falling within paragraph (a) or paragraph (b) of subsection (3) above as well as information obtained for the purpose referred to in paragraph (c) of that subsection.

(7) In this section “local authority” has the same meaning as in section 74 above.

Service of notices

91

(1) This section has effect in relation to any notice required or notices. authorised by this Part of this Act to be served on any person by a housing action trust.

(2) Any such notice may be served on the person in question either by delivering it to him, or by leaving it at his proper address, or by sending it by post to him at that address.

(3) Any such notice may—

(a) in the case of a body corporate, be given to or served on the secretary or clerk of that body; and

(b) in the case of a partnership, be given to or served on a partner or a person having the control or management of the partnership business.

(4) For the purposes of this section and of section 7 of the Interpretation Act 1978 (service of documents by post) in its application to this section, the proper address of any person to or on whom a notice is to be given or served shall be his last known address, except that—

(a) in the case of a body corporate or its secretary or clerk, it shall be the address of the registered or principal office of that body; and

(b) in the case of a partnership or a person having the control or management of the partnership business, it shall be that of the principal office of the partnership;

and for the purposes of this subsection the principal office of a company registered outside the United Kingdom or of a partnership carrying on business outside the United Kingdom shall be its principal office within the United Kingdom.

(5) If the person to be given or served with any notice mentioned in subsection (1) above has specified an address within the United Kingdom other than his proper address within the meaning of subsection (4) above as the one at which he or someone on his behalf will accept documents of the same description as that notice, that address shall also be treated for the purposes of this section and section 7 of the Interpretation Act 1978 as his proper address.

(6) If the name or address of any owner, lessee or occupier of land to or PART III on whom any notice mentioned in subsection (1) above is to be served cannot after reasonable inquiry be ascertained, the document may be served either by leaving it in the hands of a person who is or appears to be resident or employed on the land or by leaving it conspicuously affixed to some building or object on the land.

Interpretation of Part III

92

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

(a) “designated area” and “designation order” have the meaning assigned by section 60(6) above;

(b) any reference to a “house” includes a reference to a flat and to any yard, garden, outhouses and appurtenances belonging to the house or flat or usually enjoyed with it;

(ca) “introductory tenancy” has the same meaning as in Chapter I of Part V of the Housing Act 1996 and “introductory tenant” shall be construed accordingly;

(d) “local housing authority” has the same meaning as in the Housing Act 1985 and section 2 of that Act (the district of a local housing authority) has effect in relation to this Part of this Act as it has effect in relation to that Act;

(e) “local authority housing” means housing accommodation provided by a local housing authority (whether in its own district or not);

(f) “secure tenancy” has the meaning assigned by section 79 of the Housing Act 1985 and “secure tenant” shall be construed accordingly; and

(g) “the 1990 Act” means the Town and Country Planning Act 1990

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

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

Part IV

Preliminary

Right conferred by Part IV

93

(1) This Part has effect for the purpose of conferring on any person who has been approved under section 94 below the right to acquire from a public sector landlord, subject to and in accordance with the provisions of this Part—

(a) the fee simple estate in any buildings each of which comprises or contains one or more dwelling-houses which on the relevant date are occupied by qualifying tenants of the public sector landlord; and

(b) the fee simple estate in any other property which is reasonably required for occupation with buildings falling within paragraph (a) above.

(2) The following are public sector landlords for the purposes of this Part, namely—

(a) a local housing authority within the meaning of section 1 of the Housing Act 1985 (in this Part referred to as “the 1985 Act”);

(b) a new town corporation within the meaning of section 4(b) of that Act;

(d) the Development Board for Rural Wales.

(3) Subject to subsection (4) below, a secure tenant of a public sector landlord is a qualifying tenant for the purposes of this Part if (and only if) his secure tenancy is held directly from the landlord as owner of the fee simple estate and, in relation to any acquisition or proposed acquisition under this Part, any reference in the following provisions of this Part to qualifying tenant is a reference only to a qualifying tenant of the public sector landlord from whom the acquisition is or is proposed to be made.

(4) A secure tenant is not a qualifying tenant for the purposes of this Part if—

(a) he is obliged to give up possession of the dwelling-house in pursuance of an order of the court or will be so obliged at a date specified in such an order; or

(b) the circumstances are as set out in any of paragraphs 5 to 11 of Schedule 5 to the 1985 Act (exceptions to right to buy).

(5) In this Part “the relevant date”, in relation to an acquisition or proposed acquisition under this Part, means the date on which is made the application under section 96 below claiming to exercise the right conferred by this Part.

Persons by whom right may be exercised

94

(1) The right conferred by this Part shall not be exercisable except by a person who is for the time being approved by the Corporation under this section; and neither a public sector landlord nor the council of a county nor any other body which the Corporation have reason to believe might not be independent of such a landlord or council may be approved under this section.

(2) For the purposes of subsection (1) above, a body shall not be regarded as independent of a public sector landlord or the council of a county if the body is or appears likely to be under the control of, or subject to influence from, such a landlord or council or particular members or officers of such a landlord or council.

(3) The Corporation shall establish (and may from time to time vary) criteria to be satisfied by a person seeking approval under this section and, without prejudice to subsections (1) and (2) above, in deciding whether to give such approval, the Corporation shall have regard to whether the person satisfies those criteria.

(4) Subject to any directions under section 76 of the Housing Associations Act 1985 (directions by the Secretary of State), an approval under this section—

(a) shall not be given except to a person making an application accompanied by such fee as the Corporation, with the consent of the Secretary of State, may specify; and

(b) may be given to a particular person or to persons of a particular description; and

(c) may apply either in relation to acquisitions generally or in relation to a particular acquisition or acquisitions or in relation to acquisitions made in a particular area or within a particular period; and

(d) may be made conditional upon the person or persons concerned entering into such undertakings as may be specified by the Corporation;

and different fees may be specified under paragraph (a) above for different descriptions of cases.

(5) Subject to any directions under section 76 of the Housing Associations Act 1985, if it appears to the Corporation appropriate to do so (whether by reason of a failure to honour an undertaking or to meet any criteria or for any other reason), the Corporation may revoke an approval given under this section by notice in writing served on the approved person; and where such a notice of revocation is served—

(a) the revocation shall be provisional until the expiry of such period, being not less than 14 days, as may be specified in the notice;

(b) if the Corporation withdraws the notice at any time during the specified period, the approval shall be treated as never having been revoked; and

(c) subject to paragraph (b) above, after the date of service of the notice, the person concerned may not take any steps in connection with a claim to exercise the right conferred by this Part;

but the service of a notice under this subsection shall not affect any transaction completed before the service of the notice.

(6) In the case of a body which has been approved under this section which does not have a registered office (at which documents can be served) and which appears to the Corporation to have ceased to exist or not to operate, notice under subsection (5) above shall be deemed to be served on the body if it is served at the address last known to the Corporation to be the principal place of business of the body.

(7) The Housing Corporation and Housing for Wales shall each maintain a register of persons for the time being approved by it under this section, specifying the extent of the approval given in each case; and each register so maintained shall be open to inspection at the head office of the Corporation by which it is maintained at all reasonable times.

Property excluded from right

95

(1) A building shall be excluded from an acquisition under this Part if on the relevant date—

(a) any part or parts of the building is or are occupied or intended to be occupied otherwise than for residential purposes; and

(b) the internal floor area of that part or those parts (taken together) exceeds 50 per cent. of the internal floor area of the building (taken as a whole);

and for the purposes of this subsection the internal floor area of any common parts or common facilities shall be disregarded.

(2) In the application of subsection (1) above to property falling within section 93(1)(b) above, a building or part of a building which, apart from this subsection, would not be regarded as occupied for residential purposes shall be so regarded if—

(a) it is or is intended to be occupied together with a dwelling-house and used for purposes connected with the occupation of the dwelling-house; or

(b) it is or is intended to be used for the provision of services to a dwelling-house which is comprised in a building falling within section 93(1)(a) above.

(3) A building shall be excluded from an acquisition under this Part if—

(a) it contains two or more dwelling-houses which on the relevant date are occupied by secure tenants who are not qualifying tenants; and

(b) the number of dwelling-houses which on that date are occupied by such tenants exceeds 50 per cent. of the total number of dwelling-houses in the building.

(4) A dwelling-house shall be excluded from an acquisition under this Part if it is a house and it is occupied on the relevant date by—

(a) a secure tenant who is precluded from being a qualifying tenant by section 93(4)(b) above; or

(b) a tenant who is not a secure tenant.

(5) A building or other property shall be excluded from an acquisition under this Part if—

(a) it was specified in some other application made under section 96 below made before the relevant date; and

(b) that other application has not been disposed of.

(6) Except to the extent that it comprises or is let together with a dwelling-house, property shall be excluded from an acquisition under this Part if it is land held—

(a) for the purposes of section 164 of the Public Health Act 1875 (pleasure grounds); or

(b) in accordance with section 10 of the Open Spaces Act 1906 (duty of local authority to maintain open spaces and burial grounds).

(7) The Secretary of State may by order substitute for the percentage for the time being specified in subsection (1)(b) above such other percentage as is specified in the order.

Initial procedures

Application to exercise right

96

(1) An application claiming to exercise the right conferred by this Part—

(a) shall be made in the prescribed form to the public sector landlord concerned; and

(b) shall specify and be accompanied by a plan which shows—

(i) the buildings proposed to be acquired by virtue of paragraph (a) of subsection (1) of section 93 above; and

(ii) the property proposed to be acquired by virtue of paragraph (b) of that subsection.

(2) Where an application claiming to exercise the right conferred by this Part specifies, as a building proposed to be acquired by virtue of section 93(1)(a) above, a building containing a dwelling-house which is subject to an approved co-operative management agreement, the application—

(a) shall specify all the buildings which contain dwelling-houses subject to the agreement and in which the public sector landlord has the fee simple estate; and

(b) shall not specify (by virtue of paragraph (a) or paragraph (b) of subsection (1) of section 93 above) any building which contains dwelling-houses if none of them is subject to the agreement.

(3) For the purposes of subsection (2) above, an approved co-operative management agreement is an agreement—

(a) which is made with the approval of the Secretary of State under section 27 of the Housing Act 1985, either as originally enacted or as substituted by section 10 of the Housing and Planning Act 1986; and

(b) under which the body exercising functions of the local housing authority is a society, company or body of trustees approved by the Secretary of State for the purposes of subsection (2) above.

Information etc. for applicant

97

(1) Within four weeks of the relevant date, the landlord shall serve on the applicant a notice specifying—

(a) the name and address of every tenant or licensee of a dwelling-house which the buildings proposed to be acquired by virtue of section 93(1)(a) above comprise or contain; and

(b) the general nature of his tenancy or licence.

(2) As from four weeks after that date, the applicant shall have the following rights, namely—

(a) a right of access, at any reasonable time and on giving reasonable notice, to any property proposed to be acquired which is not subject to a tenancy;

(b) a right, on giving reasonable notice, to be provided with a list of any documents to which subsection (3) below applies;

(c) a right to inspect, at any reasonable time and on giving reasonable notice, any documents to which that subsection applies; and

(d) a right, on payment of a reasonable fee, to be provided with a copy of any documents inspected under paragraph (c) above.

(3) This subsection applies to any document in the possession of the landlord—

(a) sight of which is reasonably required for the purpose of pursuing the application; and

(b) which, on a proposed sale by a willing vendor to a willing purchaser of the property proposed to be acquired, the landlord, as vendor, would be expected to make available to the purchaser (whether at or before contract or completion).

(4) In this section “document” has the same meaning as in Part I of the Civil Evidence Act 1968.

Determination of property to be included

98

(1) Within twelve weeks of the relevant date, the landlord shall serve on the applicant a notice stating—

(a) which (if any) of the buildings proposed to be acquired by virtue of paragraph (a) of subsection (1) of section 93 above should be excluded from the acquisition on the ground that they do not comprise or contain one or more dwelling-houses which on the relevant date were occupied by qualifying tenants;

(b) which (if any) property proposed to be acquired by virtue of paragraph (b) of that subsection should be excluded from the acquisition on the ground that it is not reasonably required for occupation with any of the buildings proposed to be acquired by virtue of paragraph (a) of that subsection or that it is reasonably required for occupation with such of those buildings as should be excluded from the acquisition on the ground mentioned in paragraph (a) above;

(c) which (if any) property proposed to be acquired by virtue of either paragraph of that subsection should be excluded from the acquisition on the ground that its inclusion is precluded by section 95 above or that it is reasonably required for occupation with property the inclusion of which is so precluded or that it is a building which is excluded from the acquisition by virtue of section 96(2)(b) above;

(d) which property (if any) the landlord desires to have included in the acquisition on the ground that it cannot otherwise be reasonably managed or maintained;

(e) which rights (if any) the landlord desires to retain over property included in the acquisition on the ground that they are necessary for the proper management or maintenance of land to be retained by the landlord;

(f) the other proposed terms of the conveyance; and

(g) such other particulars as may be prescribed.

(2) A building which is excluded from an acquisition by virtue of section 95 or section 96(2)(b) above may not be included by virtue of subsection (1)(d) above.

(3) Where a notice under subsection (1) above specifies property falling within paragraph (d) of that subsection, the applicant shall have a right of access, at any reasonable time and on giving reasonable notice, to any of that property which is not subject to a tenancy.

(4) Within four weeks of service of the notice under subsection (1) above, the applicant shall notify the landlord in writing of any matters stated in that notice which he does not accept.

(5) Any dispute as to any matters stated in a notice under subsection (1) above shall be determined—

(a) by a person agreed to by the parties or, in default of agreement, appointed by the Secretary of State; and

(b) in accordance with such provisions (including provisions as to costs) as may be prescribed.

(6) In relation to a proposed acquisition under this Part, any reference in the following provisions of this Part to the property to which the acquisition relates is a reference to the whole of the property which, in accordance with the provisions of this section, is to be acquired, disregarding the effect of any exclusion by virtue of regulations under section 100 below.

Determination of purchase price

99

(1) Within eight weeks of—

(a) if there is no dispute as to any of the matters stated in the notice under section 98(1) above, the service of that notice, or

(b) if there is such a dispute, the determination of the dispute,

the landlord shall serve on the applicant a notice specifying—

(i) the price which, disregarding sections 100(3) and 103(1) below, it considers should be payable for the property to be acquired or, as the case may be, the disposal cost which, disregarding section 100(3) below, is attributable to the property to be acquired by virtue of subsection (3) below; and

(ii) if the property to which the acquisition relates includes dwelling-houses which are houses as well as other property, an amount which the landlord considers to be the amount attributable to houses as defined in section 100(4)(b) below.

(2) Subject to sections 100(3) and 103(1) below, the price payable for the property to be acquired shall be the price which on the relevant date the property to which the acquisition relates would realise if sold on the open market by a willing vendor on the following assumptions, namely—

(a) that it was sold subject to any tenancies subsisting on that date but otherwise with vacant possession;

(b) that it was to be conveyed with the same rights and subject to the same burdens as it would be in pursuance of the right of acquisition;

(c) that the only bidders in the market were persons who on that date either were approved under section 94 above or fulfilled the criteria for approval established under subsection (3) of that section;

(d) that the applicant would, within a reasonable period, carry out such works as are reasonably necessary to put the buildings included in the acquisition into the state of repair required by the landlord’s repairing obligations; and

(e) that the applicant would not be required to grant any leases in pursuance of regulations made under section 100 below.

(3) Subject to section 100(3) below, there is a disposal cost attributable to the property to be acquired if, having regard to the expense likely to be incurred in carrying out the works referred to in paragraph (d) of subsection (2) above, the property to which the acquisition relates would not realise any price in the circumstances specified in that subsection; and that disposal cost is the amount by which the expense likely to be so incurred exceeds what would be determined under that subsection as the price if those works had already been carried out.

(4) The notice under subsection (1) above shall contain sufficient information to enable the applicant to see how the price or, as the case may be, disposal cost and any amount referred to in sub-paragraphs (i) and (ii) of subsection (1) above were arrived at and, if the property to which the acquisition relates consists of or includes any dwelling-houses which are houses, the notice shall also contain a list of the addresses of the houses together with the number of habitable rooms in each of them.

(5) Within four weeks of service of the notice under subsection (1) above, the applicant shall notify the landlord in writing of any matters stated in that notice which he does not accept.

(6) Any dispute as to any matters stated in a notice under subsection (1) above shall be determined by the district valuer, in accordance with such provisions (including provisions as to costs) as may be prescribed.

(7) In a notice under subsection (1) above or by a separate notice given to the applicant not later than seven days after the date of a determination under subsection (6) above, the landlord may notify the applicant that if there is a disposal cost which is such that, in accordance with regulations under section 104(2A) below, it may be paid by instalments, the landlord intends to pay that cost by instalments.

(8) Where the landlord notifies the applicant as mentioned in subsection (7) above, he shall furnish to the applicant, in such form and certified in such manner as may be prescribed, such information as may be prescribed in order to enable the applicant to consider the application of the regulations to the disposal cost and to assess the likely effect of the payment by instalments.

Special cases

Tenants continuing as tenants of landlord

100

(1) The Secretary of State shall make regulations imposing the following requirements in relation to any acquisition under this Part, namely—

(a) that any dwelling-house which is a house and is occupied by a tenant to whom subsection (2) below applies shall be excluded from the acquisition; and

(b) that a lease of any dwelling-house which is a flat and is occupied by a tenant to whom subsection (2) below applies or by a tenant of a description prescribed for the purposes of this paragraph shall be granted by the applicant to the landlord immediately after the acquisition.

(2) This subsection applies—

(a) to any qualifying tenant whose tenancy commenced before the relevant date, and

(b) to any tenant of a description prescribed for the purposes of this subsection,

being, in either case, a tenant who, before the end of the period mentioned in section 102 below and in response to the consultation under that section, gives notice as mentioned in section 103(2) below of his wish to continue as a tenant of the landlord.

(3) If, by virtue of regulations under this section, any houses fall to be excluded from the acquisition—

(a) there shall be determined the sum (in this subsection referred to as “the sum referable to excluded houses”) which represents that proportion of the amount attributable to houses which the number of habitable rooms in the houses which fall to be so excluded bears to the number of habitable rooms in all of the houses comprised in the property to which the acquisition relates; and

(b) if the amount attributable to houses is a price, the sum referable to excluded houses shall be applied as a deduction from any price payable for the property to be acquired, as determined under section 99 above, and as an increase in any disposal cost attributable to that property; and

(c) if the amount attributable to houses is a disposal cost, the sum referable to excluded houses shall be applied as an increase in any price payable for the property to be acquired, as determined under section 99 above, and as a deduction from any disposal cost attributable to that property.

(4) In section 99(1)(ii) and subsection (3) above, “the amount attributable to houses”, in relation to an acquisition under this Part, means,—

(a) if the property to which the acquisition relates consists of dwelling-houses which are houses and no other property, the price or, as the case may be, disposal cost specified in accordance with section 99(1)(i) above; and

(b) in any other case, the price or disposal cost which, under subsection (2) or subsection (3) of section 99 above, would be payable for, or attributable to, the property to which the acquisition relates if there were excluded from that property all property other than dwelling-houses which are houses.

Tenancies granted after relevant date

101

(1) Subject to subsection (4)(a) below, this section applies to any tenancy of or licence to occupy any part of the property proposed to be acquired, being a tenancy or licence commencing,—

(a) in the case of property falling within paragraph (d) of subsection (1) of section 98 above, after the date of the notice under that subsection;

(b) in any other case, after the relevant date.

(2) Notwithstanding anything in any enactment, a tenancy or licence to which this section applies—

(a) shall not be a secure tenancy, and

(b) shall not be capable of becoming an assured tenancy or an assured agricultural occupancy,

and neither Part II of the Landlord and Tenant Act 1954 (business tenancies) nor Parts III to VI of the Agricultural Holdings Act 1986 (tenancies of agricultural holdings, including market gardens and smallholdings) nor the Agricultural Tenancies Act 1995 (farm business tenancies) shall apply to a tenancy or licence to which this section applies.

(3) Every tenancy or licence to which this section applies shall be determinable by the landlord or licensor by giving not less than four weeks notice to quit expiring at any time during the tenancy; and this subsection has effect whether or not the tenancy or licence is periodic and, if it is periodic, regardless of the length of the period.

(4) The Secretary of State may make regulations—

(a) excluding from the tenancies and licences to which this section applies a tenancy or licence of a description specified in the regulations;

(b) requiring the public sector landlord to give notice to the applicant of the grant of any tenancy or licence to which this section applies;

(c) requiring the public sector landlord to give notice of the effect of this section to any tenant or licensee under a tenancy or licence to which this section applies;

(d) for securing that, on the transfer of the property included in the acquisition to the applicant, the public sector landlord gives vacant possession of any property subject to a tenancy or licence to which this section applies;

(e) that, in so far as vacant possession is not so given, any costs or expenses attributable to the recovery of vacant possession by the applicant and any losses consequent upon the failure of the public sector landlord to give vacant possession are recoverable by the applicant from that landlord as a simple contract debt; and

(f) making provision for and in connection with the disapplication of this section in any case where the applicant does not proceed with the acquisition.

Final procedures

Consultations by applicant

102

(1) During such period as may be prescribed beginning with,—

(a) if there is a determination by the district valuer under section 99 above, notification to the applicant of that determination,

(b) if there is no such determination, service of the landlord’s notice under that section,

the applicant shall consult, in accordance with such provisions as may be prescribed, tenants to whom this section applies.

(2) This section applies—

(a) to any qualifying tenant, or tenant under a long tenancy, who on the relevant date occupied a dwelling-house proposed to be included in the acquisition and continued to occupy the dwelling during the period referred to in subsection (1) above; and

(b) to any tenant of a description prescribed for the purposes of section 100(2) above; and

Notice by applicant of intention to proceed

103

(1) Subject to subsection (2) below, the applicant may, within two weeks of the end of the period mentioned in section 102 above, serve on the landlord notice of his intention to proceed with the acquisition; and in that notice the applicant, in such circumstances as may be prescribed, may inform the landlord—

(a) that he wishes to enter into a prescribed covenant to make payments to the landlord on the occasion of any prescribed disposal (occurring after the date of the acquisition) of a dwelling-house comprised in the property to be acquired; and

(b) that he requires the value of that covenant to be taken into account in reducing the price which would otherwise be payable for the property to be acquired.

(2) The applicant shall not be entitled to serve a notice under subsection (1) above if, in response to the consultation under section 102 above,—

(a) less than 50 per cent. of the tenants to whom that section applies have given notice of their wishes in such manner as may be prescribed; or

(b) the number of tenants to whom that section applies who have given notice in that manner of their wish to continue as tenants of the landlord exceeds 50 per cent. of the total number of tenants to whom that section applies.

(3) In any case where a tenancy is held by two or more persons jointly, those persons shall be regarded as a single tenant for the purposes of subsection (2) above and, accordingly, any notice given in response to the consultation under section 102 above shall be of no effect for the purposes of subsection (2) above unless it is given by or on behalf of all the joint tenants.

(4) A notice under subsection (1) above shall contain—

(a) a list of the names and addresses of tenants to whom section 102 above applies (if any) who have given notice as mentioned in subsection (2)(b) above;

(b) a list of the houses (if any) which are, by virtue of regulations under section 100 above, to be excluded from the acquisition;

(c) a list of flats (if any) of which the applicant is required, by virtue of such regulations, to grant leases to the landlord and a statement of the proposed terms of those leases;

(d) such information as may be necessary to show how the lists mentioned in paragraphs (a), (b) and (c) above were established; . . .

(e) the price payable for the property to be acquired (disregarding any reduction by virtue of such a covenant as is referred to in subsection (1) above) or, as the case may be, the disposal cost attributable to that property and

(f) if there is a disposal cost attributable to that property and the landlord has notified the applicant as mentioned in section 99(7) above of his intention to pay the disposal cost by instalments, either a statement of the basis on which, in accordance with regulations under section 104(2A) below, the disposal cost is to be paid by instalments or a statement that the disposal cost is not such that those regulations permit it to be paid by instalments.

(5) Within two weeks of service of the notice under subsection (1) above, the landlord shall notify the applicant in writing of any matters stated in that notice which it does not accept.

(6) Where a notice has been served under subsection (1) above, every tenant to whom section 102 above applies and who has not given notice as mentioned in subsection (2)(b) above shall be taken to have accepted, and to have given consideration for, any offer which—

(a) relates to the terms on which, after the acquisition, he is to occupy the dwelling-house occupied by him on the relevant date;

(b) was made to him by the applicant either in the course of the consultation required by subsection (1) of section 102 above or otherwise before the end of the period referred to in that subsection; and

(7) Regulations prescribing any of the matters referred to in subsection (1) above shall also make provision with respect to the determination of the amounts which are to be payable on the occasion of prescribed disposals; and the amount of any reduction in the price payable for the property to be acquired which is attributable to such a covenant as is referred to in that subsection shall be determined by the district valuer.

Duty to complete and consequences of completion

104

(1) Where the applicant has served on the landlord a notice under section 103(1) above, then, as soon as any dispute as to any matters stated in that notice has been determined and, where appropriate, any determination has been made under section 103(7) above—

(a) the landlord shall make to the applicant a grant of the property included in the acquisition for an estate in fee simple absolute, but subject to any rights to be retained by the landlord; and

(b) the applicant shall grant to the landlord leases of any flats of which he is required to grant leases by regulations under section 100 above.

(2) The terms of any grant or lease under subsection (1) above shall comply with such requirements as may be prescribed.

(2A) In such cases as may be prescribed and where the applicant has been notified as mentioned in section 99(7) above, a disposal cost may be paid by instalments of such amounts (which may include interest) and payable at such times and over such period as may be prescribed.

(3) The duties imposed by the preceding provisions of this section are enforceable by injunction.

(4) Notwithstanding anything in section 141 of the Law of Property Act 1925 (rent and benefit of lessee’s covenants to run with the reversion) any rent or other sum which—

(a) arises under a tenancy of any property included in the acquisition, and

(b) falls due before the date of the grant under subsection (1) above,

shall continue to be recoverable by the landlord to the exclusion of the applicant and of any other person in whom the reversion on the tenancy may become vested.

(5) Without prejudice to the application of Part IV of the Local Government and Housing Act 1989 (revenue accounts and capital finance of local authorities) to the price received by the landlord on the disposal (as mentioned in subsection (1)(a) above) of the property included in the acquisition, where there is a disposal cost attributable to that property any payments made by the landlord in respect of that cost shall be expenditure for capital purposes for the purposes of that Part.

Subsequent disposals

105

(1) A person who acquires any property under this Part (in this section referred to as “the new landlord”) shall not dispose of it except with the consent of the Secretary of State; but nothing in this subsection shall apply in relation to an exempt disposal, as defined in subsection (7) below.

(2) Where an estate or interest in property acquired by the new landlord has been mortgaged or charged, the prohibition in subsection (1) above on disposal of the property without consent applies also to a disposal by the mortgagee or chargee in exercise of a power of sale or leasing, whether or not the disposal is in the name of the new landlord.

(3) In any case where—

(a) by operation of law or by virtue of an order of a court property which has been acquired by the new landlord passes or is transferred to another person, and

(b) that passing or transfer does not constitute a disposal for which consent is required under subsection (1) above,

this section (including, where there is more than one such passing or transfer, this subsection) shall apply as if the other person to whom the property passes or is transferred were the new landlord.

(4) Any consent for the purposes of subsection (1) above may be given either unconditionally or subject to conditions; but, before giving any such consent, the Secretary of State—

(a) shall satisfy himself that the person who is seeking the consent has taken appropiate steps to consult every tenant of the whole or any part of the property proposed to be disposed of; and

(b) shall have regard to the responses of any such tenants to that consultation

and, without prejudice to the generality of the conditions subject to which consent may be given, a condition may be imposed requiring a payment by the new landlord either to the public sector landlord from whom he or, where subsection (3) above applies, a predecessor of his acquired the property or to such other person as may be specified in the consent.

(5) If, apart from subsection (6) below, the consent of the Housing Corporation or Housing for Wales would be required under section 9 of the Housing Associations Act 1985 (control of dispositions of land by housing associations) for a disposal to which subsection (1) above applies, the Secretary of State shall consult that body before giving his consent in respect of that disposal for the purposes of that subsection.

(6) No consent shall be required under the said section 9 for any disposal in respect of which consent is given in accordance with subsection (5) above.

(7) In this section an “exempt disposal” means—

(a) the grant of a lease pursuant to such a requirement as is referred to in section 100(1)(b) above;

(b) the disposal of a dwelling-house to a person exercising the right to buy it under Part V of the 1985 Act;

(d) the disposal of an easement or rentcharge;

(e) the disposal of an interest by way of security for a loan;

(f) the grant of a secure tenancy or what would be a secure tenancy but for any of paragraphs 2 to 12 of Schedule 1 to the 1985 Act;

(g) the grant of an assured tenancy, within the meaning of Part I of this Act, or what would be such a tenancy but for any of paragraphs 4 to 8 of Schedule 1 to this Act; and

(h) the transfer of an interest which is held on trust where the disposal is made in connection with the appointment of a new trustee or in connection with the discharge of any trustee.

(8) In this section references to disposing of property include references to—

(a) granting or disposing of any interest in property;

(b) entering into a contract to dispose of property or to grant or dispose of any such interest; and

Supplemental

Service of information, advice and assistance

106

(1) The Corporation may provide in connection with this Part a service of information, advice and assistance to, and for the benefit of,—

(a) persons who have been approved or are considering applying for approval under section 94 above; and

(b) persons who are tenants of public sector landlords.

(2) The Corporation may make charges for information, advice and assistance provided under this section otherwise than to persons falling within subsection (1)(b) above.

(3) The powers conferred on the Corporation by this section may be exercised by the Housing Corporation and Housing for Wales acting jointly.

Power of Corporation to provide legal assistance to tenants in relation to acquisitions

107

(1) On an application by the tenant of a dwelling-house who is a party or a prospective party to proceedings or prospective proceedings falling within subsection (2) below, the Corporation may give assistance to the tenant if it thinks fit to do so—

(a) on the ground that the case raises a question of principle; or

(b) on the ground that it is unreasonable, having regard to the complexity of the case, or to any other matter, to expect the tenant to deal with it without assistance; or

(2) The proceedings referred to in subsection (1) above are—

(a) proceedings to determine any question arising in relation to an acquisition or proposed acquisition under this Part; and

(b) proceedings to determine any dispute arising after an acquisition under this Part between a transferred tenant of a dwelling-house included in the acquisition and the body by which the acquisition was made;

and for the purposes of paragraph (b) above a tenant of a dwelling-house is a transferred tenant of it if he was the qualifying tenant of it at the time of the acquisition or is the widow or widower of the person who was then the qualifying tenant of it.

(3) Assistance given by the Corporation under this section may include—

(a) giving advice;

(b) procuring or attempting to procure the settlement of the matter in dispute;

(d) arranging for representation by a solicitor or counsel, including such assistance as is usually given by a solicitor or counsel in the steps preliminary or incidental to any proceedings, or in arriving at or giving effect to a compromise to avoid or bring to an end any proceedings; and

(e) any other form of assistance which the Corporation may consider appropriate;

but paragraph (d) above does not affect the law and practice regulating the descriptions of persons who may appear in, conduct, defend and address the court in any proceedings.

(4) In so far as expenses are incurred by the Corporation in providing the tenant with assistance under this section, the recovery of those expenses (as taxed or assessed in such manner as may be prescribed by rules of court) shall constitute a first charge for the benefit of the Corporation—

(a) on any costs which (whether by virtue of a judgment or order of a court or an agreement or otherwise) are payable to the tenant by any other person in respect of the matter in connection with which the assistance was given; and

(b) so far as relates to any costs, on his rights under any compromise or settlement arrived at in connection with that matter to avoid or bring to an end any proceedings;

but subject to any charge under the Legal Aid Act 1988 and to any provision of that Act for payment of any sum to the Legal Aid Board.

108

Schedule 12 to this Act shall have effect with respect to registration of title and related matters arising on acquisitions of property under this Part and disposals of property so acquired.

Public open space etc

109

(1) To the extent that any land held—

(a) for the purposes of section 164 of the Public Health Act 1875 (pleasure grounds), or

(b) in accordance with section 10 of the Open Spaces Act 1906 (duty of local authority to maintain open spaces and burial grounds),

is included in an acquisition under this Part, it shall be deemed to be freed from any trust arising solely by virtue of its being land held in trust for enjoyment by the public in accordance with that section.

(2) Nothing in section 5 of the Green Belt (London and Home Counties) Act 1938 (restrictions on alienation of land by local authorities) applies in relation to a disposal of land included in an acquisition under this Part.

Extension etc. of relevant periods

110

(1) In this section “relevant period” means any period within which anything is required by this Part to be done by either of the parties, that is to say, the applicant and the landlord.

(2) At any time before the end of any relevant period, or any such period as previously extended under this subsection, the other party may, by a written notice served on the party to whom the requirement relates, extend or further extend that period.

(3) Where a notice of revocation of the applicant’s approval is served under subsection (5) of section 94 above and subsequently withdrawn as mentioned in paragraph (b) of that subsection, any relevant period which, apart from this subsection, would have expired before the withdrawal shall be taken to be extended by a period equal to that beginning with the date of the service of the notice of revocation and ending on the date of the withdrawal.

(4) Where—

(a) the applicant is the party to whom the requirement relates, and

(b) the relevant period, or that period as extended under subsection (2) above, expires without his doing what he is required by this Part to do within that period,

his application claiming to exercise the right conferred by this Part shall be deemed to be withdrawn, but without prejudice to his making a further such application.

Power to prescribe forms etc

111

The Secretary of State may by regulations prescribe—

(a) anything which by this Part is to be prescribed; and

(b) the form of any notice, statement or other document which is required or authorised to be used under or for the purposes of this Part.

Orders and regulations

112

(1) Any power of the Secretary of State to make orders or Orders and regulations under this Part shall be exercised by statutory instrument.

(2) A statutory instrument containing any order or regulations under this Part, other than regulations under section III(b) above, shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(3) Orders or regulations under this Part may make different provision for different cases or circumstances or different areas and may contain such incidental, supplemental or transitional provisions as the Secretary of State thinks fit.

Jurisdiction of county court

113

(1) Subject to sections 98(5) and 99(6) above, a county court has jurisdiction—

(a) to entertain any proceedings brought under this Part; and

(b) to determine any question arising under this Part.

(2) The jurisdiction conferred by this section includes jurisdiction to entertain proceedings on any such question as is mentioned in subsection (1) above notwithstanding that no other relief is sought than a declaration.

(3) If a person takes in the High Court proceedings which, by virtue of this section, he could have taken in the county court, he shall not be entitled to recover any more costs of those proceedings than those to which he would have been entitled if the proceedings had been taken in a county court.

(4) In a case falling within subsection (3) above the taxing master shall have the same power of directing on what scale costs are to be allowed, and of allowing any item of costs, as the judge would have had if the proceedings had been taken in a county court.

Interpretation of Part IV

114

(1) In this Part—

“the 1985 Act” means the Housing Act 1985;

“the Corporation” means the Housing Corporation or Housing for Wales but—

(a) an approval given by the Housing Corporation shall not have effect in relation to buildings or other property in Wales; and

(b) an approval given by Housing for Wales shall not have effect in relation to buildings or other property in England;

“qualifying tenant” shall be construed in accordance with subsections (3) and (4) of section 93 above;

“prescribed” means prescribed by regulations made by the Secretary of State;

“property” means land with or without buildings;

“public sector landlord” has the meaning given by section 93(2) above;

“the relevant date” has the meaning given by section 93(5) above; and

“habitable room”, in relation to a house, means a room used, or intended for use, as a bedroom, living room, dining room or kitchen.

(2) Subject to subsection (1) above, in this Part expressions which are also used in Part V of the 1985 Act have the same meaning as in that Part.

Part V — Miscellaneous and General

Leases

Premiums on long leases

115

(1) With respect to —

(a) any premium received or required to be paid after the commencement of this Act, or

(b) any loan required to be made after that commencement,

section 127 of the Rent Act 1977 (allowable premiums in relation to certain long tenancies) shall have effect subject to the amendments in subsections (2) and (3) below.

(2) For subsections (2) and (3) there shall be substituted the following subsections—

(2) The conditions mentioned in subsection (1)(a) above are— (a) that the landlord has no power to determine the tenancy at any time within twenty years beginning on the date when it was granted; and (b) that the terms of the tenancy do not inhibit both the assignment and the underletting of the whole of the premises comprised in the tenancy; but for the purpose of paragraph (b) above there shall be disregarded any term of the tenancy which inhibits assignment and underletting only during a period which is or falls within the final seven years of the term for which the tenancy was granted. (3) The reference in subsection (2) above to a power of the landlord to determine a tenancy does not include a reference to a power of re-entry or forfeiture for breach of any term or condition of the tenancy.

(3) Subsections (3C) and (3D) shall be omitted and in subsection (5) for “(2)(c)” there shall be substituted “(2)(b)”.

(4) Expressions used in subsection (1) above have the same meaning as in Part IX of the Rent Act 1977.

Repairing obligations in short leases

116

(1) In section II of the Landlord and Tenant Act 1985 (repairing obligations in short leases) after subsection (1) there shall be inserted the following subsections—

(1A) If a lease to which this section applies is a lease of a dwelling- house which forms part only of a building, then, subject to subsection (IB), the covenant implied by subsection (1) shall have effect as if— (a) the reference in paragraph (a) of that subsection to the dwelling-house included a reference to any part of the building in which the lessor has an estate or interest; and (b) any reference in paragraphs (b) and (c) of that subsection to an installation in the dweiling-house included a reference to an installation which, directly or indirectly, serves the dwelling-house and which either— (i) forms part of any part of a building in which the lessor has an estate or interest; or (ii) is owned by the lessor or under his control. (1B) Nothing in subsection (IA) shall be construed as requiring the lessor to carry out any works or repairs unless the disrepair (or failure to maintain in working order) is such as to affect the lessee’s enjoyment of the dwelling-house or of any common parts, as defined in section 60(1) of the Landlord and Tenant Act 1987, which the lessee, as such, is entitled to use.

(2) After subsection (3) of that section there shall be inserted the following subsection—

(3A) In any case where— (a) the lessor’s repairing covenant has effect as mentioned in subsection (IA), and (b) in order to comply with the covenant the lessor needs to carry out works or repairs otherwise than in, or to an installation in, the dwelling-house, and (c) the lessor does not have a sufficient right in the part of the building or the installation concerned to enable him to carry out the required works or repairs, then, in any proceedings relating to a failure to comply with the lessor’s repairing covenant, so far as it requires the lessor to carry out the works or repairs in question, it shall be a defence for the lessor to prove that he used all reasonable endeavours to obtain, but was unable to obtain, such rights as would be adequate to enable him to carry out the works or repairs.

(3) At the end of section 14(4) of the said Act of 1985 (which excludes from section II certain leases granted to various bodies) there shall be added—

a housing action trust established under Part 111 of the Housing Act 1988

(4) The amendments made by this section do not have effect with respect to—-

(a) a lease entered into before the commencement of this Act; or

(b) a lease entered into pursuant to a contract made before the commencement of this Act.

Certain tenancies excluded from bankrupt’s estate

117

(1) In section 283 of the Insolvency Act 1986 (definition of bankrupt’s estate) at the end of subsection (3) (property excluded from the estate) there shall be inserted the following subsection—

(3A) Subject to section 308A in Chapter IV, subsection (1) does not apply to— (a) a tenancy which is an assured tenancy or an assured agricultural occupancy, within the meaning of Part I of the Housing Act 1988, and the terms of which inhibit an assignment as mentioned in section 127(5) of the Rent Act 1977, or (b) a protected tenancy, within the meaning of the Rent Act 1977, in respect of which, by virtue of any provision of Part IX of that Act, no premium can lawfully be required as a condition of assignment, or (c) a tenancy of a dwelling-house by virtue of which the bankrupt is, within the meaning of the Rent (Agriculture) Act 1976, a protected occupier of the dwelling-house, and the terms of which inhibit an assignment as mentioned in section 127(5) of the Rent Act 1977, or (d) a secure tenancy, within the meaning of Part IV of the Housing Act 1985, which is not capable of being assigned, except in the cases mentioned in section 91(3) of that Act.

(2) After section 308 of that Act there shall be inserted the following section—

(308A) Upon the service on the bankrupt by the trustee of a notice in writing under this section, any tenancy— (a) which is excluded by virtue of section 283(3A) from the bankrupt’s estate, and (b) to which the notice relates, vests in the trustee as part of the bankrupt’s estate; and, except against a purchaser in good faith, for value and without notice of the bankruptcy, the trustee’s title to that tenancy has relation back to the commencement of the bankruptcy.

(3) In section 309 of that Act (time-limit for certain notices) in subsection (1)(b)—

(a) after the words “section 308” there shall be inserted “or section 308A”; and

(b) after the words “the property” there shall be inserted “or tenancy”.

(4) In section 315 of that Act (disclaimer (general power)), in subsection (4) after the words “reasonable replacement value)” there shall be inserted “or 308A”.

Certain tenancies excluded from debtor’s estate: Scotland

118

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Amendment of Landlord and tenent Act 1987

119

The Landlord and Tenant Act 1987 shall have effect subject to the amendments in Schedule 13 to this Act.

Rent Officers

Appointment etc. of rent officers

120

Section 63 of the Rent Act 1977 (schemes for the appointment of rent officers) shall have effect subject to the amendments in Part I of Schedule 14 to this Act and after section 64 of that Act there shall be inserted the sections set out in Part II of that Schedule.

Rent officers: additional functions relating to housing benefit etc

121

Right to buy etc. and grants to obtain accommodation

Variation of cost floor for right to buy discount

122

(1) Section 131 of the Housing Act 1985 (limits on amount of discount in relation to the right to buy) shall be amended in accordance with subsections (2) and (3) below.

(2) In subsection (1) (the cost floor provision) for paragraph (a) there shall be substituted the following paragraph—

(a) is to be treated as incurred at or after the beginning of that period of account of the landlord in which falls the date which is eight years, or such other period of time as may be specified in an order made by the Secretary of State, earlier than the relevant time, and

(3) After subsection (1) there shall be inserted the following subsection—

(1A) In subsection (1)(a) above “period of account”, in relation to any costs, means the period for which the landlord made up those of its accounts in which account is taken of those costs.

(4) This section has effect in relation to the determination of discount in any case where—

(a) the relevant time falls on or after the date on which this section comes into force; or

(b) paragraph (a) above does not apply but the landlord has not before that date served on the tenant a notice complying with section 125 of the Housing Act 1985; or

(c) the tenant has before that date claimed to exercise the right to be granted a shared ownership lease but the landlord has not before that date served on the tenant a notice complying with section 147 of that Act; or

(d) the tenant has before that date served a notice under paragraph I of Schedule 8 to that Act (claiming to exercise the right to acquire an additional share under a shared ownership lease but the landlord has not before that date served a notice under sub- paragraph (3) of that paragraph;

and, for the purposes of this subsection, no account shall be taken of any steps taken under section 177 of that Act (amendment or withdrawal and re-service of notice to correct mistakes).

(5) Expressions used in subsection (4) above have the same meaning as in Part V of the Housing Act 1985.

Amendment of Schedule 5 to Housing Act 1985

123

(1) Schedule 5 of the Housing Act 1985 (exceptions to the right to buy) shall be amended in accordance with this section.

(2) Paragraphs 6 and 8 shall be omitted. Housing Act 1985.

(3) The repeal by this Act of paragraphs 6 and 8 of Schedule 5 shall not affect the operation of either of those paragraphs in any case where the tenant’s notice claiming to exercise the right to buy was served before the repeal comes into force unless, at that time, no notice in response had been served under section 124 of the Housing Act 1985 (landlord’s notice admitting or denying right to buy).

(4) For the purposes of subsection (3) above, no account shall be taken of any steps taken under section 177 of the Housing Act 1985 (amendment or withdrawal and re-service of notice to correct mistakes).

Right to buy: tenant’s sanction for landlord’s delays

124

After section 153 of the Housing Act 1985 there shall be inserted the following sections—

(153A) (1) Where a secure tenant has claimed to exercise the right to buy, he may serve on his landlord a notice (in this section referred to as an “initial notice of delay”) in any of the following cases, namely,— (a) where the landlord has failed to serve a notice under section 124 within the period appropriate under subsection (2) of that section; (b) where the tenant’s right to buy has been established and the landlord has failed to serve a notice under section 125 within the period appropriate under subsection (1) of that section; (c) where the tenant has claimed to exercise the right to be granted a shared ownership lease and the landlord has failed to serve a notice under section 146 within the period of the four weeks required by that section; (d) where the tenant’s right to a shared ownership lease has been established and the landlord has failed to serve a notice under section 147 within the period of the eight weeks required by that section; or (e) where the tenant considers that delays on the part of the landlord are preventing him from exercising expeditiously his right to buy or his right to be granted a shared ownership lease; and where an initial notice of delay specifies any of the cases in paragraphs (a) to (d), any reference in this section or section 153B to the default date is a reference to the end of the period referred to in the paragraph in question or, if it is later, the day appointed for the coming into force of section 124 of the Housing Act 1988. (2) An initial notice of delay— (a) shall specify the most recent action of which the tenant is aware which has been taken by the landlord pursuant to this Part of this Act; and (b) shall specify a period (in this section referred to as “the response period”), not being less than one month, beginning on the date of service of the notice, within which the. service by the landlord of a counter notice under subsection (3) will have the effect of cancelling the initial notice of delay. (3) Within the response period specified in an initial notice of delay or at any time thereafter, the landlord may serve on the tenant a counter notice in either of the following circumstances— (a) if the initial notice specifies any of the cases in paragraphs (a) to (d) of subsection (1) and the landlord has served, or is serving together with the counter notice, the required notice under section 124, section 125, section 146 or section 147, as the case may be; or (b) if the initial notice specifies the case in subsection (1)(e) and there is no action under this Part which, at the beginning of the response period, it was for the landlord to take in order to allow the tenant expeditiously to exercise his right to buy or his right to be granted a shared ownership lease and which remains to be taken at the time of service of the counter notice. (4) A counter notice under subsection (3) shall specify the circumstances by virtue of which it is served. (5) At any time when— (a) the response period specified in an initial notice of delay has expired, and (b) the landlord has not served a counter notice under subsection (3), the tenant may serve on the landlord a notice (in this section and section153B referred to as an “operative notice of delay”) which shall state that section 153B will apply to payments of rent made by the tenant on or after the default date or, if the initial notice of delay specified the case in subsection (1)(e), the date of the service of the notice. (6) If, after a tenant has served an initial notice of delay, a counter notice has been served under subsection (3), then, whether or not the tenant has also served an operative notice of delay, if any of the cases in subsection (1) again arises, the tenant may serve a further initial notice of delay and the provisions of this section shall apply again accordingly. (153B) (1) Where a secure tenant has served on his landlord an operative notice of delay, this section applies to any payment of rent which is made on or after the default date or, as the case may be, the date of the service of the notice and before the occurrence of any of the following events (and, if more than one event occurs, before the earliest to occur— (a) the service by the landlord of a counter notice under section 153A(3); (b) the date on which the landlord makes to the tenant the grant required by section 138 or, as the case may be, section 150; (c) the date on which the tenant serves notice under section 142(2) (claiming to be entitled to defer completion); (d) the date on which the tenant withdraws or is deemed to have withdrawn the notice claiming to exercise the right to buy or, as the case may be, the notice claiming to exercise the right to be granted a shared ownership lease; and (e) the date on which the tenant ceases to be entitled to exercise the right to buy. (2) Except where this section ceases to apply on a date determined under any of paragraphs (c) to (e) of subsection (1), so much of any payment of rent to which this section applies as does not consist of— (a) a sum due on account of rates, or (b) a service charge (as defined in section 62 1 A), shall be treated not only as a payment of rent but also as a payment on account by the tenant which is to be taken into account in accordance with subsection (3). (3) In a case where subsection (2) applies, the amount which, apart from this section, would be the purchase price or, as the case may be, the tenant’s initial contribution for the grant of a shared ownership lease shall be reduced by an amount equal to the aggregate of— (a) the total of any payments on account treated as having been paid by the tenant by virtue of subsection (2); and (b) if those payments on account are derived from payments of rent referable to a period of more than twelve months, a sum equal to the appropriate percentage of the total referred to in paragraph (a). (4) In subsection (3)(b) “the appropriate percentage” means 50 per cent. or such other percentage as may be prescribed.

Restriction on letting etc. of certain houses in National Parks etc

125

(1) Section 37 of the Housing Act 1985 (restriction on disposals of dwelling-houses in National Parks etc.) shall be amended in accordance with this section.

(2) In subsection (2) (the covenanted limitation) after the word “his” there shall be inserted “ “(a) ” and at the end there shall be added

and (b) there will be no disposal by way of tenancy or licence without the written consent of the authority unless the disposal is to a person satisfying that condition or by a person whose only or principal home is and, throughout the duration of the tenancy or licence, remains the house

(3) In subsection (3) (disposals limited to persons employed or living locally) after the words “application for consent” there shall be inserted the words “ or, in the case of a disposal by way of tenancy or licence, preceding the disposal ”.

(4) At the end of subsection (4) (disposals in breach of covenant to be void) there shall be added

and, so far as it relates to disposals by way of tenancy or licence, such a covenant may be enforced by the local authority as if— (a) the authority were possessed of land adjacent to the house concerned; and (b) the covenant were expressed to be made for the benefit of such adjacent land

(5) After subsection (4) there shall be inserted the following subsection—

(4A) Any reference in the preceding provisions of this section to a disposal by way of tenancy or licence does not include a reference to a relevant disposal or an exempted disposal.

(6) This section has effect where the conveyance, grant or assignment referred to in subsection (1) of section 37 is executed on or after the commencement of this Act.

Restriction on disposal of dwelling-houses in National Parks etc. acquired under the right to buy

126

(1) In Part V of the Housing Act 1985 (the right to buy), section 157 (restriction on disposal of dwelling-houses in National Parks etc.) shall be amended in accordance with this section.

(2) In subsection (2) (the covenanted limitation) after the word “his” there shall be inserted “ “(a) ” and at the end there shall be added

and— (b) there will be no disposal by way of tenancy or licence without the written consent of the landlord unless the disposal is to a person satisfying that condition or by a person whose only or principal home is and, throughout the duration of the tenancy or licence, remains the dwelling-house

(3) In subsection (3) (disposals limited to persons employed or living locally) after the words “application for consent” there shall be inserted the words “ “or, in the case of a disposal by way of tenancy or licence, preceding the disposal ”.

(4) At the end of subsection (6) (disposals in breach of covenant to be void) there shall be added

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