Housing Act 1988

• (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

• (c) to any tenant of a description prescribed for the purposes of this section.

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

• (c) was neither withdrawn by the applicant nor rejected by the tenant before the end of that period.

• (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

Consent required for 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;

• (c) a compulsory disposal, within the meaning of 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

• (c) granting an option to acquire property or any such interest.

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

• (c) by reason of any other special consideration.

• (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;

• (c) arranging for the giving of advice or assistance by a solicitor or counsel;

• (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.

Registration of title and related matters

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

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

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

and, so far as it relates to disposals by way of tenancy or licence, such a covenant may be enforced by the landlord as if— (a) the landlord 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 (6) there shall be inserted the following subsection—

(6A) 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 or grant referred to in subsection (1) of section 157 is executed on or after the commencement of this Act.

Preserved right to buy

127

• (1) In subsection (4) of section 171B of the Housing Act 1985 for paragraph (a) there shall be substituted the following paragraphs—

(a) where the former secure tenancy was not a joint tenancy and, immediately before his death, the former secure tenant was tenant under an assured tenancy of a dwelling-house in relation to which he had the preserved right to buy, a member of the former secure tenant’s family who acquired that assured tenancy under the will or intestacy of the former secure tenant; (aa) where the former secure tenancy was not a joint tenancy, a member of the former secure tenant’s family to whom the former secure tenant assigned his assured tenancy of a dwelling-house in relation to which, immediately before the assignment, he had the preserved right to buy

.

• (2) In subsection (2)(a) of section 171C of that Act after the word “paragraphs” there shall be inserted “ “1, 3 and ”.

• (3) After subsection (4) of that section there shall be added the following subsection—

(5) The disapplication by the regulations of paragraph I of Schedule 5 shall not be taken to authorise any action on the part of a charity which would conflict with the trusts of the charity.

Preservation of right to buy on disposal to private sector landlord: Scotland

128

After section 81 of the Housing (Scotland) Act 1987 there shall be inserted the following section—

(81A) (1) The right to buy provisions shall continue to right to buy on apply where a person ceases to be a secure tenant of a disposal to house by reason of the disposal by the landlord of an private sector interest in the house to a private sector landlord. (2) The right to buy provisions shall not, however, continue to apply under subsection (1) in such circumstances as may be prescribed. (3) The continued application under subsection (1) of the right to buy provisions shall be in accordance with and subject to such provision as is prescribed which may— (a) include— (i) such additions and exceptions to, and adaptations and modifications of, the right to buy provisions in their continued application by virtue of this section; and (ii) such incidental, supplementary and transitional provisions; as the Secretary of State considers appropriate; (b) differ as between different cases or descriptions of case and as between different areas; (c) relate to a particular disposal. (4) Without prejudice to the generality of subsection (3), provision may be made by virtue of it— (a) specifying the persons entitled to the benefit of the right to buy provisions in their continued application by virtue of this section; (b) preventing, except with the consent of the Secretary of State, the disposal by the private sector landlord of less than his whole interest in a house in relation to which the right to buy provisions continue to apply by virtue of this section; (c) ensuring that where, under Ground 9 of Schedule 5 to the Housing (Scotland) Act 1988 (availability of suitable alternative accommodation), the sheriff makes an order for possession of a house in relation to which the right to buy provisions continue to apply by virtue of this section and the tenant would not have the right under this Part (other than this section) to buy the house which is or will be available by way of alternative accommodation, these provisions as so continued will apply in relation to the house which is or will be so available. (5) In this section— (a) “secure tenant” means a tenant under a secure tenancy; (b) “private sector landlord” means a landlord other than one of those set out in sub-paragraphs (i) to (iv) and (viii) and (ix) of paragraph (a) of subsection (2) of section 61; (c) the “right to buy provisions” means the provisions of this Act relating to the right of a tenant of a house to purchase it under this Part and to his rights in respect of a loan.

Schemes for payments to assist local housing authority tenants to obtain other accommodation

129

• (1) In accordance with a scheme made by a local housing authority and , where the authority is in Wales, approved by the Secretary of State under this section, the authority may make grants to or for the benefit of qualifying tenants or licensees of the authority with a view to assisting each person to whom or for whose benefit a grant is made to obtain accommodation otherwise than as a tenant or licensee of the authority either—

• (a) by acquiring an interest in a dwelling-house; or

• (b) by carrying out works to a dwelling-house to provide additional accommodation; or

• (c) by both of those means.

• (2) A scheme under this section shall contain such provisions as the local housing authority considers appropriate together with , where the authority is in Wales, any which the Secretary of State may require as a condition of his approval and, without prejudice to the generality, a scheme may include provisions specifying, or providing for the determination of—

• (a) the persons who are qualifying tenants or licensees for the purposes of the scheme;

• (b) the interests which qualifying tenants or licensees may be assisted to acquire;

• (c) the works for the carrying out of which grants may be made;

• (d) the circumstances in which a grant may be made for the benefit of a qualifying tenant or licensee;

• (e) the amount of the grant which may be made in any particular case and the terms on which it may be made;

• (f) the limits on the total number and amount of grants which may be made; and

• (g) the period within which the scheme is to apply.

• (3) The Secretary of State may approve a scheme made by a local housing authority in Wales under this section with or without conditions and, where a scheme has been made and, where the authority is in Wales, approved, a local housing authority shall take such steps as it considers appropriate to bring the scheme to the attention of persons likely to be able to benefit from it and shall take such other steps (if any) as the Secretary of State may direct in any particular case to secure publicity for the scheme.

• (4) The Secretary of State may revoke an approval of a scheme under this section by a notice given to the local housing authority concerned; and, where such a notice is given, the revocation shall not affect the operation of the scheme in relation to any grants made or agreed before the date of the notice.

• (5) Any grant made pursuant to a scheme under this section—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

• (6) Where a scheme has been made by a local housing authority under this section and, where the authority is in Wales, has been approved, a person dealing with the authority shall not be concerned to see or enquire whether the terms of the scheme have been or are being complied with; and any failure to comply with the terms of a scheme shall not invalidate any grant purporting to be made in accordance with the scheme unless the person to whom the grant is made has actual notice of the failure.

• (7) In this section—

• (a) “local housing authority” has the meaning assigned by section 1 of the Housing Act 1985; of the Housing Act 1985;

• (b) “dwelling-house” has the meaning assigned by section 112 of that Act; and

• (c) “tenant” does not include a tenant under a long tenancy, as defined in section 115 of that Act.

Repair notices and improvement grants

Repair notices

130

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

Letting conditions applicable to improvement grants etc

131

• (1) With respect to applications for grants approved after the commencement of this Act, Part XV of the Housing Act 1985 (grants for works of improvement, repair and conversion) shall have effect subject to the following provisions of this section.

• (2) In each of the following provisions—

• (a) section 464 (preliminary condition: certificates as to future occupation), in subsection (5) (certificate of availability for letting), and

• (b) section 501 (condition as to availability for letting), in subsection (2) (the terms of the condition),

in paragraph (a) after the word “holiday” there shall be inserted “on a tenancy which is not a long tenancy and”.

• (3) After the words “Rent (Agriculture) Act 1976”, in each place where they occur in—

• (a) section 464(5),

• (b) section 501(2), and

• (c) subsection (2)(d) of section 503 (restriction on imposition of further conditions in relation to certain grants),

there shall be inserted “or is occupied under an assured agricultural occupancy, within the meaning of Part I of the Housing Act 1988”.

• (4) In section 504 (further conditions as to letting of dwelling), at the beginning of subsection (1) there shall be inserted the words “Subject to subsection (1A)”; in paragraph (a) of that subsection after the word “letting” there shall be inserted “on an assured tenancy which is not a long tenancy or”; and at the end of that subsection there shall be inserted the following subsection—

(1A) Paragraphs (d) to (f) of subsection (1) do not apply in the case of a dwelling which is or is to be let or available for letting on an assured tenancy.

• (5) In subsection (2) of section 504 (definitions) after the words “subsection (1)” there shall be inserted “and subsection (1A)” and before paragraph (a) there shall be inserted the following paragraph—

(aa) “assured tenancy” means a tenancy which is an assured tenancy within the meaning of Part I of the Housing Act 1988 or would be such a tenancy if paragraphs 3, 6, 7 and 10 of Schedule 1 to that Act were omitted

.

• (6) In section 526 (index of defined expressions in Part XV), after the entry relating to “local housing authority” there shall be inserted—

long tenancy section 115

.

• (7) Without prejudice to subsection (1) above, where an application for a grant—

• (a) was made but not approved before the commencement of this Act, and

• (b) was accompanied by a certificate of availability for letting in a form which does not take account of the amendments of section 464(5) by subsections (2) and (3) above,

the certificate shall be treated as if it were in a form which takes account of the amendments made by those subsections.

• (8) Without prejudice to subsection (1) above, where a grant has been approved before the commencement of this Act and—

• (a) section 501(2) applies to impose a condition of the grant, or

• (b) conditions have been imposed in terms of section 504(1),

the condition or conditions shall have effect as if it or they were in a form which takes account of the amendments made by subsection (3) or, as the case may be, subsections (4) and (5) above.

Disposals of housing stock

Consents to disposals of housing stock and application of receipts

132

• (1) At the end of subsection (4) of section 34 of the Housing Act 1985 (consent to disposals of land held for the purposes of Part II—provision of housing accommodation) and at the end of subsection (4) of section 43 of that Act (consent for certain disposals of other houses) there shall be inserted the subsections set out in subsection (2) below.

• (2) The subsections referred to in subsection (1) above and subsection (3) below are as follows—

(4A) The matters to which the Secretary of State may have regard in determining whether to give consent and, if so, to what conditions consent should be subject shall include— (a) the extent (if any) to which the person to whom the proposed disposal is to be made (in this subsection referred to as “the intending purchaser”) is, or is likely to be, dependent upon, controlled by or subject to influence from the local authority making the disposal or any members or officers of that authority; (b) the extent (if any) to which the proposed disposal would result in the intending purchaser becoming the predominant or a substantial owner in any area of housing accommodation let on tenancies or subject to licences; (c) the terms of the proposed disposal; and (d) any other matters whatsoever which he considers relevant. (4B) Where the Secretary of State gives consent to a disposal by a local authority, he may give directions as to the purpose for which any capital money received by the authority in respect of the disposal is to be applied and, where any such directions are given, nothing in any enactment shall require his consent to be given for the application of the capital money concerned in accordance with the directions.

• (3) Section 13 of the Housing (Scotland) Act 1987 (power of Secretary of State to impose conditions in sale of local authority houses) shall be renumbered as subsection (1) of that section and after that subsection there shall be inserted as subsections (2) and (3) the subsections which are set out in subsection (2) above and there numbered (4A) and (4B).

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

• (6) In section 208 of the Housing (Scotland) Act 1987 (application of receipts from disposal of certain land), in subsection (2) there shall be inserted at the end the words “or has made directions under section 13(3)”.

• (7) In section 26 of the Local Government Act 1988 (provisions as to consents under section 25 for provision of financial assistance etc.), in subsection (5) (which excludes consent under various enactments where consent is given to a disposal of land under section 25) after the words “such a consent” there shall be inserted “then, if the consent given for the purposes of section 25 above so provides”.

• (8) This section shall be deemed to have come into force on 9th June 1988.

Consent required for certain subsequent disposals

133

• (1) Where consent is required for a disposal (in this section referred to as “the original disposal”) by virtue of section 32 or section 43 of the Housing Act 1985 and that consent does not provide otherwise, the person who acquires the land or house on the disposal shall not dispose of it except with the consent of the appropriate authority; but nothing in this section shall apply in relation to an exempt disposal ....

• (1ZA) In this section “the appropriate authority” means—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) in relation to a disposal of land in England, the Secretary of State, and

• (c) in relation to a disposal of land in Wales, the Welsh Ministers.

• (1A) This section does not apply if the original disposal was made before the date on which this section comes into force.

• (1B) This section does not apply if the original disposal was made to a private registered provider of social housing or to a body registered as a registered social landlord under Chapter 1 of Part 1 of the Housing Act 1996.

• (2) Where an estate or interest of the person who acquired the land or house on the original disposal has been mortgaged or charged, the prohibition in subsection (1) above 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 person who so acquired the land or house; and in any case where—

• (a) by operation of law or by virtue of an order of a court, the land or house which has been acquired passes or is transferred from the person who so acquired it to another person, and

• (b) that passing or transfer does not constitute a disposal for which consent is required under this section,