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Leasehold Reform, Housing and Urban Development Act 1993

Type Public General Act

Publication 1993-07-20

Last updated 2024-11-04

State In force

Department Statute Law Database

Source legislation.gov.uk

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(2) There shall also be brought in the county court any proceedings for determining any question arising under or by virtue of any provision of Chapter I or II or this Chapter which is not a question falling within its jurisdiction by virtue of subsection (1) or one falling within the jurisdiction of the appropriate tribunal (within the meaning of section 91) by virtue of that section.

(3) Where, however, there are brought in the High Court any proceedings which, apart from this subsection, are proceedings within the jurisdiction of the High Court, the High Court shall have jurisdiction to hear and determine any proceedings joined with those proceedings which are proceedings within the jurisdiction of the county court by virtue of subsection (1) or (2).

(4) Where any proceedings are brought in the county court by virtue of subsection (1) or (2), the court shall have jurisdiction to hear and determine any other proceedings joined with those proceedings, despite the fact that, apart from this subsection, those other proceedings would be outside the court’s jurisdiction.

Jurisdiction of leasehold valuation tribunals

91

(1) ... any question arising in relation to any of the matters specified in subsection (2) shall, in default of agreement, be determined by the appropriate tribunal.

(2) Those matters are—

(a) the terms of acquisition relating to—

(i) any interest which is to be acquired by a nominee purchaser in pursuance of Chapter I, or

(ii) any new lease which is to be granted to a tenant in pursuance of Chapter II,

including in particular any matter which needs to be determined for the purposes of any provision of Schedule 6 or 13;

(b) the terms of any lease which is to be granted in accordance with section 36 and Schedule 9;

(ca) the amount of any compensation payable under section 37A;

(cb) the amount of any compensation payable under section 61A;

(d) the amount of any costs payable by any person or persons by virtue of any provision of Chapter I or II and, in the case of costs to which section 33(1) or 60(1) applies, the liability of any person or persons by virtue of any such provision to pay any such costs; and

(e) the apportionment between two or more persons of any amount (whether of costs or otherwise) payable by virtue of any such provision.

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

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

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

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

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) The appropriate tribunal may, when determining the property in which any interest is to be acquired in pursuance of a notice under section 13 or 42, specify in its determination property which is less extensive than that specified in that notice.

(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11) In this section—

“the nominee purchaser” and “the participating tenants” have the same meaning as in Chapter I;

“the terms of acquisition” shall be construed in accordance with section 24(8) or section 48(7), as appropriate;

...

(12) For the purposes of this section, “appropriate tribunal” means—

(a) in relation to property in England, the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal; and

(b) in relation to property in Wales, a leasehold valuation tribunal.

Enforcement of obligations under Chapters I and II

92

(1) The court may, on the application of any person interested, make an order requiring any person who has failed to comply with any requirement imposed on him under or by virtue of any provision of Chapter I or II to make good the default within such time as is specified in the order.

(2) An application shall not be made under subsection (1) unless—

(a) a notice has been previously given to the person in question requiring him to make good the default, and

(b) more than 14 days have elapsed since the date of the giving of that notice without his having done so.

Agreements excluding or modifying rights of tenant under Chapter I or II

93

(1) Except as provided by this section, any agreement relating to a lease (whether contained in the instrument creating the lease or not and whether made before the creation of the lease or not) shall be void in so far as it—

(a) purports to exclude or modify—

(i) any entitlement to participate in the making of a claim to exercise the right to collective enfranchisement under Chapter I,

(ii) any right to acquire a new lease under Chapter II, or

(iii) any right to compensation under section 61; or

(b) provides for the termination or surrender of the lease in the event of the tenant becoming a participating tenant for the purposes of Chapter I or giving a notice under section 42; or

(2) Subsection (1) shall not be taken to preclude a tenant from surrendering his lease, and shall not—

(a) invalidate any agreement for the acquisition on behalf of a tenant of an interest superior to his lease, or for the acquisition by a tenant of a new lease, on terms different from those provided by Chapters I and II; or

(b) where a tenant has become a participating tenant for the purposes of Chapter I or has given a notice under section 42, invalidate—

(i) any agreement that the notice given under section 13 or (as the case may be) section 42 shall cease to have effect, or

(ii) any provision of such an agreement excluding or restricting for a period not exceeding three years any such entitlement or right as is mentioned in subsection (1)(a)(i) or (ii); or

(c) where a tenant’s right to compensation under section 61 has accrued, invalidate any agreement as to the amount of the compensation.

(3) Where—

(a) a tenant having the right to acquire a new lease under Chapter II—

(i) has entered into an agreement for the surrender of his lease without the prior approval of the court, or

(ii) has entered into an agreement for the grant of a new lease without any of the terms of acquisition (within the meaning of that Chapter) having been determined by the appropriate tribunal (within the meaning of that Chapter) under that Chapter, or

(b) a tenant has been granted a new lease under Chapter II or by virtue of subsection (4) below and, on his landlord claiming possession for the purposes of redevelopment, enters into an agreement without the prior approval of the court for the surrender of the lease,

then on the application of the tenant the county court, or any court in which proceedings are brought on the agreement, may, if in its opinion the tenant is not adequately recompensed under the agreement for his rights under Chapter II, set aside or vary the agreement and give such other relief as appears to it to be just having regard to the situation and conduct of the parties.

(4) Where a tenant has the right to acquire a new lease under Chapter II, there may with the approval of the court be granted to him in satisfaction of that right a new lease on such terms as may be approved by the court, which may include terms excluding or modifying—

(a) any entitlement to participate in the making of a claim to exercise the right to collective enfranchisement under Chapter I, or

(b) any right to acquire a further lease under Chapter II.

(5) Subject to the provisions specified in subsection (6) and to subsection (7), a lease may be granted by virtue of subsection (4), and shall if so granted be binding on persons entitled to any interest in or charge on the landlord’s estate—

(a) despite the fact that, apart from this subsection, it would not be authorised against any such persons, and

(b) despite any statutory or other restrictions on the landlord’s powers of leasing.

(6) The provisions referred to in subsection (5) are—

(a) sections 117 to 121 of the Charities Act 2011 (restrictions on disposition of charity land); and

(b) paragraph 8(2)(c) of Schedule 2 to this Act.

(7) Where the existing lease of the tenant is granted after the commencement of Chapter II and, the grant being subsequent to the creation of a charge on the landlord’s estate, the existing lease is not binding on the persons interested in the charge, a lease granted by virtue of subsection (4) shall not be binding on those persons.

(8) Where a lease is granted by virtue of subsection (4), then except in so far as provision is made to the contrary by the terms of the lease, the following provisions shall apply in relation to the lease as they apply in relation to a lease granted under section 56, namely—

(a) section 58(3), (5) and (6);

(b) section 59(2) to (5); and

and subsections (5) to (7) of section 56 shall apply in relation to the lease as they apply in relation to a lease granted under that section.

Crown land

94

(1) Subject to subsection (2), Chapters I and II shall apply to a lease from the Crown if (and only if) there has ceased to be a Crown interest in the land subject to it.

(2) Chapter 2 applies as against a landlord under a lease from the Crown if—

(a) a sub-tenant is seeking a new lease under that Chapter and the landlord, or a superior landlord under a lease from the Crown, is entitled to grant such a new lease without the concurrence of the appropriate authority, or

(b) the appropriate authority notifies the landlord that, as regards any Crown interest affected, it will grant or concur in granting such a new lease.

(3) The restriction imposed by section 3(2) of the Crown Estate Act 1961 (general provisions as to management) on the term for which a lease may be granted by the Crown Estate Commissioners shall not apply where—

(a) the lease is granted by way of renewal of a long lease . . . , and

(b) it appears to the Crown Estate Commissioners that, but for the existence of any Crown interest, there would be a right to acquire a new lease under Chapter II of this Part of this Act.

(4) Where, in the case of land belonging—

(a) to Her Majesty in right of the Duchy of Lancaster, or

(b) to the Duchy of Cornwall,

it appears to the appropriate authority that a tenant under a long lease . . . would, but for the existence of any Crown interest, be entitled to acquire a new lease under Chapter II, then a lease corresponding to that to which the tenant would be so entitled may be granted to take effect wholly or partly out of the Crown interest by the same person and with the same formalities as in the case of any other lease of such land.

(5) In the case of land belonging to the Duchy of Cornwall, the purposes authorised by section 8 of the Duchy of Cornwall Management Act 1863 for the advancement of parts of such gross sums as are there mentioned shall include the payment to tenants under leases from the Crown of sums corresponding to those which, but for the existence of any Crown interest, would be payable by way of compensation under section 61 above.

(6) The appropriate authority in relation to any area occupied under leases from the Crown may make an application for the approval under section 70 of a scheme for that area which is designed to secure that, in the event of tenants under those leases acquiring freehold interests in such circumstances as are mentioned in subsection (7) below, the authority will—

(a) retain powers of management in respect of the premises in which any such freehold interests are acquired, and

(b) have rights against any such premises in respect of the benefits arising from the exercise elsewhere of the authority’s powers of management.

(7) The circumstances mentioned in subsection (6) are circumstances in which, but for the existence of any Crown interest, the tenants acquiring any such freehold interests would be entitled to acquire them as mentioned in section 69(1)(a) or (b).

(8) Subject to any necessary modifications—

(a) subsections (2) to (7) of section 69 shall apply in relation to any such scheme as is mentioned in subsection (6) above as they apply in relation to an estate management scheme; and

(b) section 70 shall apply in relation to the approval of such a scheme as it applies in relation to the approval of a scheme as an estate management scheme.

(9) Subsection (10) applies where—

(a) any tenants under leases from the Crown are proceeding with a view to acquiring the freehold of any premises in circumstances in which, but for the existence of any Crown interest, they would be entitled to acquire the freehold under Chapter I, or

(b) any tenant under a lease from the Crown is proceeding with a view to acquiring a new lease of his flat in circumstances in which, but for the existence of any Crown interest, he would be entitled to acquire such a lease under Chapter II.

(10) Where—

(a) this subsection applies in accordance with subsection (9), and

(b) any question arises in connection with the acquisition of the freehold of those premises or any such new lease which is such that, if the tenants or tenant were proceeding as mentioned in that subsection in pursuance of a claim made under Chapter I or (as the case may be) Chapter II, the appropriate tribunal (within the meaning of the relevant Chapter) would have jurisdiction to determine it in proceedings under that Chapter, and

(i) the appropriate authority and the tenants or tenant, and

(ii) all other persons (if any) whose interests would fall to be represented in proceedings brought under that Chapter for the determination of that question by the appropriate tribunal (within the meaning of the relevant Chapter),

that that question should be determined by such a tribunal,

a leasehold valuation tribunal shall have jurisdiction to determine that question ...

(11) For the purposes of this section “lease from the Crown” means a lease of land in which there is, or has during the subsistence of the lease been, a Crown interest superior to the lease; and “Crown interest” and “the appropriate authority” in relation to a Crown interest mean respectively—

(a) an interest comprised in the Crown Estate, and the Crown Estate Commissioners;

(b) an interest belonging to Her Majesty in right of the Duchy of Lancaster, and the Chancellor of the Duchy;

(c) an interest belonging to the Duchy of Cornwall, and such person as the Duke of Cornwall or the possessor for the time being of the Duchy appoints;

(d) any other interest belonging to a government department or held on behalf of Her Majesty for the purposes of a government department, and the Minister in charge of that department.

(12) For the purposes of this section “long lease . . . ” shall be construed in accordance with sections 7 . . . .

Saving for National Trust

95

Chapters I and II shall not prejudice the operation of section 21 of the National Trust Act 1907, and accordingly there shall be no right under Chapter I or II to acquire any interest in or new lease of any property if an interest in the property is under that section vested inalienably in the National Trust for Places of Historic Interest or Natural Beauty.

Property within cathedral precinct

96

There shall be no right under Chapter I or II to acquire any interest in or lease of any property which for the purposes of the Care of Cathedrals Measure 1990 is within the precinct of a cathedral church.

Registration of notices, applications and orders under Chapters I and II

97

(1) No lease shall be registrable under the Land Charges Act 1972 or be taken to be an estate contract within the meaning of that Act by reason of any rights or obligations of the tenant or landlord which may arise under Chapter I or II, and any right of a tenant arising from a notice given under section 13 or 42 shall not be capable of falling within paragraph 2 of Schedule 1 or 3 to the Land Registration Act 2002; but a notice given under section 13 or 42 shall be registrable under the Land Charges Act 1972, or may be the subject of a notice under the Land Registration Act 2002, as if it were an estate contract.

(2) The Land Charges Act 1972 and the Land Registration Act 2002 —

(a) shall apply in relation to an order made under section 26(1) or 50(1) as they apply in relation to an order affecting land which is made by the court for the purpose of enforcing a judgment or recognisance; and

(b) shall apply in relation to an application for such an order as they apply in relation to other pending land actions.

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

Power to prescribe procedure under Chapters I and II

98

(1) Where a claim to exercise the right to collective enfranchisement under Chapter I is made by the giving of a notice under section 13, or a claim to exercise the right to acquire a new lease under Chapter II is made by the giving of a notice under section 42, then except as otherwise provided by Chapter I or (as the case may be) Chapter II—

(a) the procedure for giving effect to the notice, and

(b) the rights and obligations of all parties in relation to the investigation of title and other matters arising in giving effect to the notice,

shall be such as may be prescribed by regulations made by the Secretary of State and, subject to or in the absence of provision made by any such regulations, shall be as nearly as may be the same as in the case of a contract of sale or leasing freely negotiated between the parties.

(2) Regulations under this section may, in particular, make provision—

(a) for a person to be discharged from performing any obligations arising out of a notice under section 13 or 42 by reason of the default or delay of some other person;

(b) for the payment of a deposit—

(i) by a nominee purchaser (within the meaning of Chapter I) on exchange of contracts, or

(ii) by a tenant who has given a notice under section 42; and

(i) the person with whom any such deposit is to be lodged and the capacity in which any such person is to hold it, and

(ii) the circumstances in which the whole or part of any such deposit is to be returned or forfeited.

Notices

99

(1) Any notice required or authorised to be given under this Part—

(a) shall be in writing; and

(b) may be sent by post.

(2) Where in accordance with Chapter I or II an address in England and Wales is specified as an address at which notices may be given to any person or persons under that Chapter—

(a) any notice required or authorised to be given to that person or those persons under that Chapter may (without prejudice to the operation of subsection (3)) be given to him or them at the address so specified; but

(b) if a new address in England and Wales is so specified in substitution for that address by the giving of a notice to that effect, any notice so required or authorised to be given may be given to him or them at that new address instead.

(3) Where a tenant is required or authorised to give any notice under Chapter I or II to a person who—

(a) is the tenant’s immediate landlord, and

(b) is such a landlord in respect of premises to which Part VI of the Landlord and Tenant Act 1987 (information to be furnished to tenants) applies,

the tenant may, unless he has been subsequently notified by the landlord of a different address in England and Wales for the purposes of this section, give the notice to the landlord—

(i) at the address last furnished to the tenant as the landlord’s address for service in accordance with section 48 of that Act (notification of address for service of notices on landlord); or

(ii) if no such address has been furnished, at the address last furnished to the tenant as the landlord’s address in accordance with section 47 of that Act (landlord’s name and address to be contained in demands for rent).

(4) Subsections (2) and (3) apply to notices in proceedings under Chapter I or II as they apply to notices required or authorised to be given under that Chapter.

(5) Any notice which is given under Chapter I or II by any tenants or tenant must be signed by or on behalf of each of the tenants, or (as the case may be) by or on behalf of the tenant, by whom it is given.

(6) The Secretary of State may by regulations prescribe—

(a) the form of any notice required or authorised to be given under this Part; and

(b) the particulars which any such notice must contain (whether in addition to, or in substitution for, any particulars required by virtue of any provision of this Part).

Orders and regulations

100

(1) Any power of the Secretary of State or the Welsh Ministers to make orders or regulations under this Part—

(a) may be so exercised as to make different provision for different cases or descriptions of cases, including different provision for different areas; and

(b) includes power to make such procedural, incidental, supplementary and transitional provision as may appear to the Secretary of State necessary or expedient.

(2) Any power of the Secretary of State to make orders or regulations under this Part shall be exercisable by statutory instrument which (except in the case of regulations making only such provision as is mentioned in section 99(6)) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(3) Any power of the Welsh Ministers to make regulations under this Part shall be exercisable by statutory instrument which (except in the case of regulations making only such provision as is mentioned in section 99(6)) shall be subject to annulment in pursuance of a resolution of the National Assembly for Wales.

General interpretation of Part I

101

(1) In this Part—

“business lease” means a tenancy to which Part II of the Landlord and Tenant Act 1954 applies;

“common parts”, in relation to any building or part of a building, includes the structure and exterior of that building or part and any common facilities within it;

“the court” (unless the context otherwise requires) means, by virtue of section 90(1), the county court;

“disposal” means a disposal whether by the creation or the transfer of an interest, and includes the surrender of a lease and the grant of an option or right of pre-emption, and “acquisition” shall be construed accordingly (as shall expressions related to either of these expressions);

“dwelling” means any building or part of a building occupied or intended to be occupied as a separate dwelling;

“flat” means a separate set of premises (whether or not on the same floor)—which forms part of a building, andwhich is constructed or adapted for use for the purposes of a dwelling, andeither the whole or a material part of which lies above or below some other part of the building;

“interest” includes estate;

“lease” and “tenancy”, and related expressions, shall be construed in accordance with subsection (2);

“the term date”, in relation to a lease granted for a term of years certain, means (subject to subsection (6)) the date of expiry of that term, and, in relation to a tenancy to which any of the provisions of section 102 applies, shall be construed in accordance with those provisions.

(2) In this Part “lease” and “tenancy” have the same meaning, and both expressions include (where the context so permits)—

(a) a sub-lease or sub-tenancy, and

(b) an agreement for a lease or tenancy (or for a sub-lease or sub-tenancy),

but do not include a tenancy at will or at sufferance; and the expressions “landlord” and “tenant”, and references to letting, to the grant of a lease or to covenants or the terms of a lease, shall be construed accordingly.

(3) In this Part any reference (however expressed) to the lease held by a qualifying tenant of a flat is a reference to a lease held by him under which the demised premises consist of or include the flat (whether with or without one or more other flats).

(4) Where two or more persons jointly constitute either the landlord or the tenant or qualifying tenant in relation to a lease of a flat, any reference in this Part to the landlord or to the tenant or qualifying tenant is (unless the context otherwise requires) a reference to both or all of the persons who jointly constitute the landlord or the tenant or qualifying tenant, as the case may require.

(5) Any reference in this Part to the date of the commencement of a lease is a reference to the date of the commencement of the term of the lease.

(6) In the case of a lease which derives (in accordance with section 7(6)) from more than one separate leases, references in this Part to the date of the commencement of the lease or to the term date shall, if the terms of the separate leases commenced at different dates or those leases have different term dates, have effect as references to the date of the commencement, or (as the case may be) to the term date, of the lease comprising the flat in question (or the earliest date of commencement or earliest term date of the leases comprising it).

(7) For the purposes of this Part property is let with other property if the properties are let either under the same lease or under leases which, in accordance with section 7(6), are treated as a single lease.

(8) For the purposes of this Part any lease which is reversionary on another lease shall be treated as if it were a concurrent lease intermediate between that other lease and any interest superior to that other lease.

(9) For the purposes of this Part an order of a court or a decision of a leasehold valuation tribunal the First-tier Tribunal or Upper Tribunal is to be treated as becoming final—

(a) if not appealed against, on the expiry of the time for bringing an appeal; or

(b) if appealed against and not set aside in consequence of the appeal, at the time when the appeal and any further appeal is disposed of—

(i) by the determination of it and the expiry of the time for bringing a further appeal (if any), or

(ii) by its being abandoned or otherwise ceasing to have effect.

Term date and other matters relating to periodical tenancies

102

(1) Where either of the following provisions (which relate to continuation tenancies) applies to a tenancy, namely—

(a) section 19(2) of the Landlord and Tenant Act 1954 (“the 1954 Act”), or

(b) paragraph 16(2) of Schedule 10 to the Local Government and Housing Act 1989 (“the 1989 Act”),

the tenancy shall be treated for the relevant purposes of this Part as granted to expire—

(i) on the date which is the term date for the purposes of the 1954 Act (namely, the first date after the commencement of the 1954 Act on which, apart from the 1954 Act, the tenancy could have been brought to an end by a notice to quit given by the landlord under the tenancy), or

(ii) on the date which is the term date for the purposes of Schedule 10 to the 1989 Act (namely, the first date after the commencement of Schedule 10 to the 1989 Act on which, apart from that Schedule, the tenancy could have been brought to an end by such a notice to quit),

as the case may be.

(2) Subject to subsection (1), where under section 7(3) a tenancy created or arising as a tenancy from year to year or other periodical tenancy is to be treated as a long lease, then for the relevant purposes of this Part, the term date of that tenancy shall be taken to be the date (if any) on which the tenancy is to terminate by virtue of a notice to quit given by the landlord under the tenancy before the relevant date for those purposes, or else the earliest date on which it could as at that date (in accordance with its terms and apart from any enactment) be brought to an end by such a notice to quit.

(3) Subject to subsection (1), in the case of a tenancy granted to continue as a periodical tenancy after the expiry of a term of years certain, or to continue as a periodical tenancy if not terminated at the expiry of such a term, any question whether the tenancy is at any time to be treated for the relevant purposes of this Part as a long lease, and (if so) with what term date, shall be determined as it would be if there had been two tenancies, as follows—

(a) one granted to expire at the earliest time (at or after the expiry of that term of years certain) at which the tenancy could (in accordance with its terms and apart from any enactment) be brought to an end by a notice to quit given by the landlord under the tenancy; and

(b) the other granted to commence at the expiry of the first (and not being one to which subsection (1) applies).

(4) In this section “the relevant purposes of this Part” means the purposes of Chapter I or, to the extent that section 7 has effect for the purposes of Chapter II in accordance with section 39(3), the purposes of that Chapter.

Application of Part I to Isles of Scilly

103

This Part applies to the Isles of Scilly subject to such exceptions, adaptations and modifications as the Secretary of State may by order direct.

Part II — PUBLIC SECTOR HOUSING

Chapter I — ENGLAND AND WALES

Right to buy

Landlord’s notice of purchase price and other matters

104

For subsection (5) of section 125 (landlord’s notice of purchase price and other matters) of the Housing Act 1985 (in this Chapter referred to as “the 1985 Act”) there shall be substituted the following subsection—

(5) The notice shall also inform the tenant of— (a) the effect of sections 125D and 125E(1) and (4) (tenant’s notice of intention, landlord’s notice in default and effect of failure to comply), (b) his right under section 128 to have the value of the dwelling-house at the relevant time determined or re-determined by the district valuer, (c) the effect of section 136(2) (change of tenant after service of notice under section 125), (d) the effect of sections 140 and 141(1), (2) and (4) (landlord’s notices to complete and effect of failure to comply), (e) the effect of the provisions of this Part relating to the right to acquire on rent to mortgage terms, and (f) the relevant amount and multipliers for the time being declared by the Secretary of State for the purposes of section 143B.

Tenant’s notice of intention etc

105

(1) After section 125C of the 1985 Act there shall be inserted the following sections—

(125D) (1) Where a notice under section 125 has been served on a secure tenant, he shall within the period specified in subsection (2) either— (a) serve a written notice on the landlord stating either that he intends to pursue his claim to exercise the right to buy or that he withdraws that claim, or (b) serve a notice under section 144 claiming to exercise the right to acquire on rent to mortgage terms. (2) The period for serving a notice under subsection (1) is the period of twelve weeks beginning with whichever of the following is the later— (a) the service of the notice under section 125, and (b) where the tenant exercises his right to have the value of the dwelling-house determined or re-determined by the district valuer, the service of the notice under section 128(5) stating the effect of the determination or re-determination. (125E) (1) The landlord may, at any time after the end of the period specified in section 125D(2) or, as the case may require, section 136(2), serve on the tenant a written notice— (a) requiring him, if he has failed to serve the notice required by section 125D(1), to serve that notice within 28 days, and (b) informing him of the effect of this subsection and subsection (4). (2) At any time before the end of the period mentioned in subsection (1)(a) (or that period as previously extended) the landlord may by written notice served on the tenant extend it (or further extend it). (3) If at any time before the end of that period (or that period as extended under subsection (2)) the circumstances are such that it would not be reasonable to expect the tenant to comply with a notice under this section, that period (or that period as so extended) shall by virtue of this subsection be extended (or further extended) until 28 days after the time when those circumstances no longer obtain. (4) If the tenant does not comply with a notice under this section, the notice claiming to exercise the right to buy shall be deemed to be withdrawn at the end of that period (or, as the case may require, that period as extended under subsection (2) or (3)).

(2) For subsections (2) to (5) of section 136 of the 1985 Act (change of tenant after notice claiming to exercise the right to buy) there shall be substituted the following subsection—

(2) If a notice under section 125 (landlord’s notice of purchase price and other matters) has been served on the former tenant, then, whether or not the former tenant has served a notice under subsection (1) of section 125D (tenant’s notice of intention), the new tenant shall serve a notice under that subsection within the period of twelve weeks beginning with whichever of the following is the later— (a) his becoming the secure tenant, and (b) where the right to have the value of the dwelling-house determined or re-determined by the district valuer is or has been exercised by him or the former tenant, the service of the notice under section 128(5) stating the effect of the determination or re-determination.

Exceptions to the right to buy

106

(1) In paragraph 10(1) (groups of dwelling-houses for persons of pensionable age) of Schedule 5 to the 1985 Act (exceptions to the right to buy)—

(a) for the words “persons of pensionable age”, in the first place where they occur, there shall be substituted the words “ elderly persons ”; and

(b) for those words, in the second place where they occur, there shall be substituted the words “ persons aged 60 or more ”.

(2) For paragraph 11 (individual dwelling-houses for persons of pensionable age) of that Schedule there shall be substituted the following paragraph—

(11) (1) The right to buy does not arise if the dwelling-house— (a) is particularly suitable, having regard to its location, size, design, heating system and other features, for occupation by elderly persons, and (b) was let to the tenant or a predecessor in title of his for occupation by a person who was aged 60 or more (whether the tenant or predecessor or another person). (2) In determining whether a dwelling is particularly suitable, no regard shall be had to the presence of any feature provided by the tenant or a predecessor in title of his. (3) Notwithstanding anything in section 181 (jurisdiction of county court), any question arising under this paragraph shall be determined as follows. (4) If an application for the purpose is made by the tenant to the Secretary of State before the end of the period of 56 days beginning with the service of the landlord’s notice under section 124, the question shall be determined by the Secretary of State. (5) If no such application is so made, the question shall be deemed to have been determined in favour of the landlord. (6) This paragraph does not apply unless the dwelling-house concerned was first let before 1st January 1990.

(3) Subsections (1) and (2) do not apply in any case where the tenant’s notice claiming to exercise the right to buy was served before the day on which this section comes into force.

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

Abolition of certain ancillary rights

Abolition of right to a mortgage, right to defer completion and right to be granted a shared ownership lease

107

The following rights ancillary to the right to buy are hereby abolished, namely—

(a) the right to a mortgage conferred by sections 132 to 135 of the 1985 Act;

(b) the right to defer completion conferred by section 142 of that Act; and

Right to acquire on rent to mortgage terms

108

For section 143 of the 1985 Act there shall be substituted the following sections—

(143) (1) Subject to subsection (2) and sections 143A and 143B, where— (a) a secure tenant has claimed to exercise the right to buy, and (b) his right to buy has been established and his notice claiming to exercise it remains in force, he also has the right to acquire on rent to mortgage terms in accordance with the following provisions of this Part. (2) The right to acquire on rent to mortgage terms cannot be exercised if the exercise of the right to buy is precluded by section 121 (circumstances in which right to buy cannot be exercised). (3) Where the right to buy belongs to two or more persons jointly, the right to acquire on rent to mortgage terms also belongs to them jointly. (143A) (1) The right to acquire on rent to mortgage terms cannot be exercised if— (a) it has been determined that the tenant is or was entitled to housing benefit in respect of any part of the relevant period, or (b) a claim for housing benefit in respect of any part of that period has been made (or is treated as having been made) by or on behalf of the tenant and has not been determined or withdrawn. (2) In this section “the relevant period” means the period— (a) beginning twelve months before the day on which the tenant claims to exercise the right to acquire on rent to mortgage terms, and (b) ending with the day on which the conveyance or grant is executed in pursuance of that right. (143B) (1) The right to acquire on rent to mortgage terms cannot be exercised if the minimum initial payment in respect of the dwelling-house exceeds the maximum initial payment in respect of it. (2) The maximum initial payment in respect of a dwelling-house is 80 per cent. of the price which would be payable if the tenant were exercising the right to buy. (3) Where, in the case of a dwelling-house which is a house, the weekly rent at the relevant time did not exceed the relevant amount, the minimum initial payment shall be determined by the formula— $$P=RxM$where—$ P = the minimum initial payment; R = the amount of the weekly rent at the relevant time; M = the multiplier which at that time was for the time being declared by the Secretary of State for the purposes of this subsection. (4) Where, in the case of a dwelling-house which is a house, the weekly rent at the relevant time exceeded the relevant amount, the minimum initial payment shall be determined by the formula— $$P=Q+(ExM)$where—$ P = the minimum initial payment; Q = the qualifying maximum for the year of assessment which included the relevant time; E = the amount by which the weekly rent at that time exceeded the relevant amount; M = the multiplier which at that time was for the time being declared by the Secretary of State for the purposes of this subsection. (5) The minimum initial payment in respect of a dwelling-house which is a flat is 80 per cent. of the amount which would be the minimum initial payment in respect of the dwelling-house if it were a house. (6) The relevant amount and multipliers for the time being declared for the purposes of this section shall be such that, in the case of a dwelling-house which is a house, they will produce a minimum initial payment equal to the capital sum which, in the opinion of the Secretary of State, could be raised on a 25 year repayment mortgage in the case of which the net amount of the monthly mortgage payments was equal to the rent at the relevant time calculated on a monthly basis. (7) For the purposes of subsection (6) the Secretary of State shall assume— (a) that the interest rate applicable throughout the 25 year term were the standard national rate for the time being declared by the Secretary of State under paragraph 2 of Schedule 16 (local authority mortgage interest rates); and (b) that the monthly mortgage payments represented payments of capital and interest only. (8) In this section— - “net amount”, in relation to monthly mortgage payments, means the amount of such payments after deduction of tax under section 369 of the Income and Corporation Taxes Act 1988 (mortgage interest payable under deduction of tax); - “qualifying maximum” means the qualifying maximum defined in section 367(5) of that Act (limit on relief for interest on certain loans); - “relevant amount” means the amount which at the relevant time was for the time being declared by the Secretary of State for the purposes of this section; - “relevant time” means the time of the service of the landlord’s notice under section 146 (landlord’s notice admitting or denying right); - “rent” means rent payable under the secure tenancy, but excluding any element which is expressed to be payable for services, repairs, maintenance or insurance or the landlord’s costs of management.

Tenant’s notice claiming right

109

For sections 144 and 145 of the 1985 Act there shall be substituted the following section—

(144) (1) A secure tenant claims to exercise the right to acquire on rent to mortgage terms by written notice to that effect served on the landlord. (2) The notice may be withdrawn at any time by notice in writing served on the landlord. (3) On the service of a notice under this section, any notice served by the landlord under section 140 or 141 (landlord’s notices to complete purchase in pursuance of right to buy) shall be deemed to have been withdrawn; and no such notice may be served by the landlord whilst a notice under this section remains in force. (4) Where a notice under this section is withdrawn, the tenant may complete the transaction in accordance with the provisions of this Part relating to the right to buy.

Landlord’s notice admitting or denying right

110

For section 146 of the 1985 Act there shall be substituted the following section—

(146) (1) Where a notice under section 144 (notice claiming to exercise the right to acquire on rent to mortgage terms) has been served by the tenant, the landlord shall, unless the notice is withdrawn, serve on the tenant as soon as practicable a written notice either— (a) admitting the tenant’s right and informing him of the matters mentioned in subsection (2), or (b) denying it and stating the reasons why, in the opinion of the landlord, the tenant does not have the right to acquire on rent to mortgage terms. (2) The matters are— (a) the relevant amount and multipliers for the time being declared by the Secretary of State for the purposes of section 143B; (b) the amount of the minimum initial payment; (c) the proportion which that amount bears to the price which would be payable if the tenant exercised the right to buy; (d) the landlord’s share on the assumption that the tenant makes the minimum initial payment; (e) the amount of the initial discount on that assumption; and (f) the provisions which, in the landlord’s opinion, should be contained in the conveyance or grant and the mortgage required by section 151B (mortgage for securing redemption of landlord’s share).

Tenant’s notice of intention etc

111

After section 146 of the 1985 Act there shall be inserted the following sections—

(146A) (1) Where a notice under section 146 has been served on a secure tenant, he shall within the period specified in subsection (2) serve a written notice on the landlord stating either— (a) that he intends to pursue his claim to exercise the right to acquire on rent to mortgage terms and the amount of the initial payment which he proposes to make, or (b) that he withdraws that claim and intends to pursue his claim to exercise the right to buy, or (c) that he withdraws both of those claims. (2) The period for serving a notice under subsection (1) is the period of twelve weeks beginning with the service of the notice under section 146. (3) The amount stated in a notice under subsection (1)(a)— (a) shall not be less than the minimum initial payment and not more than the maximum initial payment, and (b) may be varied at any time by notice in writing served on the landlord. (146B) (1) The landlord may, at any time after the end of the period specified in section 146A(2), serve on the tenant a written notice— (a) requiring him, if he has failed to serve the notice required by section 146A(1), to serve that notice within 28 days, and (b) informing him of the effect of this subsection and subsection (4). (2) At any time before the end of the period mentioned in subsection (1)(a) (or that period as previously extended) the landlord may by written notice served on the tenant extend it (or further extend it). (3) If at any time before the end of that period (or that period as extended under subsection (2)) the circumstances are such that it would not be reasonable to expect the tenant to comply with a notice under this section, that period (or that period as so extended) shall by virtue of this subsection be extended (or further extended) until 28 days after the time when those circumstances no longer obtain. (4) If the tenant does not comply with a notice under this section the notice claiming to exercise the right to acquire on rent to mortgage terms shall be deemed to be withdrawn at the end of that period (or, as the case may require, that period as extended under subsection (2) or (3)).

112

For section 147 of the 1985 Act there shall be substituted the following section—

(147) (1) Where a secure tenant has served— (a) a notice under section 146A(1)(a) stating that he intends to pursue his claim to exercise the right to acquire on rent to mortgage terms, and the amount of the initial payment which he proposes to make, or (b) a notice under section 146A(3)(b) varying the amount stated in a notice under section 146A(1)(a), the landlord shall, as soon as practicable, serve on the tenant a written notice complying with this section. (2) The notice shall state— (a) the landlord’s share on the assumption that the amount of the tenant’s initial payment is that stated in the notice under section 146A(1)(a) or, as the case may be, section 146A(3)(b), and (b) the amount of the initial discount on that assumption, determined in each case in accordance with section 148.

113

For section 148 of the 1985 Act there shall be substituted the following section—

(148) The landlord’s share shall be determined by the formula— $S=P-IPPx100$ the amount of the initial discount shall be determined by the formula— $ID=IPPxD$ and the amount of any previous discount which will be recovered by virtue of the transaction shall be determined by the formula— $$RD=IPPxPD$where—$ S = the landlord’s share expressed as a percentage; P = the price which would be payable if the tenant were exercising the right to buy; IP = the amount of the tenant’s initial payment (but disregarding any reduction in pursuance of section 153B(3)); ID = the amount of the initial discount; D = the amount of the discount which would be applicable if the tenant were exercising the right to buy; RD = the amount of any previous discount which will be recovered by virtue of the transaction; PD = the amount of any previous discount which would be recovered if the tenant were exercising the right to buy.

Change of landlord after notice claiming right

114

For section 149 of the 1985 Act there shall be substituted the following section—

(149) (1) Where the interest of the landlord in the dwelling-house passes from the landlord to another body after a secure tenant has given a notice claiming to exercise the right to acquire on rent to mortgage terms, all parties shall subject to subsection (2) be in the same position as if the other body— (a) had become the landlord before the notice was given, and (b) had been given that notice and any further notice given by the tenant to the landlord, and (c) had taken all steps which the landlord had taken. (2) If the circumstances after the disposal differ in any material respect, as for example where— (a) the interest of the disponee in the dwelling-house after the disposal differs from that of the disponor before the disposal, or (b) any of the provisions of Schedule 5 (exceptions to the right to buy) becomes or ceases to be applicable, all those concerned shall, as soon as practicable after the disposal, take all such steps (whether by way of amending or withdrawing and re-serving any notice or extending any period or otherwise) as may be requisite for the purpose of securing that all parties are, as nearly as may be, in the same position as they would have been if those circumstances had obtained before the disposal.

Duty of landlord to convey freehold or grant lease

115

For section 150 of the 1985 Act there shall be substituted the following section—

(150) (1) Where a secure tenant has claimed to exercise the right to acquire on rent to mortgage terms and that right has been established, then, as soon as all matters relating to the grant and to securing the redemption of the landlord’s share have been agreed or determined, the landlord shall make to the tenant— (a) if the dwelling-house is a house and the landlord owns the freehold, a grant of the dwelling-house for an estate in fee simple absolute, or (b) if the landlord does not own the freehold or if the dwelling-house is a flat (whether or not the landlord owns the freehold), a grant of a lease of the dwelling-house, in accordance with the following provisions of this Part. (2) If the tenant has failed to pay the rent or any other payment due from him as a tenant for a period of four weeks after it has been lawfully demanded from him, the landlord is not bound to comply with subsection (1) while the whole or part of that payment remains outstanding. (3) The duty imposed on the landlord by subsection (1) is enforceable by injunction.

Terms and effect of conveyance or grant: general

116

(1) For section 151 of the 1985 Act there shall be substituted the following section—

(151) (1) A conveyance of the freehold executed in pursuance of the right to acquire on rent to mortgage terms shall conform with Parts I and II of Schedule 6; a grant of a lease so executed shall conform with Parts I and III of that Schedule; and Part IV of that Schedule applies to such a conveyance or lease as it applies to a conveyance or lease executed in pursuance of the right to buy. (2) The secure tenancy comes to an end on the grant to the tenant of an estate in fee simple, or of a lease, in pursuance of the right to acquire on rent to mortgage terms; and if there is then a sub-tenancy section 139 of the Law of Property Act 1925 (effect of extinguishment of reversion) applies as on a merger or surrender.

(2) In Part III of Schedule 6 to the 1985 Act (terms of lease granted in pursuance of right to buy or right to acquire on rent to mortgage terms), after paragraph 16D there shall be inserted the following paragraph—

(16E) (1) Where a lease of a flat granted in pursuance of the right to acquire on rent to mortgage terms requires the tenant to pay— (a) service charges in respect of repairs (including works for the making good of structural defects), or (b) improvement contributions, his liability in respect of costs incurred at any time before the final payment is made is restricted as follows. (2) He is not required to pay any more than the amount determined by the formula— $$M=Px100-S100$where—$ M = the maximum amount which he is required to pay; P = the amount which, but for this paragraph, he would be required to pay; S = the landlord’s share at the time expressed as a percentage.

117

(1) After section 151 of the 1985 Act there shall be inserted the following section—

(151A) Schedule 6A (which makes provision for the redemption of the landlord’s share) shall have effect; and a conveyance of the freehold or a grant of a lease executed in pursuance of the right to acquire on rent to mortgage terms shall conform with that Schedule.

(2) After Schedule 6 to the 1985 Act there shall be inserted as Schedule 6A the Schedule set out in Schedule 16 to this Act.

118

After section 151A of the 1985 Act there shall be inserted the following section—

(151B) (1) The liability that may arise under the covenant required by paragraph 1 of Schedule 6A (covenant for the redemption of the landlord’s share in the circumstances there mentioned) shall be secured by a mortgage. (2) Subject to subsections (3) and (4), the mortgage shall have priority immediately after any legal charge securing an amount advanced to the secure tenant by an approved lending institution for the purpose of enabling him to exercise the right to acquire on rent to mortgage terms. (3) The following, namely— (a) any advance which is made otherwise than for the purpose mentioned in subsection (2) and is secured by a legal charge having priority to the mortgage, and (b) any further advance which is so secured, shall rank in priority to the mortgage if, and only if, the landlord by written notice served on the institution concerned gives its consent; and the landlord shall so give its consent if the purpose of the advance or further advance is an approved purpose. (4) The landlord may at any time by written notice served on an approved lending institution postpone the mortgage to any advance or further advance which— (a) is made to the tenant by that institution, and (b) is secured by a legal charge not having priority to the mortgage; and the landlord shall serve such a notice if the purpose of the advance or further advance is an approved purpose. (5) The approved lending institutions for the purposes of this section are— - the Corporation, - a building society, - a bank, - a trustee savings bank, - an insurance company, - a friendly society, and any body specified, or of a class or description specified, in an order made under section 156. (6) The approved purposes for the purposes of this section are— (a) to enable the tenant to make an interim or final payment, (b) to enable the tenant to defray, or to defray on his behalf, any of the following— (i) the cost of any works to the dwelling-house, (ii) any service charge payable in respect of the dwelling-house for works, whether or not to the dwelling-house, and (iii) any service charge or other amount payable in respect of the dwelling-house for insurance, whether or not of the dwelling-house, and (c) to enable the tenant to discharge, or to discharge on his behalf, any of the following— (i) so much as is still outstanding of any advance or further advance which ranks in priority to the mortgage, (ii) any arrears of interest on such an advance or further advance, and (iii) any costs and expenses incurred in enforcing payment of any such interest, or repayment (in whole or in part) of any such advance or further advance. (7) Where different parts of an advance or further advance are made for different purposes, each of those parts shall be regarded as a separate advance or further advance for the purposes of this section. (8) The Secretary of State may by order prescribe— (a) matters for which the deed by which the mortgage is effected must make provision, and (b) terms which must, or must not, be contained in that deed, but only in relation to deeds executed after the order comes into force. (9) The deed by which the mortgage is effected may contain such other provisions as may be— (a) agreed between the mortgagor and the mortgagee, or (b) determined by the county court to be reasonably required by the mortgagor or the mortgagee. (10) An order under this section— (a) may make different provision with respect to different cases or descriptions of case, including different provision for different areas, and (b) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Landlord’s notices to complete

119

(1) For subsection (3) of section 152 of the 1985 Act (landlord’s first notice to complete) there shall be substituted the following section—

(3) A notice under this section shall not be served earlier than twelve months after the service of the notice under section 146 (landlord’s notice admitting or denying right).

(2) In subsection (5) of that section, for the words “the amount to be left outstanding or advanced on the security of the dwelling-house” there shall be substituted the words “ securing the redemption of the landlord’s share ”.

(3) In subsection (4) of section 153 of the 1985 Act (landlord’s second notice to complete), for the words “the right to be granted a shared ownership lease” there shall be substituted the words “ the right to acquire on rent to mortgage terms ”.

Repayment of discount on early disposal

120

(1) For subsection (3) of section 155 of the 1985 Act (repayment of discount on early disposal) there shall be substituted the following subsection—

(3) In the case of a conveyance or grant in pursuance of the right to acquire on rent to mortgage terms, the covenant shall be to pay to the landlord on demand, if within the period of three years commencing with the making of the initial payment there is a relevant disposal which is not an exempted disposal (but if there is more than one such disposal, then only on the first of them), the discount (if any) to which the tenant was entitled on the making of— (a) the initial payment, (b) any interim payment made before the disposal, or (c) the final payment if so made, reduced, in each case, by one-third for each complete year which has elapsed after the making of the initial payment and before the disposal.

(2) In subsection (3A) of that section, for paragraph (b) there shall be substituted the following paragraph—

(b) any reference in subsection (3) (other than paragraph (a) thereof) to the making of the initial payment shall be construed as a reference to the date which precedes that payment by the period referred to in paragraph (a) of this subsection.

(3) For subsection (2) of section 156 of the 1985 Act (liability to repay discount is a charge on the premises) there shall be substituted the following subsections—

(2) Subject to subsections (2A) and (2B), the charge has priority as follows— (a) if it secures the liability that may arise under the covenant required by section 155(2), immediately after any legal charge securing an amount advanced to the secure tenant by an approved lending institution for the purpose of enabling him to exercise the right to buy; (b) if it secures the liability that may arise under the covenant required by section 155(3), immediately after the mortgage— (i) which is required by section 151B (mortgage for securing redemption of landlord’s share), and (ii) which, by virtue of subsection (2) of that section, has priority immediately after any legal charge securing an amount advanced to the secure tenant by an approved lending institution for the purpose of enabling him to exercise the right to acquire on rent to mortgage terms. (2A) The following, namely— (a) any advance which is made otherwise than for the purpose mentioned in paragraph (a) or (b) of subsection (2) and is secured by a legal charge having priority to the charge taking effect by virtue of this section, and (b) any further advance which is so secured, shall rank in priority to that charge if, and only if, the landlord by written notice served on the institution concerned gives its consent; and the landlord shall so give its consent if the purpose of the advance or further advance is an approved purpose. (2B) The landlord may at any time by written notice served on an approved lending institution postpone the charge taking effect by virtue of this section to any advance or further advance which— (a) is made to the tenant by that institution, and (b) is secured by a legal charge not having priority to that charge; and the landlord shall serve such a notice if the purpose of the advance or further advance is an approved purpose.

(4) After subsection (4) of that section there shall be inserted the following subsections—

(4A) The approved purposes for the purposes of this section are— (a) to enable the tenant to make an interim or final payment, (b) to enable the tenant to defray, or to defray on his behalf, any of the following— (i) the cost of any works to the dwelling-house, (ii) any service charge payable in respect of the dwelling-house for works, whether or not to the dwelling-house, and (iii) any service charge or other amount payable in respect of the dwelling-house for insurance, whether or not of the dwelling-house, and (c) to enable the tenant to discharge, or to discharge on his behalf, any of the following— (i) so much as is still outstanding of any advance or further advance which ranks in priority to the charge taking effect by virtue of this section, (ii) any arrears of interest on such an advance or further advance, and (iii) any costs and expenses incurred in enforcing payment of any such interest, or repayment (in whole or in part) of any such advance or further advance. (4B) Where different parts of an advance or further advance are made for different purposes, each of those parts shall be regarded as a separate advance or further advance for the purposes of this section.

Other rights of secure tenants

Right to have repairs carried out

121

For section 96 of the 1985 Act there shall be substituted the following section—

(96) (1) The Secretary of State may make regulations for entitling secure tenants whose landlords are local housing authorities, subject to and in accordance with the regulations, to have qualifying repairs carried out, at their landlords’ expense, to the dwelling-houses of which they are such tenants. (2) The regulations may make all or any of the following provisions, namely— (a) provision that, where a secure tenant makes an application to his landlord for a qualifying repair to be carried out, the landlord shall issue a repair notice— (i) specifying the nature of the repair, the listed contractor by whom the repair is to be carried out and the last day of any prescribed period; and (ii) containing such other particulars as may be prescribed; (b) provision that, if the contractor specified in a repair notice fails to carry out the repair within a prescribed period, the landlord shall issue a further repair notice specifying such other listed contractor as the tenant may require; and (c) provision that, if the contractor specified in a repair notice fails to carry out the repair within a prescribed period, the landlord shall pay to the tenant such sum by way of compensation as may be determined by or under the regulations. (3) The regulations may also make such procedural, incidental, supplementary and transitional provisions as may appear to the Secretary of State necessary or expedient, and may in particular— (a) require a landlord to take such steps as may be prescribed to make its secure tenants aware of the provisions of the regulations; (b) require a landlord to maintain a list of contractors who are prepared to carry out repairs for which it is responsible under the regulations; (c) provide that, where a landlord issues a repair notice, it shall give to the tenant a copy of the notice and the prescribed particulars of at least two other listed contractors who are competent to carry out the repair; (d) provide for questions arising under the regulations to be determined by the county court; and (e) enable the landlord to set off against any compensation payable under the regulations any sums owed to it by the tenant. (4) Nothing in subsection (2) or (3) shall be taken as prejudicing the generality of subsection (1). (5) Regulations under this section— (a) may make different provision with respect to different cases or descriptions of case, including different provision for different areas, and (b) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament. (6) In this section— - “listed contractor”, in relation to a landlord, means any contractor (which may include the landlord) who is specified in the landlord’s list of contractors; - “qualifying repair”, in relation to a dwelling-house, means any repair of a prescribed description which the landlord is obliged by a repairing covenant to carry out; - “repairing covenant”, in relation to a dwelling-house, means a covenant, whether express or implied, obliging the landlord to keep in repair the dwelling-house or any part of the dwelling-house; and for the purposes of this subsection a prescribed description may be framed by reference to any circumstances whatever.

Right to compensation for improvements

122

After section 99 of the 1985 Act there shall be inserted the following sections—

(99A) (1) The powers conferred by this section shall be exercisable as respects cases where a secure tenant has made an improvement and— (a) the work on the improvement was begun not earlier than the commencement of section 122 of the Leasehold Reform, Housing and Urban Development Act 1993, (b) the landlord, or a predecessor in title of the landlord (being a local authority), has given its written consent to the improvement or is to be treated as having given its consent, and (c) at the time when the tenancy comes to an end the landlord is a local authority and the tenancy is a secure tenancy. (2) The Secretary of State may make regulations for entitling the qualifying person or persons (within the meaning given by section 99B)— (a) at the time when the tenancy comes to an end, and (b) subject to and in accordance with the regulations, to be paid compensation by the landlord in respect of the improvement. (3) The regulations may provide that compensation shall be not payable if— (a) the improvement is not of a prescribed description, (b) the tenancy comes to an end in prescribed circumstances, (c) compensation has been paid under section 100 in respect of the improvement, or (d) the amount of any compensation which would otherwise be payable is less than a prescribed amount; and for the purposes of this subsection a prescribed description may be framed by reference to any circumstances whatever. (4) The regulations may provide that the amount of any compensation payable shall not exceed a prescribed amount but, subject to that, shall be determined by the landlord, or calculated, in such manner, and taking into account such matters, as may be prescribed. (5) The regulations may also make such procedural, incidental, supplementary and transitional provisions as may appear to the Secretary of State necessary or expedient, and may in particular— (a) provide for the manner in which and the period within which claims for compensation under the regulations are to be made, and for the procedure to be followed in determining such claims, (b) prescribe the form of any document required to be used for the purposes of or in connection with such claims, (c) provide for questions arising under the regulations to be determined by the district valuer or the county court, and (d) enable the landlord to set off against any compensation payable under the regulations any sums owed to it by the qualifying person or persons. (6) Nothing in subsections (3) to (5) shall be taken as prejudicing the generality of subsection (2). (7) Regulations under this section— (a) may make different provision with respect to different cases or descriptions of case, including different provision for different areas, and (b) shall be made by statutory instrument which (except in the case of regulations making only such provision as is mentioned in subsection (5)(b)) shall be subject to annulment in pursuance of a resolution of either House of Parliament. (8) For the purposes of this section and section 99B, a tenancy shall be treated as coming to an end if— (a) it ceases to be a secure tenancy by reason of the landlord condition no longer being satisfied, or (b) it is assigned, with the consent of the landlord— (i) to another secure tenant who satisfies the condition in subsection (2) of section 92 (assignments by way of exchange), or (ii) to an assured tenant who satisfies the conditions in subsection (2A) of that section. (99B) (1) A person is a qualifying person for the purposes of section 99A(2) if— (a) he is, at the time when the tenancy comes to an end, the tenant or, in the case of a joint tenancy at that time, one of the tenants, and (b) he is a person to whom subsection (2) applies. (2) This subsection applies to— (a) the improving tenant; (b) a person who became a tenant jointly with the improving tenant; (c) a person in whom the tenancy was vested, or to whom the tenancy was disposed of, under section 89 (succession to periodic tenancy) or section 90 (devolution of term certain) on the death of the improving tenant or in the course of the administration of his estate; (d) a person to whom the tenancy was assigned by the improving tenant and who would have been qualified to succeed him if he had died immediately before the assignment; (e) a person to whom the tenancy was assigned by the improving tenant in pursuance of an order made under section 24 of the Matrimonial Causes Act 1973 (property adjustment orders in connection with matrimonial proceedings); (f) a spouse or former spouse of the improving tenant to whom the tenancy has been transferred by an order under paragraph 2 of Schedule 1 to the Matrimonial Homes Act 1983. (3) Subsection (2)(c) does not apply in any case where the tenancy ceased to be a secure tenancy by virtue of section 89(3) or, as the case may be, section 90(3). (4) Where, in the case of two or more qualifying persons, one of them (“the missing person”) cannot be found— (a) a claim under regulations made under section 99A may be made by, and compensation under those regulations may be paid to, the other qualifying person or persons; but (b) the missing person shall be entitled to recover his share of any compensation so paid from that person or those persons. (5) In this section “the improving tenant” means— (a) the tenant by whom the improvement mentioned in section 99A(1) was made, or (b) in the case of a joint tenancy at the time when the improvement was made, any of the tenants at that time.

Right to information

123

After subsection (2) of section 104 of the 1985 Act (provision of information about tenancies) there shall be inserted the following subsection—

(3) A local authority which is the landlord under a secure tenancy shall supply the tenant, at least once in every relevant year, with a copy of such information relating to the provisions mentioned in subsection (1)(b) and (c) as was last published by it; and in this subsection “relevant year” means any period of twelve months beginning with an anniversary of the date of such publication.

Existing rights with respect to disposals by housing action trusts

124

(1) In subsection (2)(b) of section 79 of the Housing Act 1988 (disposals by housing action trusts), the words “in accordance with section 84 below” shall be omitted.

(2) For subsection (1) of section 84 of that Act (provisions applicable to disposals of dwelling-houses let on secure tenancies) there shall be substituted the following subsection—

(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 which would result in a person who, before the disposal, is a secure 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.

(3) In subsection (7) of that section—

(a) after the words “a disposal to which this section applies,” there shall be inserted the words “ or a disposal which would be such a disposal if subsection (1)(b) above were omitted, ”; and

(b) after the words “such further consultation” there shall be inserted the words “ or, as the case may be, such consultation ”.

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

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

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

New rights with respect to such disposals

125

(1) For subsections (2) and (3) of section 84 of the Housing Act 1988 (disposal by housing action trusts of dwelling-houses let on secure tenancies) there shall be substituted the following subsections—

(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.

(2) In subsection (4) of that section, for paragraphs (d) and (e) there shall be substituted the following paragraphs—

(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;

(3) For subsection (5) of that section there shall be substituted the following subsections—

(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).

(4) In subsection (6) of that section, after the words “subsection (5)” there shall be inserted the words “ or subsection (5A) ”.

(5) After that section there shall be inserted the following section—

(84A) (1) This section applies in relation to any house or block of flats specified in a notice under subsection (2) of section 84 above if— (a) in the case of a house, the tenant makes representations in accordance with paragraph (f) of subsection (4) of that section to the effect that he wishes to become a tenant of the local housing authority in whose area the house is situated; or (b) in the case of a block of flats, the majority of the tenants who make representations in accordance with that paragraph make representations to the effect that they wish to become tenants of the local housing authority in whose area the block is situated. (2) The Secretary of State shall by order provide for the transfer of the house or block of flats from the housing action trust to the local housing authority. (3) The Secretary of State may also by order transfer from the housing action trust to the local housing authority so much as appears to the Secretary of State to be appropriate of any property belonging to or usually enjoyed with the house or, as the case may be, the block or any flat contained in it; and for this purpose “property” includes chattels of any description and rights and liabilities, whether arising by contract or otherwise. (4) A transfer of any house, block of flats or other property under this section shall be on such terms, including financial terms, as the Secretary of State thinks fit; and an order under this section may provide that, 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 the tenant’s tenancy or any of the tenants’ tenancies, and (b) falls due before the date of the transfer, shall continue to be recoverable by the housing action trust to the exclusion of the authority. (5) Without prejudice to the generality of subsection (4) above, the financial terms referred to in that subsection may include provision for payments to a local housing authority (as well as or instead of payments by a local housing authority); and the transfer from a housing action trust of any house, block of flats or other property by virtue of this section shall not be taken to give rise to any right to compensation. (6) In this section— - “block of flats” means a building containing two or more flats; - “common parts”, in relation to a building containing two or more flats, means any parts of the building which the tenants of the flats are entitled under the terms of their tenancies to use in common with each other; - “flat” and “house” have the meanings given by section 183 of the Housing Act 1985; and any reference to a block of flats specified in a notice under section 84(2) above is a reference to a block in the case of which each flat which is let on a secure tenancy is so specified. (7) For the purposes of subsection (6) above, a building which contains— (a) one or more flats which are let, or available for letting, on secure tenancies by the housing action trust concerned, and (b) one or more flats which are not so let or so available, shall be treated as if it were two separate buildings, the one containing the flat or flats mentioned in paragraph (a) above and the other containing the flat or flats mentioned in paragraph (b) above and any common parts.

Housing welfare services

Provision of housing welfare services

126

Part II of the 1985 Act (provision of housing accommodation) shall have effect, and be deemed at all times on and after 1st April 1990 to have had effect, as if after section 11 there were inserted the following section—

(11A) (1) A local housing authority may provide in connection with the provision of housing accommodation by them (whether or not under this Part) such welfare services, that is to say, services for promoting the welfare of the persons for whom the accommodation is so provided, as accord with the needs of those persons. (2) The authority may make reasonable charges for welfare services provided by virtue of this section. (3) In this section “welfare services” does not include the repair, maintenance, supervision or management of houses or other property. (4) The powers conferred by this section shall not be regarded as restricting those conferred by section 137 of the Local Government Act 1972 (powers to incur expenditure for purposes not authorised by any other enactment) and accordingly the reference to any other enactment in subsection (1)(a) of that section shall not include a reference to this section.

Accounting for housing welfare services

127

Schedule 4 to the Local Government and Housing Act 1989 (the keeping of the Housing Revenue Account) shall have effect, and be deemed always to have had effect, as if—

(a) at the end of paragraph (b) of item 2 of Part I (credits to the account) there were inserted the words “ or income in respect of services provided under section 11A of that Act (power to provide welfare services) ”; and

(b) after paragraph 3 of Part III (special cases) there were inserted the following paragraph—

(3A) (1) This paragraph applies where in any year a local housing authority provide welfare services (within the meaning of section 11A of the Housing Act 1985) for persons housed by them in houses or other property within their Housing Revenue Account. (2) The authority may carry to the credit of the account— (a) an amount equal to the whole or any part of the income of the authority for the year from charges in respect of the provision of those services; (b) any sum from some other revenue account of theirs which represents the whole or any part of that income. (3) The authority may carry to the debit of the account— (a) an amount equal to the whole or any part of the expenditure of the authority for the year in respect of the provision of those services; (b) any sum from some other revenue account of theirs which represents the whole or any part of that expenditure.

Power to repeal provisions made by sections 126 and 127

128

(1) The Secretary of State may at any time by order made by statutory instrument provide that, on such day or in relation to such periods as may be appointed by the order, the provisions made by sections 126 and 127—

(a) shall cease to have effect; or

(b) shall cease to apply for such purposes as may be specified in the order.

(2) An order under this section—

(a) may appoint different days or periods for different provisions or purposes or for different authorities or descriptions of authority, and

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

Delegation of housing management

Management agreements

129

(1) At the end of subsection (3) of section 27 of the 1985 Act (management agreements), there shall be inserted the words “ and shall contain such provisions as may be prescribed by regulations made by the Secretary of State ”.

(2) For subsection (5) of that section there shall be substituted the following subsection—

(5) The Secretary of State’s approval may be given— (a) either generally to all local housing authorities or to a particular authority or description of authority, and (b) either in relation to a particular case or in relation to a particular description of case, and may be given unconditionally or subject to conditions.

(3) For subsection (6) of that section there shall be substituted the following subsections—

(6) References in this section to the management functions of a local housing authority in relation to houses or land— (a) do not include such functions as may be prescribed by regulations made by the Secretary of State, but (b) subject to that, include functions conferred by any statutory provision and the powers and duties of the authority as holder of an estate or interest in the houses or land in question. (7) Regulations under this section— (a) may make different provision with respect to different cases or descriptions of case, including different provision for different areas, (b) may contain such incidental, supplementary or transitional provisions as appear to the Secretary of State to be necessary or expedient, and (c) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Consultation with respect to management agreements

130

Management agreements and compulsory competitive tendering

131

Management agreements with tenant management organisations

132

(1) After section 27AA of the 1985 Act there shall be inserted the following section—

(27AB) (1) The Secretary of State may make regulations for imposing requirements on a local housing authority in any case where a tenant management organisation serves written notice on the authority proposing that the authority should enter into a management agreement with that organisation. (2) The regulations may make provision requiring the authority— (a) to provide or finance the provision of such office accommodation and facilities, and such training, as the organisation reasonably requires for the purpose of pursuing the proposal; (b) to arrange for such feasibility studies with respect to the proposal as may be determined by or under the regulations to be conducted by such persons as may be so determined; (c) to arrange for such ballots or polls with respect to the proposal as may be determined by or under the regulations to be conducted of such persons as may be so determined; and (d) in such circumstances as may be prescribed by the regulations (which shall include the organisation becoming registered if it has not already done so), to enter into a management agreement with the organisation. (3) The regulations may make provision with respect to any management agreement which is to be entered into in pursuance of the regulations— (a) for determining the houses and land to which the agreement should relate, and the amounts which should be paid under the agreement to the organisation; (b) requiring the agreement to be in such form as may be approved by the Secretary of State and to contain such provisions as may be prescribed by the regulations; (c) requiring the agreement to take effect immediately after the expiry or other determination of any previous agreement; and (d) where any previous agreement contains provisions for its determination by the authority, requiring the authority to determine it as soon as may be after the agreement is entered into. (4) The regulations may also make such procedural, incidental, supplementary and transitional provisions as may appear to the Secretary of State necessary or expedient, and may in particular make provision— (a) for particular questions arising under the regulations to be determined by the authority; (b) for other questions so arising to be determined by an arbitrator agreed to by the parties or, in default of agreement, appointed by the Secretary of State; (c) requiring any person exercising functions under the regulations to act in accordance with any guidance given by the Secretary of State; and (d) for enabling the authority, if invited to do so by the organisation concerned, to nominate one or more persons to be directors or other officers of any tenant management organisation with whom the authority have entered into, or propose to enter into, a management agreement. (5) Nothing in subsections (2) to (4) above shall be taken as prejudicing the generality of subsection (1). (6) Regulations under this section— (a) may make different provision with respect to different cases or descriptions of case, including different provision for different areas, and (b) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament. (7) Except as otherwise provided by regulations under this section— (a) a local housing authority shall not enter into a management agreement with a tenant management organisation otherwise than in pursuance of the regulations; and (b) the provisions of the regulations shall apply in relation to the entering into of such an agreement with such an organisation in place of— (i) the provisions of section 27A (consultation with respect to management agreements), (ii) in the case of secure tenants, the provisions of section 105 (consultation on matters of housing management), and (iii) in the case of an organisation which is associated with the authority, the provisions of section 33 of the Local Government Act 1988 (restrictions on contracts with local authority companies). (8) In this section— - “arbitrator” means a member of a panel approved for the purposes of the regulations by the Secretary of State; - “associated” shall be construed in accordance with section 33 of the Local Government Act 1988; - “previous agreement”, in relation to an agreement entered into in pursuance of the regulations, means a management agreement previously entered into in relation to the same houses and land; - “registered” means registered under the Industrial and Provident Societies Act 1965 or the Companies Act 1985; - “tenant management organisation” means a body which satisfies such conditions as may be determined by or under the regulations.

(2) Section 27C of the 1985 Act (which is superseded by this section) shall cease to have effect.

Priority of charges securing repayment of discount

Voluntary disposals by local authorities

133

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Leasehold Reform, Housing and Urban Development Act 1993

Jurisdiction of leasehold valuation tribunals

91

Enforcement of obligations under Chapters I and II

92

Agreements excluding or modifying rights of tenant under Chapter I or II

93

Crown land

94

Saving for National Trust

95

Property within cathedral precinct

96

Registration of notices, applications and orders under Chapters I and II

97

Power to prescribe procedure under Chapters I and II

98

Notices

99

Orders and regulations

100

General interpretation of Part I

101

Term date and other matters relating to periodical tenancies

102

Application of Part I to Isles of Scilly

103

Part II — PUBLIC SECTOR HOUSING

Chapter I — ENGLAND AND WALES

Right to buy

Landlord’s notice of purchase price and other matters

104

Tenant’s notice of intention etc

105

Exceptions to the right to buy

106

Abolition of certain ancillary rights

Abolition of right to a mortgage, right to defer completion and right to be granted a shared ownership lease

107

Right to acquire on rent to mortgage terms

Right to acquire on rent to mortgage terms

108

Tenant’s notice claiming right

109

Landlord’s notice admitting or denying right

110

Tenant’s notice of intention etc

111

Notice of landlord’s share and initial discount

112

Determination of landlord’s share, initial discount etc

113

Change of landlord after notice claiming right

114

Duty of landlord to convey freehold or grant lease

115

Terms and effect of conveyance or grant: general

116

Redemption of landlord’s share

117

Mortgage for securing redemption of landlord’s share

118

Landlord’s notices to complete

119

Repayment of discount on early disposal

120

Other rights of secure tenants

Right to have repairs carried out

121

Right to compensation for improvements

122

Right to information

123

Existing rights with respect to disposals by housing action trusts

124

New rights with respect to such disposals

125

Housing welfare services

Provision of housing welfare services

126