Leasehold Reform, Housing and Urban Development Act 1993

• (1) For subsection (2) of section 36 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 immediately after any legal charge securing an amount— (a) left outstanding by the purchaser, or (b) advanced to him by an approved lending institution for the purpose of enabling him to acquire the interest disposed of on the first disposal. (2A) The following, namely— (a) any advance which is made otherwise than for the purpose mentioned in subsection (2)(b) 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 local authority by written notice served on the institution concerned gives their consent; and the local authority shall so give their consent if the purpose of the advance or further advance is an approved purpose. (2B) The local authority 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 purchaser by that institution, and (b) is secured by a legal charge not having priority to that charge; and the local authority shall serve such a notice if the purpose of the advance or further advance is an approved purpose.

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

(5) The approved purposes for the purposes of this section are— (a) to enable the purchaser to defray, or to defray on his behalf, any of the following— (i) the cost of any works to the house, (ii) any service charge payable in respect of the house for works, whether or not to the house, and (iii) any service charge or other amount payable in respect of the house for insurance, whether or not of the house, and (b) to enable the purchaser 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. (6) 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.

Voluntary disposals by housing associations

134

Disposals of dwelling-houses by local authorities

Programmes for disposals

135

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Levy on disposals

136

• (1) For the purposes of this section a disposal of one or more dwelling-houses by a local authority to any person is a qualifying disposal if—

• (a) it requires the consent of the Secretary of State under section 32 of the 1985 Act (power to dispose of land held for the purposes of Part II), or section 43 of that Act (consent required for certain disposals not within section 32); and

• (b) the aggregate of the following, namely—

• (i) the number of dwelling-houses included in the disposal; and

• (ii) the number of dwelling-houses which, within any relevant period, have been previously or are subsequently disposed of by the authority to that person, or that person and any associates of his taken together,

exceeds 499 or, if the Secretary of State by order so provides, such other number as may be specified in the order.

• (2) In subsection (1) “relevant period” means—

• (a) any period of five years beginning after the commencement of this section and including the date of the disposal; or

• (b) if the Secretary of State by order so provides, any such other period beginning after that commencement and including that date as may be specified in the order.

• (3) A local authority which after the commencement of this section makes a disposal which is or includes, or which subsequently becomes or includes, a qualifying disposal shall be liable to pay to the Secretary of State a levy of an amount calculated in accordance with the formula—

$$L=(CR-D)xP$where—$

• (4) A formula determined for the purposes of item D in subsection (3) may include any variable which is included in a determination made for the purposes of section 80 of the 1989 Act (calculation of Housing Revenue Account subsidy).

• (4A) The power of the Secretary of State to determine a formula for the purposes of item D in subsection (3) shall include power to determine that, in such cases as he may determine, item D is to be taken to be equal to item CR.

• (5) The administrative arrangements for the payment of any levy under this section shall be such as may be specified in a determination made by the Secretary of State, and such a determination may in particular make provision as to—

• (a) the information to be supplied by authorities;

• (b) the form and manner in which, and the time within which, the information is to be supplied;

• (c) the payment of the levy in stages in such circumstances as may be provided in the determination;

• (d) the date on which payment of the levy (or any stage payment of the levy) is to be made;

• (e) the adjustment of any levy which has been paid in such circumstances as may be provided in the determination;

• (f) the payment of interest in such circumstances as may be provided in the determination; and

• (g) the rate or rates (whether fixed or variable, and whether or not calculated by reference to some other rate) at which such interest is to be payable;

and any such administrative arrangements shall be binding on local authorities.

• (6) Any amounts by way of levy or interest which are not paid to the Secretary of State as required by the arrangements mentioned in subsection (5) shall be recoverable in a court of competent jurisdiction.

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

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

• (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (10) Any sums received by the Secretary of State under this section shall be paid into the Consolidated Fund; and any sums paid by the Secretary of State by way of adjustment of levies paid under this section shall be paid out of money provided by Parliament.

• (11) Before making an order or determination under this section, the Secretary of State shall consult such representatives of local government as appear to him to be appropriate.

• (12) An order ... under this section—

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

• (b) may make different provision for different cases or descriptions of case, or for different authorities or descriptions of authority; and

• (c) may contain such transitional and supplementary provisions as the Secretary of State considers necessary or expedient.

• (13) Any determination under this section—

• (a) may make different provision for different cases or descriptions of case, or for different authorities or descriptions of authority; and

• (b) may be varied or revoked by a subsequent determination.

• (14) In this section—

• “the 1989 Act” means the Local Government and Housing Act 1989;

• “dwelling-house” has the same meaning as in Part 5 of the 1985 Act except that it does not include a hostel (as defined in section 622 of that Act) or any part of a hostel;

• “local authority” has the meaning given by section 4 of that Act;

• “long lease” means a lease for a term of years certain exceeding 21 years other than a lease which is terminable before the end of that term by notice given by or to the landlord;

• “subsidiary” has the same meaning as in section 61 of the Housing Act 1996 but as if references in subsection (2) of that section and section 60 of that Act to registered social landlords and landlords were references to housing associations (within the meaning of the Housing Associations Act 1985).

• (15) For the purposes of this section—

• (a) a disposal of any dwelling-house is to be disregarded if at the time of the disposal the local authority's interest in the dwelling-house is or was subject to a long lease;

• (b) two persons are associates of each other if—

• (i) one of them is a subsidiary of the other;

• (ii) they are both subsidiaries of some other person; or

• (iii) there exists between them such relationship or other connection as may be specified in a determination made by the Secretary of State; and

• (c) a description of authority may be framed by reference to any circumstances whatever.

Disposals: transitional provisions

137

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

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

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

• (4) If before the commencement of section 136 any statement was made by or on behalf of the Secretary of State—

• (a) that, if that section were then in force, he would make under that section such determinations as are set out in the statement, and

• (b) that, when that section comes into force, he is to be regarded as having made under that section the determinations set out in the statement,

those determinations shall have effect as if they had been validly made under that section at the time of the statement.

• (5) Any consultation undertaken—

• (a) before the commencement of section 136,

• (b) before the making of such a statement as is mentioned in subsection (4), and

• (c) in connection with determinations proposed to be set out in the statement,

shall be as effective, in relation to those determinations, as if that section had been in force at the time the consultation was undertaken.

Expenses on defective housing

Contributions in respect of certain post-March 1989 expenses

138

• (1) In section 157 of the Local Government and Housing Act 1989 (commutation of and interest on periodic payments of grants etc.), in subsection (8) (which changes certain contributions under section 569 of the 1985 Act from annual payments to lump sums), for paragraph (b) there shall be substituted the following paragraph—

(b) so much of any contributions in respect of an expense incurred on or after 1st April 1989 and before 1st April 1990 as have not been made before 1st April 1990

.

• (2) This section shall be deemed to have come into force on 1st January 1993.

Contributions in respect of certain pre-April 1989 expenses

139

• (1) Where—

• (a) before 1st April 1989 a local housing authority incurred any such expense as is referred to in subsection (1) of section 569 of the 1985 Act (assistance by way of reinstatement grant, repurchase or payments for owners of defective housing); and

• (b) before 1st January 1993, the Secretary of State has not made in respect of that expense any contribution of such a description as is referred to in subsection (2) of that section, as amended by section 157(8) of the Local Government and Housing Act 1989 (single commuted contributions),

any contributions in respect of that expense which are made under section 569 on or after 1st January 1993 shall be annual payments calculated and payable in accordance with the following provisions of this section.

• (2) The amount of the annual payment in respect of any relevant financial year shall be a sum equal to the relevant percentage of the annual loan charges referable to the amount of the expense incurred.

• (3) Notwithstanding that annual loan charges are calculated by reference to a 20 year period, annual payments made by virtue of this section shall be made only in respect of relevant financial years ending at or before the end of the period of 20 years beginning with the financial year in which, as the case may be—

• (a) the work in respect of which the reinstatement grant was payable was completed;

• (b) the acquisition of the interest concerned was completed; or

• (c) the payment referred to in subsection (1)(c) of section 569 was made.

• (4) Subsections (3) and (4) of section 569 (which determine the relevant percentage and the amount of the expense incurred) apply for the purposes of the preceding provisions of this section as they apply for the purposes of that section.

• (5) Nothing in this section affects the operation of subsection (6) of section 569 (terms etc. for payment of contributions).

• (6) In this section—

• “the annual loan charges referable to the amount of the expense incurred” means the annual sum which, in the opinion of the Secretary of State, would fall to be provided by a local housing authority for the payment of interest on, and the repayment of, a loan of that amount repayable over a period of 20 years;

• “relevant financial year” means the financial year beginning on 1st April 1991 and each successive financial year.

• (7) This section shall be deemed to have come into force on 1st January 1993.

Housing Revenue Account subsidy

Calculation of Housing Revenue Account subsidy

140

In subsection (1) of section 80 of the Local Government and Housing Act 1989 (determination of formulae for calculating Housing Revenue Account subsidy), the words “and for any year the first such determination shall be made before the 25th December immediately preceding that year” shall cease to have effect.

Chapter II — SCOTLAND

Rent to loan scheme

Eligibility for rent to loan scheme

141

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The rent to loan scheme

142

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Rent to loan scheme: related amendments

143

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Right to purchase

Abatement of purchase price

144

After section 66 of the 1987 Act there shall be inserted the following sections—

(66A) (1) Where a tenant who seeks to exercise a right to purchase a house under section 61 has served an application to purchase on the landlord and the landlord— (a) not having served a notice of refusal, has failed to serve an offer to sell on the tenant within 2 months of the application or, where an amended offer to sell falls to be served on the tenant under subsection (3) of section 63, has failed to do so within the time limit specified in that subsection; (b) having agreed to serve an amended offer to sell on the tenant in response to a request under section 65(1), has failed to do so within one month of the request; (c) following an order by the Lands Tribunal to serve an amended offer to sell on the tenant under section 65(3), has failed to do so within 2 months of the date of the order; (d) following a finding by the Lands Tribunal under section 68(4), has failed to serve an offer to sell within 2 months of the date of the finding; or (e) following an order by the Lands Tribunal under section 71(2)(b), has failed to serve an offer or amended offer to sell within the time specified in the order, the tenant may serve on the landlord a notice in writing requiring the landlord to serve on him, within one month of the date of the notice, the offer to sell or (as the case may be) the amended offer to sell which the landlord has failed to serve. (2) Where the landlord fails to serve the offer to sell or the amended offer to sell within one month of the date of the notice in writing under subsection (1), the price fixed under section 62 shall be reduced by the amount of rent paid by the tenant during the period commencing with the date on which the one month period expired and ending with the date on which the offer is served. (66B) (1) Where the landlord has failed and continues to fail to deliver a good and marketable title to the tenant in accordance with the contract of sale, the tenant may at any time serve on the landlord a notice (the “initial notice of delay”) setting out the landlord’s failure and specifying— (a) the most recent action of which the tenant is aware which has been taken by the landlord in fulfilment of his duties under this Part; (b) a period (the “response period”), of not 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 (2) will have the effect of cancelling the initial notice of delay. (2) If 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 grant a good and marketable title to the tenant in implementation of the contract of sale, the landlord may serve on the tenant a counter notice either during or after the response period. (3) At any time when— (a) the response period specified in the initial notice of delay has expired; and (b) the landlord has not served a counter notice under subsection (2), the tenant may serve on the landlord a notice (the “operative notice of delay”) that this subsection shall apply to the price fixed under section 62; and thereupon the price fixed under section 62 shall be reduced by the amount of rent paid by the tenant during the period commencing with the date of service of the operative notice of delay and ending with whichever is the earlier of the following dates— (i) the date of service by the landlord of a counter notice; or (ii) the date of delivery by the landlord of a good and marketable title in implementation of the contract of sale. (4) Where the landlord has served a counter notice under subsection (2) the tenant (together with any joint purchaser) may, by serving on the clerk to the Lands Tribunal a copy of the initial notice of delay and of the landlord’s counter notice together with a request for the matter to be so referred, refer the matter to the Tribunal for its consideration under subsection (5). (5) Where the matter has been so referred to the Lands Tribunal it shall consider whether or not in its opinion action which would have enabled a good and marketable title to be delivered in implementation of the contract of sale could have been taken by the landlord and shall find accordingly. (6) Where the Lands Tribunal finds that action could have been taken by the landlord the tenant shall be entitled to serve an operative notice of delay as if the landlord had not served a counter notice and in that event the commencement date for the purposes of subsection (3) shall be the date on which an operative notice of delay could first have been served if no counter notice had been served. (66C) (1) Where there is more than one period in respect of which the price fixed under section 62 can be reduced under section 66A(2) or 66B(3), the periods may be aggregated and the price reduced by the total amount of the rent. (2) If the period in respect of which the price fixed can be so reduced is, or if the periods aggregated under subsection (1) together amount to, more than twelve months, the amount by which the price fixed under section 62 would, apart from this subsection, fall to be reduced shall be increased by 50% or such other percentage as the Secretary of State may by order made by statutory instrument and subject to annulment in pursuance of a resolution of either House of Parliament provide.

Effect of abatement of purchase price on recovery of discount

145

In section 72 of the 1987 Act (recovery of discount on early resale), after subsection (1) there shall be inserted the following subsection—

(1A) Where a tenant has served on the landlord a notice under section 66A(1), the commencement of the period of 3 years referred to in subsection (1) shall be backdated by a period equal to the time (or, where section 66C(1) applies, the aggregate of the times) during which, by virtue of section 66A(2), any payment of rent falls to be taken into account.

Other rights of secure tenants

Right to have repairs carried out

146

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Right to compensation for improvements

147

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Right to information

148

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Housing welfare services

Provision of housing welfare services

149

Part I of the 1987 Act shall have effect, and be deemed always to have had effect, as if after section 5 there were inserted the following section—

(5A) (1) A local authority may provide in connection with housing accommodation provided 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 local authority may make reasonable charges for welfare services provided by virtue of this section. (3) Notwithstanding the provisions of section 203, a local authority may attribute the income from and the expenditure on the welfare services provided under subsection (1) to a revenue account other than their housing revenue account. (4) In this section “welfare services” does not include the repair, maintenance, supervision or management of houses or other property. (5) The powers conferred by this section shall not be regarded as restricting those conferred by section 83 of the Local Government (Scotland) Act 1973 (power to incur expenditure for purposes not otherwise authorised) and accordingly the reference in subsection (1) of that section to any other enactment shall not include a reference to this section.

Accounting for housing welfare services

150

Schedule 15 to the 1987 Act (the housing revenue account) shall have effect, and be deemed always to have had effect, as if after paragraph 4 there were inserted the following paragraph—

(4A) Where in any year a local authority provide welfare services under section 5A, they may— (a) carry to the credit of the housing revenue account 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) carry to the debit of the account 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.

Power to repeal provisions relating to housing welfare services

151

After section 5A of the 1987 Act there shall be inserted the following section—

(5B) (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, section 5A, this section and paragraph 4A of Schedule 15 shall— (a) cease to have effect; or (b) cease to apply for such purposes as may be specified in the order. (2) An order under this section may— (a) appoint different days or periods for different provisions or purposes or for different authorities or descriptions of authority; and (b) contain such incidental, supplementary or transitional provisions as appear to the Secretary of State to be necessary or expedient.

Miscellaneous

Management agreements with housing co-operatives

152

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Standards and performance in housing management

153

After section 17 of the 1987 Act there shall be inserted the following sections—

(17A) (1) A local authority shall, in relation to their management of the houses which they hold for housing purposes, publish each year such information as— (a) may be prescribed by the Secretary of State about— (i) the standard of service of management which the authority undertake to provide; (ii) the authority’s performance in the past in the achievement of that standard; (iii) the authority’s intentions for the future in relation to the achievement of that standard; (iv) any other matter which he thinks should be included in the information to be published; (b) the authority consider it appropriate to publish in relation to the matters mentioned in paragraph (a) above, either as a result of having consulted tenants or otherwise; (c) the authority consider it appropriate to publish in relation to any other matter, either as a result of consulting tenants or otherwise. (2) Before publishing such information, a local authority shall consult their tenants as to the information to be published under subsection (1) and shall take account of the characteristics of the different parts of their districts or areas and of the difference in information which may be appropriate in relation to these parts. (3) The Secretary of State may direct a local authority to consult tenants or groups of tenants representing less than the whole of their district or area. (17B) At the same time as the information is published, the local authority shall send a copy of the document in which it is published to the Secretary of State who may, if he considers that the publication is unsatisfactory, direct the local authority to publish the information in such manner as he specifies in the direction. (17C) A local authority shall, if the Secretary of State gives them notice to do so, prepare and submit to him within 3 months after such notice, a plan for the management of the houses which they hold for housing purposes.

Further provision as to allocation of housing

154

In section 20 of the 1987 Act (persons to have priority on housing list and allocation of housing) at the end there shall be added the following subsection—

(3) A member of a local authority shall be excluded from a decision on the allocation of local authority housing, or of housing in respect of which the local authority may nominate the tenant, where— (a) the house in question is situated; or (b) the applicant for the house in question resides, in the electoral division or ward for which that member is elected.

Rules relating to housing list

155

• (1) For subsection (1) of section 21 of the 1987 Act (publication of rules relating to the housing list) there shall be substituted the following subsection—

(1) It shall be the duty— (a) of every local authority to make and to publish in accordance with subsection (4), and again within 6 months of any alteration thereof, rules governing— (i) the admission of applicants to any housing list; (ii) the priority of allocation of houses; (iii) the transfer of tenants from houses owned by the landlord to houses owned by other bodies; (iv) exchanges of houses; (b) of Scottish Homes and development corporations (including urban development corporations) to publish in accordance with subsection (4), and again within 6 months of any alteration thereof, any rules they may have governing the matters set out in sub-paragraphs (i) to (iv) of paragraph (a) above.

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

Defective dwellings: damages for landlord’s failure to notify

156

After subsection (3) of section 299 of the 1987 Act (jurisdiction of sheriff) there shall be added the following subsections—

(4) Where damages are awarded in proceedings commenced before 1st December 1994 which arise out of a failure on the part of the public sector authority to give a person acquiring a relevant interest in a dwelling notice in writing under section 291, the amount of damages for the purposes of this subsection shall be equal to the difference between— (a) the market value of the dwelling assessed as if it were not a defective dwelling and were available for sale on the open market with vacant possession; and (b) the market value of the dwelling assessed as a defective dwelling and as if available for sale on the open market with vacant possession. (5) Subsection (4) applies in relation to proceedings which arise out of a failure by the authority before the coming into force of section 156 of the Leasehold Reform, Housing and Urban Development Act 1993 as it does to proceedings which arise out of a failure by the authority after that date.

Other amendments of 1987 Act

157

• (1) In section 17 of the 1987 Act (management of local authority houses), in subsection (1), the words “and exercised by” shall cease to have effect.

• (2) In section 61 of that Act (secure tenant’s right to purchase), in subsection (10), subparagraphs (i) and (ii) of paragraph (b) shall cease to have effect.

• (3) In section 62 of that Act (price)—

• (a) in subsection (3)(b), the words “continuous” and “immediately” shall cease to have effect;

• (b) after subsection (3) there shall be inserted—

(3A) There shall be deducted from the discount an amount equal to any previous discount, or the aggregate of any previous discounts, received by the appropriate person on any previous purchase of a house by any of these persons from a landlord who is a person specified in subsection (11) of section 61 or prescribed in an order made under that subsection, reduced by any amount of such previous discount recovered by such a landlord.

;

• (c) in subsection (4)—

• (i) for paragraph (a) there shall be substituted—

(a) the “appropriate person” is whoever of— (i) the tenant; or (ii) the tenant’s spouse if living with him at the date of service of the application to purchase; or (iii) a deceased spouse if living with the tenant at the time of death; or (iv) any joint tenant who is a joint purchaser of the house, has the longer or longest such occupation;

and

• (ii) at the end there shall be inserted— “ and, for the purposes of subsection (3A), the “appropriate person” is any of the persons mentioned in sub-paragraphs (i) to (iv) of paragraph (a). ”

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

Part III — DEVELOPMENT OF URBAN AND OTHER AREAS

The Urban Regeneration Agency

The Agency

158

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Objects of Agency

159

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General powers of Agency

160

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Vesting of land by order

161

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Acquisition of land

162

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Power to enter and survey land

163

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Financial assistance

164

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Connection of private streets to highway

165

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The Agency: supplemental

Consents of Secretary of State

166

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Guidance and directions by Secretary of State

167

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Validity of transactions

168

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Supplementary provisions as to vesting and acquisition of land

169

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Designation orders and their effect

Power to make designation orders

170

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Agency as local planning authority

171

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Adoption of private streets

172

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Traffic regulation orders for private streets

173

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Other functions of Secretary of State

Financial assistance for urban regeneration

174

Power to appoint Agency as agent

175

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Power to direct disposal of unused etc. land held by public bodies

176

• (1) In subsection (1) of section 98 (disposal of land by public bodies at direction of Secretary of State) of the Local Government, Planning and Land Act 1980 (“the 1980 Act”)—

• (a) in paragraph (a), for the words “is for the time being entered on a register maintained by him under section 95 above” there shall be substituted the words “ for the time being satisfies the conditions specified in section 95(2) above ”; and

• (b) in paragraph (b), for the words “is for the time being entered on such a register” there shall be substituted the words “ for the time being satisfies those conditions ”.

• (2) In section 99A of that Act (powers of entry), subsection (2) (which precludes entry on land which is not for the time being entered on a register maintained under section 95) shall cease to have effect.

Urban development corporations

Power to act as agents of Agency

177

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Powers with respect to private streets

178

For section 157 of the 1980 Act (highways) there shall be substituted the following sections—

(157) (1) Where any street works have been executed on any land in an urban development area which was then or has since become a private street (or part of a private street), the urban development corporation may serve a notice (an “adoption notice”) on the street works authority requiring the authority to declare the street (or part) to be a highway which for the purposes of the Highways Act 1980 is a highway maintainable at the public expense. (2) Within the period of two months beginning with the date on which the adoption notice was served, the street works authority may appeal against the notice to the Secretary of State. (3) After considering any representations made to him by the corporation and the street works authority, the Secretary of State shall determine an appeal under subsection (2) above by setting aside or confirming the adoption notice (with or without modifications). (4) Where, under subsection (3) above, the Secretary of State confirms the adoption notice— (a) he may at the same time impose conditions (including financial conditions) upon the corporation with which it must comply in order for the notice to take effect; and (b) with effect from such date as the Secretary of State may specify, the street (or part) shall become a highway which for the purposes of the Highways Act 1980 is a highway maintainable at the public expense. (5) Where a street works authority neither complies with the adoption notice, nor appeals under subsection (2) above, the street (or part) shall become, upon the expiry of the period of two months referred to in subsection (2) above, a highway which for the purposes of the Highways Act 1980 is a highway maintainable at the public expense. (6) In this section— - “highway” has the same meaning as in the Highways Act 1980; - “private street”, “street works” and “street works authority” have the same meanings as in Part XI of that Act. (7) This section does not extend to Scotland. (157A) (1) An urban development corporation may serve a notice (a “connection notice”) on the local highway authority requiring the authority to connect a private street in the urban development area to an existing highway (whether or not it is a highway which for the purposes of the Highways Act 1980 is a highway maintainable at the public expense). (2) A connection notice must specify— (a) the private street and the existing highway; (b) the works which appear to the corporation to be necessary to make the connection; and (c) the period within which those works should be carried out. (3) Before serving a connection notice an urban development corporation shall consult the local highway authority about the proposed contents of the notice. (4) Within the period of two months beginning with the date on which the connection notice was served, the local highway authority may appeal against the notice to the Secretary of State. (5) After considering any representations made to him by the corporation and the local highway authority, the Secretary of State shall determine an appeal under subsection (4) above by setting aside or confirming the connection notice (with or without modifications). (6) A connection notice becomes effective— (a) where no appeal is made within the period of two months referred to in subsection (4) above, upon the expiry of that period; (b) where an appeal is made within that period but is withdrawn before it has been determined by the Secretary of State, on the date following the expiry of the period of 21 days beginning with the date on which the Secretary of State is notified of the withdrawal; (c) where an appeal is made and the connection notice is confirmed by a determination under subsection (5) above, on such date as the Secretary of State may specify in the determination. (7) Where a connection notice becomes effective, the local highway authority shall carry out the works specified in the notice within such period as may be so specified and may recover from the corporation the expenses reasonably incurred by them in doing so. (8) If the local highway authority do not carry out the works specified in the notice within such period as may be so specified, the corporation may themselves carry out or complete those works or arrange for another person to do so. (9) In this section— - “highway” and “local highway authority” have the same meanings as in the Highways Act 1980; - “private street” has the same meaning as in Part XI of that Act. (10) This section does not extend to Scotland. (157B) (1) Where— (a) an urban development corporation submits to the Secretary of State that an order under this section should be made in relation to any road in the urban development area which is a private street; and (b) it appears to the Secretary of State that the traffic authority do not intend to make an order under section 1 or, as the case may be, section 6 of the Road Traffic Regulation Act 1984 (orders concerning traffic regulation) in relation to the road, the Secretary of State may by order under this section make in relation to the road any such provision as he might have made by order under that section if he had been the traffic authority. (2) The Road Traffic Regulation Act 1984 applies to an order under this section as it applies to an order made by the Secretary of State under section 1 or, as the case may be, section 6 of that Act in relation to a road for which he is the traffic authority. (3) In this section— - “private street” has the same meaning as in Part XI of the Highways Act 1980; - “road” and “traffic authority” have the same meanings as in the Road Traffic Regulation Act 1984. (4) This section does not extend to Scotland.

Adjustment of areas

179

• (1) After subsection (3) of section 134 (urban development areas) of the 1980 Act there shall be inserted the following subsections—

(3A) The Secretary of State may by order alter the boundaries of any urban development area so as to exclude any area of land. (3B) Before making an order under subsection (3A) above, the Secretary of State shall consult any local authority the whole or any part of whose area is included in the area of land to be excluded by the order.

• (2) In subsection (4) of that section, for the words “this section” there shall be substituted the words “ subsection (1) above ”.

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

(5) The power to make an order under subsection (3A) above— (a) shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament; and (b) shall include power to make such incidental, consequential, transitional or supplementary provision as the Secretary of State thinks fit.

• (4) In section 135(2) of that Act (establishment of urban development corporations), for the words “section 134” there shall be substituted the words “ section 134(1) ”.

• (5) In section 171 of that Act (interpretation of Part XVI: general), for the definition of “urban development area” there shall be substituted the following definition—

“urban development area” means so much of an area designated by an order under subsection (1) of section 134 above as is not excluded from it by an order under subsection (3A) of that section;

.

Transfers of property, rights and liabilities

180

• (1) In subsection (1) of section 165 of the 1980 Act (power to transfer undertaking of urban development corporation), after the words “local authority”, in both places where they occur, there shall be inserted the words “ or other body ”.

• (2) Subsection (3) of that section (transfer of liabilities by order) shall cease to have effect; and after that section there shall be inserted the following section—

(165A) (1) Subject to this section, the Secretary of State may at any time by order transfer to himself, upon such terms as he thinks fit, any property, rights or liabilities which— (a) are for the time being vested in an urban development corporation, and (b) are not proposed to be transferred under an agreement made under section 165 above and approved by the Secretary of State with the Treasury’s concurrence. (2) An order under this section may terminate— (a) any appointment of the corporation under subsection (1) of section 177 of the Leasehold Reform, Housing and Urban Development Act 1993 (power of corporations to act as agents of the Urban Regeneration Agency); and (b) any arrangements made by the corporation under subsection (2) of that section. (3) Before making an order under this section, the Secretary of State shall consult each local authority in whose area all or part of the urban development area is situated. (4) An order under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

• (3) In subsection (9) of that section—

• (a) after the words “this section” there shall be inserted the words “ and sections 165A and 166 below ”;

• (b) for the words “the section”, in both places where they occur, there shall be substituted the words “ the sections ”.

• (4) For subsection (1) of section 166 of that Act (dissolution of urban development corporations) there shall be substituted the following subsection—

(1) Where all property, rights and liabilities of an urban development corporation have been transferred under or by one or more relevant instruments, the Secretary of State may make an order by statutory instrument under this section.

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

(5) In this section “relevant instrument” means an agreement made under section 165 above or an order made under section 165A above.

Miscellaneous

No compensation where planning decision made after certain acquisitions

181

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

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

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

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

Powers of housing action trusts with respect to private streets

182

• (1) In subsection (1) of section 69 of the Housing Act 1988 (powers of housing action trusts with respect to private streets), for the words “in a private street (or part of a private street) in a designated area” there shall be substituted the words “ on any land in a designated area which was then or has since become a private street (or part of a private street) ”.

• (2) In subsection (2) of that section, the words from “on grounds” onwards shall be omitted.

Supplemental

Notices

183

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

Dissolution of English Industrial Estates Corporation

184

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

Interpretation of Part III

185

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

Part IV — SUPPLEMENTAL

Financial provisions

186

• (1) There shall be paid out of money provided by Parliament—

• (a) any expenses of the Secretary of State incurred in consequence of this Act; and

• (b) any increase attributable to this Act in the sums payable out of money so provided under any other enactment.

• (2) There shall be paid into the Consolidated Fund any increase attributable to this Act in the sums payable into that Fund under any other enactment.

Amendments and repeals

187

• (1) The enactments mentioned in Schedule 21 to this Act shall have effect subject to the amendments there specified (being minor amendments and amendments consequential on the provisions of this Act).

• (2) The enactments mentioned in Schedule 22 to this Act (which include some that are spent or no longer of practical utility) are hereby repealed to the extent specified in the third column of that Schedule.

Short title, commencement and extent

188

• (1) This Act may be cited as the Leasehold Reform, Housing and Urban Development Act 1993.

• (2) This Act, except—

• (a) this section;

• (b) sections 126 and 127, 135 to 140, 149 to 151, 181(1), (2) and (4) and 186; and

• (c) the repeal in section 80(1) of the Local Government and Housing Act 1989,

shall come into force on such day as the Secretary of State may by order made by statutory instrument appoint; and different days may be so appointed for different provisions or for different purposes.

• (3) An order under subsection (2) may contain such transitional provisions and savings (whether or not involving the modification of any statutory provision) as appear to the Secretary of State necessary or expedient in connection with the provisions thereby brought into force by the order.

• (4) The following, namely—

• (a) Part I of this Act;

• (b) Chapter I of Part II of this Act; and

• (c) subject to subsection (6), Part III of this Act,

extend to England and Wales only.

• (5) Chapter II of Part II of this Act extends to Scotland only.

• (6) In Part III of this Act—

• (a) sections [174], 179 and 180 also extend to Scotland; ...

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

• (7) This Part, except this section, paragraph 3 of Schedule 21 and the repeals in the House of Commons Disqualification Act 1975 and the Northern Ireland Assembly Disqualification Act 1975, does not extend to Northern Ireland.

SCHEDULE 1

Part I — THE REVERSIONER

Freeholder to be reversioner

1

Subject to paragraphs 2 to 4, in a case to which section 9(2) applies, the reversioner in respect of any premises is the person who owns the freehold of those premises.

Replacement of freeholder by other relevant landlord

2

The court may, on the application of all the relevant landlords of any premises, appoint to be the reversioner in respect of those premises (in place of the person designated by paragraph 1) such person as may have been determined by agreement between them.

3

If it appears to the court, on the application of a relevant landlord of any premises—

• (a) that the respective interests of the relevant landlords of those premises, the absence or incapacity of the person referred to in paragraph 1 or other special circumstances require that some person other than the person there referred to should act as the reversioner in respect of the premises, or

• (b) that the person referred to in that paragraph is unwilling to act as the reversioner,

the court may appoint to be the reversioner in respect of those premises (in place of the person designated by paragraph 1) such person as it thinks fit.

4

The court may also, on the application of any of the relevant landlords or of the nominee purchaser, remove the reversioner in respect of any premises and appoint another person in his place, if it appears to the court proper to do so by reason of any delay or default, actual or apprehended, on the part of the reversioner.

5

A person appointed by the court under any of paragraphs 2 to 4—

• (a) must be a relevant landlord; but

• (b) may be so appointed on such terms and conditions as the court thinks fit.

Part II — CONDUCT OF PROCEEDINGS ON BEHALF OF OTHER LANDLORDS

Acts of reversioner binding on other landlords

6

• (1) Without prejudice to the generality of section 9(3)—

• (a) any notice given by or to the reversioner under this Chapter or section 74(3) following the giving of the initial notice shall be given or received by him on behalf of all the relevant landlords; and

• (b) the reversioner may on behalf and in the name of all or (as the case may be) any of those landlords—

• (i) deduce, evidence or verify the title to any property;

• (ii) negotiate and agree with the nominee purchaser the terms of acquisition;

• (iii) execute any conveyance for the purpose of transferring any interest to the nominee purchaser;

• (iv) receive the price payable for the acquisition of any interest;

• (v) take or defend any legal proceedings under this Chapter in respect of matters arising out of the initial notice.

• (2) Subject to paragraph 7—

• (a) the reversioner’s acts in relation to matters within the authority conferred on him by section 9(3), and

• (b) any determination of the court or the appropriate tribunal under this Chapter in proceedings between the reversioner and the nominee purchaser,

shall be binding on the other relevant landlords and on their interests in the specified premises or any other property; but in the event of dispute the reversioner or any of the other relevant landlords may apply to the court for directions as to the manner in which the reversioner should act in the dispute.

• (3) If any of the other relevant landlords cannot be found, or his identity cannot be ascertained, the reversioner shall apply to the court for directions and the court may make such order as it thinks proper with a view to giving effect to the rights of the participating tenants and protecting the interests of other persons, but subject to any such directions—

• (a) the reversioner shall proceed as in other cases;

• (b) any conveyance executed by the reversioner on behalf of that relevant landlord which identifies the interest to be conveyed shall have the same effect as if executed in his name; and

• (c) any sum paid as the price for the acquisition of that relevant landlord’s interest, and any other sum payable to him by virtue of Schedule 6, shall be paid into court.

• (4) The reversioner, if he acts in good faith and with reasonable care and diligence, shall not be liable to any of the other relevant landlords for any loss or damage caused by any act or omission in the exercise or intended exercise of the authority conferred on him by section 9(3).

Other landlords acting independently

7

• (1) Notwithstanding anything in section 9(3) or paragraph 6, any of the other relevant landlords shall, at any time after the giving by the reversioner of a counter-notice under section 21 and on giving notice of his intention to do so to both the reversioner and the nominee purchaser, be entitled—

• (a) to deal directly with the nominee purchaser in connection with any of the matters mentioned in sub-paragraphs (i) to (iii) of paragraph 6(1)(b) so far as relating to the acquisition of any interest of his;

• (b) to be separately represented in any legal proceedings in which his title to any property comes in question, or in any legal proceedings relating to the terms of acquisition so far as relating to the acquisition of any interest of his.

• (2) If the nominee purchaser so requires by notice given to the reversioner and any of the other relevant landlords, that landlord shall deal directly with the nominee purchaser for the purpose of deducing, evidencing or verifying the landlord’s title to any property.

• (3) Any of the other relevant landlords may by notice given to the reversioner require him to apply to the appropriate tribunal for the determination by the tribunal of any of the terms of acquisition so far as relating to the acquisition of any interest of the landlord.

• (4) Any of the other relevant landlords may also, on giving notice to the reversioner and the nominee purchaser, require that the price payable for the acquisition of his interest shall be paid by the nominee purchaser to him, or to a person authorised by him to receive it, instead of to the reversioner; but if, after being given proper notice of the time and method of completion with the nominee purchaser, either—

• (a) he fails to notify the reversioner of the arrangements made with the nominee purchaser to receive payment, or

• (b) having notified the reversioner of those arrangements, the arrangements are not duly implemented,

the reversioner shall be authorised to receive the payment for him, and the reversioner’s written receipt for the amount payable shall be a complete discharge to the nominee purchaser.

Obligations of other landlords to reversioner

8

• (1) It shall be the duty of each of the other relevant landlords—

• (a) (subject to paragraph 7) to give the reversioner all such information and assistance as he may reasonably require; and

• (b) after being given proper notice of the time and method of completion with the nominee purchaser, to ensure that all deeds and other documents that ought on his part to be delivered to the nominee purchaser on completion are available for the purpose, including in the case of registered land the land certificate and any other documents necessary to perfect the nominee purchaser’s title;

and, if any of the other relevant landlords fails to comply with this sub-paragraph, that relevant landlord shall indemnify the reversioner against any liability incurred by the reversioner in consequence of the failure.

• (2) Each of the other relevant landlords shall make such contribution as shall be just to the costs and expenses properly incurred by the reversioner in pursuance of section 9(3) which are not recoverable or not recovered from the nominee purchaser or any other person.

Applications made by other landlords under section 23(1)

9

The authority given to the reversioner by section 9(3) shall not extend to the bringing of proceedings under section 23(1) on behalf of any of the other relevant landlords, or preclude any of those landlords from bringing proceedings under that provision on his own behalf.

SCHEDULE 2

Interpretation

1

• (1) In this Schedule—

• “Chapter I landlord” means a person who is, in relation to a claim made under Chapter I, a relevant landlord within the meaning of that Chapter;

• “Chapter II landlord” means a person who is, in relation to a claim made under Chapter II, the landlord within the meaning of that Chapter or any of the other landlords (as defined by section 40(4));

• “debenture holders’ charge” means a charge (whether a floating charge or not) in favour of the holders of a series of debentures issued by a company or other body of persons, or in favour of trustees for such debenture holders;

• “mortgage” includes a charge or lien, and related expressions shall be construed accordingly;

• “the relevant notice” means—in relation to a Chapter I landlord, the notice given under section 13, andin relation to a Chapter II landlord, the notice given under section 42.

• (2) In paragraphs 5 to 8 any reference to a premium payable on the grant of a lease includes a reference to any other amount payable by virtue of Schedule 13 in connection with its grant.

Mortgagee in possession of landlord’s interest

2

• (1) Where—

• (a) the interest of a Chapter I or Chapter II landlord is subject to a mortgage, and

• (b) the mortgagee is in possession,

all such proceedings arising out of the relevant notice as would apart from this sub-paragraph be taken by or in relation to that landlord (“the mortgagor”) shall, as regards his interest, be conducted by and through the mortgagee as if he were that landlord; but this sub-paragraph shall not, in its application to a Chapter I landlord, affect the operation in relation to the mortgagee of section 35 or Schedule 8.

• (2) Where sub-paragraph (1) above applies to a Chapter I landlord, then (without prejudice to the generality of that sub-paragraph) any application under section 23(1) that would otherwise be made by the mortgagor (whether alone or together with any other person or persons) shall be made by the mortgagee as if he were the mortgagor.

• (3) Where—

• (a) the interest of a Chapter I landlord is subject to a mortgage, and

• (b) a receiver appointed by the mortgagee or by order of any court is in receipt of the rents and profits,

the person referred to in paragraph (a) shall not make any application under section 23(1) without the consent of the mortgagee, and the mortgagee may by notice given to that person require that, as regards his interest, this paragraph shall apply, either generally or so far as it relates to section 23, as if the mortgagee were a mortgagee in possession.

• (4) Where—

• (a) the interest of a Chapter I or Chapter II landlord is subject to a mortgage, and

• (b) the mortgagee is in possession or a receiver appointed by the mortgagee or by order of any court is in receipt of the rents and profits,

the relevant notice or a copy of it shall be regarded as duly given to that landlord if it is given to the mortgagee or to any such receiver; but whichever of the landlord, the mortgagee and any such receiver are not the recipient of the notice shall be given a copy of it by the recipient.

• (5) Sub-paragraph (4) has effect in relation to a debenture holders’ charge as if any reference to the mortgagee were a reference to the trustees for the debenture holders; but, where the relevant notice is given to a Chapter I or Chapter II landlord whose interest is subject to any such charge and there is no trustee for the debenture holders, the landlord shall forthwith send it or a copy of it to any receiver appointed by virtue of the charge.

• (6) Where—

• (a) a Chapter I or Chapter II landlord is given the relevant notice or a copy of it, and

• (b) his interest is subject to a mortgage to secure the payment of money,

then (subject to sub-paragraph (7)), the landlord shall forthwith inform the mortgagee (unless the notice was given to him or a receiver appointed by virtue of the mortgage) that the notice has been given, and shall give him such further information as may from time to time be reasonably required from the landlord by the mortgagee.

• (7) Sub-paragraph (6) does not apply to a debenture holders’ charge.

Landlord’s interest vested in custodian trustee

3

Where the interest of a Chapter I or Chapter II landlord is vested in a person as custodian trustee, then for the purposes of Chapter I or (as the case may be) Chapter II the interest shall be deemed to be vested in the managing trustees or committee of management as owners of that interest, except as regards the execution of any instrument disposing of or otherwise affecting that interest.

Landlord under a disability

4

• (1) This paragraph applies where a Chapter I or Chapter II landlord lacks capacity (within the meaning of the Mental Capacity Act 2005) to exercise his functions as a landlord.

• (2) For the purposes of the Chapter concerned, the landlord's place is to be taken—

• (a) by a donee of an enduring power of attorney or lasting power of attorney (within the meaning of the 2005 Act), or a deputy appointed for him by the Court of Protection, with power to exercise those functions, or

• (b) if no deputy or donee has that power, by a person authorised in that respect by that court.

Landlord’s interest held in trust

5

• (1) Where the interest of a Chapter I landlord is subject to a trust of land, any sum payable to the landlord by way of the price payable for the interest on its acquisition in pursuance of Chapter I shall be dealt with as if it were proceeds of sale arising under the trust.

• (2) Where the interest of a Chapter II landlord is subject to a trust of land—

• (a) any sum payable to the landlord by way of a premium on the grant of a new lease under Chapter II or section 93(4) shall be dealt with as if it were proceeds of sale arising under the trust; . . .

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

Landlord’s interest subject to a settlement

6

Where the interest of a Chapter II landlord is subject to a settlement (within the meaning of the Settled Land Act 1925), the purposes authorised—

• (a) by section 73 of that Act for the application of capital money, and

• (b) by section 71 of that Act as purposes for which money may be raised by mortgage,

shall include the payment of compensation by the landlord on the termination of a new lease granted under Chapter II or section 93(4) (whether the payment is made in pursuance of an order under section 61 or in pursuance of an agreement made in conformity with paragraph 5 of Schedule 14 without an application having been made under that section).

University or college landlords

7

• (1) Where a Chapter I landlord is a university or college to which the Universities and College Estates Act 1925 applies, any sum payable to the landlord by way of the price payable for any interest on its acquisition in pursuance of Chapter I shall be dealt with as if it were an amount payable by way of consideration on a sale effected under that Act.

• (2) Where a Chapter II landlord is a university or college to which that Act applies—

• (a) any sum payable to the landlord by way of a premium on the grant of a new lease under Chapter II or section 93(4) shall be dealt with as if it were an amount payable by way of consideration on a sale effected under that Act; and

• (b) the purposes authorised—

• (i) by section 26 of that Act for the application of capital money, and

• (ii) by section 31 of that Act as purposes for which money may be raised by mortgage,

shall include the payment of compensation as mentioned in paragraph 6 above.

Ecclesiastical landlords

8

• (1) The provisions of this paragraph shall have effect as regards Chapter I or Chapter II landlords who are ecclesiastical landlords; and in this paragraph “ecclesiastical landlord” means—

• (a) the Chapter of a cathedral having an interest as landlord in property, or

• (b) a diocesan board of finance having an interest as landlord in property belonging to the board as diocesan glebe land.

• (2) In relation to an interest of an ecclesiastical landlord, the consent of the Church Commissioners shall be required , if their consent would be required if the transaction were carried out under ... Part 2 of the Church Property Measure 2018 or the Cathedrals Measure 2021, to sanction—

• (a) the provisions to be contained in a conveyance in accordance with section 34 and Schedule 7, or in any lease granted under section 56, and the price or premium payable, except as regards matters determined by the court or the appropriate tribunal;

• (b) any exercise of the ecclesiastical landlord’s rights under section 61, except as aforesaid, and any agreement for the payment of compensation to a tenant in conformity with paragraph 5 of Schedule 14 without an application having been made under that section; and

• (c) any grant of a lease in pursuance of section 93(4);

...

• (3) Where the Chapter of a cathedral has an interest in property which forms part of the endowment of a cathedral church—

• (a) any sum payable to the Chapter by way of—

• (i) the price payable for any interest in the property on its acquisition in pursuance of Chapter I, or

• (ii) a premium on the grant of a new lease under Chapter II or section 93(4),

shall be treated as part of that endowment; and

• (b) the powers conferred by section 24 of the Cathedrals Measure 2021 in relation to the investment in the acquisition of land of money forming part of the endowment of a cathedral church shall extend to the application of any such money in the payment of compensation as mentioned in paragraph 6 above.

• (4) In the case of a diocesan board of finance—

• (a) no consent or concurrence other than that of the Church Commissioners under sub-paragraph (2) above shall be required to a disposition under this Part of the interest of the diocesan board of finance in property (including a grant of a new lease in pursuance of section 93(4));

• (b) any sum payable to the diocesan board of finance by way of—

• (i) the price payable for any interest in property on its acquisition in pursuance of Chapter I, or

• (ii) a premium on the grant of a new lease of property under Chapter II or section 93(4),

shall be paid to the Diocesan Board of Finance in which the land is vested to be applied for purposes for which the proceeds of any such disposition of property by agreement would be applicable under any enactment or Measure authorising such a disposition or disposing of the proceeds of such a disposition; and

• (c) any sum required for the payment of compensation as mentioned in paragraph 6 above may be paid by the Diocesan Board of Finance out of any money held by it.

• (5) In this paragraph—

• “diocesan board of finance” has the same meaning as “DBF” in the Church Property Measure 2018;

• “diocesan glebe land” has the same meaning as in that Measure.

SCHEDULE 3

Part I — RESTRICTIONS ON PARTICIPATION BY INDIVIDUAL TENANTS, EFFECT OF CLAIMS ON OTHER NOTICES, FORFEITURES ETC.

Prior notice by tenant terminating lease

1

A qualifying tenant of a flat shall not participate in the giving of a relevant notice of claim if the notice is given—

• (a) after the tenant has given notice terminating the lease of the flat (other than a notice that has been superseded by the grant, express or implied, of a new tenancy); or

• (b) during the subsistence of an agreement for the grant to the tenant of a future tenancy of the flat, where the agreement is one to which paragraph 17 of Schedule 10 to the Local Government and Housing Act 1989 applies.

Prior notice by landlord terminating lease

2

• (1) A qualifying tenant of a flat shall not participate in the giving of a relevant notice of claim if the notice is given more than four months after a landlord’s notice terminating the tenant’s lease of the flat has been given under section 4 of the Landlord and Tenant Act 1954 or served under paragraph 4(1) of Schedule 10 to the Local Government and Housing Act 1989 (whether or not the notice has effect to terminate the lease).

• (2) Where in the case of any qualifying tenant of a flat—

• (a) any such landlord’s notice is given or served as mentioned in sub-paragraph (1), but

• (b) that notice was not given or served more than four months before the date when a relevant notice of claim is given,

the landlord’s notice shall cease to have effect on that date.

• (3) If—

• (a) any such landlord’s notice ceases to have effect by virtue of sub-paragraph (2), but

• (b) the claim made in pursuance of the relevant notice of claim is not effective,

then sub-paragraph (4) shall apply to any landlord’s notice terminating the tenant’s lease of the flat which—

• (i) is given under section 4 of the Landlord and Tenant Act 1954 or served under paragraph 4(1) of Schedule 10 to the Local Government and Housing Act 1989, and

• (ii) is so given or served within one month after the expiry of the period of currency of that claim.

• (4) Where this sub-paragraph applies to a landlord’s notice, the earliest date which may be specified in the notice as the date of termination shall be—

• (a) in the case of a notice given under section 4 of that Act of 1954—

• (i) the date of termination specified in the previous notice, or

• (ii) the date of expiry of the period of three months beginning with the date of the giving of the new notice,

whichever is the later; or

• (b) in the case of a notice served under paragraph 4(1) of Schedule 10 to that Act of 1989—

• (i) the date of termination specified in the previous notice, or

• (ii) the date of expiry of the period of four months beginning with the date of service of the new notice,

whichever is the later.

• (5) Where—

• (a) by virtue of sub-paragraph (4) a landlord’s notice specifies as the date of termination of a lease a date earlier than six months after the date of the giving of the notice, and

• (b) the notice proposes a statutory tenancy,

section 7(2) of the Landlord and Tenant Act 1954 shall apply in relation to the notice with the substitution, for references to the period of two months ending with the date of termination specified in the notice and the beginning of that period, of references to the period of three months beginning with the date of the giving of the notice and the end of that period.

Orders for possession and pending proceedings for forfeiture etc.

3

• (1) A qualifying tenant of a flat shall not participate in the giving of a relevant notice of claim if at the time when it is given he is obliged to give up possession of his flat in pursuance of an order of a court or will be so obliged at a date specified in such an order.

• (2) Except with the leave of the court, a qualifying tenant of a flat shall not participate in the giving of a relevant notice of claim at a time when any proceedings are pending to enforce a right of re-entry or forfeiture terminating his lease of the flat.

• (3) Leave shall only be granted under sub-paragraph (2) if the court is satisfied that the tenant does not wish to participate in the giving of such a notice of claim solely or mainly for the purpose of avoiding the consequences of the breach of the terms of his lease in respect of which proceedings are pending.

• (4) If—

• (a) leave is so granted, and

• (b) a relevant notice of claim is given,

the tenant’s lease shall be deemed for the purposes of the claim to be a subsisting lease despite the existence of those proceedings and any order made afterwards in those proceedings; and, if the claim is effective, the court in which those proceedings were brought may set aside or vary any such order to such extent and on such terms as appear to that court to be appropriate.

Institution of compulsory purchase procedures

4

• (1) A qualifying tenant of a flat shall not participate in the giving of a relevant notice of claim if on the date when the notice is given—

• (a) any person or body of persons who has or have been, or could be, authorised to acquire the whole or part of the flat compulsorily for any purpose has or have, with a view to its acquisition for that purpose—

• (i) served a notice to treat on that tenant, or

• (ii) entered into a contract for the purchase of his interest in the whole or part of the flat; and

• (b) the notice to treat or contract remains in force.

• (2) Where—

• (a) a relevant notice of claim is given, and

• (b) during the currency of the claim any such person or body of persons as is mentioned in sub-paragraph (1)(a) serves or serve, in relation to the flat held by a participating tenant, notice to treat as mentioned in that provision,

the tenant shall cease to be entitled to participate in the making of the claim by virtue of being a qualifying tenant of the flat, and shall accordingly cease to be a participating tenant in respect of the flat.

Notice terminating lease given by tenant or landlord during currency of claim

5

Where a relevant notice of claim is given, any notice terminating the lease of any flat held by a participating tenant, whether it is—

• (a) a notice given by the tenant, or

• (b) a landlord’s notice given under section 4 of the Landlord and Tenant Act 1954 or served under paragraph 4(1) of Schedule 10 to the Local Government and Housing Act 1989,

shall be of no effect if it is given or served during the currency of the claim.

Initial notice operates to prevent termination of tenant’s lease by other means

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• (1) Where a relevant notice of claim is given, then during the currency of the claim and for three months thereafter the lease of any flat held by a participating tenant shall not terminate—

• (a) by effluxion of time, or

• (b) in pursuance of a notice to quit given by the landlord, or

• (c) by the termination of a superior lease;

but if the claim is not effective, and but for this sub-paragraph the lease would have so terminated before the end of those three months, the lease shall so terminate at the end of those three months.

• (2) Sub-paragraph (1) shall not be taken to prevent an earlier termination of the lease in any manner not mentioned in that sub-paragraph, and shall not affect—

• (a) the power under section 146(4) of the Law of Property Act 1925 (relief against forfeiture of leases) to grant a tenant relief against the termination of a superior lease, or

• (b) any right of the tenant to relief under section 16(2) of the Landlord and Tenant Act 1954 (relief where landlord proceeding to enforce covenants) or under paragraph 9 of Schedule 5 to that Act (relief in proceedings brought by superior landlord).

• (3) The reference in sub-paragraph (2) to section 16(2) of, and paragraph 9 of Schedule 5 to, the Landlord and Tenant Act 1954 includes a reference to those provisions as they apply in relation to Schedule 10 to the Local Government and Housing Act 1989.

Restriction on proceedings against participating tenant to enforce right of re-entry or forfeiture

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• (1) Where a relevant notice of claim is given, then during the currency of the claim—

• (a) no proceedings to enforce any right of re-entry or forfeiture terminating the lease of any flat held by a participating tenant shall be brought in any court without the leave of that court; and

• (b) leave shall only be granted if the court is satisfied that the tenant is participating in the making of the claim solely or mainly for the purpose of avoiding the consequences of the breach of the terms of his lease in respect of which proceedings are proposed to be brought.

• (2) If leave is granted under sub-paragraph (1), the tenant shall cease to be entitled to participate in the making of the claim by virtue of being a qualifying tenant of the flat referred to in that sub-paragraph, and shall accordingly cease to be a participating tenant in respect of the flat.

Restrictions for purposes of s. 14(3) on tenant electing to become participating tenant during currency of claim

8

• (1) Where a relevant notice of claim is given, a qualifying tenant of a flat may not subsequently make an election under section 14(3)—

• (a) if he was prohibited from participating in the giving of the notice by virtue of paragraph 1, 2(1), 3(1) or 4(1) above; or

• (b) at a time when he would be so prohibited from participating in the giving of a relevant notice of claim, if such a notice were to be given then.

• (2) Where a relevant notice of claim is given, then except with the leave of the court, a qualifying tenant of a flat may not subsequently make an election under section 14(3) at a time when any proceedings are pending to enforce a right of re-entry or forfeiture terminating his lease of the flat.

• (3) Leave shall only be granted under sub-paragraph (2) if the court is satisfied that the tenant does not wish to make such an election solely or mainly for the purpose of avoiding the consequences of the breach of the terms of his lease in respect of which proceedings are pending.

• (4) If—

• (a) leave is so granted, and

• (b) the tenant makes such an election,

the tenant’s lease shall be deemed for the purposes of the claim to be a subsisting lease despite the existence of those proceedings and any order made afterwards in those proceedings; and, if the claim is effective, the court in which those proceedings were brought may set aside or vary any such order to such extent and on such terms as appear to that court to be appropriate.

• (5) References in this paragraph and paragraph 9 below to making an election under section 14(3) are references to making such an election to participate in the making of the claim in respect of which the relevant notice of claim is given.

Effect of tenant’s election on certain notices given by landlord

9

• (1) This paragraph applies to a qualifying tenant of a flat who, following the giving of a relevant notice of claim, makes an election under section 14(3).

• (2) Where in the case of any such tenant—

• (a) a landlord’s notice terminating the tenant’s lease of the flat has been given or served as mentioned in paragraph 2(1) above (whether or not the notice has effect to terminate the lease), but

• (b) that notice was not given or served more than four months before the date when the tenant makes his election under section 14(3),

the landlord’s notice shall cease to have effect on that date.

• (3) If—

• (a) any such landlord’s notice ceases to have effect by virtue of sub-paragraph (2) above, but

• (b) the claim made in pursuance of the relevant notice of claim is not effective,

then paragraph 2(4) above shall apply to any landlord’s notice terminating the tenant’s lease of the flat which—

• (i) is given under section 4 of the Landlord and Tenant Act 1954 or served under paragraph 4(1) of Schedule 10 to the Local Government and Housing Act 1989, and

• (ii) is so given or served within one month after the expiry of the period of currency of that claim;

and paragraph 2(5) above shall apply accordingly.

• (4) Paragraph 8(5) above applies for the purposes of this paragraph.

Interpretation

10

• (1) For the purposes of this Part of this Schedule—

• (a) “relevant notice of claim”, in relation to any flat, means a notice under section 13 in the case of which the specified premises contain that flat, and references to participating in the giving of such a notice are references to being one of the persons by whom the notice is given;

• (b) references to a notice under section 13 include, in so far as the context permits, references to a notice purporting to be given under that section (whether by persons who are qualifying tenants or not);

• (c) references to a claim being effective are references to a binding contract being entered into for the acquisition of the freehold and other interests falling to be acquired in pursuance of the claim or to the making of an order under section 24(4)(a) or (b) or 25(6)(a) or (b) which provides for the vesting of those interests; and

• (d) references to the currency of a claim are—

• (i) where the claim is made by a valid notice under section 13, references to the period during which the notice continues in force in accordance with subsection (11) of that section, or

• (ii) where the claim is made by a notice which is not a valid notice under section 13, references to the period beginning with the giving of the notice and ending with the time when the notice is set aside by the court or is withdrawn or when it would (if valid) cease to have effect or be deemed to have been withdrawn.

• (2) For the purposes of sub-paragraph (1)(d) the date when a notice is set aside, or would (if valid) cease to have effect, in consequence of an order of a court shall be taken to be the date when the order becomes final.

Part II — PROCEDURE FOR GIVING COPIES TO RELEVANT LANDLORDS

Application of Part II

11

This Part of this Schedule has effect where a notice under section 13 is given in a case to which section 9(2) or (2A) applies.

Qualifying tenants to give copies of initial notice

12

• (1) In a case to which section 9(2) applies,the qualifying tenants by whom the initial notice is given shall, in addition to giving the initial notice to the reversioner in respect of the specified premises, give a copy of the notice to every other person known or believed by them to be a relevant landlord of those premises.

• (2) The initial notice shall state whether copies are being given in accordance with sub-paragraph (1) to anyone other than the recipient and, if so, to whom.

Recipient of notice or copy to give further copies

13

• (1) Subject to sub-paragraph (2), a recipient of the initial notice or of a copy of it (including a person receiving a copy under this sub-paragraph) shall forthwith give a copy to any person who—

• (a) is known or believed by him to be a relevant landlord, and

• (b) is not stated in the recipient’s copy of the notice, or known by him, to have received a copy.

• (2) Sub-paragraph (1) does not apply where the recipient is neither the reversioner nor another relevant landlord.

• (3) Where a person gives any copies of the initial notice in accordance with sub-paragraph (1), he shall—

• (a) supplement the statement under paragraph 12(2) or, as the case may be, 12A(2) by adding any further persons to whom he is giving copies or who are known to him to have received one; and

• (b) notify the qualifying tenants by whom the initial notice is given of the persons added by him to that statement.

Consequences of failure to comply with paragraph 12 or 13

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• (1) Where—

• (a) a relevant landlord of the specified premises does not receive a copy of the initial notice before the end of the period specified in it in pursuance of section 13(3)(g), but

• (b) he was given a notice under section 11 by any of the qualifying tenants by whom the initial notice was given and, in response to the notice under that section, notified the tenant in question of his interest in the specified premises,

the initial notice shall cease to have effect at the end of that period.

• (2) Where—

• (a) sub-paragraph (1) does not apply, but

• (b) any person fails without reasonable cause to comply with paragraph 12 , 12A or 13 above, or is guilty of any unreasonable delay in complying with any of those paragraphs,

he shall be liable for any loss thereby occasioned to the qualifying tenants by whom the initial notice was given or to the reversioner or any other relevant landlord.

Part III — OTHER PROVISIONS

Inaccuracies or misdescription in initial notice

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• (1) The initial notice shall not be invalidated by any inaccuracy in any of the particulars required by section 13(3) or by any misdescription of any of the property to which the claim extends.

• (2) Where the initial notice—

• (a) specifies any property or interest which was not liable to acquisition under or by virtue of section 1 or 2, or

• (b) fails to specify any property or interest which is so liable to acquisition,

the notice may, with the leave of the court and on such terms as the court may think fit, be amended so as to exclude or include the property or interest in question.

• (3) Where the initial notice is so amended as to exclude any property or interest, references to the property or interests specified in the notice under any provision of section 13(3) shall be construed accordingly; and, where it is so amended as to include any property or interest, the property or interest shall be treated as if it had been specified under the provision of that section under which it would have fallen to be specified if its acquisition had been proposed at the relevant date.

Effect on initial notice of tenant’s lack of qualification to participate

16

• (1) It is hereby declared that, where at the relevant date any of the persons by whom the initial notice is given—

• (a) is not a qualifying tenant of a flat contained in the specified premises, or

• (b) is such a qualifying tenant but is prohibited from participating in the giving of the notice by virtue of Part I of this Schedule, or

• (c) (if it is claimed in the notice that he satisfies the residence condition) does not satisfy that condition,

the notice shall not be invalidated on that account, so long as the notice was in fact properly given by a sufficient number of qualifying tenants of flats contained in the premises as at the relevant date, and not less than one-half of the qualifying tenants by whom it was so given then satisfied the residence condition.

• (2) For the purposes of sub-paragraph (1) a sufficient number is a number which—

• (a) is not less than two-thirds of the total number of qualifying tenants of flats contained in the specified premises as at the relevant date, and

• (b) is not less than one-half of the total number of flats so contained.