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Housing Act 1985, Section 127 is up to date with all changes known to be in force on or before 19 August 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
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(1)The value of a dwelling-house at the relevant time shall be taken to be the price which at that time it would realise if sold on the open market by a willing vendor—
(a)on the assumptions stated for a conveyance in subsection (2) and for a grant in subsection (3), F1. . .
(b)disregarding any improvements made by any of the persons specified in subsection (4) and any failure by any of those persons to keep the dwelling-house in good internal repair [F2, and
(c)on the assumption that any service charges or improvement contributions payable will not be less than the amounts to be expected in accordance with the estimates contained in the landlord’s notice under section 125.]
(2)For a conveyance the assumptions are—
(a)that the vendor was selling for an estate in fee simple with vacant possession,
(b)that neither the tenant nor a member of his family residing with him wanted to buy, and
(c)that the dwelling-house was to be conveyed with the same rights and subject to the same burdens as it would be in pursuance of this Part.
(3)For the grant of a lease the assumptions are—
(a)that the vendor was granting a lease with vacant posession for the appropriate term defined in paragraph 12 of Schedule 6 (but subject to sub-paragraph (3) of that paragraph).
(b)that neither the tenant nor a member of his family residing with him wanted to take the lease,
(c)that the ground rent would not exceed £10 per annum [F3or, if the lease would be a regulated lease within the meaning of the Leasehold Reform (Ground Rent) Act 2022, the rent permitted by that Act], and
(d)that the grant was to be made with the same rights and subject to the same burdens as it would be in pursuance of this Part.
(4)The persons referred to in subsection (1)(b) are—
(a)the secure tenant,
(b)any person who under the same tenancy was a secure tenant [F4or an introductory tenant]before him, and
[F5(c)any member of his family who, immediately before the secure tenancy was granted (or, where an introductory tenancy has become the secure tenancy, immediately before the introductory tenancy was granted), was a secure tenant or, an introductory tenant of the same dwelling-house under another tenancy,]
but do not include, in a case where the secure tenant’s tenancy has at any time been assigned by virtue of section 92 (assignments by way of exchange), a person who under that tenancy was a secure tenant [F6or an introductory tenant] before the assignment.
[F7(5)In this section “introductory tenant” and “introductory tenancy” have the same meaning as in Chapter I of Part V of the Housing Act 1996.]
Textual Amendments
F1Word repealed by Housing and Planning Act 1986 (c. 63, SIF 61), s. 24(2)(3), Sch. 5 Pt. II para. 28, Sch. 12 Pt. I
F2Word and s. 127(1)(c) inserted by Housing and Planning Act 1986 (c. 63, SIF 61), s. 4(3)(6)
F3Words in s. 127(3)(c) inserted (30.6.2022 for specified purposes, 1.4.2023 in so far as not already in force) by Leasehold Reform (Ground Rent) Act 2022 (c. 1), ss. 19(2), 25(2) (with s. 23); S.I. 2022/694, regs. 2, 3, 4
F4Words in s. 127(4)(b) inserted (12.2.1997) by S.I. 1997/74, art. 2, Sch. para. 3(j)(i)
F5S. 127(4)(c) substituted (12.2.1997) by S.I. 1997/74, art. 2, Sch. para. 3(j)(ii)
F6Words in s. 127(4) inserted (12.2.1997) by S.I. 1997/74, art. 2, Sch. para. 3(j)(iii)
F7S. 127(5) inserted (12.2.1997) by S.I. 1997/74, art. 2, Sch. para. 3(k)
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