Tenants' Rights, Etc. (Scotland) Act 1980

PART I Rights of Public Sector Tenants to Purchase the Dwelling-houses which they Occupy

1 Secure tenant's right to purchase

(1) Notwithstanding anything contained in any tenancy agreement, a tenant of a dwelling-house to which this section applies (or such one or more of joint tenants as may be agreed between them) shall, subject to this Part of this Act, have the right to purchase the dwelling-house at a price fixed under subsection (5) below.

(2) Where the spouse of a tenant or, where there is a joint tenancy, the spouse of a joint tenant, occupies the dwelling-house as his only or principal home but is not himself a joint tenant, the right to purchase the dwelling-house under subsection (1) above shall not be exercised without the consent of such spouse.

(3) Subject to subsection (11) below, this section applies to every dwelling-house let under a secure tenancy where the landlord is a body mentioned in any of paragraphs (a), (b), (c) or (f) of section 10(2) of this Act and, immediately prior to the relevant date, the tenant or, where there are joint tenants, any one of them has been for not less than 3 years in occupation of a dwelling-house or of a succession of dwelling-houses provided by any persons mentioned in subsection (10) below.

(4) A tenant may exercise his right to purchase, if he so wishes, together with one or more members of his family acting as joint purchasers, provided—

(a) that such members are over the age of 18 years and at the relevant date the dwelling-house has been their only or principal home for a continuous period of 6 months, and their residence in the dwelling-house is not a breach of any obligation of the tenancy; or

(b) where the requirements of paragraph (a) above are not satisfied, the landlord has consented.

(5) Subject to subsection (7) below, the price at which a tenant shall be entitled to purchase a dwelling-house under this section shall be fixed by subtracting from the market value of the dwelling-house (determined in accordance with paragraph (a) below) a discount calculated in accordance with paragraph (b) below—

(a) the market value for the purposes of this subsection shall be determined by—

(i) a qualified valuer nominated by the landlord and accepted by the tenant; or

(ii) the district valuer, as if the dwelling-house were available for sale on the open market with vacant possession at the relevant date;

(b) the discount for the purposes of this subsection shall be—

(i) 33 per cent of the market value determined under paragraph (a) above; together with

(ii) an additional one per cent of the said market value for every year beyond 3 of continuous occupation by the tenant or by any one of the joint tenants or by his spouse, immediately preceding the relevant date, of a dwelling-house or of a succession of dwelling-houses provided by any persons mentioned in subsection (10) below,

up to a maximum discount of 50 per cent of the said market value.

(6) For the purposes of subsection (5)(a) above, no account shall be taken of any element in the market value of the house which reflects an increase in value as a result of work the cost of which would qualify for a reimbursement under section 24 of this Act.

(7) Where the dwelling-house was first let under a secure tenancy (or under a tenancy which, if Part II of this Act had then been in force, would have been a secure tenancy) after 15 May 1975, the price fixed under subsection (5) above shall not be less than—

(a) the outstanding debt incurred in providing the dwelling house ; or

(b) the market value of the dwelling-house determined under subsection (5)(a) above,

whichever is the lesser except in such cases as the Secretary of State may by order made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament, with the consent of the Treasury, prescribe.

(8) In subsection (7) above, "outstanding debt" means any undischarged debt arising from—

(a) the cost of the erection or acquisition of the dwelling house ; together with

(b) the cost of acquisition of the site of the dwelling-house; and

(c) the cost of works of improvement, alteration, or major structural repair; and

(d) administrative costs attributable to the matters mentioned in paragraphs (a) to (c) above.

(9) Where at the date of service of an offer to sell under section 2 of this Act any of the costs referred to in subsection (8) above are not known, the landlord shall make an estimate of such unknown costs for the purposes of the said subsection.

(10) The persons referred to in subsection (3) above (right of purchase) and in subsection (5)(b)(ii) above (discount) are—

(a) a regional, district or islands council in Scotland; any local authority in England and Wales or in Northern Ireland; and the statutory predecessors of any such council or authority, or the common good of any such council, or any trust under the control of any such council;

(b) the Commission for the New Towns ;

(c) a development corporation established under an order made, or having effect as if made under the [1968 c. 16.] New Towns (Scotland) Act 1968; any development corporation established under corresponding legislation in England and Wales or in Northern Ireland; and the statutory predecessors of any such authority;

(d) the Scottish Special Housing Association ;

(e) a housing co-operative within the meaning of section 5 of the [1975 c. 28.] Housing Rents and Subsidies (Scotland) Act 1975 or of paragraph 9 of Schedule 1 to the [1975 c. 6.] Housing Rents and Subsidies Act 1975 ;

(f) the Development Board for Rural Wales ;

(g) the Northern Ireland Housing Executive or any statutory predecessor;

(h) a police authority in Scotland within the meaning of section 2(1) or section 19(9)(b) of the [1967 c. 77.] Police (Scotland) Act 1967 ; any police authority constituted under corresponding legislation in England and Wales or in Northern Ireland; and the statutory predecessors of any such authority;

(i) a fire authority in the United Kingdom for the purposes of the Fire Services Acts 1947 to 1959 ; and the statutory predecessors of any such authority ;

(j) a water authority in Scotland as constituted under section 148 of the [1973 c. 65.] Local Government (Scotland) Act 1973 ; any water authority constituted under corresponding legislation in England and Wales or in Northern Ireland; and the statutory predecessors of any such authority;

(k) the Secretary of State, where the dwelling-house was at the material time used for the purposes of the Scottish Prison Service or of a prison service for which the Home Office or the Northern Ireland Office have responsibility ;

(l) the Crown, in relation to accommodation provided in connection with service by the tenant or occupier as a member of the regular armed forces of the Crown;

(m) the Secretary of State, where the dwelling-house was at the material time used for the purposes of a health board constituted under section 2 of the [1978 c. 29.] National Health Services (Scotland) Act 1978 or for the purposes of a corresponding board in England and Wales, or for the purposes of the statutory predecessors of any such board; or the Department of Health and Social Services for Northern Ireland, where the house was at the material time used for the purposes of a Health and Personal Services Board in Northern Ireland, or for the purposes of the statutory predecessors of any such board;

(n) the Secretary of State, or the Minister of Agriculture, Fisheries and Food, where the dwelling-house was at the material time used for the purposes of the Forestry Commission.

(11) This section does not apply—

(a) where a landlord mentioned in any of paragraphs (a), (b) or (c) of section 10(2) of this Act is not the heritable proprietor of a dwelling-house ;

(b) where a landlord of a dwelling-house is a housing co-operative within the meaning of section 5 of the [1975 c. 28.] Housing Rents and Subsidies (Scotland) Act 1975 and neither it nor a body mentioned in the said paragraph (a) of section 10(2) of this Act is the heritable proprietor of the dwelling-house ; nor

(c) where a dwelling-house is one of a group which has been provided with facilities (including a call system and the services of a warden) specially designed or adapted for the needs of elderly or disabled persons.

(12) In this section—

• " occupation " of a dwelling-house means occupation—

  (i)

  as a tenant or as a person to whom a dwelling-house is provided rent-free ; or

  (ii)

  as the spouse of a person mentioned in paragraph (i) above; or

  (iii)

  in the discretion of the landlord, as the child of a person mentioned in paragraph (i) above who has succeeded to the rights of that person in a dwelling-house occupation of which would be reckon-able for the purposes of this section, but only in relation to any period when the child is over the age of 16 years ; and

  any interruption in occupation of 12 months or less shall, and any interruption in occupation of more than 12 months and less than 24 months may at the discretion of the landlord, be disregarded and, for the purposes of subsection (5)(b)(ii), "dwelling-house" includes accommodation provided in connection with service by the tenant or occupier as a member of the regular armed forces of the Crown ;

• " regular armed forces of the Crown " has the same meaning as in section 1 of the [1975 c. 24.] House of Commons Disqualification Act 1975; and

• " relevant date " means—

  (a)

  in the case where an application to purchase is served within 6 months of the date of the commencement of this section, that date ; and

  (b)

  in any other case the date of service of an application to purchase under section 2(1) of this Act.

2 Procedure

(1) A tenant who seeks to exercise a right to purchase a dwelling-house under section 1 of this Act shall serve on the landlord a notice (referred to in this Part of this Act as an " application to purchase ") which shall be in such form as the Secretary of State shall by order made by statutory instrument prescribe, and shall contain—

(a) notice that the tenant seeks to exercise the right to purchase;

(b) a statement of any period of occupancy of a dwelling house on which the tenant intends to rely for the purposes of section 1 of this Act; and

(c) the name of any joint purchaser: provided that any reference in this section to a joint purchaser is a reference to a joint purchaser within the meaning of section 1 (4) of this Act.

(2) Where an application to purchase is served on a landlord, and the landlord does not serve a notice of refusal under section 3 of this Act, it shall, within 3 months where the application is made during the first year after the commencement of this section, or, in any other case, within 2 months after service of the application to purchase serve on the tenant a notice (referred to in this Part of this Act as an " offer to sell ") containing—

(a) the market value of the dwelling-house determined under section 1(5)(a) of this Act;

(b) the discount calculated under section 1(5) (b) of this Act;

(c) the price fixed under section 1 (5) of this Act;

(d) any conditions which the landlord intends to impose under section 4 of this Act; and

(e) an offer to sell the dwelling-house to the tenant and any joint purchaser named in the application to purchase at the price referred to in paragraph (c) above and under the conditions referred to in paragraph (d) above.

(3) Where an offer to sell is served on a tenant and he wishes to exercise his right to purchase, but—

(a) he considers that a condition contained in the offer to sell is unreasonable ; or

(b) he wishes to have a new condition included in it; or

(c) he has not previously notified the landlord of his intention to exercise that right together with a joint purchaser, but now wishes to do so ; or

(d) he has previously notified the landlord of his intention to exercise that right together with any joint purchaser but now wishes to exercise the right without that joint purchaser,

he may request the landlord to strike out or vary the condition, or to include the new condition, or to make the offer to sell to the tenant and the joint purchaser, or to withdraw the offer to sell in respect of the joint purchaser, as the case may be, by serving on the landlord within one month after service of the offer to sell a notice in writing setting out his request; and if the landlord agrees, it shall accordingly serve an amended offer to sell on the tenant within one month of service of the said notice setting out the request.

(4) A tenant who is aggrieved by the refusal of the landlord to agree to strike out or vary a condition, or to include a new condition or to make the offer to sell to the tenant and the joint purchaser, or to withdraw the offer to sell in respect of any joint purchaser under subsection (3) above, or by his failure timeously to serve an amended offer to sell under the said subsection, may, within one month or, with the consent of the landlord given in writing before the expiry of the said period of one month, within two months of the refusal or failure, refer the matter to the Lands Tribunal for Scotland for determination.

(5) In proceedings under subsection (4) above, the Lands Tribunal for Scotland may, as it thinks fit, uphold the condition or strike it out or vary it, or insert the new condition or order that the offer to sell be made to the tenant and the joint purchaser, or order that the offer to sell be withdrawn in respect of any joint purchaser, and where its determination results in a variation of the terms of the offer to sell, it shall order the landlord to serve on the tenant an amended offer to sell accordingly within 2 months thereafter.

(6) Where an offer to sell is served on a tenant and he wishes to exercise his right to purchase and—

(a) he does not dispute the terms of the offer to sell by timeously serving a notice setting out a request under subsection (3) above; or

(b) any such dispute has been determined by agreement between the landlord and the tenant or by determination by the Lands Tribunal for Scotland ;

the tenant shall serve a notice of acceptance on the landlord within two months of whichever is the latest of—

(i) the service on him of the offer to sell;

(ii) the service on him of an amended offer to sell (or if there is more than one, of the latest amended offer to sell);

(iii) a determination by the Lands Tribunal for Scotland under subsection (5) above which does not require service of an amended offer to sell;

(iv) where a loan application under section 5 of this Act has been served on the landlord, the service of a relative offer of loan ; or

(v) where section 5(7) of this Act is invoked, the decision of the court.

(7) Where an offer to sell (or an amended offer to sell) has been served on the tenant and a relative notice of acceptance has been duly served on the landlord, a contract of sale of the dwelling-house shall be constituted between the landlord and the tenant on the terms contained in the offer (or amended offer) to sell.

(8) Where an offer to sell (or an amended offer to sell) is served on a tenant, but he is unable by reason of the application of regulations made under section 5(3) of this Act to obtain a loan of the amount for which he has applied, he may, within 2 months of service on him of an offer of loan, or (as the case may be) of the date of a declarator by the sheriff under section 5(7) of this Act, whichever is the later, serve on the landlord a notice to the effect that he wishes to have a fixed price option, which notice shall be accompanied by a payment to the landlord of £100, and in that event he shall be entitled to serve a notice of acceptance on the landlord at any time within 2 years of the service of the application to purchase.

(9) The payment of £100 mentioned in subsection (8) above shall be recoverable—

(a) by the tenant, when he purchases the dwelling-house in accordance with that subsection or, if he does not, at the expiry of the period of 2 years mentioned therein ;

(b) by the tenant, when the landlord recovers possession of the dwelling-house under subsection (11) below ; or

(c) by his personal representatives, if he dies without purchasing the dwelling-house in accordance with that subsection.

(10) Where a tenant has made an application to purchase under subsection (1) above, he shall not be entitled to make an application to purchase under this Part of this Act again until 12 months after the last date on which he would be entitled to serve a notice of acceptance under subsection (6) or (8) above.

(11) The existence of a fixed price option under subsection (8) above shall not prevent the landlord from recovering possession of the property in any manner which may be lawful, and in that event the option shall be terminated.

3 Refusal of applications

(1) Where a landlord on which an application to purchase has been served disputes the tenant's right to purchase a dwelling-house under section 1 of this Act, it shall by notice (referred to in this Part of this Act as a " notice of refusal ") served within one month after service of the application to purchase—

(a) refuse the application ; or

(b) offer to sell the dwelling-house to the tenant under section 8 of this Act or under any other power which the landlord has to sell the dwelling-house.

(2) Where a landlord on which an application to purchase has been served, after reasonable enquiry (which shall include reasonable opportunity for the tenant to amend his application), is of the opinion that information contained in the application is incorrect in a material respect it shall issue a notice of refusal within 2 months of the application to purchase.

(3) A notice of refusal shall specify the grounds on which the landlord disputes the tenant's right to purchase or, as the case may be, the accuracy of the information.

(4) Where a landlord serves a notice of refusal on a tenant under this section, the tenant may within one month thereafter apply to the Lands Tribunal for Scotland for a finding that he has a right to purchase the dwelling-house under section 1 of this Act on such terms as it may determine.

4 Conditions of sale

(1) An offer to sell under section 2(2) of this Act shall contain such conditions as are reasonable, provided that—

(a) the conditions shall have the effect of ensuring that the tenant has as full enjoyment and use of the dwelling-house as owner as he has had as tenant;

(b) the conditions shall secure to the tenant such additional rights as are necessary for his reasonable enjoyment and use of the dwelling-house as owner (including, without prejudice to the foregoing generality, common rights in any part of the building of which the dwelling-house forms part) and shall impose on the tenant any necessary duties relative to rights so secured ; and

(c) the conditions shall include such terms as are necessary to entitle the tenant to receive a good and marketable title to the dwelling-house.

(2) A condition which imposes a new charge or an increase of an existing charge for the provision of a service in relation to the dwelling-house shall provide for the charge to be in reasonable proportion to the cost to the landlord of providing the service.

(3) No condition shall be imposed under this section which has the effect of requiring the tenant to pay any expenses of the landlord incurred in connection with the sale of the dwelling-house.

(4) Subject to subsection (6) below, no condition shall be imposed under this section which has the effect of requiring the tenant or any of his successors in title to offer to the landlord, or to any other person, an option to purchase the dwelling-house in advance of its sale to a third party, except in the case of a dwelling-house which has facilities which are substantially different from those of an ordinary dwelling-house and which has been designed or adapted for occupation by an elderly or disabled person whose special needs require accommodation of the kind provided by the dwelling-house.

(5) Where an option to purchase permitted under subsection (4) above is exercised, the price to be paid for the dwelling-house shall be determined by the district valuer who shall have regard to the market value of the dwelling-house at the time of the purchase and to any amount due to the landlord under section 6 of this Act (recovery of discount on early re-sale).

(6) Subsection (4) above shall not apply to dwelling-houses in an area which is designated a rural area by the islands or district council within whose area it is situated where the Secretary of State, on the application of the islands or district council concerned, makes an order, which shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament, to that effect.

(7) An order under subsection (6) above may be made where—

(a) within the said rural area more than one-third of the number of dwelling-houses of which the council concerned is the landlord at the date of commencement of this Part of this Act have been sold ; and

(b) the Secretary of State is satisfied that an unreasonable proportion of the houses sold have been resold and are not being used as the only or principal home of the owner.

(8) A condition imposed by virtue of subsection (6) above shall not have effect in relation to any dwelling-house for more than 10 years from the date of its conveyance to a tenant in pursuance of his right to purchase under this Part of this Act and subsection (5) above shall apply to any option to purchase exercised under such a condition.

5 Loans

(1) A tenant who seeks to exercise his right to purchase a dwelling-house under section 1 of this Act and who has received an offer to sell (or, as the case may be, an amended offer to sell) from the landlord shall be entitled, together with any joint purchaser under subsection (4) of the said section 1 (and the said tenant and any joint purchaser are referred to in this section as " the applicant ") to apply—

(a) in the case where the landlord is a development corporation established by an order made, or having effect as if made, under the [1968 c. 16.] New Towns (Scotland) Act 1968, or the Scottish Special Housing Association, to that body; or

(b) in any other case, to the islands or district council for the area in which the dwelling-house is situated,

for a loan of an amount not exceeding the price fixed under section 1(5) of this Act to assist him to purchase the dwelling-house.

(2) An application under this section (referred to in this Part of this Act as a " loan application ")—

(a) must be served on the landlord or other body within one month after service on the tenant of the offer to sell (or, where there has been service of one or more amended offers to sell or there has been a determination by the Lands Tribunal for Scotland under section 2(5) of this Act which does not require the issue of an amended offer to sell, of the latest of these);

(b) shall be in such form as the Secretary of State shall by order made by statutory instrument prescribe, and shall contain—

(i) the amount of the loan which the applicant seeks;

(ii) the applicant's annual gross income and his net income after payment of income tax and national insurance contributions;

(iii) any liabilities in respect of credit sales or other fixed outgoings of the applicant; and

(iv) a statement that the applicant has applied for and been unable to obtain a sufficient building society loan; and

(c) shall be accompanied by evidence of the matters referred to in sub-paragraphs (ii) to (iv) of paragraph (b) above..

(3) Subject to such requirements as the Secretary of State may by order made by statutory instrument impose, a landlord or, other body which receives an application under subsection (1) above shall, where it is satisfied on reasonable inquiry (which shall include reasonable opportunity for the applicant to amend his application) that the information contained in the loan application is correct, serve on the applicant an offer of loan, which shall specify a maximum amount of loan calculated in accordance with regulations made by order made by statutory instrument by the Secretary of State.

(4) A landlord or other body to which application has been made under subsection (1) above shall complete its inquiries and either—

(a) issue the offer of loan under subsection (3) above ; or

(b) refuse the application on the ground that information contained in the loan application is incorrect in a material respect,

within 2 months of the date of service of the loan application.

(5) An applicant who wishes to accept an offer of loan shall do so along with his notice of acceptance under section 2(6) of this Act.

(6) An offer of loan under subsection (3) above together with an acceptance under subsection (5) above shall constitute an agreement by the landlord or other body, subject to such requirements as the Secretary of State may by order made by statutory instrument impose, to lend to the applicant for the purpose of purchasing the dwelling-house—

(a) the maximum amount of loan mentioned in subsection (3) above; or

(b) the amount of loan sought by the applicant,

whichever is the lesser, on the execution by the applicant of a standard security over the dwelling-house.

(7) An applicant who is aggrieved by a refusal under subsection (4)(b) above, or by a failure to comply with the said subsection, or by the calculation of maximum amount of loan mentioned in subsection (3) above may, within 2 months of the date of the refusal or failure or of the offer of loan, as the case may be, raise proceedings by way of summary application in the sheriff court for the district in which the dwelling-house is situated for declarator that he is entitled to a loan in accordance with subsection (3) above.

(8) Where in proceedings under subsection (7) above the sheriff grants declarator that the applicant is entitled to a loan, such declarator shall have effect as if it were an offer of loan of the amount specified in the declarator duly issued under this section by the landlord or other body.

(9) A statutory instrument made under subsection (3) or (6) above shall be subject to annulment in pursuance of a resolution of either House of Parliament.

6 Recovery of discount on early re-sale

(1) A person who has purchased a dwelling-house in exercise of a right to purchase under section 1 of this Act, or any of his successors in title, who sells or otherwise disposes of the dwelling-house (otherwise than in the capacity of executor of the deceased owner or as a result of an order for compulsory purchase) before the expiry of 5 years from the date of service of a notice of acceptance by the tenant under section 2(6) of this Act shall be liable to repay to the landlord a proportion of the discount under section 1(5)(b) of this Act in accordance with subsection (3) below.

(2) Subsection (1) above applies to the disposal of part of a dwelling-house except in a case where—

(a) it is a disposal by one of the parties to the original sale to one of the other parties; or

(b) the remainder of the dwelling-house continues to be the only or principal home of the person disposing of the part.

(3) The proportion of the said discount which shall be paid to the landlord shall be 100 per cent where the said disposal occurs within the first year after the said date of service of notice, 80 per cent, where it occurs in the second such year, and so on, reducing by 20 per cent, each year until the end of the 5 year period.

(4) Where there is more than one disposal within the period mentioned in subsection (1) above, this section applies only in relation to the first disposal.

(5) Where a landlord secures the liability to repay a proportion of discount under this section the security shall, notwithstanding section 13 of the [1970 c. 35.] Conveyancing and Feudal Reform (Scotland) Act 1970, have priority immediately after—

(a) a standard security granted in security of a loan for the purchase of the dwelling-house and any interest present or future due thereon (including any such interest which has accrued or may accrue) and any expenses or outlays (including interest thereon) which may be, or may have been, reasonably incurred in the exercise of any power conferred on the lender by the deed expressing the said standard security; and

(b) if the landlord consents, a standard security over the dwelling-house granted in security of any further loan, and in relation thereto any such interest, expenses or outlays as aforesaid.

(6) The liability to repay a proportion of discount under this section shall not be imposed as a real burden in a disposition of any interest in the dwelling-house.

7 Duties of landlords

(1) It shall be the duty of every landlord under a secure tenancy of a dwelling-house to which this Part of this Act applies to make provision for the progression of applications under this Part of this Act in such manner as may be necessary to enable any tenant who wishes to exercise his rights under this Part of this Act to do so, and to comply with any regulations which may be made by order made by statutory instrument by the Secretary of State in that regard.

(2) (1) Where a landlord who has been duly served with an application to purchase fails to issue timeously either an offer to sell or a notice of refusal; or

(b) where the Lands Tribunal for Scotland has made a determination under section 2(5) of this Act (variation of terms of offer to sell), and the landlord has failed to issue an amended offer to sell within 2 months thereafter ; or

(c) where the Lands Tribunal for Scotland has made a finding under section 3(4) of this Act (refusal of right to purchase) and the landlord has not duly progressed the application to purchase in accordance with the said finding, within 2 months thereafter,

the tenant (together with any joint purchaser) may refer the matter to the Lands Tribunal for Scotland by serving on the clerk to that body a copy of any notice served and of any finding or determination made under this Part of this Act, together with a statement of his grievance.

(3) Where a matter has been referred to the Lands Tribunal for Scotland under subsection (2) above, the Lands Tribunal for Scotland shall consider whether in its opinion any of paragraphs (a) to (c) of that subsection apply, and if it so finds it may issue such notices and undertake such other steps as may be required to complete the procedure provided for in section 2 of this Act; and anything done under this subsection shall have effect as if it had been duly done by the landlord under the relevant provision of the said section 2.

(4) Nothing in this section shall affect the operation of the provisions of any other enactment relating to the enforcement of a statutory duty whether under that enactment or otherwise

8 Removal of restrictions on powers of local authorities to sell houses

(1) Notwithstanding anything contained in any enactment a local authority may sell any house to which this section applies without the consent of the Secretary of State.

(2) This section applies to a house provided for the purposes of part VII of the [1966 c. 49.] Housing (Scotland) Act 1966, where—

(a) the house is being sold to a tenant or to members of his family who normally reside with him ( or to a tenant together with such members of his family, as joint purchases) ; or

(b) the house is unoccupied and—

(i) it is not held on the housing revenue account maintained in terms of section 23 of the [1972 c. 46.] Housing (Financial Provisions) (Scotland) Act 1972; or

(ii) it is held on the housing revenue account and it is, in the opinion of the local authority, either surplus to its requirements or difficult to let, because it has been continuously vacant for a period of not less than 3 months immediately prior to the date of the sale and during that period it has been on unrestricted offer to any applicant on the local authority's housing list (within the meaning of section 26 of this Act (allocation)).

(3) Section 145 of the [1966 c. 49.] Housing (Scotland) Act 1966 (powers to deal with land acquired for the purposes of Part VII) shall be amended as follows—

(a) in subsection (1)(d), for the words from "paid" to the end substitute " secured by standard security over the subjects sold. " ;

(b) paragraph (b) of subsection (5) is repealed ;

(c) after subsection (6) insert the following subsection—

“(6A) subsection (6) above shall not apply where—

(a) the house is being sold to a tenant or to a member of his family who normally resides with him (or to a tenant together with members of his family, as joint purchasers); or

(b) the requirements of section 8(2)(b) of the Tenants' Rights, Etc. (Scotland) Act 1980 are satisfied.”.

(4) Expressions used in this section and in the said Part VII have the same meaning in this section as in that Part.

9 Removal of restrictions on powers of registered housing associations to sell houses

(1) After the commencement of this section, any provision contained in the rules of a body to which this section applies which prevents it from selling or leasing any dwelling-house (where such a disposal would otherwise be lawful) shall cease to have effect.

(2) This section applies to every body which is a housing association within the meaning of section 208(1) of the Housing (Scotland) Act 1966 and which is registered in the register of housing associations established under section 13 of the [1974 c. 44.] Housing Act 1974.

(3) Nothing in this section shall affect the operation of section 2 of the Housing Act 1974 (control by the Housing Corporation).