Housing Act 1985

PART II PROVISION OF HOUSING ACCOMMODATION

Main powers and duties of local housing authorities

8 Periodical review of housing needs.

(1) Every local housing authority shall consider housing conditions in their district and the needs of the district with respect to the provision of further housing accommodation.

(2) For that purpose the authority shall review any information which has been brought to their notice, including in particular information brought to their notice as a result of inspections and surveys carried out under section 605 (periodical review of housing conditions).

9 Provisions of housing accommodation.

(1) A local housing authority may provide housing accommodation—

(a) by erecting houses, or converting buildings into houses, on land acquired by them for the purposes of this Part, or

(b) by acquiring houses.

(2) The authority may alter, enlarge, repair or improve a house so erected, converted or acquired.

(3) These powers may equally be exercised in relation to land acquired for the purpose—

(a) of disposing of houses provided, or to be provided, on the land, or

(b) of disposing of the land to a person who intends to provide housing accommodation on it.

(4) A local housing authority may not under this Part provide a cottage with a garden of more than one acre.

10 Provision of furnishings and fittings.

(1) A local housing authority may fit out, furnish and supply a house provided by them under this Part with all requisite furniture, fittings and conveniences.

(2) A local housing authority may sell, or supply under a hire-purchase agreement or a conditional sale agreement, furniture to the occupants of houses so provided, and may for that purpose buy furniture.

(3) In subsection (2) “conditional sale agreement” and “hire-purchase agreement” have the same meaning as in the [1974 c. 39.] Consumer Credit Act 1974.

11 Provision of board and laundry facilities.

(1) A local housing authority may provide in connection with the provision of housing accommodation by them under this Part—

(a) facilities for obtaining meals and refreshments, and

(b) facilities for doing laundry and laundry services,

such as accord with the needs of the persons for whom the housing accommodation is provided.

(2) The authority may make reasonable charges for meals and refreshments provided by virtue of this section and for the use of laundry facilities or laundry services so provided.

(3) A justices' licence under the [1964 c. 26] Licensing Act 1964 for the sale of intoxicating liquor in connection with the provision of facilities for obtaining meals and refreshments under this section shall only authorise the sale of such liquor for consumption with a meal.

(4) A local housing authority in carrying on activities under this section is subject to all relevant enactments and rules of law, including enactments relating to the sale of intoxicating liquor, in the same manner as other persons carrying on such activities.

12 Provision of shops, recreation grounds, etc.

(1) A local housing authority may, with the consent of the Secretary of State, provide and maintain in connection with housing accommodation provided by them under this Part—

(a) buildings adapted for use as shops,

(b) recreation grounds, and

(c) other buildings or land which, in the opinion of the Secretary of State, will serve a beneficial purpose in connection with the requirements of the persons for whom the housing accommodation is provided.

(2) The Secretary of State may, in giving his consent, by order apply, with any necessary modifications, any statutory provisions which would have been applicable if the land or buildings had been provided under any enactment giving a local authority powers for the purpose.

(3) The power conferred by subsection (1) may be exercised either by the local housing authority themselves or jointly with another person.

13 Provision of streets, roads and open spaces and development generally.

(1) A local housing authority may lay out and construct public streets or roads and open spaces on land acquired by them for the purposes of this Part.

(2) Where they dispose of land to a person who intends to provide housing accommodation on it, they may contribute towards the expenses of the development of the land and the laying out and construction of streets on it, subject to the condition that the streets are dedicated to the public.

14 Exercise of powers by authority outside district.

(1) A local housing authority may, for supplying the needs of their district, exercise outside their district the powers conferred by sections 9 to 13 (provision of housing accommodation and related powers).

(2) A district council shall before doing so give notice of their intention—

(a) to the council of the county in which their district is situated, and

(b) if they propose to exercise the power outside that county, to the council of the county in which they propose to exercise the power;

but failure to give notice does not invalidate the exercise of the power.

(3) Where housing operations under this Part are being carried out by a local housing authority outside their own district, the authority’s power to execute works necessary for the purposes of, or incidental to the carrying out of, the operations, is subject to entering into an agreement with the council of the county, London borough or district in which the operations are being carried out, as to the terms and conditions on which the works are to be executed.

(4) Where housing operations under this Part have been carried out by a local housing authority outside their own district, and for the purposes of the operations public streets or roads have been constructed and completed by the authority, the liability to maintain the streets or roads vests in the council which is the local highway authority for the area in which the operations were carried out unless that council are satisfied that the streets or roads have not been properly constructed.

(5) Where a local housing authority carry out housing operations outside their own district, any difference arising between that authority and any authority in whose area the operations are carried out may be referred by either authority to the Secretary of State whose decision shall be final and binding on them.

Powers of authorities in London

15 Additional powers of authorities in London.

(1) A London borough council may provide and maintain in connection with housing accommodation provided by them under this Part buildings or parts of buildings adapted for use for any commercial purpose.

(2) A local housing authority in Greater London may make arrangements for the rehousing of any person by another such authority; and the arrangements may include provision for the payment of contributions by the former authority to the latter.

(3) The council of an Inner London borough and the Common Council of the City of London may, for the purpose of facilitating the erection of houses in their district, suspend, alter or relax the provisions of any enactment or byelaw relating to the formation or laying out of new streets or the construction of sewers or of buildings intended for human habitation.

(4) The powers conferred by subsections (1) and (3) are exercisable only with the consent of the Secretary of State.

16 Exercise of powers outside Greater London.

(1) A local housing authority in Greater London shall not exercise any powers under this Part outside Greater London unless it appears to the Secretary of State, on an application by the authority, expedient that the needs of the authority’s district with respect to the provision of housing accommodation should be satisfied by the provision of such accommodation outside Greater London, and he consents to the exercise of the power.

(2) The power conferred by section 15(1) (provision of commercial buildings) shall not be exercised outside Greater London except with the consent of the council of the district concerned.

Acquisition of land, etc.

17 Acquisition of land for housing purposes.

(1) A local housing authority may for the purposes of this Part—

(a) acquire land as a site for the erection of houses,

(b) acquire houses, or buildings which may be made suitable as houses, together with any land occupied with the houses or buildings,

(c) acquire land proposed to be used for any purpose authorised by sections 11, 12 and 15(1) (facilities provided in connection with housing accommodation), and

(d) acquire land in order to carry out on it works for the purpose of, or connected with, the alteration, enlarging, repair or improvement of an adjoining house.

(2) The power conferred by subsection (1) includes power to acquire land for the purpose of disposing of houses provided, or to be provided, on the land or of disposing of the land to a person who intends to provide housing accommodation on it.

(3) Land may be acquired by a local housing authority for the purposes of this Part by agreement, or they may be authorised by the Secretary of State to acquire it compulsorily.

(4) A local housing authority may, with the consent of, and subject to any conditions imposed by, the Secretary of State, acquire land for the purposes of this Part notwithstanding that the land is not immediately required for those purposes; but an authority shall not be so authorised to acquire land compulsorily unless it appears to the Secretary of State that the land is likely to be required for those purposes within ten years from the date on which he confirms the compulsory purchase order.

18 Duties with respect to buildings acquired for housing purposes.

(1) Where a local housing authority acquire a building which may be made suitable as a house, they shall forthwith proceed to secure that the building is so made suitable either by themselves executing any necessary works or by leasing it or selling it to some person subject to conditions for securing that he will so make it suitable.

(2) Where a local housing authority—

(a) acquire a house, or

(b) acquire a building which may be made suitable as a house and themselves carry out any necessary work as mentioned in subsection (1),

they shall, as soon as practicable after the acquisition or, as the case may be, after the completion of the necessary works, secure that the house or building is used as housing accommodation.

19 Appropriation of land.

(1) A local housing authority may appropriate for the purposes of this Part any land for the time being vested in them or at their disposal; and the authority have the same powers in relation to land so appropriated as they have in relation to land acquired by them for the purposes of this Part.

(2) Where a local housing authority have acquired or appropriated land for the purposes of this Part, they shall not, without the consent of the Secretary of State, appropriate any part of the land consisting of a house or part of a house for any other purpose.

(3) The Secretary of State’s consent may be given—

(a) either generally to all local housing authorities or to a particular authority or description of authority, and

(b) either in relation to particular land or in relation to land of a particular description;

and it may be given subject to conditions.

Housing management

20 Application of housing management provisions.

(1) The following provisions of this Part down to section 26 (general provisions on housing management matters) apply in relation to all houses held by a local housing authority for housing purposes.

(2) References in those provisions to an authority’s houses shall be construed accordingly.

21 General powers of management.

(1) The general management, regulation and control of a local housing authority’s houses is vested in and shall be exercised by the authority and the houses shall at all times be open to inspection by the authority.

(2) Subsection (1) has effect subject to section 27 (agreements for exercise of housing management functions by co-operative).

22 Allocation of housing.

A local housing authority shall secure that in the selection of their tenants a reasonable preference is given to—

(a) persons occupying insanitary or overcrowded houses,

(b) persons having large families,

(c) persons living under unsatisfactory housing conditions, and

(d) persons towards whom the authority are subject to a duty under section 65 or 68 (persons found to be homeless).

23 Byelaws.

(1) A local housing authority may make byelaws for the management, use and regulation of their houses.

(2) A local housing authority may make byelaws with respect to the use of land held by them by virtue of section 12 (recreation grounds and other land provided in connection with housing), excluding land covered by buildings or included in the curtilage of a building or forming part of a highway.

(3) A local housing authority shall as respects their lodging-houses by byelaws make sufficient provision for the following purposes—

(a) for securing that the lodging-houses are under the management and control of persons appointed or employed by them for the purpose,

(b) for securing the due separation at night of men and boys above eight years old from women and girls,

(c) for preventing damage, disturbance, interruption and indecent and offensive language and behaviour and nuisances, and

(d) for determining the duties of the persons appointed by them;

and a printed copy or a sufficient abstract of the byelaws relating to lodging-houses shall be put up and at all times kept in every room in the lodging-houses.

24 Rents.

(1) A local housing authority may make such reasonable charges as they may determine for the tenancy or occupation of their houses.

(2) The authority shall from time to time review rents and make such changes, either of rents generally or of particular rents, as circumstances may require.

25 Increase of rent where tenancy not secure.

(1) This section applies where a house is let by a local housing authority on a weekly or other periodic tenancy which is not a secure tenancy.

(2) The rent payable under the tenancy may, without the tenancy being terminated, be increased with effect from the beginning of a rental period by a written notice of increase given by the authority to the tenant.

(3) The notice is not effective unless—

(a) it is given at least four weeks before the beginning of the rental period, or any earlier day on which the payment of rent in respect of that period falls to be made,

(b) it tells the tenant of his right to terminate the tenancy and of the steps to be taken by him if he wishes to do so, and

(c) it gives him the dates by which, if in accordance with subsection (4) the increase is not to be effective, a notice to quit must be received by the authority and the tenancy be made to terminate.

(4) Where the notice is given for the beginning of a rental period and the tenancy continues into that period, the notice shall not have effect if—

(a) the tenancy is terminated by notice to quit given by the tenant in accordance with the provisions (express or implied) of the tenancy,

(b) the notice to quit is given before the end of the period of two weeks following the date on which the notice of increase is given, or such longer period as may be allowed by the notice of increase, and

(c) the date on which the tenancy is made to terminate is not later than the earliest day on which the tenancy could be terminated by a notice to quit given by the tenant on the last day of that period.

(5) In this section “rental period” means a period in respect of which a payment of rent falls to be made.

26 Financial assistance towards tenants' removal expenses.

(1) Where a tenant of one of the houses of a local authority moves to another house (whether or not that house is also one of theirs), the authority may—

(a) pay any expenses of the removal, and

(b) where the tenant is purchasing the house, pay any expenses incurred by him in connection with the purchase, other than the purchase price.

(2) If the house belongs to the same authority subsection (1)(b) only applies if the house has never been let and was built expressly with a view to sale or for letting.

(3) The Secretary of State may give directions to authorities in general or to any particular authority—

(a) as to the expenses which may be treated (whether generally or in any particular case) as incurred in connection with the purchase of a house, and

(b) limiting the amount which they may pay in respect of such expenses.

(4) An authority may make their payment of expenses subject to conditions.

Agreements with housing co-operatives

27 Agreements with housing co-operatives.

(1) A local housing authority may, with the approval of the Secretary of State, make an agreement with a housing co-operative—

(a) for the exercise by the co-operative, on such terms as may be provided in the agreement, of any of the authority’s powers relating to land in which the authority has a legal estate and for the time being holds for the purposes of this Part, and the performance by the co-operative of any of the authority’s duties relating to such land, or

(b) for the exercise by the co-operative, in connection with such land, of any of the authority’s powers under section 10 or 11 (provision of furnishings and fittings or board and laundry facilities).

(2) In this section “housing co-operative” means a society, company or body of trustees for the time being approved by the Secretary of State for the purposes of this section.

(3) The Secretary of State’s approval to the making of an agreement may be given either—

(a) generally to local housing authorities, or

(b) to particular authorities or descriptions of authority;

and may be given unconditionally or subject to conditions.

(4) The terms of the agreement may provide for the letting of land by the authority to the co-operative.

(5) Where an authority has entered into an agreement under this section, neither the agreement itself nor any letting of land in pursuance of it shall be taken into account—

(a) in determining the authority’s reckonable income or expenditure for the purposes of housing subsidy under Part XIII, or

(b) as a ground for recovering, withholding or reducing any sum under section 427 (recoupment of housing subsidy);

but this applies where the letting is by way of a shared ownership lease only if, and to the extent that, the Secretary of State so determines.

(6) A housing association is not entitled to a housing association grant under the [1985 c. 69.] Housing Associations Act 1985, or to a revenue deficit grant or hostel deficit grant under that Act, in respect of land for the time being comprised in an agreement under this section.

Powers of county councils

28 Reserve powers to provide housing accommodation.

(1) County councils have the following reserve powers in relation to the provision of housing accommodation.

(2) They may undertake any activity for the purposes of, or incidental to, establishing the needs of the whole or a part of the county with respect to the provision of housing accommodation.

(3) If requested to do so by one or more local housing authorities for districts within the county, they may, with the consent of the Secretary of State, undertake on behalf of the authority or authorities the provision of housing accommodation in any manner in which they might do so.

(4) With the approval of the Secretary of State given on an application made by them, they may undertake the provision of housing accommodation in any manner in which a local housing authority for a district within the county might do so.

(5) The Secretary of State shall not give his consent under subsection (3) or his approval under subsection (4) except after consultation with the local housing authorities who appear to him to be concerned; and his consent or approval may be made subject to such conditions and restrictions as he may from time to time specify and, in particular, may include conditions with respect to—

(a) the transfer of the ownership and management of housing accommodation provided by the county council to the local housing authority, and

(b) the recovery by the county council from local housing authorities of expenditure incurred by the county council in providing accommodation.

(6) Before a county council by virtue of subsection (3) or (4) exercise outside the county any power under this Part they shall give notice to the council of the county in which they propose to exercise the power; but failure to give notice does not invalidate the exercise of the power.

29 Provision of accommodation for employees of county councils.

(1) A county council may provide houses for persons employed or paid by, or by a statutory committee of, the council.

(2) For that purpose the council may acquire or appropriate land in the same way as a local housing authority may acquire or appropriate land for the purposes of this Part; and land so acquired or appropriated may be disposed of by them in the same way as land held for the purposes of this Part.

Miscellaneous powers of other authorities and bodies

30 Application of provisions to new town corporations, etc.

(1) The following provisions apply in relation to a new town corporation as they apply in relation to a local housing authority—

• section 25 (increase of rent where tenancy not secure), and

• section 26 (financial assistance towards tenants' removal expenses).

(2) Section 27 (agreements with housing co-operatives) applies in relation to—

(a) a new town corporation and the powers of the corporation under the [1981 c. 64.] New Towns Act 1981, and

(b) the Development Board for Rural Wales and the powers of the Board under the [1976 c. 75.] Development of Rural Wales Act 1976,

as it applies in relation to a local housing authority and the functions of such an authority referred to in that section.

31 Power of bodies corporate to sell or let land for housing purposes.

A body corporate holding land may sell, exchange or lease the land for the purpose of providing housing of any description at such price, or for such consideration, or for such rent, as having regard to all the circumstances of the case is the best that can reasonably be obtained, notwithstanding that a higher price, consideration or rent might have been obtained if the land were sold, exchanged or leased for the purpose of providing housing of another description or for a purpose other than the provision of housing.

Disposal of land held for housing purposes

32 Power to dispose of land held for purposes of this Part.

(1) Without prejudice to the provisions of Part V (the right to buy), a local authority have power by this section, and not otherwise, to dispose of land held by them for the purposes of this Part.

(2) A disposal under this section may be effected in any manner but, subject to subsection (3), shall not be made without the consent of the Secretary of State.

(3) No consent is required for the letting of land under a secure tenancy or under what would be a secure tenancy but for any of paragraphs 2 to 12 of Schedule 1 (tenancies, other than long leases, which are not secure).

(4) For the purposes of this section the grant of an option to purchase the freehold of, or any other interest in, land is a disposal and a consent given to such a disposal extends to a disposal made in pursuance of the option.

(5) Sections 128 to 132 of the [1845 c. 18.] Lands Clauses Consolidation Act 1845 (which require surplus land first to be offered to the original owner and to adjoining land-owners) do not apply to the sale by a local authority of land held by them for the purposes of this Part.

33 Covenants and conditions which may be imposed.

(1) On a disposal under section 32 the local authority may impose such covenants and conditions as they think fit.

(2) But a condition of any of the following kinds may be imposed only with the consent of the Secretary of State—

(a) a condition limiting the price or premium which may be obtained on a further disposal of a house;

(b) in the case of a sale, a condition reserving a right of pre-emption;

(c) in the case of a lease, a condition precluding the lessee from assigning the lease or granting a sub-lease.

(3) In subsection (2)(b) a condition reserving a right of pre-emption means a condition precluding the purchaser from selling or leasing the land unless—

(a) he first notifies the authority of the proposed sale or lease and offers to sell or lease the land to them, and

(b) the authority refuse the offer or fail to accept it within one month after it is made.

(4) References in this section to the purchaser or lessee include references to his successors in title and any person deriving title under him or his successors in title.

34 Consents under ss. 32 and 33.

(1) This section applies in relation to the giving of the Secretary of State’s consent under section 32 or 33.

(2) Consent may be given—

(a) either generally to all local authorities or to a particular authority or description of authority;

(b) either in relation to particular land or in relation to land of a particular description.

(3) Consent may be given subject to conditions.

(4) Consent may, in particular, be given subject to conditions as to the price, premium or rent to be obtained on the disposal including conditions as to the amount by which on the disposal of a house by way of sale or by the grant or assignment of a lease at a premium, the price or premium is to be, or may be, discounted by the local authority.

35 Repayment of discount on early disposal.

(1) This section applies where, on a disposal of a house under section 32, a discount is given to the purchaser by the local authority in accordance with a consent given by the Secretary of State under subsection (2) of that section; but this section does not apply in any such case if the consent so provides.

(2) On the disposal the conveyance, grant or assignment shall contain a covenant binding on the purchaser and his successors in title to pay to the authority on demand, if within a period of five years there is a relevant disposal which is not an exempted disposal (but if there is more than one such disposal then only on the first of them), an amount equal to the discount, reduced by 20 per cent for each complete year which has elapsed after the conveyance, grant or assignment and before the further disposal.

36 Liability to repay is a charge on the premises.

(1) The liability that may arise under the covenant required by section 35 is a charge on the house, taking effect as if it had been created by deed expressed to be by way of legal mortgage.

(2) 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, or

(c) further advanced to him by that institution;

but 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 a legal charge securing an amount advanced or further advanced to the purchaser by that institution.

(3) A charge taking effect by virtue of this section is a land charge for the purposes of section 59 of the [1925 c. 21.] Land Registration Act 1925 notwithstanding subsection (5) of that section (exclusion of mortgages), and subsection (2) of that section applies accordingly with respect to its protection and realisation.

(4) The approved lending institutions for the purposes of this section are—

• a building society,

• a bank,

• a trustee savings bank,

• an insurance company,

• a friendly society,

and any body specified, or of a class or description specified, in an order made under section 156 (which makes provision in relation to disposals in pursuance of the right to buy corresponding to that made by this section.

37 Restriction on disposal of dwelling-houses in National Parks, etc.

(1) Where a conveyance, grant or assignment executed under section 32 is of a house situated in—

(a) a National Park.

(b) an area designated under section 87 of the National Parks and Access to the [1949 c. 97.] Countryside Act 1949 as an area of outstanding natural beauty, or

(c) an area designated as a rural area by order under section 157 (which makes provision in relation to disposals in pursuance of the right to buy corresponding to that made by this section),

the conveyance, grant or assignment may (unless it contains a condition of a kind mentioned in section 33(2)(b) or (c) (right of pre-emption or restriction on assignment)) contain a covenant limiting the freedom of the purchaser (including any successor in title of his and any person deriving title under him or such a successor) to dispose of the house in the manner specified below.

(2) The limitation is that until such time (if any) as may be notified in writing by the local authority to the purchaser or a successor in title of his, there will be no relevant disposal which is not an exempted disposal without the written consent of the authority; but that consent shall not be withheld if the disposal is to a person satisfying the condition stated in subsection (3).

(3) The condition is that the person to whom the disposal is made (or, if it is made to more than one person, at least one of them) has, throughout the period of three years immediately preceding the application for consent—

(a) had his place of work in a region designated by order under section 157(3) which, or part of which, is comprised in the National Park or area, or

(b) had his only or principal home in such a region;

or has had the one in part or parts of that period and the other in the remainder; but the region need not have been the same throughout the period.

(4) A disposal in breach of such a covenant as is mentioned in subsection (1) is void.

(5) The limitation imposed by such a covenant is a local land charge and, if the land is registered under the [1925 c. 21.] Land Registration Act 1925, the Chief Land Registrar shall enter the appropriate restriction on the register of title as if application therefore had been made under section 58 of that Act.

(6) In this section “purchaser” means the person acquiring the interest disposed of by the first disposal.

38 Relevant disposals.

(1) A disposal, whether of the whole of part of the house, is a relevant disposal for the purposes of this Part if it is—

(a) a conveyance of the freehold or an assignment of the lease, or

(b) the grant of a lease of sub-lease (other than a mortgage term) for a term of more than 21 years otherwise than at a rack rent.

(2) For the purposes of subsection (1)(b) it shall be assumed—

(a) that any option to renew or extend a lease or sub-lease, whether or not forming part of a series of options, is exercised, and

(b) that any option to terminate a lease or sub-lease is not exercised.

39 Exempted disposals.

(1) A disposal is an exempted disposal for the purposes of this Part if—

(a) it is a disposal of the whole of the house and a conveyance of the freehold or an assignment of the lease and the person or each of the persons to whom it is made is a qualifying person (as defined in subsection (2));

(b) it is a vesting of the whole of the house in a person taking under a will or on an intestacy;

(c) it is a disposal of the whole of the house in pursuance of an order made under section 24 of the [1973 c. 18.] Matrimonial Causes Act 1973 (property adjustment orders in connection with matrimonial proceedings) or section 2 of the [1975 c. 63.] Inheritance (Provision for Family and Dependants) Act 1975 (orders as to financial provision to be made from estate;

(d) it is a compulsory disposal; or

(e) the property disposed of is property included with the house by virtue of the defintiion of “house” in section 56 (yard, garden, outhouses, &c.).

(2) For the purposes of subsection (1)(a), a person is a qualifying person in relation to a disposal if—

(a) he is the person or one of the persons by whom the disposal is made,

(b) he is the spouse or a former spouse of that person or one of those persons, or

(c) he is a member of the family of that person or one of those persons and has resided with him throughout the period of twelve months ending with the disposal.

40 Meaning of “compulsory disposal”.

In this Part a “compulsory disposal” means a disposal of property which is acquired compulsorily, or is acquired by a person who has made or would have made, or for whom another person has made or would have made, a compulsory purchase order authorising its compulsory purchase for the purposes for which it is acquired.

41 Exempted disposals which end liability under covenants.

Where there is a relevant disposal which is an exempted disposal by virtue of section 39(1)(d) or (e) (compulsory disposal or disposal of yard, garden, &c.)—

(a) the covenant required by section 35 (repayment of discount on early disposal) is not binding on the person to whom the disposal is made or any successor in title of his, and that covenant and the charge taking effect by virtue of section 36 (liability to repay a charge on the premises) cease to apply in relation to the property disposed of, and

(b) any such covenant as is mentioned in section 37 (restriction on disposal of houses in National Parks, etc.) ceases to apply in relation to the property disposed of.

42 Treatment of options.

(1) For the purposes of this Part the grant of an option enabling a person to call for a relevant disposal which is not an exempted disposal shall be treated as such a disposal made to him.

(2) For the purposes of section 37(2) (requirement of consent to disposal of house in National Park etc.) a consent to such a grant shall be treated as a consent to a disposal made in pursuance of the option.

43 Consent required for certain disposals not within s. 32.

(1) The consent of the Secretary of State is required for the disposal by a local authority, otherwise than in pursuance of Part V (the right to buy), of a house belonging to the authority—

(a) which is let on a secure tenancy, or

(b) of which a lease has been granted in pursuance of Part V,

but which has not been acquired or appropriated by the authority for the purposes of this Part.

(2) Consent may be given—

(a) either generally to all local authorities or to any particular local authority or description of authority, and

(b) either generally in relation to all houses or in relation to any particular house or description of house.

(3) Consent may be given subject to conditions.

(4) Consent may, in particular, be given subject to conditions as to the price, premium or rent to be obtained on a disposal of the house, including conditions as to the amount by which, on a disposal of the house by way of sale or by the grant or assignment of a lease at a premium, the price or premium is to be, or may be, discounted by the local authority.

(5) For the purposes of this section the grant of an option to purchase the freehold of, or any other interest in, a house to which this section applies is a disposal and a consent given under this section to such a disposal extends to a disposal made in pursuance of the option.

44 Avoidance of certain disposals of houses without consent.

(1) A disposal of a house by a local authority made without the consent required by section 32 or 43 is void, unless—

(a) the disposal is to an individual (or to two or more individuals), and

(b) the disposal does not extend to any other house.

(2) Subsection (1) has effect notwithstanding section 29 of the [1959 c. 53.] Town and Country Planning Act 1959 and section 128(2) of the [1972 c. 70.] Local Government Act 1972 (protection of purchasers dealing with authority).

(3) In this section “house” does not have the extended meaning applicable by virtue of the definition of “housing accommodation” in section 56, but includes a flat.

Restriction on service charges

45 Disposals in relation to which ss. 46 to 51 apply, etc. payable after disposal of house.

(1) The following provisions of this Part down to section 51 (restrictions on, and provision of information about, services charges) apply where—

(a) a house has been disposed of by a public sector authority,

(b) the conveyance or grant, or, in the case of an assignment of a lease, the lease, enabled the vendor or lessor to recover from the purchaser or lessee a service charge, and

(c) the house is not a flat within the meaning of sections 18 to 30 of the [1985 c. 70.] Landlord and Tenant Act 1985 (which make provision for flats corresponding to that made by the following provisions of this Act).

(2) In subsection (1)(a)—

(a) the reference to disposal is to the conveyance of the freehold or the grant or assignment of a long lease (that is, a lease creating a long tenancy as defined in section 115); and

(b) “public sector authority” means—

• a local authority,

• a new town corporation,

• an urban development corporation,

• the Development Board for Rural Wales,

• the Housing Corporation, or

• a registered housing association.

(3) The following provisions—

• section 170 (power of Secretary of State to given assistance in connection with legal proceedings), and

• section 181 (jurisdiction of county court),

apply to proceedings and questions arising under this section and sections 46 to 51 as they apply to proceedings and questions arising under Part V (the right to buy).

46 Meaning of “service charge” and related expressions.

(1) In sections 45 to 51 “service charge” means an amount payable by the purchaser or lessee—

(a) which is payable, directly or indirectly, for services, repairs, maintenance or insurance or the vendor’s or lessor’s costs of management, and

(b) the whole or part of which varies or may vary according to the relevant costs.

(2) The relevant costs are the costs or estimated costs incurred or to be incurred by or on behalf of the payee, or (in the case of a lease) a superior landlord, in connection with the matters for which the service charge is payable.

(3) For this purpose—

(a) “costs” includes overheads, and

(b) costs are relevant costs in relation to a service charge whether they are incurred, or to be incurred, in the period for which the service charge is payable or in an earlier or later period.

(4) In relation to a service charge—

(a) the “payee” means the person entitled to enforce payment of the charge, and

(b) the “payer” means the person liable to pay it.

47 Limitation of service charges.

(1) Relevant costs shall be taken into account in determining the amount of a service charge payable for a period—

(a) only to the extent that they are reasonably incurred, and

(b) where they are incurred on the provision of services or the carrying out of works, only if the services or works are of a reasonable standard;

and the amount payable shall be limited accordingly.

(2) Where the service charge is payable before the relevant costs are incurred, no greater amount than is reasonable is so payable and after the relevant costs have been incurred any necessary adjustment shall be made by repayment, reduction of subsequent charges or otherwise.

(3) An agreement by the payer (other than an arbitration agreement within the meaning of section 32 of the [1950 c. 27.] Arbitration Act 1950) is void in so far as it purports to provide for a determination in a particular manner or on particular evidence of any question—

(a) whether an amount payable before costs for services, repairs, maintenance, insurance or management are incurred is reasonable,

(b) whether such costs were reasonably incurred, or

(c) whether services or works for which costs were incurred are of a reasonable standard.

48 Information as to relevant costs.

(1) The payer may require the payee in writing to supply him with a written summary of the costs incurred—

(a) if the relevant accounts are made up for periods of twelve months, in the last such period ending not later than the date of the request, or

(b) if the accounts are not so made up, in the period of twelve months ending with the date of the request,

and which are relevant to the service charges payable or demanded as payable in that or any other period.

(2) The payee shall comply with the request within one month of the request or within six months of the end of the period referred to in subsection (1)(a) or (b), whichever is the later.

(3) The summary shall set out those costs in a way showing how they are or will be reflected in demands for service charges and must be certified by a qualified accountant as in his opinion a fair summary complying with this requirement and as being sufficiently supported by accounts, receipts and other documents which have been produced to him.

(4) Where the payer has obtained such a summary as is referred to in subsection (1) (whether in pursuance of this section or otherwise, he may within six months of obtaining it require the payee in writing to afford him reasonable facilities—

(a) for inspecting the accounts, receipts and other documents supporting the summary, and

(b) for taking copies of extracts from them,

and the payee shall then make such facilities available to the payer for a period of two months beginning not later than one month after the request is made.

(5) A request under this section shall be deemed to be served on the payee if it is served on a person who receives the service charge on behalf of the payee; and a person on whom a request is so served shall forward it as soon as possible to the payee.

(6) A disposal of the house by the payer does not affect the validity of a request made under this section before the disposal; but a person is not obliged to provide a summary or make the facilities available more than once for the same house and for the same period.

49 Information held by superior landlord.

(1) If a request under section 48(1) (information about costs incurred) relates in whole or in part to relevant costs incurred by or on behalf of a superior landlord and the payee is not in possession of the relevant information—

(a) he shall in turn make a written request for the relevant information to the person who is his landlord (and so on if that person is not himself the superior landlord) and the superior landlord shall comply with that request within a reasonable time, and

(b) the payee shall then comply with the payer’s request, or that part of it which relates to the relevant costs incurred by or on behalf of the superior landlord, within the time allowed by section 48 or such further time, if any, as is reasonable in the circumstances.

(2) If a request made under section 48(4) (inspection of supporting accounts, receipts, etc.) relates to a summary of costs incurred by or on behalf of a superior landlord, the payee shall forthwith inform the payer of that fact and of the name and address of the superior landlord; and section 48(4) shall then apply as if the superior landlord were the payee.

50 Offences.

(1) If a person fails without reasonable excuse to perform a duty imposed on him by section 48 or 49 (provision of information, &c.), he commits a summary offence and is liable on conviction to a fine not exceeding level 4 on the standard scale.

(2) Subsection (1) does not apply where the payee is—

• a local authority,

• a new town corporation, or

• the Development Board for Rural Wales.

51 Meaning of “qualified accountant”.

(1) The reference to a “qualified accountant” in section 48(3) (certification of summary of information about relevant costs) is to a person who, in accordance with the following provisions, has the necessary qualification and is not disqualified from acting.

(2) A person has the necessary qualification if he is a member of one of the following bodies—

• the Institute of Chartered Accountants in England and Wales,

• the Institute of Chartered Accountants in Scotland,

• the Association of Certified Accountants,

• the Institute of Chartered Accountants in Ireland, or

• any other body of accountants established in the United Kingdom and recognised by the Secretary of State for the purposes of section 389(1)(a) of the [1985 c. 6.] Companies Act 1985,

or if he is a person who is for the time being authorised by the Secretary of State under section 389(1)(b) of that Act (or the corresponding provision of the [1948 c. 38.] Companies Act 1948) as being a person with similar qualifications obtained outside the United Kingdom.

(3) A Scottish firm has the necessary qualification if each of the partners in it has the necessary qualification.

(4) The following are disqualified from acting—

(a) a body corporate, except a Scottish firm;

(b) an officer or employee of the payee or, where the payee is a company, of an associated company;

(c) a person who is a partner or employee of any such officer or employee.

(5) For the purposes of subsection (4)(b) a company is associated with the payee company if it is (within the meaning of section 736 of the Companies Act 1985) the payee’s holding company or subsidiary or is a subsidiary of the payee’s holding company.

(6) Where the payee is a local authority, a new town corporation or the Development Board for Rural Wales—

(a) the persons who have the necessary qualification include members of the Chartered Institute of Public Finance and Accountancy, and

(b) subsection (4)(b) (disqualification of officers and employees) does not apply.

Miscellaneous

52 Compliance with minimum standards in erection of houses.

A local housing authority by whom a house is erected under the enactments relating to housing, whether with or without financial assistance from the government, shall secure—

(a) that a fair wages clause complying with the requirements of any resolution of the House of Commons for the time being in force with respect to contracts for government departments is inserted in all contracts for the erection of the house, and

(b) that, in except in so far as the Secretary of State may, in a particular case, dispense with the observance of this paragraph, the house is provided with a fixed bath in a bathroom.

53 Prefabs deemed to be houses provided under this Part.

(1) This section applies to prefabs, that is to say structures made available to a local authority under section 1 of the [1944 c. 36.] Housing (Temporary Accommodation) Act 1944 (“the 1944 Act”).

(2) For the purposes of this Act prefabs shall be deemed to be houses provided by the local housing authority under this Part.

(3) A prefab and the land on which it is situated may, if immediately before the repeal of the 1944 Act (on 25th August 1972) it was deemed to be land acquired for the purposes of Part V of the [1957 c. 56.] Housing Act 1957, be appropriated or disposed of by the local housing authority in the same way as any other land acquired or deemed to be acquired for the purposes of this Part.

(4) The provisions of this section do not affect any obligation of a local housing authority to another person as respects the removal or demolition of a prefab.

(5) References in this section to a prefab include fittings forming part of it.

Supplementary provisions

54 Powers of entry.

(1) A person authorised by a local housing authority or the Secretary of State may, at any reasonable time, on giving 24 hours' notice of his intention to the occupier, and to the owner if the owner is known, enter premises for the purpose of survey and examination—

(a) where it appears to the authority or Secretary of State that survey or examination is necesary in order to determine whether any powers under this Part should be exercised in respect of the premises, or

(b) in the case of premises which the authority are authorised by this Part to purchase compulsorily.

(2) An authorisation for the purposes of this section shall be in writing stating the particular purpose or purposes for which the entry is authorised.

55 Penalty for obstruction.

(1) It is a summary offence to obstruct an officer of the local housing authority, or of the Secretary of State, or any person authorised to enter premises in pursuance of this Part, in the performance of anything which he is by this Part required or authorised to do.

(2) A person who commits such an offence is liable on conviction to a fine not exceeding level 2 on the standard scale.

56 Minor definitions.

In this Part—

• “house” includes any yard, garden, outhouses and appurtenances belonging to the house or usually enjoyed with it;

• “housing accommodation” includes flats, lodging-houses and hostels, and “house” shall be similarly construed;

• “lodging-houses” means houses not occupied as separate dwellings;

• “member of family” in relation to a person, has the same meaning as in Part V (the right to buy);

• “owner”, in relation to premises—

  (a)

  means a person (other than a mortgagee not in possession) who is for the time being entitled to dispose of the fee simple in the premises, whether in possession or in reversion, and

  (b)

  includes also a person holding or entitled to the rents and profits of the premises under a lease of which the unexpired term exceeds three years.

57 Index of defined expressions: Part II.

The following Table shows provisions defining or otherwise explaining expressions used in this Part (other than provisions defining or explaining an expression used in the same section or paragraph):—

bank	section 622
building society	section 622
compulsory disposal	section 40
development corporation	section 4(c)
district (of a local housing authority)	section 2(1)
exempted disposal	section 39
family (member of)	sections 56 and 186
friendly society	section 622
hostel	section 622
house	section 56
housing accommodation	section 56
housing association	section 5(1)
Housing Revenue Account	section 417
insurance company	section 622
lease	section 621
local authority	section 4(e)
local housing authority	sections 1, 2(2)
local housing authority’s houses	section 20
lodging-houses	section 56
new town corporation	section 4(b)
owner	section 56
payee and payer (in relation to a service charge)	section 46
qualified accountant (for the purposes of section 48(3))	section 51
registered (in relation to a housing association)	section 5(4)
relevant costs (in relation to a service charge)	section 46(2), (3)
relevant disposal	section 38 (and see section 452(3))
secure tenancy	section 79
service charge	section 46(1)
shared ownership lease	section 622
standard scale (in reference to the maximum fine on summary conviction)	section 622
street	section 622
tenancy and tenant	section 621
trustee savings bank	section 622
urban development corporation	section 4(d)