- Latest available (Revised)
- Point in Time (25/09/1991)
- Original (As enacted)
Version Superseded: 01/12/1997
Point in time view as at 25/09/1991.
Housing Act 1985, Cross Heading: Assistance for first-time buyers is up to date with all changes known to be in force on or before 20 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.
Changes and effects yet to be applied by the editorial team are only applicable when viewing the latest version or prospective version of legislation. They are therefore not accessible when viewing legislation as at a specific point in time. To view the ‘Changes to Legislation’ information for this provision return to the latest version view using the options provided in the ‘What Version’ box above.
(1)The Secretary of State may make advances to recognised lending institutions enabling them to provide assistance to first-time purchasers of house property in Great Britain where—
(a)the purchaser intends to make his home in the property,
(b)finance for the purchase of the property (and improvements, if any) is obtained by means of a secured loan from the lending institution, and
(c)the purchase price is within the prescribed limits.
(2)In this section “prescribed” means prescribed by order of the Secretary of State.
(3)An order—
(a)may prescribe different limits for properties in different areas, and
(b)shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.
Modifications etc. (not altering text)
C1Ss. 445–450: power to amend or repeal conferred by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 171(1)(a)(2)
(1)Assistance under section 445 (assistence for first-time buyers) may be given in the following ways—
(a)the secured loan may be financed by the Secretary of State to the exent of £600 (that amount being normally additional to that which the institution would otherwise have lent, but not so that the total loan exceeds the loan value of the property);
(b)£600 of the total loan may be made free of interest, and of any obligation to repay principal, for up to five years from the date of purchase; and
(c)the institution may provide the purchaser with a bonus on his savings (which bonus shall be tax-exempt) up to a maximum of £110, payable towards the purchase or expenses arising in connection with it.
(2)The purchaser qualifies for assistance under subsection (1)(a) and (b) (interest-free loan) by satisfying the following conditions with respect to his own savings—
(a)that he has been saving with a recognised savings institution for at least two years preceding the date of his application for assistance,
(b)that throughout the twelve months preceding that date he had at least £300 of such savings, and
(c)that by that date he has accumulated at least £600 of such savings;
and he qualifies for assistance under subsection (1)(c) (bonus on savings) by satisfying the conditions specified in paragraphs (a) and (b) above.
(3)The Secretary of State may allow for the conditions to be relaxed or modified in particular classes of case.
(4)No assistance shall be given in any case unless the amount of the secured loan is at least £1,600 and amounts to not less than 25 per cent. of the purchase price of the property.
(5)The Secretary of State may by order made with the consent of the Treasury—
(a)alter any of the money sums specified in this section;
(b)substitute a longer or shorter period for either or both of the periods mentioned in subsection (2)(a) and (b) (conditions as to savings);
(c)alter the condition in subsection (2)(c) so as to enable the purchaser to satisfy it with lesser amounts of savings and to enable assistance to be given in such a case according to reduced scales specified in the order;
(d)alter the percentage mentioned in subsection (4) (minimum secured loan).
(6)An order shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.
Modifications etc. (not altering text)
C2Ss. 445–450: power to amend or repeal conferred by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 171(1)(a)(2)
C3S. 446(3) amended by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 171(3)(a)
(1)The lending institutions recognised for the purposes of section 445 (assistance for first-time buyers) are—
[F1building societies,]
local authorities,
new town corporations,
the Development Board for Rural Wales,
trustee savings banks
banks,
insurance companies, and
friendly societies.
[F2Swansea Building Society]
[F3Abbey Life Home Service Limited.
Abbey Life Mortgage Securities Limited.
Abbey Life Residential Loans Limited.
General Portfolio Finance Limited.
Royal London Homebuy Limited.]
[F4Abbey Life Mortgage Finance Limited,
Abbey Life Mortgage Loans Limited,
CIS Mortgage Maker Limited]
[F5Mortgage Express Ltd.]
[F6Halifax Loans Limited
BNP Mortgages Limited.]
[F7Sun Life of Canada Home Loans Limited
Halifax Loans (No.2) Limited
Halifax Loans (No.3) Limited
Halifax Loans (No.4) Limited.]
(2)The Secretary of State may by order made with the consent of the Treasury—
(a)add to the list in subsection (1), or
(b)direct that a named body shall no longer be a recognised lending institution;
but before making an order under paragraph (b) he shall give an opportunity for representations to be made on behalf of the body concerned.
(3)An order shall be made by statutory instrument.
Textual Amendments
F1Words substituted by Building Societies Act 1986 (c. 53, SIF 16), ss. 54(3)(a)(5), 120(1), Sch. 18 Pt. I para. 18(3)
F2Entry added by S.I. 1986/1489, art. 2
F3Entries added by S.I. 1988/84, art. 2, Sch.
F4Entries added by S.I. 1988/1723, art. 2
F5Entry added by S.I. 1989/956, art. 2
F6Entries added by S.I. 1989/2328, art. 2
F7Entries added by S.I. 1990/1387, art. 2
Modifications etc. (not altering text)
C4Ss. 445–450: power to amend or repeal conferred by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 171(1)(a)(2)
C5S. 447 amended by S.I. 1986/148, art. 10(6)
C6By S.I. 1987/1202, art. 2, Sch. the bodies “Yorkshire Bank Home Loans Limited” and “Abbey Life Home Loans Limited.” are specified for the purposes of section 447(2)
C7By S.I. 1987/1809, art. 2, Sch. the bodies “Abbey Life Executive Mortgages Limited.” and “Abbey Life Funding Limited.” are specified for the purposes of section 447(2)
(1)The savings institutions recognised for the purposes of section 446 (qualifying conditions as to savings) are—
[F8building societies]
local authorities
trustee savings banks,
banks,
friendly societies,
the Director of Savings, and
the Post Office,
[F9Swansea Building Society]
and savings institutions recognised for the purposes of the corresponding provisions in force in Scotland or Northern Ireland.
(2)The Secretary of State may by order made with the consent of the Treasury—
(a)add to the list in subsection (1), or
(b)direct that a named body shall no longer be a recognised savings institution;
but before making an order under paragraph (b) he shall give an opportunity for representations to be made on behalf of the body concerned.
(3)An order shall be made by statutory instrument.
Textual Amendments
F8Words substituted by Building Societies Act 1986 (c. 53, SIF 16), ss. 54(3)(a)(5), 120(1), Sch. 18 Pt. I para. 18(3)
F9Entry added by S.I. 1986/1490, art. 2
Modifications etc. (not altering text)
C8Ss. 445–450: power to amend or repeal conferred by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 171(1)(a)(2)
(1)Advances to lending institutions under section 445 (assistance for first-time buyers) shall be on such terms as to repayment and otherwise as may be settled by the Secretary of State, with the consent of the Treasury, after consultation with lending and savings institutions or organisations representative of them; and the terms shall be embodied in directions issued by the Secretary of State.
(2)The following matters, among others, may be dealt with in directions issued by the Secretary of State—
(a)the cases in which assistance is to be provided;
(b)the method of determining the loan value of property for the purpose of section 446(1)(a) (limit on total loan);
(c)the method of quantifying bonus by reference to savings;
(d)the considerations by reference to which a person is or is not to be treated as a first-time purchaser of house property;
(e)the steps which must be taken with a view to satisfying the conditions in section 446(2) (conditions as to purchaser’s own savings), and the circumstances in which those conditions are or are not to be treated as satisfied;
(f)the supporting evidence and declarations which must be furnished by a person applying for assistance, in order to establish his qualification for it, and the means of ensuring that restitution is made in the event of it being obtained by false representations;
(g)the way in which amounts paid over by way of assistance are to be repaid to the lending institutions and to the Secretary of State.
(3)The Secretary of State may, to the extent that he thinks proper for safeguarding the lending institutions, include in the terms an undertaking to indemnify the institutions in respect of loss suffered in cases where assistance has been given.
Modifications etc. (not altering text)
C9Ss. 445–450: power to amend or repeal conferred by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 171(1)(a)(2)
So much of an advance by a building society which is partly financed under section 445 (assistance for first-time buyers) or the corresponding Scottish or Northern Ireland provisions as is so financed shall be treated as not forming part of the advance for the purpose of determining—
(a)whether the advance, or any further advance made within two years of the date of purchase, is beyond the powers of the society, and
(b)the classification of the advance, or any such further advance, for the purposes of Part III of the Building Societies Act 1986.]
Textual Amendments
F10S. 450 substituted by Building Societies Act 1986 (c. 53, SIF 16), ss. 54(3)(a)(5), 120(1), Sch. 18 Pt. I para. 18(4)
Modifications etc. (not altering text)
C10Ss. 445–450: power to amend or repeal conferred by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 171(1)(a)(2)
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: