Housing Act 1985

Miscellaneous E+W

451 Loans by Public Works Loan Commissioners. E+W

(1) The Public Works Loan Commissioners may lend money for the purpose of constructing or improving houses, or facilitating or encouraging the construction or improvement of houses, to any person entitled to land for an estate in fee simple absolute in possession or for a term of years absolute of which not less than 50 years remains unexpired.

(2) A loan for any of those purposes, and interest on the loan, shall be secured by a mortgage of—

(a) the land in respect of which the purpose is to be carried out, and

(b) such other land, if any, as may be offered as security for the loan;

and the money lent shall not exceed three-quarters of the value, to be ascertained to the satisfaction of the Public Works Loan Commissioners, of the estate or interest in the land proposed to be so mortgaged.

(3) Loans may be made by instalments from time to time as the building or other work on land mortgaged under subsection (2) progresses (so, however, that the total amounts lent does not at any time exceed the amount specified in that subsection); and a mortgage may be accordingly made to secure such loans so made.

(4) If the loan exceeds two-thirds of the value referred to in subsection (2), the Public Works Loan Commissioners shall require, in addition to such a mortgage as is mentioned in that subsection, such further security as they may think fit.

(5) The period for repayment of the loan shall not exceed 40 years, and no money shall be lent on a mortgage of land or houses unless the estate proposed to be mortgaged is either a fee simple absolute in possession or an estate for a term of years absolute of which not less than 50 years are unexpired at the date of the loan.

(6) This section does not apply to housing associations; but corresponding provision is made by section 67 of the M1 Housing Associations Act 1985.

Marginal Citations

M1 1985 c. 69.

452 Vesting of house in authority entitled to exercise power of sale. E+W

(1) Where there has been a disposal of a house by a housing authority and—

(a) the authority is a mortgagee of the house,

(b) the conveyance or grant contains a pre-emption provision in favour of the authority, and

(c) within the period during which the pre-emption provision has effect the authority becomes entitled as mortgagee to exercise the power of sale conferred by section 101 of the M2 Law of Property Act 1925 or the mortgage deed.

the provisions of Schedule 17 apply with respect to the vesting of the house in the authority.

(2) In subsection (1)—

• “disposal” means a conveyance of the freehold or a grant or assignment of a long lease;

• [F1 “housing authority” means—

• a local authority,

• a new town corporation,

• an urban development corporation,

• the Development Board for Rural Wales,

• the [F2 Corporation], or

• a registered housing association;]

• “pre-emption provision” means a covenant imposing a condition of the kind mentioned in section 33(2)(b) or (c) (right of pre-emption or prohibition of assignment), the limitation specified in section 157(4) (restriction on disposal of dwellings in National Parks, etc.), or any other provision to the like effect.

(3) The vesting of a house under Schedule 17 shall be treated as a relevant disposal for the purposes of—

(a) the provisions of Parts II and V relating to the covenant required by section 35 or 155 (repayment of discount on early disposal), and

(b) any provision of the conveyance or grant to the like effect as the covenant required by those sections.

(4) Where a conveyance or grant executed before 26th August 1984 contains both—

(a) a pre-emption provision within the meaning of subsection (1), and

(b) the covenant required by section 35 or 155 (repayment of discount on early disposal) or any other provision to the like effect.

the latter covenant or provision has effect as from that date with such modifications as may be necesary to bring it into conformity with the provisions of this section.

(5) The preceding provisions of this section do not apply where the conveyance or grant was executed before 8th August 1980.

(6) Where before 8th August 1980 a local authority sold property under the powers of section 104(1) of the M3 Housing Act 1957 (disposal of houses provided under Part V of that Act) and—

(a) part of the price was secured by a mortgage of the property,

(b) such a condition was imposed on the sale as was mentioned in section 104(3)(c) of that Act, and

(c) within the period during which the authority has the right to re-acquire the property they become entitled to exercise the power of sale conferred by section 101 of the M4 Law of Property Act 1925 or by the mortgage deed,

the provisions of Schedule 17 apply with respect to the vesting of the property in the authority, but subject to the modifications specified in paragraph 4 of that Schedule.

Textual Amendments

F1 Definition repealed (prosp.) by Housing and Planning Act 1986 (c. 63, SIF 61), ss. 24(2)(3), 57(2), Sch. 5 Pt. II para. 35, Sch. 12 Pt. I

F2 Word substituted by Housing Act 1988 (c. 50, SIF 61), s. 140(1), Sch. 17 Pt. II para. 106

Marginal Citations

M2 1925 c. 20.

M3 1957 c. 56.

M4 1925 c. 20.

453 Further advances in case of disposal on shared ownership lease. E+W

(1) Where—

(a) a lease of a house, granted otherwise than in pursuance of the provisions of part V (the right to buy) relating to shared ownership leases, contains a provision to the like effect as that required by paragraph 1 of Schedule 8 (terms of shared ownership lease: right of tenant to acquire additional shares), and

(b) a housing authority has, in the exercise of any of its powers, left outstanding or advanced any amount on the security of the house.

that power includes power to advance further amounts for the purpose of assisting the tenant to make payments in pursuance of that provision.

[F3 (2) In subsection (1) “housing authority” means—

• a local authority,

• a new town corporation,

• the Development Board for Rural Wales, or

• a registered housing association.]

Textual Amendments

F3 S. 453(2) repealed (prosp.) by Housing and Planning Act 1986 (c. 63, SIF 61), ss. 24(2)(3), 57(2), Sch. 5 Pt. II para. 36, Sch. 12 Pt. I

454 Exclusion of Restrictive Trade Practices Act: recommendations as to implementation of this Part. E+W

Section 16(3) and (5) of the M5 Restrictive Trade Practices Act 1976 (recommendations by services supply associations to members) do not apply to—

(a) recommendations made to building societies or recognised bodies about the making of agreements under section 442 (local authority agreements to indemnify mortgagees) or the corresponding Northern Ireland provision, or

(b) recommendations made to lending institutions and savings institutions about the manner of implementing sections 445 to 449 (assistance for first-time buyers) or the corresponding Scottish or Northern Ireland provisions.

Provided that the recommendations are made with the approval of the Secretary of State, or, as the case may be, the Department of the Environment for Northern Ireland, which may be withdrawn at any time on one month’s notice.

Marginal Citations

M5 1976 c. 34.

455 Exclusion of Restrictive Trade Practices Act: agreements as to loans on security of new houses. E+W

(1) In determining for the purposes of the Restrictive Trade Practices Act 1976 whether an agreement between building societies is one to which that Act applies by virtue of an order made, or having effect as if made, under section 11 of that Act (restrictive agreements as to services), no account shall be taken of any term (whether or not subject to exceptions) by which the parties or any of them agree not to grant loans on the security of new houses unless they have been built by or at the direction of a person who is registered with, or has agreed to comply with the standards of house building laid down or approved by, an appropriate body.

(2) In subsection (1)—

• “appropriate body” means a body concerned with the specification and control of standards of house building which—

(a) has its chairman, or the chairman of its board of directors or other governing body, appointed by the Secretary of State, and

(b) promotes or administers a scheme conferring rights in respect of defects in the condition of houses on persons having or acquiring interest in them; and

“new house” means a building or part of a building intended for use as a private dwelling and not previously occupied as such.

(3) The reference in subsection (1) to a term agreed to by the parties or any of them includes a term to which the parties or any of them are deemed to have agreed by virtue of section 16 of the M6 Restrictive Trade Practices Act 1976 (recommendations of services supply associations).

Marginal Citations

M6 1976 c. 34.

456 Advances under the Small Dwellings Acquisition Acts. E+W

The provisions of Schedule 18 have effect with respect to advances made under the Small Dwellings Acquisition Acts 1899 to 1923 before the repeal of those Acts by the M7 Housing (Consequential Provisions) Act 1985.

Marginal Citations

M7 1985 c. 71.