A tenancy is not a secure tenancy if the tenant is an employee of the landlord or of—

• a local authority,

• a new town corporation,

• F4a housing action trust

• an urban development corporation,

• the Development Board for Rural Wales, or

• the governors of an aided school,

and his contract of employment requires him to occupy the dwelling-house for the better performance of his duties.

A tenancy is not a secure tenancy if the tenant is a member of a police force and the dwelling-house is provided for him free of rent and rates in pursuance of regulations made under section 33 of the M1Police Act 1964 (general regulations as to government, administration and conditions of service of police forces).

In this paragraph “contract of employment” means a contract of service or apprenticeship, whether express or implied and (if express) whether oral or in writing.

The date referred to in sub-paragraph (1) is the date on which the tenant received the notification required by section 64(1) (notification of decision on question of homelessness or threatened homelessness) or, if he received a notification under section 68(3) (notification of which authority has duty to house), the date on which he received that notification.

A tenancy is not a secure tenancy if it is granted in order to provide accommodation under Part VI of the Immigration and Asylum Act 1999.

A tenancy mentioned in sub-paragraph (1) becomes a secure tenancy if the landlord notifies the tenant that it is to be regarded as a secure tenancy.

A landlord’s notice under sub-paragraph (1)(b) shall specify the educational establishment which the person concerned proposes to attend.

Regulations under sub-paragraph (4) shall be made by statutory instrument and may make different provision with respect to different cases or descriptions of case, including different provision for different areas.

This Schedule applies to the disposal by a local authority of an interest in land as a result of which a secure tenant of the authority will become the tenant of a private sector landlord.

For the purposes of this Schedule the grant of an option which if exercised would result in a secure tenant of a local authority becoming the tenant of a private sector landlord shall be treated as a disposal of the interest which is the subject of the option.

Where a disposal of land by a local authority is in part a disposal to which this Schedule applies, the provisions of this Schedule apply to that part as to a separate disposal.

In this paragraph “private sector landlord” means a person other than an authority or body within section 80 (the landlord condition for secure tenancies).

The requirements as to consultation referred to above are as follows.

The Secretary of State shall not give his consent if it appears to him that a majority of the tenants of the dwelling-houses to which the application relates do not wish the disposal to proceed; but this does not affect his general discretion to refuse consent on grounds relating to whether a disposal has the support of the tenants or on any other ground.

In making his decision the Secretary of State may have regard to any information available to him; and the local authority shall give him such information as to the representations made to them by tenants and others, and other relevant matters, as he may require.

The landlord condition is, subject to F30paragraph 7A and to any order under paragraph 8, that the interest of the landlord belonged to, or to a predecessor of—

• a local authority,

• a new town corporation,

• F31 a housing action trust

• the Development Board for Rural Wales,

• an urban development corporation,

• the F32Corporation,

• a registered housing association which is not a co-operative housing association,

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F33,

or to, or to a predecessor of, an authority or other body falling within sub-paragraph (2) or (3) (corresponding authorities and bodies in Scotland and Northern Ireland),

The corresponding authorities and bodies in Scotland are—

• a regional, islands or district council,

• a joint board or joint committee of such a council,

• the common good of such a council or a trust under its control,

• a development corporation established by an order made or having effect as if made under the M4New Towns (Scotland) Act 1968,

• F34the Scottish Special Housing Association

• F34Scottish Homes,

• a housing association which falls within F35section 61(2)(a)(vi) of the Housing (Scotland) Act 1987 but is not a registered society within the meaning of section F3545 of that Act, and

• F36. . .

The corresponding authorities and bodies in Northern Ireland are—

• a district council within the meaning of the M5Local Government Act (Northern Ireland) 1972,

• the Northern Ireland Housing Executive, and

• a registered housing association within the meaning of Chapter II of Part II of the M6Housing (Northern Ireland) Order 1983.

In sub-paragraph (1)(a) “housing purposes” means the purposes for which dwelling-houses are held by local housing authorities under Part II (provision of housing) or purposes corresponding to those purposes.

In determining whether a dwelling is particularly suitable, no regard shall be had to the presence of any feature provided by the tenant or a predecessor in title of his.

Notwithstanding anything in section 181 (jurisdiction of county court), any question arising under this paragraph shall be determined as follows.

If an application for the purpose is made by the tenant to the Secretary of State before the end of the period of 56 days beginning with the service of the landlord’s notice under section 124, the question shall be determined by the Secretary of State.

If no such application is so made, the question shall be deemed to have been determined in favour of the landlord.

This paragraph does not apply unless the dwelling-house concerned was first let before 1st January 1990.

The right to buy does not arise if a final demolition notice is in force in respect of the dwelling-house.

The proposed demolition date must fall within the period of 24 months beginning with the date of service of the notice on the tenant.

In this paragraph and paragraphs 14 and 15 any reference to the landlord, in the context of a reference to an intention or decision on his part to demolish or not to demolish any premises, or of a reference to the acquisition or transfer of any premises, includes a reference to a superior landlord.

The Secretary of State may, on an application by the landlord, give a direction extending or further extending the period during which a final demolition notice is in force in respect of a dwelling-house.

A direction under sub-paragraph (1) may provide that any extension of that period is not to have effect unless the landlord complies with such requirements relating to the service of further notices as are specified in the direction.

A direction under sub-paragraph (1) may only be given at a time when the demolition notice is in force (whether by virtue of paragraph 13 or this paragraph).

But the Secretary of State may not serve a revocation notice unless he has previously served a notice on the landlord which informs him of the Secretary of State’s intention to serve the revocation notice.

Where a revocation notice is served under sub-paragraph (4) or (5), the demolition notice ceases to be in force as from the date of service of the revocation notice.

The Secretary of State’s consent under sub-paragraph (8) may be given subject to compliance with such conditions as he may specify.

The conditions in sub-paragraphs (6) and (7) of paragraph 13 of Schedule 5 (publicity for final demolition notices) shall apply in relation to an initial demolition notice as they apply in relation to a final demolition notice.

Paragraph 15(4) to (7) of Schedule 5 (revocation notices) shall apply in relation to an initial demolition notice as they apply in relation to a final demolition notice.

If, while an initial demolition notice is in force in respect of a dwelling-house, a final demolition notice comes into force under paragraph 13 of Schedule 5 in respect of that dwelling-house, the initial demolition notice ceases to be in force as from the date when the final demolition notice comes into force.

In such a case the final demolition notice must state that it is replacing the initial demolition notice.

This paragraph applies where an initial demolition notice (“the relevant notice”) has (for any reason) ceased to be in force in respect of a dwelling-house without it being demolished.

Sub-paragraph (3) does not apply to a final demolition notice which is served at a time when an initial demolition notice served in accordance with sub-paragraph (2) is in force.

The Secretary of State’s consent under sub-paragraph (2) or (3) may be given subject to compliance with such conditions as he may specify.

In this Schedule any reference to the landlord, in the context of a reference to the demolition or intended demolition of any premises, includes a reference to a superior landlord.

In this Schedule—

In this paragraph “relevant death” means the death of a person who immediately before his death was the person or, as the case may be, the last remaining person entitled to an interest to which this paragraph applies.

Sub-paragraph (1) shall not apply if the final payment is made after the end of the protection period, that is to say, the period of two years beginning with the time when there ceases to be an interest to which this sub-paragraph applies.

The Secretary of State may by order made with the consent of the Treasury provide that the percentage discount shall be such percentage as may be specified in the order.

A beneficial interest in the dwelling-house is an interest to which this paragraph applies if the person entitled to it is the secure tenant or, as the case may be, one of the secure tenants.

References in this Schedule to the secure tenant are references to the secure tenant or tenants to whom the conveyance or grant is made and references to the secure tenant or, as the case may be, one of the secure tenants shall be construed accordingly.

References in this Schedule to the secure tenant’s successors in title do not include references to any person entitled to a legal charge having priority to the mortgage required by section 151B (mortgage for securing redemption of landlord’s share) or any person whose title derives from such a charge.

The lease shall state the tenant’s initial share of the dwelling-house and shall contain provision enabling the tenant to acquire additional shares in the dwelling-house, which shall be either the prescribed percentage (within the meaning of section 145) or a multiple of that percentage.

The right so conferred is exercisable at any time during the term of the lease on the tenant serving written notice on the landlord, stating the additional share he proposes to acquire.

A notice required by this paragraph may be withdrawn at any time by notice in writing served on the landlord.

Where the dwelling-house is a house and the landlord owns the freehold, the lease shall provide that, on his acquiring an additional share such that his total share will be 100 per cent., the tenant is entitled to require the freehold to be conveyed either to himself or to such other person as he may direct.

The right so conferred is exercisable at any time during the term of the lease on the tenant serving written notice on the landlord.

A notice required by this paragraph may be withdrawn at any time by notice in writing served on the landlord.

The consideration for an additional share (referred to in this Part as an “additional contribution”) shall be determined by the formula—

$C=\frac{S(V-D)}{100}$

and the effective discount to which the tenant is entitled on the acquisition of an additional share shall be determined by the formula—

$E=\frac{SxD}{100}$

where—

• C = the additional contribution,

• E = the effective discount,

• S = the additional share expressed as a percentage,

• V = the value of the dwelling-house (determined in accordance with paragraph 11) at the time when the notice under paragraph 1 is served, and

• D = the discount which on the assumptions stated in sub-paragraph (2) below would be applicable under sections 129 to 131 (discount on exercise of right to buy).

The lease shall provide that, for any period for which the tenant’s total share is less than 100 per cent., the rent payable under the lease shall be determined by the formula—

$R=\frac{F(100-S)}{100}$

where—

• R=the rent payable,

• F=the amount determined by the landlord as the rent which would be payable for that period if the shared ownership lease had not been granted and the secure tenancy had not come to an end, but excluding any element attributable to rates F90or council tax or to services provided by the landlord, and

• S=the tenant’s total share expressed as a percentage.

In making a determination under sub-paragraph (1) the landlord shall take into account all matters which appear to it to be relevant including, in particular, where comparable dwelling-houses in the locality are let on secure tenancies, the rents payable under those tenancies.

The Secretary of State may by order under sub-paragraph (3) provide for such adjustment as he considers appropriate having regard to the differing reponsibilities for repairs, maintenance and insurance of a tenant under a shared ownership lease and a secure tenant.

In this paragraph “rates” includes charges F91in respect of any services provided by a water undertaker or sewerage undertaker in the course of the carrying out of its functions.

The amount payable under the covenant shall be determined by the formula—

$P=\frac{V(100-S)}{100}$

where—

• P = the amount payable under the covenant,

• V = the value at the time of the disposal (determined in accordance with paragraph 11) of the dwelling-house or, in the case of a compulsory disposal of a part of the dwelling-house, of the part disposed of, and

• S = the tenant’s total share expressed as a percentage.

Section 156 (liability to repay discount a charge on the premises) applies in relation to the liability that may arise under the covenant required by this paragraph as it applies in relation to the liability that may arise under the covenant required by section 155 (repayment of discount on early disposal).

The right so conferred is exercisable at any time during the term of the lease on the person referred to in sub-paragraph (1)(a) or (b) serving written notice on the landlord.

A notice required by this paragraph may be withdrawn at any time by notice in writing served on the landlord.

The lease shall contain a covenant binding on the tenant and his successors in title that there will be no relevant disposal of part of the dwelling-house, other than a compulsory disposal, at any time when the tenant’s total share is less than 100 per cent.

A disposal in breach of the covenant required by sub-paragraph (1) is void.

The lease shall provide that in the event of a relevant disposal which is an exempted disposal by virtue of—

• section 160(1)(a) (a disposal of whole dwelling-house to member of family),

• section 160(1)(b) (vesting on death of tenant), or

• section 160(1)(c) (matrimonial property adjustment or family provision order),

references to the tenant in the provisions of the lease required by this Schedule or by section 155 (repayment of discount on early disposal) shall include references to the person to whom the disposal is made.

The lease shall also provide that, in the event of a compulsory disposal of a part of the dwelling-house, references in those provisions to the dwelling-house shall be construed as references to the remaining part of the dwelling-house.

For the purposes of paragraph 3 (additional contributions) and paragraph 6 (payment for outstanding share on disposal) the value of the dwelling-house, or a part of the dwelling-house, at any time is the amount agreed between the parties or determined by the district valuer as the amount which, in accordance with this paragraph, is to be taken as its value at that time.

The deed shall enable the tenant to require further sums to be advanced to him in the circumstances and subject to the limits stated in this Schedule.

The right so conferred is exercisable, within three months of the tenant claiming to exercise his right to acquire an additional share, on the tenant serving written notice on the landlord or F93Corporation.

Such a notice may be withdrawn at any time by notice in writing served on the landlord or F93Corporation.

Where the amount which a tenant is entitled to have advanced to him is reduced by the limit imposed by this paragraph, the landlord may, if it thinks fit and the tenant agrees, treat him as entitled to have advanced to him such amount exceeding that limit, but not exceeding the amount of his additional contribution, as the landlord may determine.

The Secretary of State may by regulations make provision for calculating the amount which is to be taken into account as a person’s available annual income and for specifying a factor appropriate to it.

A demand for the expenses, together with interest in accordance with paragraph 4, shall be served on the person from whom the authority seek to recover them.

On the date on which the demand is served, the authority shall serve a copy of it on every other person who, to the knowledge of the authority, is an owner, lessee or mortgagee of the premises.

The demand becomes operative, if no appeal is brought, on the expiry of 21 days from the date of service of the demand and is final and conclusive as to matters which could have been raised on an appeal.

A person aggrieved by a demand for the recovery of expenses, . . . F108, may within 21 days of the service of the demand or copy, . . . F108 appeal to the county court.

Where the demand for recovery of expenses relates to works carried out by virtue of section 193(2A), it shall be a ground of appeal that, at the time the local housing authority gave notice under section 194 of their intention to enter and do the works, reasonable progress was being made towards compliance with the repair notice.

Where the demand for recovery of expenses relates to works carried out by virtue of subsection (3) of section 375, it shall be a ground of appeal that, at the time the local housing authority served notice under subsection (3A) of that section, reasonable progress was being made towards compliance with the notice in question.

On an appeal the court may make such order either confirming, quashing or varying the demand . . . F111 as it thinks fit.

A demand . . . F111 against which an appeal is brought becomes operative, so far as it is confirmed on appeal, on the final determination of the appeal; and the withdrawal of an appeal has for this purpose the same effect as a decision dismissing the appeal.

No question may be raised on appeal under this paragraph which might have been raised on an appeal against the relevant notice.

In the case of a demand which was served on any person as agent or trustee for another person (in this sub-paragraph referred to as “the principal or beneficiary”) sub-paragraph (1) shall have effect as if the reference in each of paragraphs (a) and (b) to the person on whom the demand was served were a reference to that person or the principal or beneficiary.

The expenses recoverable by the authority, together with the interest accrued due, are, until recovered, a charge on the premises to which the notice related.

The charge takes effect when the demand for the expenses and interest becomes operative.

The authority have for the purpose of enforcing the charge the same powers and remedies, under the M19Law of Property Act 1925 and otherwise, as if they were mortgagees by deed having powers of sale and lease, of accepting surrenders of leases and of appointing a receiver.

The power of appointing a receiver is exercisable at any time after the expiration of one month from the date when the charge takes effect.

This paragraph applies only to notices under section 352, . . . F113 or 372 (notices relating to houses in multiple occupation).