(1)Subject to [F1subsection (6A)], the price at which a tenant entitled to purchase a house under this Part shall be fixed [F2as at the date of service of the application to purchase] by subtracting a discount from the market value of the house.
(2)The market value for the purposes of this section shall be determined by [F3either]—
(a)a qualified valuer nominated by the landlord and accepted by the tenant; or
(b)the district valuer,
[F4as the landlord thinks fit] as if the house were available for sale on the open market with vacant possession at the date of service of the application to purchase.
For the purposes of this subsection, no account shall be taken of any element in the market value of the house which reflects an increase in value as a result of work the cost of which would qualify for a reimbursement under [F5section 29 of the Housing (Scotland) Act 2001 (asp 10)].
(3)Subject to subsection (5), the discount for the purposes of subsection (1) shall be—
[F6(a)20 per cent of the market value of the house,]
together with
(b)an additional one per cent. [F7of the market value for every year beyond 5] of F8. . . occupation by the appropriate person, F8. . . preceding the date of service of the application to purchase, of a house (including accommodation provided as mentioned in section 61(11)(n) or of a succession of houses provided by any persons mentioned in section 61(11),
up to a maximum discount of [F935 per cent or £15,000, whichever is less].
[F10(3A)There shall be deducted from the discount an amount equal to any previous discount, or the aggregate of any previous discounts, received by [F11any of the persons mentioned in subsection (4)(a)(i) to (iv)] on any previous purchase of a house F12. . . from a landlord who is a person specified in subsection (11) of section 61 or prescribed in an order made under that subsection, reduced by any amount of such previous discount recovered by such a landlord.]
[F13(3B)Where a previous discount was received by two or more persons jointly, subsection (3A) has effect as if each of them had received an equal proportion of the discount.]
(4)For the purposes of subsection (3)
[F14(a)the “appropriate person” is whoever of—
(i)the tenant; or
(ii)the tenant’s spouse if living with him at the date of service of the application to purchase; or
(iii)a deceased spouse if living with the tenant at the time of death; or
(iv)any joint tenant who is a joint purchaser of the house,
has the longer or longest [F15occupation of the type mentioned in subsection (3)(b)];]
[F16(b)where the house was provided by a body which, at any time while the house was so provided, was not a registered social landlord, the body shall, if it became a registered social landlord at any later time, be deemed to have been a registered social landlord at all times since it first provided the house]
F17. . .
(5)The Secretary of State may by order made with the consent of the Treasury provide that, in such cases as may be specified in the order—
(a)the minimum percentage discount,
(b)the percentage increase for each complete year of the qualifying period after the first [F185], or
(c)the maximum percentage discount,
shall be such percentage, [F19other] than that specified in subsection (3), as may be specified in the order.
[F20(5A)The Scottish Ministers may by order vary the maximum amount of discount for the time being specified in subsection (3).]
(6)An order under subsection (5) [F21or (5A)]—
(a)may make different provision with respect to different cases or descriptions of case [F22or different areas],
(b)may contain such incidental, supplementary or transitional provisions as appear to the Secretary of State to be necessary or expedient, and
(c)shall be made by statutory instrument and shall not be made unless a draft of it has been laid before and approved by resolution of each House of Parliament.
[F23(6A)Except where the Secretary of State so determines, the discount for the purpose of subsection (1) shall not reduce the price below the amount which, in accordance with a determination made by him, is to be taken as representing so much of the costs incurred in respect of the house as, in accordance with the determination, is to be treated as—
(a)incurred in the period commencing with the beginning of the financial year of the landlord which was current 5 years prior to the date of service of the application to purchase the house or such other period as the Secretary of State may by order provide; and
(b)relevant for the purposes of this subsection,
and, if the price before discount is below that amount, there shall be no discount.
(6B)An order under subsection (6A) shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament and may make different provision in relation to different cases or circumstances or different areas.]
(10)Where at the date of service of an offer to sell under section 63 any of the costs referred to in subsection [F24(6A)] are not known, the landlord shall make an estimate of such unknown costs for the purposes of that subsection.
(11)–(13). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F25
Textual Amendments
F1Words substituted by Housing (Scotland) Act 1988 (c. 43, SIF 61), s. 65(1)(6)
F2Words inserted by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 194(1), Sch. 11 para. 94
F3Word inserted by Housing (Scotland) Act 1988 (c. 43, SIF 61), s. 72(1), Sch. 8 para. 2(a)(i)
F4words inserted by Housing (Scotland) Act 1988 (c. 43, SIF 61), s. 72(1), Sch. 8 para. 2(a)(ii)
F5Words in s. 62(2) substituted (30.9.2002) by 2001 asp 10, s. 112, Sch. 10 para. 13(7)(a); S.S.I. 2002/321, art. 2, Sch. (subject to transitional provisions and savings in arts. 3-5)
F6S. 62(3)(a) substituted (30.9.2002) by 2001 asp 10, s. 49(2)(a); S.S.I. 2002/321, art. 2, Sch. (subject to transitional provisions and savings in arts. 3-5)
F7Words in s. 62(3)(b) substituted (30.9.2002) by 2001 asp 10, s. 49(2)(b); S.S.I. 2002/321, art. 2, Sch. (subject to transitional provisions and savings in arts. 3-5)
F8Words in s. 62(3)(b) repealed (27.9.1993) by 1993 c. 28, ss. 157(3)(a), 187(2), Sch. 22; S.I. 1993/2163, art. 2, Sch. 1
F9Words in s. 62(3) substituted (30.9.2002) by 2001 asp 10, s. 49(2)(c); S.S.I. 2002/321, art. 2, Sch. (subject to transitional provisions and savings in arts. 3-5)
F10S. 62(3A) inserted (27.9.1993) by 1993 c. 28, s. 157(3)(b); S.I. 1993/2163, art. 2, Sch. 1.
F11Words in s. 62(3A) substituted (30.9.2002) by 2001 asp 10, s. 49(3)(a); S.S.I. 2002/321, art. 2, Sch. (subject to transitional provisions and savings in arts. 3-5)
F12Words in s. 62(3A) repealed (30.9.2002) by 2001 asp 10, s. 49(3)(b); S.S.I. 2002/321, art. 2, Sch. (subject to transitional provisions and savings in arts. 3-5)
F13S. 62(3B) inserted (30.9.2002) by 2001 asp 10, s. 49(4); S.S.I. 2002/321, art. 2, Sch. (subject to transitional provisions and savings in arts. 3-5)
F14S. 62(4)(a) substituted (27.9.1993) by 1993 c. 28, s. 157(3)(c)(i); S.I. 1993/2163, art. 2, Sch. 1.
F15Words in s. 62(4)(a) substituted (30.9.2002) by 2001 asp 10, s. 49(5)(a); S.S.I. 2002/321, art. 2, Sch. (subject to transitional provisions and savings in arts. 3-5)
F16S. 62(4)(b) substituted (30.9.2002) by 2001 asp 10, s. 112, Sch. 10 para. 13(7)(a); S.S.I. 2002/321, art. 2, Sch. (subject to transitional provisions and savings in arts. 3-5)
F17Words in s. 62(4) repealed (30.9.2002) by 2001 asp 10, s. 49(5)(b); S.S.I. 2002/321, art. 2, Sch. (subject to transitional provisions and savings in arts. 3-5)
F18Word in s. 62(5)(b) substituted (30.9.2002) by 2001 asp 10, s. 49(6)(a); S.S.I. 2002/321, art. 2, Sch. (subject to transitional provisions and savings in arts. 3-5)
F19Words in s. 62(5) substituted (30.9.2002) by 2001 asp 10, s. 49(6)(b); S.S.I. 2002/321, art. 2, Sch. (subject to transitional provisions and savings in arts. 3-5)
F20S. 62(5A) inserted (30.9.2002) by 2001 asp 10, s. 49(7); S.S.I. 2002/321, art. 2, Sch. (subject to transitional provisions and savings in arts. 3-5)
F21Words in s. 62(6) inserted (30.9.2002) by 2001 asp 10, s. 49(8)(a); S.S.I. 2002/321, art. 2, Sch. (subject to transitional provisions and savings in arts. 3-5)
F22Words in s. 62(6)(a) inserted (30.9.2002) by 2001 asp 10, s. 49(8)(b); S.S.I. 2002/321, art. 2, Sch. (subject to transitional provisions and savings in arts. 3-5)
F23S. 62(6A)(6B) substituted for s. 62(7)–(9) by Housing (Scotland) Act 1988 (c. 43, SIF 61), s. 65(2)(6)
F24 “(6A)” substituted by Housing (Scotland) Act 1988 (c. 43, SIF 61), s. 65(3)(6)
F25S. 62(11)–(13) repealed by Housing (Scotland) Act 1988 (c. 43, SIF 61), ss. 65(4)(6), 72(3), Sch. 10
Modifications etc. (not altering text)
C1S. 62 modified (13.3.1992) by S.I. 1992/325, regs. 3, 5, 7, Sch. 1