Housing and Planning Act 1986

JurisdictionUK Non-devolved
Citation1986 c. 63


Housing and PlanningAct 1986

1986 CHAPTER 63

An Act to make further provision with respect to housing, planning and local inquiries; to provide financial assistance for the regeneration of urban areas; and for connected purposes.

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

I Housing

Part I

Housing

The right to buy

The right to buy

S-1 Exception to the right to buy with respect to dwelling-houses for persons of pensionable age.

1 Exception to the right to buy with respect to dwelling-houses for persons of pensionable age.

1. In Schedule 5 to the Housing Act 1985(exceptions to the right to buy: certain dwelling-houses for persons of pensionable age), there shall be substituted for paragraph 11—

S-11

11.

(1) The right to buy does not arise if the dwelling-house—

(a ) is particularly suitable for occupation by persons of pensionable age, having regard—

(i) to its location, and

(ii) to its size, design, heating system and other major features so far as those have been provided by the landlord, a predecessor of the tenant or a person qualified to succeed the tenant by virtue of Part IV of the Housing Act 1985,

(b ) was let to the tenant or a predecessor in title of his for occupation by a person of pensionable age or a physically disabled person (whether the tenant or predecessor or another person).

(2) In determining whether a dwelling is particularly suitable, regard shall be had as to whether the dwelling—

(a ) is easily accessible on foot;

(b ) is on one level;

(c ) being a flat located above ground floor, access by lift is available;

(d ) has no more than two bedrooms;

(e ) has a heating system serving the living room and at least one bedroom.’.

S-2 Discount on right to buy and similar sales.

2 Discount on right to buy and similar sales.

(1) In section 129 of the Housing Act 1985 and (2) substitute—

(1) Subject to the following provisions of this Part, a person exercising the right to buy is entitled to a discount of a percentage calculated by reference to the period which is to be taken into account in accordance with Schedule 4 (qualifying period for right to buy and discount).

(2) The discount is, subject to any order under subsection (2A)—

(a ) in the case of a house, 32 per cent. plus one per cent. for each complete year by which the qualifying period exceeds two years, up to a maximum of 60 per cent.;

(b ) in the case of a flat, 44 per cent. plus two per cent. for each complete year by which the qualifying period exceeds two years, up to a maximum of 70 per cent.

(2A) 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 two, or

(c ) the maximum percentage discount,

shall be such percentage, higher than that specified in subsection (2), as may be specified in the order.

(2B) An order—

(a ) may make different provision with respect to different cases or descriptions of case,

(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.’.

(2) The amendment made by subsection (1) does not apply where—

(a ) the tenant's notice claiming to exercise the right to buy or, as the case may be, to acquire an additional share under a shared ownership lease was served before the commencement of that subsection, and

(b ) the landlord has before commencement served its notice as to the terms of exercise of that right, that is, its notice under section 125 of, or paragraph 1(3) of Schedule 8 to, the Housing Act 1985 ,

but without prejudice to the tenant's right to withdraw the notice served before commencement and serve a new notice.

(3) In the following provisions (which in the case of disposals at a discount require a covenant for repayment of a proportion of the discount if the dwelling-house is disposed of within five years)—

section 35(2) of the Housing Act 1985 (voluntary disposals by local authorities),

section 155(2) of that Act (disposals in pursuance of the right to buy),

section 155(3) of that Act (disposals in pursuance of the right to be granted a shared ownership lease), and

paragraph 1(2) of Schedule 2 to the Housing Associations Act 1985 (voluntary disposals by registered housing associations),

for ‘five years’ substitute ‘three years’ and for ‘20 per cent.’ substitute ‘one-third’.

(4) A conveyance or lease containing the covenant required by any of the provisions mentioned in subsection (3) which was executed before the amendments made by that subsection came into force shall, provided no amount was then or had previously been payable under the covenant, have effect with such modifications as may be necessary to bring it into conformity with the amendments.

S-3 Discount on exercise of right to purchase in Scotland.

3 Discount on exercise of right to purchase in Scotland.

(1) In section 1 (secure tenant's right to purchase) of the Tenants' Rights, Etc. (Scotland) Act 1980 , in subsection (5), after ‘(b )’ insert—

‘subject to an order under subsection (5B) below,’.

(2) After subsection (5A) of the said section 1 insert—

(5B) 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 two, or

(c ) the maximum percentage discount,

shall be such percentage, higher than that specified in sub-section (5)(b ), as may be specified in the order.

(5C) An order—

(a ) may make different provision with respect to different cases or descriptions of case,

(b ) may contain such incidental, supplementary or transitional provisions, including such amendments to the provisions of section 9A (application of Part I when dwelling-house is repurchased as defective) below, 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.’.

S-4 Service charges and other contributions payable after exercise of right to buy.

4 Service charges and other contributions payable after exercise of right to buy.

(1) In section 125 of the Housing Act 1985 (landlord's notice of purchase price and other matters), for subsection (4) (notice to include estimate of amount of service charges) substitute—

(4) Where the notice states provisions which would enable the landlord to recover from the tenant—

(a ) service charges, or

(b ) improvement contributions,

the notice shall also contain the estimates and other information required by section 125A (service charges) or 125B (improvement contributions).’.

(2) After that section insert—

S-125A

125A ‘Estimates and information about service charges.

(1) A landlord's notice under section 125 shall state as regards service charges (excluding, in the case of a flat, charges to which subsection (2) applies)—

(a ) the landlord's estimate of the average annual amount (at current prices) which would be payable in respect of each head of charge in the reference period, and

(b ) the aggregate of those estimated amounts,

and shall contain a statement of the reference period adopted for the purpose of the estimates.

(2) A landlord's notice under section 125 given in respect of a flat shall, as regards service charges in respect of repairs (including works for the making good of structural defects), contain—

(a ) the estimates required by subsection (3), together with a statement of the reference period adopted for the purpose of the estimates, and

(b ) a statement of the effect of—

paragraph 16B of Schedule 6 (which restricts by reference to the estimates the amounts payable by the tenant), and

section 450A and the regulations made under that section (right to a loan in respect of certain service charges).

(3) The following estimates are required for works in respect of which the landlord considers that costs may be incurred in the reference period—

(a ) for works itemised in the notice, estimates of the amount (at current prices) of the likely cost of, and of the tenant's likely contribution in respect of, each item, and the aggregate amounts of those estimated costs and contributions, and

(b ) for works not so itemised, an estimate of the average annual amount (at current prices) which the landlord considers is likely to be payable by the tenant.

S-125B

125B Estimates and information about improvement contributions.

(1) A landlord's notice under section 125 given in respect of a flat shall, as regards improvement contributions, contain—

(a ) the estimates required by this section, together with a statement of the reference period adopted for the purpose of the estimates, and

(b ) a statement of the effect of paragraph 16C of Schedule 6 (which restricts by reference to the estimates the amounts payable by the tenant).

(2) Estimates are required for works in respect of which the...

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