Office of Public Sector Information
(1)The Secretary of State may designate as a class any buildings each of which consists of or includes one or more dwellings if it appears to him that—
(a)buildings in the proposed class are defective by reason of their design or construction, and
(b)by virtue of the circumstances mentioned in paragraph (a) having become generally known, the value of some or all of the dwellings concerned has been substantially reduced.
(2)A dwelling which is, or is included in a building in a class so designated is referred to in this Part as a “defective dwelling”; and in this Part in relation to such a dwelling—
(a)“the qualifying defect” means what, in the opinion of the Secretary of State, is wrong with the buildings in that class; and
(b)“the cut-off date” means the date by which, in the opinion of the Secretary of State, the circumstances mentioned in subsection (1)(a) became generally known.
(3)A designation shall describe the qualifying defect and specify—
(a)the cut-off date,
(b)the date (being a date on or after the cut-off date) on which the designation is to come into operation,
(c)the period within which persons may seek assistance under this Part in respect of the defective dwellings concerned.
(4)A designated class shall not be described by reference to the area in which the buildings concerned are situated.
(5)Notice of a designation shall be published in the Edinburgh Gazette.
(6)Any question arising as to whether a building is or was at any time in a class designated under this section shall be determined by the Secretary of State.
(1)The Secretary of State may—
(a)vary a designation under section 257, but not so as to vary the cut-off date, or
(b)revoke such a designation.
(2)The Secretary of State may by a variation of the designation extend the period referred to in section 257(3)(c) (period within which assistance must be applied for) whether or not it has expired.
(3)The variation or revocation of a designation does not affect the operation of the provisions of this Part in relation to a dwelling if, before the variation or revocation comes into operation, the dwelling is a defective dwelling by virtue of the designation in question and an application for assistance under this Part has been made.
(4)Notice of the variation or revocation of a designation shall be published in the Edinburgh Gazette.
(1)Subject to the following provisions of this Part, a person to whom this section applies is eligible for assistance in respect of a defective dwelling for the purposes of this Part if—
(a)his interest in the dwelling is that of owner (“the owner’s interest”), and
(b)one of the following sets of conditions is satisfied.
(2)This section applies to—
(a)an individual who is not a trustee,
(b)trustees, if all the beneficiaries are individuals, and
(c)personal representatives.
(3)The first set of conditions is that—
(a)there was a disposal by a public sector authority of the owner’s interest in the dwelling before the cut-off date; and
(b)there has been no disposal for value by any person of owner’s interest in the dwelling on or after the cut-off date;
and for the purposes of this subsection where a public sector authority hold an interest in a dwelling a disposal of that interest by or under any enactment is to be treated as a disposal by the authority.
(4)The second set of conditions is that—
(a)a person to whom this section applies acquired the owner’s interest in the dwelling on a disposal for value occurring within the period of 12 months beginning with the cut-off date;
(b)on the date of that disposal he was unaware of the association of the dwelling with the qualifying defect;
(c)the value by reference to which the price for the disposal was calculated did not take any, or any adequate, account of the qualifying defect; and
(d)if the cut-off date had fallen immediately after the date of the diposal, the first set of conditions would have been satisfied.
A person is not eligible for assistance in respect of a defective dwelling if the local authority are of the opinion that—
(a)work to the building that consists of or includes the dwelling has been carried out in order to deal with the qualifying defect, and
(b)on the completion of the work, no further work relating to the dwelling was required to be done to the building in order to deal satisfactorily with the qualifying defect.
(1)References in this Part to a disposal include a part disposal; but for the purposes of this Part a disposal of an interest in a dwelling is a disposal of a relevant interest in the dwelling only if on the disposal the person to whom it is made acquires a relevant interest in the dwelling.
(2)Subject to subsection (3), where any interest in land is disposed of, the time at which the disposal is made is, for the purposes of this Part, the time the missives are concluded (and not, if different, the date of entry specified in the missives).
(3)If the missives contain a condition precedent (and in particular if they contain a condition relating to the exercise of an option) the time at which the disposal is made for those purposes is the time when the condition precedent is satisfied.
(4)References in this Part to a disposal of an interest for value are to a disposal for money or money’s worth, whether or not representing full value for the interest disposed of.
(5)In relation to a person holding an interest in a dwelling formed by the conversion of another dwelling, references in this Part to a previous disposal of an interest in the dwelling include a previous disposal on which an interest in land which included that part of the original dwelling in which his interest subsists was acquired.
A person seeking assistance under this Part in respect of a defective dwelling shall make a written application to the local authority within the period specified in the relevant designation.
(1)The local authority shall not entertain an application for assistance under this Part if—
(a)an application has been made in respect of the defective dwelling (whether before or after the relevant designation came into operation) for a grant under Part XIII, and
(b)the relevant works in relation to that grant include the whole or part of the work required to reinstate the dwelling,
unless the grant application has been refused or has been withdrawn under subsection (2) or the relevant works have been completed.
(2)Where a person has applied for such a grant in respect of a dwelling and—
(a)the dwelling is a defective dwelling, and
(b)the relevant works include the whole or part of the work required to reinstate it,
he may withdraw his application, whether or not it has been approved, if the relevant works have not been begun.
(3)In this section “relevant works”, in relation to a grant, means works of improvement or repair within the meaning of Part XIII.
(1)A local authority receiving an application for assistance under this Part shall as soon as reasonably practicable give notice in writing to the applicant stating whether in their opinion he is eligible for assistance in respect of the defective dwelling.
(2)If they are of opinion that he is not so eligible, the notice shall state the reasons for their view.
(3)If they are of opinion that he is so eligible, the notice shall inform him of his right to make such a claim as is mentioned in section 265(2) (claim that assistance by way of reinstatement grant is inappropriate in his case).
(1)A local authority receiving an application for assistance under this Part shall, if the applicant is eligible for assistance, determine [F1as soon as reasonably practicable] whether he is entitled to assistance by way of reinstatement grant or by way of repurchase.
(2)If the authority are satisfied, on a claim by the applicant to that effect, that it would be unreasonable to expect him to secure or await the carrying out of the work required to reinstate the defective dwelling, the applicant is entitled to assistance by way of repurchase.
(3)Subject to subsection (2), the applicant is entitled to assistance by way of reinstatement grant if the authority are satisfied that the conditions for such assistance set out in section 266 are met, and otherwise to assistance by way of repurchase.
F1Words inserted by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 166(2)
(1)The conditions for assistance by way of reinstatement grant are, subject to any order under subsection (2)—
(a)that the dwelling is a house (as defined in section 302);
(b)that if the work required to reinstate the dwelling (together with any other work which the local authority are satisfied the applicant proposes to carry out) were carried out—
(i)the dwelling would be likely to provide satisfactory housing accommodation for a period of at least 30 years, and
(ii)an individual acquiring ownership of the dwelling with vacant possession would be likely to be able to obtain a loan on the security of it on satisfactory terms from a lending institution;
(c)that giving assistance by way of reinstatement grant is justified having regard, on the one hand, to the amount of reinstatement grant that would be payable in respect of the dwelling and, on the other hand, to the likely value of the dwelling with vacant possession after the work required to reinstate it has been carried out; and
(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1
(2)The Secretary of State may by order amend the conditions set out in subsection (1) so as to modify or omit any of the conditions or to add or substitute for any of the conditions other conditions.
(3)An order—
(a)may make different provision for different classes of case,
(b)shall be made by statutory instrument, and
(c)shall not be made unless a draft of it has been laid before and approved by a resolution of each House of Parliament.
(4)An order does not affect an application for assistance made before the order comes into force.
(1)For the purposes of this Part the work required to reinstate a defective dwelling is the work relating to the dwelling that is required to be done to the building that consists of or includes the dwelling in order to deal satisfactorily with the qualifying defect, together with any further work—
[F1(1A)In any case where—
(a)the most satisfactory way of dealing with the qualifying defect is substantially to demolish the building that consists of or includes the defective dwelling or a part of that building, and
(b)it is practicable to rebuild the building or part concerned on, or substantially on, its existing foundations and reconstruct the dwelling to the same, or substantially the same, plan,
the work required to carry out those operations shall be regarded for the purposes of this Part as work required to reinstate the defective dwelling.]
(a)required to be done, in order to deal satisfactorily with the qualifying defect, to any garage or outhouse designed or constructed as that building is designed or constructed, being a garage or outhouse in which the interest of the person eligible for assistance subsists and which is occupied with and used for the purposes of the dwelling or any part of it, or
(b)reasonably required in connection with other work falling within this subsection.
(2)In this Part, “associated arrangement” means an arrangement which is entered into in connection with the execution of the work required to reinstate a defective dwelling and is likely to contribute towards the dwelling being regarded as an acceptable security by a lending institution.
F1S. 267(1A) inserted by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 166(3)
(1)Where an applicant is eligible for assistance, the authority to whom the application was made shall as soon as reasonably practicable give him notice in writing (a “notice of determination”) stating the form of assistance to which he is entitled.
(2)If, on such a claim by the applicant as is mentioned in section 265(2) (claim that assistance by way of reinstatement grant is inappropriate in his case), the authority are not satisfied that it would be unreasonable to expect him to secure or await the carrying out of the work required to reinstate the defective dwelling, the notice shall state the reasons for their view.
(3)A notice stating that the applicant is entitled to assistance by way of reinstatement grant shall also state—
(a)the grounds for the authority’s determination;
(b)the work which, in their opinion, is required to reinstate the defective dwelling;
(c)the amount of expenditure which, in their opinion, may properly be incurred in executing the work;
(d)the amount of expenditure which, in their opinion, may properly be incurred in entering into an associated arrangement;
(e)the condition required by section 270 (execution of work to satisfaction of authority within specified period), including the period within which the work is to be carried out; and
(f)their estimate of the amount of grant payable in respect of the dwelling in pursuance of this Part.
(4)A notice stating that the applicant is entitled to assistance by way of repurchase shall also state the grounds for the authority’s determination and the effect of—
(a)paragraphs [F12, 3 and 7] of Schedule 20 (request for notice of proposed terms of repurchase), and
(b)sections [F1282, 284 and 285] (provisions for grant of tenancy to former owner-occupier of repurchased dwelling).
(5)References in the following provisions of this Part to a person entitled to assistance by way of reinstatement grant or, as the case may be, by way of repurchase are to a person who is eligible for assistance in respect of the dwelling and on whom a notice of determination has been served stating that he is entitled to that form of assistance.
F1Words substituted by Housing (Scotland) Act 1988 (c. 43, SIF 61), s. 72(1), Sch. 7 para. 19
(1)Where a person is entitled to assistance by way of reinstatement grant, the local authority shall pay reinstatement grant to him in respect of—
(a)the qualifying work, and
(b)any associated arrangement,
subject to and in accordance with the following provisions of this Part.
(2)The “qualifying work” means the work stated in the notice of determination, or in a notice under section 272 (notice of change of work required), to be the work which in the opinion of the local authority is required to reinstate the dwelling.
(1)It is a condition of payment of reinstatement grant that the qualifying work is carried out—
(a)to the satisfaction of the local authority, and
(b)within the period specified in the notice of determination, or that period as extended.
(2)The period so specified shall be such reasonable period (of at least 12 months), beginning with service of the notice, as the authority may determine.
(3)The authority shall, if there are reasonable grounds for doing so, by notice in writing served on the person entitled to assistance, extend or further extend the period for carrying out the qualifying work (whether or not the period has expired).
(4)Payment of reinstatement grant shall not be subject to any other condition, however expressed.
(1)The amount of reinstatement grant payable is the appropriate percentage of whichever is the least of—
(a)the amount stated in the notice of determination, or in a notice under section 272 (notice of change in work required or expenditure permitted), to be the amount of expenditure which, in the opinion of the local authority, may properly be incurred in executing the qualifying work and entering into any associated arrangement,
(b)the expenditure actually incurred in executing the qualifying work and entering into any associated arrangement, and
(c)the expenditure which is the maximum amount permitted to be taken into account for the purposes of this section.
(2)The appropriate percentage is 90 per cent. or, in a case where the authority are satisfied that the person entitled to assistance would suffer financial hardship unless a higher percentage of the expenditure referred to in subsection (1) were paid to him, 100 per cent.
(3)The Secretary of State may by order vary either or both of the percentages mentioned in subsection (2).
(4)The maximum amount of expenditure permitted to be taken into account for the purposes of this section is the amount specified as the expenditure limit by order made by the Secretary of State, except in a case or description of case in which the Secretary of State, on the application of a local authority, approves a higher amount.
(5)An order under subsection (4) may make different provision for different areas, different designated classes and different categories of dwelling.
(6)An order under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.
Where the local authority are satisfied that—
(a)the work required to reinstate the defective dwelling is more extensive than that stated in the notice of determination or in a previous notice under this section, or
(b)the amount of the expenditure which may properly be incurred in executing that work is greater than that so stated, or
(c)there is an amount of expenditure which may properly be incurred in entering into an associated arrangement but no such amount is stated in the notice of determination or a previous notice under this section, or
(d)where such an amount is so stated, the amount of expenditure which may be properly so incurred is greater than that amount,
they shall by notice in writing served on the person entitled to assistance state their opinion as to that amount or, as the case may be, that work and that amount; and the amount of reinstatement grant shall be adjusted accordingly.
(1)The local authority may pay reinstatement grant in respect of the qualifying work in a single sum on completion of the work or by instalments.
(2)No instalment shall be paid if the instalment, together with any amount previously paid, would exceed the appropriate percentage of the cost of so much of the qualifying work as has been executed at that time.
(3)The authority shall pay reinstatement grant in respect of an associated arrangement when payment in respect of the expenditure incurred in entering into the arrangement falls to be made.
(1)Where an amount of reinstatement grant has been paid in one or more instalments and the qualifying work is not completed within the period for carrying out the work, the local authority may, if they think fit, require the person who was entitled to assistance to repay that amount to them forthwith.
(2)The amount required to be repaid (or, if it was paid in more than one instalment, the amount of each instalment) shall carry interest, at such reasonable rate as the authority may determine, from the date on which it was paid until repayment.
Schedule 20 shall have effect with respect to assistance by way of repurchase, as follows—
Part I—The agreement to repurchase.
Part II—Price payable and valuation.
Where the local authority give a notice of determination to a person stating that he is entitled to assistance by way of repurchase and they are of opinion that—
(a)a relevant interest in the dwelling was disposed of by a public sector authority mentioned in column 1 of the following Table (or a predecessor mentioned there of such an authority),
(b)there has been no disposal within paragraph (a) since the time of that disposal, and
(c)any conditions mentioned in column 2 of the Table in relation to the authority are met,
they shall forthwith give that other authority a notice in writing, together with a copy of the notice of determination, stating that the authority may acquire, in accordance with this Part, the interest of the person entitled to assistance.
| Public sector authority | Conditions |
|---|---|
| 1. A registered housing association (other than a co-operative housing association) or a predecessor housing association of that association. | None. |
| [F12. Scottish Homes or the Scottish Special Housing Association] | None. |
| 3. A development corporation. | None. |
| 4. Another local authority or a predecessor of that authority. | The local authority provide housing accommodation in the vicinity of the defective dwelling with which the dwelling may conveniently be managed. |
| 5. Any other public sector authority prescribed by order of the Secretary of State, or a predecessor so prescribed. | Any conditions prescribed by the order. |
(2)The other authority may, within the period of four weeks beginning with the service of the notice on them, give notice in writing to the local authority—
(a)stating that they wish to acquire the interest, and
(b)specifying the address of the principal office of the authority and any other address which may also be used as an address for service;
and the local authority shall forthwith give to the person entitled to assistance a transfer notice, that is, a notice in writing of the contents of the notice received by them and the effect of subsection (3).
(3)After a transfer notice has been given to the person entitled to assistance, the other authority shall be treated as the appropriate authority for the purposes of anything done or falling to be done under this Part, except that—
(a)a request under paragraph 2 of Schedule [F220] (request for notice of proposed terms of acquisition) may be made either to the local authority or to the other authority, and
(b)any such request given to the local authority (whether before or after the notice) shall be forwarded by them to the other authority;
and references in this Part to “the purchasing authority” shall be construed accordingly.
(4)An order under this section shall be made by statutory instrument.
F1Entry substituted by Housing (Scotland) Act 1988 (c. 43, SIF 61), ss. 1, 3, Sch. 2 para. 14
F2Figure substituted (retrospectively) by Housing (Scotland) Act 1988 (c.43, SIF 61), s. 72(1), Sch. 7 para. 20
(1)This section applies where a person (“the owner”) is entitled to assistance by way of repurchase in respect of a defective dwelling and there is a condition in the title relating to his interest in the dwelling whereby—
(a)before disposing of the interest he must offer to dispose of it to a public sector authority, or
(b)in the case of an interest under a lease, he may require a public sector authority who are his landlords to accept a surrender of the lease but is otherwise prohibited from disposing of it.
(2)If the public sector authority are the local authority in whose area the dwelling is situated, the condition in the title shall be disregarded for the purposes of Schedule 20 (repurchase).
(3)If the public sector authority are not the local authority, the provisions of this Part as to repurchase do not apply so long as there is such a condition in the title; but if—
(a)the owner disposes of his interest to the public sector authority in pursuance of the condition in the title or lease, and
(b)the interest acquired by that authority on the disposal subsists only in the land affected, that is to say, the defective dwelling and any garage, outhouse, garden, yard and pertinents belonging to or usually enjoyed with the dwelling or any part of it,
the owner is entitled to be paid by the local authority the amount (if any) by which 95 per cent. of the defect-free value exceeds the consideration for the disposal.
(4)For the purposes of this section—
(a)the “consideration for the disposal” means the amount before any reduction required by section 72 (reduction corresponding to amount of discount repayable) or any provision to the like effect, and
(b)the “defect-free value” means the amount that would have been the consideration for the disposal if none of the defective dwellings to which the designation in question related had been affected by the qualifying defect.
(1)Where a person (“the owner”) has disposed of an interest in a defective dwelling, otherwise than in pursuance of Schedule 20 (repurchase), to an authority possessing compulsory purchase powers and—
(a)immediately before the time of the disposal he was eligible for assistance under this Part in respect of the dwelling,
(b)the amount paid as consideration for the disposal did not include any amount attributable to his right to apply for such assistance, and
(c)on the disposal the authority acquired an interest in any of the affected land, that is to say, the defective dwelling and any garage, outhouse, garden, yard and pertinents belonging to or usually enjoyed with the dwelling or any part of it,
he is entitled, subject to the following provisions of this section, to be paid by the local authority the amount (if any) by which 95 per cent. of the defect-free value exceeds the amount of the compensation for the disposal.
(2)For the purposes of this section—
(a)the “amount of compensation for the disposal” means the amount that would have been the proper amount of compensation for the disposal (having regard to any relevant determination of the Lands Tribunal) or, if greater, the amount paid as the consideration for the disposal, and
(b)the “defect-free” value means the amount that would have been the proper amount of compensation for the disposal if none of the defective dwellings to which the designation in question related had been affected by the qualifying defect;
but excluding, in either case, any amount payable for disturbance or for any other matter not directly based on the value of land.
(3)For the purposes of this section, it shall be assumed that the disposal occurred on a compulsory acquisition (in cases where it did not in fact do so).
(4)Where the compensation for the disposal fell to be assessed by reference to the value of the land as a site cleared of buildings and available for development, it shall be assumed for the purposes of determining the defect-free value that it did not fall to be so assessed.
(5)The amount payable by the local authority under this section shall be reduced by the amount of any payment made in respect of the defective dwelling under section 304 or 305 (payments for well-maintained houses).
(6)In this section “authority possessing compulsory purchase powers” has the same meaning as in the M1Land Compensation (Scotland) Act 1963.
(1)The local authority are not required to make a payment to a person under—
(a)section 277 (making-up of consideration on disposal in pursuance of right of pre-emption, etc.), or
(b)section 278 (making up of compulsory purchase compensation),
unless he makes a written application to them for payment before the end of the period of two years beginning with the time of the disposal.
Housing (Scotland) Act 1987