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PART III continued CHAPTER I continued
(2) A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 5 on the standard scale.
(3) Where an offence under this section committed by a body corporate is proved—
(a) to have been committed with the consent or connivance of a director, manager, secretary or other similar officer of the body corporate, or a person purporting to act in such a capacity, or
(b) to be due to any neglect on the part of such an officer or person,
he, as well as the body corporate, is guilty of the offence and liable to be proceeded against and punished accordingly.
Where the affairs of a body corporate are managed by its members, the above provision applies in relation to the acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.
(4) Proceedings for an offence under this section may be brought by a local housing authority (within the meaning of section 1 of the [1985 c. 68.] Housing Act 1985).
(5) Nothing in this section affects the validity of the disposal.”
(2) The above amendment does not apply to a disposal made in pursuance of an obligation entered into before the commencement of this section.
(1) Part I of the [1987 c. 31.] Landlord and Tenant Act 1987 (tenants' rights of first refusal) is amended in accordance with Schedule 6.
(2) The amendments restate the principal provisions of that Part so as to—
(a) simplify the procedures for the exercise of the rights conferred on tenants, and
(b) apply those procedures in relation to contracts and certain special cases.
(3) In Schedule 6—
Part I sets out provisions replacing sections 5 to 10 of the Act (rights of first refusal),
Part II sets out provisions replacing sections 11 to 15 of the Act (enforcement by tenants of rights against purchaser),
Part III sets out provisions replacing sections 16 and 17 of the Act (enforcement of rights against subsequent purchasers and termination of rights), and
Part IV contains consequential amendments.
(1) In the [1985 c. 70.] Landlord and Tenant Act 1985, after section 3 (duty to inform tenant of assignment of landlord’s interest) insert—
(1) Where a new landlord is required by section 3(1) to give notice to a tenant of an assignment to him, then if—
(a) the tenant is a qualifying tenant within the meaning of Part I of the Landlord and Tenant Act 1987 (tenants' rights of first refusal), and
(b) the assignment was a relevant disposal within the meaning of that Part affecting premises to which at the time of the disposal that Part applied,
the landlord shall give also notice in writing to the tenant to the following effect.
(2) The notice shall state—
(a) that the disposal to the landlord was one to which Part I of the Landlord and Tenant Act 1987 applied;
(b) that the tenant (together with other qualifying tenants) may have the right under that Part—
(i) to obtain information about the disposal, and
(ii) to acquire the landlord’s interest in the whole or part of the premises in which the tenant’s flat is situated; and
(c) the time within which any such right must be exercised, and the fact that the time would run from the date of receipt of notice under this section by the requisite majority of qualifying tenants (within the meaning of that Part).
(3) A person who is required to give notice under this section and who fails, without reasonable excuse, to do so within the time allowed for giving notice under section 3(1) commits a summary offence and is liable on conviction to a fine not exceeding level 4 on the standard scale.”
(2) In section 32(1) of the [1985 c. 70.] Landlord and Tenant Act 1985 (provisions not applying to tenancies within Part II of the [1954 c. 56.] Landlord and Tenant Act 1954), for “sections 1 to 3” substitute “sections 1 to 3A”.
(1) The Secretary of State may give financial assistance to any person in relation to the provision by that person of general advice about—
(a) any aspect of the law of landlord and tenant, so far as relating to residential tenancies, or
(b) Chapter IV of Part I of the [1993 c. 28.] Leasehold Reform, Housing and Urban Development Act 1993 (estate management schemes in connection with enfranchisement).
(2) Financial assistance under this section may be given in such form and on such terms as the Secretary of State considers appropriate.
(3) The terms on which financial assistance under this section may be given may, in particular, include provision as to the circumstances in which the assistance must be repaid or otherwise made good to the Secretary of State and the manner in which that is to be done.
(1) Any jurisdiction expressed by a provision to which this section applies to be conferred on the court shall be exercised by a county court.
(2) There shall also be brought in a county court any proceedings for determining any question arising under or by virtue of any provision to which this section applies.
(3) Where, however, other proceedings are properly brought in the High Court, that court has jurisdiction to hear and determine proceedings to which subsection (1) or (2) applies which are joined with those proceedings.
(4) Where proceedings are brought in a county court by virtue of subsection (1) or (2), that court has jurisdiction to hear and determine other proceedings joined with those proceedings despite the fact that they would otherwise be outside its jurisdiction.
(5) The provisions to which this section applies are—
(a) section 81 (restriction on termination of tenancy for failure to pay service charge), and
(b) section 84 (right to appoint surveyor to advise on matters relating to service charges) and Schedule 4 (rights exercisable by surveyor appointed by tenants' association).
(1) In Chapter II of Part I of the [1988 c. 50.] Housing Act 1988 (assured shorthold tenancies) there shall be inserted at the beginning—
An assured tenancy which—
(a) is entered into on or after the day on which section 96 of the Housing Act 1996 comes into force (otherwise than pursuant to a contract made before that day), or
(b) comes into being by virtue of section 5 above on the coming to an end of an assured tenancy within paragraph (a) above,
is an assured shorthold tenancy unless it falls within any paragraph in Schedule 2A to this Act.”
(2) After Schedule 2 to that Act there shall be inserted the Schedule set out in Schedule 7 to this Act.
After section 20 of the Housing Act 1988 there shall be inserted—
(1) Subject to subsection (3) below, a tenant under an assured shorthold tenancy to which section 19A above applies may, by notice in writing, require the landlord under that tenancy to provide him with a written statement of any term of the tenancy which—
(a) falls within subsection (2) below, and
(b) is not evidenced in writing.
(2) The following terms of a tenancy fall within this subsection, namely—
(a) the date on which the tenancy began or, if it is a statutory periodic tenancy or a tenancy to which section 39(7) below applies, the date on which the tenancy came into being,
(b) the rent payable under the tenancy and the dates on which that rent is payable,
(c) any term providing for a review of the rent payable under the tenancy, and
(d) in the case of a fixed term tenancy, the length of the fixed term.
(3) No notice may be given under subsection (1) above in relation to a term of the tenancy if—
(a) the landlord under the tenancy has provided a statement of that term in response to an earlier notice under that subsection given by the tenant under the tenancy, and
(b) the term has not been varied since the provision of the statement referred to in paragraph (a) above.
(4) A landlord who fails, without reasonable excuse, to comply with a notice under subsection (1) above within the period of 28 days beginning with the date on which he received the notice is liable on summary conviction to a fine not exceeding level 4 on the standard scale.
(5) A statement provided for the purposes of subsection (1) above shall not be regarded as conclusive evidence of what was agreed by the parties to the tenancy in question.
(6) Where—
(a) a term of a statutory periodic tenancy is one which has effect by virtue of section 5(3)(e) above, or
(b) a term of a tenancy to which subsection (7) of section 39 below applies is one which has effect by virtue of subsection (6)(e) of that section,
subsection (1) above shall have effect in relation to it as if paragraph (b) related to the term of the tenancy from which it derives.
(7) In subsections (1) and (3) above—
(a) references to the tenant under the tenancy shall, in the case of joint tenants, be taken to be references to any of the tenants, and
(b) references to the landlord under the tenancy shall, in the case of joint landlords, be taken to be references to any of the landlords.”
(1) Section 21 of the [1988 c. 50.] Housing Act 1988 (recovery of possession on expiry or termination of assured shorthold tenancy) shall be amended as follows.
(2) In subsection (1)(b) (which requires the landlord under a fixed term tenancy to give two months' notice to recover possession), after “notice” there shall be inserted “in writing”.
(3) In subsection (4)(a) (corresponding provision for periodic tenancies), after “notice”, where it first occurs, there shall be inserted “in writing”.
In section 21 of the Housing Act 1988 there shall be inserted at the end—
“(5) Where an order for possession under subsection (1) or (4) above is made in relation to a dwelling-house let on a tenancy to which section 19A above applies, the order may not be made so as to take effect earlier than—
(a) in the case of a tenancy which is not a replacement tenancy, six months after the beginning of the tenancy, and
(b) in the case of a replacement tenancy, six months after the beginning of the original tenancy.
(6) In subsection (5)(b) above, the reference to the original tenancy is—
(a) where the replacement tenancy came into being on the coming to an end of a tenancy which was not a replacement tenancy, to the immediately preceding tenancy, and
(b) where there have been successive replacement tenancies, to the tenancy immediately preceding the first in the succession of replacement tenancies.
(7) For the purposes of this section, a replacement tenancy is a tenancy—
(a) which comes into being on the coming to an end of an assured shorthold tenancy, and
(b) under which, on its coming into being—
(i) the landlord and tenant are the same as under the earlier tenancy as at its coming to an end, and
(ii) the premises let are the same or substantially the same as those let under the earlier tenancy as at that time.”
(1) Section 22 of the [1988 c. 50.] Housing Act 1988 (reference of excessive rents to rent assessment committee) shall be amended as follows.
(2) In subsection (2) (circumstances in which no application under the section may be made) after paragraph (a) there shall be inserted—
“(aa) the tenancy is one to which section 19A above applies and more than six months have elapsed since the beginning of the tenancy or, in the case of a replacement tenancy, since the beginning of the original tenancy; or”
(3) At the end there shall be inserted—
“(6) In subsection (2)(aa) above, the references to the original tenancy and to a replacement tenancy shall be construed in accordance with subsections (6) and (7) respectively of section 21 above.”
In Part I of Schedule 2 to the Housing Act 1988 (grounds on which court must order possession) in Ground 8 (rent unpaid for certain periods)—
(a) in paragraph (a) (rent payable weekly or fortnightly) for “thirteen weeks”' there shall be substituted “eight weeks”', and
(b) in paragraph (b) (rent payable monthly) for “three months”' there shall be substituted “two months”'.
In Part II of Schedule 2 to the Housing Act 1988 (grounds on which court may order possession) there shall be inserted at the end—
The tenant is the person, or one of the persons, to whom the tenancy was granted and the landlord was induced to grant the tenancy by a false statement made knowingly or recklessly by—
(a) the tenant, or
(b) a person acting at the tenant’s instigation.”
(1) Section 24 of the [1988 c. 50.] Housing Act 1988 (assured agricultural occupancies) shall be amended as follows.
(2) In subsection (2)(b) (under which a tenancy is an assured agricultural occupancy if it would be an assured tenancy, but for paragraph 7 of Schedule 1 to that Act) there shall be inserted at the end “and is not an excepted tenancy”.
(3) After subsection (2) there shall be inserted—
“(2A) For the purposes of subsection (2)(b) above, a tenancy is an excepted tenancy if it is—
(a) a tenancy of an agricultural holding within the meaning of the [1986 c. 5.] Agricultural Holdings Act 1986 in relation to which that Act applies, or
(b) a farm business tenancy within the meaning of the [1995 c. 8.] Agricultural Tenancies Act 1995.”
The enactments mentioned in Schedule 8 have effect with the amendments specified there which are consequential on the provisions of this Chapter.
(1) In section 4(1) of the [1967 c. 88.] Leasehold Reform Act 1967 (meaning of “low rent”) —
(a) in paragraph (i) (cases where rent limit of two-thirds of rateable value on later of appropriate day and first day of term applies), for the words from “or (where” to “that date” there shall be substituted “, or on or after 1st April 1990 in pursuance of a contract made before that date, and the property had a rateable value other than nil at the date of the commencement of the tenancy or else at any time before 1st April 1990,”,
(b) in paragraph (ii) (other cases), for the words from “is entered” to “1990),” there shall be substituted “does not fall within paragraph (i) above,”, and
(c) in paragraph (a) (definition of “appropriate day” by reference to section 25(3) of the [1977 c. 42.] Rent Act 1977), there shall be inserted at the end “if the reference in paragraph (a) of that provision to a rateable value were to a rateable value other than nil”.
(2) In section 4A of the [1967 c. 88.] Leasehold Reform Act 1967 (alternative rent limits for the purposes of section 1A(2) of that Act)—
(a) in subsection (1)(b) (cases where rent limit of two-thirds of rateable value on the relevant date applies), for sub-paragraph (ii) there shall be substituted—
“(ii) the property had a rateable value other than nil at the date of commencement of the tenancy or else at any time before 1st April 1990,”, and
(b) in subsection (2), for paragraph (b) there shall be substituted—
“(b) “the relevant date” means the date of the commencement of the tenancy or, if the property did not have a rateable value, or had a rateable value of nil, on that date, the date on which it first had a rateable value other than nil;”
(3) In section 8 of the [1993 c. 28.] Leasehold Reform, Housing and Urban Development Act 1993 (leases at a low rent)—
(a) in subsection (1)(b) (cases where rent limit of two-thirds of rateable value on the appropriate date applies), for sub-paragraph (ii) there shall be substituted—
“(ii) the flat had a rateable value other than nil at the date of the commencement of the lease or else at any time before 1st April 1990,”, and
(b) in subsection (2), for paragraph (b) there shall be substituted—
“(b) “the appropriate date” means the date of commencement of the lease or, if the flat in question did not have a rateable value, or had a rateable value of nil, on that date, the date on which the flat first had a rateable value other than nil;”
Schedule 9 (which makes provision for conferring an additional right to enfranchisement in relation to tenancies which fail the low rent test and for introducing an alternative to the low rent test in the case of the right to collective enfranchisement and the right to a new lease) shall have effect.
(1) In section 3 of the Leasehold Reform, Housing and Urban Development Act 1993 (premises in respect of which the right to collective enfranchisement is exercisable), in subsection (1)(a), the words “and the freehold of the whole of the building or of that part of the building is owned by the same person” shall be omitted.
(2) In section 4 of that Act (premises excluded from the right to collective enfranchisement), after subsection (3) there shall be inserted—
“(3A) Where different persons own the freehold of different parts of premises within subsection (1) of section 3, this Chapter does not apply to the premises if any of those parts is a self-contained part of a building for the purposes of that section.”
(3) In section 1(3) of that Act (additional property which may be acquired by tenants exercising the right to collective enfranchisement), the words “the freehold of it is owned by the person who owns the freehold of the relevant premises and” shall be omitted.
(4) Schedule 10 (amendments consequential on this section) shall have effect.
In section 13 of the [1993 c. 28.] Leasehold Reform, Housing and Urban Development Act 1993 (notice by qualifying tenants of claim to exercise right to collective enfranchisement) subsection (6) (tenants to obtain professional valuation of interests proposed to be acquired before giving notice) shall cease to have effect.
(1) Schedule 6 to the Leasehold Reform, Housing and Urban Development Act 1993 (purchase price payable by nominee purchaser) shall be amended as follows.
(2) In paragraph 3(1) (freeholder’s interest to be valued on the basis that neither the nominee purchaser nor any participating tenant is in the market) for “neither the nominee purchaser nor any participating tenant” there shall be substituted “no person who falls within sub-paragraph (1A)”.
(3) After paragraph 3(1) there shall be inserted—
“(1A) A person falls within this sub-paragraph if he is—
(a) the nominee purchaser, or
(b) a tenant of premises contained in the specified premises, or
(c) an owner of an interest which the nominee purchaser is to acquire in pursuance of section 2(1)(b).”
(4) In paragraph 7 (value of intermediate leasehold interests) after sub-paragraph (1) there shall be inserted—
“(1A) In its application in accordance with sub-paragraph (1), paragraph 3(1A) shall have effect with the addition after paragraph (a) of—
“(aa) an owner of a freehold interest in the specified premises, or””
(5) In paragraph 11 (value of other interests) after sub-paragraph (3) there shall be inserted—
“(4) In its application in accordance with sub-paragraph (2) above, paragraph 3(1A) shall have effect with the addition after paragraph (a) of—
“(aa) an owner of a freehold interest in the specified premises, or””
(1) Schedule 13 to the Leasehold Reform, Housing and Urban Development Act 1993 (premium and other amounts payable by tenant on grant of new lease) shall be amended as mentioned in subsections (2) to (4) below.
(2) In paragraph 3(2) (landlord’s interest to be valued on the basis that the tenant is not buying or seeking to buy) for “the tenant not” there shall be substituted “neither the tenant nor any owner of an intermediate leasehold interest”.
(3) In paragraph 4(3) (calculation of marriage value) for paragraph (a) (value of tenant’s interest) there shall be substituted—
“(a) the value of the interest of the tenant under his existing lease shall be determined in accordance with paragraph 4A;
(aa) the value of the interest to be held by the tenant under the new lease shall be determined in accordance with paragraph 4B;”, and, in paragraph (b), for “that sub-paragraph” there shall be substituted “sub-paragraph (2)”.
(4) After paragraph 4 there shall be inserted—
“4A (1) Subject to the provisions of this paragraph, the value of the interest of the tenant under the existing lease is the amount which at the valuation date that interest might be expected to realise if sold on the open market by a willing seller (with neither the landlord nor any owner of an intermediate leasehold interest buying or seeking to buy) on the following assumptions—
(a) on the assumption that the vendor is selling such interest as is held by the tenant subject to any interest inferior to the interest of the tenant;
(b) on the assumption that Chapter I and this Chapter confer no right to acquire any interest in any premises containing the tenant’s flat or to acquire any new lease;
(c) on the assumption that any increase in the value of the flat which is attributable to an improvement carried out at his own expense by the tenant or by any predecessor in title is to be disregarded; and
(d) on the assumption that (subject to paragraph (b)) the vendor is selling with and subject to the rights and burdens with and subject to which any interest inferior to the existing lease of the tenant has effect.
(2) It is hereby declared that the fact that sub-paragraph (1) requires assumptions to be made in relation to particular matters does not preclude the making of assumptions as to other matters where those assumptions are appropriate for determining the amount which at the valuation date the interest of the tenant under his existing lease might be expected to realise if sold as mentioned in that sub-paragraph.
(3) In determining any such amount there shall be made such deduction (if any) in respect of any defect in title as on a sale of that interest on the open market might be expected to be allowed between a willing seller and a willing buyer.
(4) Subject to sub-paragraph (5), the value of the interest of the tenant under his existing lease shall not be increased by reason of—
(a) any transaction which—
(i) is entered into after 19th January 1996, and
(ii) involves the creation or transfer of an interest inferior to the tenant’s existing lease; or
(b) any alteration after that date of the terms on which any such inferior interest is held.
(5) Sub-paragraph (4) shall not apply to any transaction which falls within paragraph (a) of that sub-paragraph if—
(a) the transaction is entered into in pursuance of a contract entered into on or before the date mentioned in that paragraph; and
(b) the amount of the premium payable by the tenant in respect of the grant of the new lease was determined on or before that date either by agreement or by a leasehold valuation tribunal under this Chapter.
4B (1) Subject to the provisions of this paragraph, the value of the interest to be held by the tenant under the new lease is the amount which at the valuation date that interest (assuming it to have been granted to him at that date) might be expected to realise if sold on the open market by a willing seller (with the owner of any interest superior to the interest of the tenant not buying or seeking to buy) on the following assumptions—
(a) on the assumption that the vendor is selling such interest as is to be held by the tenant under the new lease subject to the inferior interests to which the tenant’s existing lease is subject at the valuation date;
(b) on the assumption that Chapter I and this Chapter confer no right to acquire any interest in any premises containing the tenant’s flat or to acquire any new lease;
(c) on the assumption that there is to be disregarded any increase in the value of the flat which would fall to be disregarded under paragraph (c) of sub-paragraph (1) of paragraph 4A in valuing in accordance with that sub-paragraph the interest of the tenant under his existing lease; and
(d) on the assumption that (subject to paragraph (b)) the vendor is selling with and subject to the rights and burdens with and subject to which any interest inferior to the tenant’s existing lease at the valuation date then has effect.
(2) It is hereby declared that the fact that sub-paragraph (1) requires assumptions to be made in relation to particular matters does not preclude the making of assumptions as to other matters where those assumptions are appropriate for determining the amount which at the valuation date the interest to be held by the tenant under the new lease might be expected to realise if sold as mentioned in that sub-paragraph.
(3) In determining any such amount there shall be made such deduction (if any) in respect of any defect in title as on a sale of that interest on the open market might be expected to be allowed between a willing seller and a willing buyer.
(4) Subject to sub-paragraph (5), the value of the interest to be held by the tenant under the new lease shall not be decreased by reason of—
(a) any transaction which—
(i) is entered into after 19th January 1996, and
(ii) involves the creation or transfer of an interest inferior to the tenant’s existing lease; or
(b) any alteration after that date of the terms on which any such inferior interest is held.
(5) Sub-paragraph (4) shall not apply to any transaction which falls within paragraph (a) of that sub-paragraph if—
(a) the transaction is entered into in pursuance of a contract entered into on or before the date mentioned in that paragraph; and
(b) the amount of the premium payable by the tenant in respect of the grant of the new lease was determined on or before that date either by agreement or by a leasehold valuation tribunal under this Chapter.”
(5) This section applies in relation to any claim made after 19th January 1996 by the giving of notice under section 42 of the Act of 1993 unless the amount of the premium payable in pursuance of the claim has been determined, either by agreement or by a leasehold valuation tribunal under Chapter II of the Act of 1993, before the day on which this Act is passed.
(1) In section 6 of the [1993 c. 28.] Leasehold Reform, Housing and Urban Development Act 1993 (which provides when a qualifying tenant of a flat satisfies the residence condition) for subsection (4) there shall be substituted—
Housing Act 1996