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Housing (Scotland) Act 2010

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This is the original version (as it was originally enacted).

130Market value of eligible house

This sectionnoteType=Explanatory Notes has no associated

(1)It is for the local authority landlord to instruct either of the following to determine the market value of an eligible house—

(a)the district valuer, or

(b)a qualified valuer nominated by the local authority landlord and accepted by the applicant.

(2)In determining the market value of an eligible house, the valuer must have regard to the price which the house would realise if sold on the open market by a willing seller, with the following assumptions—

(a)that it was sold on the day on which the application to acquire the house was made,

(b)that it was sold subject to the tenancy held by the qualifying tenant but otherwise with vacant possession,

(c)that it was to be conveyed with the same right and subject to the same burdens as would apply to an acquisition under this Part,

(d)that the only prospective acquirers were the persons who were approved persons on the date on which the application was made, and

(e)that the applicant would, within a reasonable period, carry out such works as are reasonably necessary to put the house into the state of repair required by the local authority landlord’s repairing obligations.

(3)Where a valuer determines that the house would not realise any price if offered for sale in accordance with subsection (2) that price may be taken to be—

(a)a negative value equal to the amount which would require to be paid to an approved person in order that the approved person would willingly acquire the house, or

(b)where an approved person would willingly acquire the house for no consideration, nil,

and the house’s market value may accordingly be determined to be a negative value or nil.

(4)Where market value is determined to be a negative value or nil—

(a)the reference in section 129 to selling the house is to be read as a reference to disposing of it, and

(b)where the market value is determined to be a negative value, the obligation to pay falls on the local authority landlord.

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