Housing (Scotland) Act 1986

3 Amendment of date after which certain restrictions may apply as regards price fixed for purchase of dwelling-house; and extension of those restrictions

(1) Subject to subsection (6) below, in subsection (7) of section 1 of the 1980 Act (fixing of price at which tenant entitled to purchase dwelling-house)—

(a) for the words " 15 May 1975 " there shall be substituted the words " 31 December 1978 "; and

(b) in paragraph (a), for the words " in providing the dwelling-house " there shall be substituted the words—

“after that date (either or both)—

(i) in providing;

(ii) in making improvements (other than by way of repair or maintenance) to,

the dwelling-house”.

(2) Subject to subsection (6) below, after the said subsection (7) there shall be inserted the following subsection—

“(7A) Where the dwelling-house was first let under a tenancy which, if Part II of this Act had then been in force, would have been a secure tenancy, on or before the date mentioned in subsection (7) above but an outstanding debt has been incurred after that date in making improvements (other than by way of repair or maintenance) to the dwelling-house, the price fixed under subsection (5) above shall not be less than—

(a) that outstanding debt; or

(b) the market value of the dwelling-house determined under subsection (5)(a) above,

whichever is the lesser except in such cases as the Secretary of State may, by order made as is mentioned in subsection (7) above, prescribe.”.

(3) Subject to subsection (6) below, in subsection (8) of the said section 1 (interpretation of " outstanding debt ")—

(a) after the word "means" there shall be inserted the words " , in relation to paragraph (a)(i) of that subsection, "; and

(b) at the end there shall be added the words “; and

(e) where the landlord is a body mentioned in paragraph (d) or (e) of section 10(2) of this Act, any proportion of capital grants which it must repay on the dwelling-house being sold ;

but in relation to paragraph (a)(ii) of that subsection and in subsection (7A) above its meaning is confined to any undischarged debt arising from the cost of the works of improvement together with—

(i) administrative costs attributable to those works : and

(ii) where the landlord is such body as is mentioned in paragraph (e) above, any such proportion as is there mentioned.”.

(4) With the consent of the Treasury the Secretary of State may by order made by statutory instrument—

(a) amend subsection (7) of the said section 1 so as to substitute a later date for—

(i) the words substituted by subsection (1) above; or

(ii) words substituted by virtue of this subsection ; or

(b) provide that subsections (7)(a)(ii), (7A) and (8) of the said section 1 shall apply with such modifications as he may specify in the order;

and such order may make different provision in relation to different areas, cases or classes of case and may exclude certain areas, cases or classes of case.

(5) A statutory instrument under subsection (4) above shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(6) The foregoing provisions of this section shall have no effect as regards the exercise of a right to purchase by application under section 2(1) of the 1980 Act if the offer to sell has been duly served (whether by the landlord or, under section 7(3)(a) of that Act, by the Lands Tribunal for Scotland) before the date of coming into force of this section.