Housing (Scotland) Act 1988

65 “Cost floor” limit on discount on price of house purchased by secure tenant

(1) In subsection (1) of section 62 of the [1987 c. 26.] Housing (Scotland) Act 1987 (purchase price of house being purchased in pursuance of tenant’s right) for the words “subsections (7) and (8)” there shall be substituted the words “subsection (6A)”.

(2) For subsections (7) to (9) of that section there shall be substituted the following subsections—

“(6A) Except where the Secretary of State so determines, the discount for the purpose of subsection (1) shall not reduce the price below the amount which, in accordance with a determination made by him, is to be taken as representing so much of the costs incurred in respect of the house as, in accordance with the determination, is to be treated as—

(a) incurred in the period commencing with the beginning of the financial year of the landlord which was current 5 years prior to the date of service of the application to purchase the house or such other period as the Secretary of State may by order provide; and

(b) relevant for the purposes of this subsection,

and, if the price before discount is below that amount, there shall be no discount.

(6B) An order under subsection (6A) shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament and may make different provision in relation to different cases or circumstances or different areas.”.

(3) In subsection (10) of that section, for “(9)” there shall be substituted “(6A)”.

(4) Subsections (11) to (13) of that section shall cease to have effect.

(5) In section 76 of the Housing (Scotland) Act 1987 (duty of landlords to provide information to secure tenants) in subsection (1), for paragraph (c) there shall be substituted the following paragraph—

“(c) section 62(6A) may affect any price fixed as regards the house under section 62(1),”.

(6) The said sections 62 and 76 shall, however, continue to apply as originally enacted in relation to the price of a house in respect of which the offer to sell (within the meaning of section 63 of the Housing (Scotland) Act 1987) was served on the tenant prior to the commencement of this section; but nothing in this subsection restricts the power of the tenant to withdraw his application to purchase or prejudices the effect of such withdrawal.