Law

Housing (Scotland) Act 1987

United Kingdom · statute

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In force since 2026-04-01, as the publisher states.

Copy read on 2026-11-08. The page it was read from

Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.

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Contents: 256 provisions
  1. Title and introductory text
  2. 1 Duty of local authority to consider needs of their area for further housing accommodation.
  3. 2 Powers of local authority to provide housing accommodation.
  4. 3 Power of local authority to provide shops, etc., in connection with housing accommodation.
  5. 4 Power of local authority to provide furniture, etc.
  6. 5 Power of local authority to provide board and laundry facilities.
  7. 5A Power of local authority to provide welfare services.
  8. 5B Power to repeal provisions relating to welfare services.
  9. 6 Duty of local authority to have regard to amenities of locality, etc.
  10. 7 Execution of works by local authority in connection with housing operations outside their area.
  11. 8 Adjustment of differences between local authorities as to carrying out of proposals for provision of housing accommodation.
  12. 9 Power of local authority to acquire land for, or in connection with, provision of housing accommodation.
  13. 10 Procedure for acquiring land.
  14. 11 Local authority may take possession of land to be acquired by agreement or appropriated for purposes of this Part.
  15. 12 Powers of dealing with land acquired or appropriated for purposes of this Part.
  16. 12A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  17. 13 Power of Secretary of State in certain cases to impose conditions on sale of local authority’s houses, etc.
  18. 14 Powers of local authorities to sell certain houses without consent of Secretary of State.
  19. 15 Power of local authority to enforce obligations against owner for time being of land.
  20. 16 Disposal of land for erection of churches, etc.
  21. 17 General management and inspection of local authority’s houses.
  22. 17A Publication of information.
  23. 17B Power of Secretary of State to direct local authority.
  24. 17C Management plan.
  25. 18 Byelaws for regulation of local authority’s houses.
  26. 19 Admission to housing list
  27. 20 Persons to have priority on housing list and allocation of housing.
  28. 20A Rules on priority of allocation of housing: consultation
  29. 20B Determination of minimum period for application to remain in force
  30. 21 Rules relating to the housing list and to transfer of tenants
  31. 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  32. 22A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  33. 23 Improvement of amenities of residential area by development corporations.
  34. 24 Homeless persons and persons threatened with homelessness.
  35. 25 Priority need for accommodation.
  36. 26 Becoming homeless intentionally.
  37. 27 Meaning of “local connection”.
  38. 28 Inquiry into cases of possible homelessness or threatened homelessness.
  39. 29 Interim duty to accommodate ....
  40. 30 Notification of decision and reasons.
  41. 31 Duties to persons found to be homeless.
  42. 32 Duties to persons found to be threatened with homelessness.
  43. 32A Power of the Scottish Ministers to modify application of sections 31 and 32
  44. 32B Housing support: persons found to be homeless or threatened with homelessness
  45. 33 Referral of application to another local authority.
  46. 33A Power to modify section 33
  47. 33B Statement on exercise of power to modify section 33
  48. 34 Duties to persons whose applications are referred.
  49. 35 Supplementary provisions.
  50. 35A Right to request review of decision
  51. 35B Procedure on review
  52. 36 Protection of property of homeless persons and persons threatened with homelessness.
  53. 36A Duty to ask if a person is homeless or threatened with homelessness
  54. 36B Duty to act if a person may be homeless
  55. 36C Duty to act if a person may be threatened with homelessness
  56. 36D Power of relevant bodies to share information
  57. 36E Duty to have regard to matters relating to homelessness
  58. 37 Guidance to authorities by the Secretary of State.
  59. 38 Co-operation between authorities.
  60. 39 Financial and other assistance for voluntary organisations concerned with homelessness.
  61. 40 False statements, withholding information and failure to disclose change of circumstances.
  62. 40A Meaning of homelessness and threatened with homelessness
  63. 40B Power to modify provision about a person becoming homeless intentionally
  64. 41 Meaning of accommodation available for occupation.
  65. 42 Application of this Part to cases arising in England or Wales.
  66. 43 Minor definitions.
  67. 43A Power to modify the meaning of “relevant body”
  68. 44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  69. 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  70. 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  71. 47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  72. 48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  73. 49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  74. 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  75. 51 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  76. 52 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  77. 53 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  78. 54 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  79. 55 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  80. 56 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  81. 57 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  82. 58 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  83. 58A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  84. 59 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  85. 60 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  86. 81A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  87. 81B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  88. 82 Interpretation of sections 14, 19 and 20
  89. 83 Members of a person’s family.
  90. 84 Service of notices.
  91. 84A Application of right to buy to cases where landlord is lessee.
  92. 85 General duty of local authority in respect of houses not meeting tolerable standard.
  93. 86 Definition of house meeting tolerable standard.
  94. 87 Official representation that house does not meet tolerable standard.
  95. 88 Improvement of houses below tolerable standard outside housing action areas.
  96. 89 Declaration of housing action areas for demolition.
  97. 90 Declaration of housing action areas for improvement.
  98. 91 Declaration of housing action areas for demolition and improvement.
  99. 92 Provisions supplementary to sections 89 to 91.
  100. 93 Consent to demolition of listed buildings, rehabilitation orders and compensation.
  101. 94 Functions of Secretary of State, and duty of local authority to publish information.
  102. 95 Further procedure, powers of local authority on acquisition of land, compensation and agricultural holdings.
  103. 96 Power of local authority to retain houses subject to demolition for temporary occupation.
  104. 97 Local authority may control occupation of houses in housing action area.
  105. 98 Obligation of local authorities in relation to rehousing in housing action areas.
  106. 99 Application to sheriff for possession where house is identified in accordance with paragraph 1(1) of Schedule 8 as read with section 92(4)(a).
  107. 100 Application to sheriff for possession where house is identified in accordance with paragraph 1(1) of Schedule 8 as read with section 92(4)(c).
  108. 101 Application to sheriff for possession where house is identified in accordance with paragraph 1 of Schedule 8 as read with section 92(4)(b).
  109. 102 Procedure; and application of s.103(1) of Rent (Scotland) Act 1984.
  110. 103 Certain provisions of Rent (Scotland) Act 1984 not to apply.
  111. 104 Effect of refusal to make order on validity of resolution.
  112. 105 Exclusion of houses controlled by Crown.
  113. 106 Power of local authority to arrange for the execution of works of improvement by agreement with the owner.
  114. 107 Conditions may be attached to sale of below-standard local authority houses.
  115. 108 Power of local authority to secure repair of house in state of serious disrepair.
  116. 109 Recovery by local authority of expenses under s.108.
  117. 110 Recovery by lessee of proportion of expenses incurred in repairing house.
  118. 111 Appeals under Part V.
  119. 112 Date of operation of notices, demands and orders subject to appeal.
  120. 113 Obligations to repair.
  121. 114 Closing order.
  122. 115 Demolition order.
  123. 116 Revocation of closing and demolition order.
  124. 117 Undertakings to bring up to tolerable standard and suspension order.
  125. 118 Service.
  126. 119 Listed buildings and houses subject to building preservation orders.
  127. 120 Powers of local authority in relation to building consisting wholly of closed houses.
  128. 121 Local authority may acquire and repair house or building liable to closing or demolition order.
  129. 122 Penalty for use of premises in contravention of closing order or of undertaking.
  130. 123 Procedure where demolition order made.
  131. 124 Power of local authority to purchase site of demolished building where expenses of demolition cannot be recovered.
  132. 125 Local authority may by resolution require demolition of obstructive building.
  133. 126 Effect of resolution for demolition of obstructive building.
  134. 127 Recovery of possession of building or house subject to closing order, etc.
  135. 128 Recovery of possession of house subject to statutorily regulated tenancy
  136. 129 Appeals.
  137. 130 Date of operation of notices, orders or resolutions subject to appeal.
  138. 131 Power of local authority to make charging order in favour of themselves.
  139. 132 Protection of superiors and owners.
  140. 133 Interpretation.
  141. 134 Saving for telecommunication and gas apparatus.
  142. 135 Definition of overcrowding.
  143. 136 The room standard.
  144. 137 The space standard.
  145. 138 Secretary of State may increase permitted number of persons temporarily.
  146. 139 Penalty for occupier causing or permitting overcrowding.
  147. 140 Exception: children attaining age of 1 or 10.
  148. 141 Exception: temporary visitor.
  149. 142 Licence of local authority.
  150. 143 Exception: holiday visitors.
  151. 144 Offence by landlord not to inform prospective tenant of permitted number of occupants.
  152. 145 Recovery of possession of overcrowded house that is let.
  153. 146 Duty of local authority to inspect district and to make reports and proposals as to overcrowding.
  154. 147 Power to require information about persons sleeping in house.
  155. 148 Duty to give information to landlords and occupiers.
  156. 149 Power to publish information.
  157. 150 Duty to enforce this Part.
  158. 151 Interpretation and application.
  159. 191 Housing support grants: fixing of aggregate amount.
  160. 192 Apportionment of housing support grants.
  161. 193 Variation of orders.
  162. 194 Grants payable to the Scottish Special Housing Association and development corporations.
  163. 195 Grants for affording tax relief to Scottish Special Housing Association.
  164. 196 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  165. 197 Financial assistance to voluntary organisations concerned with housing.
  166. 198 Payment of grants and accounting provisions.
  167. 199 Termination of certain exchequer payments to housing authorities.
  168. 200 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  169. 201 Payment of subsidies and accounting provisions.
  170. 202 Power of Secretary of State to reduce, suspend, discontinue or transfer particular Exchequer contributions.
  171. 203 The housing revenue account.
  172. 204 Power of Secretary of State to limit estimated rate fund contributions to housing revenue account.
  173. 205 The rent rebate account.
  174. 206 The rent allowance account.
  175. 207 The slum clearance revenue account.
  176. 208 Application of receipts from disposal of certain land.
  177. 209 Adjustment of accounts on appropriation of land.
  178. 210 Rents for public sector housing.
  179. 211 Service charges.
  180. 212 Rent increase notice.
  181. 213 Removal notice.
  182. 214 Power of local authority to make advances for the purpose of increasing housing accommodation.
  183. 215 Requirements as to meeting tolerable standard.
  184. 216 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  185. 217 Duty of local authorities to offer loans to meet expenses of improvement of houses in housing action areas.
  186. 218 Duty of local authority to offer loans to meet expenses of repairs.
  187. 219 Local authority home loan interest rates.
  188. 220 Variation of rate by local authority.
  189. 221 Variation of rate by Secretary of State.
  190. 222 Advances to recognised lending institutions to assist first-time buyers.
  191. 223 Forms of assistance and qualifying conditions.
  192. 224 Recognised lending institutions.
  193. 225 Recognised savings institutions.
  194. 226 Terms of advances and administration.
  195. 227 Modifications of building society law and disapplication of provisions of the Restrictive Trade Practices Act 1976 in relation to assistance for first-time buyers.
  196. 228 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  197. 229 Local authority indemnities for building societies, etc.
  198. 230 Assistance by local authority for acquiring houses in need of repair and improvement.
  199. 231 Local loans made by the Treasury for provision or improvement of housing accommodation.
  200. 233 Power of local authority to assist in provision of separate service water pipes for houses.
  201. 234 Financial assistance towards tenants’ removal expenses.
  202. 235 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  203. 240B Applicant’s contribution: review
  204. 304 Payments in respect of well-maintained houses subject to closing orders etc.
  205. 305 Payments in respect of well-maintained houses subject to compulsory purchase as not meeting the tolerable standard.
  206. 306 Calculation of amount payable for well- maintained houses.
  207. 307 Repayment of payments made in connection with closing or demolition order when revoked.
  208. 308 Right to and amount of payments for house not meeting tolerable standard.
  209. 309 Right of parties to certain agreements secured on, or related to, houses not meeting the tolerable standard to apply to sheriff for adjustment of the agreements.
  210. 310 Provisions as to house subject to heritable security or purchased by instalments.
  211. 311 Interpretation of sections 308 to 310.
  212. 312 Payment of purchase money or compensation by one local authority to another.
  213. 313 Byelaws with respect to houses in multiple occupation.
  214. 314 Byelaws with respect to accommodation for agricultural workers.
  215. 315 Byelaws with respect to accommodation for seasonal workers.
  216. 316 Confirmation of byelaws.
  217. 317 Power of entry for survey, etc.
  218. 318 Penalty for obstructing execution of Act.
  219. 319 Penalty for preventing execution of works, etc.
  220. 320 Penalty for damage to houses, etc.
  221. 321 Liability of directors, etc. in case of offence by body corporate.
  222. 322 Sheriff may determine lease in certain cases.
  223. 323 Sheriff may authorise superior to execute works, etc.
  224. 324 Procedure on applications and appeals to sheriff.
  225. 325 Occupier or tenant may be required to state interest.
  226. 326 Service by description on certain persons whose identity is unknown and on a number of persons of one description.
  227. 327 Disclosure of landlord’s identity.
  228. 328 Duty to inform tenant of assignation of landlord’s interest.
  229. 329 Power of Secretary of State in event of failure of local authority to exercise powers.
  230. 330 Power of Secretary of State to prescribe forms, etc.
  231. 331 Regulations: procedure.
  232. 332 Secretary of State’s power to dispense with advertisements and notices.
  233. 333 Local inquiries.
  234. 334 Power of heir of entail to sell land for housing purposes.
  235. 335 Crown rights.
  236. 336 Limitation on liability of trustee etc. for expenses incurred by local authority.
  237. 337 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  238. 338 Interpretation.
  239. 339 Minor and consequential amendments, transitional provisions and repeals.
  240. 340 Citation, commencement and extent.
  241. SCHEDULE 1 RULES AS TO ASSESSMENT OF COMPENSATION WHERE LAND PURCHASED COMPULSORILY IN CERTAIN CIRCUMSTANCES
  242. SCHEDULE 2 TENANCIES WHICH ARE NOT SECURE TENANCIES
  243. SCHEDULE 3 GROUNDS FOR RECOVERY OF POSSESSION OF HOUSES LET UNDER SECURE TENANCIES
  244. SCHEDULE 4 TERMS OF SECURE TENANCY RELATING TO SUBLETTING, ETC.
  245. SCHEDULE 5 TERMS OF SECURE TENANCY RELATING TO ALTERATIONS, ETC TO HOUSE
  246. SCHEDULE 6 VESTING ORDER UNDER SECTION 77: MODIFICATION OF ENACTMENTS
  247. SCHEDULE 6A
  248. SCHEDULE 9 RECOVERY OF EXPENSES BY CHARGING ORDER
  249. SCHEDULE 12 TERMINATION OF EXCHEQUER PAYMENTS TO LOCAL AUTHORITIES AND CERTAIN PERIODICAL PAYMENTS TO OTHER PERSONS
  250. SCHEDULE 13 ENACTMENTS SPECIFYING EXCHEQUER CONTRIBUTIONS
  251. SCHEDULE 14 ENACTMENTS SPECIFYING EXCHEQUER CONTRIBUTIONS THAT MAY BE REDUCED, SUSPENDED OR DISCONTINUED
  252. SCHEDULE 15 THE HOUSING REVENUE ACCOUNT
  253. SCHEDULE 16 THE SLUM CLEARANCE REVENUE ACCOUNT
  254. SCHEDULE 22 TRANSITIONAL PROVISIONS AND SAVINGS
  255. SCHEDULE 23 MINOR AND CONSEQUENTIAL AMENDMENTS
  256. SCHEDULE 24 REPEALS

Proposed changes to this act

No one has proposed a change to this act yet.

256 provisions

193 Variation of orders.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

194 Grants payable to the Scottish Special Housing Association and development corporations.

(1) The Secretary of State may each year make grants, of such amount and subject to such conditions as he may determine, to . . . development corporations in accordance with the provisions of this section. (2) Grants under this section shall be payable for any year to . . . development corporations in respect of the total net annual expenditure (as approved by the Secretary of State and calculated in accordance with rules made by him with the consent of the Treasury) necessarily incurred for that year by . . . any development corporation— (a) in providing housing accommodation by— (i) erecting houses, (ii) converting any houses or other buildings into houses, (iii) acquiring houses; (b) in improving housing accomodation so provided; (c) in managing and maintaining any housing accommodation so provided or improved; (d) in improving the amenities of a predominantly residential area; (e) in providing or converting buildings for use as hostels or as parts of hostels, and in improving, managing and maintaining buildings so provided or converted; (f) in doing anything ancillary to any of the activities mentioned in paragraphs (a) to (e). (3) In subsection (2) “improving” includes altering, enlarging or repairing.

Propose a change

195 Grants for affording tax relief to Scottish Special Housing Association.

(1) The Secretary of State may, on the application of the Association, make grants to the Association for affording relief from— (a) income tax (other than income tax which the Association is entitled to deduct on making any payment); and (b) corporation tax. (2) A grant under this section shall be of such amount, shall be made at such times and shall be subject to such conditions as the Secretary of State thinks fit. (3) The conditions mentioned in subsection (2) may include conditions for securing the repayment in whole or in part of a grant made to the Association in the event of tax in respect of which the grant was made subsequently being found not to be chargeable or in such other events as the Secretary of State may determine. (4) An application under this section shall be made in such manner and shall be supported by such evidence as the Secretary of State may direct. (5) The Commissioners of Inland Revenue and their officers may disclose to the Secretary of State such particulars as he may reasonably require for determining whether a grant should be made under this section or whether a grant so made should be repaid or the amount of such grant or repayment.

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196 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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197 Financial assistance to voluntary organisations concerned with housing.

(1) The Secretary of State may, with the consent of the Treasury and upon such terms and subject to such conditions as he may determine, give to a voluntary organisation assistance by way of grant or by way of loan, or partly in the one way and partly in the other, for the purpose of enabling or assisting the organisation to provide training or advice, or to undertake research, or for other similar purposes relating to housing. (2) In this section “voluntary organisation” means a body the activities of which are carried on otherwise than for profit, but does not include any public or local authority or a registered housing association.

Propose a change

198 Payment of grants and accounting provisions.

(1) Any grant to be paid by the Secretary of State under this Part shall be payable at such times and in such manner as he may determine and subject to such conditions as he may impose. (2) Without prejudice to the generality of subsection (1), the making of any such payment shall be subject to the making of an application for the payment in such form, and containing such particulars, as the Secretary of State may from time to time determine.

Propose a change

199 Termination of certain exchequer payments to housing authorities.

Schedule 12 shall have effect for the purpose of terminating certain exchequer payments to housing authorities.

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200 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

201 Payment of subsidies and accounting provisions.

(1) Any subsidy to be paid by the Secretary of State under this Part shall be payable at such times and in such manner as the Treasury may direct and subject to such conditions as to records, certificates, audit or otherwise, as the Secretary of State may, with the approval of the Treasury, impose. (2) Without prejudice to the generality of subsection (1), the making of any such payment shall be subject to the making of a claim for the payment in such form, and containing such particulars, as the Secretary of State may from time to time determine. (3) The aggregate amount of any one subsidy payable under this Part to a housing authority for any year shall be calculated to the nearest pound, by disregarding an odd amount of 50 pence, or less, and by treating an odd amount exceeding 50 pence as a whole pound. (4) Subsection (1) applies to Exchequer contributions payable under the enactments specified in Schedule 13 as it applies to subsidies paid under this Part, and Schedule 13 shall have effect for the purposes of this subsection. (5) Schedule 14 shall have effect for the purposes of specifying such Exchequer contributions as may be reduced, suspended or discontinued under section 202(3).

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202 Power of Secretary of State to reduce, suspend, discontinue or transfer particular Exchequer contributions.

(1) The Secretary of State may in the circumstances mentioned in subsection (2) reduce the amount of a subsidy to be paid under this Part or suspend or discontinue such payment or part of such payment. (2) The circumstances are— (a) where the Secretary of State is satisfied that the local authority has failed to discharge any of their functions; (b) where the subsidy is payable subject to a condition, and the Secretary of State is satisfied that the condition has not been complied with. (3) The Secretary of State may, in any of the circumstances mentioned in subsection (5), reduce the amount of any Exchequer contribution being an Exchequer contribution falling to be made under any of the enactments specified in Schedule 14 in respect of a particular subsidised unit, or suspend or discontinue the payment of such Exchequer contributions or part thereof, as he thinks just in those circumstances. (4) Where an Exchequer contribution is made to a local authority in respect of a subsidised unit in relation to which an annual grant is payable by the authority to a development corporation or a housing association, then, if the amount of the Exchequer contribution is reduced or the payment of the Exchequer contribution or part of it is suspended or discontinued under this section, the authority may reduce the annual grant to a corresponding or any less extent or suspend the payment thereof, for a corresponding period or discontinue the payment, or of a corresponding part, as the case may be. (5) The circumstances referred to in subsection (3) are— (a) that the Exchequer contribution is to be made to a local authority and the Secretary of State is satisfied that the authority have failed to discharge any of their duties under this Act or that they have failed to exercise any power mentioned therein in any case where any such power ought to have been exercised; (b) that the Exchequer contributions fall to be made or the subsidy falls to be paid subject to any conditions and the Secretary of State is satisified that any of those conditions has not been complied with; (c) that the subsidised unit has been converted, demolished or destroyed; (d) that the subsidised unit is not fit to be used or has ceased to be used for the purpose for which it was intended; (e) that the subsidised unit has been sold or has been leased for a stipulated duration exceeding 12 months; (f) that the subsidised unit has been transferred, whether by sale or otherwise. (6) Where the Secretary of State’s power under this section to discontinue the payment of the whole or part of any Exchequer contributions to be made to a recipient authority in respect of a particular subsidised unit becomes exercisable in the circumstances mentioned in paragraph (e) or paragraph (f) of subsection (5) and the subsidised unit has become vested in or has been leased to another recipient authority, then, if the Secretary of State exercised that power he may make to that other authority Exchequer contributions of the like amount as he would otherwise have made to the first-mentioned authority if the conditions subject to which the first-mentioned Exchequer contributions fell to be made had been complied with. (7) In this section— “recipient authority” means a local authority, a development corporation or a housing association. “the subsidised unit” means the house, hostel or other land in respect of which Exchequer contributions fall to be made, whether they fall to be made in respect of it or its site or in respect of land comprising it or in respect of the cost of any houses, or the acquisition of any land, comprising it.

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203 The housing revenue account.

(1) A local authority shall keep a housing revenue account of the income and expenditure of the authority for each year in respect of the houses, buildings and land specified in Part I of Schedule 15, and Part I shall have effect for that purpose. (2) A local authority may, with the consent of the Secretary of State, include in or exclude from the housing revenue account any individual house or other property or categories of houses or other properties. (3) The Secretary of State may make a direction either generally or in relation to specified properties that any category of house or other properties shall be included in or excluded from the housing revenue account of a local authority. (4) The land in respect of which the local authority are required by subsection (1) to keep a housing revenue account shall not include any land which the local authority have provided expressly for sale for development by another person. (5) Part II of Schedule 15 shall have effect in relation to the operation of the housing revenue account. (6) The Secretary of State may, as respects any year, after consultation with such associations of local authorities as appear to him to be concerned, by order amend Schedule 15. (7) An order under subsection (6) shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

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204 Power of Secretary of State to limit estimated rate fund contributions to housing revenue account.

(1) The Secretary of State may by order impose, as respects a local authority or class thereof specified in the order, a limit to the amount of contribution out of their general fund which the authority or, as the case may be, an authority of the class may estimate that they will carry to the credit of their housing revenue account for the year specified in the order; and it shall be the duty of the local authority so to estimate that amount as not to exceed that limit. (2) The limit referred to in subsection (1) may be expressed in whatever way the Secretary of State thinks fit. (3) An order under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament. (4) Every local authority shall submit to the Secretary of State an estimate of the income and expenditure an account of which they are obliged, under section 203, to keep in their housing revenue account for the year next following. (5) In subsection (1), “general fund” means the fund maintained by a local authority under section 93 of the Local Government (Scotland) Act 1973.

Propose a change

205 The rent rebate account.

(1) A local authority shall keep a rent rebate account for each year. (2) The authority shall— (a) credit that account with the amount of rent rebate subsidy payable to them under section 32 of the Social Security and Housing Benefits Act 1982; (b) debit that account with— (i) the amount of the authority’s rent rebates for the year, and (ii) the authority’s costs of administering their rent rebates for the year. (3) Where for any year a deficit is shown in the account, the local authority shall credit the account in respect of that year with an amount equal to the amount of the deficit.

Propose a change

206 The rent allowance account.

(1) A local authority shall keep a rent allowance account for each year. (2) The authority shall— (a) credit that account with the amount of rent allowance subsidy payable to them under section 32 of the Social Security and Housing Benefits Act 1982; (b) debit that account with— (i) the amount of the authority’s rent allowances for the year, and (ii) the authority’s costs of administering their rent allowances for the year. (3) Where for any year a deficit is shown in the account, the local authority shall credit the account in respect of that year with the amount of the deficit.

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207 The slum clearance revenue account.

(1) A local authority shall keep a slum clearance revenue account for each year. (2) That account shall include— (a) the income and expenditure of the authority in respect of houses and other property acquired by them, or appropriated, for the purposes of Parts IV, V or VI other than houses acquired under Part IV for the purpose of bringing it or another house up to the tolerable standard; and (b) such of the expenditure of the authority in respect of houses and other property, being expenditure not included in paragraph (a), together with any income related to that expenditure as may be approved by the Secretary of State and falls within any of the following categories— (i) any payment under section 308 (payments to certain owner-occupiers and others in respect of houses not meeting tolerable standard which are purchased or demolished) other than any such payment in respect of an interest in a house which has been purchased by the local authority for the purpose of bringing that house or another house up to the tolerable standard; (ii) any payment under section 304 (payments in respect of well-maintained houses) other than any such payment in respect of an interest in a house which has been purchased by the local authority for the purpose of bringing that house or another house up to the tolerable standard; (iii) any payment under section 234(5) or (6) (payment of removal and other allowances to person displaced); (iv) such other expenditure as the Secretary of State may direct. (3) Schedule 16 shall have effect in relation to the slum clearance revenue account.

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208 Application of receipts from disposal of certain land.

(1) Any money received by a local authority from the disposal of land to which this section applies shall be applied for a purpose for which the land which was the subject of the transaction was held. (2) Subsection (1) shall not have effect if the Secretary of State approves the money being applied for another purpose or has made directions under section 13(3). (3) Subsection (1) applies to land in respect of which income and expenditure is accounted for— (a) in the housing revenue account, or (b) in the slum clearance account.

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209 Adjustment of accounts on appropriation of land.

(1) Where land is appropriated by a local authority for the purposes of Parts I or V or on the discontinuance of use for those purposes, such adjustment shall be made in the accounts of the local authority as the Secretary of State may direct. (2) Any direction under this section may be either a general direction or a direction for any particular case. (3) Where this section applies, section 25 of the Town and Country Planning (Scotland) Act 1959 (which also relates to the adjustment of accounts on appropriation of land) shall not apply.

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210 Rents for public sector housing.

(1) Subject to the provisions of this section, a local authority may charge such reasonable rents as they may determine for the tenancy or occupation of houses provided by them. (2) A local authority shall from time to time review such rents and make such charges either of rents generally or of particular rents as circumstances may require. (3) In determining standard rents to which their housing revenue account relates, a local authority shall take no account of the personal circumstances of the tenants.

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211 Service charges.

(1) A local authority shall make a service charge for each year of such amount as they think reasonable in all the circumstances in respect of the following items to which the housing revenue account relates— (a) any garage, car-port or other car parking facilities provided by them in so far as not included within the terms of the tenancy of a house; (b) any service provided by them under the terms of the tenancy of a house; (c) any other item made available under section 3 or 5 or supplied under section 4 for which a charge was made in the financial year 1971-2 under section 139 to 141 of the Act of 1966 and which has continued to be made available or supplied after that year. (2) The Secretary of State may direct in relation to any service provided under paragraph (b) of subsection (1) either generally or in a particular case that no such service charge shall be made. (3) Before making any such direction the Secretary of State shall consult— (a) such associations of local authorities as appear to him to be concerned; (b) any local authority with whom consultation appears to him to be desirable.

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212 Rent increase notice.

(1) Where an authority lets a house held by it for housing purposes to a tenant it shall be an implied term of the tenancy that the rent or any other charge payable to the authority under the tenancy may be increased by notice (“rent increase notice”) without the tenancy being terminated. (2) A rent increase notice shall— (a) be in writing; (b) specify the increased rent and the date on which it has effect; (c) be given to the tenant at least 4 weeks before it has effect; (d) inform the tenant of his right to terminate the tenancy and of the steps to be taken if he wishes to do so; (e) inform him of the dates by which the notice of removal under section 213 must be received and the tenancy terminated if the increase is not to have effect. (3) A rent increase notice given in accordance with this section shall have effect unless a removal notice is given in accordance with section 213. (4) For the purposes of this section an authority is— (a) a local authority; (b) a joint board or a joint committee; (c) a development corporation; (d) the Scottish Special Housing Association; (e) Scottish Water (5) This section does not apply to a Scottish secure tenancy.

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213 Removal notice.

(1) A tenant who has been given a rent increase notice may give the authority a removal notice terminating the tenancy. (2) The removal notice shall have effect to terminate the tenancy if— (a) it is given within 2 weeks of the date on which the rent increase notice was given, or such longer period as the notice may specify; (b) it specifies a date for the termination of the tenancy within 4 weeks after the date on which it is given. (3) Nothing in the terms of the tenancy (express or implied) shall prevent a tenant giving a removal notice that complies with subsection (2).

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214 Power of local authority to make advances for the purpose of increasing housing accommodation.

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215 Requirements as to meeting tolerable standard.

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216 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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217 Duty of local authorities to offer loans to meet expenses of improvement of houses in housing action areas.

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218 Duty of local authority to offer loans to meet expenses of repairs.

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219 Local authority home loan interest rates.

(1) Subject to subsections (2) and (3)— (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) any sum secured under any arrangement by which the price or part of the price of a house sold by a local authority is secured by a standard security; and (c) any sum secured under any security which is taken over by a local authority under a power conferred by section 229 (local authority indemnities for building societies, etc.), is a variable interest home loan for the purposes of this section. (2) This section does not apply to an advance made before 3rd October 1980 or to a sum secured in respect of the price of a house agreed to be sold before then or (where subsection 1(c) applies) to a security granted before then. (3) This section shall not apply to an advance made in implement of a contract constituted by an offer of advance made before that date and an unqualified acceptance of that offer thereafter. (4) Subject to section 220, a local authority shall, in respect of their variable interest home loans, charge a rate of interest which shall be equal to whichever is the higher of the following— (a) the standard rate for the time being, as declared by the Secretary of State in accordance with subsection (5); (b) the locally determined rate calculated in accordance with subsection (6). (5) In considering what rate to declare as the standard rate for the purposes of subsection (4), the Secretary of State shall take into account interest rates charged by building societies in the United Kingdom and any movement in those rates. (6) The locally determined rate for the purposes of this section shall be the rate which is necessary to service loan charges on money which is to be applied to making variable interest home loans during the relevant period of six months (referred to in subsection (7)), together with the addition of one quarter per cent. to cover the administration cost of making and managing variable interest home loans. (7) The locally determined rate, for the purposes of this section, shall be determined by each local authority for the period of 6 months not less than one month before the beginning of the relevant period. (8) Nothing in this or the following two sections shall affect the operation of section 223(1)(b) (under which a part of certain loans may be free of interest for up to 5 years).

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220 Variation of rate by local authority.

(1) Where the declaration of a new standard rate or, as the case may be, the determination of a new locally determined rate, affects the rate of interest chargeable under section 219 by a local authority the authority shall, as soon as practicable after such declaration or determination, serve in respect of each of its variable interest home loans a notice on the borrower which shall, as from the appropriate day— (a) vary the rate of interest payable by him; and (b) where, as the result of the variation, the amount outstanding under the advance or security would increase if the periodic repayments were not increased, increase the amount of the periodic repayments to such an amount as will ensure that the said outstanding amount will not increase. (2) In subsection (1), “the appropriate day” means such day as shall be specified in the notice, being— (a) in the case of a new standard rate, a day not less than 2 weeks, nor more than 6 weeks, after service of the notice; and (b) in the case of a new locally determined rate, the first day of the relevant period of 6 months.

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221 Variation of rate by Secretary of State.

—Notwithstanding anything contained in sections 219 and 220, but subject to section 230, the Secretary of State may, where he considers that the interest rate charged by a local authority does not satisfy the requirements of section 219(4), direct a local authority— (a) to charge an interest rate specified in the direction; and (b) to vary the rate in accordance with the provisions of section 220.

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222 Advances to recognised lending institutions to assist first-time buyers.

(1) The Secretary of State may make advances to recognised lending institutions enabling them to provide assistance to first-time purchasers of house property in Great Britain where— (a) the purchaser intends to make his home in the property, (b) finance for the purchase of the property (and improvements, if any) is obtained by means of a secured loan from the lending institution, and (c) the purchase price is within the prescribed limits. (2) In this section “prescribed” means prescribed by order of the Secretary of State. (3) An order— (a) may prescribe different limits for properties in different areas, and (b) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.

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223 Forms of assistance and qualifying conditions.

(1) Assistance under section 222 (assistance for first-time buyers) may be given in the following ways— (a) the secured loan may be financed by the Secretary of State to the extent of £600 (that amount being normally additional to that which the institution would otherwise have lent, but not so that the total loan exceeds the loan value of the property); (b) £600 of the total loan may be made free of interest, and of any obligation to repay principal, for up to 5 years from the date of purchase; and (c) the institution may provide the purchaser with a bonus on his savings (which bonus shall be tax-exempt) up to a maximum of £110, payable towards the purchase or expenses arising in connection with it. (2) The purchaser qualifies for assistance under subsection (1)(a) and (b) (interest-free loan) by satisfying the following conditions with respect to his own savings— (a) that he has been saving with a recognised savings institution for at least 2 years preceding the date of his application for assistance, (b) that throughout the 12 months preceding that date he had at least £300 of such savings, and (c) that by that date he has accumulated at least £600 of such savings; and he qualifies for assistance under subsection (1)(c) (bonus on savings) by satisfying the conditions specified in paragraphs (a) and (b) above. (3) The Secretary of State may allow for the conditions to be relaxed or modified in particular classes of case. (4) No assistance shall be given in any case unless the amount of the secured loan is at least £1,600 and amounts to not less than 25 per cent. of the purchase price of the property. (5) The Secretary of State may by order made with the consent of the Treasury— (a) alter any of the money sums specified in this section; (b) substitute a longer or shorter period for either or both of the periods mentioned in subsection (2)(a) and (b) (conditions as to savings); (c) alter the condition in subsection (2)(c) so as to enable the purchaser to satisfy it with lesser amounts of savings and to enable assistance to be given in such a case according to reduced scales specified in the order; (d) alter the percentage mentioned in subsection (4) (minimum secured loan). (6) An order shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.

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224 Recognised lending institutions.

(1) The lending institutions recognised for the purposes of section 222 (assistance for first-time buyers) are— building societies, local authorities, development corporations, The Scottish Special Housing Association, banks, insurance companies, and friendly societies. (2) The Secretary of State may by order made with the consent of the Treasury— (a) add to the list in subsection (1), or (b) direct that a named body shall no longer be a recognised lending institution; but before making an order under paragraph (b) he shall give an opportunity for representations to be made on behalf of the body concerned. (3) An order shall be made by statutory instrument.

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225 Recognised savings institutions.

(1) The savings institutions recognised for the purposes of section 223 (qualifying conditions as to savings) are— building societies, local authorities, banks, friendly societies, the Director of Savings, and the Post Office, and savings institutions recognised for the purposes of the corresponding provisions in force in England or Wales or Northern Ireland. In this section and in section 227 those corresponding provisions are— (a) in relation to England and Wales, sections 445 to 449 of the Housing Act 1985; (b) in relation to Northern Ireland, Part IX of the Housing (Northern Ireland) Order 1981. (2) The Secretary of State may by order made with the consent of the Treasury— (a) add to the list in subsection (1), or (b) direct that a named body shall no longer be a recognised savings institution, but before making an order under paragraph (b) he shall give an opportunity for representations to be made on behalf of the body concerned. (3) An order shall be made by statutory instrument.

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226 Terms of advances and administration.

(1) Advances to lending institutions under section 222 (assistance for first-time buyers) shall be on such terms as to repayment and otherwise as may be settled by the Secretary of State, with the consent of the Treasury, after consultation with lending and savings institutions or organisations representative of them; and the terms shall be embodied in directions issued by the Secretary of State. (2) The following matters, among others, may be dealt with in directions issued by the Secretary of State— (a) the cases in which assistance is to be provided; (b) the method of determining the loan value of property for the purpose of section 223(1)(a) (limit on total loan); (c) the method of quantifying bonus by reference to savings; (d) the considerations by reference to which a person is or is not to be treated as a first-time purchaser of house property; (e) the steps which must be taken with a view to satisfying the conditions in section 223(2) (conditions as to purchaser’s own savings), and the circumstances in which those conditions are or are not to be treated as satisfied; (f) the supporting evidence and declarations which must be furnished by a person applying for assistance, in order to establish his qualification for it, and the means of ensuring that restitution is made in the event of it being obtained by false representations; (g) the way in which amounts paid over by way of assistance are to be repaid to the lending institutions and to the Secretary of State. (3) The Secretary of State may, to the extent that he thinks proper for safeguarding the lending institutions, include in the terms an undertaking to idemnify the institutions in respect of loss suffered in cases where assistance has been given.

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227 Modifications of building society law and disapplication of provisions of the Restrictive Trade Practices Act 1976 in relation to assistance for first-time buyers.

(1) So much of an advance by a building society which is partly financed under section 222 (assistance for first-time buyers) or the corresponding English or Northern Ireland provisions as is so financed shall be treated as not forming part of the advance for the purpose of determining— (a) whether the advance, or any further advance made within two years of the date of purchase, is beyond the powers of the society, and (b) the classification of the advance, or any such further advance, for the purposes of Part III of the Building Societies Act 1986. (2) Section 16(3) and (5) of the Restrictive Trade Practices Act 1976 (recommendations by service supply associations to members) shall not apply to recommendations made to lending institutions and savings institutions about the manner of implementing sections 222 to 226 (assistance for first-time buyers) or the corresponding English or Northern Ireland provisions, provided that the recommendations are made with the approval of the Secretary of State, or as the case may be, the Department of Environment for Northern Ireland, which may be withdrawn at any time on one month’s notice.

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229 Local authority indemnities for building societies, etc.

(1) A local authority may, with the approval of the Secretary of State, enter into an agreement with a building society or recognised body under which the authority binds itself to indemnify the building society or recognised body in respect of— (a) the whole or any part of any outstanding indebtedness of a borrower; and (b) loss or expense to the building society or recognised body resulting from the failure of the borrower duly to perform any obligation imposed on him by a heritable security. (2) The agreement may also, where the borrower is made party to it, enable or require the authority in specified circumstances to take an assignation of the rights and liabilities of the building society or recognised body under the heritable security. (3) Approval of the Secretary of State under subsection (1) may be given generally in relation to agreements which satisfy specified requirements, or in relation to individual agreements, and with or without conditions, as he thinks fit, and such approval may be withdrawn at any time on one month’s notice. (4) Before issuing any general approval under subsection (1) the Secretary of State shall consult with such bodies as appear to him to be representative of local authorities, and of building societies, and also with the Financial Conduct Authority and the Prudential Regulation Authority . (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) In this section “recognised body” means a body designated, or of a class or description designated, in an order under this subsection made by statutory instrument by the Secretary of State with the consent of the Treasury. (7) Before making an order under subsection (6) varying or revoking an order previously so made, the Secretary of State shall give an opportunity for representations to be made on behalf of a recognised body which, if the order were made, would cease to be such a body.

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230 Assistance by local authority for acquiring houses in need of repair and improvement.

(1) Notwithstanding any other provision of sections 219, 220 and 221, a local authority may, where the conditions set out in subsection (2) are satisifed, give assistance to a person acquiring a house in need of repair or improvement by making provision for waiving or reducing, for a period ending not later than 5 years after the date of an advance of money of the kind mentioned in section 219(1)(a) or of the granting of a security under an arrangement of the kind mentioned in section 219(1)(b), the interest payable on the sum advanced or remaining outstanding under the security, as the case may be. (2) The conditions mentioned in subsection (1) are that— (a) the assistance is given in accordance with a scheme which has been approved by the Secretary of State or which conforms with such requirements as may be specified by the Secretary of State by order made by statutory instrument with the consent of the Treasury; and (b) the person acquiring the house has entered into an agreement with the local authority to carry out, within a period specified in the agreement, works of repair or improvement therein specified.

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231 Local loans made by the Treasury for provision or improvement of housing accommodation.

(1) The Treasury may, subject to the provisions of this section, lend money to any person entitled to any land either as owner or as lessee under a lease of which a period of not less than 50 years remains unexpired at the date of the loan for the purpose of constructing or improving, or facilitating or encouraging the construction or improvement of, houses, and any such person may borrow from the Treasury such money as may be required for the purposes aforesaid. (1A) Any loan made under subsection (1) is a local loan for the purposes of section 3 of the National Loans Act 1968 (see Schedule 4 to that Act). (2) A loan for any of the purposes specified in subsection (1) shall be secured with interest by a heritable security over the land and houses in respect of which that purpose is to be carried out and over such other land and houses, if any, as may be offered as security for the loan. (3) Any such loan may be made whether the person receiving the loan has or has not power to borrow on bond and disposition in security or otherwise, independently of this Act, but nothing in this Act shall affect any regulation, statutory or otherwise, whereby any company may be restricted from borrowing until a definite portion of capital is subscribed for, taken or paid up. (4) The following conditions shall apply in the case of any such loan— (a) the period for repayment shall not exceed 40 years; (b) no money shall be lent on the security of any land or houses unless the estate or interest therein proposed to be burdened is either ownership or a lease of which a period of not less than 50 years remains unexpired at the date of the loan; (c) the money lent shall not exceed such proportion as is hereinafter authorised of the value, to be ascertained to the satisfaction of the Treasury, of the estate or interest in the land or houses proposed to be burdened in pursuance of subsection (2); but loans may be made by instalment from time to time as the building of houses or other work on the land so burdened progresses, so, however, that the total loans do not at any time exceed the amount aforesaid; and the heritable security may be granted accordingly to secure such loans so to be made from time to time. (5) The proportion of such value as aforesaid authorised for the purpose of the loan shall be three-fourths but if the loan exceeds two-thirds of such value, the Treasury shall require, in addition to such heritable security as is mentioned in subsection (2), such further security as they may think fit.

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233 Power of local authority to assist in provision of separate service water pipes for houses.

(1) A local authority may if they think fit give assistance in respect of the provision of a separate service pipe for a house in their district which has a piped supply of water from a water main, but no separate service pipe. (2) Subject to this section, the assistance shall be by way of making a grant in respect of all or any part of the expenses incurred in the provision of the separate service pipe. (3) The reference to expenses in subsection (2) includes, in a case where all or any part of the works required for the provision of the separate service pipe are carried out by Scottish Water (whether in exercise of default powers or in any other case), a reference to sums payable by the owner of the house, or any other person, to Scottish Water for carrying out the works.

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