Law

Local Government and Housing Act 1989

United Kingdom · statute

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In force since 2026-10-05, 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: 215 provisions
  1. Title and introductory text
  2. 1 Disqualification and political restriction of certain officers and staff.
  3. 2 Politically restricted posts.
  4. 3 Grant and supervision of exemptions from political restriction: Scotland and Wales .
  5. 3A Grant and supervision of exemptions from political restriction: England
  6. 3B General advice as to politically restricted posts: England
  7. 4 Designation and reports of head of paid service.
  8. 5 Designation and reports of monitoring officer.
  9. 5A Reports of monitoring officer—local authorities operating executive arrangements
  10. 6 Officer responsible for financial administration of certain authorities.
  11. 7 All staff to be appointed on merit.
  12. 8 Duty to adopt standing orders with respect to staff.
  13. 9 Assistants for political groups.
  14. 10 Limit on paid leave for local authority duties.
  15. 11 Confidentiality of staff records.
  16. 12 Conflict of interest in staff negotiations.
  17. 13 Voting rights of members of certain committees: England and Wales.
  18. 14 Voting rights of members of certain committees: Scotland.
  19. 15 Duty to allocate seats to political groups.
  20. 16 Duty to give effect to allocations.
  21. 17 Exceptions to and extensions of political balance requirements.
  22. 18 Schemes for basic, attendance and special responsibility allowances for local authority members.
  23. 19 Members’ interests.
  24. 20 Duty to adopt certain procedural standing orders.
  25. 21 Interpretation of Part I.
  26. 22 Advisory Commissioners.
  27. 23 Advice and guidance by Commissions for Local Administration and ScottishCommissioner.
  28. 24 Expenses of Commissions for Local Administration.
  29. 25 Annual reports of Commissions: new provisions.
  30. 26 Implementation of recommendations of Commissioners for Local Administration in England and Wales.
  31. 27 Implementation of recommendations of Commissioner for Local Administrationin Scotland.
  32. 28 Consideration of adverse reports: England and Wales.
  33. 29 Consideration of adverse reports: Scotland.
  34. 30 Declaration of acceptance of office of councillor etc.
  35. 31 National Code of Local Government Conduct.
  36. 32 Anonymity in reports on investigations.
  37. 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  38. 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  39. 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  40. 36 Amendments of existing power to incur discretionary expenditure.
  41. 37 Conditions of provision of financial assistance.
  42. 38 Information etc. on individuals’ rights.
  43. 39 Application of Part IV.
  44. 40 Capital purposes.
  45. 41 Expenditure to be charged to revenue account.
  46. 42 Expenditure excluded from section 41(1).
  47. 43 Borrowing powers.
  48. 44 Borrowing limits etc.
  49. 45 The authority’s own limits.
  50. 46 Register of loan instruments and certain existing loans.
  51. 47 Security for money borrowed etc.
  52. 48 Credit arrangements.
  53. 49 Initial and subsequent cost of credit arrangements.
  54. 50 Limits on powers to enter into credit arrangements.
  55. 51 Variation of credit arrangements.
  56. 52 Transitional credit arrangements.
  57. 53 Basic credit approvals.
  58. 54 Supplementary credit approvals.
  59. 55 Criteria for issuing credit approvals.
  60. 56 Use of credit approvals by local authorities.
  61. 57 Effect of certain capital grants on credit approvals.
  62. 58 Capital receipts.
  63. 59 The reserved part of capital receipts.
  64. 60 The usable balance of capital receipts.
  65. 61 Capital receipts not wholly in money paid to the authority.
  66. 62 Aggregate credit limit.
  67. 63 Duty to set certain amounts aside as provision to meet credit liabilities.
  68. 64 Use of amounts set aside to meet credit liabilities.
  69. 65 Information.
  70. 66 Interpretation of Part IV.
  71. 67 Application of, and orders under, Part V.
  72. 68 Companies controlled by local authorities and arm’s length companies.
  73. 69 Companies subject to local authority influence.
  74. 70 Requirements for companies under control or subject to influence of localauthorities.
  75. 71 Control of minority interests etc. in certain companies.
  76. 72 Trusts influenced by local authorities.
  77. 73 Authorities acting jointly and by committees.
  78. 74 Duty to keep Housing Revenue Account.
  79. 75 The keeping of the Housing Revenue Account.
  80. 76 Duty to prevent debit balance on Housing Revenue Account.
  81. 77 Power to keep Housing Repairs Account.
  82. 78 Directions to secure proper accounting.
  83. 78A Directions as to treatment of service charges, &c.
  84. 78B Directions as to accounting for work subject to competitive tendering.
  85. 79 Housing Revenue Account subsidy.
  86. 80 Calculation of Housing Revenue Account subsidy.
  87. 80B Agreements to exclude certain authorities or property
  88. 80ZA Negative amounts of subsidy payable to Welsh Ministers
  89. 80A Final decision on amount of Housing Revenue Account subsidy.
  90. 81 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  91. 82 Residual debt subsidy for year 1989–90.
  92. 83 Calculation of residual debt subsidy.
  93. 84 Adjustment of housing subsidy for year 1989-90.
  94. 85 Power to obtain information.
  95. 86 Recoupment of subsidy in certain cases.
  96. 87 Determinations and directions.
  97. 87A Orders amending Part 6
  98. 88 Construction and application of Part VI.
  99. 89 Declaration of renewal area.
  100. 90 Conditions for declaration of renewal area.
  101. 91 Renewal area: steps to be taken after declaration or extension
  102. 92 Duty to publish information.
  103. 93 General powers of local housing authority.
  104. 94 Power to apply for orders extinguishing right to use vehicles on highway.
  105. 95 Exclusion of land from, or termination of, renewal area.
  106. 96 Contributions by the Secretary of State.
  107. 97 Powers of entry and penalty for obstruction.
  108. 98 Part VIII of Housing Act 1985.
  109. 99 Directions and guidance.
  110. 100 Interpretation of Part VII.
  111. 101 Grants for improvements and repairs.
  112. 102 Applications for grants.
  113. 103 The age of the property.
  114. 104 The interest of the applicant in the property.
  115. 105 Common parts grants: preliminary conditions.
  116. 106 Certificate as to future occupation, etc.
  117. 107 Certain dwellings and works excluded from grant aid.
  118. 108 Restriction on grants for works already begun.
  119. 109 Owner-occupiers and tenants.
  120. 110 Landlords.
  121. 111 Tenants’ common parts applications.
  122. 112 Duty to approve applications to render certain dwellings fit for humanhabitation.
  123. 113 Duty to approve applications arising out of certain statutory notices.
  124. 114 Approval of applications to provide certain facilities for the disabled.
  125. 115 Discretionary approval of certain applications.
  126. 116 Approval and refusal of applications.
  127. 117 Payment of grants.
  128. 118 Conditions as to completion of works.
  129. 119 Condition as to availability for letting.
  130. 120 Condition requiring repayment of grant in case of certain disposals wherecertificate of intended letting given.
  131. 121 Condition requiring repayment of grant in case of certain disposals whereowner-occupation certificate given.
  132. 122 Conditions relating to HMO grant.
  133. 123 Condition requiring repayment of grant on certain disposals in case oflandlord’s common parts application.
  134. 124 Meaning of relevant disposal and exempt disposal for the purposes ofsections 120 to 123.
  135. 125 Repayment of grant.
  136. 126 Renovation grants relating to two or more dwellings.
  137. 127 Group repair schemes and persons eligible to participate.
  138. 128 Qualifying buildings and external works, etc.
  139. 129 Contributions by participants and limitations on works.
  140. 130 Payment of balance of costs in case of certain disposals.
  141. 131 Assistance for provision of minor works to dwellings.
  142. 132 Contributions by the Secretary of State.
  143. 133 Persons entitled to grants.
  144. 134 Cases in which grants may be re-calculated, withheld or repaid.
  145. 135 Power of local housing authority to carry out works which would attractgrant.
  146. 136 Parsonages, charities etc.
  147. 137 Orders and regulations.
  148. 138 Interpretation of Part VIII.
  149. 139 Local Government Finance Act 1988: amendments.
  150. 140 Scottish non-domestic rates: interim provisions.
  151. 141 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  152. 142 Powers to vary incidence of standard community charge: Scotland.
  153. 143 Reduced liability for personal community charges: Scotland.
  154. 145 Amendment of Abolition of Domestic Rates Etc. (Scotland) Act 1987 andother enactments: Scotland.
  155. 146 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  156. 147 Adjustment of block grant.
  157. 148 Rate support grant, 1985/86.
  158. 149 Statutory references to rating.
  159. 150 Power to allow charges.
  160. 151 Power to amend provisions about charges.
  161. 152 Interpretation, consultation and commencement of ss. 150 and 151.
  162. 153 Charges: temporary traffic signs.
  163. 154 Charges: library services.
  164. 155 Emergency financial assistance to local authorities.
  165. 156 Contingency planning and co-ordination in respect of emergencies ordisasters.
  166. 157 Commutation of, and interest on, periodic payments of grants etc.
  167. 158 Electronic transfer of documents.
  168. 159 Prevention of continuance or recurrence of default of local authority: Scotland.
  169. 160 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  170. 161 Housing authorities not required to keep a housing stock.
  171. 162 Determination of rents.
  172. 163 Exchanges between secure and assured tenants.
  173. 164 Exception to the right to buy in case of certain dwelling-houses forpersons of pensionable age.
  174. 165 Unfit housing etc.
  175. 166 Amendments relating to defective housing.
  176. 167 Reports to tenants etc. on local housing authority functions.
  177. 168 Contributions towards costs of housing mobility arrangements.
  178. 169 Powers of local authorities and Secretary of State as respects services etc. for owners and occupiers of houses for work on them.
  179. 170 Powers of local authorities and Secretary of State as respects services,etc., for owners and occupiers of houses for work on them: Scotland.
  180. 171 Winding up of home purchase assistance scheme.
  181. 172 Transfer of new town housing stock.
  182. 173 Consent required for subsequent disposals.
  183. 174 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  184. 175 Repeal of the Town Development Act 1952.
  185. 176 Amendment of definition of occupation for purposes of purchase of house by secure tenant: Scotland.
  186. 177 Sale to secure tenants of houses provided for persons of pensionable age: Scotland.
  187. 178 Application of secure tenant’s right to buy to cases where landlord is lessee: Scotland.
  188. 179 Amendment of powers of Scottish Homes to dispose of land.
  189. 180 Race relations: codes of practice in housing field.
  190. 181 Duty of landlord to inform secure tenant seeking to buy house about changes in law: Scotland.
  191. 182 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  192. 183 Extension of powers of Housing Corporation and Housing for Wales to give financial assistance.
  193. 184 Extension of functions of Audit Commission.
  194. 185 Publication of reports of Controller of Audit: Scotland.
  195. 186 Security of tenure on ending of long residential tenancies.
  196. 187 Construction industry: grants and guarantees.
  197. 188 Repeal of s. 2 of the Education (Grants and Awards) Act 1984.
  198. 189 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  199. 190 Regulations.
  200. 191 Separate provisions for Wales.
  201. 192 Financial provisions.
  202. 193 Application to Isles of Scilly.
  203. 194 Amendments and repeals.
  204. 195 Short title, commencement and extent.
  205. SCHEDULE 1 Political Balance on Local Authority Committees etc.
  206. SCHEDULE 3 Provisions Supplementing Part IV
  207. SCHEDULE 4 The Keeping of the Housing Revenue Account
  208. SCHEDULE 5 Local Government Finance Act 1988: Amendments
  209. SCHEDULE 6 Amendment of Scottish Enactments
  210. SCHEDULE 7 Compensation Provisions of Landlord and Tenant Act 1954, Part II
  211. SCHEDULE 8 Welsh Language Names for Local Authorities
  212. SCHEDULE 9 Amendments of Parts VI, IX, XI, XVII and XVIII of the Housing Act 1985
  213. SCHEDULE 10 Security of Tenure on Ending of Long Residential Tenancies
  214. SCHEDULE 11 Minor And Consequential Amendments
  215. SCHEDULE 12 Enactments Repealed

Proposed changes to this act

No one has proposed a change to this act yet.

215 provisions

111 Tenants’ common parts applications.

(1) This section applies where an application for a grant is a tenants’ commonparts application. (2) The local housing authority shall decide how much of the cost of therelevant works is attributable to the applicants (in this section referred toas “the attributable cost”); and, for the purposes of thissection, the attributable cost is an amount equal to the proportion, referredto in subsection (3) below, of the cost of the relevant works. (3) The proportion mentioned in subsection (2) above is as follows— (a) where it can be ascertained, the proportion that the aggregate of each ofthe applicant’s respective liabilities to carry out or contribute to thecarrying out of the relevant works bears to the aggregate of all suchliabilities on the part of all persons (including the applicants) so liable;or (b) where the proportion mentioned in paragraph (a) above cannot beascertained, the proportion that the number of applicants bears to the numberof persons (including the applicants) liable to carry out or contribute to thecarrying out of works to the building; and in any case where the interest by virtue of which the liabilityreferred to in paragraph (b) above arises is held jointly by two or morepersons, those persons shall be regarded as a single person in deciding forthe purposes of that paragraph the number of persons so liable. (4) The local housing authority shall then apportion the attributable cost toeach of the applicants— (a) in a case where the attributable cost is calculated by reference to theproportion mentioned in paragraph (a) of subsection (3) above, according tothe proportion that his liabilities to carry out or contribute to the carryingout of the relevant works bears to the aggregate of the applicants’liabilities mentioned in that paragraph; or (b) in a case where the attributable cost is calculated by reference to theproportion mentioned in paragraph (b) of that subsection, equally;and the amount of grant payable shall be the aggregate of the grants thatwould be payable to each of the applicants under section 109 above or, in thecase of a participating landlord, section 110 above if each of the applicantswas an individual applicant under section 109 above or, as the case may be,section 110 above in respect of his apportionment of the attributable costunder paragraph (a) or, as the case may be, paragraph (b) above.

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112 Duty to approve applications to render certain dwellings fit for humanhabitation.

(1) Subject to the preceding provisions of this Part, on receipt of anapplication for a renovation grant (other than an application in respect ofworks required for the provision of one or more dwellings by the conversionof a house or other building), the local housing authority shall determine,with respect to the dwelling, whether the dwelling is fit for humanhabitation. (2) In any case where the local housing authority— (a) determine under subsection (1) above that a dwelling is not fit for humanhabitation, and (b) consider that completion of the relevant works will cause the dwelling tobe fit for human habitation, and (c) are satisfied that completion of the relevant works is the mostsatisfactory course of action, then, subject to subsections (4) and (5) below, they shall approve theapplication so far as it relates to that dwelling. (3) If, in the case of any application, the local housing authority considerthat the relevant works include works for which assistance is available underPart XVI of the Housing Act 1985 (assistance for ownersof defective housing), they shall treat the application as if the relevantworks did not include those works. (4) If, in the case of any application, other than one to which section 113or section 115(6) below applies, the local housing authority consider thatthe relevant works include works in addition to those which will cause thedwelling to be fit for human habitation (“the additional works"), theyshall treat the application— (a) as an application under this section in so far as it relates to worksother than the additional works; and (b) as an application under section 115 below in so far as it relates to theadditional works; but, for the purposes of section 116 below and the subsequent provisionsof this Part, the two applications shall be treated as one application. (5) A local housing authority shall not be under a duty under this section toapprove an application— (a) which is accompanied by a certificate of intended letting and is not atenant’s application; or (b) if they expect, within the period of twelve months beginning with the dateof receipt of the application, to prepare a group repair scheme in respect ofa building which includes or comprises the dwelling. (6) Section 604 of the Housing Act 1985 (fitness for humanhabitation) applies for the purposes of this Part, as it applies for thepurposes of that Act. (7) In deciding whether they are satisfied as mentioned in subsection (2)(c)above, the local housing authority shall have regard to any guidance givenunder section 604A of the Housing Act 1985 and, for that purpose, theauthority shall treat any guidance given in respect of the serving of a repairnotice under section 189(1) of that Act as guidance given in respect of thecompletion of the relevant works.

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113 Duty to approve applications arising out of certain statutory notices.

(1) Subject to section 112(3) above and subsection (3) below, a local housingauthority shall approve an application falling within section 110(1) above (inthis section referred to as a “landlord’s application") if completion ofthe relevant works is necessary to comply with a notice or notices under oneor more of the following provisions— (a) section 189 of the Housing Act 1985 (repair notice requiring works torender premises fit for human habitation); (b) section 190 of that Act (repair notice in respect of premises in state ofdisrepair but not unfit); and (c) section 352 of that Act (notice requiring works to render premises fit fornumber of occupants). (2) Subject to section 112(3) above and subsection (3) below, a local housingauthority shall approve an application for a grant which is accompanied by anowner-occupation certificate (in this section referred to as an “owner-occupier’s application") if completion of the relevant works isnecessary to comply with a notice under section 190 of the Housing Act 1985. (3) If, in the case of a landlord’s application or an owner-occupier’sapplication, the local housing authority consider that the relevant worksinclude works (“the additional works") in addition to those necessary tocomply with a notice under section 189, section 190 or section 352 of theHousing Act 1985, they shall treat the application— (a) as an application to which this section applies in so far as it relatesto works other than the additional works; and (b) as an application to which section 115 below applies in so far as itrelates to the additional works.

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114 Approval of applications to provide certain facilities for the disabled.

(1) A local housing authority shall not approve an application for a disabledfacilities grant unless they are satisfied— (a) that the relevant works are necessary and appropriate to meet the needsof the disabled occupant; and (b) that it is reasonable and practicable to carry out the relevant works,having regard to the age and condition of the dwelling or building; and, in considering the matters specified in paragraph (a) above, alocal housing authority in Englandshall consult the welfare authority. (2) A local housing authority shall not approve an application for a disabledfacilities grant in respect of works to the common parts of a buildingcontaining one or more flats unless they are satisfied that the applicant hasa power or is under a duty to carry out the relevant works. (3) Subject to the preceding provisions of this Part, a local housingauthority shall approve an application for a disabled facilities grant if therelevant works are for any one or more of the following purposes— (a) facilitating access by the disabled occupant to and from the dwelling orthe building in which the dwelling or, as the case may be, flat is situated; (b) facilitating access by the disabled occupant to a room used or usable asthe principal family room; (c) facilitating access by the disabled occupant to, or providing for thedisabled occupant, a room used or usable for sleeping; (d) facilitating access by the disabled occupant to, or providing for thedisabled occupant, a room in which there is a lavatory, bath, shower orwashhand basin or facilitating the use by the disabled occupant of such afacility; (e) facilitating the preparation and cooking of food by the disabled occupant; (f) improving any heating system in the dwelling to meet the needs of thedisabled occupant or, if there is no existing heating system in the dwellingor any such system is unsuitable for use by the disabled occupant, providinga heating system suitable to meet his needs; (g) facilitating the use by the disabled occupant of a source of power, lightor heat by altering the position of one or more means of access to or controlof that source or by providing additional means of control; and (h) facilitating access and movement by the disabled occupant around thedwelling in order to enable him to care for a person who is normally residentin the dwelling and is in need of such care. (4) Subject to the preceding provisions of this Part, a local housingauthority may approve an application for a disabled facilities grant where therelevant works do not fall within subsection (3) above but are for the purposeof making the dwelling or building suitable for the accommodation, welfare oremployment of the disabled occupant. (5) In this section “the disabled occupant” means the disabled person for whosebenefit it is proposed to carry out any of the relevant works. (6) In this Part “disabled person” means— (a) a person who is registered in pursuance of arrangements made under section29(1) of the National Assistance Act 1948 (handicappedpersons’ welfare); . . . (b) any other person for whose welfare arrangements have been made under thatprovision or, in the opinion of the welfare authority, might be made under it. or (c) a person to whom section 17(11) of the Children Act 1989 (disabled children) applies. (7) For the purposes of this section, “welfare authority” means the council which is the localauthority for the purposes of the Local Authority SocialServices Act 1970 for the area in which the dwelling is situated.

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115 Discretionary approval of certain applications.

(1) Subject to the preceding provisions of this Part, a local housingauthority may approve an application for a grant, other than a common partsgrant, in any case where— (a) the relevant works go beyond or are other than those which will cause thedwelling to be fit for human habitation, but (b) the authority are satisfied that the relevant works are necessary for oneor more of the purposes set out in subsection (3) below. (2) Subject to the preceding provisions of this Part, a local housingauthority may approve an application for a common parts grant if the authorityare satisfied that the relevant works— (a) are necessary for one or more of the purposes set out in paragraphs (a)and (c) to (g) of subsection (3) below; or (b) will cause the building to meet the requirements mentioned in paragraphs(a) to (e) of section 604(2) of the Housing Act 1985. (3) The purposes referred to in subsection (1) above are— (a) to put the dwelling or building in reasonable repair; (b) to provide the dwelling by the conversion of a house or other building; (c) to provide adequate thermal insulation; (d) to provide adequate facilities for space heating; (e) to provide satisfactory internal arrangements; (f) to ensure that the dwelling or building complies with such requirementswith respect to construction or physical condition as may for the time beingbe specified by the Secretary of State for the purposes of this section; and (g) to ensure that there is compliance with such requirements with respect tothe provision or condition of services and amenities to or within the dwellingor building as may for the time being be so specified. (4) In the case of an application for an HMO grant, any reference insubsections (1) and (3) above to the dwelling shall be construed as areference to the house. (5) In considering whether to approve an application for a grant in exerciseof their discretion under subsection (1) or subsection (2) above, the localhousing authority shall have regard to the expected life of the building(taking account, where appropriate, of the effect of carrying out the relevantworks). (6) Subject to the preceding provisions of this Part, a local housingauthority may approve an application falling within section 110(1) above (inthis section referred to as a “landlord’s application") if— (a) the relevant works are for the purpose of rendering the dwelling or houseto which the application relates fit for human habitation, or (b) in the case of an application for an HMO grant, the relevant works are forthe purpose of enabling the house in question to meet one or more of therequirements in subsection (1A) of section 352 of the Housing Act 1985, and (in either case) the authority are satisfied that the relevant worksare necessary for the purpose concerned. (7) If in the opinion of the local housing authority the relevant works aremore or less extensive than is necessary to achieve the result referred to inparagraph (b) of subsection (2) above or any of the purposes set out insubsection (3) above or, as the case may be, the purpose falling withinsubsection (6) above, the authority may, with the consent of the applicant,treat the application as varied so that the relevant works are limited to or,as the case may be, include such works as seem to the authority to benecessary for that purpose. (8) In determining what is “reasonable repair”, in relation to a dwelling or buildingfor the purposes of subsection (3)(a) above, a local housing authority— (a) shall have regard to the age and character of the dwelling or building andthe locality in which it is situated; and (b) shall disregard the state of internal decorative repair. (9) In the exercise of the powers conferred by paragraphs (f) and (g) ofsubsection (3) above, the Secretary of State— (a) may specify requirements generally or for particular cases; and (b) may specify different requirements for different areas.

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116 Approval and refusal of applications.

(1) A local housing authority shall, by notice in writing, notify an applicantfor a grant as soon as reasonably practicable, and, in any event, not laterthan six months after the date of the application concerned, whether theapplication is approved or refused. (2) Where an authority decide to approve an application for a grant, theyshall determine— (a) which of the relevant works, taking into account any variation of theapplication under section 108(4)(a) or section 115(7) above, are eligible forgrant (in this Part referred to as “the eligible works”); (b) the amount of the expenses which in their opinion are properly to beincurred in the execution of the eligible works; (c) the amount of the costs which in their opinion have been or are to beproperly incurred with respect to preliminary or ancillary services andcharges; and (d) the amount of grant they have decided to pay in respect of the eligibleworks, taking into account paragraphs (b) and (c) above, subsection (5) belowand such of sections 109 to 115 above as may be applicable; and shall specify in the notice under subsection (1) above the eligibleworks, the total of the amounts referred to in paragraphs (b) and (c) above(in this Part referred to as “the estimated expense”) and the amount of the grant. (3) Where an application for a grant is approved, then, except— (a) with the consent of the Secretary of State, or (b) as provided by section 118(1) below, the local housing authority may not impose any condition in relation tothe approval or making of the grant, whether purporting to operate by way ofa condition of the grant, a personal covenant or otherwise; and the consentof the Secretary of State under paragraph (a) above may be given eithergenerally or in relation to any one or more specified authorities. (4) If, after an application for a grant has been approved, the authority aresatisfied that, owing to circumstances beyond the control of the applicant,— (a) the eligible works cannot be, or could not have been, carried out on thebasis of the amount of expenses referred to in subsection (2)(b) above, or (b) the eligible works cannot be, or could not have been, carried out withoutcarrying out additional works which could not have been reasonably foreseenat the time the application was made, the authority may re-determine the estimated expense and, subject tosubsection (5) below, the amount of the grant. (5) The Secretary of State may, if he thinks fit, by order prescribe a maximumamount, or a formula for calculating a maximum amount, of grant which a localhousing authority may pay in respect of an application for a grant; and anauthority may not pay any grant in excess of that amount.

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117 Payment of grants.

(1) Where the local housing authority have approved an application for agrant, they shall pay the grant, subject to subsection (3) below and tosections 133 and 134 below. (2) The grant may be paid— (a) in whole after the completion of the eligible works, or (b) in part by instalments as the works progress and the balance aftercompletion of the works. (3) The payment of a grant, or part of a grant, is conditional upon— (a) the eligible works or the corresponding part of the works being executedto the satisfaction of the authority; and (b) the authority being provided with an acceptable invoice, demand or receiptfor payment for the works and any preliminary or ancillary services andcharges in respect of which the grant or part of the grant is to be paid. (4) For the purposes of subsection (3) above an invoice, demand or receipt isacceptable if it satisfies the authority and is not given by the applicant ora member of his family. (5) Where a grant is paid by instalments, the aggregate of the instalmentspaid before the completion of the eligible works shall not at any time exceednine-tenths of the amount of the grant.

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118 Conditions as to completion of works.

(1) In approving an application for a grant, a local housing authority mayrequire as a condition of the grant that the eligible works are carried outin accordance with such specification as they determine. (2) Subject to subsection (3) below, it is a condition of the grant that theeligible works are carried out within twelve months from the date of approvalof the application concerned. (3) The authority may, if they think fit, extend the period of twelve monthsreferred to in subsection (2) above and may, in particular, do so where theyare satisfied that the eligible works cannot be, or could not have been,carried out without carrying out other works which could not have beenreasonably foreseen at the time the application was made.

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119 Condition as to availability for letting.

(1) This section applies where an application for a renovation grant or adisabled facilities grant, other than an application for a disabled facilitiesgrant in respect of works to the common parts of a building containing flats,has been approved by a local housing authority and the application for thegrant was accompanied by a certificate of intended letting. (2) It is a condition of the grant that throughout the initial period— (a) the dwelling will be let or available for letting as a residence, and notfor a holiday, on a tenancy which is not a long tenancy by the owner for thetime being of the dwelling to a person who is not connected with him, or (b) the dwelling will be occupied or available for occupation by a member ofthe agricultural population in pursuance of a contract of service andotherwise than as a tenant, disregarding any part of that period in which neither of the aboveparagraphs applies but the dwelling is occupied by a person who is a protectedoccupier under the Rent (Agriculture) Act 1976 or isoccupied under an assured agricultural occupancy, within the meaning of PartI of the Housing Act 1988. (3) For the purposes of subsection (2) above, a person is connected with theowner for the time being of a dwelling if,— (a) in a case where personal representatives or trustees are the owner, he isa person who under the will or intestacy or, as the case may be, under theterms of the trust concerned is beneficially entitled to an interest in thedwelling or to the proceeds of sale of the dwelling; and (b) in any other case, he is a member of the family of the owner. (4) It is also a condition of the grant— (a) that if, at any time within the initial period, the local housingauthority by whom the grant was paid serve notice on the owner of the dwellingrequiring him to do so, he will, within the period of twenty-one daysbeginning on the date on which the notice was served, furnish to the authoritya statement showing how the condition in subsection (2) above is beingfulfilled; and (b) that, if required to do so by the owner of the dwelling, any tenant of thedwelling will furnish the owner with such information as he may reasonablyrequire to enable him to comply with a notice served under paragraph (a)above. (5) A condition under subsection (2) or subsection (4) above is a local landcharge and shall, subject to subsection (9) and section 125 below, remain inforce with respect to the dwelling for a period of five years from thecertified date. (6) So long as a condition under subsection (2) or subsection (4) aboveremains in force with respect to a dwelling— (a) it is binding on any person, other than a local housing authority or registered social landlord, who is for the time being the owner of thedwelling; and (b) it is enforceable against all other persons having an interest in thedwelling as if it were a condition of the terms of every tenancy of, or ofproperty including, the dwelling. (7) In the event of a breach of a condition under subsection (2) or subsection(4) above, the local housing authority may demand that the owner for the timebeing of the dwelling pay a sum equal to the amount of the grant less so much(if any) of it as has already been repaid under section 120 below, togetherwith compound interest on that sum as from the certified date, calculated atsuch reasonable rate as the local housing authority may determine and withyearly rests. (8) The local housing authority may determine not to make such a demand or maydemand a lesser amount. (9) On satisfaction of the liability arising from a demand under this section,the conditions under subsections (2) and (4) above and subsection (2) ofsection 120 below shall cease to be in force with respect to the dwelling inquestion.

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120 Condition requiring repayment of grant in case of certain disposals wherecertificate of intended letting given.

(1) This section applies where an application for a renovation grant (otherthan a tenant’s application) has been approved by a local housing authorityand the application for the grant was accompanied by a certificate of intended letting. (2) It is a condition of the grant that— (a) where an owner makes a relevant disposal (other than an exempt disposal)of the dwelling with vacant possession within the initial period, he shall payto the local housing authority on demand the amount of the grant; and (b) where an owner makes such a disposal otherwise than with vacant possessionwithin the initial period, he shall pay to the authority on demand the amountof the grant, reduced by one-fifth for each complete year which has elapsedafter the certified date and before the disposal. (3) A condition under subsection (2) above is a local land charge and shall,subject to subsection (5) and section 125 below, remain in force with respectto the dwelling for a period of five years from the certified date. (4) So long as a condition under subsection (2) above remains in force withrespect to a dwelling it is binding on any person who is for the time beingan owner of the dwelling. (5) On satisfaction of the liability arising from a demand under this section,any condition under subsection (2) above shall cease to be in force withrespect to the dwelling in question. (6) The expressions “relevant disposal” and “exempt disposal” have the meanings assigned by section 124below.

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121 Condition requiring repayment of grant in case of certain disposals whereowner-occupation certificate given.

(1) This section applies where an application for a renovation grant has beenapproved by a local housing authority and the application for the grant wasaccompanied by an owner-occupation certificate. (2) It is a condition of the grant that, where an owner makes a relevantdisposal (other than an exempt disposal) of the dwelling within the period ofthree years beginning on the certified date, he shall pay to the authority ondemand the amount of the grant, reduced by one-third for each complete yearwhich has elapsed after the certified date and before the disposal. (3) A condition under subsection (2) above is a local land charge and shall,subject to subsections (5) to (7) and section 125 below, remain in force withrespect to the dwelling for a period of three years from the certified date. (4) So long as a condition under subsection (2) above remains in force withrespect to a dwelling it is binding on any person who is for the time beingan owner of the dwelling. (5) In any case where— (a) there is a relevant disposal of the dwelling concerned which is an exemptdisposal; or (b) there is a relevant disposal of the dwelling concerned (not being anexempt disposal) for no consideration or for consideration of an amount lessthan that either prescribed, or calculated in accordance with a formulaprescribed, by regulations made by the Secretary of State; any condition under subsection (2) above shall cease to be in force withrespect to the dwelling. (6) On satisfaction of the liability arising from a demand under this section,any condition under subsection (2) above shall cease to be in force withrespect to the dwelling in question. (7) In any case where— (a) within the period referred to in subsection (2) above an owner makes arelevant disposal of the dwelling concerned (not being an exempt disposal),and (b) the authority having the right to demand payment from the owner asmentioned in that subsection are satisfied that he is elderly or infirm andis making the disposal with the intention of going to live in shelteredhousing or a residential care home as his only or main residence, the authority may determine not to make any demand under subsection (2)above and, on the making of such a determination, any condition under thatsubsection shall cease to be in force with respect to the dwelling. (8) The expressions “relevant disposal” and “exempt disposal” have the meanings assigned by section 124below.

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122 Conditions relating to HMO grant.

(1) This section applies where an application for an HMO grant has beenapproved by a local housing authority; and in the following provisions of thissection “the house” means the house to which the eligible worksrelate. (2) It is a condition of the grant that, throughout the initial period, thehouse will be residentially occupied or available for residential occupation,under tenancies or licences, by persons who are not connected with the ownerfor the time being of the house. (3) The references in subsection (2) above to residential occupation do notinclude occupation for a holiday; and subsection (3) of section 119 aboveapplies for the purposes of subsection (2) above, substituting a reference toa house for any reference to a dwelling. (4) It is also a condition of the grant— (a) that if, at any time within the initial period, the local housingauthority by whom the grant was paid serve notice on the owner of the houserequiring him to do so, he will, within the period of twenty-one daysbeginning on the date on which the notice was served, furnish to the authoritya statement showing how the condition in subsection (2) above is beingfulfilled; and (b) that, if required to do so by the owner of the house, any tenant orlicensee in residential occupation of the house will furnish the owner withsuch information as he may reasonably require to enable him to comply with anotice served under paragraph (a) above. (5) In any case where— (a) there is, with respect to the house, a breach of a condition undersubsection (2) or subsection (4) above, or (b) at any time within the initial period the local housing authority havegiven a direction under section 354 of the Housing Act 1985 (power to limitnumber of occupants of house) with respect to the house and that direction hasnot been revoked or varied under section 357 of that Act, the authority may demand that the owner for the time being of the housepay a sum equal to the amount of the grant, together with compound intereston that sum as from the certified date, calculated at such reasonable rate asthe authority may determine and with yearly rests: but the authority maydetermine not to make such a demand or may demand a lesser amount. (6) It is also a condition of the grant that, if an owner makes a relevantdisposal of the house (other than an exempt disposal) within the initialperiod, he shall pay to the local housing authority on demand the amount ofthe grant. (7) A condition under any of subsections (2), (4) and (6) above (in thefollowing provisions of this section referred to as “an HMO condition”) is a local land charge and, subject tosubsection (9) and section 125 below, shall remain in force with respect tothe house for a period of five years from the certified date. (8) So long as an HMO condition remains in force with respect to a house itis binding on any person, other than a local housing authority or registered social landlord, who is for the time being an owner of the house. (9) On satisfaction of the liability arising from a demand under subsection(5) or subsection (6) above, any HMO condition shall cease to be in force withrespect to the house. (10) The expressions “relevant disposal” and “exempt disposal” have the meanings assigned by section 124below.

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123 Condition requiring repayment of grant on certain disposals in case oflandlord’s common parts application.

(1) This section applies where a landlord’s common parts application has beenapproved by a local housing authority. (2) It is a condition of the grant that where the applicant makes a relevantdisposal (other than an exempt disposal) of the building within the initialperiod, he shall pay to the local housing authority on demand the amount ofthe grant. (3) A condition under subsection (2) above is a local land charge and shall,subject to subsection (5) and section 125 below, remain in force with respectto the building for a period of five years from the certified date. (4) So long as a condition under subsection (2) above remains in force withrespect to a building it is binding on any person who is for the time beinga successor in title to that interest in the building by virtue of which,under section 105(2)(b) above, the applicant made his application. (5) On satisfaction of the liability arising from a demand under this section,any condition under subsection (2) above shall cease to be in force withrespect to the building in question. (6) The expressions “relevant disposal” and “exempt disposal” have the meanings assigned by section 124below.

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124 Meaning of relevant disposal and exempt disposal for the purposes ofsections 120 to 123.

(1) A disposal, whether of the whole or part of the dwelling, is a relevantdisposal for the purposes of sections 120 to 123 above if it is— (a) a conveyance of the freehold or an assignment of the lease, or (b) the grant of a lease (other than a mortgage term) for a term of more than21 years otherwise than at a rack rent. (2) For the purposes of subsection (1)(b) above it shall be assumed— (a) that any option to renew or extend a lease or sub-lease, whether or notforming part of a series of options, is exercised, and (b) that any option to terminate a lease or sub-lease is not exercised. (3) A disposal is an exempt disposal for the purposes of sections 120 to 123above if it is— (a) a disposal of the whole of the dwelling and a conveyance of the freeholdor an assignment of the lease and the person or each of the persons to whomit is made is a qualifying person as defined in subsection (4) below; (b) a vesting of the whole of the dwelling in a person taking under a will oron an intestacy; (c) a disposal of the whole of the dwelling in pursuance of any such order as is mentioned in subsection (4A) below; (d) a compulsory disposal as defined in section 161 of the Housing Act 1985 (meaning of compulsory disposal); (e) a disposal of property consisting of land included in the dwelling byvirtue of section 184 of that Act (land let with or used for the purposes ofthe dwelling-house); or (f) a disposal under which the interest of a person entitled to assistance byway of repurchase under Part XVI of that Act (assistance for owners ofdefective housing) is acquired in accordance with Schedule 20 to that Act. (4) A person is a qualifying person for the purposes of subsection (3)(a)above if— (a) in the case of an individual, he is— (i) the person, or one of the persons, by whom the disposal is made; (ii) the spouse, or former spouse, of that person or one of those persons; or (iii) a member of the family of that person or one of those persons; or (b) in the case of a company, it is an associated company of the company bywhom the disposal is made; and, for the purposes of paragraph (b) above, section 416 of the Income and Corporation Taxes Act 1988 (meaning of associatedcompany) shall apply in determining whether a company is an associated companyof another. (4A) The orders referred to in subsection (3)(c) above are orders under— (a) section 24 or 24A of the Matrimonial Causes Act 1973 (property adjustment orders or orders for the sale of property in connection with matrimonial proceedings), (b) section 2 of the Inheritance (Provision for Family and Dependants) Act 1975 (orders as to financial provision to be made from estate), (c) section 17 of the Matrimonial and Family Proceedings Act 1984 (property adjustment orders or orders for the sale of property after overseas divorce, &c.), or (d) paragraph 1 of Schedule 1 to the Children Act 1989 (orders for financial relief against parents); (5) For the purposes of sections 120 to 123 above, the grant of an optionenabling a person to call for a relevant disposal which is not an exemptdisposal shall be treated as such a disposal made to him.

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125 Repayment of grant.

(1) Any reference in this section to a “grant condition” is a reference to a condition for the timebeing in force under subsection (2) or subsection (4) of section 119 above,subsection (2) of section 120 above, subsection (2) of section 121 above, anyof subsections (2), (4) and (6) of section 122 above or subsection (2) ofsection 123 above. (2) If at any time while a grant condition remains in force with respect toa dwelling, house or building.— (a) the owner of the dwelling, house or building to which the conditionrelates pays the amount of the grant to the local housing authority by whomthe grant was made, or (b) a mortgagee of the interest of the owner in that dwelling, house orbuilding being a mortgagee entitled to exercise a power of sale, makes sucha payment, the grant condition and any other grant conditions shall cease to be inforce with respect to that dwelling, house or building. (3) In the case of a grant condition imposed on a landlord’s common partsapplication any reference in subsection (2) above to the owner of the buildingis a reference to the applicant or any such successor in title as is referredto in section 123(4) above. (4) An amount paid by a mortgagee under subsection (2)(b) above shall betreated as part of the sums secured by the mortgage and may be dischargedaccordingly. (5) The purposes authorised for the application of capital money by— (a) section 73 of the Settled Land Act 1925, (b) that section as applied by section 28 of the Law ofProperty Act 1925 in relation to trusts for sale, and (c) section 26 of the Universities and College Estates Act1925, include the making of payments under subsection (2) above.

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126 Renovation grants relating to two or more dwellings.

(1) Subject to subsection (2) below, no application for a renovation grant maybe made in respect of more than one dwelling. (2) A single application may be made for a renovation grant towards the costof works required for the provision of two or more dwellings by the conversionof a house or other building. (3) In the case of such a single application as is referred to in subsection(2) above— (a) for the purposes of section 106 above, a separate certificate may be givenin respect of each dwelling or in respect of any one or more of them; (b) if the application is accompanied by more than one certificate and atleast one of them is an owner-occupation certificate or a special certificatethe application shall be treated as falling within section 109 above and notwithin section 110 above; (c) each dwelling shall be treated separately for the purposes of sections 119to 125 above; and (d) the grant shall, for those purposes, be treated as apportioned equallybetween each of the dwellings, and any reference in those sections to theamount of the grant shall be construed accordingly.

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127 Group repair schemes and persons eligible to participate.

(1) In accordance with a scheme under this section prepared by a local housingauthority and approved by the Secretary of State, the authority may, with theconsent of the persons participating in the scheme, enter into agreements tosecure the carrying out of such external works to qualifying buildings towhich the scheme relates as will ensure that, on completion of the works, theexterior of those buildings will be in reasonable repair; and in this Partsuch a scheme is referred to as a “group repair scheme". (2) The approval of the Secretary of State under subsection (1) above may begiven either to a specific scheme or generally to schemes which fulfil suchcriteria as he may from time to time specify; and any such approval may bemade conditional upon compliance with requirements specified by him. (3) Every person who, at the date of the approval of the scheme, has anowner’s interest in a dwelling or other premises comprised in a building towhich a group repair scheme relates and who fulfils the conditions insubsection (5) below is eligible to participate in the scheme as an assistedparticipant unless that person is— (a) the council of a county, county boroughdistrict or London borough, the Common Councilof the City of London or the Council of the Isles of Scilly; (b) a development corporation or the Commission for the New Towns; (c) the Development Board for Rural Wales; (d) a housing action trust; or (e) a registered social landlord. (4) Any of the bodies specified in paragraphs (a) to (e) of subsection (3)above which has an owner’s interest in a dwelling or other premises comprisedin a building to which a group repair scheme relates is eligible toparticipate in the scheme as an unassisted participant. (5) The conditions referred to in subsection (3) above are— (a) that, as respects the dwelling or other premises in which he has anowner’s interest, the person concerned either is able to give possession ofany part of the building to which external works are proposed to be carriedout or has the consent of the occupier of that part to the carrying out ofthose works; and (b) that, if the owner’s interest which he has is an interest in a dwellingand this paragraph is not excluded by subsection (6) below, he gives acertificate of future occupation which falls within subsection (2) orsubsection (4) of section 106 above; and (c) that, if the owner’s interest which the person concerned has is aninterest in a house in multiple occupation and that person is not a charityor the trustee of a charity, he gives a certificate under section 106(7)above. (6) Paragraph (b) of subsection (5) above does not apply if— (a) the person concerned is a charity or the trustee of a charity; or (b) the dwelling is the residence house of an ecclesiastical benefice. (7) If the Secretary of State so directs in the case of any scheme or anydescription of scheme, such of the provisions of this section and sections 128to 130 below as are specified in the direction shall not apply in relation tothat scheme or, as the case may be, in relation to a scheme of thatdescription. (8) Section 99 above applies to the power to give directions under subsection(7) above as it applies to a power to give directions under Part VII of thisAct.

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128 Qualifying buildings and external works, etc.

(1) A building is not a qualifying building in relation to a group repairscheme unless, at the time the scheme is prepared, the whole or some part ofthe exterior of the building is not in reasonable repair and that lack ofreasonable repair affects at least 75 per cent. of the houses contained in thebuilding. (2) Every group repair scheme shall relate to at least one qualifying building(in this section referred to as “the primary building”) which was constructed so as tocomprise not less than four separate houses and may also relate to one or moreother qualifying buildings if the following conditions are fulfilled withrespect to each of them— (a) the building was constructed so as to comprise at least one house and iscontiguous or adjacent to the primary building; and (b) the exterior of the building is not in reasonable repair and is in needof works similar to those required to the exterior of the primary building;and (c) carrying out the works to the building and the primary building at thesame time is the most effective way of securing the repair of each of them. (3) The question whether a building was constructed so as to comprise not lessthan four houses or at least one house shall be determined according to theconfiguration of the building at the date of its construction. (4) For the purposes of this section— (a) a terrace of houses shall be regarded as one building except that, if itappears appropriate to a local housing authority to do so, having regard inparticular to the requirements of subsection (1) above, they may treat partonly of the terrace as a building; and (b) if, apart from this paragraph, one building would be regarded ascontaining two or more purpose-built flats and one or more houses, the partof the building containing the purpose-built flats and the part or parts ofthe building containing the houses shall be regarded as separate buildings. (5) In relation to a group repair scheme, “external works” are works to any part of the exterior of abuilding to which the scheme relates and, so far only as may be necessary togive satisfactory effect to such works, additional works to other parts of thebuilding. (6) For the purposes of this Part, the exterior of a building means— (a) any part thereof which is exposed to the elements of wind and rain orotherwise faces into the open air (including, in particular, roofs, chimneys,walls, doors, windows, rainwater goods and external pipework); and (b) the curtilage of the building, including any wall within the curtilagewhich is constructed as a retaining wall or otherwise to protect the structureof the building; and, in relation to works to any part of the curtilage referred to inparagraph (b) above, the reference in subsection (5) above to additional worksto other parts of the building includes a reference to additional works onland outside the curtilage. (7) In this section— (a) “house” means a dwelling which is not a flat (and,accordingly, does not include a house constructed as a house in multipleoccupation); and (b) a “purpose-built flat” means a part of a building which, at thedate of the construction of the building, was constructed as a flat. (8) For the purposes of this Part, unless the exterior of a building issubstantially free from rising or penetrating damp, it shall not be regardedas in reasonable repair.

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129 Contributions by participants and limitations on works.

(1) Those persons who are eligible to participate in a group repair scheme andwho participate in the scheme by signifying consent (in this section referredto as “scheme consent”), in accordance with the terms of thescheme, to the proposals to carry out the external works specified in thescheme shall be liable, subject to subsection (2) below, to contribute to thecost, as notified to them under the scheme, of such of those works as relateto the house or other premises in which they have an interest at a ratedetermined in accordance with this section. (2) For the purposes of subsection (1) above, “house” includes premises which were originally constructedas a house but which, by the time the group repair scheme is prepared, havebeen divided so as to form one or more flats, with or without other premises;and, in the case of a house which has been so divided, the cost of such of theexternal works as relate to the house shall be apportioned between the severalparts into which the house has been divided in such way as may be agreedbetween the persons with owner’s interests in those parts or, in default ofagreement, equally. (3) In the case of a person who participates in a scheme as an unassistedparticipant, the rate of contribution shall be 100 per cent. (4) In the case of a person who participates in a scheme as an assistedparticipant but whose owner’s interest in the part of the qualifying buildingin question is an interest in premises other than a house or flat, the rateof contribution, subject to subsection (5) below, shall be— (a) 25 per cent. in a case where the qualifying building is in a renewal area;and (b) 50 per cent. in any other case; and in this subsection “house” includes a house in multiple occupation. (5) The Secretary of State may by order amend paragraph (a) or paragraph (b)of subsection (4) above so as to specify a percentage different from thatwhich applied before the coming into force of the order. (6) In the case of any other person who participates in a scheme as anassisted participant, the rate of contribution shall be such percentage as maybe determined by the local housing authority, being a percentage between niland that which would be appropriate if subsection (4) above applied; and, inmaking their determination under this subsection in the case of any person,the authority shall have regard— (a) to the way in which section 109 or section 110 above would apply in hiscase if he were an applicant for a renovation grant or, as the case mayrequire, an HMO grant; and (b) to any guidance given by the Secretary of State for the purposes of thissection; and section 99 above applies to the power to give guidance as mentionedin paragraph (b) above as it applies to any power to give guidance under PartVII of this Act. (7) Except as provided by subsection (8) below, no external works shall becarried out to a part of a building which consists of a house, flat or otherpremises in respect of which no person eligible to participate has signifiedscheme consent. (8) Subsection (7) above does not apply— (a) to works carried out to a part of a building in respect of which there isno person (or no ascertainable person) eligible to participate in the scheme;or (b) to works which— (i) are carried out to a part of a building in respect of which the personeligible to participate consents to their being carried out but has notsignified scheme consent (and, accordingly, is not liable to contribute); and (ii) it is necessary to carry out in order satisfactorily to carry out anyexternal works specified in the scheme to another part of the building inrespect of which a person eligible to participate has signified schemeconsent.

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130 Payment of balance of costs in case of certain disposals.

(1) When the external works specified in a group repair scheme are completed,the local housing authority shall, for the purposes of this section, send toeach assisted participant a certificate specifying the date on which the workswere completed to their satisfaction; and in subsection (2) below that dateis referred to as “the completion date”. (2) It shall be a condition of participation in a group repair scheme as anassisted participant that if, before the expiry of the period of three yearsbeginning with the completion date, the assisted participant makes a relevantdisposal (other than an exempt disposal) of the dwelling or other premises inwhich he had an owner’s interest at the date of the approval of the scheme,then, subject to subsection (6) below, he shall pay to the local housingauthority on demand the outstanding balance determined in accordance withsubsections (3) and (4) below or such lesser amount, being not less thanone-third of that outstanding balance, as the authority may specify in thedemand. (3) Subject to subsection (4) below, in the case of any assisted participant,the outstanding balance referred to in subsection (2) above is the differencebetween— (a) the cost, as notified to him under the scheme, of such of the externalworks specified in the scheme as relate to the house or other premises inwhich his owner’s interest subsisted; and (b) the amount of the contribution in respect of that cost paid by him byvirtue of section 129 above. (4) If, in the case of any assisted participant, the cost of the externalworks relating to the house in which he had an owner’s interest falls to beapportioned as mentioned in subsection (2) of section 129 above, the referencein subsection (3) above to the cost of the works relating to the house shallbe construed as a reference to that part of the cost which is apportioned tothe part of the house in which his owner’s interest subsisted. (5) Section 124 above applies for the purposes of this section as it appliesfor the purposes of sections 120 to 123 above, except that for any referencein that section to the dwelling there shall be substituted a reference to thehouse (or part of a house) or other premises in which the assisted participanthad an owner’s interest. (6) The duty of an assisted participant under subsection (2) above shall ceaseto apply if he makes such a disposal as is mentioned in that subsection eitherfor no consideration or for consideration of an amount less than that eitherprescribed, or calculated in accordance with a formula prescribed, byregulations made by the Secretary of State. (7) In subsections (3) to (5) above “house” shall be construed in accordance with section 129(2)above.

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131 Assistance for provision of minor works to dwellings.

(1) Subject to the provisions of regulations under subsection (3) below, onan application made to them for the purpose, a local housing authority maygive assistance as mentioned in subsection (2) below— (a) for the provision or improvement of thermal insulation in a dwelling; (b) for the carrying out of works of repair to a dwelling which, at the timeof the application, is included in a clearance area, within the meaning ofsection 289 of the Housing (c) to an elderly owner or tenant of a dwelling forthe carrying out of works of repair, improvement or adaptation; (d) for the carrying out of works to adapt a dwelling to enable an elderlyperson who is not an owner or tenant of the dwelling but who is or proposesto be resident in the dwelling to be cared for; or (e) for any other purpose specified by order made by the Secretary of State. (2) Assistance under this section may be in the form of a grant or theprovision of materials but— (a) the total amount or value of the assistance given on any one applicationshall not exceed £1,000 or such other sum as may be determined for thepurposes of this paragraph in accordance with regulations under subsection (3)below; (b) the total amount or value of assistance given under this section in anyperiod of three years in respect of any one dwelling shall not exceed£3,000 or such other sum as may be determined for the purposes of thisparagraph in accordance with regulations under subsection (3) below; and (c) no assistance may be given under this section in respect of works if theyare or are included in the eligible works in relation to an application fora grant which has been approved under the preceding provisions of this Part. (3) The Secretary of State may by regulations make provision for thedetermination of sums for the purposes of paragraphs (a) and (b) of subsection(2) above and, in addition, may for the purposes of this sectionspecify— (a) the manner in which an application for assistance is to be made and thecontent of such an application; (b) the descriptions of dwellings and works in respect of which assistance maybe given; (c) the descriptions of persons to whom assistance may be given; (d) the procedure for dealing with applications under subsection (1) above andfor ensuring that works are carried out to any standard specified in theregulations; and (e) the way in which the amount of assistance to be given on any applicationis to be calculated, taking account, in such manner and to such extent as maybe determined under the regulations, of the financial circumstances of theapplicant.

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132 Contributions by the Secretary of State.

(1) The Secretary of State may pay contributions to local housing authoritiestowards such expenditure incurred by them under this Part as he may determine. (2) The rate or rates of the contributions, the calculation of the expenditureto which they relate and the manner of their payment shall be such as may bedetermined by the Secretary of State with the consent of the Treasury. (3) A determination under subsection (1) or subsection (2) above may bemade— (a) generally, or (b) with respect to a particular local housing authority or description ofauthority, including a description framed by reference to authorities in aparticular area, and may make different provision in relation to different cases ordescriptions of case. (4) Subsections (3) to (6) of section 96 above shall apply in relation to thissection, substituting a reference to subsection (1) or, as the case may be,subsection (2) above for any reference to the corresponding subsection of thatsection. (5) In the application of section 516 of the Housing Act1985 (contributions by Secretary of State towards expense of grants under PartXV of that Act) in relation to a case where— (a) an application under section 461 of that Act has been approved by thelocal housing authority after 14th June 1989, and (b) the date which is the certified date, as defined in section 499(3) of thatAct, in relation to the works to which that application relates falls on orafter the day appointed under section 195 below for the coming into force ofsection 101 above, for subsection (2) there shall be substituted the followingsubsection— (2) In the case of any grant, the contribution— (a) shall be equal to a percentage of the amount of the grant determined undersubsections (3) and (4) below; and (b) shall be payable in one sum or by two or more instalments, according asthe Secretary of State may determine.

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133 Persons entitled to grants.

(1) In relation to a grant or an application for a grant, references in thepreceding provisions of this Part, and in subsection (2) below, to theapplicant shall be construed in relation to any time after his death as areference to his personal representatives. (2) Where an application for a grant is approved but before the certified datethe applicant ceases to be a person entitled to apply for a grant of thatdescription— (a) in the case of any grant, other than a common parts grant, no grant shallbe paid or, as the case may be, no further instalments shall be paid, and (b) in the case of a common parts grant, other than one made on a tenants’common parts application, the local housing authority may refuse to pay thegrant or any further instalment, and the authority may demand that any instalment of the grant which hasbeen paid be repaid forthwith, together with interest from the date on whichit was paid until repayment at such reasonable rate as the authority maydetermine. (3) For the purposes of subsection (2) above an applicant ceases to be aperson entitled to apply for a grant, other than a common parts grant,— (a) if he ceases to have the owner’s interest by virtue of which the conditionin section 104(1)(a) above was (or was treated as) fulfilled, or (b) if he ceases to be a tenant of the dwelling, or (c) if he, or a member of his family, ceases to have the intention specifiedin a certificate under subsection (2), subsection (3) or subsection (4) (asthe case may be) of section 106 above, or (d) if, in the case of an applicant for an HMO grant, he ceases to have theintention specified in a certificate under section 106(7) above. (4) For the purposes of subsection (2) above an applicant whose applicationis a landlord’s common parts application ceases to be a person entitled toapply for a common parts grant— (a) if he ceases to have a duty or power to carry out the relevant works; or (b) if he ceases to have such an interest in the building as is referred to in paragraph (a) or paragraph (b) of section 105(4) above.

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134 Cases in which grants may be re-calculated, withheld or repaid.

(1) Where an application for a grant has been approved by the local housingauthority, subsection (2) below applies in any case where— (a) the eligible works are not completed to the satisfaction of the authoritywithin the period specified under subsection (2) of section 118 above, or suchextended period as they may allow under subsection (3) of that section; or (b) the authority ascertain that the aggregate of the cost of completing theeligible works and the costs incurred with respect to preliminary or ancillaryservices and charges, is or is likely to be lower than the estimated expense;or (c) the authority ascertain that without their knowledge the eligible workswere started before the application was approved and the application wasneither— (i) one which they were required to approve by virtue of section 112 above ina case where completion of the relevant works was necessary to comply with anotice under section 189 of the Housing Act 1985 (repairnotice requiring works to render premises fit for human habitation); nor (ii) one which they were required to approve by virtue of section 113 above. (2) Where this subsection applies, the authority may— (a) refuse to pay the grant or any further instalment of grant which remainsto be paid; or (b) make a reduction in the grant which, in a case falling within subsection(1)(b) above, is to be a reduction proportionate to the reduction in theestimated expense; and may demand repayment by the applicant forthwith, in whole or part,of the grant or any instalment of the grant paid, together with interest atsuch reasonable rate as the authority may determine from the date of paymentuntil repayment.

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135 Power of local housing authority to carry out works which would attractgrant.

(1) A local housing authority may by agreement with a person having therequisite interest execute at his expense— (a) any works towards the cost of which a grant under this Part is payable ormight be paid on an application duly made and approved; and (b) any further works which it is in their opinion necessary or desirable toexecute together with the works mentioned in paragraph (a) above. (2) Except in the case of a common parts grant, the “requisite interest” means an owner’s interest in everyparcel of land on which the works are to be carried out or, in a case where(if an application was made) section 104(4) above might apply, in part onlyof the land concerned. (3) In the case of a common parts grant, the reference in subsection (1) aboveto a person having the requisite interest is a reference to the personwho— (a) has a power or duty to carry out the relevant works; and (b) has such an interest in the building or in a flat in the building as isreferred to in subsection (4) of section 105 above.

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136 Parsonages, charities etc.

Sections 104 and 106 above do not apply to— (a) an application for a grant in respect of glebe land or the residence houseof an ecclesiastical benefice; and (b) an application for a grant made by a charity or on behalf of a charity bythe charity trustees of the charity.

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137 Orders and regulations.

(1) Orders under this Part— (a) may make different provision with respect to different cases ordescriptions of cases, including different provision for different areas; and (b) shall be made by statutory instrument which shall be subject to annulmentin pursuance of a resolution of either House of Parliament. (2) Orders and regulations under this Part may contain such incidental,supplemental or transitional provisions as the Secretary of State considersappropriate.

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138 Interpretation of Part VIII.

(1) In this Part, except where the context otherwise requires,— “agricultural population” means— persons whose employment or latest employment is or was employment inagriculture or in an industry mainly dependent on agriculture, and the dependents of those persons; and for this purpose “agriculture” includes dairy-farming and poultry-farming andthe use of land as grazing, meadow or pasture land, or orchard or osier landor woodland, or for market gardens or nursery grounds; “certified date” means the date certified by the localhousing authority as the date on which the execution of the eligible works iscompleted to their satisfaction; “charity” does not include a registered social landlordbut, subject to that, has the same meaning as in the the Charities Act 1993; “common parts”, in relation to a building, includes thestructure and exterior of the building and common facilities provided, whetherin the building or elsewhere, for persons who include the occupiers of one or more flats in the building; “disabled person” has the meaning assigned by section 114(6)above; “dwelling” means a building or part of a building occupiedor intended to be occupied as a separate dwelling, together with any yard,garden, outhouses and appurtenances belonging to it or usually enjoyed withit; “the eligible works” shall be construed in accordance withsection 116(2)(a) above; “the estimated expense” shall be construed in accordance withsection 116(2) above; “flat”, in relation to a building, means a dwelling which isa separate set of premises, whether or not on the same floor, dividedhorizontally from some other part of the building; “group repair scheme” has the meaning assigned by section127(1) above; “house in multiple occupation” has the same meaning as inPart VII above; “improvement” includes alteration and enlargement; “initial period” means the period of five years beginningwith the certified date; “landlord’s common parts application” has the meaningassigned by section 105(2)(b) above; “local housing authority” has the same meaning as in the Housing Act 1985; “long tenancy” has the meaning assigned by section 115 ofthat Act; “occupying tenant” has the meaning assigned by section105(2)(a) above; “owner”, in relation to a dwelling, means the personwho— (a) is for the time being entitled to receive from a lessee of the dwelling(or would be so entitled if the dwelling were let) a rent of not less thantwo-thirds of the net annual value of the dwelling; and (b) is not himself liable as lessee of the dwelling, or of property whichincludes the dwelling, to pay such a rent to a superior landlord; and, in relation to a house in multiple occupation, “owner” has the same meaning as in Part XI of the Housing Act1985; “owner’s interest” has the meaning assigned by section 104(2)above; “participating landlord” has the meaning assigned by section105(3) above; “preliminary or ancillary services and charges” has themeaning assigned by section 102(3) above; “prescribed” means prescribed by regulations made by theSecretary of State; “registered social landlord” has the same meaning as in the Housing Act 1985 (see section 5(4)and (5) of that Act); “the relevant works” has the meaning assigned by section102(2)(a) above; “tenancy” includes a sub-tenancy and an agreement for atenancy or sub-tenancy; “tenant” includes a sub-tenant and any person deriving titleunder the original tenant or sub-tenant; “tenants’ common parts application” has the meaning assignedby section 105(2)(c) above. (2) Section 113 of the Housing Act 1985 (meaning of “members of a person’s family") shall apply in determining whether aperson is a member of another’s family for the purposes of this Part.

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139 Local Government Finance Act 1988: amendments.

Schedule 5 to this Act (which amends the Local Government Finance Act 1988) shall have effect.

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140 Scottish non-domestic rates: interim provisions.

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141 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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142 Powers to vary incidence of standard community charge: Scotland.

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143 Reduced liability for personal community charges: Scotland.

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145 Amendment of Abolition of Domestic Rates Etc. (Scotland) Act 1987 andother enactments: Scotland.

Schedule 6 to this Act (which amends the Abolition of Domestic Rates Etc. (Scotland) Act 1987 and other enactments) shall have effect.

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146 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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147 Adjustment of block grant.

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148 Rate support grant, 1985/86.

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149 Statutory references to rating.

(1) In the case of a provision which is made by or under any enactment and refers to a rate or a rateable value or any other factor connected with rating, the Secretary of State may make regulations— (a) providing that the reference shall instead be to some other factor (whether or not connected with rating); or (b) providing for the factor to be amended (whether by limiting its operation or in any other way); and this section shall have effect in place of section 119 of the Local Government Finance Act 1988. (2) Regulations under this section— (a) may make provision in such manner as the Secretary of State thinks fit (whether by amending provisions or otherwise); (b) may provide for a factor expressed by reference to valuation, rent, a premium, the length of a lease, anything connected with rating, or any other matter whatever; (c) may provide for a factor expressed by reference to a combination of matters (whether expressed in terms of a formula or otherwise); (d) may provide for a factor which includes a method of adjustment (whether by reference to indexation or otherwise); (e) may make provision with respect to the resolution of disputes (whether by a court or otherwise); and (f) may contain such supplementary, incidental, consequential or transitional provisions as appear to the Secretary of State to be necessary or expedient. (3) A factor expressed by reference to rent may be by reference to ground rent, rent of premises at a market rate, rent as limited by law, or otherwise. (4) Nothing in this section shall be construed as limiting the power conferred by section 14 of the Interpretation Act 1978 to revoke, amend or vary regulations previously made under this section. (5) In this section “enactment” means an enactment contained in Schedule 10 to this Act, or in any other Act whether passed before or in the same Session as this Act; and for this purpose “Act” includes a private or local Act. (6) Without prejudice to the generality of the powers conferred by this section, section 37 of the Landlord and Tenant Act 1954 (which provides for compensation by reference to rateable values) shall be amended in accordance with Schedule 7 to this Act.

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150 Power to allow charges.

(1) The Secretary of State may make regulations providing that a charge may be imposed in respect of anything— (a) which is done by any relevant authority or by any relevant authority of a prescribed description, (b) which is prescribed or falls within a prescribed description, (c) in respect of which there is no power or duty to impose a charge apart from the regulations, and (d) which is not done in the course of exercising an excepted function. (2) The regulations may include such provision as the Secretary of State sees fit as regards charges for which the regulations provide; and nothing in subsections (3) to (5) below or section 190(1) below is to prejudice this. (3) The regulations— (a) may be made as regards services rendered, documents issued, or any other thing done by an authority (whether in pursuance of a power or a duty); (b) may provide that the amount of a charge (if imposed) is to be at the authority’s discretion or to be at its discretion subject to a maximum. (4) Where the regulations provide that a charge may not exceed a maximum amount they may— (a) provide for one amount, or a scale of amounts to cover different prescribed cases; (b) prescribe, as regards any amount, a sum or a method of calculating the amount. (5) The regulations may include such supplementary, incidental, consequential or transitional provisions as appear to the Secretary of State to be necessary or expedient. (6) No regulations may be made under this section unless a draft of them has been laid before and approved by a resolution of each House of Parliament.

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151 Power to amend provisions about charges.

(1) Subject to subsection (4) below, this section applies in the case of an existing provision to the extent that the provision allows (as opposed to requires) a charge to be imposed in respect of anything which is done by relevant authorities (or any of them) and which is not done in the course of exercising an excepted function. (2) The Secretary of State may make regulations— (a) repealing the provision concerned to the extent that it so provides, (b) amending the provision to that extent, or (c) repealing the provision to that extent and replacing it with new provisions; and subsection (6) of section 150 above applies in relation to regulations under this section as it applies in relation to regulations under that section. (3) For the purposes of subsection (1) above— (a) the charge may be expressed in terms of making a charge, paying a fee, or otherwise; (b) the charge may relate to services rendered, documents issued, or any other thing done by a relevant authority (whether in pursuance of a power or a duty). (4) A charge does not fall within subsection (1) above if— (a) it is one whose proceeds fall (or part of whose proceeds falls) to be paid into the Consolidated Fund; or (b) it is a charge amounting to local taxation. (5) Regulations under subsection (2) above may not require the imposition of a charge; and subsection (6) below shall have effect subject to this. (6) The regulations may include such provision as the Secretary of State sees fit as regards charges; and nothing in subsections (7) to (9) below or section 190(1) below is to prejudice this. (7) The regulations may provide that the amount of a charge (if imposed) is to be at the authority’s discretion or to be at its discretion subject to a maximum. (8) Where the regulations provide that a charge may not exceed a maximum amount they may— (a) provide for one amount, or a scale of amounts to cover different prescribed cases; (b) prescribe, as regards any amount, a sum or a method of calculating the amount. (9) The regulations— (a) may confer discretion as to the amount in a case where an existing provision confers none (or vice versa); (b) may, in a case where an existing provision confers a discretion as to the amount, confer a different one; and (c) may include such supplementary, incidental, consequential or transitional provisions as appear to the Secretary of State to be necessary or expedient. (10) For the purposes of this section an existing provision is a provision of an Act passed before, or in the same Session as, this Act. (11) In this section “Act” includes a private or local Act.

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