Housing Act 1988 (c. 50)

(The document as of February, 2008)

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(3) In any case where a tenancy is held by two or more persons jointly, those persons shall be regarded as a single tenant for the purposes of subsection (2) above and, accordingly, any notice given in response to the consultation under section 102 above shall be of no effect for the purposes of subsection (2) above unless it is given by or on behalf of all the joint tenants.

(4) A notice under subsection (1) above shall contain--

(a) a list of the names and addresses of tenants to whom section 102 above applies (if any) who have given notice as mentioned in subsection (2)(b) above;

(b) a list of the houses (if any) which are, by virtue of regulations under section 100 above, to be excluded from the acquisition;

(c) a list of flats (if any) of which the applicant is required, by virtue of such regulations, to grant leases to the landlord and a statement of the proposed terms of those leases;

(d) such information as may be necessary to show how the lists mentioned in paragraphs (a), (b) and (c) above were established; and

(e) the price payable for the property to be acquired (disregarding any reduction by virtue of such a covenant as is referred to in subsection (1) above) or, as the case may be, the disposal cost attributable to that property.

(5) Within two weeks of service of the notice under subsection (1) above, the landlord shall notify the applicant in writing of any matters stated in that notice which it does not accept.

(6) Where a notice has been served under subsection (1) above, every tenant to whom section 102 above applies and who has not given notice as mentioned in subsection (2)(b) above shall be taken to have accepted, and to have given consideration for, any offer which--

(a) relates to the terms on which, after the acquisition, he is to occupy the dwelling-house occupied by him on the relevant date;

(b) was made to him by the applicant either in the course of the consultation required by subsection (1) of section 102 above or otherwise before the end of the period referred to in that subsection; and

(7) Regulations prescribing any of the matters referred to in subsection (1) above shall also make provision with respect to the determination of the amounts which are to be payable on the occasion of prescribed disposals; and the amount of any reduction in the price payable for the property to be acquired which is attributable to such a covenant as is referred to in that subsection shall be determined by the district valuer.

104 Duty to complete and consequences of completion

(1) Where the applicant has served on the landlord a notice under section 103(1) above, then, as soon as any dispute as to any matters stated in that notice has been determined and, where appropriate, any determination has been made under section 103(7) above--

(a) the landlord shall make to the applicant a grant of the property included in the acquisition for an estate in fee simple absolute, but subject to any rights to be retained by the landlord; and

(b) the applicant shall grant to the landlord leases of any flats of which he is required to grant leases by regulations under section 100 above.

(2) The terms of any grant or lease under subsection (1) above shall comply with such requirements as may be prescribed.

(3) The duties imposed by the preceding provisions of this section are enforceable by injunction.

(4) Notwithstanding anything in section 141 of the [1925 c. 20.] Law of Property Act 1925 (rent and benefit of lessee's covenants to run with the reversion) any rent or other sum which--

(a) arises under a tenancy of any property included in the acquisition, and

(b) falls due before the date of the grant under subsection (1) above,

shall continue to be recoverable by the landlord to the exclusion of the applicant and of any other person in whom the reversion on the tenancy may become vested.

(5) Without prejudice to the application of Part VIII of the [1980 c. 65.] Local Government, Planning and Land Act 1980 (capital expenditure of local authorities) to the price received by the landlord on the disposal (as mentioned in subsection (1)(a) above) of the property included in the acquisition, where there is a disposal cost attributable to that property any payments made by the landlord in respect of that cost shall be prescribed expenditure for the purposes of that Part.

Subsequent disposals

105 Consent required for subsequent disposals

(1) A person who acquires any property under this Part (in this section referred to as "the new landlord") shall not dispose of it except with the consent of the Secretary of State; but nothing in this subsection shall apply in relation to an exempt disposal, as defined in subsection (7) below.

(2) Where an estate or interest in property acquired by the new landlord has been mortgaged or charged, the prohibition in subsection (1) above on disposal of the property without consent applies also to a disposal by the mortgagee or chargee in exercise of a power of sale or leasing, whether or not the disposal is in the name of the new landlord.

(3) In any case where--

(a) by operation of law or by virtue of an order of a court property which has been acquired by the new landlord passes or is transferred to another person, and

(b) that passing or transfer does not constitute a disposal for which consent is required under subsection (1) above,

this section (including, where there is more than one such passing or transfer, this subsection) shall apply as if the other person to whom the property passes or is transferred were the new landlord.

(4) Any consent for the purposes of subsection (1) above may be given either unconditionally or subject to conditions; but, before giving any such consent, the Secretary of State--

(a) shall satisfy himself that the person who is seeking the consent has taken appropiate steps to consult every tenant of the whole or any part of the property proposed to be disposed of; and

(b) shall have regard to the responses of any such tenants to that consultation.

(5) If, apart from subsection (6) below, the consent of the Housing Corporation or Housing for Wales would be required under section 9 of the [1985 c. 69.] Housing Associations Act 1985 (control of dispositions of land by housing associations) for a disposal to which subsection (1) above applies, the Secretary of State shall consult that body before giving his consent in respect of that disposal for the purposes of that subsection.

(6) No consent shall be required under the said section 9 for any disposal in respect of which consent is given in accordance with subsection (5) above.

(7) In this section an "exempt disposal" means--

(a) the grant of a lease pursuant to such a requirement as is referred to in section 100(1)(b) above;

(b) the disposal of a dwelling-house to a person having the right to buy it under Part V of the 1985 Act (whether the disposal is in fact made under that Part or otherwise);

(d) the disposal of an easement or rentcharge;

(e) the disposal of an interest by way of security for a loan;

(f) the grant of a secure tenancy or what would be a secure tenancy but for any of paragraphs 2 to 12 of Schedule 1 to the 1985 Act;

(g) the grant of an assured tenancy, within the meaning of Part I of this Act, or what would be such a tenancy but for any of paragraphs 4 to 8 of Schedule 1 to this Act; and

(h) the transfer of an interest which is held on trust where the disposal is made in connection with the appointment of a new trustee or in connection with the discharge of any trustee.

(8) In this section references to disposing of property include references to--

(a) granting or disposing of any interest in property;

(b) entering into a contract to dispose of property or to grant or dispose of any such interest; and

Supplemental

106 Service of information, advice and assistance

(1) The Corporation may provide in connection with this Part a service of information, advice and assistance to, and for the benefit of,--

(a) persons who have been approved or are considering applying for approval under section 94 above; and

(b) persons who are tenants of public sector landlords.

(2) The Corporation may make charges for information, advice and assistance provided under this section otherwise than to persons falling within subsection (1)(b) above.

(3) The powers conferred on the Corporation by this section may be exercised by the Housing Corporation and Housing for Wales acting jointly.

107 Power of Corporation to provide legal assistance to tenants in relation to acquisitions

(1) On an application by the tenant of a dwelling-house who is a party or a prospective party to proceedings or prospective proceedings falling within subsection (2) below, the Corporation may give assistance to the tenant if it thinks fit to do so--

(a) on the ground that the case raises a question of principle; or

(b) on the ground that it is unreasonable, having regard to the complexity of the case, or to any other matter, to expect the tenant to deal with it without assistance; or

(2) The proceedings referred to in subsection (1) above are--

(a) proceedings to determine any question arising in relation to an acquisition or proposed acquisition under this Part; and

(b) proceedings to determine any dispute arising after an acquisition under this Part between a transferred tenant of a dwelling-house included in the acquisition and the body by which the acquisition was made;

and for the purposes of paragraph (b) above a tenant of a dwelling-house is a transferred tenant of it if he was the qualifying tenant of it at the time of the acquisition or is the widow or widower of the person who was then the qualifying tenant of it.

(3) Assistance given by the Corporation under this section may include--

(a) giving advice;

(b) procuring or attempting to procure the settlement of the matter in dispute;

(d) arranging for representation by a solicitor or counsel, including such assistance as is usually given by a solicitor or counsel in the steps preliminary or incidental to any proceedings, or in arriving at or giving effect to a compromise to avoid or bring to an end any proceedings; and

(e) any other form of assistance which the Corporation may consider appropriate;

but paragraph (d) above does not affect the law and practice regulating the descriptions of persons who may appear in, conduct, defend and address the court in any proceedings.

(4) In so far as expenses are incurred by the Corporation in providing the tenant with assistance under this section, the recovery of those expenses (as taxed or assessed in such manner as may be prescribed by rules of court) shall constitute a first charge for the benefit of the Corporation--

(a) on any costs which (whether by virtue of a judgment or order of a court or an agreement or otherwise) are payable to the tenant by any other person in respect of the matter in connection with which the assistance was given; and

(b) so far as relates to any costs, on his rights under any compromise or settlement arrived at in connection with that matter to avoid or bring to an end any proceedings;

but subject to any charge under the [1988 c. 34.] Legal Aid Act 1988 and to any provision of that Act for payment of any sum to the Legal Aid Board.

108 Registration of title and related matters

Schedule 12 to this Act shall have effect with respect to registration of title and related matters arising on acquisitions of property under this Part and disposals of property so acquired.

109 Public open space etc

(1) To the extent that any land held--

(a) for the purposes of section 164 of the [1875 c. 55.] Public Health Act 1875 (pleasure grounds), or

(b) in accordance with section 10 of the [1906 c. 25.] Open Spaces Act 1906 (duty of local authority to maintain open spaces and burial grounds),

is included in an acquisition under this Part, it shall be deemed to be freed from any trust arising solely by virtue of its being land held in trust for enjoyment by the public in accordance with that section.

(2) Nothing in section 5 of the [1938 c. xciii.] Green Belt (London and Home Counties) Act 1938 (restrictions on alienation of land by local authorities) applies in relation to a disposal of land included in an acquisition under this Part.

110 Extension etc. of relevant periods

(1) In this section "relevant period" means any period within which anything is required by this Part to be done by either of the parties, that is to say, the applicant and the landlord.

(2) At any time before the end of any relevant period, or any such period as previously extended under this subsection, the other party may, by a written notice served on the party to whom the requirement relates, extend or further extend that period.

(3) Where a notice of revocation of the applicant's approval is served under subsection (5) of section 94 above and subsequently withdrawn as mentioned in paragraph (b) of that subsection, any relevant period which, apart from this subsection, would have expired before the withdrawal shall be taken to be extended by a period equal to that beginning with the date of the service of the notice of revocation and ending on the date of the withdrawal.

(4) Where--

(a) the applicant is the party to whom the requirement relates, and

(b) the relevant period, or that period as extended under subsection (2) above, expires without his doing what he is required by this Part to do within that period,

his application claiming to exercise the right conferred by this Part shall be deemed to be withdrawn, but without prejudice to his making a further such application.

111 Power to prescribe forms etc

The Secretary of State may by regulations prescribe--

(a) anything which by this Part is to be prescribed; and

(b) the form of any notice, statement or other document which is required or authorised to be used under or for the purposes of this Part.

112 Orders and regulations

(1) Any power of the Secretary of State to make orders or regulations under this Part shall be exercised by statutory instrument.

(2) A statutory instrument containing any order or regulations under this Part, other than regulations under section 111(b) above, shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(3) Orders or regulations under this Part may make different provision for different cases or circumstances or different areas and may contain such incidental, supplemental or transitional provisions as the Secretary of State thinks fit.

113 Jurisdiction of county court

(1) Subject to sections 98(5) and 99(6) above, a county court has jurisdiction--

(a) to entertain any proceedings brought under this Part; and

(b) to determine any question arising under this Part.

(2) The jurisdiction conferred by this section includes jurisdiction to entertain proceedings on any such question as is mentioned in subsection (1) above notwithstanding that no other relief is sought than a declaration.

(3) If a person takes in the High Court proceedings which, by virtue of this section, he could have taken in the county court, he shall not be entitled to recover any more costs of those proceedings than those to which he would have been entitled if the proceedings had been taken in a county court.

(4) In a case falling within subsection (3) above the taxing master shall have the same power of directing on what scale costs are to be allowed, and of allowing any item of costs, as the judge would have had if the proceedings had been taken in a county court.

114 Interpretation of Part IV

(1) In this Part--

"the 1985 Act" means the Housing Act 1985;
"the Corporation" means the Housing Corporation or Housing for Wales but--
(a)
an approval given by the Housing Corporation shall not have effect in relation to buildings or other property in Wales; and
(b)
an approval given by Housing for Wales shall not have effect in relation to buildings or other property in England;
"qualifying tenant" shall be construed in accordance with subsections (3) and (4) of section 93 above;
"prescribed" means prescribed by regulations made by the Secretary of State;
"property" means land with or without buildings;
"public sector landlord" has the meaning given by section 93(2) above;
"the relevant date" has the meaning given by section 93(5) above; and
"habitable room", in relation to a house, means a room used, or intended for use, as a bedroom, living room, dining room or kitchen.

(2) Subject to subsection (1) above, in this Part expressions which are also used in Part V of the 1985 Act have the same meaning as in that Part.

Part V Miscellaneous and General

Leases.

115 Premiums on long leases

(1) With respect to--

(a) any premium received or required to be paid after the commencement of this Act, or

(b) any loan required to be made after that commencement,

section 127 of the Rent Act 1977 (allowable premiums in relation to certain long tenancies) shall have effect subject to the amendments in subsections (2) and (3) below.

(2) For subsections (2) and (3) there shall be substituted the following subsections--

" (2) The conditions mentioned in subsection (1)(a) above are--

(a) that the landlord has no power to determine the tenancy at any time within twenty years beginning on the date when it was granted; and

(b) that the terms of the tenancy do not inhibit both the assignment and the underletting of the whole of the premises comprised in the tenancy;

but for the purpose of paragraph (b) above there shall be disregarded any term of the tenancy which inhibits assignment and underletting only during a period which is or falls within the final seven years of the term for which the tenancy was granted.

(3) The reference in subsection (2) above to a power or re-entry or forfeiture for breach of any term or condition of the tenancy. "

(3) Subsections (3C) and (3D) shall be omitted and in subsection (5) for "(2)(c)" there shall be substituted "(2)(b)".

(4) Expressions used in subsection (1) above have the same meaning as in Part IX of the Rent Act 1977.

116 Repairing obligations in short leases

(1) In section 11 of the [1985 c. 70.] Landlord and Tenant Act 1985 (repairing obligations in short leases) after subsection (1) there shall be inserted the following subsections--

" (1A) If a lease to which this section applies is a lease of a dwelling-house which forms part only of a building, then, subject to subsection (1B), the covenant implied by subsection (1) shall have effect as if--

(a) the reference in paragraph (a) of that subsection to the dwelling-house included a reference to any part of the building in which the lessor has an estate or interest; and

(b) any reference in paragraphs (b) and (c) of that subsection to an installation in the dwelling-house included a reference to an installation which, directly or indirectly, serves the dwelling-house and which either--

(i) forms part of any part of a building in which the lessor has an estate or interest; or

(ii) is owned by the lessor or under his control.

(1B) Nothing in subsection (1A) shall be construed as requiring the lessor to carry out any works or repairs unless the disrepair (or failure to maintain in working order) is such as to affect the lessee's enjoyment of the dwelling-house or of any common parts, as defined in section 60(1) of the Landlord and Tenant Act 1987, which the lessee, as such, is entitled to use. "

(2) After subsection (3) of that section there shall be inserted the following subsection--

" (3A) In any case where--

(a) the lessor's repairing covenant has effect as mentioned in subsection (1A), and

(b) in order to comply with the covenant the lessor needs to carry out works or repairs otherwise than in, or to an installation in, the dwelling-house, and

(c) the lessor does not have a sufficient right in the part of the building or the installation concerned to enable him to carry out the required works or repairs,

then, in any proceedings relating to a failure to comply with the lessor's repairing covenant, so far as it requires the lessor to carry out the works or repairs in question, it shall be a defence for the lessor to prove that he used all reasonable endeavours to obtain, but was unable to obtain, such rights as would be adequate to enable him to carry out the works or repairs. "

(3) At the end of section 14(4) of the said Act of 1985 (which excludes from section 11 certain leases granted to various bodies) there shall be added--

" a housing action trust established under Part III of the Housing Act 1988 " .

(4) The amendments made by this section do not have effect with respect to--

(a) a lease entered into before the commencement of this Act; or

(b) a lease entered into pursuant to a contract made before the commencement of this Act.

117 Certain tenancies excluded from bankrupt's estate

(1) In section 283 of the [1986 c. 45.] Insolvency Act 1986 (definition of bankrupt's estate) at the end of subsection (3) (property excluded from the estate) there shall be inserted the following subsection--

" (3A) Subject to section 308A in Chapter IV, subsection (1) does not apply to--

(a) a tenancy which is an assured tenancy or an assured agricultural occupancy, within the meaning of Part I of the Housing Act 1988, and the terms of which inhibit an assignment as mentioned in section 127(5) of the Rent Act 1977, or

(b) a protected tenancy, within the meaning of the Rent Act 1977, in respect of which, by virtue of any provision of Part IX of that Act, no premium can lawfully be required as a condition of assignment, or

(c) a tenancy of a dwelling-house by virtue of which the bankrupt is, within the meaning of the Rent (Agriculture) Act 1976, a protected occupier of the dwelling-house, and the terms of which inhibit an assignment as mentioned in section 127(5) of the Rent Act 1977, or

(d) a secure tenancy, within the meaning of Part IV of the Housing Act 1985, which is not capable of being assigned, except in the cases mentioned in section 91(3) of that Act. "

(2) After section 308 of that Act there shall be inserted the following section--

" 308A Vesting in trustee of certain tenancies

Upon the service on the bankrupt by the trustee of a notice in writing under this section, any tenancy--

(a) which is excluded by virtue of section 283(3A) from the bankrupt's estate, and

(b) to which the notice relates,

vests in the trustee as part of the bankrupt's estate; and, except against a purchaser in good faith, for value and without notice of the bankruptcy, the trustee's title to that tenancy has relation back to the commencement of the bankruptcy. "

(3) In section 309 of that Act (time-limit for certain notices) in subsection (1)(b)--

(a) after the words "section 308" there shall be inserted "or section 308A"; and

(b) after the words "the property" there shall be inserted "or tenancy".

(4) In section 315 of that Act (disclaimer (general power)), in subsection (4) after the words "reasonable replacement value)" there shall be inserted "or 308A".

118 Certain tenancies excluded from debtor's estate: Scotland

(1) In section 31 of the [1985 c. 66.] Bankruptcy (Scotland) Act 1985 (vesting of debtor's estate at date of sequestration) in subsection (8) after the word "means" there shall be inserted the words ", subject to subsection (9) below,".

(2) After the said subsection (8) there shall be added the following subsections--

" (9) Subject to subsection (10) below, the "whole estate of the debtor" does not include any interest of the debtor as tenant under any of the following tenancies--

(a) a tenancy which is an assured tenancy within the meaning of Part II of the Housing (Scotland) Act 1988, or

(b) a protected tenancy within the meaning of the Rent (Scotland) Act 1984 in respect of which, by virtue of any provision of Part VIII of that Act, no premium can lawfully be required as a condition of the assignation, or

(10) On the date on which the permanent trustee serves notice to that effect on the debtor, the interest of the debtor as tenant under any of the tenancies referred to in subsection (9) above shall form part of his estate and vest in the permanent trustee as if it had vested in him under section 32(6) of this Act. "

119 Amendment of Landlord and tenent Act 1987

The [1987 c. 31.] Landlord and Tenant Act 1987 shall have effect subject to the amendments in Schedule 13 to this Act.

Rent officers

120 Appointment etc. of rent officers

Section 63 of the [1977 c. 42.] Rent Act 1977 (schemes for the appointment of rent officers) shall have effect subject to the amendments in Part I of Schedule 14 to this Act and after section 64 of that Act there shall be inserted the sections set out in Part II of that Schedule.

121 Rent officers: additional functions relating to housing benefit etc

(1) The Secretary of State may by order require rent officers to carry out such functions as may be specified in the order in connection with housing benefit and rent allowance subsidy.

(2) An order under this section--

(a) shall be made by statutory instrument which, except in the case of the first order to be made, shall be subject to annulment in pursuance of a resolution of either House of Parliament;

(b) may make different provision for different cases or classes of case and for different areas; and

(c) may contain such transitional, incidental and supplementary provisions as appear to the Secretary of State to be desirable;

and the first order under this section shall not be made unless a draft of it has been laid before, and approved by a resolution of, each House of Parliament.

(3) In subsection (7) of section 63 of the Rent Act 1977 (expenditure arising in connection with rent officers etc.), in paragraph (a) after the words "this section" there shall be inserted "or an order under section 121 of the Housing Act 1988".

(4) At the end of section 21(6) of the [1986 c. 50.] Social Security Act 1986 (regulations prescribing maximum family credit and maximum housing benefit) there shall be added the words "and regulations prescribing the appropriate maximum housing benefit may provide for benefit to be limited by reference to determinations made by rent officers in exercise of functions conferred under section 121 of the Housing Act 1988".

(5) In section 30 of that Act (housing benefit finance) at the end of subsection (2) there shall be added the words "and, in relation to rent allowance subsidy, the Secretary of State may exercise his discretion as to what is unreasonable for the purposes of paragraph (b) above by reference to determinations made by rent officers in exercise of functions conferred under section 121 of the Housing Act 1988".

(6) In section 51(1)(h) of that Act (regulations may require information etc. needed for determination of a claim) the reference to information or evidence needed for the determination of a claim includes a reference to information or evidence required by a rent officer for the purpose of a function conferred on him under this section.

(7) In this section "housing benefit" and "rent allowance subsidy" have the same meaning as in Part II of the [1986 c. 50] Social Security Act 1986.

Right to buy etc. and grants to obtain accommodation

122 Variation of cost floor for right to buy discount

(1) Section 131 of the [1985 c. 68.] Housing Act 1985 (limits on amount of discount in relation to the right to buy) shall be amended in accordance with subsections (2) and (3) below.

(2) In subsection (1) (the cost floor provision) for paragraph (a) there shall be substituted the following paragraph--

" (a) is to be treated as incurred at or after the beginning of that period of account of the landlord in which falls the date which is eight years, or such other period of time as may be specified in an order made by the Secretary of State, earlier than the relevant time, and " .

(3) After subsection (1) there shall be inserted the following subsection--

" (1A) In subsection (1)(a) above "period of account", in relation to any costs, means the period for which the landlord made up those of its accounts in which account is taken of those costs. "

(4) This section has effect in relation to the determination of discount in any case where--

(a) the relevant time falls on or after the date on which this section comes into force; or

(b) paragraph (a) above does not apply but the landlord has not before that date served on the tenant a notice complying with section 125 of the Housing Act 1985; or

(c) the tenant has before that date claimed to exercise the right to be granted a shared ownership lease but the landlord has not before that date served on the tenant a notice complying with section 147 of that Act; or

(d) the tenant has before that date served a notice under paragraph 1 of Schedule 8 to that Act (claiming to exercise the right to acquire an additional share under a shared ownership lease) but the landlord has not before that date served a notice under sub-paragraph (3) of that paragraph;

and, for the purposes of this subsection, no account shall be taken of any steps taken under section 177 of that Act (amendment or withdrawal and re-service of notice to correct mistakes).

(5) Expressions used in subsection (4) above have the same meaning as in Part V of the Housing Act 1985.

123 Amendment of Schedule 5 to Housing Act 1985

(1) Schedule 5 of the Housing Act 1985 (exceptions to the right to buy) shall be amended in accordance with this section.

(2) Paragraphs 6 and 8 shall be omitted.

(3) The repeal by this Act of paragraphs 6 and 8 of Schedule 5 shall not affect the operation of either of those paragraphs in any case where the tenant's notice claiming to exercise the right to buy was served before the repeal comes into force unless, at that time, no notice in response had been served under section 124 of the Housing Act 1985 (landlord's notice admitting or denying right to buy).

(4) For the purposes of subsection (3) above, no account shall be taken of any steps taken under section 177 of the Housing Act 1985 (amendment or withdrawal and re-service of notice to correct mistakes).

124 Right to buy: tenant's sanction for landlord's delays

After section 153 of the Housing Act 1985 there shall be inserted the following sections--

" 153A Tenant's notices of delay

(1) Where a secure tenant has claimed to exercise the right to buy, he may serve on his landlord a notice (in this section referred to as an "initial notice of delay") in any of the following cases, namely,--

(a) where the landlord has failed to serve a notice under section 124 within the period appropriate under subsection (2) of that section;

(b) where the tenant's right to buy has been established and the landlord has failed to serve a notice under section 125 within the period appropriate under subsection (1) of that section;

(c) where the tenant has claimed to exercise the right to be granted a shared ownership lease and the landlord has failed to serve a notice under section 146 within the period of the four weeks required by that section;

(d) where the tenant's right to a shared ownership lease has been established and the landlord has failed to serve a notice under section 147 within the period of the eight weeks required by that section; or

(e) where the tenant considers that delays on the part of the landlord are preventing him from exercising expeditiously his right to buy or his right to be granted a shared ownership lease;

and where an initial notice of delay specifies any of the cases in paragraphs (a) to (d), any reference in this section or section 153B to the default date is a reference to the end of the period referred to in the paragraph in question or, if it is later, the day appointed for the coming into force of section 124 of the Housing Act 1988.

(2) An initial notice of delay--

(a) shall specify the most recent action of which the tenant is aware which has been taken by the landlord pursuant to this Part of this Act; and

(b) shall specify a period (in this section referred to as "the response period"), not being less than one month, beginning on the date of service of the notice, within which the service by the landlord of a counter notice under subsection (3) will have the effect of cancelling the initial notice of delay.

(3) Within the response period specified in an initial notice of delay or at any time thereafter, the landlord may serve on the tenant a counter notice in either of the following circumstances--

(a) if the initial notice specifies any of the cases in paragraphs (a) to (d) of subsection (1) and the landlord has served, or is serving together with the counter notice, the required notice under section 124, section 125, section 146 or section 147, as the case may be; or

(b) if the initial notice specifies the case in subsection (1)(e) and there is no action under this Part which, at the beginning of the response period, it was for the landlord to take in order to allow the tenant expeditiously to exercise his right to buy or his right to be granted a shared ownership lease and which remains to be taken at the time of service of the counter notice.

(4) A counter notice under subsection (3) shall specify the circumstances by virtue of which it is served.

(5) At any time when--

(a) the response period specified in an initial notice of delay has expired, and

(b) the landlord has not served a counter notice under subsection (3),

the tenant may serve on the landlord a notice (in this section and section 153B referred to as an "operative notice of delay") which shall state that section 153B will apply to payments of rent made by the tenant on or after the default date or, if the initial notice of delay specified the case in subsection (1)(e), the date of the service of the notice.

(6) If, after a tenant has served an initial notice of delay, a counter notice has been served under subsection (3), then, whether or not the tenant has also served an operative notice of delay, if any of the cases in subsection (1) again arises, the tenant may serve a further initial notice of delay and the provisions of this section shall apply again accordingly.

153B Payments of rent attributable to purchase price etc

(1) Where a secure tenant has served on his landlord an operative notice of delay, this section applies to any payment of rent which is made on or after the default date or, as the case may be, the date of the service of the notice and before the occurrence of any of the following events (and, if more than one event occurs, before the earliest to occur)--

(a) the service by the landlord of a counter notice under section 153A(3);

(b) the date on which the landlord makes to the tenant the grant required by section 138 or, as the case may be, section 150;

(d) the date on which the tenant withdraws or is deemed to have withdrawn the notice claiming to exercise the right to buy or, as the case may be, the notice claiming to exercise the right to be granted a shared ownership lease; and

(e) the date on which the tenant ceases to be entitled to exercise the right to buy.

(2) Except where this section ceases to apply on a date determined under any of paragraphs (c) to (e) of subsection (1), so much of any payment of rent to which this section applies as does not consist of--

(a) a sum due on account of rates, or

(b) a service charge (as defined in section 621A),

shall be treated not only as a payment of rent but also as a payment on account by the tenant which is to be taken into account in accordance with subsection (3).

(3) In a case where subsection (2) applies, the amount which, apart from this section, would be the purchase price or, as the case may be, the tenant's initial contribution for the grant of a shared ownership lease shall be reduced by an amount equal to the aggregate of--

(a) the total of any payments on account treated as having been paid by the tenant by virtue of subsection (2); and

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