SCHEDULE
AMENDMENTS
1. Reserve and Auxiliary Forces (Protection of Civil Interests) Act 19517
In section 16(4)8of that Act (protection of tenure of certain rented premises by extension of Housing Act 1988), as it applies otherwise than to Scotland,—
(a) in paragraph (b) for “paragraph 2” substitute “paragraph 2A”9, and
(b) in paragraph (c) for “paragraph 3” substitute “paragraph 2, 3, 3A, 3B”10.
2. After section 2(1) (tenancies to which section 1 applies) insert—
“1A For the purpose only of determining whether the qualifying condition is fulfilled with respect to a tenancy which is entered into on or after 1st April 1990 (otherwise than, where the property comprised in the tenancy had a rateable value on 31st March 1990, in pursuance of a contract made before 1st April 1990), for section 4(4)(b)and (5) of that Act12substitute—
“(b) on the date the contract for the grant of the tenancy was made (or, if there was no such contract, on the date the tenancy was entered into) R exceeded £25,000 under the formula—
where—
P is the premium payable as a condition of the grant of the tenancy (and includes a payment of money’s worth) or, where no premium is so payable, zero,
I is 0.06, and
T is the term, expressed in years, granted by the tenancy (disregarding any right to terminate the tenancy before the end of the term or to extend the tenancy). ”.”.
3. For section 2(5)13substitute—
“5 In this Part of this Act the expression “tenancy at a low rent” means a tenancy the rent payable in respect whereof (or, where that rent is a progressive rent, the maximum rent payable in respect whereof) is less than,—
(a) where the tenancy was entered into before 1st April 1990 or (where the property comprised in the tenancy had a rateable value on 31st March 1990) is entered into on or after 1st April 1990 in pursuance of a contract made before that date, two-thirds of the rateable value of the property; and for the purposes of this subsection the rateable value of the property is that which would be taken as its rateable value for the purposes of section 5(1)14of the Rent Act 1977; and,
(b) where the tenancy is entered into on or after 1st April 1990 (otherwise than, where the property comprised in the tenancy had a rateable value on 31st March 1990, in pursuance of a contract made before 1st April 1990), is payable at a rate of,—
(i) pound;1,000 or less a year if the property is in Greater London, and
(ii) £250 or less a year if the property is elsewhere.”.
4. After section 2(7)15insert—
“8 The Secretary of State may by order replace any amount referred to in subsections (1A) and (5)(b) of this section and the number in the definition of “I” in subsection (1A) by such amount or number as is specified in the order; and such an order shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.”.
5. For section 1(1)(a)17(tenants entitled to enfranchisement or extension) substitute—
“(a)
“(a) his tenancy is a long tenancy at a low rent and,—
(i) if the tenancy was entered into before 1st April 1990 or (where the house and premises had a rateable value on 31st March 1990) on or after 1st April 1990 in pursuance of a contract made before that date, subject to subsections (5) and (6) below, the rateable value of the house and premises on the appropriate day was not more than £200 or, if it is in Greater London, than £400; and
(ii) if the tenancy is entered into on or after 1st April 1990 (otherwise than, where the house and premises had a rateable value on 31st March 1990, in pursuance of a contract made before 1st April 1990), on the date the contract for the grant of the tenancy was made or, if there was no such contract, on the date the tenancy was entered into R exceeded £25,000 under the formula—
where—
P is the premium payable as a condition of the grant of the tenancy (and includes a payment of money’s worth) or, where no premium is so payable, zero,
I is 0.06, and
T is the term, expressed in years, granted by the tenancy (disregarding any right to terminate the tenancy before the end of the term or to extend the tenancy); and ”.
6. After section 1(6)18insert—
“7 The Secretary of State may by order replace the amount referred to in subsection (1)(a)(ii) above and the number in the definition of “I” in that subsection by such amount or number as is specified in the order; and such an order shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.”.
7. In section 4(1) (meaning of “low rent”)—
(a) after “yearly rate” insert—
“(i)
“(i) if the tenancy was entered into before 1st April 1990 or (where the property had a rateable value on 31st March 1990) is entered into on or after 1st April 1990 in pursuance of a contract made before that date,”, and
(b) after “term” insert—
“(ii)
“(ii) if the tenancy is entered into on or after 1st April 1990 (otherwise than, where the property had a rateable value on 31st March 1990, in pursuance of a contract made before 1st April 1990), more than £1,000 if the property is in Greater London and £250 if the property is elsewhere”.
8. After section 4(6) insert—
“7 Section 1(7) above applies to any amount referred to in subsection (1)(ii) above as it applies to the amount referred to in subsection (1)(a)(ii) of that section.”.
9. In section 9(1A)19(purchase price and costs of enfranchisement) for the words before paragraph (a) substitute—
“Notwithstanding the foregoing subsection, the price payable for a house and premises,—
(i) the rateable value of which was above £1,000 in Greater London and £500 elsewhere on 31st March 1990, or,
(ii) which had no rateable value on that date and R exceeded £16,333 under the formula in section 1(1)(a) above (and section 1(7) above shall apply to that amount as it applies to the amount referred to in subsection (1)(a)(ii) of that section)
shall be the amount which at the relevant time the house and premises, if sold in the open market by a willing seller, might be expected to realise on the following assumptions:—”.
10. In paragraph 6(1) of Part II of Schedule 3 (procedural provisions)—
(a) in paragraph (b) after “particulars of the tenancy and” insert “, in the case of a tenancy falling within section 4(1)(i) of this Act,”, and
(b) after paragraph (d) insert—
“(e)
“(e) in the case of a tenancy falling within section 1(1)(a)(ii) of this Act, the premium payable as a condition of the grant of the tenancy.”.
11. In section 12(9) (provisional rents)—
(a) in paragraph (a)—
(i) after “value” insert “, where the dwelling-house had a rateable value on 31st March 1990,” and
(ii) after “of the dwelling-house” insert “on that date”, and
(b) at the end of paragraph (b) insert
“, and
(c)
(c) “rent based on rateable value”, where the dwelling-house had no rateable value on 31st March 1990, means the weekly or other periodical equivalent of an annual amount equal to the rent at which it is estimated the dwelling-house might reasonably be expected to let from year to year if the tenant undertook to pay all usual tenant’s rates and taxes and to bear the cost of the repairs and insurance and the other expenses (if any) necessary to maintain the dwelling-house in a state to command that rent.”.
12. In section 12(11)—
(a) after “value” insert “or the annual amount referred to in subsection (9)(c) above”, and
(b) after “was made” insert “, or, if that date is after 31st March 1990 and the dwelling-house had a rateable value on that date, 31st March 1990”.
13. In section 12(12) after “for the dwelling-house” insert “on the date as at which the rateable value is to be determined for the purposes of this section”.
14. In section 16(5) (notices of increase)—
(a) after “If” insert “, in a case to which section 12(12) applies”, and
(b) for the words from “at the time” to “served” substitute “on 31st March 1990”.
15. In section 4(1)...
