In determining for the purposes of the Restrictive Trade Practices Act 1976 whether an agreement between building societies is one to which that Act applies by virtue of an order made, or having effect as if made, under section 11 of that Act (restrictive agreements as to services), no account shall be taken of any term (whether or not subject to exceptions) by which the parties or any of them agree not to grant loans on the security of new houses unless they have been built by or at the direction of a person who is registered with, or has agreed to comply with the standards of house building laid down or approved by, an appropriate body.

In subsection (1)—

• "appropriate body" means a body concerned with the specification and control of standards of house building which—

  1. a

     has its chairman, or the chairman of its board of directors or other governing body, appointed by the Secretary of State, and

  2. b

     promotes or administers a scheme conferring rights in respect of defects in the condition of houses on persons having or acquiring interest in them, and

• "new house" means a building or part of a building intended for use as a private dwelling and not previously occupied as such.

The reference in subsection (1) to a term agreed to by the parties or any of them includes a term to which the parties or any of them are deemed to have agreed by virtue of section 16 of the [1976 c. 34.] Restrictive Trade Practices Act 1976 (recommendations of services supply associations).