Local Government and Housing Act 1989

Conditions of grants and repayments E+W

118 Conditions as to completion of works. E+W

(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.

119 Condition as to availability for letting. E+W

(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 M1 Rent (Agriculture) Act 1976 or isoccupied under an assured agricultural occupancy, within the meaning of PartI of the M2 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 [F1 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.

Textual Amendments

F1 Words in s. 119(6)(a) substituted (1.10.1996) by S.I. 1996/2325, art. 5(1), Sch. 2 para. 19(1)(2)

Marginal Citations

M1 1976 c. 80.

M2 1988 c. 50.

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

(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.

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

(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.

122 Conditions relating to HMO grant. E+W

(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 [F2 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.

Textual Amendments

F2 Words in s. 122(8) substituted (1.10.1996) by S.I. 1996/2325, art. 5(1), Sch. 2 para. 19(1)(3)

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

(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.

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

(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;

[F3 (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 M3 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 M4 Income and Corporation Taxes Act 1988 (meaning of associatedcompany) shall apply in determining whether a company is an associated companyof another.

[F4 (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.

Textual Amendments

F3 S. 124(3)(c) substituted (24.9.1996) by 1996 c. 53, ss. 141(1)(2), 150(2)

F4 S. 124(4A) inserted (24.9.1996) by 1996 c. 53, ss. 141(1)(3), 150(2)

Marginal Citations

M3 1985 c.68.

M4 1988c. 1.

125 Repayment of grant. E+W

(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 M5 Settled Land Act 1925,

(b) that section as applied by section 28 of the M6 Law ofProperty Act 1925 in relation to trusts for sale, and

(c) section 26 of the M7 Universities and College Estates Act1925,

include the making of payments under subsection (2) above.

Marginal Citations

M5 1925 c. 18.

M6 1925 c. 20.

M7 1925 c. 24.

126 Renovation grants relating to two or more dwellings. E+W

(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.