Variation of cost floor for right to buy: HA 1988 s. 122
Amends the cost floor provision: default eight years, may be changed by order. Defines 'period of account'. Transitional rules for discount determinations.
Section 131 of the 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. In subsection (1) (the cost floor provision) for paragraph (a) there shall be substituted the following paragraph— 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 . After subsection (1) there shall be inserted the following subsection— 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. This section has effect in relation to the determination of discount in any case where— the relevant time falls on or after the date on which this section comes into force; or 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 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 the tenant has before that date served a notice under paragraph I 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). Expressions used in subsection (4) above have the same meaning as in Part V of the Housing Act 1985.
Text in force at .
Source: legislation.gov.uk — The National Archives (legislation.gov.uk), reproduced under licence Open Government Licence v3.0.
What it actually says
This section changes the rule that limits the discount you can get when buying your council house (the 'cost floor'). It replaces a fixed period with a default of eight years, but the Secretary of State can make an order setting a different period. It also explains what 'period of account' means: the accounting period the landlord uses to record those costs. The section applies to discount calculations made after it came into force, and also to some cases where the landlord had not yet sent the required notice before that date.
When it applies
- A tenant qualifies for right to buy discount; the landlord uses a Secretary of State order that sets a cost floor period of ten years instead of eight.
- A landlord calculates the cost floor and needs to identify the correct 'period of account' for costs incurred several years ago.
- A tenant receives a notice under section 125 of the Housing Act 1985 after the date this section came into force, so the new cost floor rules apply.
- A tenant claimed a shared ownership lease before the section came into force, but the landlord had not yet served a notice under section 147 of the Housing Act 1985, so the transitional provisions apply.
- A tenant served a notice under paragraph 1 of Schedule 8 to the Housing Act 1985 before the section came into force, but the landlord had not yet served a notice under sub-paragraph (3) of that paragraph.
What this section does not say
- This provision does not set the actual amount of the discount – that is governed by other rules in Part V of the Housing Act 1985.
- It does not change the definition of 'relevant time' or other terms used in the cost floor calculation.
- It does not apply to Scotland (see section 118 of this Act for Scotland provisions).
- It does not affect the right to buy qualification criteria, only the discount calculation.
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This page reproduces the text of HA 1988 s. 122 in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in England and Wales.