Determination of purchase price HA 1988 s. 99
Landlord must serve notice of purchase price or disposal cost within 8 weeks. Applicant has 4 weeks to dispute. Disputes determined by district valuer.
Within eight weeks of— if there is no dispute as to any of the matters stated in the notice under section 98(1) above, the service of that notice, or if there is such a dispute, the determination of the dispute, the landlord shall serve on the applicant a notice specifying— the price which, disregarding sections 100(3) and 103(1) below, it considers should be payable for the property to be acquired or, as the case may be, the disposal cost which, disregarding section 100(3) below, is attributable to the property to be acquired by virtue of subsection (3) below; and if the property to which the acquisition relates includes dwelling-houses which are houses as well as other property, an amount which the landlord considers to be the amount attributable to houses as defined in section 100(4)(b) below. Subject to sections 100(3) and 103(1) below, the price payable for the property to be acquired shall be the price which on the relevant date the property to which the acquisition relates would realise if sold on the open market by a willing vendor on the following assumptions, namely— that it was sold subject to any tenancies subsisting on that date but otherwise with vacant possession; that it was to be conveyed with the same rights and subject to the same burdens as it would be in pursuance of the right of acquisition; that the only bidders in the market were persons who on that date either were approved under section 94 above or fulfilled the criteria for approval established under subsection (3) of that section; that the applicant would, within a reasonable period, carry out such works as are reasonably necessary to put the buildings included in the acquisition into the state of repair required by the landlord’s repairing obligations; and that the applicant would not be required to grant any leases in pursuance of regulations made under section 100 below. Subject to section 100(3) below, there is a disposal cost attributable to the property to be acquired if, having regard to the expense likely to be incurred in carrying out the works referred to in paragraph (d) of subsection (2) above, the property to which the acquisition relates would not realise any price in the circumstances specified in that subsection; and that disposal cost is the amount by which the expense likely to be so incurred exceeds what would be determined under that subsection as the price if those works had already been carried out. The notice under subsection (1) above shall contain sufficient information to enable the applicant to see how the price or, as the case may be, disposal cost and any amount referred to in sub-paragraphs (i) and (ii) of subsection (1) above were arrived at and, if the property to which the acquisition relates consists of or includes any dwelling-houses which are houses, the notice shall also contain a list of the addresses of the houses together with the number of habitable rooms in each of them. Within four weeks of service of the notice under subsection (1) above, the applicant shall notify the landlord in writing of any matters stated in that notice which he does not accept. Any dispute as to any matters stated in a notice under subsection (1) above shall be determined by the district valuer, in accordance with such provisions (including provisions as to costs) as may be prescribed. In a notice under subsection (1) above or by a separate notice given to the applicant not later than seven days after the date of a determination under subsection (6) above, the landlord may notify the applicant that if there is a disposal cost which is such that, in accordance with regulations under section 104(2A) below, it may be paid by instalments, the landlord intends to pay that cost by instalments. Where the landlord notifies the applicant as mentioned in subsection (7) above, he shall furnish to the applicant, in such form and certified in such manner as may be prescribed, such information as may be prescribed in order to enable the applicant to consider the application of the regulations to the disposal cost and to assess the likely effect of the payment by instalments.
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 sets out the procedure for determining the price (or disposal cost) when a tenant exercises the right to acquire under Part IV of the Housing Act 1988. The landlord must serve a notice within 8 weeks of the section 98(1) notice (or of any dispute about that notice being resolved). The notice must specify the price the landlord considers payable on the open market, assuming only approved bidders and that the tenant will carry out necessary repairs. If the property would not sell due to the cost of those repairs, the landlord states a disposal cost instead. The notice must include enough information to show how the figures were reached, and if the property includes houses, a list of addresses and habitable rooms. The applicant then has 4 weeks to challenge any part of the notice. Disputes are decided by the district valuer. The landlord may also notify the tenant of an intention to pay a disposal cost by instalments, with further information to follow.
When it applies
- A tenant applies to buy their house under the right to acquire, and the landlord sends a valuation notice within 8 weeks.
- The landlord finds that the property is in such poor repair that its open market value is negative, so it issues a disposal cost instead of a price.
- The tenant receives a notice listing several houses with the number of habitable rooms in each, as required because the property includes multiple dwelling-houses.
- The tenant disagrees with the landlord's valuation and notifies the landlord of the disputed items within 4 weeks.
- The landlord decides to pay the disposal cost by instalments and gives a separate notice to the tenant within 7 days of the district valuer's determination.
What this section does not say
- It does not determine whether the tenant has a right to acquire the property at all – that is governed by sections 93 to 98.
- It does not set the actual purchase price; it only requires the landlord to propose a price and allows the tenant to challenge it.
- It does not cover the tenant's right to challenge which property is included in the acquisition – that is dealt with under section 98.
- It does not specify the amount of repair costs; it only uses the cost of repairs as an assumption in the valuation.
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This page reproduces the text of HA 1988 s. 99 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.