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Amend the law relating to long leaseholders; to confer further powers on |
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leaseholders; to make provision in relation to leaseholders in local council |
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owned property and property owned by other social landlords; to confer |
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powers on landlords to create sinking funds; to make requirements of |
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landlords relating to the management of property; and for connected |
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Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and |
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consent of the Lords Spiritual and Temporal, and Commons, in this present |
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Parliament assembled, and by the authority of the same, as follows:— |
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1 | Involvement of tenants in decisions on works |
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(1) | The Landlord and Tenant Act 1985 (c. 70) is amended as follows. |
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(2) | In section 20ZA (consultation requirements: supplementary), for subsection (5) |
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“(5) | Regulations under subsection (4) shall include provision— |
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(a) | requiring the landlord to give reasons in prescribed |
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circumstances for carrying out works; |
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(b) | requiring the landlord to provide details of proposed works, |
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including estimates of costs, to tenants or the recognised |
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tenants’ association representing them; |
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(c) | requiring the landlord to invite residential tenants or the |
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recognised tenants’ association to propose the names of persons |
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from whom the landlord should try to obtain other estimates; |
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(d) | requiring the landlord to consult those tenants affected by the |
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(i) | the specifications for any tenders issued in respect of the |
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(ii) | all tenders received in respect of the proposed works; |
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(e) | to enable tenants or the recognised tenants’ association to |
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submit, within a specified period of time, a counter-proposal in |
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respect of proposed works, specifying alternative provision of |
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(f) | requiring the landlord to— |
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(i) | have regard to any observations made by tenants or the |
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recognised tenants’ association in relation to the |
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(ii) | hold a ballot of the tenants directly affected by the |
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proposed works on any counter-proposal that is |
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supported by 25 per cent or more of those tenants |
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directly affected by the proposed works, and |
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(iii) | adopt the counter-proposal if it is supported by a |
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majority of tenants directly affected by the proposed |
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(g) | requiring the landlord to make available for inspection by the |
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public at reasonable times and for a period of ten years— |
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(i) | details of any proposed works and any responses to |
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consultations on such works, |
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(ii) | any counter-proposals that are supported by more than |
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25 per cent of tenants directly affected by the proposed |
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(iii) | any requests to a residential property tribunal service |
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for adjudication and details of the consequent decisions; |
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(h) | in cases of dispute, for a leasehold valuation tribunal or other |
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independent arbitration tribunal to make a determination in |
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respect of proposed works or agreements upon application by a |
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landlord, residential tenant or the recognised tenants’ |
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(3) | In section 19 (limitation of service charges: reasonableness), after subsection (3) |
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“(3A) | If the relevant contribution of any residential tenant in any 12 month |
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period exceeds £12,000, arrangements must be made by the landlord |
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for such tenants to pay that contribution in monthly instalments not |
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exceeding £250 for that period.” |
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2 | Consultation on proposals by the Secretary of State |
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(1) | The Housing Act 1985 (c. 68) is amended as follows. |
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(2) | In section 105 (consultation on matters of housing management), after |
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subsection (2)(b) insert— |
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“(c) | a proposed measure or policy relating to the matters specified |
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in paragraphs (a) and (b) about which the Secretary of State has |
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published a consultation document to which the landlord |
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authority intends to make a written response.” |
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3 | Power to buy back a share of a property |
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(1) | The Secretary of State must, within 12 months of the date on which this Act is |
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passed, make regulations conferring duties and powers on local authority |
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landlords to buy back, at the request of a residential tenant and after a specified |
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period from that tenant’s purchase of the lease, a proportion of the property |
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(2) | The Secretary of State may, by order, specify— |
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(a) | the period referred to in subsection (1); and |
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(b) | the proportion referred to in subsection (1). |
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(3) | The Secretary of State may, by order, vary the amounts specified in any order |
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made under subsection (2). |
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(4) | Orders and regulations made by the Secretary of State under this section shall |
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be made by statutory instrument. |
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(5) | A statutory instrument containing an order or regulations under this section is |
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subject to annulment in pursuance of a resolution of either House of |
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(1) | The Secretary of State must, within 12 months of the date on which this Act is |
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passed, make regulations regarding the terms of leases granted by local |
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authorities for residential properties. |
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(2) | The regulations made under subsection (1) shall provide that all leases granted |
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by local authorities for residential properties shall be deemed to include |
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provision for tenants to make contributions to a sinking fund to be used to |
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finance any proposed works in relation to tenants’ properties. |
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(3) | Regulations made by the Secretary of State under this section shall be made by |
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(4) | A statutory instrument containing regulations under this section is subject to |
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annulment in pursuance of a resolution of either House of Parliament. |
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(1) | This Act may be cited as the Leasehold Reform Act 2008. |
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(2) | This Act extends to England and Wales. |
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