§ (".—(1) In section 4(1) of the Leasehold Reform Act 1967 (meaning of "low rent")—
- (a) in paragraph (i) (cases where rent limit of two-thirds of rateable value on later of appropriate day and first day of term applies), for the words from "or (where" to "that date" there shall be substituted ",or on or after 1st April 1990 in pursuance of a contract made before that date, and the property had a rateable value other than nil at the date of the commencement of the tenancy or else at any time before 1st April 1990,",
- (b) in paragraph (ii) (other cases), for the words from "is entered" to "1990)," there shall be substituted "does not fall within paragraph (i) above,", and
- (c) in paragraph (a) (definition of "appropriate day" by reference to section 25(3) of the Rent Act 1977), there shall be inserted at the end "if the reference in paragraph (a) of that provision to a rateable value were to a rateable value other than nil".
§
(2) In section 4A of the Leasehold Reform Act 1967 (alternative rent limits for the purposes of section 1A(2) of that Act)—
(a) in subsection (1)(b) (cases where rent limit of two-thirds of rateable value on the relevant date applies), for sub-paragraph (ii) there shall be substituted—
(ii) the property had a rateable value other than nil at the date of commencement of the tenancy or else at any time before 1st April 1990,", and.
(b) in subsection (2), for paragraph (b) there shall be substituted—
(b) "the relevant date" means the date of the commencement of the tenancy or, if the property did not have a rateable value, or had a rateable value of nil, on that date, the date on which it first had a rateable value other than nil;".
(3) In section 8 of the Leasehold Reform, Housing and Urban Development Act 1993 (leases at a low rent)—
(a) in subsection (1)(b) (cases where rent limit of two-thirds of rateable value on the appropriate date applies), for sub-paragraph (ii) there shall be substituted—
(ii) the flat had a rateable value other than nil at the date of the commencement of the lease or else at any time before 1st April 1990,", and.
(b) in subsection (2), for paragraph (b) there shall be substituted—
(b) "the appropriate date" means the date of commencement of the lease or, if the flat in question did not have a rateable value, or had a rateable value of nil, on that date, the date on which the flat first had a rateable value other than nil;".").
§ The noble Lord said: My Lords, in moving Amendment No. 150, I wish to speak also to Amendment No. 161. Amendment No. 150 deals with the treatment of properties which have hitherto been unable to meet the low rent test for leasehold enfranchisement because they had a nil rateable value on the relevant date. The problem was raised in Committee by my noble friend Lord Carnock, for which I thank him, and the noble Lord, Lord Dubs. The matter has also been raised outside Parliament with the Department of the Environment.
§ As noble Lords pointed out, the problem is quite widespread and has generally arisen in one of two ways. For houses, leases were granted at a reduced premium on damaged or derelict properties which were not fit for human habitation (and so had a nil rateable value) on the understanding that the lessee would restore the property to a good standard. For flats, leases were granted in conversions off the drawing-board; again, the property had a nil rateable value because it was not complete at the time.
§ Amendment No. 150 looks complex but it has a very simple effect. If the property had a nil rateable value on the date that would have been chosen for the low rent test, then the relevant date is the first subsequent date before 1st April 1990 when the property did have a 370 rateable value. Noble Lords will recall that the domestic rating system was abolished on 1st April 1990, which is why that date is significant.
§ Amendment No. 161 is consequential in that it recasts Section 1(1)(a) of the Leasehold Reform Act 1967, which sets out the dates on which the rateable value limits are effective, to conform to the wording in Amendment No. 150. The amendment removes a potential lacuna in the current wording of Section 1(1)(a) as well. I beg to move.
§ Lord CarnockMy Lords, I am grateful to my noble friend for tabling this amendment. It will correct an anomaly and a number of injustices. However, in view of the extensive amendments that are being made to the Bill, perhaps consideration can be given to reprinting the section as amended as a schedule to the Bill. That was done with Schedule 15 of the 1993 Act in relation to a section of the earlier 1967 Act.
§ Lord DubsMy Lords, I thank the Minister for responding with this amendment to concerns that were raised during the Committee stage. I am grateful to him for that.
§ Lord StrabolgiMy Lords, I welcome what the Government have done to meet this problem. We are grateful that they have seen the light and responded to requests from all sides of the House.
Lord LucasMy Lords, I am delighted to begin the after-supper business in such good heart and good company. I am grateful to noble Lords for having shown us the light. I shall bear in mind what my noble friend Lord Carnock said and talk to my colleagues on the subject.
§ On Question, amendment agreed to.
§ Clause 104 [Low rent test: extension of rights.]
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Viscount Caldecote moved Amendment No. 151:
Leave out Clause 104 and insert the following new clauseߞ