Legalize / United Kingdom / Scotland / Act of the Scottish Parliament

Housing (Scotland) Act 2006

Type Act of the Scottish Parliament

Publication 2006-01-05

Last updated 2024-08-30

State In force

Jurisdiction Scotland

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(1) For the purposes of this Part, a house is sub-standard if it—

(a) does not meet the tolerable standard,

(b) is in a state of serious disrepair, or

(i) deteriorate rapidly into a state of serious disrepair, or

(ii) damage any other premises.

(2) The—

(a) age,

(b) character,

(d) internal decorative repair,

of a house are to be ignored when considering whether it is sub-standard.

(3) A house which does not meet the tolerable standard is, for the purposes of this Part, to be treated as not being in a reasonable state of repair.

Application to non-residential premises

69

(1) This Part applies in relation to non-residential premises which form part of any building containing a house as it applies in relation to houses; and references in this Part (except this section) to a house are to be construed as including reference to such non-residential premises.

(2) But nothing in this Part authorises or requires the demolition of, or the carrying out of any work in, any non-residential premises unless the demolition or work is necessary for the purposes of—

(a) implementing an HRA action plan in relation to any house identified in the plan which forms part of the same building,

(b) bringing any house which the local authority considers to be sub-standard (whether or not situated in an HRA) which forms part of the same building into, and keeping it in, a reasonable state of repair, or

(3) For the purposes of this section, any part of any premises which do not include a house are “non-residential premises”.

Interpretation of Part 1

70

(1) In this Part—

“development management scheme” has the same meaning as in the Title Conditions (Scotland) Act 2003 (asp 9),

“sanitary defects” includes lack of air space or of ventilation, lack of lighting, dampness, absence of adequate and readily accessible water supply or of sanitary arrangements or of other conveniences, and inadequate paving or drainage of courts, yards or passages,

“Scottish secure tenancy” and “short Scottish secure tenancy” have the same meanings as in the Housing (Scotland) Act 2001 (asp 10),

“sub-standard”, in relation to a house, has the meaning given in section 68,

“tenement management scheme” has the same meaning as in the Tenements (Scotland) Act 2004 (asp 11).

(2) References in this Part to the start of a tenancy are references to the date on which the tenant first occupies the house concerned under the tenancy (or, if earlier, the date from which the tenant is entitled to so occupy the house).

Part 2 — Scheme of assistance for housing purposes

Provision of assistance for housing purposes

Assistance for housing purposes

71

(1) A local authority may provide or arrange for the provision of assistance to a person in connection with—

(a) the acquisition or sale (or the proposed acquisition or sale) of a house, or

(b) work(including demolition work) on any land or in any premises for any of the purposes mentioned in subsection (2).

(2) Those purposes are—

(a) provision of one or more houses by the conversion of a house or other premises,

(b) construction of a house,

(da) demolishing a house,

(d) bringing any house into, or keeping any house in, a reasonable state of repair,

(e) adaptation of a house for a disabled person to make it suitable for the accommodation, welfare or employment of that person,

(f) reinstatement of any house adapted for the purpose set out in paragraph (e),

(g) provision, in relation to a house, of means of escape from fire and other fire precautions.

(3) Such assistance may, in particular, be in the form of—

(a) the provision of advice, training or other services and facilities,

(b) the provision of information relating to housing,

(d) guaranteeing or joining in guaranteeing the payment of the principal of, and interest on, money borrowed by the person (including money borrowed by the issue of loan capital) or of interest on share capital issued by the person,

(e) payments in respect of any expenses incurred in connection with the opening of a maintenance account,

(f) acquiring, holding, managing and disposing of land or premises,

(g) grants,

(h) standard loans,

(i) subsidised loans.

(4) Assistance may be provided on such terms as the authority thinks fit (subject to any provision about such terms made by or under this Part).

(5) Sections 74 to 90, 92 and 93 do not apply to assistance provided under subsection (1)(a).

(6) The Scottish Ministers may by regulations make further provision about the provision of assistance under subsection (1).

(7) Those regulations may, in particular, make provision as to—

(a) the procedure to be followed by local authorities in—

(i) considering whether to provide such assistance,

(ii) providing or arranging for the provision of such assistance,

(b) the terms which may be imposed under subsection (4) on providing any such assistance (including provision restricting or requiring the imposition of a term).

(8) In this section, “house for a disabled person” means a house which—

(a) is a disabled person's residence at the time when assistance is first provided, or

(b) is likely in the opinion of the local authority to become a disabled person's residence within a reasonable period after that time.

Guidance about availability and amount of assistance

72

(1) A local authority must prepare and make publicly available a statement of—

(a) the criteria by reference to which it determines whether to provide assistance under section 71(1) in particular types of case and the form of the assistance,

(b) the circumstances in which the approved expense relating to assistance provided by way of a grant or loan may be limited in a manner specified in the statement (see section 76(5) and (6)),

(c) the rate of interest or the rate or amount of other charges payable on a standard loan or on the repayment element of a subsidised loan.

(2) Such a statement may make different provision for different cases.

(3) The local authority may revise or replace such a statement.

When assistance must be provided

73

(1) A local authority must provide assistance—

(a) under section 71(1)(b) to the owner of a house (or any non-residential premises forming part of the same building as a house) in respect of work in the house (or those premises) which the owner is required by a work notice to carry out, and

(b) in connection with work in a house for either of the purposes set out in paragraphs (e) and (f) of section 71(2), where the house is (or is likely to become or, in the case of a reinstatement, was) a disabled person's only or main residence.

(2) Where assistance provided under subsection (1)(b) is in respect of work required for providing a house with one or more of the standard amenities such assistance must be provided by way of a grant if—

(a) the house lacks one or more of the standard amenities and, in the opinion of the authority, the amenity or amenities to be provided will meet the needs of a disabled person, or

(b) the house already has the standard amenity in question but, in the opinion of the authority, the amenity to be provided is essential to the needs of a disabled person.

(3) The Scottish Ministers may by regulations make further provision about the type of assistance which must be provided under subsection (1)(b).

(4) Regulations under subsection (3) may, in particular, specify more circumstances in which such assistance must be provided by way of a grant.

(5) A local authority complies with this section if it invites a person to apply for a grant or loan in pursuance of subsection (1) or, as the case may be, a grant in pursuance of subsection (2) and the grant or loan is not provided because—

(a) no application is made,

(b) the application is not made in accordance with section 74, or

(6) The standard amenities are the amenities mentioned in section 86(1)(e), (f) and (fa) of the 1987 Act.

(7) The Scottish Ministers may by order add or remove references in subsection (6) to paragraphs of section 86(1) of the 1987 Act.

Grants and loans

Grants and loans: applications

74

(1) A grant or loan may be made only on an application to the local authority.

(2) The application must contain full particulars of—

(a) the work in question, including plans and specifications of the work,

(b) the land on or premises in which the work is to be, or is being, carried out,

(d) such other matters, including information on the matters mentioned in section 77, as may be required by regulations under section 188.

(3) Where the application is for an amount of grant or loan representing a proportion of the total expense estimated under subsection (2)(c), the application must specify that proportion.

(4) A local authority may require an applicant to provide, within such reasonable period as it may specify, such information as it considers necessary to satisfy itself that the information in the application form is accurate.

(5) The authority must disregard any application from an applicant who fails to comply with such a requirement.

Determination of applications

75

(1) Subject to the provisions of this Part, it is for the local authority to decide whether to approve an application for a grant or loan.

(2) On approving an application, the local authority must then determine—

(a) the approved expense in accordance with section 76, and

(b) where the application is for a grant or subsidised loan, the applicant's contribution under section 77.

(3) A local authority may approve an application for a grant or loan only if, in its opinion, all of the conditions in subsection (4) (so far as applicable) are satisfied.

(4) Those conditions are—

(a) that the owners of any land on or premises in which the work is to be, or is being, carried out (other than land or premises proposed to be sold or leased under section 12(4) of the 1987 Act) have consented in writing to the application and to being bound by the conditions mentioned in section 83 (in so far as those conditions apply),

(b) where that work has begun, that there were good reasons for beginning it before the application was approved,

(c) that the house or houses to which the application relates will provide suitable living accommodation for such period, and conform with such requirements with respect to construction and physical condition and the provision of services and amenities, as the authority considers reasonable,

(d) that, if the house or houses to which the application relates form part of any premises containing more than one house, the work to be carried out will not prevent the improvement of any other house in the premises, and

(e) that, in the case of an application for a standard loan, the applicant is unable to obtain a sufficient loan on fair terms from a commercial lender.

(5) In subsection (4)(e)—

“commercial lender” means a person who—has permission under Part 4A of or is otherwise authorised under the Financial Services and Markets Act 2000 (c. 8) to pay money under a contract on terms under which it will be repaid or otherwise to enter into a contract of the kind mentioned in paragraph 23 or paragraph 23B of Schedule 2 to that Act (credit agreements and contracts for hire of goods), or,is an exempt person within the meaning of that Act in relation to the activity mentioned in paragraph (a), and...

“fair terms” means terms which, in the opinion of the local authority, are reasonable and affordable having regard to the circumstances of the applicant and the interest rates prevailing at the time the loan was applied for.

(6) Subsection (5)(a) must be read with—

(a) section 22 of the Financial Services and Markets Act 2000,

(b) any relevant order under that section, and

(7) The authority may, as a condition of paying the grant or loan, impose a requirement that the work to which the grant or loan relates is completed within such period (being a period of not less than 12 months) as the authority may specify or within such further period as the authority may allow.

The approved expense

76

(1) The approved expense, in relation to the work referred to in an application for a grant or loan, is the amount of—

(a) the expense of carrying out the work, or

(b) the proportion of that expense (as specified in the application),

which the local authority considers reasonable.

(2) If, after approving an application for a grant or loan, the authority is satisfied that—

(a) the expense of carrying out the work will exceed the expense estimated in the application, and

(b) the increase is due to circumstances beyond the control of the applicant,

the authority may, on receipt of a further estimate, substitute a higher amount as the amount of the approved expense in accordance with subsection (1).

(3) Subsections (1) and (2) are subject to subsections (4) and (5).

(4) The Scottish Ministers may, by order, provide that the approved expense in relation to a grant or loan must not, unless they otherwise consent, exceed such amount as may be specified in the order.

(5) In circumstances mentioned in a statement prepared under section 72(1)(b), a local authority may limit the amount of the approved expense in relation to a particular grant or loan to an amount determined in the manner specified in the statement.

(6) Despite subsection (5), a local authority may not limit the amount of the approved expense in relation to an application falling within subsection (7) unless—

(a) the Scottish Ministers consent to the limitation, or

(b) the approved expense would otherwise exceed the amount specified in an order under subsection (4).

(7) An application falls within this subsection if it is made in connection with work in a house for either of the purposes set out in paragraphs (e) and (f) of section 71(2), where the house is (or is likely to become or, in the case of reinstatement, was) a disabled person's only or main residence.

Assessment of applicant’s contribution

77

(1) The Scottish Ministers may by regulations make provision for the assessment, in relation to such classes of application for a grant or a subsidised loan as the regulations may specify, of an amount to be treated, for the purposes of this Part, as the applicant's contribution towards the approved expense (“the applicant's contribution”).

(2) Regulations under subsection (1) may provide for the assessment to be by reference to—

(a) the income and other financial circumstances of any of the following—

(i) the applicant,

(ii) the applicant's spouse or civil partner,

(iii) any person on whom the applicant is dependent or who is dependent on the applicant,

(iv) any person who resides or intends to reside with the applicant,

(b) such other criteria as the Scottish Ministers think fit.

(3) Regulations under subsection (1) may make provision—

(a) for a local authority, with the consent of the Scottish Ministers, to reduce the applicant's contribution by an amount determined by the authority in such cases as may be specified in the regulations,

(b) for the delegation of functions conferred by this section.

Applicant’s contribution: review

78

(1) Where an applicant for a grant or a subsidised loan requests a review of an assessment of the applicant's contribution, the local authority must review the assessment.

(2) A request for a review must be made before the end of the period of 21 days beginning with the day on which the notice under section 81(1) was given or such longer period as the authority may allow.

(3) A review under subsection (1) is to be carried out by a person senior to the person who made the assessment being reviewed and who had no involvement in the making of the assessment.

(4) The authority must notify the applicant of the decision reached on the review.

(5) There is no right to request a review of a decision reached on review.

Amount of grant or loan

79

(1) The amount of a grant is the greater of—

(a) the approved expense less the applicant's contribution (if any), or

(b) where subsection (6) applies, the amount determined by virtue of that subsection.

(2) The amount of a standard loan is the approved expense (unless section 88(1)(b) applies).

(3) The amount of a subsidised loan is the approved expense which is divided into two elements—

(a) an interest free element, and

(b) a repayment element.

(4) The amount of the interest free element is the greater of—

(a) the approved expense less the applicant's contribution (if any), or

(b) where subsection (6) applies, the amount determined by virtue of that subsection.

(5) The amount of the repayment element is the approved expense less the amount of the interest free element.

(6) In such cases as the Scottish Ministers may specify in regulations, the amount for the purposes of subsection (1)(b) and (4)(b) is such percentage of the approved expense as may be so specified or such other percentage as a local authority may, with the consent of the Scottish Ministers, determine.

(7) Where the amount of a grant or of the interest free element of a subsidised loan is determined by virtue of subsection (6), the grant or subsidised loan is referred to in this Part as a “minimum percentage” grant or loan.

Terms of loan

80

(1) A loan may be made on such terms as the local authority thinks fit.

(2) Those terms may include—

(a) terms as to interest, other charges and repayment,

(b) a requirement that the loan, and any such interest and charges, be secured by a standard security over the land on or premises in which the work to which the loan relates is carried out.

(3) But, despite subsection (1)—

(a) no interest or other charge is to be payable in respect of the interest free element of a subsidised loan,

(b) the local authority may not demand repayment of that element of such a loan (or any part of it) unless the applicant to whom the loan is paid disposes of an interest in the land or premises, and

(c) the repayment element of such a loan is to be repaid in instalments of such amounts and at such times as the authority may determine.

(4) For the purposes of this section, a person is to be treated as disposing of an interest in any land or premises if—

(a) the person disposes of the land or premises (or any part of it or them) by way of sale, exchange or gift, or by way of the creation of any right or privilege over that interest or by any other way except by way of lease, the grant of a standard security or other charge or the creation of a servitude, or

(b) where the person holds an interest as tenant, the person ceases to be entitled to occupy the land or premises as tenant.

Notification of decisions

81

(1) On approving an application for a grant or loan the local authority must notify the applicant of—

(a) the approved expense,

(b) the applicant's contribution (where it has been assessed under section 77),

(c) the amount of the grant or loan (and, where the grant or loan is a minimum percentage grant or loan, a statement of that fact), and

(d) the terms (including, in the case of a loan, terms as to interest and repayment) on which the grant or loan is offered.

(2) Where the applicant is not the owner of the land on or premises in which the work to which the application relates is to be, or is being, carried out, the local authority must notify the owner of the matters mentioned in subsection (1)(c) and (d).

(3) In relation to a loan the notice must also advise the applicant to obtain independent advice from a suitably qualified person on the terms on which the loan is offered.

(4) Where an authority—

(a) refuses an application, or

(b) approves an application but fixes as the approved expense in respect of any land or premises an amount less than the amount of the expense estimated in the application or, as the case may be, the proportion of that expense specified in the application in respect of that land or those premises (unless the approved expense is the maximum amount which may be fixed by virtue of an order made under section 76(4)),

it must notify the applicant of the reasons for its decision.

Payment of grants and loans

82

(1) A local authority must, if the conditions mentioned in subsection (2) are satisfied, pay a grant or loan—

(a) within one month of the date on which, in the authority's opinion, the house to which the grant or loan relates becomes fit for occupation on completion of the work to which the grant or loan relates, or

(b) by instalments during the carrying out of the work and a final instalment within one month of that date.

(2) Those conditions are—

(a) that the work has been carried out to the satisfaction of the authority, and

(b) in the case of a loan to be secured by a standard security, that the security has been registered in the appropriate land register.

(3) Where payment of a loan is by instalments, subsection (2)(b) applies to payment of the first instalment.

(4) The payment of an instalment is conditional on the part of the work which the authority considers will entitle the applicant to payment of the instalment having been carried out to the satisfaction of the authority.

(5) The aggregate of instalments of a grant paid before the completion of the work must not at any time exceed the sum calculated using the following formula—

$$GA×W$where—G is the amount of the grant,A is the approved expense, andW is the amount of the approved expense referable to the work carried out up to that time.$

(6) Subsection (7) applies where—

(a) an instalment of a grant or loan is paid before completion of the work, and

(b) the work is not completed within 12 months of the date of payment.

(7) Where this subsection applies, the applicant to whom the instalment is paid must, if the authority so requires, repay to the authority the instalment and any subsequent instalments together with interest from the date on which each instalment was paid at such rate as the authority may determine.

Grants and loans: conditions

Conditions applicable on completion of work

83

(1) Conditions A to D apply for the period mentioned in subsection (3) with respect to any land on or premises in which work to which an approved grant or loan relates is carried out.

(2) But conditions A and B do not apply where the work is carried out on land or in any premises which is not a house (unless that land is or, as the case may be, those premises are converted by the work into a house).

(3) That period is the period—

(a) beginning with the date on which the work is completed (which cannot be before the house to which the grant or loan relates becomes, in the authority's opinion, fit for occupation), and

(b) ending—

(i) in the case of a grant, 10 years after that date,

(ii) in the case of a subsidised loan, 10 years after that date or on the date on which the repayment element of the loan and any interest or other charge on it is repaid in full, whichever is the later,

(iii) in the case of a standard loan, on the date on which the loan and any interest or other charge on it is repaid in full.

(4) Condition A is that the house must be used as a private dwelling; but that does not prevent the use of part of the house as a shop or office or for business, trade or professional purposes.

(5) Condition B is that the house must not be occupied by the owner or a member of the owner's family (within the meaning of section 83 of the 1987 Act) except as that person's only or main residence.

(6) Condition C is that the owner of the land or premises must take all practicable steps to keep it in a good state of repair.

(7) Condition D is that the owner of the land or premises must, if required to do so by the local authority, certify that the conditions A to C are, in so far as they apply, being observed.

Registration of conditions

84

(1) On paying a grant or loan or, in the case of a grant or loan payable by instalments, the final instalment, the local authority must register notice of that fact in the appropriate land register.

(2) Subsection (1) does not apply where the applicant for the grant or loan was a tenant-at-will (within the meaning of section 20(8) of the Land Registration (Scotland) Act 1979 (c. 33)) unless the applicant has, since applying, acquired the landlord's interest in the tenancy.

(3) But in that case the local authority must keep a written record.

(4) A notice under subsection (1) and a written record under subsection (3) must specify—

(a) the conditions mentioned in section 83 which apply with respect to the land or premises,

(b) the period for which they are to be complied with, and

(c) the provisions of section 86 under which, if the conditions are breached, the owner becomes liable to repay the amount repayable by virtue of that section.

(5) The applicant to whom the grant or loan is paid must pay to the local authority the amount of the expenses of registering the notice under subsection (1).

Discharge of conditions

85

(1) At any time when the conditions mentioned in section 83 require to be complied with in relation to any land or premises, the owner or a creditor in a standard security with a right to sell may pay to the local authority the sum which would be payable by virtue of section 86 in the event of a breach of those conditions.

(2) The reference in subsection (1) to a “right to sell” is a reference to the right of the creditor to sell the land or premises under—

(a) section 20(2) or 23(2) of the Conveyancing and Feudal Reform (Scotland) Act 1970 (c. 35), or

(b) a warrant granted under section 24(1) of that Act.

(3) On the making of the payment observance of those conditions ceases to be required.

(4) Where, following a breach of any of those conditions, the local authority demands payment under section 86(1), observance of the conditions mentioned in section 83 ceases to be required.

(5) On the making of a payment referred to in subsection (3) or a demand for payment referred to in subsection (4) the authority must—

(a) if a notice was registered under subsection (1) of section 84, register a further notice in the appropriate land register,

(b) if a written record was kept under subsection (3) of that section, amend that record,

specifying that observance of the conditions is no longer required.

(6) The owner for the time being of the land or premises must pay to the local authority the amount of the expenses of registering the notice under subsection (5).

(7) A sum paid under subsection (1) by a creditor in a standard security forms part of the sum secured by the standard security.

Breach of conditions of grant or loan

86

(1) In the event of a breach of any of the conditions mentioned in section 83 which apply to any land or premises, the local authority must, subject to subsections (2) to (4), demand from the owner for the time being of the land or premises payment of the sums specified in section 87.

(2) If the authority is satisfied that the breach of any condition can be remedied it may, with the consent of the Scottish Ministers and subject to any conditions imposed by them, suspend the operation of subsection (1) for such period as they consider necessary to enable the breach to be remedied.

(3) If the breach is remedied within that period the authority may direct that the breach is to be disregarded for the purposes of this section.

(4) If the authority—

(a) considers that the breach cannot be remedied, but

(b) is satisfied that it was not due to the act, default or connivance of the owner for the time being of the land or premises,

it may, with the consent of the Scottish Ministers and subject to any conditions approved by them, direct that the breach is to be disregarded for the purposes of this section.

(5) On the application of the authority the sheriff within whose jurisdiction the land is, or premises are, situated may, whether or not any other relief is claimed, grant an interdict restraining a breach or apprehended breach of any of those conditions.

Calculation of amount to be paid on breach of conditions

87

(1) In the case of a grant, the sums mentioned in section 86(1) are—

(a) the whole amount of the grant in relation to the work in question, and

(b) interest on the grant accruing from the date of its payment or, where it was paid by instalments, from the date of payment of the final instalment to the date on which the amount mentioned in paragraph (a) is paid.

(2) In the case of a standard loan, those sums are—

(a) the whole amount of the loan in relation to the work in question, and

(b) any interest or other charge on the loan which has accrued to the date on which the amount mentioned in paragraph (a) is paid and which remains outstanding on that date.

(3) In the case of a subsidised loan, those sums are—

(a) the whole amount of—

(i) the repayment element, and

(ii) the interest free element,

of the loan in relation to the work in question,

(b) any interest or other charge on the repayment element which has accrued to the date on which the amount mentioned in paragraph (a)(i) is paid and which remains outstanding on that date, and

(c) any interest or other charge on the interest free element, for which the applicant would have been liable had that element been treated as forming part of the repayment element and which would have accrued to the date on which the amount mentioned in paragraph (a)(ii) is paid.

(4) The reference to “interest” in subsection (1)(b) is to compound interest at such reasonable rate as the local authority determines and with yearly rests.

Miscellaneous and supplementary

Limitation on further grant and loan applications

88

(1) Where an application for a grant or subsidised loan has been approved in respect of any work—

(a) a local authority must not approve a further grant or, as the case may be, subsidised loan in respect of the same work, but

(b) where an application for a grant has been approved, a local authority may approve an application for a standard loan in respect of the same work for an amount not exceeding the amount of the approved expense less the amount of the grant.

(2) Where an application for a grant or a subsidised loan has been approved in respect of any work, the local authority must not, within the period of 10 years beginning with the date on which the application was approved, approve a further application for a grant or subsidised loan in respect of the land on or premises in which the work is carried out unless it is satisfied that at least one of the conditions set out in subsection (3) applies.

(3) Those conditions are—

(a) that the need for the work to which the further application relates was not reasonably foreseeable when the original application was approved,

(b) that it would not have been reasonably practicable to carry out that work at the same time as the work to which the original application related,

(c) that the work to which the further application relates was not considered by the authority to be eligible for a grant or subsidised loan when the original application was approved,

(d) the application is made in response to an invitation made by the authority to the applicant under section 90(1).

Grant and loan applications: offences

89

(1) A person who—

(a) knowingly or recklessly makes a statement—

(i) in an application for a grant or loan, or

(ii) in response to a requirement made under section 74(4),

which is false in a material particular, or

(b) fails, without reasonable excuse, to notify the local authority, as soon as reasonably practicable, of any change of circumstances which—

(i) occurs prior to notification of the authority's decision on an application for a grant or loan being given to that person, and

(ii) that person could reasonably be expected to regard as material to the application,

is guilty of an offence.

(2) A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

Work to improve energy efficiency and safety

90

(1) Where—

(a) an application for a grant or loan has been made in respect of work in any premises, and

(b) the local authority considers that those premises will, on completion of that work—

(i) where the premises are a house, meet the tolerable standard, and

(ii) in any case, be in a reasonable state of repair (disregarding the state of internal decorative repair) having regard to the age, character and locality of the premises,

the local authority may invite an application (or, as the case may be, a further application) for a grant or subsidised loan in respect of any work in those premises of the type specified in subsection (2).

(2) The work in respect of which such an invitation may be made is—

(a) in the case of a house—

(i) replacement of unsafe electrical wiring,

(ii) installation of mains-powered smoke detectors,

(iii) provision of adequate thermal insulation, and

(b) in the case of any premises any part of which is owned in common, installation of—

(i) a fire-resistant door at the entry to each place forming part of those premises which is, or which is capable of being, occupied separately,

(ii) a main door entry-phone system.

Local authority payments to not for profit lenders

91

(1) A local authority may make payments to a designated lender for the purposes of enabling or assisting the lender to lend sums to individuals to assist them with—

(a) the acquisition or sale (or the proposed acquisition or sale) of a house, or

(b) work on any land or any premises for any of the purposes mentioned in section 71(2).

(2) A designated lender is an organisation which—

(a) carries on a business providing such assistance, and

(b) does not carry on that business for profit.

(3) Payments made under subsection (1) may be subject to such terms as the authority thinks fit.

(4) Those terms may include—

(a) terms as to repayment,

(b) terms restricting the terms on which the designated lender lends sums to individuals.

(5) The Scottish Ministers may, by regulations—

(a) amend the definition of “designated lender” in subsection (2),

(b) make provision as to the terms which may be imposed under subsection (3) (including provision restricting or requiring the imposition of a term).

Special cases

Tenants

92

A tenant is not eligible for a grant or loan unless the work to which the grant or loan relates—

(a) has, for the period of 2 years preceding the tenant's application, been the tenant's responsibility under the tenancy,

(b) is for either of the purposes set out in paragraphs (e) and (f) of section 71(2), or

(c) is required as a matter of urgency for the health, safety or security of the occupants of a house, including, in particular, work to—

(i) repair a house,

(ii) provide means of escape from fire or other fire precautions.

Application to agricultural tenants etc.

93

(1) For the purposes of this Part, where the condition in subsection (2) is satisfied, a tenant, crofter, landholder or statutory small tenant is deemed to be the owner of any land or premises on the person's farm, croft or holding.

(2) That condition is that, on the termination of the tenancy, the person would be entitled to compensation for the work to which the grant or loan relates under the Agricultural Holdings (Scotland) Act 1991 (c. 55), the Agricultural Holdings (Scotland) Act 2003 (asp 11), the Crofters (Scotland) Act 1993 (c. 44) or the Small Landholders (Scotland) Acts 1886 to 1931 as for an improvement.

(3) Where by virtue of subsection (1) a grant or subsidised loan is made to a crofter, a landholder or a statutory small tenant in respect of work in relation to land or premises on the person's farm, croft or holding, the local authority must intimate to the landlord of the croft or holding that the grant or loan has been made, and the amount.

(4) Subsection (5) applies where—

(a) compensation becomes payable as for an improvement under the Crofters (Scotland) Act 1993 (c. 44) or the Small Landholders (Scotland) Acts 1886 to 1931 in respect of a house, or for work carried out in relation to a house, provided on a farm, croft or holding, and

(b) under section 83, conditions must at that time be observed with respect to the house otherwise than by its landlord.

(5) The amount specified in subsection (6) is to be deducted from the amount of compensation which would be payable but for this subsection.

(6) That amount is—

(a) where a grant was made in relation to the house, so much of the value of the house or work as is attributable to the grant, or

(b) where a subsidised loan was made in relation to the house, so much of the value of the house or work as is attributable to the interest free element of that loan.

(7) The landlord of a farm, croft or holding on which there is land or premises with respect to which conditions under section 83 must for the time being be complied with is not entitled to receive any sum by way of rent or otherwise in respect of so much of the value of the house or work as is attributable to the grant or subsidised loan.

Supplementary

Directions and guidance

94

(1) The Scottish Ministers may give directions to local authorities in relation to the provision of assistance under this Part.

(2) Directions under subsection (1) may, in particular, with a view to preventing the duplication of the making of grants or loans in respect of the same work, make provision as to the circumstances in which local authorities—

(a) may or may not exercise their powers, or

(b) are or are not to perform their duties,

under this Part.

(3) A direction under subsection (1) may be—

(a) given to a particular authority or to authorities generally,

(b) varied or revoked.

(4) A direction under subsection (1) may not relate to the provision of assistance to a particular person or in relation to particular premises.

(5) In exercising its functions under this Part, a local authority must have regard to any guidance issued by the Scottish Ministers.

(6) Before issuing any such guidance the Scottish Ministers must consult—

(a) such bodies representing local authorities, and

(b) such other persons,

as they think fit.

(7) The Scottish Ministers may vary or revoke any such guidance.

Local authority powers for improvement of amenity of an area

95

(1) For the purpose of improving the amenity of a predominantly residential locality in its area, a local authority may—

(a) carry out any work on any land or in any premises owned by it,

(b) assist (whether by grants or loans or otherwise) in the carrying out of work on any land or in any premises not owned by it,

(c) with the agreement of the owner of any land or premises carry out or arrange for the carrying out of work on that land or in those premises at the expense of the owner, of the authority or of both,

(d) acquire any land or premises—

(i) by agreement, or

(ii) with the authorisation of the Scottish Ministers, compulsorily.

(2) The Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947 (c. 42) applies in relation to an acquisition under subsection (1)(d)(ii) as if that provision were contained in an Act of Parliament in force immediately before the commencement of that Act (with references in that Act to land being read, in the case of an acquisition of premises, as references to those premises).

(3) Assistance may be provided under subsection (1)(b) on such terms as the local authority thinks fit.

(4) This section does not apply in relation to—

(a) any house, or

(b) any part of any premises which is a building which is, or which is capable of being, occupied.

Application of this Part to the Scottish Ministers

96

Any power of a local authority to make grants or loans (including the powers to make payments under section 91(1) and to provide assistance under section 95(1)(b)), and any function of a local authority in relation to the making of grants or loans, under this Part is exercisable by the Scottish Ministers as it is by the local authority.

Interpretation of Part 2

97

(1) In this Part—

“applicant's contribution” means an amount assessed under section 77,

“approved expense” has the meaning given in section 76,

“interest free element” means an amount determined under section 79(4),

“minimum percentage grant” and “minimum percentage loan” have the meanings given in section 79(7),

“repayment element” means an amount determined under section 79(5),

“standard loan” means a loan made under this Part which is not a subsidised loan,

“subsidised loan” means a loan made under this Part which is divided into two elements in accordance with section 79(3).

(2) In this Part—

(a) references to grants or loans (excluding the reference in section 95(1)(b)) are to grants or loans provided under section 71(1), and

(b) references to the applicant for a grant or loan are to be read, in relation to any time after an applicant dies, as references to the applicant's executor.

Part 3 — Provision of information on sale of house

Duty to have or provide information about houses on the market

Duty to have information about a house which is on the market

98

A person who is responsible for marketing a house which is on the market must possess the prescribed documents in relation to the house.

Duty to provide information to potential buyer

99

(1) A person who is responsible for marketing a house which is on the market must comply with any request by a potential buyer for a copy of any or all of the prescribed documents in relation to the house.

(2) Such a request must be complied with within such period as the Scottish Ministers may by regulations specify (“the permitted period”).

(3) The duty under subsection (1) does not apply if the person responsible for marketing the house reasonably believes that the person making the request—

(a) is unlikely to have sufficient means to buy the house in question,

(b) is not genuinely interested in buying the house, or

(4) Nothing in subsection (3) authorises the doing of anything which is an unlawful act of discrimination.

(5) Subsection (3) does not apply if the person responsible for marketing the house knows or suspects that the person making the request is an officer of an enforcement authority.

(6) The person responsible for marketing the house may charge a sum not exceeding the reasonable cost of making and, if requested, sending a paper copy of any prescribed documents requested under subsection (1).

(7) If the person responsible for marketing the house ceases to be so responsible before the end of the permitted period (whether because the house has been sold, taken off the market or for any other reason), that person ceases to be under any duty to comply with a request made under subsection (1).

(8) A person does not comply with the duty under subsection (1) by providing a copy in electronic form unless the potential buyer consents in writing to receiving it in that form.

Imposition of conditions on provision of information

100

(1) A potential buyer who has made a request to which section 99(1) applies may be required to comply with either or both of the following conditions before a copy is provided.

(2) The potential buyer may be required to pay a charge authorised by section 99(6).

(3) The potential buyer may be required to accept any terms specified in writing which—

(a) are proposed by the seller or in pursuance of the seller's instructions, and

(b) relate to the use or disclosure of the copy (or any information contained in or derived from it).

(4) A condition is effective only if it is notified to the potential buyer before the end of the permitted period.

(5) Where the potential buyer has been so notified of either or both of the conditions authorised by this section, the permitted period for the purposes of section 99(2) is to run afresh beginning with—

(a) where one condition only is involved, the day on which the potential buyer complies with it by making the payment demanded or, as the case may be, accepting the terms proposed (or such other terms as may be agreed between the seller and the potential buyer in substitution for those proposed), or

(b) where both conditions are involved, the day on which the potential buyer complies with them or, where each condition is complied with on a different day, the later of those days.

Other duties of person acting as agent for seller

101

(1) This section applies to a person acting as agent for the seller of a house where—

(a) the house is not on the market, or

(b) the house is on the market but the person so acting is not responsible for marketing the house.

(2) A person to whom this section applies must possess the prescribed documents in relation to a house when any qualifying action is taken by or on behalf of that person.

(3) In subsection (2) “qualifying action” means action taken with the intention of marketing the house which—

(a) communicates to any person the fact that the house is or may become available for sale, but

(b) does not put the house on the market.

Acting as agent

102

(1) A person acts as agent for the seller of a house if the person does anything in the course of a business in pursuance of marketing instructions from the seller.

(2) In subsection (1) “marketing instructions” means instructions to carry out any activities with a view to—

(a) effecting the introduction to the seller of a person wishing to buy the house, or

(b) selling the house by auction.

Duty to ensure authenticity of documents held under section 98 or 101

103

(1) This section applies to a person who is subject to the duty in section 98 or 101(2).

(2) Where such a person—

(a) provides a potential buyer with, or

(b) allows a potential buyer to inspect,

a copy of a prescribed document (or a part of such a document), that person must ensure that the copy is authentic.

Prescribed documents

Information to be held or provided to potential buyers

104

(1) The Scottish Ministers may by regulations—

(a) prescribe documents for the purposes of section 98, 99(1) or 101(2), and

(b) make such further provision about those documents as they think fit.

(2) A document may be prescribed under subsection (1) only if the Scottish Ministers consider that it discloses information about—

(a) the physical condition of a house (including any characteristics or features of the house),

(b) the value of a house, or

(3) Regulations under subsection (1) may, in particular, make provision—

(a) about the form of, and the information to be included in, or excluded from, a prescribed document,

(b) requiring that a prescribed document be prepared by a person of a description specified in the regulations,

(c) requiring that the date to which information in a prescribed document relates is no earlier than the beginning of such period as the regulations may specify before the date on which the house was put on the market,

(d) requiring that a prescribed document is to be valid for such period of time, or is to be invalidated in such circumstances, as the regulations may specify.

(4) Regulations under subsection (1) may also make provision for and in connection with the registration of prescribed documents and may, in particular, make provision—

(a) for a register of prescribed documents to be kept by the Scottish Ministers or such other person as the regulations may specify (or for the keeping of 2 or more such registers),

(b) authorising the Scottish Ministers to make payments or to give other assistance in connection with the creation, administration or operation of such a register,

(c) requiring persons of such type as may be so specified to register prescribed documents in such circumstances as may be so specified,

(d) about the circumstances and manner in which, and the purposes for which, information contained in such a register may be inspected, copied or otherwise obtained,

(e) setting the amount, or the maximum amount, of any fee which may be charged in connection with registering documents or with inspecting or obtaining information contained in such a register,

(f) for enforcement by enforcement authorities of any requirement to register prescribed documents.

Exceptions from duty

Exceptions from duty to have or provide information

105

The Scottish Ministers may by regulations—

(a) exempt persons of such description as the regulations may specify from any of the duties in section 98, 99(1) or 101(2),

(b) specify periods of time during which or circumstances under which—

(i) a person need not possess any prescribed document under section 98 or section 101(2), or

(ii) a person need not comply with a request under section 99(1),

Responsibility for marketing houses

Responsibility for marketing: general

106

(1) Only the seller or a person acting as agent for the seller may be responsible for marketing the house.

(2) A seller is not so responsible if any person is acting as agent for the seller.

(3) But a seller who—

(a) is not responsible because of subsection (2), and

(b) reasonably believes that the person acting as agent for the seller possesses the prescribed documents,

must take reasonable steps to inform a potential buyer that a request under section 99(1) should be made to the person acting as agent.

(4) A person may be responsible for marketing the house on more than one occasion.

Responsibility of person acting as agent

107

(1) A person acting as agent becomes responsible for marketing the house when action taken by or on behalf of that person results in the house being on the market.

(2) That responsibility ceases when—

(a) the house is sold or taken off the market, or

(b) each of the conditions in subsection (3) is satisfied.

(3) Those conditions are that—

(a) the contract between the person acting as agent and the seller is terminated (whether by withdrawal of marketing instructions or otherwise),

(b) the person acting as agent has ceased to take any action which makes public the fact that the house is on the market, and

Responsibility of seller

108

(1) A seller becomes responsible for marketing the house when action taken by or on behalf of the seller results in the house being on the market.

(2) That responsibility ceases when—

(a) the house is sold or taken off the market, or

(b) the conditions in subsection (3) are satisfied.

(3) Those conditions are that—

(a) the seller has ceased to take any action which makes public the fact that the house is on the market, and

(b) any such action being taken on behalf of the seller has ceased.

(4) In this section references to action taken on behalf of the seller exclude action taken by or on behalf of a person acting as the seller's agent.

Enforcement

Enforcement authorities

109

(1) Every local weights and measures authority is an enforcement authority for the purposes of this Part.

(2) It is the duty of each enforcement authority to enforce this Part in their area.

Power to require production of prescribed documents

110

(1) An authorised officer of an enforcement authority may require a person who appears to the officer to be or to have been subject to the duty under section 98, 99(1) or 101(2) in relation to a house to produce for inspection a copy of any prescribed document in relation to the house.

(2) The power conferred by subsection (1) includes power—

(a) to require the production in a legible documentary form of any document which is held in electronic form, and

(b) to take copies of any document produced for inspection.

(3) A requirement under this section may not be made more than 6 months after the last day on which the person concerned appeared to the officer to be subject to the duty under section 98, 99(1) or 101(2) in relation to the house.

(4) A person subject to a requirement under this section must comply with it within the period of 7 days beginning with the day after that on which it is made.

(5) But a person need not comply with the requirement if the person has a reasonable excuse for not complying with it.

Penalty charge notices

111

(1) An authorised officer of an enforcement authority may, if the officer believes that a person has breached any duty under section 98, 99(1), 101(2) or 103(2), give a penalty charge notice to that person.

(2) A penalty charge notice may not be given after the end of the period of 6 months beginning with the day on which it appeared to the officer that the duty was breached.

(3) Schedule 3 (which makes further provision about penalty charge notices) has effect.

(4) The Scottish Ministers may by regulations make further provision about penalty charge notices or any other notice mentioned in schedule 3.

(5) Such regulations may, in particular, include provision prescribing—

(a) the form of penalty charge notices or any other notice mentioned in that schedule,

(b) circumstances in which penalty charge notices may not be given,

(d) the method or methods by which penalty charges may be paid.

Offences relating to enforcement officers

112

(1) A person who obstructs an authorised officer of an enforcement authority acting in pursuance of section 110 is guilty of an offence.

(2) A person who, not being an authorised officer of an enforcement authority, purports to act as such in pursuance of section 110 or 111 is guilty of an offence.

(3) A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

Duty to provide information to tenant exercising right to purchase

Information for tenants exercising right to purchase

113

(1) The 1987 Act is amended as follows.

(2) In subsection (2) of section 63 (application to purchase and offer to sell)—

(a) the word “and” immediately preceding paragraph (e) is repealed, and

(b) after that paragraph, insert—

; and (f) information prescribed under section 63A.

(3) After section 63 insert—

(63A) (1) The Scottish Ministers may by regulations made by statutory instrument— (a) prescribe information for the purpose of paragraph (f) of section 63(2); and (b) make such further provision about that information as they think fit. (2) Information prescribed under subsection (1) may include information which— (a) provides a reasonable estimate of any costs of maintaining the house and any common parts; (b) states how long— (i) any common parts; (ii) any fixtures and fittings; or (iii) any items in, forming part of or relating to the house as may be prescribed by the regulations, are expected to last, including a reasonable estimate of the cost of replacing each of the things to which the information relates; and (c) relates to any other matters which may be of interest to a tenant who has served an application to purchase. (3) Regulations made under subsection (1) may, in particular, specify circumstances in which an offer to sell need not contain prescribed information unless the tenant pays, or undertakes to pay, to the landlord such sum as may be specified in the regulations. (4) In this section “common parts” means any— (a) part of the house; (b) part of any building of which the house forms part; or (c) other property, which the tenant, as owner of the house, would own in common with others or would have an obligation in common with others to maintain. (5) Regulations may not be made under subsection (1) unless a draft of the statutory instrument containing the regulations has been laid before and approved by resolution of the Scottish Parliament.

Supplementary

Grants for development of proposals

114

(1) The Scottish Ministers may make grants towards expenditure incurred by any person in connection with the development of proposals for any provision to be made by regulations under section 104(1).

(2) A grant under this section may be made on conditions, which may include (among other things)—

(a) conditions as to the purposes for which the grant or any part of it may be used,

(b) conditions requiring the repayment of the grant or any part of it in such circumstances as may be specified in the conditions.

Disapplication for houses not available with vacant possession

115

(1) The duties under sections 98, 99, 101 and 103 apply in relation to a house only when it is available for sale with vacant possession.

(2) For the purposes of this Part, a house being marketed is presumed to be available with vacant possession unless the contrary appears from the manner in which the house is being marketed.

Application of Part to sub-divided buildings

116

(1) This section applies where—

(a) two or more houses in a sub-divided building are marketed for sale as a single property, and

(b) any one or more of those houses—

(i) is not available for sale separately from the others, but

(ii) is available with vacant possession.

(2) The provisions of this Part (but not section 115) apply to the house mentioned in subsection (1)(a) as if it were a single house.

(3) Subsection (2) does not affect the application of this Part to any of those houses which are available for sale as a separate house.

(4) In this section “sub-divided building” means a building originally constructed or adapted for use as a single dwelling which has been divided (on one or more occasions) into separate houses.

Notification of breach of duty

117

(1) An enforcement authority may notify—

(a) the lead enforcement authority (as defined in section 33(1) of the Estate Agents Act 1979),

(b) any other person or body having an interest,

of any breach of duty under this Part appearing to the authority to have been committed by a person acting as agent for the seller of a house.

(2) An enforcement authority must notify the lead enforcement authority of—

(a) any penalty charge notice given by an officer of the authority under section 111,

(b) any notice given by the authority confirming or withdrawing a penalty charge notice, and

Possession of documents

118

(1) For the purposes of this Part, “possession” includes civil possession; and “possess” and “possesses” are to be construed accordingly.

(2) A document held in electronic form is to be treated for the purposes of this Part as being in a person's possession if the person is readily able (using equipment available to that person)—

(a) to view the document in a form that is legible, and

(b) to produce copies of it in a legible documentary form.

119

(1) In this Part references to “the market” are to the market for houses in Scotland.

(2) A house is on the market when the fact that it is or may become available for sale is, with a view to marketing the house, made public in Scotland by or on behalf of the seller.

(3) A house is to be regarded as remaining on the market until it is sold or taken off the market.

(4) A fact is made public when it is advertised or otherwise communicated (in whatever form and by whatever means) to the public or a section of the public.

(5) In this Part—

“long lease” means a probative lease—granted for a period exceeding 20 years, orwhich contains an obligation on the landlord to renew the lease from time to time at fixed periods, upon the termination of a life or lives, or otherwise so that the total duration could (in terms of the lease, as renewed, and without any subsequent agreement, express or implied, between the persons holding the interests of the landlord and the tenant) endure for a period exceeding 20 years,

“potential buyer” means a person who claims to be interested, or that the person may become interested, in buying a house,

“sale”, in relation to a house, means a disposal, or agreement to dispose, by way of sale of—the ownership of the house,the interest of the tenant under a long lease of a house,and “seller” means a person contemplating such a disposal (and related expressions are to be construed accordingly).

Part 4 — Tenancy deposits

Tenancy deposits: preliminary

120

(1) A tenancy deposit is a sum of money held as security for—

(a) the performance of any of the occupant's obligations arising under or in connection with a tenancy or an occupancy arrangement, or

(b) the discharge of any of the occupant's liabilities which so arise.

(2) A tenancy deposit scheme is a scheme for safeguarding tenancy deposits paid in connection with the occupation of any living accommodation.

Tenancy deposit schemes: regulatory framework

121

(1) The Scottish Ministers may by regulations (“tenancy deposit regulations”)—

(a) set out conditions which a tenancy deposit scheme must meet before they can approve it under section 122,

(b) make such further provision about tenancy deposit schemes as they think fit.

(2) Tenancy deposit regulations may, in particular—

(a) make provision about the manner and circumstances in which tenancy deposits must be paid, held and repaid under an approved scheme,

(b) impose sanctions for failing to participate in, or to comply with, an approved scheme,

(d) prescribe the type of person who may administer an approved scheme,

(e) authorise the Scottish Ministers to make payments, or to give guarantees or other assistance, in connection with—

(i) the creation, administration or operation of an approved scheme,

(ii) the resolution of disputes relating to an approved scheme,

(f) set the amount, or the maximum amount, of any fee which may be charged in connection with an approved scheme,

(g) prescribe arrangements for publicising approved schemes.

(3) But tenancy deposit regulations may not—

(a) prescribe circumstances in which tenancy deposits must be paid under a tenancy or an occupancy arrangement,

(b) create offences.

Approval of tenancy deposit schemes

122

(1) The Scottish Ministers may approve a tenancy deposit scheme devised by them or by any other person.

(2) Such an approval—

(a) may not be given unless tenancy deposit regulations are in force, and

(b) must be given in accordance with the tenancy deposit regulations then in force.

(3) Before approving a tenancy deposit scheme, the Scottish Ministers must—

(a) publicise the terms of the proposed scheme in such manner as they think fit, and

(b) consult—

(i) such persons representing landlords or tenants whom they think may be affected by the proposed scheme, and

(ii) such other persons as they think fit,

about the proposed scheme.

(4) The Scottish Ministers must review each approved tenancy deposit scheme from time to time and may, following any such review—

(a) take steps to secure the revision of the reviewed scheme, or

(b) withdraw their approval of the reviewed scheme.

(5) Subsections (1) to (4) apply to revised schemes in the same way as they apply to new schemes (except that that the duty imposed by subsection (3) does not apply if the Scottish Ministers think that a proposed revision is unlikely to adversely affect any person significantly).

(6) The Scottish Ministers may approve—

(a) different tenancy deposit schemes for different types of tenancy or occupancy arrangement,

(b) more than one tenancy deposit scheme for the same type of tenancy or occupancy arrangement.

Amendment of Rent (Scotland) Act 1984

123

In section 90(3) (declaration that deposits are not premiums) of the Rent (Scotland) Act 1984 (c. 58), after “obligations” insert “ for rent, ”.

Part 5 — Licensing of houses in multiple occupation

Introductory

Requirement for HMOs to be licensed

124

(1) Every house in multiple occupation (“HMO”) must be licensed under this Part unless it is exempted by or under section 126, 127 or 142.

(2) A licence under this Part (an HMO licence) is a licence granted by a local authority authorising occupation of living accommodation as an HMO.

Meaning of “house in multiple occupation”

125

(1) HMO” means any living accommodation occupied by 3 or more persons who are not all members of the same family or of one or other of two families -

(a) which—

(i) falls within subsection (2), and

(ii) is occupied by those 3 or more persons as an only or main residence, or

(b) which is of such type, or which is occupied in such manner, as the Scottish Ministers may by order specify.

(1A) Before making an order under subsection (1)(b), the Scottish Ministers must consult—

(a) local authorities, and

(b) such tenants (or tenants' representatives) and such landlords (or landlords' representatives) as they think fit.

(2) Living accommodation falls within this subsection if—

(a) it is a house, or

(b) it is, or forms part of, any premises or group of premises owned by the same person and its occupants share one or more of the basic amenities with each other.

(3) The “basic amenities” are—

(a) a toilet,

(b) personal washing facilities, and

(4) For the purposes of this section—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) living accommodation occupied during term time by a person undertaking a full-time course of further or higher education is, at all times during that person's residence, to be treated as being that person's only or main residence,

(c) a patient in a health service hospital (within the meaning of section 108(1) of the National Health Service (Scotland) Act 1978 (c. 29)) is not to be treated as occupying the hospital,

(d) a person is not to be treated as sharing a basic amenity if the living accommodation concerned has more than one of any such amenity and the person has exclusive use of at least one of them.

HMOs exempt from licensing requirement

126

(1) An HMO is exempt from the requirement to be licensed under this Part if it is—

(a) occupied only by the owners of the HMO either alone or together with—

(i) any persons in the same family as any of those owners, and

(ii) any number of other persons who are unrelated to any of those owners but who are members of the same family or of one or other of two families,

(b) provided as part of—

(i) a care home service,

(ii) an independent health care service,

(iii) a school care accommodation service, or

(iv) a secure accommodation service,

registered under Part 5 of the Public Services Reform (Scotland) Act 2010 or, as the case may be, under section 10Q(1) of the National Health Service (Scotland) Act 1978 (c.29),

(c) owned by the Crown and occupied only by members of the armed forces of the Crown (either alone or together with any persons in the same family as any of those members),

(d) a prison or a young offenders institution,

(e) occupied only by—

(i) persons who are members of, and fully maintained by, a religious order the main occupation of which is prayer, contemplation, education or the relief of suffering, or

(ii) a group consisting of such persons and no more than two other persons,

(f) subject to a management control order made under section 74 (order transferring landlord's rights and obligations to local authority) of the Antisocial Behaviour etc. (Scotland) Act 2004 (asp 8), or

(g) owned by a co-operative housing association (within the meaning of section 300(1)(b) of the 1987 Act) the management of which is undertaken by general meeting.

(2) The Scottish Ministers may by order amend subsection (1) by—

(a) adding or removing the description of any type of HMO to or from those descriptions for the time being listed in that subsection, or

(b) varying any such description which is for the time being so listed.

Power to designate HMOs capable of being exempted by local authorities

127

(1) The Scottish Ministers may by order describe types of HMOs which may be exempted by a local authority from the requirement to be licensed under this Part.

(2) A local authority may by order exempt from the requirement to be licensed under this Part any HMO of a type described in an order made under subsection (1) which is situated in—

(a) the authority's area, or

(b) any part of that area as may be specified in the order,

and the local authority may vary or revoke such an order at any time.

(3) The local authority must give notice of any order it makes, or of any variation or revocation, under subsection (2)—

(a) in a newspaper circulating in the authority's area, and

(b) to every person entered in the register maintained by the authority under section 82(1) of the Antisocial Behaviour etc. (Scotland) Act 2004 (asp 8) (the “register of landlords”).

(4) The local authority must serve a copy of any notice given under subsection (3)(b) on any other person who—

(a) acts for the person to whom the notice is given, and

(b) is specified in the authority's register of landlords as being a person who so acts,

but failure to comply with this subsection does not invalidate the related notice given under subsection (3)(b).

(5) Where—

(a) an order made by the Scottish Ministers under subsection (1) is revoked, or

(b) any description of a type of HMO set out in such an order is amended,

an order made by a local authority under subsection (2) ceases to have effect in so far as it relates to any type of HMO which may no longer be exempted by an order under subsection (2).

Relationships

128

(1) Persons are to be treated as being in the same family as, and as being related to, each other for the purposes of this Part only if—

(a) they are a couple,

(b) one of them is a relative of the other, or

(2) For the purposes of subsection (1)—

(a) a “couple” means two persons who—

(i) are married or are civil partners, or

(ii) live together as husband and wife or, where they are of the same sex, in an equivalent relationship,

(b) “relative” means parent, grandparent, child, grandchild, brother, sister, uncle, aunt, nephew or niece,

(d) the stepchild of a person is to be treated as that person's child, and

(e) a person brought up or treated by another person as if the person were that other person's child (including any person placed with that other person, or with that other person's family, under section 26(1)(a) of the Children (Scotland) Act 1995 (c. 36)) is to be treated as that other person's child.

Application for HMO licence

129

(1) An application to a local authority for an HMO licence may be made only by an owner of the living accommodation concerned.

(2) The local authority may determine an application for an HMO licence by—

(a) granting the HMO licence (with or without conditions), or

(b) refusing to grant the HMO licence.

(3) Schedule 4 makes provision about procedural requirements relating to an application for an HMO licence.

Suitability of applicants and agents

130

(1) The local authority must refuse to grant an HMO licence if—

(a) any of the persons mentioned in subsection (2) is disqualified by an order made under section 157(2), or

(b) the authority considers that any of those persons is not a fit and proper person to be authorised to permit persons to occupy any living accommodation as an HMO.

(2) Those persons are—

(a) the applicant,

(b) any agent specified in the application, and

(c) where the applicant or agent is not an individual, any director, partner or other person concerned in the management of the applicant or agent.

(3) Section 85 of the Antisocial Behaviour etc. (Scotland) Act 2004 (asp 8) applies to a local authority in deciding whether a person is a fit and proper person for the purposes of subsection (1)(b) as it applies to the authority when it is deciding whether a person is a fit and proper person for the purposes of section 84(3) or (4) of that Act.

Suitability of living accommodation

131

(1) The local authority may grant an HMO licence only if it considers that the living accommodation concerned—

(a) is suitable for occupation as an HMO, or

(b) can be made so suitable by including conditions in the HMO licence.

(2) In determining whether any living accommodation is, or can be made to be, suitable for occupation as an HMO the local authority must consider—

(a) its location,

(b) its condition,

(d) the type and number of persons likely to occupy it,

(da) whether any rooms within it have been subdivided,

(db) whether any rooms within it have been adapted and that has resulted in an alteration to the situation of the water and drainage pipes within it,

(e) the safety and security of persons likely to occupy it, and

(f) the possibility of undue public nuisance.

Restriction on applications

132

(1) Where a local authority refuses to grant an HMO licence the local authority may not consider a further application for an HMO licence by the same applicant—

(a) in relation to the living accommodation concerned, or

(b) where the application was refused because of section 130(1)(b), in relation to any living accommodation,

within one year of the date on which notice of the refusal is given to the applicant under section 158.

(2) This section does not prevent the local authority from considering a further application for an HMO licence where it is satisfied that there has been a material change of circumstances.

Terms of HMO licence

Conditions

133

(1) An HMO licence may include such conditions as the local authority thinks fit.

(2) The Scottish Ministers may by order require local authorities to include in HMO licences of such description as may be specified in the order such conditions as may be so specified.

(3) A condition included in an HMO licence may specify a date from which that condition is to have effect (and section 134(1) or, as the case may be, 138(8) is of no effect in so far as it purports to bring any condition which specifies such a date into effect before that date).

(4) Where an HMO licence includes, or is varied to include, a condition which requires work to be carried out in any living accommodation, the condition must also specify the date by which that work must be completed.

(5) No date may be specified for the purposes of subsection (3) or (4) which would—

(a) cause a condition of an HMO licence to have effect, or

(b) require the work required by such a condition to be completed,

before the date by which the local authority reasonably considers that the licence holder can secure compliance with the condition or, as the case may be, complete the work.

Duration of HMO licence

134

(1) An HMO licence—

(a) has effect from, and

(b) expires 3 years (or such shorter period of not less than 6 months as may be specified in the licence) after,

the latest of the dates set out in subsection (2).

(2) Those dates are—

(a) the date on which notice of the decision to grant it is served on the licence holder under section 158,

(b) where the local authority was required to consider a valid written representation, or decided to consider a late written representation, about the application for the HMO licence—

(i) the last date on which the decision to grant the HMO licence may be appealed to the sheriff by the respondent, or

(ii) where such an appeal is made, the date on which it is abandoned or finally determined other than by quashing the decision to grant the licence, and

(3) Subsection (1) does not apply to an HMO licence granted in pursuance of paragraph 9(6) of schedule 4.

(4) An HMO licence which is so granted—

(a) has effect from, and

(b) expires one year after,

the date by which the local authority was required by sub-paragraph (1) of that paragraph to determine the application for that licence.

(5) Sections 135 to 137 set out circumstances in which an HMO licence is to continue to have effect until a later date or, as the case may be, to expire early.

Application for new HMO licence: effect on existing HMO licence

135

(1) Where—

(a) an HMO licence has been granted (an “existing HMO licence”), and

(b) an application for a new HMO licence is made in relation to the living accommodation concerned before the existing HMO licence has expired,

the existing HMO licence expires on the date set out in subsection (2).

(2) That date is—

(a) where the new HMO licence is granted, the date from which the new HMO licence has effect, ...

(aa) where the local authority refuses to consider the application for the new HMO licence—

(i) the date on which the existing HMO licence would expire had an application for a new HMO licence not been made, or

(ii) such later date as the local authority considers reasonable in the circumstances, and

(b) where the local authority refuses to grant the new HMO licence, the latest of the following dates—

(i) the last date on which the decision to refuse to grant the new HMO licence may be appealed to the sheriff,

(ii) where such an appeal is made, the date on which it is abandoned or finally determined other than by quashing the decision to refuse to grant the new HMO licence, and

(iii) the date on which the existing HMO licence would expire had an application for a new HMO licence not been made.

(3) The local authority must serve notice of a decision under subsection (2)(aa)(ii) to extend (or further extend) the duration of an existing HMO licence on—

(a) the licence holder,

(b) the enforcing authority, and

Change of ownership: effect on HMO licence

136

(1) Subsection (2) applies where—

(a) an HMO licence has effect on the date on which ownership of the living accommodation concerned is transferred by way of sale or otherwise from the licence holder to another person (the “new owner”), and

(b) the new owner is entered in the register maintained by the local authority under section 82(1) of the Antisocial Behaviour etc. (Scotland) Act 2004 (asp 8) (the “register of landlords”).

(2) Where this subsection applies, the HMO licence—

(a) is to be treated as having been granted to the new owner, but

(b) subject to sections 135 and 137, expires one month after the date on which ownership of the living accommodation is transferred.

(3) Where the condition in subsection (1)(a) is satisfied but the new owner is not entered in the register of landlords, the HMO licence expires on the date on which ownership of the living accommodation is transferred.

Death of licence holder: effect on HMO licence

137

(1) Where a sole licence holder dies, the HMO licence—

(a) is to be treated as having been granted to the licence holder's executor, but

(b) expires 3 months after the date of the death.

(2) The local authority may, on the application of a licence holder's executor, extend the period mentioned in subsection (1)(b) if it is satisfied that it is reasonable to do so for the purposes of winding up the licence holder's estate.

Variation and revocation of HMO licence

Variation of HMO licence

138

(1) The local authority may vary an HMO licence at any time.

(2) The local authority may do so on the application of the licence holder or of its own accord.

(3) But an HMO licence may not be so varied so as to shorten the period for which the licence has effect.

(4) The local authority must serve notice of any proposed variation on—

(a) where the local authority is proposing the variation, the licence holder,

(b) the enforcing authority, and

and must invite each of them to make oral representations about the proposed variation.

(5) Where the local authority is proposing the variation, the notice required by subsection (4) must give the authority's reasons for doing so.

(6) The notice and invitation required by subsection (4) must be served not less than 7 days before the local authority proposes to hear any invited representation.

(7) The local authority must consider any such representations made before it decides whether to vary the HMO licence.

(8) A variation of an HMO licence has effect from the latest of the following dates—

(a) the date on which notice of the decision to vary the HMO licence is served on the licence holder under section 158,

Reading this document does not replace reading the official text published on legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. We assume no responsibility for any inaccuracies arising from the conversion of the original CLML XML to this format.

This text is published under legislation.gov.uk's own terms of reuse, not a Legalize or public-domain licence. legislation.gov.uk
Open Government Licence v3.0 (attribution required)
© Crown and database right. Derived from content available under the Open Government Licence v3.0 from legislation.gov.uk.