Citation, commencement, application and interpretation

1. —(1) This Order may be cited as the Housing (Right to Buy) (Limit on Discount) (England) Order 2014 and shall come into force on 21 ^st July 2014.

(2) This Order applies in relation to England only( 2 ).

(3) In this Order—

(a) a reference to a numbered section is to the section of the Housing Act 1985 bearing that number; and

(b) “London authorities” means—

(i) a London borough council; and

(ii) the Common Council of the City of London.

Maximum discount

2. —(1) The sum prescribed for the purpose of section 131(2) (“the prescribed sum”) for the period from the date this Order comes into force and ending on 5 ^th April 2015 (“the initial period”) is—

(a) for dwelling-houses situated within the areas of London authorities, £102,700; and

(b) for dwelling-houses situated outside of the areas of London authorities, £77,000.

(2) In relation to each subsequent period of 12 months following the initial period, the prescribed sum is calculated by—

(a) increasing the prescribed sum of the previous year by the same percentage as the percentage change in the consumer prices index over the specified period; and

(b) rounding down the result from sub-paragraph (a) to the nearest £100.

(3) In this article—

“consumer prices index” means the general index of consumer prices (for all items) published by the Statistics Board or, if that index is not published for any month, any substituted index or index figures published by that Board; and

“specified period” means the period of 12 months up to and including the September in the previous year referred to in paragraph (2).

Transitional Provision

3. —(1) Subject to paragraph (2) this Order also applies where before the date on which the Order comes into force a notice pursuant to section 122 has been served but the conveyance or grant under Part V of the Housing Act 1985 has not yet taken place.

(2) Paragraph (1) does not apply where the tenant has informed the landlord in writing within 21 days of the date on which the Order comes into force that the sum prescribed for the purpose of section 131(2) should be the sum specified in the Housing (Right to Buy) (Limits on Discount) (England) Order 2012( 3 ) for dwelling-houses not situated in the area of a London authority or the Housing (Right to Buy) (Limits on Discounts) (England) Order 2013( 4 ) for dwelling-houses situated in the area of a London authority.

(3) If—

(a) notice under section 125 (“the section 125 notice”) has been served on the tenant on or before the date on which the Order comes into force; and

(b) the tenant is entitled, by virtue of article 2, to a higher prescribed sum in force pursuant to section 131(2),

the landlord must, as soon as is reasonably practicable, revise and serve an amended section 125 notice which includes the higher prescribed sum pursuant to section 131(2).

(4) Where section 136 applies any notice under paragraph (2) given by the former tenant shall not have effect.

Revocation

4. —(1) Subject to Article 3(2) the Housing (Right to Buy) (Limits on Discount) (England) Order 2012 and the (Right to Buy) (Limits on Discounts) (England) Order 2013 are revoked.