1. These Regulations may be cited as the Housing (Change of Landlord) (Payment of Disposal Cost by Instalments) (Amendment) (No. 2)Regulations 1992 and shall come into force on 16th September 1992.

2. In the Housing (Change of Landlord) (Payment of Disposal Cost by Instalments) Regulations 1990(3), in regulation 3(3) (payment by instalments) for "10.99 per cent." there is substituted "10.8 per cent.".

3. The Regulations set out in the Schedule to these Regulations are revoked.

4. Regulations 2 and 3 do not apply in respect of any period before 16th September 1992 notwithstanding that interest included in the amount of an instalment is paid after 16th September 1992.

Regulation 3

SCHEDULE

Explanatory Note

(This note is not part of the Regulations)

Part IV (that is, sections 93 to 114) of the Housing Act 1988 (Change of Landlord: secure tenants) confers the right to acquire the fee simple estate in buildings and other property from a public sector landlord. Where, in the exercise of that right, it is determined that the property to which the acquisition relates would not raise any price, section 99(3) of that Act provides that there is a disposal cost attributable to that property. Section 104(2A) provides for such a disposal cost to be paid by instalments, which may include interest, inprescribed cases.

Regulation 3 of the Housing (Change of Landlord) (Payment of Disposal Cost by Instalments) Regulations 1990 prescribes the cases in which a disposal cost may be paid by instalments and makes provision for payment. That regulation, as amended, provides that the amount of each instalment shall include interest at 10.99 per cent. on the outstanding amount.

Regulations 2 and 3 decrease the rate of interest to 10.8 per cent. and revoke all earlier Regulations which prescribed previous rates of interest. Regulation 4 stops the new rate of interest and the revocations applying in respect of any period before 16th September 1992.