Section 446 — Housing Act 1985: Forms of assistance and qualifying conditions.

Forms of assistance and qualifying conditions. 446 1 Assistance under section 445 (assistence for first-time buyers) may be given in the following ways—

a the secured loan may be financed by the Secretary of State to the exent of £600 (that amount being normally additional to that which the institution would otherwise have lent, but not so that the total loan exceeds the loan value of the property);

b £600 of the total loan may be made free of interest, and of any obligation to repay principal, for up to five years from the date of purchase;

and c the institution may provide the purchaser with a bonus on his savings (which bonus shall be tax-exempt) up to a maximum of £110, payable towards the purchase or expenses arising in connection with it.

2 The purchaser qualifies for assistance under subsection (1)(a) and (b) (interest-free loan) by satisfying the following conditions with respect to his own savings—

a that he has been saving with a recognised savings institution for at least two years preceding the date of his application for assistance, b that throughout the twelve months preceding that date he had at least £300 of such savings, and c that by that date he has accumulated at least £600 of such savings;

and he qualifies for assistance under subsection (1)(c) (bonus on savings) by satisfying the conditions specified in paragraphs (a) and (b) above.

3 The Secretary of State may allow for the conditions to be relaxed or modified in particular classes of case.

4 No assistance shall be given in any case unless the amount of the secured loan is at least £1,600 and amounts to not less than 25 per cent. of the purchase price of the property.

5 The Secretary of State may by order made with the consent of the Treasury—

a alter any of the money sums specified in this section;

b substitute a longer or shorter period for either or both of the periods mentioned in subsection (2)(a) and (b) (conditions as to savings);

c alter the condition in subsection (2)(c) so as to enable the purchaser to satisfy it with lesser amounts of savings and to enable assistance to be given in such a case according to reduced scales specified in the order;

d alter the percentage mentioned in subsection (4) (minimum secured loan).

6 An order shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.