Paragraph 1 C1

Section 86 of the 1977 Act is amended as follows.

In subsection (2) after the word “ tenancy”, where it first occurs, there are inserted the words “ (other than a co-ownership tenancy)”.

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After subsection (3) there is inserted the following subsection—

“(3A)

For the purposes of this section a tenancy is a “ co-ownership tenancy” if—

(a)

it was granted by a housing association which falls within section 15(3)(d) of this Act ; and

(b)

the tenant (or his personal representatives) will, under the terms of the tenancy agreement or of the agreement under which he became a member of the association, be entitled, on his ceasing to be a member and subject to any conditions stated in either agreement, to a sum calculated by reference directly or indirectly to the value of the dwelling house.”.

For subsection (4) there is substituted the following subsection—

“(4)

In this Part of this Act “ housing trust” has the same meaning as in section 15 of this Act.”.