Explanatory note

This Order amends the Housing (Right to Buy)(Service Charges) Order 1986 (“the principal Order”) which sets out the calculation for the inflation allowance to be added to a landlord’s estimate of the service charges payable by the tenant for repairs and major works in the initial period of a right to buy lease.

Article 2 of this Order amends the definition of “index figure” in Article 2 of the principal Order. This is necessary to reflect the fact that the relevant index is now published by the Department of Trade and Industry under the name “Output Deflators for Direct Labour: Public Housing Repairs and Maintenance” in the “Quarterly building price and cost indices: public sector construction works”.

A full regulatory impact assessment has not been produced for this instrument as it has no impact on the cost of businesses, charities or voluntary bodies.