Part IE+W Enfranchisement and Extension of Long Leaseholds

Land held for public purposes, ecclesiastical land, etc.E+W

29 Reservation of future right to develop.E+W

(1)Where a tenant of a house and premises acquires the freehold under this Part of this Act, the landlord being a local authority, there shall, if so required by the local authority, be included in the conveyance under section 8 above such covenants on the part of the tenant restricting the carrying out of development or clearing of land as are necessary to reserve the land for possible development by the authority.

(2)Where a tenant of a house and premises acquires an extended lease under this Part of this Act, the landlord being a local authority, such covenants as are mentioned in subsection (1) above shall, if so required by the local authority, be included in the instrument extending the lease under section 14 above and, if so included, then in the terms of any subsequent tenancy at a low rent which is by virtue of section 3(3) above to be treated (with or without any intervening tenancies) as a single tenancy with that under the extended lease.

(3)Where a covenant is entered into to give effect to subsection (1) or (2) above, it shall be expressed to be so entered into, and Part I of Schedule 4 to this Act shall have effect with respect to the operation and enforcement of any covenant so entered into.

(4)Where a tenant of a house and premises acquires the freehold or an extended lease under this Part of this Act, the landlord being a local authority, and afterwards the local authority or any other person acquires compulsorily any interest in the property, then for the purpose of assessing compensation in accordance with the M1Land Compensation Act 1961 no account shall be taken of any increase in the value of that interest which is attributable to the carrying out of development in contravention of a covenant entered into to give effect to subsection (1) or (2) above, or to any prospect of carrying out any such development; and any compensation payable to a tenant under section 17 above shall be assessed without regard to any increase in the value of his interest which under this subsection would be disregarded on a compulsory purchase of that interest.

(5)For purposes of this section “local authority” means a local authority as defined in section 28(5)(a) above.

(6)Subsections (1) to (4) above shall have effect in relation—

(a)to the [F1new towns residuary body] and to any development corporation within the meaning of [F2the New Towns Act 1981]; and

(b)to any university body as defined in section 28(5)(c) above;

as if any reference in those subsections or in Part I of Schedule 4 to this Act to a local authority were a reference to [F3that residuary body] , corporation or university body; F4...

F5(6A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F6(6B)Where the landlord is a university body, the possible development for which land may be reserved by a covenant entered into to give effect to subsection (1) or (2) above [F7—

(a)includes development by a related university body (within the meaning of section 28(6)(b) above); and

(b)must be development for the purposes (other than investment purposes) of the university body or any such related university body.]]

[F8(6C)Subsections (1) to (4) above shall have effect in relation to a housing action trust as if any reference in those subsections or in Part I of Schedule 4 to this Act to a local authority were a reference to the trust.]

(7)Part II of Schedule 4 to this Act shall have effect to enable property to be re-acquired compulsorily where it is subject to a covenant entered into to give effect to subsection (1) above with the [F9Welsh new towns residuary body] F10. . . or a university body.

(8)This section shall apply, with the necessary adaptations, where a new tenancy is granted in satisfaction of the right to an extended lease under this Part of this Act, as it applies where a lease is extended in accordance with this Part of this Act.