The Secretary of State shall make regulations imposing the following requirements in relation to any acquisition under this Part, namely—
that any dwelling-house which is a house and is occupied by a tenant to whom subsection (2) below applies shall be excluded from the acquisition; and
that a lease of any dwelling-house which is a flat and is occupied by a tenant to whom subsection (2) below applies or by a tenant of a description prescribed for the purposes of this paragraph shall be granted by the applicant to the landlord immediately after the acquisition.
This subsection applies—
to any qualifying tenant whose tenancy commenced before the relevant date, and
to any tenant of a description prescribed for the purposes of this subsection,
being, in either case, a tenant who, before the end of the period mentioned in section 102 below and in response to the consultation under that section, gives notice as mentioned in section 103(2) below of his wish to continue as a tenant of the landlord.
If, by virtue of regulations under this section, any houses fall to be excluded from the acquisition—
there shall be determined the sum (in this subsection referred to as "the sum referable to excluded houses") which represents that proportion of the amount attributable to houses which the number of habitable rooms in the houses which fall to be so excluded bears to the number of habitable rooms in all of the houses comprised in the property to which the acquisition relates; and
if the amount attributable to houses is a price, the sum referable to excluded houses shall be applied as a deduction from any price payable for the property to be acquired, as determined under section 99 above, and as an increase in any disposal cost attributable to that property; and
if the amount attributable to houses is a disposal cost, the sum referable to excluded houses shall be applied as an increase in any price payable for the property to be acquired, as determined under section 99 above, and as a deduction from any disposal cost attributable to that property.
In section 99(1)(ii) and subsection (3) above, "the amount attributable to houses", in relation to an acquisition under this Part, means,—
if the property to which the acquisition relates consists of dwelling-houses which are houses and no other property, the price or, as the case may be, disposal cost specified in accordance with section 99(1)(i) above; and
in any other case, the price or disposal cost which, under subsection (2) or subsection (3) of section 99 above, would be payable for, or attributable to, the property to which the acquisition relates if there were excluded from that property all property other than dwelling-houses which are houses.