(1) In this article–
“house” has the same meaning as in Part II of the Housing Act 1985 (“the 1985 Act ”), but does not include–
a hostel as defined in section 622 of the 1985 Act, or
a flat in relation to which the right to buy under Part V of that Act has been exercised;
“housing stock” means the number of houses provided by a defined authority under Part II of the 1985 Act; and
“relevant year” means a period of twelve months beginning with 1st August in any year and ending on 31st July in the following year.
(2) During the relevant year beginning in 1998 housing management carried out by a defined authority shall not be treated as a defined activity so long as the housing stock of the authority on 1st July 1998 is not more than 4,000.
(3) In any relevant year starting in 1999 or subsequently housing management carried out by a defined authority shall not be treated as a defined activity so long as, on 1st July in the immediately preceding relevant year, the housing stock of the authority is not more than 2,500.