14. (1) For the purposes of this Part, and subject to sections 17(7) and 19(15), “market value”, in relation to an affordable dwelling, means the price for which the affordable dwelling might reasonably be expected to be sold on the open market for the estate purchased by the homeowner, freed and discharged of any mortgage or incumbrance (including the affordable dwelling purchase arrangement)—

(a) disregarding any increase in the value of the affordable dwelling attributable to any material improvements carried out by the homeowner, and

(b) disregarding any reduction in the value of the affordable dwelling attributable to any want of repair or other breach by the homeowner of any covenant in the affordable dwelling purchase arrangement.

(2) In subsection (1)(a), “material improvement” means any addition or alteration to the dwelling but does not include repairing, painting or decorating.

(3) For the purposes of section 12(7)(c), the market value shall be calculated and determined by the housing authority prior to the making of the affordable dwelling purchase arrangement.

(4) Subject to the terms of the affordable dwelling purchase arrangement, “valuation mechanism”, for the purposes of this Part, means the following procedure:

(a) the housing authority, having been given such information and afforded such inspection facilities as it reasonably requires in order to do so, shall serve a notice on the homeowner setting out the housing authority’s estimate of the market value of the affordable dwelling and any value or sum calculable by reference to the market value, and shall include in that notice any facts relevant to that estimate or calculation in accordance with paragraphs (a) and (b) of subsection (1);

(b) where the homeowner confirms, in writing, agreement with the notice referred to in paragraph (a) or does not respond in writing within a period of 21 days beginning on the date on which the notice is served or such extended period as may be agreed, the matters contained in the notice shall be deemed to constitute the market value of the affordable dwelling, values or sums calculated by reference to the market value and facts relevant to that calculation, as the case may be;

(c) if the homeowner confirms, in writing, disagreement with any matter stated in the notice within a period of 21 days beginning on the date on which the notice is served or such extended period as may be agreed, the homeowner shall nominate an independent valuer from a panel of suitably qualified persons established by the housing authority to whom the matter in disagreement shall be referred by the housing authority, and the determination of the said valuer shall be final and binding;

(d) notwithstanding that the housing authority shall discharge the reasonable fees of the independent valuer, one half of such fees shall be recoverable by the housing authority from the homeowner as a simple contract debt.

(5) The notice to be served by the housing authority on the homeowner in accordance with subsection (4)(a) shall contain such further information as the Minister may prescribe.

(6) Save as provided for in subsection (3), whenever it is necessary to determine—

(a) the market value of any affordable dwelling at any relevant time,

(b) any fact relevant to that determination in accordance with paragraphs (a) and (b) of subsection (1), or

(c) the affordable dwelling equity or any other value or sum calculable by reference to the market value,

those matters shall be determined in accordance with the valuation mechanism.

(7) The Minister may prescribe classes of person to be suitably qualified for the purposes of subsection (4)(c).