C1Part 2Regulation of Social Housing

Annotations:
Modifications etc. (not altering text)

C1Chapter 5Disposal of propertyF1by private registered providers

Annotations:
Amendments (Textual)

Introductory

I1170Overview

This Chapter makes provision about the disposal of property by F2private registered providers.

I2171Power to dispose

1

A F3private registered provider may dispose of land.

2

But a non-profit registered provider may dispose of the landlord's interest under a secure tenancy only to another non-profit registered provider F4or to a local authority which is a registered provider.

3

Subsection (1) is subject to the following provisions of this Chapter F15....

F26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations:
Amendments (Textual)
F26

S. 177 cross-heading omitted (6.4.2017) by virtue of Housing and Planning Act 2016 (c. 22), s. 216(3), Sch. 4 para. 33(b); S.I. 2017/75, reg. 4 (with reg. 7)

F17177Separate accounting

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F17178Use of proceeds

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations:
Amendments (Textual)
F29

S. 179 and cross-heading omitted (6.4.2017) by virtue of Housing and Planning Act 2016 (c. 22), s. 216(3), Sch. 4 para. 17; S.I. 2017/75, reg. 4

F29179Application of Housing Act 1996

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Right to acquire

I3180C1Right to acquire

1

The tenant of a dwelling in England has a right to acquire the dwelling if—

a

the landlord is a F5private registered provider or a registered social landlord,

b

the tenancy is within subsection (2),

c

the provision of the dwelling was publicly funded,

d

the dwelling has remained in the social rented sector ever since that provision, and

e

the tenant satisfies any qualifying conditions applicable under Part V of the Housing Act 1985 (c. 68) (as it applies by virtue of section 184).

C22

A tenancy is within this subsection if it is—

a

an assured tenancy, other than F13... a long tenancy, or

b

a secure tenancy.

F142A

The Secretary of State may by regulations provide that an assured shorthold tenancy of a description specified in the regulations is not a tenancy within subsection (2).

3

The reference in subsection (1)(a) to a F6private registered provider includes—

a

a person who provided the dwelling in fulfilment of a condition imposed by the HCA when giving assistance to the person;

b

a person who provided the dwelling wholly or partly by means of a grant under section 27A of the Housing Act 1996 (c. 52).

I4181Interpretation: “publicly funded”

1

The provision of a dwelling was publicly funded if any of the following conditions is satisfied.

2

Condition 1 is that—

a

the dwelling was provided by a person in fulfilment of a condition imposed by the HCA when giving assistance to the person, and

b

before giving the assistance the HCA notified the person that if it did so the provision of the dwelling would be regarded as publicly funded.

F182A

Condition 2 is that—

a

the dwelling was provided wholly or partly by a person using an amount for purposes for which the amount was required to be used by an HCA direction under section 32(4), and

b

before giving the direction the HCA notified the person that any dwelling so provided would be regarded as publicly funded.

3

Condition F203 is that the dwelling was provided wholly or partly by using sums in the disposal proceeds fund of—

a

a F7private registered provider, or

b

a registered social landlord.

F193A

In relation to a private registered provider, the reference in subsection (3) to its disposal proceeds fund is to its disposal proceeds fund before the abolition of that fund by Part 3 of Schedule 4 to the Housing and Planning Act 2016.

4

Condition F214 is that —

a

the dwelling was acquired by a F8private registered provider, or a registered social landlord, on a disposal by a public sector landlord,

b

the disposal was made on or after 1st April 1997, and

c

at the time of the disposal the dwelling was capable of being let as a separate dwelling.

5

Condition F214 is not satisfied if the dwelling was acquired in pursuance of a contract made, or option created, before 1st April 1997.

6

Condition F225 is that—

a

the dwelling was provided wholly or partly by means of a grant under section 18 or 27A of the Housing Act 1996 (c. 52), and

b

when the grant was made the recipient was notified under section 16(4) of that Act that the dwelling was to be regarded as funded by means of such a grant.

I5182Interpretation: “remained in the social rented sector”

1

This section applies for the purposes of determining whether a dwelling has remained in the social rented sector.

2

A dwelling shall be treated as having remained in the social rented sector for any period during which—

a

the freeholder was a person within subsection (3), and

b

each leaseholder was either a person within that subsection or an individual holding otherwise than under a long tenancy.

3

A person is within this subsection if the person is—

a

a F9private registered provider,

b

a registered social landlord, or

c

a public sector landlord.

4

A dwelling provided wholly or partly by means of a grant under section 27A of the Housing Act 1996 shall also be treated as having remained in the social rented sector for any period during which it was used exclusively for permitted purposes by—

a

the recipient of the grant, or

b

any person treated as the recipient by virtue of section 27B of that Act.

5

“Permitted purposes” are purposes for which the grant was made and any other purposes agreed by the Housing Corporation or the HCA.

6

Where a lease of a dwelling has been granted to a former freeholder in pursuance of paragraph 3 of Schedule 9 to the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28) (mandatory leaseback to former freeholder on collective enfranchisement) the reference in subsection (1)(a) above to the freeholder shall be construed as a reference to the leaseholder under that lease.

I6183Interpretation: other expressions

1

The definitions in this section apply to sections 180 to 182.

2

The HCA gives “assistance” to a person if it—

a

transfers housing or other land to the person,

b

provides infrastructure to the person, or

c

gives financial assistance to the person,

and for this purpose “infrastructure” has the same meaning as in Part 1.

3

References to a “registered social landlord” are to a body which, at the time to which the reference relates, was a registered social landlord within the meaning of Part 1 of the Housing Act 1996 (c. 52) as it then had effect.

4

“Leaseholder” does not include a mortgagee.

5

“Long tenancy” has the same meaning as in Part V of the Housing Act 1985 (c. 68).

6

A person provides a dwelling if the person—

a

acquires, constructs, converts, improves or repairs housing or other land for use as a dwelling, or

b

ensures such acquisition, construction, conversion, improvement or repair by another.

7

“Public sector landlord” means anyone falling within section 80(1) of the Housing Act 1985.

I7184Right to acquire: supplemental

1

Section 17 of the Housing Act 1996 (right to acquire: supplemental) applies in relation to the right to acquire under section 180 of this Act with the modifications set out below.

2

The modifications are as follows—

a

references to the right to acquire under section 16 of the 1996 Act shall be treated as references to the right to acquire under section 180 of this Act,

b

references to the Welsh Ministers shall be treated as references to the Secretary of State,

c

the reference to registered social landlords shall be treated as a reference to F10private registered providers, and

d

the reference to a resolution of the National Assembly for Wales shall be treated as a reference to a resolution of either House of Parliament.

I8185Right to acquire: consequential amendments

1

In section 16 of the Housing Act 1996 (right to acquire)—

a

for subsection (1) substitute—

1

The tenant of a dwelling in Wales has a right to acquire the dwelling if—

a

the landlord is a registered social landlord or a registered provider of social housing,

b

the tenancy is—

i

an assured tenancy, other than an assured shorthold tenancy or a long tenancy, or

ii

a secure tenancy,

c

the dwelling was provided with public money and has remained in the social rented sector, and

d

the tenant satisfies any further qualifying conditions applicable under Part V of the Housing Act 1985 (the right to buy) as it applies in relation to the right conferred by this section.

b

in subsection (2)(c) after “registered social landlord” insert “ or a registered provider of social housing ”, and

c

in subsection (3)(a) and (b)(ii) after “registered social landlord” insert “ , a registered provider of social housing ”.

2

In section 16A(1) (extension of section 16 to dwellings funded by grants under section 27A) after the first “dwelling” insert “ in Wales ”.

3

In section 20 (purchase grant where right to acquire exercised)—

a

in subsection (1) after “landlords” insert “ and registered providers of social housing ”, and

b

in subsection (4) after “landlord” insert “ or registered provider of social housing ”.

4

In section 21 (purchase grant in respect of other disposals)—

a

in subsection (1)—

i

after “landlords” insert “ and registered providers of social housing ”, and

ii

after “dwellings” insert “ in Wales ”,

b

in subsection (2)—

i

after “section 16” insert “ or by section 180 of the Housing and Regeneration Act 2008 ”, and

ii

for “landlord's” substitute “ landlord or provider (as the case may be) ”, and

c

in subsection (4) after “landlord” insert “ or registered provider of social housing ”.

Miscellaneous

I9186Former registered providers

Where a person ceases to be a F11private registered provider, sections 171 F23and 176 (apart from section 176(2)) continue to apply in respect of any property owned by the person at any time when it was registered.

F24187Change of use, etc.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

I10188Trustees

Section 39 of the Settled Land Act 1925 (c. 18) (disposal by trustees: best price etc.) shall not apply to the disposal of land by a F12private registered provider.

I11189Charities

Nothing in this Chapter authorises a charity to effect a disposal which it would not otherwise have power to effect.

Consents under other legislation

F25190Consent to disposals under other legislation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

I12191Section 190: consequential amendments

1

In section 171D of the Housing Act 1985 (consent to certain disposals of housing obtained subject to the preserved right to buy)—

a

in subsection (2) (consent) for “Secretary of State” substitute “ appropriate authority ”, and

b

after that subsection insert—

2A

“The appropriate authority” means—

a

in relation to a disposal of land in England by a registered provider of social housing, the Regulator of Social Housing,

b

in relation to any other disposal of land in England, the Secretary of State, and

c

in relation to a disposal of land in Wales, the Welsh Ministers.

2

In section 81 of the Housing Act 1988 (consent to certain disposals of housing obtained from housing action trusts)—

a

in subsection (3) (consent) for “Secretary of State” substitute “ appropriate authority ”,

b

after that subsection insert—

3A

In this section “the appropriate authority” means—

a

in relation to a disposal of land in England by a registered provider of social housing, the Regulator of Social Housing,

b

in relation to any other disposal of land in England, the Secretary of State, and

c

in relation to a disposal of land in Wales, the Welsh Ministers.

c

in subsection (5) (consultation of tenants) for “Secretary of State” substitute “ appropriate authority ”,

d

in subsection (5)(a) for “himself” substitute “ itself ”, and

e

omit subsection (6) (consultation of Housing Corporation).

3

In section 133 of that Act (consent to certain disposals of housing obtained from local authorities)—

a

in subsection (1) (consent) for “Secretary of State” substitute “ appropriate authority ”,

b

after that subsection insert—

1ZA

In this section “the appropriate authority” means—

a

in relation to a disposal of land in England by a registered provider of social housing, the Regulator of Social Housing,

b

in relation to any other disposal of land in England, the Secretary of State, and

c

in relation to a disposal of land in Wales, the Welsh Ministers.

c

after subsection (1A) insert—

1B

This section does not apply to a disposal of land by a registered provider of social housing unless the land is social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008.

d

in subsection (3)(c) (modification of certain provisions applied for the purposes of section 133) after “this section,” insert “ any reference to the appropriate national body shall be construed as a reference to the appropriate authority and ”,

e

in subsection (5) (consultation of tenants) for “Secretary of State” substitute “ appropriate authority ”,

f

in subsection (5)(a) for “himself” substitute “ itself ”, and

g

omit subsection (6) (consultation of Housing Corporation).

4

In section 173 of the Local Government and Housing Act 1989 (c. 42) (consent to certain disposals of housing obtained from new town corporations)—

a

in subsection (1)(a) (consent) for “Secretary of State” substitute “ appropriate authority ”,

b

after subsection (1) insert—

1A

In this section “the appropriate authority” means—

a

in relation to a disposal of land in England by a registered provider of social housing, the Regulator of Social Housing,

b

in relation to any other disposal of land in England, the Secretary of State, and

c

in relation to a disposal of land in Wales, the Welsh Ministers.

c

in subsection (5) (consultation of tenants) for “Secretary of State” substitute “ appropriate authority ”,

d

in subsection (5)(a) for “himself” substitute “ itself ”, and

e

omit subsection (6) (consultation of Housing Corporation).