Localism Bill (HL Bill 71)

(g) in subsection (7) after “authority” insert “in Wales”,

(h) in subsection (9) after “authority” insert “in Wales”,

(i) in subsection (11) after “authority” insert “in Wales”.

128 Allocation schemes

(1) 5The Housing Act 1996 is amended as follows.

(2) In section 166 (applications for housing accommodation)—

(a) after subsection (1) insert—

“(1A) A local housing authority in England shall secure that an
applicant for an allocation of housing accommodation is
10informed that he has the rights mentioned in section 166A(9).”

(b) in subsection (2) after “authority” insert “in Wales”.

(3) For the heading before section 167 substitute “Allocation schemes”.

(4) Before section 167 insert—

“166A Allocation in accordance with allocation scheme: England

(1) 15Every local housing authority in England must have a scheme (their
“allocation scheme”) for determining priorities, and as to the procedure
to be followed, in allocating housing accommodation.

For this purpose “procedure” includes all aspects of the allocation
process, including the persons or descriptions of persons by whom
20decisions are taken.

(2) The scheme must include a statement of the authority’s policy on
offering people who are to be allocated housing accommodation—

(a) a choice of housing accommodation; or

(b) the opportunity to express preferences about the housing
25accommodation to be allocated to them.

(3) As regards priorities, the scheme shall, subject to subsection (4), be
framed so as to secure that reasonable preference is given to—

(a) people who are homeless (within the meaning of Part 7);

(b) people who are owed a duty by any local housing authority
30under section 190(2), 193(2) or 195(2) (or under section 65(2) or
68(2) of the Housing Act 1985) or who are occupying
accommodation secured by any such authority under section
192(3);

(c) people occupying insanitary or overcrowded housing or
35otherwise living in unsatisfactory housing conditions;

(d) people who need to move on medical or welfare grounds
(including any grounds relating to a disability); and

(e) people who need to move to a particular locality in the district
of the authority, where failure to meet that need would cause
40hardship (to themselves or to others).

The scheme may also be framed so as to give additional preference to
particular descriptions of people within this subsection (being
descriptions of persons with urgent housing needs).

(4) People are to be disregarded for the purposes of subsection (3) if they
45would not have fallen within paragraph (a) or (b) of that subsection

without the local housing authority having had regard to a restricted
person (within the meaning of Part 7).

(5) The scheme may contain provision for determining priorities in
allocating housing accommodation to people within subsection (3); and
5the factors which the scheme may allow to be taken into account
include—

(a) the financial resources available to a person to meet his housing
costs;

(b) any behaviour of a person (or of a member of his household)
10which affects his suitability to be a tenant;

(c) any local connection (within the meaning of section 199) which
exists between a person and the authority’s district.

(6) Subject to subsection (3), the scheme may contain provision about the
allocation of particular housing accommodation—

(a) 15to a person who makes a specific application for that
accommodation;

(b) to persons of a particular description (whether or not they are
within subsection (3)).

(7) The Secretary of State may by regulations—

(a) 20specify further descriptions of people to whom preference is to
be given as mentioned in subsection (3), or

(b) amend or repeal any part of subsection (3).

(8) The Secretary of State may by regulations specify factors which a local
housing authority in England must not take into account in allocating
25housing accommodation.

(9) The scheme must be framed so as to secure that an applicant for an
allocation of housing accommodation—

(a) has the right to request such general information as will enable
him to assess—

(i) 30how his application is likely to be treated under the
scheme (including in particular whether he is likely to
be regarded as a member of a group of people who are
to be given preference by virtue of subsection (3)); and

(ii) whether housing accommodation appropriate to his
35needs is likely to be made available to him and, if so,
how long it is likely to be before such accommodation
becomes available for allocation to him;

(b) has the right to request the authority to inform him of any
decision about the facts of his case which is likely to be, or has
40been, taken into account in considering whether to allocate
housing accommodation to him; and

(c) has the right to request a review of a decision mentioned in
paragraph (b), or in section 160ZA(9), and to be informed of the
decision on the review and the grounds for it.

(10) 45As regards the procedure to be followed, the scheme must be framed in
accordance with such principles as the Secretary of State may prescribe
by regulations.

(11) Subject to the above provisions, and to any regulations made under
them, the authority may decide on what principles the scheme is to be
framed.

(12) A local housing authority in England must, in preparing or modifying
5its allocation scheme, have regard to—

(a) its current homelessness strategy under section 1 of the
Homelessness Act 2002,

(b) its current tenancy strategy under section 131 of the Localism
Act 2011, and

(c) 10in the case of an authority that is a London borough council, the
London housing strategy.

(13) Before adopting an allocation scheme, or making an alteration to their
scheme reflecting a major change of policy, a local housing authority in
England must—

(a) 15send a copy of the draft scheme, or proposed alteration, to every
private registered provider of social housing and registered
social landlord with which they have nomination arrangements
(see section 159(4)), and

(b) afford those persons a reasonable opportunity to comment on
20the proposals.

(14) A local housing authority in England shall not allocate housing
accommodation except in accordance with their allocation scheme.”

(5) Section 167 (allocation in accordance with allocation scheme) is amended as
follows—

(a) 25in the heading after “scheme” insert “: Wales”,

(b) in subsection (1) after “authority” insert “in Wales”,

(c) in subsection (4) after “authority” insert “in Wales”,

(d) in subsection (7) after “authority” insert “in Wales”,

(e) in subsection (8) after “authority” insert “in Wales”.

(6) 30In section 172(2) (regulations) before “167(3)” insert “166A(7) or”.

(7) In section 174 (index of defined expressions: Part VI) in the entry for “allocation
scheme” before “167” insert “166A and”.

Homelessness

129 Duties to homeless persons

(1) 35Section 193 of the Housing Act 1996 (duty to persons with priority need who
are not homeless intentionally) is amended as follows.

(2) Omit subsection (3A).

(3) For subsection (5) substitute—

“(5) The local housing authority shall cease to be subject to the duty under
40this section if—

(a) the applicant, having been informed by the authority of the
possible consequence of refusal or acceptance and of the right to
request a review of the suitability of the accommodation,

refuses an offer of accommodation which the authority are
satisfied is suitable for the applicant,

(b) that offer of accommodation is not an offer of accommodation
under Part 6 or a private rented sector offer, and

(c) 5the authority notify the applicant that they regard themselves as
ceasing to be subject to the duty under this section.”

(4) In subsection (7) after “refusal” insert “or acceptance”.

(5) In subsection (7AA)—

(a) omit “In a restricted case”,

(b) 10after “informed” insert “in writing”, and

(c) in paragraph (a) for “private accommodation offer” substitute “private
rented sector offer”.

(6) In subsection (7AB)—

(a) in paragraph (a) after “refusal” insert “or acceptance”, and

(b) 15at the end of paragraph (b) insert “, and

(c) in a case which is not a restricted case, the effect under
section 195A of a further application to a local housing
authority within two years of acceptance of the offer.”

(7) In subsection (7AC) for “private accommodation offer” substitute “private
20rented sector offer”.

(8) Omit subsections (7B) to (7E).

(9) In subsection (7F)—

(a) at the end of paragraph (a) insert “or”,

(b) in paragraph (ab) for “private accommodation offer” substitute
25“private rented sector offer”,

(c) omit paragraph (b), and

(d) in the words following that paragraph for “it is reasonable for him to
accept the offer” substitute “subsection (8) does not apply to the
applicant.”

(10) 30For subsection (8) substitute—

“(8) This subsection applies to an applicant if—

(a) the applicant is under contractual or other obligations in respect
of the applicant’s existing accommodation, and

(b) the applicant is not able to bring those obligations to an end
35before being required to take up the offer.”

(11) After subsection (9) insert—

“(10) The appropriate authority may provide by regulations that subsection
(7AC)(c) is to have effect as if it referred to a period of the length
specified in the regulations.

(11) 40Regulations under subsection (10)—

(a) may not specify a period of less than 12 months, and

(b) may not apply to restricted cases.

(12) In subsection (10) “the appropriate authority”—

(a) in relation to local housing authorities in England, means the
Secretary of State;

(b) in relation to local housing authorities in Wales, means the
Welsh Ministers.”

130 5Duties to homeless persons: further amendments

(1) The Housing Act 1996 is amended as follows.

(2) In section 188 after subsection (1) insert—

“(1A) But if the local housing authority have reason to believe that the duty
under section 193(2) may apply in relation to an applicant in the
10circumstances referred to in section 195A(1), they shall secure that
accommodation is available for the applicant’s occupation pending a
decision of the kind referred to in subsection (1) regardless of whether
the applicant has a priority need.”

(3) In section 195—

(a) 15omit subsection (3A), and

(b) in subsection (4B) for “(3A) to” substitute “(4) and”.

(4) After section 195 insert—

“195A Re-application after private rented sector offer

(1) If within two years beginning with the date on which an applicant
20accepts an offer under section 193(7AA) (private rented sector offer),
the applicant re-applies for accommodation, or for assistance in
obtaining accommodation, and the local housing authority—

(a) is satisfied that the applicant is homeless and eligible for
assistance, and

(b) 25is not satisfied that the applicant became homeless
intentionally,

the duty under section 193(2) applies regardless of whether the
applicant has a priority need.

(2) For the purpose of subsection (1), an applicant in respect of whom a
30valid notice under section 21 of the Housing Act 1988 (orders for
possession on expiry or termination of assured shorthold tenancy) has
been given is to be treated as homeless from the date on which that
notice expires.

(3) If within two years beginning with the date on which an applicant
35accepts an offer under section 193(7AA), the applicant re-applies for
accommodation, or for assistance in obtaining accommodation, and the
local housing authority—

(a) is satisfied that the applicant is threatened with homelessness
and eligible for assistance, and

(b) 40is not satisfied that the applicant became threatened with
homelessness intentionally,

the duty under section 195(2) applies regardless of whether the
applicant has a priority need.

(4) For the purpose of subsection (3), an applicant in respect of whom a
45valid notice under section 21 of the Housing Act 1988 has been given is

to be treated as threatened with homelessness from the date on which
that notice is given.

(5) Subsection (1) or (3) does not apply to a case where the local housing
authority would not be satisfied as mentioned in that subsection
5without having regard to a restricted person.

(6) Subsection (1) or (3) does not apply to a re-application by an applicant
for accommodation, or for assistance in obtaining accommodation, if
the immediately preceding application made by that applicant was one
to which subsection (1) or (3) applied.”

(5) 10Section 198 (referral to another local housing authority) is amended as follows.

(6) After subsection (2) insert—

“(2ZA) The conditions for referral of the case to another authority are also met
if—

(a) the application is made within the period of two years
15beginning with the date on which the applicant accepted an
offer from the other authority under section 193(7AA)(private
rented sector offer), and

(b) neither the applicant nor any person who might reasonably be
expected to reside with the applicant will run the risk of
20domestic violence in the district of the other authority.”

(7) In subsection (2A) after “(2)” insert “or (2ZA)”.

(8) In subsection (3) after “(2)” insert “, (2ZA)”.

(9) In section 202(1)(g) (right to request review of decision) for “private
accommodation offer” substitute “private rented sector offer”.

CHAPTER 2 25Social housing: tenure reform

Tenancy strategies

131 Tenancy strategies

(1) A local housing authority in England must prepare and publish a strategy (a
“tenancy strategy”) setting out the matters to which the registered providers of
30social housing in its district are to have regard in formulating policies relating
to—

(a) the kinds of tenancies they grant,

(b) the circumstances in which they will grant a tenancy of a particular
kind,

(c) 35where they grant tenancies for a term certain, the lengths of the terms,
and

(d) the circumstances in which they will grant a further tenancy on the
coming to an end of an existing tenancy.

(2) The tenancy strategy must summarise those policies or explain where they
40may be found.

(3) A local housing authority must have regard to its tenancy strategy in exercising
its housing management functions.

(4) A local housing authority must publish its tenancy strategy before the end of
the period of 12 months beginning with the day on which this section comes
5into force.

(5) A local housing authority must keep its tenancy strategy under review, and
may modify or replace it from time to time.

(6) If a local housing authority modifies its tenancy strategy, it must publish the
modifications or the strategy as modified (as it considers appropriate).

(7) 10A local housing authority must—

(a) make a copy of everything published under this section available at its
principal office for inspection at all reasonable hours, without charge,
by members of the public, and

(b) provide (on payment if required by the authority of a reasonable
15charge) a copy of anything so published to any member of the public
who asks for one.

(8) In this section and section 132 (preparation of tenancy strategy)—

(a) references to a registered provider of social housing for a district are to
a registered provider who grants tenancies of dwelling-houses in that
20district, and

(b) “district”, “dwelling house” and “local housing authority” have the
same meaning as in the Housing Act 1985.

132 Preparation of tenancy strategy

(1) Before adopting a tenancy strategy, or making a modification to it reflecting a
25major change of policy, the authority must—

(a) send a copy of the draft strategy, or proposed modification, to every
private registered provider of social housing for its district, and

(b) give the private registered provider a reasonable opportunity to
comment on those proposals.

(2) 30Before adopting a tenancy strategy, or making a modification to it reflecting a
major change of policy, the authority must also—

(a) consult such other persons as the Secretary of State may by regulations
prescribe, and

(b) in the case of an authority that is a London borough council, consult the
35Mayor of London.

(3) The authority must, in preparing or modifying a tenancy strategy, have regard
to—

(a) its current allocation scheme under section 166A of the Housing Act
1996,

(b) 40its current homelessness strategy under section 1 of the Homelessness
Act 2002, and

(c) in the case of an authority that is a London borough council, the
London housing strategy.

133 Standards about tenancies etc

In section 197 of the Housing and Regeneration Act 2008 (power of Secretary
of State to give directions to regulator) in subsection (2) after paragraph (a)
insert—

“(aa) 5tenure,”.

134 Relationship between schemes and strategies

In section 3 of the Homelessness Act 2002 (homelessness strategy) after
subsection (7) insert—

“(7A) In formulating or modifying a homelessness strategy, a local housing
10authority in England shall have regard to—

(a) its current allocation scheme under section 166A of the Housing
Act 1996,

(b) its current tenancy strategy under section 131 of the Localism
Act 2011, and

(c) 15in the case of an authority that is a London borough council, the
current London housing strategy.”

Flexible tenancies

135 Flexible tenancies

After section 106A of the Housing Act 1985 insert—

20“Flexible tenancies

107A Flexible tenancies

(1) For the purposes of this Act, a flexible tenancy is a secure tenancy to
which any of the following subsections applies.

(2) This subsection applies to a secure tenancy if—

(a) 25it is granted by a landlord in England for a term certain of not
less than two years, and

(b) before it was granted the person who became the landlord
under the tenancy served a written notice on the person who
became the tenant under the tenancy stating that the tenancy
30would be a secure tenancy.

(3) This subsection applies to a secure tenancy if—

(a) it becomes a secure tenancy by virtue of a notice under
paragraph 4ZA(2) of Schedule 1 (family intervention tenancies
becoming secure tenancies),

(b) 35the landlord under the family intervention tenancy in question
was a local housing authority in England,

(c) the family intervention tenancy was granted to a person on the
coming to an end of a flexible tenancy under which the person
was a tenant (“the original flexible tenancy”), and

(d) 40the notice states that the tenancy is to become a secure tenancy
for a term certain that is a flexible tenancy.

(4) This subsection applies to a secure tenancy if—

(a) it is created by virtue of section 137A of the Housing Act 1996
(introductory tenancies becoming flexible tenancies), or

(b) it arises by virtue of section 143MA of that Act (demoted
5tenancies becoming flexible tenancies).

107B Review of decisions relating to flexible tenancies

(1) This section applies if a person (“the prospective landlord”)—

(a) offers to grant a flexible tenancy (whether or not on the coming
to an end of an existing tenancy of any kind), or

(b) 10serves a notice under section 137A of the Housing Act 1996
stating that, on the coming to an end of an introductory tenancy,
it will become a flexible tenancy.

(2) A person to whom the offer is made or on whom the notice is served
(“the person concerned”) may request a review of the prospective
15landlord’s decision about the length of the term of the tenancy.

(3) The review may only be requested on the basis that the length of the
term does not accord with a policy of the prospective landlord as to the
length of the terms of the flexible tenancies it grants.

(4) A request for a review must be made before the end of—

(a) 20the period of 21 days beginning with the day on which the
person concerned first receives the offer or notice, or

(b) such longer period as the prospective landlord may in writing
allow.

(5) On a request being duly made to it, the prospective landlord must
25review its decision.

(6) The Secretary of State may by regulations make provision about the
procedure to be followed in connection with a review under this
section.

(7) The regulations may, in particular, make provision—

(a) 30requiring the decision on the review to be made by a person of
appropriate seniority who was not involved in the original
decision, and

(b) as to the circumstances in which the person concerned is
entitled to an oral hearing, and whether and by whom the
35person may be represented at such a hearing.

(8) The prospective landlord must notify the person concerned in writing
of the decision on the review.

(9) If the decision is to confirm the original decision, the prospective
landlord must also notify the person of the reasons for the decision.

(10) 40Regulations under this section—

(a) may contain transitional or saving provision;

(b) are to be made by statutory instrument which is subject to
annulment in pursuance of a resolution of either House of
Parliament.

107C 45Termination of flexible tenancy by tenant

(1) It is a term of every flexible tenancy that the tenant may terminate the
tenancy in accordance with the following provisions of this section.

(2) The tenant must serve a notice in writing on the landlord stating that
the tenancy will be terminated on the date specified in the notice.

(3) 50That date must be after the end of the period of four weeks beginning
with the date on which the notice is served.

(4) The landlord may agree with the tenant to dispense with the
requirement in subsection (2) or (3).

(5) The tenancy is terminated on the date specified in the notice or (as the
55case may be) determined in accordance with arrangements made under
subsection (4) only if on that date—

(a) no arrears of rent are payable under the tenancy, and

(b) the tenant is not otherwise materially in breach of a term of the
tenancy.

107D 60Recovery of possession on expiry of flexible tenancy

(1) Subject as follows, on or after the coming to an end of a flexible tenancy
a court must make an order for possession of the dwelling-house let on
the tenancy if it is satisfied that the following conditions are met.

(2) Condition 1 is that the flexible tenancy has come to an end and no
65further secure tenancy (whether or not a flexible tenancy) is for the time
being in existence, other than a secure tenancy that is a periodic tenancy
(whether or not arising by virtue of section 86).

(3) Condition 2 is that the landlord has given the tenant not less than six
months’ notice in writing—

(a) 70stating that the landlord does not propose to grant another
tenancy on the expiry of the flexible tenancy,

(b) setting out the landlord’s reasons for not proposing to grant
another tenancy, and

(c) informing the tenant of the tenant’s right to request a review of
75the landlord’s proposal and of the time within which such a
request must be made.

(4) Condition 3 is that the landlord has given the tenant not less than two
months’ notice in writing stating that the landlord requires possession
of the dwelling-house.