Localism Bill (HL Bill 71)

136 Flexible tenancies: other amendments

(1) In section 83(1) of the Housing Act 1985 (proceedings for possession of
dwelling-house let on a secure tenancy: notice requirements) after “section
82(1A)” insert “, other than proceedings under section 107D (recovery of
5possession on expiry of flexible tenancy),”.

(2) In section 84(1) of that Act (grounds and orders for possession of dwelling-
house let on a secure tenancy) at the end insert “or in accordance with section
107D (recovery of possession on expiry of flexible tenancy)”.

(3) In section 97 (tenant’s improvements require consent) after subsection (4)
10insert—

“(5) In this section “secure tenancy” does not include a secure tenancy that
is a flexible tenancy.”

(4) In section 99A of that Act (right to compensation for improvement) after
subsection (8) insert—

“(9) 15In this section—

(a) “secure tenancy” does not include a secure tenancy that is a
flexible tenancy, and

(b) “secure tenant” does not include a tenant under a secure
tenancy that is a flexible tenancy.”

(5) 20In section 117 (index of defined expressions: Part 4) at the appropriate place
insert—

(6) In section 188 (index of defined expressions: Part 5) at the appropriate place
insert—

(7) After section 137 of the Housing Act 1996 (introductory tenancies) insert—

“Introductory tenancies that are to become flexible tenancies

137A Introductory tenancies that are to become flexible tenancies

(1) Where this section applies, a tenancy of a dwelling-house in England
30that ceases to be an introductory tenancy and becomes a secure tenancy
in accordance with this Chapter becomes a flexible tenancy for the
purposes of the Housing Act 1985.

(2) This section applies if, before entering into or adopting the introductory
tenancy, the person who became the landlord under the tenancy served
35a written notice on the person who was or became the tenant under the
tenancy—

(a) stating that, on ceasing to be an introductory tenancy, the
tenancy would become a secure tenancy for a fixed term that
was a flexible tenancy, and

(b) specifying the length of the term of the tenancy.”

(8) In section 143 of that Act (index of defined expressions: introductory tenancies)
at the appropriate place insert—

(9) 5After section 143M of that Act (demoted tenancies) insert—

“Demoted tenancies that are to become flexible tenancies

143MA Demoted tenancies that are to become flexible tenancies

(1) This section applies to a demoted tenancy of a dwelling-house in
England that—

(a) 10was created on the termination of a flexible tenancy, and

(b) ceases to be a demoted tenancy and becomes a secure tenancy
in accordance with this Chapter.

(2) On ceasing to be a demoted tenancy, the tenancy becomes a secure
tenancy for a term certain that is a flexible tenancy.”

(10) 15In section 230 of that Act (minor definitions: general) at the appropriate place
insert—

• ““flexible tenancy” has the meaning given by section 107A of the
  Housing Act 1985;”.

Other provisions relating to tenancies of social housing

137 20Secure and assured tenancies: transfer of tenancy

(1) This section applies if the tenants (“the relevant tenants”) under two or more
tenancies of dwelling-houses in England (“the existing tenancies”) make a
request in writing to the landlord under each existing tenancy asking the
landlord to—

(a) 25permit the relevant tenant or tenants under the existing tenancy to
surrender it, and

(b) grant a new tenancy of the dwelling-house let under the tenancy to
another relevant tenant or other relevant tenants.

(2) The landlord must comply with the request if the following conditions are met.

(3) 30The first condition is that at least one of the existing tenancies is—

(a) a secure tenancy that is not a flexible tenancy, or

(b) an assured tenancy—

(i) which is not an assured shorthold tenancy, and

(ii) under which the landlord is the Regulator of Social Housing, a
35private registered provider of social housing or a housing trust
which is a charity.

(4) The second condition is that at least one of the existing tenancies is—

(a) a secure tenancy that is a flexible tenancy, or

(b) an assured shorthold tenancy under which the landlord is the
Regulator of Social Housing, a private registered provider of social
housing or a housing trust which is a charity.

(5) The third condition is that the remaining existing tenancies (if any) fall within
5subsection (3) or (4).

(6) The fourth condition is that at least one of the existing tenancies to which
subsection (3) applies was granted before the day on which this section came
into force.

(7) The fifth condition is that none of the landlords under the existing tenancies
10has refused to comply with the request (and see further section 138).

(8) Subsection (9) applies where a relevant tenant’s existing tenancy is—

(a) a secure tenancy that is not a flexible tenancy, or

(b) an assured tenancy that is not an assured shorthold tenancy.

(9) The new tenancy granted to the relevant tenant pursuant to this section must
15be—

(a) a secure tenancy that is not a flexible tenancy, or

(b) an assured tenancy that is not an assured shorthold tenancy,

according to the landlord’s capacity to grant a tenancy of either kind.

(10) The Secretary of State may by regulations provide that this section does not
20apply in relation to an assured shorthold tenancy of a kind specified in the
regulations.

138 Further provisions about transfer of tenancy under section 137

(1) A landlord may refuse to comply with a request under section 137 only on one
or more of the grounds set out in Schedule 14 (and in that Schedule references
25to the new tenancy are to the tenancy that the landlord has been requested to
grant under that section).

(2) If the landlord refuses to comply with the request otherwise than on one of
those grounds, the landlord is treated for the purposes of section 137 as not
having refused to comply with the request.

(3) 30A landlord may not rely on any of the grounds set out in Schedule 14 unless
the landlord has, within the period of 42 days beginning with receipt of the
relevant tenants’ request, given each of the tenants a notice specifying the
ground and giving particulars of it.

(4) The duty imposed on a landlord by section 137 is enforceable by injunction.

(5) 35A county court has jurisdiction to entertain any proceedings brought pursuant
to subsection (4).

(6) In section 137, this section and Schedule 14—

(a) “secure tenancy” has the meaning given by section 79 of the Housing
Act 1985,

(b) 40“flexible tenancy” has the meaning given by section 107A of that Act,

(c) “assured tenancy” and “assured shorthold tenancy” have the same
meaning as in Part 1 of the Housing Act 1988, and

(d) other expressions defined in the Housing Act 1985 or the Housing Act
1988 have the same meaning as in that Act (and, if they are defined in
both Acts, have the same meaning as in the Housing Act 1985).

(7) In section 160(1) of the Housing Act 1996 (cases where provisions about
5allocations do not apply), for the “or” at the end of paragraph (d) substitute—

“(da) is granted in response to a request under section 137 of the
Localism Act 2011 (transfer of tenancy), or”.

139 Succession to secure tenancies

(1) Before section 87 of the Housing Act 1985 insert—

“86A 10Persons qualified to succeed tenant: England

(1) A person (“P”) is qualified to succeed the tenant under a secure tenancy
of a dwelling-house in England if—

(a) P occupies the dwelling-house as P’s only or principal home at
the time of the tenant’s death, and

(b) 15P is the tenant’s spouse or civil partner.

(2) A person (“P”) is qualified to succeed the tenant under a secure tenancy
of a dwelling-house in England if—

(a) at the time of the tenant’s death the dwelling-house is not
occupied by a spouse or civil partner of the tenant as his or her
20only or principal home,

(b) an express term of the tenancy makes provision for a person
other than such a spouse or civil partner of the tenant to succeed
to the tenancy, and

(c) P’s succession is in accordance with that term.

(3) 25Subsection (1) or (2) does not apply if the tenant was a successor as
defined in section 88.

(4) In such a case, a person (“P”) is qualified to succeed the tenant if—

(a) an express term of the tenancy makes provision for a person to
succeed a successor to the tenancy, and

(b) 30P’s succession is in accordance with that term.

(5) For the purposes of this section—

(a) a person who was living with the tenant as the tenant’s wife or
husband is to be treated as the tenant’s spouse, and

(b) a person who was living with the tenant as if they were civil
35partners is to be treated as the tenant’s civil partner.

(6) Subsection (7) applies if, on the death of the tenant, there is by virtue of
subsection (5) more than one person who fulfils the condition in
subsection (1)(b).

(7) Such one of those persons as may be agreed between them or as may,
40where there is no such agreement, be selected by the landlord is for the
purpose of this section to be treated (according to whether that one of
them is of the opposite sex to, or of the same sex as, the tenant) as the
tenant’s spouse or civil partner.

(8) This section does not apply to a secure tenancy that—

(a) was entered into before the day on which section 139 of the
Localism Act 2011 came into force, or

(b) came into being by virtue of section 86 (periodic tenancy arising
on termination of fixed term) on the coming to an end of a
5secure tenancy within paragraph (a).”

(2) In section 87 (persons qualified to succeed secure tenant)—

(a) in the section heading at the end insert “: Wales”, and

(b) after “secure tenancy” insert “of a dwelling-house in Wales”.

(3) In section 89 (succession to periodic tenancy) is amended as follows.

(4) 10After subsection (1) insert—

“(1A) Where there is a person qualified to succeed the tenant under section
86A, the tenancy vests by virtue of this section—

(a) in that person, or

(b) if there is more than one such person, in such one of them as
15may be agreed between them or as may, where there is no
agreement, be selected by the landlord.”

(5) In subsection (2) after “tenant” insert “under section 87”.

140 Succession to assured tenancies

(1) Section 17 of the Housing Act 1988 (succession to assured periodic tenancy by
20spouse) is amended as follows.

(2) In the heading for “assured periodic tenancy by spouse” substitute “assured
tenancy”.

(3) In subsection (1)—

(a) at the beginning insert “Subject to subsection (1D),”, and

(b) 25omit paragraph (c).

(4) After that subsection insert—

“(1A) Subject to subsection (1D), in any case where—

(a) there is an assured periodic tenancy of a dwelling-house in
England under which—

(i) 30the landlord is a private registered provider of social
housing, and

(ii) the tenant is a sole tenant,

(b) the tenant under the tenancy dies,

(c) immediately before the death, the dwelling-house was not
35occupied by a spouse or civil partner of the tenant as his or her
only or principal home,

(d) an express term of the tenancy makes provision for a person
other than such a spouse or civil partner of the tenant to succeed
to the tenancy, and

(e) 40there is a person whose succession is in accordance with that
term,

then, on the death, the tenancy vests by virtue of this section in that
person (and, accordingly, does not devolve under the tenant’s will or
intestacy).

(1B) Subject to subsection (1D), in any case where—

(a) there is an assured tenancy of a dwelling-house in England for
a fixed term of not less than two years under which—

(i) the landlord is a private registered provider of social
5housing, and

(ii) the tenant is a sole tenant,

(b) the tenant under the tenancy dies, and

(c) immediately before the death, the tenant’s spouse or civil
partner was occupying the dwelling-house as his or her only or
10principal home,

then, on the death, the tenancy vests by virtue of this section in the
spouse or civil partner (and, accordingly, does not devolve under the
tenant’s will or intestacy).

(1C) Subject to subsection (1D), in any case where—

(a) 15there is an assured tenancy of a dwelling-house in England for
a fixed term of not less than two years under which—

(i) the landlord is a private registered provider of social
housing, and

(ii) the tenant is a sole tenant,

(b) 20the tenant under the tenancy dies,

(c) immediately before the death, the dwelling-house was not
occupied by a spouse or civil partner of the tenant as his or her
only or principal home,

(d) an express term of the tenancy makes provision for a person
25other than such a spouse or civil partner of the tenant to succeed
to the tenancy, and

(e) there is a person whose succession is in accordance with that
term,

then, on the death, the tenancy vests by virtue of this section in that
30person (and accordingly does not devolve under the tenant’s will or
intestacy).

(1D) Subsection (1), (1A), (1B) or (1C) does not apply if the tenant was
himself a successor as defined in subsection (2) or subsection (3).

(1E) In such a case, on the death, the tenancy vests by virtue of this section
35in a person (“P”) (and, accordingly, does not devolve under the tenant’s
will or intestacy) if, and only if—

(a) (in a case within subsection (1)) the tenancy is of a dwelling-
house in England under which the landlord is a private
registered provider of social housing,

(b) 40an express term of the tenancy makes provision for a person to
succeed a successor to the tenancy, and

(c) P’s succession is in accordance with that term.”

(5) In subsection (5) after “(1)(b)” insert “or (1B)(c)”.

(6) After subsection (5) insert—

“(6) 45If, on the death of the tenant, there is more than one person in whom
the tenancy would otherwise vest by virtue of subsection (1A), (1C) or
(1E), the tenancy vests in such one of them as may be agreed between
them or, in default of agreement, as is determined by the county court.”

(7) The amendments made by this section do not apply in relation to an assured
tenancy that—

(a) was granted before the day on which this section comes into force, or

(b) came into being by virtue of section 5 of the Housing Act 1988 (periodic
5tenancy arising on termination of fixed term) on the coming to an end
of an assured shorthold tenancy within paragraph (a).

141 Assured shorthold tenancies following family intervention tenancies

After section 20B of the Housing Act 1988 insert—

“20C Assured shorthold tenancies following family intervention tenancies

(1) 10An assured tenancy that arises by virtue of a notice under paragraph
12ZA(2) of Schedule 1 in respect of a family intervention tenancy is an
assured shorthold tenancy if—

(a) the landlord under the assured tenancy is a private registered
provider of social housing,

(b) 15the family intervention tenancy was granted to a person on the
coming to an end of an assured shorthold tenancy under which
the person was a tenant, and

(c) the notice states that the family intervention tenancy is to be
regarded as an assured shorthold tenancy.

(2) 20This section does not apply if the family intervention tenancy was
granted before the coming into force of section 141 of the Localism Act
2011.”

142 Assured shorthold tenancies: notice requirements

(1) In section 21 of the Housing Act 1988 (recovery of possession on expiry or
25termination of assured shorthold tenancy) after subsection (1) insert—

“(2A) Subsection (2B) applies to an assured shorthold tenancy if—

(a) it is a fixed term tenancy for a term certain of not less than two
years, and

(b) the landlord is a private registered provider of social housing.

(2B) 30The court may not make an order for possession of the dwelling-house
let on the tenancy unless the landlord has given to the tenant not less
than six months’ notice in writing—

(a) stating that the landlord does not propose to grant another
tenancy on the expiry of the fixed term tenancy, and

(b) 35 informing the tenant of how to obtain help or advice about the
notice and, in particular, of any obligation of the landlord to
provide help or advice.”

(2) The amendments made by this section do not apply in relation to an assured
shorthold tenancy that—

(a) 40was granted before the day on which this section comes into force, or

(b) came into being by virtue of section 5 of the Housing Act 1988 (periodic
tenancy arising on termination of fixed term) on the coming to an end
of an assured shorthold tenancy within paragraph (a).

143 Assured shorthold tenancies: rights to acquire

(1) Section 180 of the Housing and Regeneration Act 2008 (social housing: right to
acquire) is amended as follows.

(2) In subsection (2)(a) (conditions to be met in relation to tenancies) omit “an
5assured shorthold tenancy or”.

(3) After subsection (2) insert—

“(2A) 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).”

(4) 10The amendments made by this section do not apply in relation to an assured
shorthold tenancy that—

(a) was granted before the day on which this section comes into force, or

(b) came into being by virtue of section 5 of the Housing Act 1988 (periodic
tenancy arising on termination of fixed term) on the coming to an end
15of an assured shorthold tenancy within paragraph (a).

144 Repairing obligations in leases of seven years or more

In section 13 of the Landlord and Tenant Act 1985 (leases to which the
provisions about repairing obligations in section 11 of that Act apply) after
subsection (1) insert—

“(1A) 20Section 11 also applies to a lease of a dwelling-house granted on or after
the day on which section 144 of the Localism Act 2011 came into force
which is—

(a) a secure tenancy for a fixed term of seven years or more granted
by a person within section 80(1) of the Housing Act 1985 (secure
25tenancies: the landlord condition), or

(b) an assured tenancy for a fixed term of seven years or more
that—

(i) is not a shared ownership lease, and

(ii) is granted by a private registered provider of social
30housing.

(1B) In subsection (1A)—

• “assured tenancy” has the same meaning as in Part 1 of the
  Housing Act 1988;

• “secure tenancy” has the meaning given by section 79 of the
  35Housing Act 1985; and

• “shared ownership lease” means a lease—

  (a)

  granted on payment of a premium calculated by
  reference to a percentage of the value of the dwelling-
  house or of the cost of providing it, or

  (b)

  40under which the lessee (or the lessee’s personal
  representatives) will or may be entitled to a sum
  calculated by reference, directly or indirectly, to the
  value of the dwelling-house.”

CHAPTER 3 Housing finance

145 Abolition of Housing Revenue Account subsidy in England

Schedule 15 (abolition of Housing Revenue Account subsidy in England) has
effect.

146 5Settlement payments

(1) The Secretary of State may make a determination providing for the calculation
of the amount of a payment (referred to in this Chapter as a “settlement
payment”) in relation to each local housing authority in England that keeps a
Housing Revenue Account.

(2) 10A determination under this section may, in particular, provide for all or part of
the amount to be calculated in accordance with a formula or formulae.

(3) In determining a formula for this purpose, the Secretary of State may, in
particular, include variables framed by reference to—

(a) the amounts (if any) that, during such period and on such assumptions
15as the Secretary of State may determine, are to be treated as amounts
that will be received by the local housing authority in connection with
the exercise of its functions relating to houses and other property
within its Housing Revenue Account,

(b) the amounts (if any) that, during such period and on such assumptions
20as the Secretary of State may determine, are to be treated as amounts
that will be paid by the authority in connection with the exercise of
those functions, and

(c) the amount (if any) that, at such time and on such assumptions as the
Secretary of State may determine, is to be treated as the amount of debt
25held by the authority in connection with the exercise of those functions.

(4) A determination under this section may provide for an assumption to be made
about an amount whether or not the assumption is, or is likely to be, borne out
by events.

(5) A determination under this section may provide that the effect of the
30calculation in relation to a local housing authority is that—

(a) a settlement payment must be made by the Secretary of State to the
local housing authority,

(b) a settlement payment must be made by the local housing authority to
the Secretary of State, or

(c) 35the amount of a settlement payment in relation to that authority is nil.

147 Further payments

(1) This section applies if a settlement payment has been made in respect of a local
housing authority.

(2) The Secretary of State may from time to time make a determination that a
40further payment calculated in accordance with the determination must be
made—

(a) by the Secretary of State to the local housing authority, or