Localism Bill (HL Bill 71)

Part 7 London

CHAPTER 1 Housing and regeneration functions

162 Removal of limitations on Greater London Authority’s general power

(1) 5Section 31 of the Greater London Authority Act 1999 (limits of the Authority’s
general power) is amended as follows.

(2) In subsection (3) (prohibition on the Authority incurring expenditure in
providing housing or other services) omit paragraph (a) (provision of
housing).

(3) 10Omit subsection (4) (interpretation of reference to provision of housing).

(4) Before subsection (5) insert—

“(4A) The reference in subsection (3) above to providing any education
services does not include sponsoring Academies or facilitating their
sponsorship.”

163 15New housing and regeneration functions of the Authority

(1) Part 7A of the Greater London Authority Act 1999 is amended as follows.

(2) In the heading to that Part, after “HOUSING” insert “AND REGENERATION”.

(3) Before section 333A insert—

“Functions in relation to land

333ZA 20 Compulsory acquisition of land

(1) The Authority may acquire land in Greater London compulsorily for
the purposes of housing or regeneration.

(2) The Authority may exercise the power in subsection (1) only if the
Secretary of State authorises it to do so.

(3) 25The power in subsection (1) includes power to acquire new rights over
land.

(4) Subsection (5) applies where—

(a) land forming part of a common, open space or allotment is
being acquired under subsection (1), or

(b) 30new rights are being acquired under subsection (1) over land
forming part of a common, open space or allotment.

(5) The power under subsection (1) includes power to acquire land
compulsorily for giving in exchange for that land or those new rights.

(6) Part 1 of Schedule 2 to the Housing and Regeneration Act 2008
35(compulsory acquisition of land by the Homes and Communities
Agency) applies in relation to the acquisition of land under subsection

(1) as it applies in relation to the acquisition of land under section 9 of
that Act.

(7) In that Part of that Schedule as applied by subsection (6)—

(a) references to section 9 of that Act are to be read as references to
5subsection (1),

(b) references to the Homes and Communities Agency are to be
read as references to the Authority, and

(c) references to Part 1 of that Act are to be read as references to this
Part.

(8) 10The provisions of Part 1 of the Compulsory Purchase Act 1965 (other
than section 31) apply, so far as applicable, to the acquisition by the
Authority of land by agreement for the purposes of housing or
regeneration.

(9) In this section—

• 15“allotment” means any allotment set out as a fuel allotment, or a
  field garden allotment, under an Inclosure Act;

• “common” has the meaning given by section 19(4) of the
  Acquisition of Land Act 1981;

• “open space” means any land which is—

  (a)

  20laid out as a public garden,

  (b)

  used for the purposes of public recreation, or

  (c)

  a disused burial ground.

333ZB Powers in relation to land held for housing or regeneration purposes

(1) Schedule 3 to the Housing and Regeneration Act 2008 (powers in
25relation to land of the Homes and Communities Agency) applies in
relation to the Authority and land held by it for the purposes of housing
or regeneration as it applies in relation to the Homes and Communities
Agency and its land.

(2) In that Schedule as applied by subsection (1)—

(a) 30references to the Homes and Communities Agency are to be
read as references to the Authority, and

(b) references to the Homes and Communities Agency’s land are to
the Authority’s land held by it for the purposes of housing or
regeneration.

(3) 35Schedule 4 to that Act (powers in relation to, and for, statutory
undertakers) applies in relation to the Authority and land held by it for
the purposes of housing or regeneration as it applies in relation to the
Homes and Communities Agency and its land.

(4) In that Schedule as applied by subsection (3)—

(a) 40references to the Homes and Communities Agency are to be
read as references to the Authority,

(b) references to the Homes and Communities Agency’s land are to
the Authority’s land held by it for the purposes of housing or
regeneration,

(c) 45references to Part 1 of that Act are to be read as references to this
Part, and

(d) references to the functions of the HCA under Part 1 of that Act
are to be read as references to the functions of the Authority
relating to housing or regeneration.

333ZC Disposal etc of land held for housing and regeneration purposes

(1) 5The Authority may not dispose of land held by it for the purposes of
housing or regeneration for less than the best consideration which can
reasonably be obtained unless the Secretary of State consents.

(2) Consent under subsection (1)—

(a) may be general or specific;

(b) 10may be given unconditionally or subject to conditions.

(3) Subsection (1) does not apply to a disposal by way of a short tenancy if
the disposal consists of—

(a) the grant of a term of not more than 7 years, or

(b) the assignment of a term which, at the date of assignment, has
15not more than 7 years to run.

(4) A disposal of land by the Authority is not invalid merely because any
consent required by subsection (1) has not been given.

(5) A person dealing with—

(a) the Authority, or

(b) 20a person claiming under the Authority,

in relation to any land need not be concerned as to whether any consent
required by subsection (1) has been given.

333ZD Power to enter and survey land

(1) Sections 17 and 18 of the Housing and Regeneration Act 2008 (power to
25enter and survey land) apply in relation to the Authority and land in
Greater London as they apply in relation to the Homes and
Communities Agency and land outside Greater London.

(2) In those sections as applied by subsection (1)—

(a) references to Homes and Communities Agency are to be read as
30references to the Authority,

(b) references to land are to land in Greater London, and

(c) the reference to a proposal for the Homes and Communities
Agency to acquire land is a reference to a proposal for the
Authority to acquire land for the purposes of housing or
35regeneration.

Social housing

333ZE Social housing

(1) Subject to subsection (2), sections 31 to 36 of the Housing and
Regeneration Act 2008 (social housing functions) apply in relation to
40the Authority as they apply in relation to the Homes and Communities
Agency.

(2) In those sections as applied by subsection (1)—

(a) references to the Homes and Communities Agency are to be
read as references to the Authority,

(b) the definition of “social housing assistance” in section 32(13) is
to be read as if the reference to financial assistance given under
section 19 of that Act were to financial assistance given by the
Authority,

(c) 5section 34 is to be read as if subsection (1) were omitted, and

(d) section 35(1) is to be read as if the reference to section 19 of the
Housing and Regeneration Act 2008 were omitted and as if the
reference in paragraph (b) to a dwelling in England outside
Greater London were to a dwelling in Greater London.

(3) 10Sums received by the Authority in respect of repayments of grants
made by it for the purposes of social housing are to be used by it for
those purposes.

333ZF Relationship with the Regulator of Social Housing: general

(1) The Authority must, in the exercise of its housing and regeneration
15functions, co-operate with the Regulator of Social Housing (referred to
in this Part as “the Regulator”).

(2) In particular, the Authority must consult the Regulator on matters
likely to interest the Regulator in the exercise of its social housing
functions.

(3) 20The Regulator must, in the exercise of its social housing functions, co-
operate with the Authority.

(4) In particular, the Regulator must consult the Authority on matters
likely to interest the Authority in the exercise of its housing and
regeneration functions.

333ZG 25 Relationship with the Regulator of Social Housing: directions

(1) The Regulator may direct the Authority not to give financial assistance
in connection with social housing to a specified registered provider of
social housing .

(2) A direction may be given if—

(a) 30the Regulator has decided to hold an inquiry into affairs of the
registered provider of social housing under section 206 of the
Housing and Regeneration Act 2008 (and the inquiry is not
concluded),

(b) the Regulator has received notice in respect of the registered
35provider of social housing under section 145 of that Act, or

(c) the Regulator has appointed an officer of the registered
provider of social housing under section 269 of that Act (and the
person appointed has not vacated office).

(3) A direction may prohibit the Authority from giving assistance of a
40specified kind (whether or not in pursuance of a decision already taken
and communicated to the registered provider of social housing).

(4) A direction may not prohibit grants to a registered provider of social
housing in respect of discounts given by the provider on disposals of
dwellings to tenants.

(5) 45A direction has effect until withdrawn.

(6) In this section the following terms have the same meaning as in Part 2
of the Housing and Regeneration Act 2008—

• “disposal” (see section 273 of that Act);

• “dwelling” (see section 275 of that Act);

• 5“tenant” (see section 275 of that Act).

333ZH Relationship with the Regulator of Social Housing: further
provisions

(1) Subsection (2) applies if the Authority is proposing to give financial
assistance on condition that the recipient provides low cost home
10ownership accommodation.

(2) The Authority must consult the Regulator about the proposals.

(3) The Authority must notify the Regulator at least 14 days before
exercising, in relation to a registered provider of social housing, any of
the powers conferred by section 32(2) to (4) of the Housing and
15Regeneration Act 2008 (recovery etc of social housing assistance).

(4) The Authority must consult the Regulator before making a general
determination under section 32 or 33 of the Housing and Regeneration
Act 2008.

(5) For the purposes of this section a person provides low cost home
20ownership accommodation if (and only if) the person acquires,
constructs or converts any housing or other land for use as low cost
home ownership accommodation or ensures such acquisition,
construction or conversion by another.

(6) In this section “low cost home ownership accommodation” has the
25meaning given by section 70 of the Housing and Regeneration Act 2008.

Exercise of functions in relation to certain property etc

333ZI Exercise of functions by the Authority in relation to certain property
etc

(1) The Authority may do in relation to any property, rights or liabilities,
30or any undertaking, to which this section applies anything that the
Commission for the New Towns or (as the case may be) an urban
development corporation could do in relation to the property, rights or
liabilities or the undertaking.

(2) This section applies to—

(a) 35any property, rights or liabilities that—

(i) have been or are to be transferred to the Authority from
the Homes and Communities Agency by virtue of
section 166 of the Localism Act 2011, and

(ii) were transferred to the Homes and Communities
40Agency from the Commission for the New Towns by
virtue of section 51 of and Schedule 6 to the Housing and
Regeneration Act 2008,

(b) an undertaking, or part of an undertaking, of an urban
development corporation that has been or is to be transferred to
45the Authority by virtue of an agreement under section 165 of the
Local Government, Planning and Land Act 1980,

(c) any property, rights or liabilities of an urban development
corporation that have been or are to be transferred to the
Authority by virtue of an order under section 165B of the Local
Government, Planning and Land Act 1980, and

(d) 5any property, rights or liabilities that—

(i) have been or are to be transferred to the Authority from
the Homes and Communities Agency by virtue of
section 166 of the Localism Act 2011, and

(ii) were transferred to the Homes and Communities
10Agency from an urban development corporation by
virtue of an order under section 165B of the Local
Government, Planning and Land Act 1980.

(3) In any enactment (whenever passed or made) references to the
Authority’s new towns and urban development functions means its
15functions in relation to any property, rights or liabilities, or any
undertaking, to which this section applies (whether exercisable by
virtue of this section or otherwise).

(4) In subsection (4) “enactment” includes an enactment comprised in
subordinate legislation (within the meaning of the Interpretation Act
201978).

Grants for housing and regeneration purposes

333ZJ Grants to the Authority for housing and regeneration purposes

(1) The Secretary of State may pay to the Authority grants of such amounts
as the Secretary of State may, with the Treasury’s consent, determine in
25respect of the exercise of the Authority’s functions relating to housing
and regeneration.

(2) A grant under this section may be paid at such times, or in such
instalments at such times, as the Secretary of State may, with the
Treasury’s consent, determine.

(3) 30A grant under this section may be made subject to such conditions as
the Secretary of State may determine.

(4) Conditions under subsection (3) may, in particular, include—

(a) provision as to the use of the grant;

(b) provision as to the use of any funds generated by activities
35funded by the grant;

(c) provision as to the circumstances in which the whole or part of
the grant must be repaid.”

(4) After section 333D insert—

“Interpretation

333E 40 Interpretation of Part 7A

In this Part—

• “building” means a building or other structure (including a house-
  boat or caravan);

Localism BillPage 156

• “caravan” has the meaning given by section 29(1) of the Caravan
  Sites and Control of Development Act 1960;

• “housing” means a building, or part of a building, occupied or
  intended to be occupied as a dwelling or as more than one
  5dwelling; and includes a hostel which provides temporary
  residential accommodation;

• “land” includes housing or other buildings (and see also the
  definition in Schedule 1 to the Interpretation Act 1978);

• “the Regulator” has the meaning given by section 333ZF(1);

• 10“social housing” (except as part of the expression “social housing
  functions”) has the same meaning as in Part 2 of the Housing
  and Regeneration Act 2008 (see section 68 of that Act).”

164 The London housing strategy

(1) Before section 333A of the Greater London Authority Act 1999 (the London
15housing strategy) insert—

• “The London housing strategy”.

(2) That section is amended as follows.

(3) In subsection (2)(d) for “recommendations” substitute “proposals”.

(4) In subsection (3)—

(a) 20in the opening words for “recommendations” substitute “proposals”,

(b) in paragraph (a) for “Homes and Communities Agency” substitute
“Authority”, and

(c) for paragraph (b) substitute—

“(b) proposals as to the exercise by the Authority of its
25functions of giving housing financial assistance (see
subsection (4) below);”.

(5) For subsection (4) substitute—

“(4) Proposals under subsection (3)(b) above may include—

(a) proposals as to the amount of housing financial assistance to be
30given for different activities or purposes;

(b) proposals as to the number, type and location of houses to be
provided by means of housing financial assistance.”

(6) In subsection (10) in the definition of “housing financial assistance” for the
words from “under” to “2008” substitute “by the Authority”.

(7) 35Section 333D (duties of Homes and Communities Agency) is amended as
follows.

(8) In the heading for “Homes and Communities Agency” substitute “the
Authority”.

(9) In subsection (1) for the words from “Greater London” to “Agency” substitute
40“housing or regeneration, the Authority”.

165 Modification to the Homes and Communities Agency’s functions

(1) The Housing and Regeneration Act 2008 is amended as follows.

(2) In section 2(2) (objects of the Homes and Communities Agency) before the
definition of “good design” insert—

• ““England” does not include Greater London;”.

(3) Section 13 (power of Secretary of State to make designation orders) is amended
5as follows.

(4) In subsection (1) after “England” insert “outside Greater London”.

(5) In subsection (6)—

(a) after “England” insert “or”, and

(b) omit the words from “, a London” to the end of the subsection.

(6) 10In section 14(7) (content of designation orders) in paragraph (a) of the
definition of “relevant functions” omit the words from “, a London” to “of
London,”.

(7) In section 26(2) (duty to act as agent in respect of regeneration and
development) after “England” insert “outside Greater London”.

(8) 15In section 35(1)(b) (duty to give financial assistance in respect of certain
disposals) after “England” insert “outside Greater London”.

166 Transfer of property of Homes and Communities Agency etc

(1) The Secretary of State may at any time make a scheme (a “transfer scheme”)
transferring the property, rights and liabilities of the Homes and Communities
20Agency (“the HCA”) or the Secretary of State that are specified in the scheme
to—

(a) the Greater London Authority,

(b) a functional body,

(c) a company that is a subsidiary of the Greater London Authority,

(d) 25the Secretary of State,

(e) a London borough council, or

(f) the Common Council of the City of London.

(2) The Secretary of State may by order specify another person, or a description of
other persons, to whom property, rights or liabilities of the HCA or the
30Secretary of State may be transferred by a transfer scheme.

(3) In this section—

• ‘“company” means—

  (a)

  a company within the meaning given by section 1(1) of the
  Companies Act 2006, or

  (b)

  35a society registered or deemed to be registered under the Co-
  operative and Community Benefit Societies and Credit Unions
  Act 1965 or the Industrial and Provident Societies Act (Northern
  Ireland) 1969;

• “functional body” has the meaning given by section 424(1) of the Greater
  40London Authority Act 1999;

• “rights” and “liabilities” include rights, or (as the case may be) liabilities,
  in relation to a contract of employment;

• “subsidiary” has the meaning given by section 1159 of the Companies Act
  2006.

167 Abolition of London Development Agency and transfer of its property etc

(1) The London Development Agency ceases to exist on the day on which this
subsection comes into force.

(2) The Secretary of State may at any time make a scheme (a “transfer scheme”)
5transferring the property, rights and liabilities of the London Development
Agency that are specified in the scheme to—

(a) the Greater London Authority,

(b) a functional body,

(c) a company that is a subsidiary of the Greater London Authority,

(d) 10the Secretary of State,

(e) a London borough council, or

(f) the Common Council of the City of London.

(3) Before making a transfer scheme, the Secretary of State must consult the Mayor
of London.

(4) 15The Secretary of State may by order specify another person, or a description of
other persons, to whom property, rights or liabilities of the London
Development Agency may be transferred by a transfer scheme.

(5) In this section—

• ‘“company” means—

  (a)

  20a company within the meaning given by section 1(1) of the
  Companies Act 2006, or

  (b)

  a society registered or deemed to be registered under the Co-
  operative and Community Benefit Societies and Credit Unions
  Act 1965 or the Industrial and Provident Societies Act (Northern
  25Ireland) 1969;

• “functional body” has the meaning given by section 424(1) of the Greater
  London Authority Act 1999;

• “rights” and “liabilities” include rights, or (as the case may be) liabilities,
  in relation to a contract of employment;

• 30“subsidiary” has the meaning given by section 1159 of the Companies Act
  2006.

168 Mayor’s economic development strategy for London

(1) The Greater London Authority Act 1999 is amended as follows.

(2) After section 333E (which is inserted by section 163) insert—

35“ Part 7B Economic development

333F Economic development strategy for London

(1) The Mayor shall prepare and publish a document to be known as the
“Economic development strategy for London”.

(2) 40The Economic development strategy for London is to contain—

(a) the Mayor’s assessment of the economic conditions of Greater
London, and

(b) the Mayor’s policies and proposals for the economic
development and regeneration of Greater London, including
the Mayor’s strategy for—

(i) promoting business efficiency, investment and
5competitiveness in Greater London,

(ii) promoting employment in Greater London, and

(iii) enhancing the development of skills relevant to
employment in Greater London.

The references in this subsection to Greater London include its rural
10parts as well as its non-rural parts.

(3) In preparing or revising the Economic development strategy for
London the Mayor must consult—

(a) such persons as appear to the Mayor to represent employers in
Greater London, and

(b) 15such persons as appear to the Mayor to represent employees in
Greater London.

(4) Each of the functional bodies must in the exercise of any function have
regard to the Economic development strategy for London.

(5) The Secretary of State may give guidance to the Mayor about the
20exercise of the Mayor’s functions in relation to the Economic
development strategy for London with respect to—

(a) the matters to be covered by that strategy or that strategy as
revised, and

(b) the issues to be taken into account in preparing or revising that
25strategy.

(6) The issues mentioned in subsection (5)(b) above include issues relating
to any one or more of the following—

(a) Greater London,

(b) any area of England outside Greater London, and

(c) 30any part of the United Kingdom outside England.

(7) The Mayor is to have regard to any guidance given under subsection (5)
above.

(8) Where the Secretary of State considers—

(a) that the Economic development strategy for London (or any
35part of it) is inconsistent with national policies, or

(b) that the Economic development strategy for London or its
implementation is having, or is likely to have, a detrimental
effect on any area outside Greater London,