Localism Bill (HL Bill 90)

CHAPTER 2 Social housing: tenure reform

Tenancy strategies

137 Tenancy strategies

(1) A local housing authority in England must prepare and publish a strategy (a
5“tenancy strategy”) setting out the matters to which the registered providers of
social 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
10kind,

(c) where 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) 15The tenancy strategy must summarise those policies or explain where they
may 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
20the period of 12 months beginning with the day on which this section comes
into 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
25modifications or the strategy as modified (as it considers appropriate).

(7) A 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) 30provide (on payment if required by the authority of a reasonable
charge) a copy of anything so published to any member of the public
who asks for one.

(8) In this section and section 138 (preparation of tenancy strategy)—

(a) references to a registered provider of social housing for a district are to
35a registered provider who grants tenancies of dwelling-houses in that
district, and

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

138 Preparation of tenancy strategy

(1) 40Before adopting a tenancy strategy, or making a modification to it reflecting a
major 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) 5Before 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
10Mayor 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) 15its 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.

139 Standards about tenancies etc

20In 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) tenure,”.

140 Relationship between schemes and strategies

25In section 3 of the Homelessness Act 2002 (homelessness strategy) after
subsection (7) insert—

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

(a) its current allocation scheme under section 166A of the Housing
30Act 1996,

(b) its current tenancy strategy under section 137 of the Localism
Act 2011, and

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

35Flexible tenancies

141 Flexible tenancies

After section 106A of the Housing Act 1985 insert—

“Flexible tenancies

107A Flexible tenancies

(1) 40For 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) it 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
5under the tenancy served a written notice on the person who
became the tenant under the tenancy stating that the tenancy
would be a flexible tenancy.

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

(a) it becomes a secure tenancy by virtue of a notice under
10paragraph 4ZA(2) of Schedule 1 (family intervention tenancies
becoming secure tenancies),

(b) the 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
15coming to an end of a flexible tenancy under which the person
was a tenant,

(d) the notice states that the tenancy is to become a secure tenancy
that is a flexible tenancy for a term certain of the length specified
in the notice, and sets out the other express terms of the tenancy,
20and

(e) the length of the term specified in the notice is at least two years.

(4) The length of the term of a flexible tenancy that becomes such a tenancy
by virtue of subsection (3) is that specified in the notice under
paragraph 4ZA(2) of Schedule 1.

(5) 25The other express terms of the flexible tenancy are those set out in the
notice, so far as those terms are compatible with the statutory
provisions relating to flexible tenancies; and in this subsection
“statutory provision” means any provision made by or under an Act.

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

(a) 30it 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
tenancies becoming flexible tenancies).

107B Review of decisions relating to flexible tenancies

(1) 35This 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) serves a notice under section 137A of the Housing Act 1996
stating that, on the coming to an end of an introductory tenancy,
40it 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
landlord’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
45term 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) the 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) 5On a request being duly made to it, the prospective landlord must
review 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) 10The regulations may, in particular, make provision—

(a) requiring 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
15entitled to an oral hearing, and whether and by whom the
person 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
20landlord must also notify the person of the reasons for the decision.

(10) Regulations 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
25Parliament.

107C Termination 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
30the tenancy will be terminated on the date specified in the notice.

(3) That 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) 35The tenancy is terminated on the date specified in the notice or (as the
case 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
40tenancy.

107D Recovery 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
further 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) 5Condition 2 is that the landlord has given 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 flexible tenancy,

(b) setting out the landlord’s reasons for not proposing to grant
10another tenancy, and

(c) informing the tenant of the tenant’s right to request a review of
the 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
15months’ notice in writing stating that the landlord requires possession
of the dwelling-house.

(5) A notice under subsection (4) may be given before or on the day on
which the tenancy comes to an end.

(6) The court may refuse to grant an order for possession under this section
20if—

(a) the tenant has in accordance with section 107E requested a
review of the landlord’s proposal not to grant another tenancy
on the expiry of the flexible tenancy, and

(b) the court is satisfied that the landlord has failed to carry out the
25review in accordance with provision made by or under that
section or that the decision on the review is otherwise wrong in
law.

(7) If a court refuses to grant an order for possession by virtue of
subsection (6) it may make such directions as to the holding of a review
30or further review under section 107E as it thinks fit.

(8) This section has effect notwithstanding that, on the coming to an end of
the flexible tenancy, a periodic tenancy arises by virtue of section 86.

(9) Where a court makes an order for possession of a dwelling-house by
virtue of this section, any periodic tenancy arising by virtue of section
3586 on the coming to an end of the flexible tenancy comes to an end
(without further notice and regardless of the period) in accordance with
section 82(2).

(10) This section is without prejudice to any right of the landlord under a
flexible tenancy to recover possession of the dwelling-house let on the
40tenancy in accordance with this Part.

107E Review of decision to seek possession

(1) A request for a review of a landlord’s decision to seek an order for
possession of a dwelling-house let under a flexible tenancy must be
made before the end of the period of 21 days beginning with the day on
45which the notice under section 107D(3) is served.

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

(3) The review must, in particular, consider whether the decision is in
accordance with any policy of the landlord as to the circumstances in
which it will grant a further tenancy on the coming to an end of an
existing flexible tenancy.

(4) 5The Secretary of State may by regulations make provision about the
procedure to be followed in connection with a review under this
section.

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

(a) requiring the decision on the review to be made by a person of
10appropriate 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
person may be represented at such a hearing.

(6) 15The landlord must notify the tenant in writing of the decision on the
review.

(7) If the decision is to confirm the original decision, the landlord must also
notify the tenant of the reasons for the decision.

(8) The review must be carried out, and the tenant notified, before the date
20specified in the notice of proceedings as the date after which
proceedings for the possession of the dwelling-house may be begun.

(9) Regulations under this section—

(a) may contain transitional or saving provision;

(b) are to be made by statutory instrument which is subject to
25annulment in pursuance of a resolution of either House of
Parliament.”

142 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
3082(1A)” insert “, other than proceedings under section 107D (recovery of
possession 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) 35In section 97 of that Act (tenant’s improvements require consent) after
subsection (4) insert—

“(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
40subsection (8) insert—

“(9) In 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
45tenancy that is a flexible tenancy.”

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

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

5“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
that ceases to be an introductory tenancy and becomes a secure tenancy
in accordance with this Chapter becomes a flexible tenancy for a term
10certain.

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

(a) 15stating that, on ceasing to be an introductory tenancy, the
tenancy would become a secure tenancy that would be a flexible
tenancy for a term certain of the length specified in the notice,

(b) specifying a period of at least two years as the length of the term
of the tenancy, and

(c) 20setting out the other express terms of the tenancy.

(3) The length of the term of a flexible tenancy that becomes such a tenancy
by virtue of this section is that specified in the notice under subsection
(2).

(4) The other express terms of the flexible tenancy are those set out in the
25notice, so far as those terms are compatible with the statutory
provisions relating to flexible tenancies; and in this subsection
“statutory provision” means any provision made by or under an Act.”

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

“Demoted tenancies that are to become flexible tenancies

143MA 30 Demoted tenancies that are to become flexible tenancies

(1) Subsection (2) applies to a demoted tenancy of a dwelling-house in
England that—

(a) was created on the termination of a flexible tenancy within the
meaning of section 107A of the Housing Act 1985, and

(b) 35ceases to be a demoted tenancy and becomes a secure tenancy
in accordance with this Chapter.

(2) If the landlord has served a notice within subsection (3) on the tenant
before the end of the demoted tenancy then, on ceasing to be a demoted
tenancy, the tenancy becomes a secure tenancy for a term certain that is
40a flexible tenancy.

(3) The notice must—

(a) state that, on ceasing to be a demoted tenancy, the tenancy will
become a secure tenancy that is a flexible tenancy for a term
certain of the length specified in the notice,

(b) specify a period of at least two years as the length of the term of
5the tenancy, and

(c) set out the other express terms of the tenancy.

(4) The length of the term of a flexible tenancy that becomes such a tenancy
by virtue of this section is that specified in the notice under subsection
(3).

(5) 10The other express terms of the flexible tenancy are those set out in the
notice, so far as those terms are compatible with the statutory
provisions relating to flexible tenancies; and in this subsection
“statutory provision” means any provision made by or under an Act.”

Other provisions relating to tenancies of social housing

143 15Creation of tenancies of social housing

(1) In section 52 of the Law of Property Act 1925 (requirement that conveyances of
land and interests in land be made by deed) in subsection (2) (exceptions) after
paragraph (d) insert—

“(da) flexible tenancies;

(db) 20assured tenancies of dwelling-houses in England that are
granted by private registered providers of social housing and
are not long tenancies or shared ownership leases;”.

(2) After that subsection insert—

“(3) In this section—

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

• “dwelling-house” has the same meaning as in Part 1 of the
  Housing Act 1988;

• “flexible tenancy” has the meaning given by section 107A of the
  30Housing Act 1985;

• “long tenancy” means a tenancy granted for a term certain of more
  than 21 years, whether or not it is (or may become) terminable
  before the end of that term by notice given by the tenant or by
  re-entry or forfeiture;

• 35“shared ownership lease” means a lease of a dwelling-house—

  (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)

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

144 Registration of tenancies of social housing

(1) The Land Registration Act 2002 is amended as follows.

(2) In section 3 (voluntary registration of title) after subsection (4) insert—

“(4A) A person may not make an application under subsection (2) in respect
of a leasehold estate in land under a relevant social housing tenancy.”

(3) In section 4 (compulsory registration of title) after subsection (5) insert—

“(5A) 5Subsection (1) does not apply to the transfer or grant of a leasehold
estate in land under a relevant social housing tenancy.”

(4) In section 27 (dispositions required to be registered) after subsection (5)
insert—

“(5A) This section does not apply to—

(a) 10the grant of a term of years absolute under a relevant social
housing tenancy, or

(b) the express grant of an interest falling within section 1(2) of the
Law of Property Act 1925, where the interest is created for the
benefit of a leasehold estate in land under a relevant social
15housing tenancy.”

(5) In section 33 (interests in respect of which notice may not be entered on the
register) after paragraph (b) insert—

“(ba) an interest under a relevant social housing tenancy,”.

(6) In section 132(1) (interpretation) at the appropriate places insert—

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

• ““dwelling-house” has the same meaning as in Part 1 of the
  Housing Act 1988;”;

• ““flexible tenancy” has the meaning given by section 107A of the
  25Housing Act 1985;”;

• ““long tenancy” means a tenancy granted for a term certain of
  more than 21 years, whether or not it is (or may become)
  terminable before the end of that term by notice given by the
  tenant or by re-entry or forfeiture;”;

• 30““relevant social housing tenancy” means—

  (a)

  a flexible tenancy, or

  (b)

  an assured tenancy of a dwelling-house in England
  granted by a private registered provider of social
  housing, other than a long tenancy or a shared
  35ownership lease;”;

• ““shared ownership lease” means a lease of a dwelling-house—

  (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;”.

(7) In Schedule 1 (unregistered interests which override first registration) after

paragraph 1 insert—

“Relevant social housing tenancies

1A A leasehold estate in land under a relevant social housing tenancy.”

(8) In Schedule 3 (unregistered interests which override registered dispositions)
5after paragraph 1 insert—

“Relevant social housing tenancies

1A A leasehold estate in land under a relevant social housing tenancy.”

145 Secure and assured tenancies: transfer of tenancy

(1) This section applies if the tenants (“the relevant tenants”) under two or more
10tenancies 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) permit the relevant tenant or tenants under the existing tenancy to
surrender it, and

(b) 15grant 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) The first condition is that at least one of the existing tenancies is—

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

(b) 20an assured tenancy—

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

(ii) 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.

(4) 25The 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) 30The third condition is that the remaining existing tenancies (if any) fall within
subsection (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) 35The fifth condition is that none of the landlords under the existing tenancies
has refused to comply with the request (and see further section 146).

(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) 40The new tenancy granted to the relevant tenant pursuant to this section must
be—