(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
5apply in relation to an assured shorthold tenancy of a kind specified in the
regulations.

146 Further provisions about transfer of tenancy under section 145

(1) A landlord may refuse to comply with a request under section 145 only on one
or more of the grounds set out in Schedule 14 (and in that Schedule references
10to 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 145 as not
having refused to comply with the request.

(3) 15A 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 145 is enforceable by injunction.

(5) 20A county court has jurisdiction to entertain any proceedings brought pursuant
to subsection (4).

(6) In section 145, this section and Schedule 14—

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

(b) 25“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
30both 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
allocations do not apply), for the “or” at the end of paragraph (d) substitute—

“(da) is granted in response to a request under section 145 of the
Localism Act 2011 (transfer of tenancy), or”.

147 35Succession to secure tenancies

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

“86A Persons 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) 40P occupies the dwelling-house as P’s only or principal home at
the time of the tenant’s death, and

(b) P 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
5only 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) 10Subsection (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) 15P’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
20partners 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,
25where 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.”

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

(a) 30in the section heading at the end insert “: Wales”, and

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

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

(4) After subsection (1) insert—

“(1A) Where there is a person qualified to succeed the tenant under section
3586A, 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
may be agreed between them or as may, where there is no
agreement, be selected by the landlord.”

(5) 40In subsection (2) after “tenant” insert “under section 87”.

(6) The amendments made by this section do not apply in relation to a secure
tenancy that—

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

(b) came into being by virtue of section 86 of the Housing Act 1985
45(periodic tenancy arising on termination of fixed term) on the coming
to an end of a secure tenancy within paragraph (a).

148 Succession to assured tenancies

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

(2) In the heading for “assured periodic tenancy by spouse” substitute “assured
5tenancy”.

(3) In subsection (1)—

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

(b) omit paragraph (c).

(4) After that subsection insert—

“(1A) 10Subject to subsection (1D), in any case where—

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

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

(ii) 15the tenant is a sole tenant,

(b) the 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) 20an 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) there is a person whose succession is in accordance with that
term,

25then, 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
30a 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) the tenant under the tenancy dies, and

(c) 35immediately before the death, the tenant’s spouse or civil
partner was occupying the dwelling-house as his or her only or
principal 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
40tenant’s will or intestacy).

(1C) 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
45housing, 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
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
5other 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
10person (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
15in 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) 20an 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) 25If, 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) This section does not apply to a fixed term assured tenancy that is a
30lease 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 representatives)
35will or may be entitled to a sum calculated by reference, directly
or indirectly, to the value of the dwelling-house.”

(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) 40came 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).

149 Secure and assured tenancies: recovery of possession after tenant’s death

(1) In section 90 of the Housing Act 1985 (devolution of fixed term secure tenancy)

after subsection (4) insert—

“(5) The following provisions apply where a tenancy that was a secure
tenancy of a dwelling-house in England—

(a) has been vested or otherwise disposed of in the course of the
5administration of the secure tenant’s estate, and

(b) has ceased to be a secure tenancy by virtue of this section.

(6) Subject as follows, the landlord may apply to the court for an order for
possession of the dwelling-house let under the tenancy.

(7) The court may not entertain proceedings for an order for possession
10under this section unless—

(a) the landlord has served notice in writing on the tenant—

(i) stating that the landlord requires possession of the
dwelling-house, and

(ii) specifying a date after which proceedings for an order
15for possession may be begun, and

(b) that date has passed without the tenant giving up possession of
the dwelling-house.

(8) The date mentioned in subsection (7)(a)(ii) must fall after the end of the
period of four weeks beginning with the date on which the notice is
20served on the tenant.

(9) On an application to the court for an order for possession under this
section, the court must make such an order if it is satisfied that
subsection (5) applies to the tenancy.

(10) The tenancy ends when the order is executed.”

(2) 25In Part 3 of Schedule 2 to that Act (grounds on which court may order
possession of dwelling-house let on secure tenancy if reasonable and if
alternative accommodation is available) after Ground 15 insert—

“Ground 15A

The dwelling-house is in England, the accommodation afforded by it
30is more extensive than is reasonably required by the tenant and—

(a) the tenancy vested in the tenant by virtue of section 89
(succession to periodic tenancy) or 90 (devolution of term
certain) in a case where the tenant was not the previous
tenant’s spouse or civil partner, and

(b) 35notice of the proceedings for possession was served under
section 83 (or, where no such notice was served, the
proceedings for possession were begun) more than six
months but less than twelve months after the relevant date.

For this purpose “the relevant date” is—

(a) 40the date of the previous tenant’s death, or

(b) if the court so directs, the date on which, in the opinion of the
court, the landlord (or, in the case of joint landlords, any one
of them) became aware of the previous tenant’s death.

The matters to be taken into account by the court in determining
45whether it is reasonable to make an order on this ground include—

(a) the age of the tenant,

(b) the period (if any) during which the tenant has occupied the
dwelling-house as the tenant’s only or principal home, and

(c) any financial or other support given by the tenant to the
5previous tenant.”

(3) In section 7 of the Housing Act 1988 (orders for possession of assured
tenancies) after subsection (6) insert—

“(6A) In the case of a dwelling-house in England, subsection (6)(a) has effect
as if it also referred to Ground 7 in Part 1 of Schedule 2 to this Act.”

(4) 10In Part 1 of Schedule 2 to that Act (grounds for possession of dwelling-houses
let on assured tenancies: grounds on which court must order possession) in
Ground 7 (devolution of tenancy under will or intestacy)—

(a) in the first unnumbered paragraph, after “tenancy)” insert “, or a fixed
term tenancy of a dwelling-house in England,”,

(b) 15in the second unnumbered paragraph—

(i) omit “periodic”, and

(ii) after “period” insert “or length of term”, and

(c) after that paragraph insert—

“This ground does not apply to a fixed term tenancy that is a
20lease 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
25representatives) will or may be entitled to a sum
calculated by reference, directly or indirectly, to the
value of the dwelling-house.”

150 Assured shorthold tenancies following family intervention tenancies

After section 20B of the Housing Act 1988 insert—

“20C 30Assured shorthold tenancies following family intervention tenancies

(1) An 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
35provider of social housing,

(b) the 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
40regarded as an assured shorthold tenancy.

(2) This section does not apply if the family intervention tenancy was
granted before the coming into force of section 150 of the Localism Act
2011.”

151 Assured shorthold tenancies: notice requirements

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

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

(a) 5it 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) The 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
10than 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) informing the tenant of how to obtain help or advice about the
notice and, in particular, of any obligation of the landlord to
15provide help or advice.”

(2) The 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
20tenancy arising on termination of fixed term) on the coming to an end
of an assured shorthold tenancy within paragraph (a).

152 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) 25In subsection (2)(a) (conditions to be met in relation to tenancies) omit “an
assured 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
30tenancy within subsection (2).”

(4) The 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
35tenancy arising on termination of fixed term) on the coming to an end
of an assured shorthold tenancy within paragraph (a).

153 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
40subsection (1) insert—

“(1A) Section 11 also applies to a lease of a dwelling-house granted on or after
the day on which section 153 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
tenancies: the landlord condition), or

(b) an assured tenancy for a fixed term of seven years or more
5that—

(i) is not a shared ownership lease, and

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

(1B) In subsection (1A)—

• 10“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
  Housing Act 1985; and

• “shared ownership lease” means a lease—

  (a)

  15granted 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
  representatives) will or may be entitled to a sum
  20calculated by reference, directly or indirectly, to the
  value of the dwelling-house.”

CHAPTER 3 Housing finance

154 Abolition of Housing Revenue Account subsidy in England

Schedule 15 (abolition of Housing Revenue Account subsidy in England) has
25effect.

155 Settlement 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
30Housing Revenue Account.

(2) A 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) 35the amounts (if any) that, during such period and on such assumptions
as 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) 40the amounts (if any) that, during such period and on such assumptions
as 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
held 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
5about 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
calculation in relation to a local housing authority is that—

(a) a settlement payment must be made by the Secretary of State to the
10local housing authority,

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

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

156 Further payments

(1) 15This 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
further payment calculated in accordance with the determination must be
made—

(a) 20by the Secretary of State to the local housing authority, or

(b) by the local housing authority to the Secretary of State.

(3) The Secretary of State may make a determination under this section only if
there has been a change in any matter that was taken into account in making—

(a) the determination relating to the settlement payment or a calculation
25under that determination, or

(b) a previous determination under this section relating to the local
housing authority or a calculation under that determination.

(4) A determination under this section may be varied or revoked by a subsequent
determination.

157 30Further provisions about payments

(1) A payment under this Chapter must be made in such instalments, at such times
and in accordance with such arrangements as the Secretary of State may
determine.

(2) Arrangements under subsection (1) may include arrangements for payments
35to be made—

(a) by a person or body other than the Secretary of State to a local housing
authority, or

(b) to a person or body other than the Secretary of State by a local housing
authority.

(3) 40A payment under this Chapter by a local housing authority must be
accompanied by such information as the Secretary of State may require.

(4) The Secretary of State may charge a local housing authority interest, at such
rates and for such periods as the Secretary of State may determine, on any sum

payable by the local housing authority under this Chapter that is not paid by a
time determined under this section for its payment.

(5) The Secretary of State may charge a local housing authority an amount equal
to any additional costs incurred by the Secretary of State as a result of any sum
5payable by the local housing authority under this Chapter not being paid by a
time determined under this section for its payment.

(6) A payment under this Chapter other than a payment under subsection (4) or
(5)—

(a) if made by a local housing authority, is to be treated by the authority as
10capital expenditure for the purposes of Chapter 1 of Part 1 of the Local
Government Act 2003;

(b) if made to a local housing authority, is to be treated by the authority as
a capital receipt for the purposes of that Chapter.

(7) A determination under this Chapter may require a payment to a local housing
15authority made under this Chapter to be used by the authority for a purpose
specified in the determination.

(8) A local housing authority to which such a requirement applies must comply
with it.

(9) In Schedule 4 to the Local Government and Housing Act 1989 (the keeping of
20the housing revenue account) in Part 2 (debits to the account) after item 5
insert—

“Item 5A: sums payable under section 157 of the Localism Act 2011

Sums payable for the year to the Secretary of State under section
157(4) or (5) of the Localism Act 2011 (interest etc charged as a result
25of late payment of settlement payments etc).”

158 Limits on indebtedness

(1) The Secretary of State may from time to time make a determination providing
for the calculation in relation to each local housing authority in England that
keeps a Housing Revenue Account of—

(a) 30the amount of housing debt that, at such time and on such assumptions
as the Secretary of State may determine, is to be treated as held by the
authority, and

(b) the maximum amount of such housing debt that the authority may
hold.

(2) 35A determination under this section may, in particular, provide for all or part of
an amount to be calculated in accordance with a formula or formulae.

(3) A determination under this section may provide for assumptions to be made
in making a calculation whether or not those assumption are, or are likely to
be, borne out by events.

(4) 40A determination under this section may be varied or revoked by a subsequent
determination.

(5) A local housing authority may not hold debt in contravention of a
determination under this section.