Welfare Reform and Work Bill (HL Bill 92)

(a) a registered provider’s interest in property that consists of or
includes social housing was made subject to a mortgage, and

(b) the interest in the property, or the interest in the part that includes
the social housing, is sold or otherwise disposed of after the coming
5into force of Part 1 by—

(i) the mortgagee, in the exercise of the mortgagee’s powers to
enforce the mortgage,

(ii) a receiver appointed by the mortgagee or by the court as
described in sub-paragraph (2)(b), or

(iii) 10a person appointed by the mortgagee as described in sub-
paragraph (2)(c),

Part 1 ceases to apply in relation to that social housing at the time of that sale
or other disposal.

(4) In sub-paragraphs (2) and (3)—

• 15“mortgage” includes a charge or other security;

• “mortgagee” includes a person who is entitled to take steps to enforce
  a charge or other security.

(5) The Secretary of State may by regulations provide for Part 1 not to apply in
cases prescribed by the regulations.

(6) 20Regulations under sub-paragraph (5) may in particular make provision
about—

(a) tenants of a description prescribed by the regulations;

(b) tenancies of a description prescribed by the regulations;

(c) accommodation of a description prescribed by the regulations;

(d) 25accommodation which satisfies conditions prescribed by the
regulations, including conditions relating to the funding of its
building or refurbishment;

(e) events of a description prescribed by the regulations.

(7) Regulations made by virtue of sub-paragraph (6)(a) may include provision
30about tenants whose income exceeds, or whose household’s incomes
exceed, an amount prescribed by the regulations during a period prescribed
by the regulations.

(8) Regulations made by virtue of sub-paragraph (6)(e) may include provision
about periods during a tenancy when the rent payable is temporarily
35reduced or waived.

Exemptions

6 (1) The regulator may issue a direction mentioned in sub-paragraph (2) in
respect of a private registered provider if—

(a) the condition in sub-paragraph (4) or (5) is satisfied, and

(b) 40the Secretary of State consents.

(2) The directions are—

(a) a direction that Part 1 does not apply in relation to a private
registered provider specified in the direction;

(b) a direction that Part 1 is to have effect in relation to a private
45registered provider specified in the direction as if a reference in Part

1 to the social rent rate were a reference to that rate increased by the
percentage specified in the direction;

(c) a direction that Part 1 is to have effect in relation to a private
registered provider specified in the direction as if paragraph 1(4)(c)
5or (5)(c)—

(i) were omitted,

(ii) required the lesser reduction specified in the direction, or

(iii) required the increase specified in the direction;

(d) a direction that Part 1 is to have effect in relation to a private
10registered provider specified in the direction as if—

(i) in paragraph 3(5), “reduced by 1%” were omitted,

(ii) paragraph 3(5) required the lesser reduction specified in the
direction, or

(iii) paragraph 3(5) required the increase specified in the
15direction.

(3) The regulator may specify in a direction—

(a) the period during which it is to have effect, and

(b) the social housing in relation to which it is to have effect.

(4) The condition in this sub-paragraph is that the regulator considers that
20complying with Part 1 would jeopardise the financial viability of the private
registered provider.

(5) The condition in this sub-paragraph is that the circumstances of the private
registered provider satisfy requirements prescribed in regulations made by
the Secretary of State.

(6) 25The regulator may publish a document about the measures that the
regulator considers could be taken by a private registered provider to
comply with Part 1 and to avoid jeopardising its financial viability.

(7) The Secretary of State may issue a direction mentioned in sub-paragraph (8)
in respect of a local authority if the condition in sub-paragraph (10) or (11) is
30satisfied.

(8) The directions are—

(a) a direction that Part 1 does not apply in relation to a local authority
specified in the direction;

(b) a direction that Part 1 is to have effect in relation to a local authority
35specified in the direction as if a reference in Part 1 to the social rent
rate were a reference to that rate increased by the percentage
specified in the direction;

(c) a direction that Part 1 is to have effect in relation to a local authority
specified in the direction as if paragraph 1(4)(c) or (5)(c)—

(i) 40were omitted,

(ii) required the lesser reduction specified in the direction, or

(iii) required the increase specified in the direction;

(d) a direction that Part 1 is to have effect in relation to a local authority
specified in the direction as if—

(i) 45in paragraph 3(5), “reduced by 1%” were omitted,

(ii) paragraph 3(5) required the lesser reduction specified in the
direction, or

(iii) paragraph 3(5) required the increase specified in the
direction.

(9) The Secretary of State may specify in a direction—

(a) the period during which it is to have effect, and

(b) 5the social housing in relation to which it is to have effect.

(10) The condition in this sub-paragraph is that the Secretary of State considers
that the local authority would be unable to avoid serious financial
difficulties if it were to comply with Part 1.

(11) The condition in this sub-paragraph is that the circumstances of the local
10authority satisfy requirements prescribed in regulations by the Secretary of
State.

(12) The Secretary of State may publish a document about the measures that the
Secretary of State considers could be taken by a local authority in order to
comply with Part 1 and to avoid serious financial difficulties.

15Part 3 General

Regulations

7 (1) Regulations under this Schedule must be made by statutory instrument.

(2) A statutory instrument containing regulations under this Schedule is subject
20to annulment in pursuance of a resolution of either House of Parliament.

Guidance

8 (1) The Secretary of State may issue guidance about determining, for the
purposes of paragraph 1(5)(a)(iii) or (iv), what rate of rent is likely to have
been payable by a tenant of particular social housing at a particular time.

(2) 25Registered providers must have regard to guidance issued under sub-
paragraph (1).

Interpretation

9 (1) In this Schedule “the relevant day”, in relation to social housing, means—

(a) 8 July 2015, or

(b) 30if the Secretary of State consents to the use of a different day (“the
permitted review day”) in the case of that social housing, the
permitted review day.

(2) A consent given for the purposes of sub-paragraph (1) may be a consent
given for a particular case or for a description of cases.