Housing and Planning Bill (HL Bill 110)

Section 90

SCHEDULE 4 Reducing social housing regulation

Part 1 Removal of disposal consent requirements

5Housing Act 1985 (c. 68)

1 (1) Section 171D of the Housing Act 1985 (consent to certain disposals of
housing obtained subject to the preserved right to buy) is amended as
follows.

(2) After subsection (2) insert—

“(2ZA) 10Subsection (2) does not apply to a disposal of land by a private
registered provider of social housing.””

(3) In subsection (2A)—

(a) omit paragraph (a);

(b) in paragraph (b), for “any other” substitute “a”.

15Housing Act 1988 (c. 50)

2 The Housing Act 1988 is amended as follows.

3 (1) Section 81 (consent to certain disposals of housing obtained from housing
action trusts) is amended as follows.

(2) In subsection (1), for “section 79(2)(za) or (a)” substitute “section 79(2)(a)”.

(3) 20In subsection (3A)—

(a) omit paragraph (a);

(b) in paragraph (b), for “any other” substitute “a”.

(4) In subsection (7), omit “section 148 or 172 of the Housing and Regeneration
Act 2008,”.

4 (1) 25Section 133 (consent to certain disposals of housing obtained from local
authorities) is amended as follows.

(2) In subsection (1ZA)—

(a) omit paragraph (a);

(b) in paragraph (b), for “any other” substitute “a”.

(3) 30For subsection (1B) substitute—

“(1B) This section does not apply if the original disposal was made to a
private registered provider of social housing.””

(4) In subsection (7), omit “section 148 or 172 of the Housing and Regeneration
Act 2008,”.

Local Government and Housing Act 1989 (c. 42)

5 (1) Section 173 of the Local Government and Housing Act 1989 (consent to
certain disposals of housing obtained from new town corporations) is
amended as follows.

(2) 5After subsection (1) insert—

“(1ZA) Subsection (1) does not apply to a disposal of land by a private
registered provider of social housing.””

(3) In subsection (1A)—

(a) omit paragraph (a);

(b) 10in paragraph (b), for “any other” substitute “a”.

(4) In subsection (7), omit “section 148 or 172 of the Housing and Regeneration
Act 2008,”.

Leasehold Reform, Housing and Urban Development Act 1993 (c. 28)

6 In Schedule 10 to the Leasehold Reform, Housing and Urban Development
15Act 1993 (acquisition of Interests from Local Authorities etc), in paragraph
1(2)(b), for “sections 148 and 172” substitute “section 148”.

Housing and Regeneration Act 2008

7 The Housing and Regeneration Act 2008 is amended as follows.

8 In section 60 (structural overview), in subsection (4), in the final column of
20the entry relating to Chapter 5 of Part 2 of the Act—

(a) for paragraph (b) (Regulator’s consent) substitute—

“(b) Notification of regulator”;”

(b) omit paragraphs (c), (d) and (g).

9 After section 74 insert—

“74A 25Leaving the social housing stock: transfer by private providers

(1) A dwelling ceases to be social housing if a private registered
provider of social housing owns the freehold or a leasehold interest
and transfers it to a person who is not a registered provider of social
housing.

(2) 30Subsection (1) does not apply if and for so long as the private
registered provider has a right to have the interest transferred back
to it.

(3) Subsection (1) does not apply where low cost home ownership
accommodation is transferred to—

(a) 35the “buyer” under equity percentage arrangements (see
section 70(5)), or

(b) the trustees under a shared ownership trust (see section
70(6)).

(4) See section 73 for circumstances when low cost home ownership
40accommodation ceases to be social housing.””

10 (1) Section 75 (leaving the social housing stock) is amended as follows.

(2) Omit subsection (1).

(3) In subsections (2) and (3), for “”Subsections 1 and (1A) do” substitute
“Subsection (1A) does”.

(4) In the heading, after “stock:” insert “local authority”.

11 5In section 119 (de-registration: voluntary), in subsection (5), omit paragraph
(a) and the “and” at the end of that paragraph.

12 In section 149 (moratorium: exempted disposals)—

(a) omit subsection (6);

(b) in subsection (7), for “6” substitute “5”;

(c) 10in subsection (8), for “7” substitute “6”.

13 In section 171 (power to dispose), in subsection (3), omit “(which include
provisions requiring the regulator’s consent for certain disposals)”.

14 For the italic heading above section 172 substitute—

"Notification of regulator".

15 Omit sections 172 to 175 (disposal consents).

16 15For section 176 substitute—

“176 Notification of disposal

(1) If a private registered provider disposes of a dwelling that is social
housing it must notify the regulator.

(2) If a non-profit registered provider disposes of land other than a
20dwelling it must notify the regulator.

(3) Subsection (1) continues to apply to any land of a private registered
provider even if it has ceased to be a dwelling.

(4) The regulator may give directions about—

(a) the period within which notifications under subsection (1) or
25(2) must be given;

(b) the content of those notifications.

(5) The regulator may give directions dispensing with the notification
requirement in subsection (1) or (2).

(6) A direction under this section may be—

(a) 30general, or

(b) specific (whether as to particular registered providers, as to
particular property, as to particular forms of disposal or in
any other way).

(7) A direction dispensing with a notification requirement—

(a) 35may be expressed by reference to a policy for disposals
submitted by a registered provider;

(b) may include conditions.

(8) The regulator must make arrangements for bringing a direction
under this section to the attention of every registered provider to
40which it applies.””

17 Omit section 179 and the italic heading before it (application of provisions of
the Housing Act 1996 that have a connection with disposal consents.)

18 In section 186 (former registered providers), for “to 175” substitute “and 176
(apart from section 176(2))”.

19 5Omit section 187 (change of use, etc).

20 Omit section 190 (consent to disposals under other legislation).

21 In section 278A (power to nominate for consultation purposes), for
paragraph (b) substitute—

“(b) section 176;”.”

10Part 2 Restructuring and dissolution: removal of consent requirements etc

22 The Housing and Regeneration Act 2008 is amended as follows.

23 In section 115 (profit-making and non-profit organisations), in subsection
(9), after “non-profit organisation” insert “or vice versa”.

24 15For section 160 substitute—

“160 Company: arrangements and reconstructions

(1) This section applies to a non-profit registered provider which is a
registered company.

(2)
The registered provider must notify the regulator of any voluntary
20arrangement under Part 1 of the Insolvency Act 1986.

(3) The registered provider must notify the regulator of any order under
section 899 of the Companies Act 2006 (court sanction for
compromise or arrangement).

(4) An order under section 899 of Companies Act 2006 does not take
25effect until the registered provider has confirmed to the registrar of
companies that the regulator has been notified.

(5) The registered provider must notify the regulator of any order under
section 900 of the Companies Act 2006 (powers of court to facilitate
reconstruction or amalgamation).

(6) 30The requirement in section 900(6) of the Companies Act 2006
(sending copy of order to registrar) is satisfied only if the copy is
accompanied by confirmation that the regulator has been notified.””

25 For section 161 substitute—

“161 Company: conversion into registered society

(1) 35This section applies to a non-profit registered provider which is a
registered company.

(2) The registered provider must notify the regulator of any resolution
under section 115 of the Co-operative and Community Benefit
Societies Act 2014 for converting the registered provider into a
40registered society.

(3) The registrar of companies may register a resolution under that
section only if the registered provider has confirmed to the registrar
that the regulator has been notified.

(4) The regulator must decide whether the new body is eligible for
5registration under section 112.

(5) If the new body is eligible for registration, the regulator must register
it and designate it as a non-profit organisation.

(6) If the new body is not eligible for registration, the regulator must
notify it of that fact.

(7) 10Pending registration, or notification that it is not eligible for
registration, the new body is to be treated as if it were registered and
designated as a non-profit organisation.”

26 For section 163 substitute—

“163 Registered society: restructuring

(1) 15This section applies to a non-profit registered provider which is a
registered society.

(2) The registered provider must notify the regulator of any resolution
passed by the society for the purposes of the restructuring provisions
listed in subsection (4).

(3) 20The Financial Conduct Authority may register the resolution only if
the registered provider has confirmed to the Financial Conduct
Authority that the regulator has been notified.

(4) The following provisions of the Co-operative and Community
Benefit Societies Act 2014 are the restructuring provisions—

(a) 25section 109 (amalgamation of societies);

(b) section 110 (transfer of engagements between societies);

(c) section 112 (conversion of society into a company etc).

(5) The regulator must decide whether the body created or to whom
engagements are transferred (“the new body”) is eligible for
30registration under section 112.

(6) If the new body is eligible for registration, the regulator must register
it and designate it as a non-profit organisation.

(7) If the new body is not eligible for registration, the regulator must
notify it of that fact.

(8) 35Pending registration, or notification that it is not eligible for
registration, the new body is to be treated as if it were registered and
designated as a non-profit organisation.””

27 In section 165 (registered society: dissolution), for subsection (2) substitute—

“(2) The registered provider must notify the regulator.

(3) 40The Financial Conduct Authority may register the instrument under
section 121 of that Act, or cause notice of the dissolution to be
advertised under section 122 of that Act, only if the registered

provider has confirmed to the Financial Conduct Authority that the
regulator has been notified.””

28 Omit section 166 (winding up petition by regulator).

29 After section 169 insert—

5““Notification of constitutional changes

169A Registered societies: change of rules

A non-profit registered provider that is a registered society must
notify the regulator of any change to the society’s rules.

169B Charity: change of objects

10The trustees of a registered charity that is a non-profit registered
provider must notify the regulator of any amendment to the
charity’s objects.

169C Companies: change of articles etc

A non-profit registered provider that is a registered company must
15notify the regulator of—

(a) any amendment of the company’s articles of association,

(b) any change to its name or registered office.”

Directions about notifications

169D Directions about notifications

(1) 20The regulator may give directions about—

(a) the period within which notifications under sections 160 to
165 or 169A to 169C must be given by private registered
providers;

(b) the content of those notifications.

(2) 25The regulator may give directions dispensing with notification
requirements imposed by sections 160 to 165 or 169A to 169C.

(3) A direction under this section may be—

(a) general, or

(b) specific (whether as to particular registered providers,
30particular kinds of notification requirement or in any other
way).

(4) A direction dispensing with a notification requirement may include
conditions.

(5) The regulator must make arrangements for bringing a direction
35under this section to the attention of every registered provider to
which it applies.””

30 In section 192 (overview), omit paragraph (c).

31 Omit sections 211 to 214 and the italic heading before section 211
(constitutional changes to non-profit providers).

Part 3 Abolition of disposal proceeds fund

32 The Housing and Regeneration Act 2008 is amended as follows.

33 Omit—

(a) 5sections 177 and 178;

(b) the italic heading before section 177.

34 (1) Section 181 (meaning of “publicly funded” for purposes of provisions about
right to acquire) is amended as follows.

(2) After subsection (2) insert—

“(2A) 10Condition 2 is that—

(a) the dwelling was provided wholly or partly by a person
using an amount for purposes for which the amount was
required to be used by an HCA direction under section 32(4),
and

(b) 15before giving the direction the HCA notified the person that
any dwelling so provided would be regarded as publicly
funded.””

(3) In subsection (3), for “2” substitute “3”.

(4) After subsection (3) insert—

“(3A) 20In relation to a private registered provider, the reference in
subsection (3) to its disposal proceeds fund is to its disposal proceeds
fund before the abolition of that fund by Part 3 of Schedule 4 to the
Housing and Planning Act 2016.””

(5) In subsections (4) and (5), for “3” substitute “4”.

(6) 25In subsection (6), for “4” substitute “5”.

35 Regulations under section 189 in connection with the coming into force of
paragraph 33 may, in particular, include provision to preserve the effect of
sections 177 and 178 of the Housing and Regeneration Act 2008 for a period
in relation to sums in a private registered provider’s disposal proceeds fund
30immediately before that paragraph comes into force (including later interest
added under section 177(7) of that Act).

Part 4 enforcement powers

36 The Housing and Regeneration Act 2008 is amended as follows.

37 35In section 269 (appointment of new officers of non-profit registered
providers) in subsection (1)(c), for “proper management of the body’s
affairs” substitute “to ensure that the registered provider’s affairs are
managed in accordance with legal requirements (imposed by or under an
Act or otherwise)”.

38 40In section 275 (interpretation), for the definition of “mismanagement”

substitute—

• “““mismanagement”, in relation to the affairs of a registered
  provider, means managed in breach of any legal
  requirements (imposed by or under an Act or otherwise);”.”

Section 97

5SCHEDULE 5 Conduct of housing administration: companies

Part 1 Modifications of Schedule B1 to the Insolvency Act 1986

Introductory

1 (1) 10The applicable provisions of Schedule B1 to the Insolvency Act 1986 are to
have effect in relation to a housing administration order that applies to a
company as they have effect in relation to an administration order under
that Schedule applies to a company, but with the modifications set out in this
Part of this Schedule.

(2) 15The applicable provisions of Schedule B1 to the Insolvency Act 1986 are—

(a) paragraphs 1, 40 to 49, 54, 59 to 68, 70 to 75, 79, 83 to 91, 98 to 107, 109
to 111 and 112 to 116, and

(b) paragraph 50 (until the repeal of that paragraph by Schedule 10 to
the Small Business, Enterprise and Employment Act 2015 comes into
20force).

General modifications of the applicable provisions

2 Those paragraphs are to have effect as if—

(a) for “administration application”, in each place, there were
substituted “housing administration application”,

(b) 25for “administration order”, in each place, there were substituted
“housing administration order”,

(c) for “administrator”, in each place, there were substituted “housing
administrator”,

(d) for “enters administration”, in each place, there were substituted
30“enters housing administration”,

(e) for “in administration”, in each place, there were substituted “in
housing administration”, and

(f) for “purpose of administration”, in each place (other than in
paragraph 111(1)), there were substituted “objective of the housing
35administration”.

Specific modifications

3 Paragraph 1 (administration) is to have effect as if—

(a) for sub-paragraph (1) there were substituted—

“(1) In this Schedule “housing administrator”, in relation to a
40company, means a person appointed by the court for the

purposes of a housing administration order to manage its
affairs, business and property.”, and”

(b) in sub-paragraph (2), for “Act” there were substituted “Schedule”.

4 Paragraph 40 (dismissal of pending winding-up petition) is to have effect as
5if sub-paragraphs (1)(b), (2) and (3) were omitted.

5 Paragraph 42 (moratorium on insolvency proceedings) is to have effect as if
sub-paragraphs (4) and (5) were omitted.

6 Paragraph 44 (interim moratorium) is to have effect as if sub-paragraphs (2)
to (4), (6) and (7)(a) to (c) were omitted.

7 10Paragraph 46(6) (date for notifying administrator’s appointment) is to have
effect as if for paragraphs (a) to (c) there were substituted “the date on which
the housing administration order comes into force”.

8 Paragraph 49 (administrator’s proposals) is to have effect as if—

(a) in sub-paragraph (2)(b) for “objective mentioned in paragraph
153(1)(a) or (b) cannot be achieved” there were substituted “objective of
the housing administration should be achieved by means other than
just a rescue of the company as a going concern”, and

(b) in sub-paragraph (4), after paragraph (a) there were inserted—

“(aa) to the Secretary of State and the Regulator of Social
20Housing,”.”

9 Paragraph 54 is to have effect as if the following were substituted for it—

“54 (1) The housing administrator of a company may on one or more
occasions revise the proposals included in the statement made
under paragraph 49 in relation to the company.

(2) 25If the housing administrator thinks that a revision is substantial,
the housing administrator must send a copy of the revised
proposals—

(a) to the registrar of companies,

(b) to the Secretary of State and the Regulator of Social
30Housing,

(c) to every creditor of the company, other than an opted-out
creditor, of whose claim and address the housing
administrator is aware, and

(d) to every member of the company of whose address the
35housing administrator is aware.

(3) A copy sent in accordance with sub-paragraph (2) must be sent
within the prescribed period.

(4) The housing administrator is to be taken to have complied with
sub-paragraph (2)(d) if the housing administrator publishes, in the
40prescribed manner, a notice undertaking to provide a copy of the
revised proposals free of charge to any member of the company
who applies in writing to a specified address.

(5) A housing administrator who fails without reasonable excuse to
comply with this paragraph commits an offence.””

10 45Paragraph 60 (powers of an administrator) has effect as if after that sub-

paragraph (2) there were inserted—

“(3) The housing administrator of a company has the power to act on
behalf of the company for the purposes of provision contained in
any legislation which confers a power on the company or imposes
5a duty on it.

(4) In sub-paragraph (2) “legislation” has the same meaning as in the
Chapter 5 of Part 4 of the Housing and Planning Act 2016.””

11 Paragraph 68 (management duties of an administrator) is to have effect as
if—

(a) 10in sub-paragraph (1), for paragraphs (a) to (c) there were substituted
“the proposals as—

“(a) set out in the statement made under paragraph 49 in
relation to the company, and

(a) from time to time revised under paragraph 54,

15for achieving the objective of the housing administration.”,
and”

(b) in sub-paragraph (3), for paragraphs (a) to (d) there were substituted
“the directions are consistent with the achievement of the objective
of the housing administration”.

12 20Paragraph 73(3) (protection for secured or preferential creditor) is to have
effect as if for “or modified” there were substituted “under paragraph 54”.

13 Paragraph 74 (challenge to administrator’s conduct) is to have effect as if—

(a) for sub-paragraph (2) there were substituted—

“(2) If a company is in housing administration, a person
25mentioned in sub-paragraph (2A) may apply to the court
claiming that the housing administrator is acting in a
manner preventing the achievement of the objective of the
housing administration as quickly and efficiently as is
reasonably practicable.

(2A) 30The persons who may apply to the court are—

(a) the Secretary of State;

(b) with the consent of the Secretary of State, the
Regulator of Social Housing;

(c) a creditor or member of the company.”,”

(b) 35in sub-paragraph (6)—

(i) at the end of paragraph (b) there were inserted “or”, and

(ii) paragraph (c) (and the “or” before it) were omitted, and

(c) after that sub-paragraph there were inserted—

“(7) In the case of a claim made otherwise than by the Secretary
40of State or the Regulator of Social Housing, the court may
grant a remedy or relief or make an order under this
paragraph only if it has given the Secretary of State or the
Regulator a reasonable opportunity of making
representations about the claim and the proposed remedy,
45relief or order.

(8) The court may grant a remedy or relief or make an order
on an application under this paragraph only if it is