Housing and Planning Bill (HL Bill 110)

CHAPTER 2 Vacant high value local authority housing

Payments to Secretary of State by Local Housing Authorities

67 Payments to Secretary of State

(1) 5The Secretary of State may make a determination requiring a local housing
authority in England to make a payment to the Secretary of State in respect of
a financial year.

(2) The amount of the payment must represent an estimate of—

(a) the market value of the authority’s interest in any high value housing
10that is likely to become vacant during the year, less

(b) any costs or other deductions of a kind described in the determination.

(3) For the housing to be taken into account, see section 68.

(4) A determination may only be made in respect of a local housing authority that
keeps a Housing Revenue Account.

(5) 15A determination must set out the method for calculating the amount of the
payment.

(6) A determination may, in particular, provide for all or part of the amount to be
calculated using a formula.

(7) A determination may provide for assumptions to be made in making a
20calculation whether or not those assumptions are, or are likely to be, borne out
by events.

(8) The Secretary of State must by regulations define “high value” for the purposes
of this Chapter.

(9) Regulations under subsection (8) may define “high value” in different ways for
25different areas.

68 Housing to be taken into account

(1) This section is about the housing to be taken into account under section 67(2).

(2) Housing is to be taken into account only if—

(a) it appears in the list in section 74(1) of the Local Government and
30Housing Act 1989 (Housing Revenue Account), and

(b) it is not excluded by regulations made by the Secretary of State.

(3) Where a local housing authority disposes of housing under section 32 or 43 of
the Housing Act 1985 to a private registered provider of social housing the
Secretary of State may for the purposes of this Chapter—

(a) 35treat the local housing authority as still having that housing, and

(b) treat the housing as being likely to become vacant whenever it would
have been likely to become vacant if it had not been disposed of.

(4) A determination under section 67 must identify any housing that the Secretary
of State has taken into account under subsection (3).

69 Procedure for determinations

(1) Before making a determination under section 67 that relates to all local housing
authorities or a description of local housing authority the Secretary of State
must consult such representatives of local government and relevant
5professional bodies as the Secretary of State thinks appropriate.

(2) Before making a determination under section 67 that relates to a particular
local housing authority, the Secretary of State must consult that local housing
authority.

(3) As soon as possible after making a determination under section 67 the
10Secretary of State must send a copy of it to each local housing authority to
which it relates.

(4) Section 87(4) to (7) of the Local Government and Housing Act 1989 (electronic
communications) applies to a determination under this Chapter as it applies to
a determination under Part 6 of that Act.

(5) 15A consultation requirement imposed by this section may be satisfied by
consultation carried out before this Act was passed.

70 More about determinations

(1) A determination under section 67 must be made before the financial year to
which it relates.

(2) 20But the determination may be varied or revoked by a subsequent
determination under that section made before, after or during the financial
year to which it relates.

(3) A determination under section 67 may relate to one financial year or to more
than one financial year.

(4) 25A determination under section 67 may make provision about how and when a
payment is to be made including, in particular, provision for payments by
instalment.

(5) A determination under section 67 may provide for interest to be charged in the
event of late payment.

(6) 30A determination under section 67—

(a) may make different provision for different areas;

(b) may make different provision for different local housing authorities;

(c) may otherwise make different provision for different purposes.

71 Determinations in the first year that section 67 comes into force

35If section 67 comes into force part way through a financial year, then, in relation
to that financial year—

(a) a determination under section 67 may be made at any time (despite
section 70(1)), but

(b) any reference in section 67 to housing becoming vacant during a
40financial year is to be read as limited to housing becoming vacant after
the determination is made (or, in a case where it is varied in accordance
with section 70(2), housing becoming vacant after the original
determination in relation to that financial year is made).

72 Reduction of payment by agreement

(1) The Secretary of State and a local housing authority may enter into an
agreement to reduce the amount that the authority is required to pay because
of a determination under this Chapter.

(2) 5The agreement must include terms and conditions requiring the local housing
authority to use the amount by which the payment is reduced for the provision
of housing or for things that facilitate the provision of housing.

(3) The agreement may include other terms and conditions.

(4) Where the agreement is with a local housing authority in Greater London, it
10must require the authority to ensure that at least two new affordable homes are
provided for each old dwelling.

(5) But if the Greater London Authority has agreed to ensure that a number of the
new affordable homes are provided, that number is to be deducted from the
number for which the local housing authority must be made responsible under
15subsection (4).

(6) The Secretary of State may by regulations create other exceptions to subsection
(4) in relation to one or more local housing authorities.

(7) In this section—

• “new affordable home” means a new dwelling in England that—

  (a)

  20is to be made available for people whose needs are not
  adequately served by the commercial housing market, or

  (b)

  is a starter home as defined by section 2;

• “new dwelling” means a building or part of a building that—

  (a)

  has been constructed for use as a single dwelling and has not
  25previously been occupied, or

  (b)

  has been adapted for use as a single dwelling and has not been
  occupied since its adaptation;

• “old dwelling” means a single dwelling taken into account under section
  67(2) for the purposes of the determination.

(8) 30If a determination under this Chapter relates to more than one financial year—

(a) an agreement under this section may be made in relation to the
determination so far as it relates to a particular financial year, and

(b) if such an agreement is made with a local housing authority in Greater
London, the reference in subsection (7) to the determination is to the
35determination so far as it relates to the financial year to which the
agreement relates.

(9) The Secretary of State may by regulations amend this section so as to change
the meaning of “new affordable home”.

73 Set off against repayments under section 67

40Where the Secretary of State is liable to repay an amount that has been
overpaid by a local housing authority under section 67, the Secretary of State
may set off against the amount of the repayment any amount that the authority
is liable to pay the Secretary of State under—

(a) section 67, or

(b) 45section 11 of the Local Government Act 2003.

Duty to consider selling

74 Duty to consider selling vacant high value housing

(1) A local housing authority in England that keeps a Housing Revenue Account
must consider selling its interest in any high value housing that has become
5vacant.

(2) The duty in subsection (1) applies only in relation to housing that appears in
the list in section 74(1) of the Local Government and Housing Act 1989
(Housing Revenue Account).

(3) The Secretary of State may by regulations exclude housing from the duty in
10subsection (1).

(4) In discharging its duty under subsection (1) a local housing authority must
have regard to any guidance given by the Secretary of State.

Amendments and interpretation

75 Local authority disposal of housing: consent requirements

(1) 15The Housing Act 1985 is amended as follows.

(2) In section 34(4A) (consents to disposals and conditions), after paragraph (ca)
(but before the “and”) insert—

“(cb) any reduction in the amount that the local authority may be
required to pay under section 67 of the Housing and Planning
20Act 2016 (payments to Secretary of State in respect of vacant
high value housing in England) as a result of the disposal;”.”

(3) In section 43(4A) (consents to disposals and conditions), after paragraph (ca)
(but before the “and”) insert—

“(cb) any reduction in the amount that the local authority may be
25required to pay under section 67 of the Housing and Planning
Act 2016 (payments to Secretary of State in respect of vacant
high value housing in England) as a result of the disposal;”.”

76 Set off under section 11 of Local Government Act 2003

(1) Section 11 of the Local Government Act 2003 (use of capital receipts) is
30amended as follows.

(2) In subsection (5), after “an authority” insert “in Wales”.

(3) After subsection (5) insert—

“(5A) Where the Secretary of State is liable to repay an amount that has been
overpaid by a local housing authority in England under this section, the
35Secretary of State may set off against the amount of the repayment any
amount that the authority is liable to pay the Secretary of State under—

(a) this section, or

(b) section 67 of the Housing and Planning Act 2016 (payments in
respect of vacant high value housing).””

77 Interpretation of Chapter

(1) In this Chapter—

• “becomes vacant”: housing in which a local housing authority has an
  interest “becomes vacant” when a tenancy granted by the authority
  5comes to an end and is not renewed expressly or by operation of law
  (but see subsection (2));

• “financial year” means a period of 12 months beginning with 1 April;

• “high value” has the meaning given by regulations under section 67;

• “housing” means a building, or part of a building, which is occupied or
  10intended to be occupied as a dwelling or as more than one dwelling;

• “Housing Revenue Account” has the meaning given by section 74 of the
  Local Government and Housing Act 1989;

• “interest” means a freehold or leasehold interest;

• “local housing authority” has the meaning given by section 1 of the
  15Housing Act 1985;

• “tenancy” includes a licence to occupy.

(2) The Secretary of State may by regulations specify circumstances in which
housing is to be treated as not having become vacant for the purposes of this
Part even if it otherwise would be.

20CHAPTER 3 Rents for high income social tenants

Mandatory rents for local authority tenants

78 Mandatory rents for high income local authority tenants

(1) The Secretary of State may by regulations make provision about the levels of
25rent that an English local housing authority must charge a high income tenant
of social housing in England.

(2) The regulations may, in particular, require the rent—

(a) to be equal to the market rate,

(b) to be a proportion of the market rate, or

(c) 30to be determined by reference to other factors.

(3) The regulations may, in particular, provide for the rent to be different—

(a) for people with different incomes, or

(b) for social housing in different areas.

(4) The regulations may require a local housing authority to have regard to
35guidance given by the Secretary of State when determining rent in accordance
with the regulations.

(5) Regulations under this section are referred to in this Chapter as “rent
regulations”.

79 Meaning of “high income” etc

(1) 40Rent regulations must—

(a) define what is meant by “high income” for the purposes of this Chapter,
and

(b) make provision about how a person’s income is to be calculated.

(2) The regulations may, in particular—

(a) 5define “high income” in different ways for different areas;

(b) specify things that are, or are not, to be treated as income;

(c) make provision about the period by reference to which a person’s
income is to be calculated (which may be a period in the past);

(d) make provision about how a person’s income is to be verified;

(e) 10require a person’s household income (as defined by the regulations) to
be taken into account;

(f) require a local housing authority to have regard to guidance given by
the Secretary of State when calculating or verifying a person’s income.

80 Information about income

(1) 15Rent regulations may give a local housing authority the power to require a
tenant to provide information or evidence for the purpose of determining
whether the local housing authority is obliged by the regulations to charge a
specific level of rent and what that level is.

(2) Rent regulations may require an English local housing authority to charge the
20maximum rent to a tenant who has failed to comply with a requirement.

(3) Regulations made in reliance on subsection (1) may, in particular, make
provision about—

(a) the kind of information or evidence that may be required;

(b) the time within which and the manner and form in which the
25information or evidence is to be provided.

(4) In subsection (1) “tenant” includes prospective tenant.

(5) In subsection (2) “the maximum rent” means the rent that a local housing
authority is required to charge a high income tenant of the premises under
section 78 (or, if regulations under section 78(3)(a) provide for different rents
30for people with different incomes, the rent that a person in the highest income
bracket would be required to pay).

81 HMRC information

(1) HMRC may disclose information for the purpose of enabling a local housing
authority to determine whether it is obliged by rent regulations to charge a
35tenant a specific level of rent and what that level is.

(2) The information may only be disclosed to—

(a) a local housing authority,

(b) the Secretary of State for the purposes of passing the information to
local housing authorities,

(c) 40a public body that has been given the function of passing information
between HMRC and local housing authorities by regulations under
subsection (3), or

(d) a body with which the Secretary of State has made arrangements for the
passing of information between HMRC and local housing authorities.

(3) The Secretary of State may by regulations—

(a) give a public body the function mentioned in subsection (2)(c), and

(b) make provision about the carrying out of that function.

(4) The Secretary of State must obtain HMRC’s consent before making—

(a) 5arrangements under subsection (2)(d), or

(b) regulations under subsection (3).

(5) Information disclosed under this section to the Secretary of State or to a body
mentioned in subsection (2)(c) or (d) may be passed on to a local housing
authority for which it is intended.

(6) 10Information disclosed under this section may not otherwise be further
disclosed without authorisation from HMRC.

(7) Where a person contravenes subsection (6) by disclosing any revenue and
customs information relating to a person whose identity—

(a) is specified in the disclosure, or

(b) 15can be deduced from it,

section 19 of the Commissioners for Revenue and Customs Act 2005 (wrongful
disclosure) applies in relation to that disclosure as it applies in relation to a
disclosure of such information in contravention of section 20(9) of that Act.

(8) In this section—

• 20“HMRC” means the Commissioners for Her Majesty’s Revenue and
  Customs;

• “revenue and customs information relating to a person” has the meaning
  given by section 19(2) of the Commissioners for Revenue and Customs
  Act 2005;

• 25“tenant” includes prospective tenant.

82 Reverting to original rent levels

(1) Rent regulations may include provision for the purpose of ensuring that where
a requirement imposed under section 78(1) ceases to apply, the rent is changed
to what it would have been if the requirement had never applied.

(2) 30Rent regulations may include provision for the purpose of ensuring that
where—

(a) a local housing authority is required by section 80(2) to charge the
maximum rent because of a tenant’s failure to provide information or
evidence, and

(b) 35the tenant subsequently provides the necessary information or
evidence,

the rent is changed to what it would have been if section 80(2) had never
applied.

83 Power to change rents and procedure for changing rents

(1) 40Rent regulations may give a local housing authority power to change the rent
payable under a tenancy for the purpose of complying with the regulations.

(2) Rent regulations may make provision about the procedure for changing rent to
comply with the regulations (whether the change is made using a power given
by regulations under subsection (1) or otherwise).

(3) Regulations made in reliance on subsection (2) may, in particular—

(a) make provision about the review of decisions to increase rent;

(b) give rights of appeal to the First-tier Tribunal and amend existing rights
of appeal.

(4) 5Regulations under this section may amend any provision made by or under an
Act passed before this Act or in the same Session.

84 Payment by local authority of increased income to Secretary of State

(1) Rent regulations may require a local housing authority to make a payment or
payments to the Secretary of State in respect of any estimated increase in rental
10income because of the regulations.

(2) The amount of a payment is to be calculated in accordance with the
regulations.

(3) The regulations may provide for deductions to be made to reflect the
administrative costs of local authorities in implementing the regulations.

(4) 15The regulations may provide for interest to be charged in the event of late
payment.

(5) The regulations may provide for assumptions to be made in making a
calculation, whether or not those assumptions are, or are likely to be, borne out
by events.

(6) 20The regulations may make provision about how and when payments are to be
made including, in particular, provision for payments by instalment.

85 Provision of information to Secretary of State

Rent regulations may give the Secretary of State a power to require a local
housing authority to provide information in connection with the regulations.

86 25Interaction with other legislation and consequential amendments

(1) The Secretary of State must use the power in section 22(4) of the Welfare
Reform and Work Act 2016 to provide that section 21 of that Act does not apply
to a high income tenant of social housing to whom rent regulations apply.

(2) In section 24 of the Housing Act 1985 (rent), after subsection (5) insert—

“(5A) 30See also Chapter 3 of Part 4 of the Housing and Planning Act 2016 (rents
for high income social tenants in England).””

(3) In Part 2 of Schedule 4 to the Local Government and Housing Act 1989 (the
keeping of the Housing Revenue Account: debits), after item 10 insert—

““Item 11: payments under section 84 of the Housing and Planning Act 2016

35Any sums payable for the year to the Secretary of State under
regulations made in reliance on section 84 of the Housing and
Planning Act 2016 (rents for high income social tenants: payment by
local authority of increased income to Secretary of State).”

Private registered providers: rent policies for high income tenants

87 Private providers: policies for high income social tenants

(1) A private registered provider of social housing that has a policy about levels of
rent for high income social tenants in England must publish that policy.

(2) 5The policy must include provision for requesting reviews of, or appealing,
decisions under the policy.

88 HMRC information for private registered providers

(1) HMRC may disclose information for the purpose of enabling a private
registered provider of social housing to apply any relevant policy about levels
10of rent for high income social tenants in England.

(2) The information may only be disclosed to—

(a) the private registered provider of social housing,

(b) the Secretary of State for the purposes of passing the information to
registered providers,

(c) 15a public body that has been given the function of passing information
between HMRC and registered providers by regulations under
subsection (3), or

(d) a body with which the Secretary of State has made arrangements for the
passing of information between HMRC and registered providers.

(3) 20The Secretary of State may by regulations—

(a) give a public body the function mentioned in subsection (2)(c), and

(b) make provision about the carrying out of that function.

(4) The Secretary of State must obtain HMRC’s consent before making—

(a) arrangements under subsection (2)(d), or

(b) 25regulations under subsection (3).

(5) Information disclosed under this section to the Secretary of State or to a body
mentioned in subsection (2)(c) or (d) may be passed on to a registered provider
for which it is intended.

(6) Information disclosed under this section may not otherwise be further
30disclosed without authorisation from HMRC.

(7) Where a person contravenes subsection (6) by disclosing any revenue and
customs information relating to a person whose identity—

(a) is specified in the disclosure, or

(b) can be deduced from it,

35section 19 of the Commissioners for Revenue and Customs Act 2005 (wrongful
disclosure) applies in relation to that disclosure as it applies in relation to a
disclosure of such information in contravention of section 20(9) of that Act.

(8) In this section—

• “HMRC” means the Commissioners for Her Majesty’s Revenue and
  40Customs;

• “relevant”, in relation to a private registered provider’s policy about
  levels of rent for high income social tenants in England, means a policy
  that—

  Housing and Planning BillPage 39

  (a)

  has been published as required by section 87, and

  (b)

  complies with any requirements imposed under subsection (2)
  of that section;

• “revenue and customs information relating to a person” has the meaning
  5given by section 19(2) of the Commissioners for Revenue and Customs
  Act 2005;

• “tenant” includes prospective tenant.

Interpretation

89 Interpretation of Chapter

10In this Chapter—

• “high income” has the meaning given by regulations under section 79;

• “local housing authority” has the meaning given by section 1 of the
  Housing Act 1985;

• “rent” includes payments under a licence to occupy;

• 15“rent regulations” has the meaning given by section 78;

• “social housing” has the same meaning as in Part 2 of the Housing and
  Regeneration Act 2008 (see sections 68 and 72 of that Act);

• “tenancy” includes a licence to occupy;

• “tenant” includes a person who has a licence to occupy.

CHAPTER 4 20Reducing regulation of social housing etc

90 Reducing social housing regulation

Schedule 4 contains amendments to reduce the regulation of social housing.

91 Recovery of social housing assistance: successors in title

(1) Section 33 of the Housing and Regeneration Act 2008 (recovery of social
25housing assistance: interest and successors in title) is amended as follows.

(2) In subsection (6)(b), after “another person” insert “(“the successor”)”.

(3) After subsection (6) insert—

“(6A) But subsection (7) does not apply if—

(a) the successor is a person other than a registered provider of
30social housing, and

(b) at any time since the social housing assistance was given—

(i) a person has enforced a security over the social housing,
or

(ii) the social housing has been disposed of by a body while
35it is being wound up or is in administration.”””

(4) In subsection (7) for “that other person” substitute “the successor”.