Housing Bill

House of Commons

Session 2003 - 04
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Other Bills before Parliament

Housing Bill

Housing Bill
Part 6 — Other provisions about housing
Chapter 2 — Discounts on disposals not involving right to buy
113

(4)
Subsection (5), however, applies in any such case if the first relevant disposal
by the purchaser to which the covenant for repayment of discount applies
takes place on or after the day on which this section comes into force.
(5)
In the following provisions—
(a)
section 11(2) of the Housing Act 1996 (c. 52) (as it has effect without the
5
amendments made by this section), and
(b)
any covenant for repayment of discount,

any reference (however expressed) to a person being liable to pay an amount
to the landlord on demand is to be read as a reference to his being liable to pay
to the landlord so much of that amount (if any) as the landlord may demand.
10
(6)
In subsections (4) and (5) “covenant for repayment of discount” means the
covenant contained in a conveyance, grant or assignment in accordance with
section 11 of that Act.
162
Repayment of discount: deferred resale agreements
(1)
After section 15 of the Housing Act 1996 insert—
15
“15A Treatment of deferred resale agreements for purposes of section 11
(1)
If a purchaser or his successor in title enters into an agreement within
subsection (3), any liability arising under the covenant required by
section 11 shall be determined as if a relevant disposal which is not an
exempted disposal had occurred at the appropriate time.
20
(2)
In subsection (1) “the appropriate time” means—
(a)
the time when the agreement is entered into, or
(b)
if it was made before the beginning of the discount repayment
period, immediately after the beginning of that period.
(3)
An agreement is within this subsection if it is an agreement between the
25
purchaser or his successor in title and any other person—
(a)
which is made (expressly or impliedly) in contemplation of, or
in connection with, a disposal to be made, or made, by virtue of
section 8,
(b)
which is made before the end of the discount repayment period,
30
and
(c)
under which a relevant disposal which is not an exempted
disposal is or may be required to be made to any person after
the end of that period.
(4)
Such an agreement is within subsection (3)—
35
(a)
whether or not the date on which the relevant disposal is to take
place is specified in the agreement, and
(b)
whether or not any requirement to make that disposal is or may
be made subject to the fulfilment of any condition.
(5)
The Secretary of State may by order provide—
40
(a)
for subsection (1) to apply to agreements of any description
specified in the order in addition to those within subsection (3);
(b)
for subsection (1) not to apply to agreements of any description
so specified to which it would otherwise apply.
(6)
An order under subsection (5)—
45

Housing Bill
Part 6 — Other provisions about housing
Chapter 2 — Discounts on disposals not involving right to buy
114

(a)
may make different provision with respect to different cases or
descriptions of case; and
(b)
shall be made by statutory instrument which shall be subject to
annulment in pursuance of a resolution of either House of
Parliament.
5
(7)
In this section—

“agreement” includes arrangement;

“the discount repayment period” means the period of three or five
years that applies for the purposes of section 11(2) (depending
on whether an offer such as is mentioned in section 161(3) of the
10
Housing Act 2004 was made before or on or after the coming
into force of that section).”
(2)
The amendment made by this section does not apply in relation to any
agreement or arrangement made before the day on which this section comes
into force.
15
Discounts on disposals by housing action trusts
163
Repayment of discount: periods and amounts payable
(1)
Schedule 11 to the Housing Act 1988 (c. 50) (provisions applicable to certain
disposals of houses) is amended as follows.
(2)
In paragraph 1(2) for the words from “to pay to the housing action trust” to the
20
end of the sub-paragraph substitute “to the following effect.”
(3)
After paragraph 1(2) insert—
     “(3)
The covenant shall be to pay to the housing action trust such sum (if
any) as the trust may demand in accordance with sub-paragraph (4)
on the occasion of the first relevant disposal (other than an exempted
25
disposal) which takes place within the period of five years beginning
with the conveyance, grant or assignment.
      (4)
The trust may demand such sum as it considers appropriate, up to
and including the maximum amount specified in this paragraph.
      (5)
The maximum amount which may be demanded by the trust is a
30
percentage of the price or premium paid for the first relevant
disposal which is equal to the percentage discount given to the
purchaser in respect of the disposal of the house under section 79.
      (6)
But for each complete year which has elapsed after the conveyance,
grant or assignment and before the first relevant disposal the
35
maximum amount which may be demanded by the trust is reduced
by one-fifth.
      (7)
Sub-paragraphs (4) to (6) are subject to paragraph 1A.
Increase in value of house attributable to home improvements
1A    (1)
In calculating the maximum amount which may be demanded by the
40
housing action trust under paragraph 1, such amount (if any) of the
price or premium paid for the first relevant disposal which is
attributable to improvements made to the house—
(a)
by the person by whom the disposal is, or is to be, made, and

Housing Bill
Part 6 — Other provisions about housing
Chapter 2 — Discounts on disposals not involving right to buy
115

(b)
after the conveyance, grant or assignment and before the
disposal,

shall be disregarded.
      (2)
The amount to be disregarded under this paragraph shall be such
amount as may be agreed between the parties or determined by the
5
district valuer.
      (3)
The district valuer shall not be required by virtue of this paragraph
to make a determination for the purposes of this paragraph unless—
(a)
it is reasonably practicable for him to do so; and
(b)
his reasonable costs in making the determination are paid by
10
the person by whom the disposal is, or is to be, made.
      (4)
If the district valuer does not make a determination for the purposes
of this paragraph (and in default of an agreement), no amount is
required to be disregarded under this paragraph.”
(4)
The amendments made by this section do not apply in any case where—
15
(a)
the purchaser has accepted an offer for the disposal of the house from
the housing action trust, or
(b)
the housing action trust has accepted an offer for the disposal of the
house from the purchaser,

before the day on which this section comes into force.
20
(5)
Subsection (6), however, applies in any such case if the first relevant disposal
by the purchaser to which the covenant for repayment of discount applies
takes place on or after the day on which this section comes into force.
(6)
In the following provisions—
(a)
paragraph 1(2) of Schedule 11 to the Housing Act 1988 (c. 50) (as it has
25
effect without the amendments made by this section), and
(b)
any covenant for repayment of discount,

any reference (however expressed) to a person being liable to pay an amount
to the housing action trust on demand is to be read as a reference to his being
liable to pay to the trust so much of that amount (if any) as the trust may
30
demand.
(7)
In subsections (5) and (6) “covenant for repayment of discount” means the
covenant contained in a conveyance, grant or assignment in accordance with
paragraph 1 of Schedule 11 to that Act.
164
Repayment of discount: deferred resale agreements
35
(1)
After paragraph 7 of Schedule 11 to the Housing Act 1988 insert—
“Treatment of deferred resale agreements
8     (1)
If a purchaser or his successor in title enters into an agreement within
sub-paragraph (3), any liability arising under the covenant required
by paragraph 1 shall be determined as if a relevant disposal which is
40
not an exempted disposal had occurred at the appropriate time.
      (2)
In sub-paragraph (1) “the appropriate time” means—
(a)
the time when the agreement is entered into, or

Housing Bill
Part 6 — Other provisions about housing
Chapter 2 — Discounts on disposals not involving right to buy
116

(b)
if it was made before the beginning of the discount
repayment period, immediately after the beginning of that
period.
      (3)
An agreement is within this sub-paragraph if it is an agreement
between the purchaser or his successor in title and any other
5
person—
(a)
which is made (expressly or impliedly) in contemplation of,
or in connection with, a disposal to be made, or made, under
section 79,
(b)
which is made before the end of the discount repayment
10
period, and
(c)
under which a relevant disposal (other than an exempted
disposal) is or may be required to be made to any person after
the end of that period.
      (4)
Such an agreement is within sub-paragraph (3)—
15
(a)
whether or not the date on which the relevant disposal is to
take place is specified in the agreement, and
(b)
whether or not any requirement to make that disposal is or
may be made subject to the fulfilment of any condition.
      (5)
The Secretary of State may by order provide—
20
(a)
for sub-paragraph (1) to apply to agreements of any
description specified in the order in addition to those within
sub-paragraph (3);
(b)
for sub-paragraph (1) not to apply to agreements of any
description so specified to which it would otherwise apply.
25
      (6)
An order under sub-paragraph (5)—
(a)
may make different provision with respect to different cases
or descriptions of case; and
(b)
shall be made by statutory instrument which shall be subject
to annulment in pursuance of a resolution of either House of
30
Parliament.
      (7)
In this paragraph—
“agreement” includes arrangement;
“the discount repayment period” means the period of 3 years
that applies for the purposes of paragraph 1(2) or the period
35
of five years that applies for the purposes of paragraph 1(3)
(depending on whether an offer such as is mentioned in
section 163(4) of the Housing Act 2004 was made before or
on or after the coming into force of that section).”
(2)
The amendment made by this section does not apply in relation to any
40
agreement or arrangement made before the day on which this section comes
into force.

Housing Bill
Part 6 — Other provisions about housing
Chapter 3 — Miscellaneous
117

Chapter 3
Miscellaneous
Succession between same sex partners
165
Succession to certain tenancies by same sex partners
(1)
For paragraph 2(2) of Schedule 1 to the Rent Act 1977 (c. 42) substitute—
5
     “(2)
For the purposes of this paragraph, a person shall be treated as the
spouse of the original tenant if the person was living with the
original tenant—
(a)
as his or her wife or husband, or
(b)
if of the same sex, in an equivalent relationship.”
10
(2)
After the existing provisions of section 87 of the Housing Act 1985 (c. 68),
which become subsection (1), insert—
“(2)
In this section and section 89(2) “member of the tenant’s family”
includes (in addition to the persons mentioned in section 113(1)) a
person who is of the same sex as the tenant and lives together with the
15
tenant in a relationship equivalent to that of husband and wife.”
(3)
For section 17(4) of the Housing Act 1988 (c. 50) substitute—
“(4)
For the purposes of this section, a person shall be treated as the tenant’s
spouse if the person was living with the tenant—
(a)
as his or her wife or husband, or
20
(b)
if of the same sex, in an equivalent relationship.”
(4)
After the existing provisions of section 131 of the Housing Act 1996 (c. 52),
which become subsection (1), insert—
“(2)
In this section and section 133(2) “member of the tenant’s family”
includes (in addition to the persons mentioned in section 140(1)) a
25
person who is of the same sex as the tenant and lives together with the
tenant in a relationship equivalent to that of husband and wife.”
Grants for social housing
166
Additional power to give grants for social housing
After section 27 of the Housing Act 1996 insert—
30
“Grants to bodies other than registered social landlords
27A Grants to bodies other than registered social landlords
(1)
The Relevant Authority may make grants under this section to
companies that are not registered social landlords.
(2)
Grants under this section are grants for any of the following purposes—
35
(a)
acquiring, or repairing and improving, or creating by the
conversion of houses or other property, houses to be disposed
of—

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Part 6 — Other provisions about housing
Chapter 3 — Miscellaneous
118

(i)
under equity percentage arrangements, or
(ii)
on shared ownership terms;
(b)
constructing houses to be disposed of—
(i)
under equity percentage arrangements, or
(ii)
on shared ownership terms;
5
(c)
providing loans to be secured by mortgages to assist persons to
acquire houses for their own occupation;
(d)
providing, constructing or improving houses to be kept
available for letting;
(e)
providing, constructing or improving houses for letting that are
10
to be managed by such registered social landlords, and under
arrangements containing such terms, as are approved by the
Relevant Authority;
(f)
such other purposes as may be specified in an order under
subsection (3).
15
(3)
The Secretary of State may by order make such provision in connection
with the making of grants under this section as he considers
appropriate.
(4)
An order under subsection (3) may, in particular, make provision—
(a)
defining “equity percentage arrangements” for the purposes of
20
this section;
(b)
specifying or describing the bodies from whom loans may be
obtained by persons wishing to acquire houses for their own
occupation;
(c)
dealing with the priority of mortgages entered into by such
25
persons;
(d)
specifying purposes additional to those mentioned in
subsection (2)(a) to (e).
(5)
The Relevant Authority shall specify in relation to grants under this
section—
30
(a)
the procedure to be followed in relation to applications for
grant,
(b)
the circumstances in which grant is or is not to be payable,
(c)
the method for calculating, and any limitations on, the amount
of the grant, and
35
(d)
the manner in which, and the time or times at which, grant is to
be paid.
(6)
In making a grant to a company under this section the Relevant
Authority may provide that the grant is conditional on compliance by
the company with such conditions as the Authority may specify.
40
(7)
The conditions that may be so specified include conditions requiring
the payment to the Relevant Authority in specified circumstances of a
sum determined by the Authority (with or without interest).
(8)
An order under subsection (3) shall be made by statutory instrument
which shall be subject to annulment in pursuance of a resolution of
45
either House of Parliament.
(9)
In this section—

“company” means—

Housing Bill
Part 6 — Other provisions about housing
Chapter 3 — Miscellaneous
119

(a)
a company registered under the Companies Act 1985
(including such a company which is also a registered
charity), or
(b)
a company not so registered which is established by a
local housing authority for the purpose of exercising
5
management functions of the authority under section 27
of the Housing Act 1985;

“disposed of on shared ownership terms” has the meaning given
by section 2(6);

“letting” includes the grant of a licence to occupy.”
10
Disabled facilities grant
167
Disabled facilities grant: caravans
(1)
The Housing Grants, Construction and Regeneration Act 1996 (c. 53) is
amended as follows.
(2)
In section 1(1)(c)(i) (grants in relation to qualifying park homes) for “qualifying
15
park homes” substitute “caravans”.
(3)
In section 19(1) (applications for grants) for paragraph (c) substitute—
“(c)
that the applicant is an occupier (alone or jointly with others) of
a qualifying houseboat or a caravan and, in the case of a
caravan, that at the time the application was made the caravan
20
was stationed on land within the authority’s area.”
(4)
In section 22A (certificates required in case of occupier’s application)—
(a)
for “qualifying park home” in subsection (2)(b) and (3)(a) and (b)
substitute “caravan”, and
(b)
for “pitch” in subsection (3)(a) substitute “land”.
25
(5)
In the following provisions for “qualifying park home” substitute “caravan”—
(a)
section 23(1)(a)(i), (b)(i), (i) and (k) (purposes of grant);
(b)
section 24(3)(b)(i) (approval of application);
(c)
section 29(3) (restriction on grants for works already begun);
(d)
section 41(1)(b) (change of circumstances).
30
(6)
In section 57(2)(a) (power of authority to carry out works)—
(a)
for “qualifying park home”, in each place where it occurs, substitute
“caravan”, and
(b)
for “pitch” in sub-paragraph (i) substitute “land”.
(7)
In section 58 (minor definitions for the purposes of Chapter 1 of Part 1)—
35
(a)
before the definition of “common parts” insert—

““caravan”—
(a)
means a caravan within the meaning of Part 1 of the
Caravan Sites and Control of Development Act 1960
(disregarding the amendment made by section 13(2)
40
of the Caravan Sites Act 1968); and
(b)
includes any yard, garden, outhouses and
appurtenances belonging to it or usually enjoyed with
it;” and