Housing Bill

House of Commons

Session 2003 - 04
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Other Bills before Parliament

Housing Bill

Housing Bill
Part 5 — Home information packs
94

143
Grants
(1)
The Secretary of State may make grants towards expenditure incurred by any
person in connection with—
(a)
the development of proposals for any provision to be made by
regulations under section 133; or
5
(b)
the development of schemes which are intended to be certification
schemes for the purposes of any provision made or expected to be
made in regulations under section 133 by virtue of section 134.
(2)
A grant under this section may be made on conditions, which may include
(among other things)—
10
(a)
conditions as to the purposes for which the grant or any part of it may
be used; and
(b)
conditions requiring the repayment of the grant or any part of it in such
circumstances as may be specified in the conditions.
144
Interpretation of Part 5
15
(1)
In this Part—

“ancillary land”, in relation to a dwelling-house or a sub-divided
building, means any land intended to be occupied and enjoyed
together with that dwelling-house or building;

“long lease” means—
20
(a)
a lease granted for a term certain exceeding 21 years, whether or
not it is (or may become) terminable before the end of that term
by notice given by the tenant or by re-entry or forfeiture; or
(b)
a lease for a term fixed by law under a grant with a covenant or
obligation for perpetual renewal, other than a lease by sub-
25
demise from one which is not a long lease;

and for this purpose “lease” does not include a mortgage term;

“potential buyer” means a person who claims that he is or may become
interested in buying a residential property;

“sale”, in relation to a residential property, means a disposal, or
30
agreement to dispose, by way of sale of—
(a)
the freehold interest;
(b)
the interest under a long lease;
(c)
an option to acquire the freehold interest or the interest under a
long lease;
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and “seller” means a person contemplating disposing of such an
interest (and related expressions shall be construed accordingly).
(2)
Any reference in the definition of “sale” to the disposal of an interest of a kind
mentioned in that definition includes a reference to the creation of such an
interest.
40
(3)
A document which is not in electronic form is only to be regarded as being
under the control of a person while it is in the possession of another if he has
the right to take immediate possession of the document on demand (and
without payment).
(4)
A document held in electronic form is to be regarded for the purposes of this
45
Part as being in a person’s possession or under his control if (and only if) he is
readily able (using equipment available to him)—

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Part 5 — Home information packs
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(a)
to view the document in a form that is visible and legible; and
(b)
to produce copies of it in a visible and legible documentary form.
145
Index of defined expressions: Part 5
In this Part, the expressions listed in the left-hand column have the meaning
given by, or are to be interpreted in accordance with, the provisions inserted in
5
the right-hand column.

Expression
Provision of this Act

Acting as estate agent for the seller
Section 122

Ancillary land
Section 144(1)

Control of documents
Section 144(3) and (4)

10

Dwelling-house
Section 120(1)

Enforcement authority
Section 135

Home information pack
Section 120(2)

Long lease
Section 144(1)

Make public
Section 121(3)

15

Possession of electronic documents
Section 144(4)

Potential buyer
Section 144(1)

Putting on the market
Section 121(1)

Remaining on the market
Section 121(2)

Residential property
Section 120(1)

20

Responsible person
Section 123(1)

Sale (and related expressions)
Section 144(1)

Seller (and related expressions)
Section 144(1)

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Part 6 — Other provisions about housing
Chapter 1 — Secure tenancies
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Part 6
Other provisions about housing
Chapter 1
Secure tenancies
Introductory tenancies
5
146
Extension of introductory tenancies
(1)
Part 5 of the Housing Act 1996 (c. 52) (conduct of tenants) is amended as
follows.
(2)
In section 125(2) (trial period for introductory tenancy to be one year) for
“subject as follows” substitute “but this is subject to subsections (3) and (4) and
10
to section 125A (extension of trial period by 6 months).”
(3)
After section 125 insert—
“125A
Extension of trial period by 6 months
(1)
If both of the following conditions are met in relation to an introductory
tenancy, the trial period is extended by 6 months.
15
(2)
The first condition is that the landlord has served a notice of extension
on the tenant at least 8 weeks before the original expiry date.
(3)
The second condition is that either—
(a)
the tenant has not requested a review under section 125B in
accordance with subsection (1) of that section, or
20
(b)
if he has, the decision on the review was to confirm the
landlord’s decision to extend the trial period.
(4)
A notice of extension is a notice—
(a)
stating that the landlord has decided that the period for which
the tenancy is to be an introductory tenancy should be extended
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by 6 months, and
(b)
complying with subsection (5).
(5)
A notice of extension must—
(a)
set out the reasons for the landlord’s decision, and
(b)
inform the tenant of his right to request a review of the
30
landlord’s decision and of the time within which such a request
must be made.
(6)
In this section and section 125B “the original expiry date” means the last
day of the period of one year that would apply as the trial period apart
from this section.
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125B Review of decision to extend trial period
(1)
A request for review of the landlord’s decision that the trial period for
an introductory tenancy should be extended under section 125A must
be made before the end of the period of 14 days beginning with the day
on which the notice of extension is served.
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(2)
On a request being duly made to it, the landlord shall review its
decision.
(3)
The Secretary of State may make provision by regulations as to the
procedure to be followed in connection with a review under this
section.
5
Nothing in the following provisions affects the generality of this power.
(4)
Provision may be made by regulations—
(a)
requiring the decision on review to be made by a person of
appropriate seniority who was not involved in the original
decision, and
10
(b)
as to the circumstances in which the person concerned is
entitled to an oral hearing, and whether and by whom he may
be represented at such a hearing.
(5)
The landlord shall notify the tenant of the decision on the review.
If the decision is to confirm the original decision, the landlord shall also
15
notify him of the reasons for the decision.
(6)
The review shall be carried out and the tenant notified before the
original expiry date.”
(4)
The amendments made by this section do not apply in relation to any tenancy
entered into before, or in pursuance of an agreement made before, the day on
20
which this section comes into force.
Right to buy: when exercisable
147
Extension of qualifying period for right to buy
(1)
In section 119(1) of the Housing Act 1985 (c. 68) (qualifying period for right to
buy) for “two” there is substituted “five”.
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(2)
In subsection (2)(a) of section 129 of that Act (discount)—
(a)
for “two” there is substituted “five”; and
(b)
for “32 per cent” there is substituted “35 per cent”.
(3)
In subsection (2)(b) of that section—
(a)
for “two”, where it appears for the second time, there is substituted
30
“five”; and
(b)
for “44 per cent” there is substituted “50 per cent”.
(4)
In subsection (2A)(b) of that section for “two” there is substituted “five”.
(5)
The amendments made by this section do not apply in relation to a secure
tenancy which begins before, or in pursuance of a contract made before, the
35
day on which this section comes into force.
148
Exceptions to the right to buy: houses due to be demolished
(1)
In Schedule 5 to the Housing Act 1985 (exceptions to the right to buy) after

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Chapter 1 — Secure tenancies
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paragraph 12 insert—
“Dwelling-house due to be demolished within 18 months
13    (1)
The right to buy does not arise if a demolition notice is in force in
respect of the dwelling-house.
      (2)
A “demolition notice” is a notice—
5
(a)
stating that the landlord intends to demolish the dwelling-
house or (as the case may be) the building containing it (“the
relevant premises”),
(b)
setting out the reasons why the landlord intends to demolish
the relevant premises,
10
(c)
specifying—
(i)
the date by which he intends to demolish those
premises (“the proposed demolition date”), and
(ii)
the date when the notice will cease to be in force
(unless extended under paragraph 14), and
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(d)
stating that the right to buy does not arise in respect of the
dwelling-house while the notice is in force.
      (3)
The proposed demolition date must fall within the period of 18
months beginning with the date of service of the notice on the tenant.
      (4)
For the purposes of this paragraph a demolition notice is in force in
20
respect of the dwelling-house concerned during the period of 18
months mentioned in sub-paragraph (3) if the conditions in sub-
paragraphs (5) and (6) are satisfied.
      (5)
If—
(a)
the dwelling-house is contained in a building which contains
25
one or more other dwelling-houses, and
(b)
the landlord intends to demolish the whole of the building,

the landlord must have served a demolition notice on the occupier of
each of the dwelling-houses contained in it (whether addressed to
him by name or just as “the occupier”).
30

An accidental omission to serve a demolition notice on one or more
occupiers does not prevent the condition in this sub-paragraph from
being satisfied.
      (6)
A notice stating that the landlord intends to demolish the relevant
premises must have appeared—
35
(a)
in a local or other newspaper circulating in the locality in
which those premises are situated (other than one published
by the landlord), and
(b)
in any newspaper published by the landlord, and
(c)
on the landlord’s website (if he has one).
40
      (7)
The notice mentioned in sub-paragraph (6) must contain the
following information—
(a)
sufficient information to enable identification of the premises
that the landlord intends to demolish,
(b)
the reasons why the landlord intends to demolish those
45
premises,
(c)
the proposed demolition date,

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(d)
the date when any demolition notice or notices relating to
those premises will cease to be in force, and
(e)
that the right to buy will not arise in respect of those premises
or (as the case may be) in respect of any dwelling-house
contained in them.
5
      (8)
In this paragraph and paragraph 14 any reference to the landlord, in
the context of a reference to an intention or decision on his part to
demolish or not to demolish any premises, includes a reference to a
superior landlord.
14    (1)
The Secretary of State may, on an application by the landlord, give a
10
direction extending or further extending the period during which a
demolition notice is in force in respect of a dwelling-house.
      (2)
A direction under sub-paragraph (1) may provide that any extension
of that period is not to have effect unless the landlord complies with
such requirements relating to the service of further notices as are
15
specified in the direction.
      (3)
A direction under sub-paragraph (1) may only be given at a time
when the demolition notice is in force (whether by virtue of
paragraph 13 or this paragraph).
      (4)
If, while a demolition notice is in force, the landlord decides not to
20
demolish the dwelling-house in question, he must, as soon as is
reasonably practicable, serve a notice (“a revocation notice”) on the
tenant which informs him—
(a)
of the landlord’s decision, and
(b)
that the demolition notice is revoked as from the date of
25
service of the revocation notice.
      (5)
If, while a demolition notice is in force, it appears to the Secretary of
State that the landlord has no intention of demolishing the dwelling-
house in question, he may serve a notice (“a revocation notice”) on
the tenant which informs him—
30
(a)
of the Secretary of State’s conclusion, and
(b)
that the demolition notice is revoked as from the date of
service of the revocation notice.

Section 169 applies in relation to the Secretary of State’s power under
this sub-paragraph as it applies in relation to his powers under the
35
provisions mentioned in subsection (1) of that section.
      (6)
But the Secretary of State may not serve a revocation notice unless he
has previously served a notice on the landlord which informs him of
the Secretary of State’s intention to serve the revocation notice.
      (7)
Where a revocation notice is served under sub-paragraph (4) or (5),
40
the demolition notice ceases to be in force as from the date of service
of the revocation notice.
      (8)
Once a demolition notice has (for any reason) ceased to be in force in
respect of a dwelling-house without it being demolished, no further
demolition notice may be served in respect of it during the period of
45
5 years following the time when the notice ceases to be in force,
unless—
(a)
it is served with the consent of the Secretary of State, and
(b)
it states that it is so served.

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15    (1)
Any notice required by paragraph 13 or 14 to be served on a person
may be served on him—
(a)
by delivering it to him, by leaving it at his proper address or
by sending it by post to him at that address, or
(b)
if the person is a body corporate, by serving it in accordance
5
with paragraph (a) on the secretary of the body.
      (2)
For the purposes of this section and section 7 of the Interpretation
Act 1978 (service of documents by post) the proper address of a
person on whom a notice is to be served shall be—
(a)
in the case of a body corporate or its secretary, that of the
10
registered or principal office of the body, and
(b)
in any other case, the last known address of that person.”
(2)
The amendment made by this section does not apply in any case where the
tenant’s notice under section 122 of that Act (notice claiming to exercise right
to buy) was served before the day on which this section comes into force.
15
Right to buy: discounts
149
Repayment of discount: periods and amounts applicable
(1)
Section 155 of the Housing Act 1985 (c. 68) (repayment of discount on early
disposal) is amended in accordance with subsections (2) and (3).
(2)
For subsections (2) and (3) substitute—
20
“(2)
In the case of a conveyance or grant in pursuance of the right to buy, the
covenant shall be to pay the landlord such sum (if any) as the landlord
may demand in accordance with section 155A on the occasion of the
first relevant disposal (other than an exempted disposal) which takes
place within the period of five years beginning with the conveyance or
25
grant.
(3)
In the case of a conveyance or grant in pursuance of the right to acquire
on rent to mortgage terms, the covenant shall be to pay the landlord
such sum (if any) as the landlord may demand in accordance with
section 155B on the occasion of the first relevant disposal (other than an
30
exempted disposal) which takes place within the period of five years
beginning with the making of the initial payment.”
(3)
In subsection (3A) (modifications where tenant has served operative notice of
delay) for “three years” substitute “five years”.
(4)
After section 155 insert—
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“155A
Amount of discount which may be demanded by landlord: right to
buy
(1)
For the purposes of the covenant mentioned in section 155(2), the
landlord may demand such sum as he considers appropriate, up to and
including the maximum amount specified in this section.
40
(2)
The maximum amount which may be demanded by the landlord is a
percentage of the price or premium paid for the first relevant disposal
which is equal to the discount to which the secure tenant was entitled,
where the discount is expressed as a percentage of the value which