11:02 12/02/2004
Amendments proposed to the Housing Bill - continued | House of Commons |
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Matthew Green 442 Clause 166, page 118, line 40, at end insert'(6A) The conditions in (6) will include provisions relating to accountability and the provision of information that are not less rigorous than those which registered social landlords must comply with.'.
Mr John Hayes 283 Clause 166, page 118, line 47, leave out from 'section' to the end of line 7 on page 119.
NEW CLAUSES RELATING TO PART 6Local authority's right of first refusal
Mr Keith Hill NC30 To move the following Clause:'(1) After section 36 of the Housing Act 1985 (c.68) insert "36A Right of first refusal for local authority (1) This section applies where, on a disposal of a house under section 32, a discount is given to the purchaser by the local authority in accordance with a consent given by the Secretary of State under subsection (2) of that section; but this section does not apply in any such case if the consent so provides. (2) On the disposal the conveyance, grant or assignment shall contain the following covenant, which shall be binding on the purchaser and his successors in title. (3) The covenant shall be to the effect that, until the end of the period of ten years beginning with the conveyance, grant or assignment, there will be no relevant disposal which is not an exempted disposal, unless the prescribed conditions have been satisfied in relation to that or a previous such disposal. (4) In subsection (3) "the prescribed conditions" means such conditions as are prescribed by regulations under this section at the time when the conveyance, grant or assignment is made. (5) The Secretary of State may by regulations prescribe such conditions as he considers appropriate for and in connection with conferring on
(6) The disposals within this subsection are
(7) Regulations under this section may, in particular, make provision
(8) In subsection (7) any reference to the purchaser is a reference to the purchaser or his successor in title.
(9) Regulations under this section
(10) A disposal in breach of the covenant mentioned in subsection (3) shall be void. 36B Consideration payable for disposal under section 36A (1) The consideration for a disposal made in respect of a right of first refusal as mentioned in section 36A(5) shall be such amount as may be agreed between the parties, or determined by the district valuer, as being the amount which is to be taken to be the value of the house at the time when the offer is made (as determined in accordance with regulations under that section). (2) That value shall be taken to be the price which, at that time, the interest to be reconveyed, conveyed, surrendered or assigned would realise if sold on the open market by a willing vendor, on the assumption that any liability under the covenant required by section 35 (repayment of discount on early disposal) would be discharged by the vendor. (3) If the offer is accepted in accordance with regulations under section 36A, no payment shall be required in pursuance of any such covenant as is mentioned in subsection (2), but the consideration shall be reduced, subject to subsection (4), by such amount (if any) as, on a disposal made at the time the offer was made, being a relevant disposal which is not an exempted disposal, would fall to be paid under that covenant. (4) Where there is a charge on the house having priority over the charge to secure payment of the sum due under the covenant mentioned in subsection (2), the consideration shall not be reduced under subsection (3) below the amount necessary to discharge the outstanding sum secured by the first-mentioned charge at the date of the offer (as determined in accordance with regulations under section 36A)." (2) In section 33(2) of the Housing Act 1985 (c.68) (covenants and conditions which may be imposed), after "But" insert ", subject to sections 36A and 37,". (3) In section 37(1) of that Act (restriction on disposal of dwelling-houses in National Parks etc.), after "restriction on assignment)" insert "or a covenant as mentioned in section 36A(3) (right of first refusal for local authority)". (4) In section 41 of that Act (exempted disposals which end liability under covenants), after paragraph (a) insert
(5) The amendments made by this section do not apply in relation to a disposal under section 32 of that Act if
Registered social landlord's right of first refusal
Mr Keith Hill NC31 To move the following Clause:'(1) After section 12 of the Housing Act 1996 (c.52) insert "12A Right of first refusal for registered social landlord (1) Where on a disposal of a house by a registered social landlord, in accordance with a consent given by the Relevant Authority under section 9, a discount has been given to the purchaser, and the consent does not provide otherwise, the conveyance, grant or assignment shall contain the following covenant, which shall be binding on the purchaser and his successors in title. (2) The covenant shall be to the effect that, until the end of the period of ten years beginning with the conveyance, grant or assignment, there will be no relevant disposal which is not an exempted disposal, unless the prescribed conditions have been satisfied in relation to that or a previous such disposal. (3) In subsection (2) "the prescribed conditions" means such conditions as are prescribed by regulations under this section at the time when the conveyance, grant or assignment is made. (4) The Secretary of State may by regulations prescribe such conditions as he considers appropriate for and in connection with conferring on
(5) The disposals within this subsection are
(6) Regulations under this section may, in particular, make provision
(7) In subsection (6) any reference to the purchaser is a reference to the purchaser or his successor in title.
(8) Regulations under this section
(9) A disposal in breach of the covenant mentioned in subsection (2) shall be void. (10) Where there is a relevant disposal which is an exempted disposal by virtue of section 15(4)(d) or (e) (compulsory disposal or disposal of yard, garden, &c)
12B Consideration payable for disposal under section 12A (1) The consideration for a disposal made in respect of a right of first refusal as mentioned in section 12A(4) shall be such amount as may be agreed between the parties, or determined by the district valuer, as being the amount which is to be taken to be the value of the house at the time when the offer is made (as determined in accordance with regulations under that section). (2) That value shall be taken to be the price which, at that time, the interest to be reconveyed, conveyed, surrendered or assigned would realise if sold on the open market by a willing vendor, on the assumption that any liability under the covenant required by section 11 (repayment of discount on early disposal) would be discharged by the vendor. (3) If the offer is accepted in accordance with regulations under section 12A, no payment shall be required in pursuance of any such covenant as is mentioned in subsection (2), but the consideration shall be reduced, subject to subsection (4), by such amount (if any) as, on a disposal made at the time the offer was made, being a relevant disposal which is not an exempted disposal, would fall to be paid under that covenant. (4) Where there is a charge on the house having priority over the charge to secure payment of the sum due under the covenant mentioned in subsection (2), the consideration shall not be reduced under subsection (3) below the amount necessary to discharge the outstanding sum secured by the first-mentioned charge at the date of the offer (as determined in accordance with regulations under section 12A)." (2) In section 13(1) of the Housing Act 1996 (c.52) (restriction on disposal of houses in National Parks, &c), after "restriction on assignment)" insert "or a covenant as mentioned in section 12A(2) of this Act (right of first refusal for registered social landlord)". (3) The amendments made by this section do not apply in relation to a disposal under section 8 of that Act if
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