Housing Bill

House of Commons

Session 2003 - 04
Internet Publications
Other Bills before Parliament

Housing Bill

Housing Bill
Part 6 — Other provisions about housing
Chapter 1 — Secure tenancies
114

Right to buy: information
163
Information to help tenants decide whether to exercise right to buy etc.
(1)
After section 121 of the Housing Act 1985 (c. 68) insert—
“121A
Information to help tenants decide whether to exercise right to buy
etc.
5
(1)
Every body which lets dwelling-houses under secure tenancies shall
prepare a document that contains information for its secure tenants
about such matters as are specified in an order made by the Secretary
of State).
(2)
The matters that may be so specified are matters which the Secretary of
10
State considers that it would be desirable for secure tenants to have
information about when considering whether to exercise the right to
buy or the right to acquire on rent to mortgage terms.
(3)
The information contained in the document shall be restricted to
information about the specified matters, and the information about
15
those matters—
(a)
shall be such as the body concerned considers appropriate, but
(b)
shall be in a form which the body considers best suited to
explaining those matters in simple terms.
(4)
Once a body has prepared the document required by subsection (1), it
20
shall revise it as often as it considers necessary in order to ensure that
the information contained in it—
(a)
is kept up to date so far as is reasonably practicable, and
(b)
reflects any changes in the matters for the time being specified
in an order under this section.
25
(5)
An order under this section shall be made by statutory instrument
which shall be subject to annulment in pursuance of a resolution of
either House of Parliament.
121B
Provision of information
(1)
This section sets out when the document prepared by a body under
30
section 121A is to be published or otherwise made available.
(2)
The body shall—
(a)
publish the document (whether in its original or a revised
form), and
(b)
supply copies of it to the body’s secure tenants,
35

at such times as may be prescribed by, and otherwise in accordance
with, an order made by the Secretary of State.
(3)
The body shall make copies of the current version of the document
available to be supplied, free of charge, to persons requesting them.
(4)
The copies must be made available for that purpose—
40
(a)
at the body’s principal offices, and
(b)
at such other places as it considers appropriate,

at reasonable hours.

Housing Bill
Part 6 — Other provisions about housing
Chapter 1 — Secure tenancies
115

(5)
The body shall take such steps as it considers appropriate to bring to the
attention of its secure tenants the fact that copies of the current version
of the document can be obtained free of charge from the places where,
and at the times when, they are made available in accordance with
subsection (4).
5
(6)
In this section any reference to the current version of the document is to
the version of the document that was last published by the body in
accordance with subsection (2)(a).
(7)
An order under this section shall be made by statutory instrument
which shall be subject to annulment in pursuance of a resolution of
10
either House of Parliament.”
(2)
In section 104(1) of that Act (provision of information about tenancies), in
paragraph (b) (information about Part 4 and Part 5), omit “and Part V (the right
to buy)”.
Right to buy: termination of rent to mortgage scheme
15
164
Termination of rent to mortgage scheme
(1)
Before section 143 of the Housing Act 1985 (c. 68) insert—
“142A
Termination of the right to acquire on rent to mortgage terms
(1)
As from the termination date, the right to acquire on rent to mortgage
terms is not exercisable except in pursuance of a notice served under
20
section 144 before that date.
(2)
In this section “the termination date” means the date falling 8 months
after the date of the passing of the Housing Act 2004.”
(2)
In section 143(1) of that Act after “sections” insert “142A,”.
(3)
In section 144(1) of that Act for “A secure tenant” substitute “Subject to section
25
142A, a secure tenant”.
Suspension of certain rights in connection with anti-social behaviour
165
Secure tenancies: withholding of consent to mutual exchange
(1)
In Schedule 3 to the Housing Act 1985 (grounds for withholding consent to
assignment by way of exchange) after Ground 2 insert—
30
“Ground 2A

Either—
(a)
a relevant order or suspended Ground 2 or 14 possession
order is in force, or
(b)
an application is pending before any court for a relevant
35
order, a demotion order or a Ground 2 or 14 possession order
to be made,

in respect of the tenant or the proposed assignee or a person who is
residing with either of them.

Housing Bill
Part 6 — Other provisions about housing
Chapter 1 — Secure tenancies
116


A “relevant order” means—

an injunction under section 152 of the Housing Act 1996
(injunctions against anti-social behaviour);

an injunction to which a power of arrest is attached by virtue of
section 153 of that Act (other injunctions against anti-social
5
behaviour);

an injunction under section 153A, 153B or 153D of that Act
(injunctions against anti-social behaviour on application of
certain social landlords);

an anti-social behaviour order under section 1 of the Crime and
10
Disorder Act 1998 (c. 37); or

an injunction to which a power of arrest is attached by virtue of
section 91 of the Anti-social Behaviour Act 2003.

A “demotion order” means a demotion order under section 82A of
this Act or section 6A of the Housing Act 1988.
15

A “Ground 2 or 14 possession order” means an order for possession
under Ground 2 in Schedule 2 to this Act or Ground 14 in Schedule
2 to the Housing Act 1988.

Where the tenancy of the tenant or the proposed assignee is a joint
tenancy, any reference to that person includes (where the context
20
permits) a reference to any of the joint tenants.”
(2)
The amendment made by this section applies in relation to applications for
consent under section 92 of that Act (assignments by way of exchange) which
are made on or after the day on which this section comes into force.
166
Right to buy: suspension of landlord’s obligation to complete
25
(1)
In section 138 of the Housing Act 1985 (c. 68) (duty of landlord to convey
freehold or grant lease) after subsection (2) insert—
“(2A)
If an application is pending before any court for a demotion order or
Ground 2 possession order to be made in respect of the tenant, the
landlord is not bound to comply with subsection (1) until such time (if
30
any) as—
(a)
the application is determined without a demotion order, or (as
the case may be) an operative Ground 2 possession order, being
made in respect of the tenant, or
(b)
the application is withdrawn.
35
(2B)
For the purposes of subsection (2A)—

“demotion order” means a demotion order under section 82A;

“Ground 2 possession order” means an order for possession under
Ground 2 in Schedule 2;

“operative Ground 2 possession order” means an order made
40
under that Ground which requires possession of the dwelling-
house to be given up on a date specified in the order.”
(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.
45

Housing Bill
Part 6 — Other provisions about housing
Chapter 2 — Disposals attracting discounts other than under right to buy
117

167
Disclosure of information as to orders etc. in respect of anti-social behaviour
(1)
Any person may disclose relevant information to a landlord under a secure
tenancy if the information is disclosed for the purpose of enabling the
landlord—
(a)
to decide whether either of the provisions of the Housing Act 1985
5
mentioned in subsection (2) can be invoked in relation to the tenant
under the tenancy; or
(b)
to take any appropriate action in relation to the tenant in reliance on
either of those provisions.
(2)
The provisions are—
10
(a)
Ground 2A in Schedule 3 (withholding of consent to mutual exchange
where order in force or application pending in connection with anti-
social behaviour), and
(b)
section 138(2A) (landlord’s obligation to complete suspended while
application pending in connection with such behaviour).
15
(3)
In this section—
(a)
“relevant information” means information relating to any order or
application relevant for the purposes of either of the provisions
mentioned in subsection (2), including (in particular) information
identifying the person in respect of whom any such order or
20
application has been made;
(b)
“secure tenancy” has the meaning given by section 79 of the Housing
Act 1985 (c. 68); and
(c)
any reference to the tenant under a secure tenancy is, in relation to a
joint tenancy, a reference to any of the joint tenants.
25
Chapter 2
Disposals attracting discounts other than under right to buy
Disposals by local authorities
168
Repayment of discount: periods and amounts applicable
(1)
Section 35 of the Housing Act 1985 (repayment of discount on early disposal)
30
is amended in accordance with subsections (2) and (3).
(2)
In subsection (2) for the words from “to pay to the authority” to the end of the
subsection substitute “to the following effect.”
(3)
After subsection (2) insert—
“(3)
The covenant shall be to pay to the authority such sum (if any) as the
35
authority may demand in accordance with subsection (4) 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, grant or assignment.
(4)
The authority may demand such sum as they consider appropriate, up
40
to and including the maximum amount specified in this section.

Housing Bill
Part 6 — Other provisions about housing
Chapter 2 — Disposals attracting discounts other than under right to buy
118

(5)
The maximum amount which may be demanded by the authority is a
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 32.
(6)
But for each complete year which has elapsed after the conveyance,
5
grant or assignment and before the first relevant disposal the maximum
amount which may be demanded by the landlord is reduced by one-
fifth.
(7)
Subsections (4) to (6) are subject to section 35B.”
(4)
The amendments made by this section do not apply in any case where—
10
(a)
the purchaser has accepted an offer for the disposal of the house from
the authority, or
(b)
the authority has accepted an offer for the disposal of the house from
the purchaser,

before the day on which this section comes into force.
15
(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)
section 35(2) of the Housing Act 1985 (c. 68) (as it has effect without the
20
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 authority on demand is to be read as a reference to his being liable to pay
to the authority so much of that amount (if any) as the authority may demand.
25
(7)
In subsections (5) and (6) “covenant for repayment of discount” means the
covenant contained in a conveyance, grant or assignment in accordance with
section 35 of that Act.
169
Repayment of discount: increase attributable to home improvements to be
disregarded
30
After section 35 of the Housing Act 1985 insert—
“35A
Increase in value of house attributable to home improvements
(1)
In calculating the maximum amount which may be demanded by the
authority under section 35, such amount (if any) of the price or
premium paid for the first relevant disposal which is attributable to
35
improvements made to the house—
(a)
by the person by whom the disposal is, or is to be, made, and
(b)
after the conveyance, grant or assignment and before the
disposal,

shall be disregarded.
40
(2)
The amount to be disregarded under this section shall be such amount
as may be agreed between the parties or determined by the district
valuer.
(3)
The district valuer shall not be required by virtue of this section to make
a determination for the purposes of this section unless—
45

Housing Bill
Part 6 — Other provisions about housing
Chapter 2 — Disposals attracting discounts other than under right to buy
119

(a)
it is reasonably practicable for him to do so; and
(b)
his reasonable costs in making the determination are paid by
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 section (and in default of an agreement), no amount is required to
5
be disregarded under this section.”
170
Local authority’s right of first refusal
(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
10
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
15
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
20
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.
25
(5)
The Secretary of State may by regulations prescribe such conditions as
he considers appropriate for and in connection with conferring on—
(a)
a local authority which have made a disposal as mentioned in
subsection (1), or
(b)
such other person as is determined in accordance with the
30
regulations,

a right of first refusal to have a disposal within subsection (6) made to
them or him for such consideration as is mentioned in section 36B.
(6)
The disposals within this subsection are—
(a)
a reconveyance or conveyance of the house; and
35
(b)
a surrender or assignment of the lease.
(7)
Regulations under this section may, in particular, make provision—
(a)
for the purchaser to offer to make such a disposal to such person
or persons as may be prescribed;
(b)
for a prescribed recipient of such an offer to be able either to
40
accept the offer or to nominate some other person as the person
by whom the offer may be accepted;
(c)
for the person who may be so nominated to be either a person
of a prescribed description or a person whom the prescribed

Housing Bill
Part 6 — Other provisions about housing
Chapter 2 — Disposals attracting discounts other than under right to buy
120

recipient considers, having regard to any prescribed matters, to
be a more appropriate person to accept the offer;
(d)
for a prescribed recipient making such a nomination to give a
notification of the nomination to the person nominated, the
purchaser and any other prescribed person;
5
(e)
for authorising a nominated person to accept the offer and for
determining which acceptance is to be effective where the offer
is accepted by more than one person;
(f)
for the period within which the offer may be accepted or within
which any other prescribed step is to be, or may be, taken;
10
(g)
for the circumstances in which the right of first refusal lapses
(whether following the service of a notice to complete or
otherwise) with the result that the purchaser is able to make a
disposal on the open market;
(h)
for the manner in which any offer, acceptance or notification is
15
to be communicated.
(8)
In subsection (7) any reference to the purchaser is a reference to the
purchaser or his successor in title.

Nothing in that subsection affects the generality of subsection (5).
(9)
Regulations under this section—
20
(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.
25
(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
30
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
35
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
40
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
45
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