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 — Disposals attracting discounts other than under right to buy
128

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
5
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
10
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
15
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
(b)
after the conveyance, grant or assignment and before the
20
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
district valuer.
25
      (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
the person by whom the disposal is, or is to be, made.
30
      (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—
(a)
the purchaser has accepted an offer for the disposal of the house from
35
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.
(5)
Subsection (6), however, applies in any such case if the first relevant disposal
40
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
effect without the amendments made by this section), and
45
(b)
any covenant for repayment of discount,

Housing Bill
Part 6 — Other provisions about housing
Chapter 2 — Disposals attracting discounts other than under right to buy
129


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
demand.
(7)
In subsections (5) and (6) “covenant for repayment of discount” means the
5
covenant contained in a conveyance, grant or assignment in accordance with
paragraph 1 of Schedule 11 to that Act.
176
Housing action trust’s right of first refusal
(1)
After paragraph 2 of Schedule 11 to the the Housing Act 1988 (c. 50) insert—
“Right of first refusal for housing action trust
10
2A    (1)
This paragraph applies where, on the disposal of a house under
section 79 of this Act, a discount is given to the purchaser by the
housing action trust in accordance with a consent given by the
Secretary of State under subsection (1) of that section and that
consent does not exclude the application of this paragraph.
15
      (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
20
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 sub-paragraph (3) “the prescribed conditions” means such
conditions as are prescribed by regulations under this section at the
25
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—
(a)
a housing action trust which has made a disposal as
30
mentioned in sub-paragraph (1), or
(b)
such other person as is determined in accordance with the
regulations,

a right of first refusal to have a disposal within sub-paragraph (6)
made to him for such consideration as is mentioned in paragraph 2B.
35
      (6)
The disposals within this sub-paragraph are—
(a)
a reconveyance or conveyance of the house; and
(b)
a surrender or assignment of the lease.
      (7)
Regulations under this paragraph may, in particular, make
provision—
40
(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
accept the offer or to nominate some other person as the
person by whom the offer may be accepted;
45

Housing Bill
Part 6 — Other provisions about housing
Chapter 2 — Disposals attracting discounts other than under right to buy
130

(c)
for the person who may be so nominated to be either a person
of a prescribed description or a person whom the prescribed
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
5
a notification of the nomination to the person nominated, the
purchaser and any other prescribed person;
(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;
10
(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;
(g)
for the circumstances in which the right of first refusal lapses
(whether following the service of a notice to complete or
15
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 to be communicated.
      (8)
In sub-paragraph (7) any reference to the purchaser is a reference to
20
the purchaser or his successor in title.

Nothing in that sub-paragraph affects the generality of sub-
paragraph (5).
      (9)
Regulations under this paragraph—
(a)
may make different provision with respect to different cases
25
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.
     (10)
A disposal in breach of the covenant mentioned in sub-paragraph (3)
30
shall be void.
Consideration payable for disposal under paragraph 2A
2B    (1)
The consideration for a disposal made in respect of a right of first
refusal as mentioned in paragraph 2A(5) shall be such amount as
may be agreed between the parties, or determined by the district
35
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 paragraph).
      (2)
That value shall be taken to be the price which, at that time, the
interest to be reconveyed, conveyed, surrendered or assigned would
40
realise if sold on the open market by a willing vendor, on the
assumption that any liability under the covenant required by
paragraph 1 (repayment of discount on early disposal) would be
discharged by the vendor.
      (3)
If the offer is accepted in accordance with regulations under
45
paragraph 2A, no payment shall be required in pursuance of any
such covenant as is mentioned in sub-paragraph (2), but the
consideration shall be reduced, subject to sub-paragraph (4), by such
amount (if any) as, on a disposal made at the time the offer was

Housing Bill
Part 6 — Other provisions about housing
Chapter 2 — Disposals attracting discounts other than under right to buy
131

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
sub-paragraph (2), the consideration shall not be reduced under sub-
5
paragraph (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
paragraph 2A).”
(2)
In paragraph 6 of Schedule 11 to that Act (exempted disposals ending
10
obligation under covenants), at the end of paragraph (b) insert “and
(c)
the covenant required by paragraph 2A above is not binding on
the person to whom the disposal is made or any successor in
title of his; and
(d)
that covenant ceases to apply in relation to the property
15
disposed of.”
(3)
The amendments made by this section do not apply in relation to a disposal
under section 79 of that Act if—
(a)
the purchaser has accepted an offer for the disposal of the house from
the housing action trust, or
20
(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.
177
Deferred resale agreements
(1)
After paragraph 7 of Schedule 11 to the Housing Act 1988 (c. 50) insert—
25
“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
not an exempted disposal had occurred at the appropriate time.
30
      (2)
In sub-paragraph (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.
35
      (3)
An agreement is within this sub-paragraph if it is an agreement
between the 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, under
40
section 79,
(b)
which is made before the end of the discount repayment
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
45
the end of that period.

Housing Bill
Part 6 — Other provisions about housing
Chapter 3 — Mobile Homes
132

      (4)
Such an agreement is within sub-paragraph (3)—
(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
      (5)
The Secretary of State may by order provide—
(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
10
description so specified to which it would otherwise apply.
      (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
15
to annulment in pursuance of a resolution of either House of
Parliament.
      (7)
In this paragraph—
“agreement” includes arrangement;
“the discount repayment period” means the period of 3 years
20
that applies for the purposes of paragraph 1(2) or the period
of five years that applies for the purposes of paragraph 1(3)
(depending on whether an offer such as is mentioned in
section 175(4) of the Housing Act 2004 was made before or
on or after the coming into force of that section).”
25
(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.
Chapter 3
Mobile Homes
30
Site agreements
178
Particulars of site agreements to be given in advance
(1)
For section 1 of the Mobile Homes Act 1983 (c. 34) (particulars of agreements
between site owners and occupiers of mobile homes) substitute—
“1 Particulars of agreements
35
(1)
This Act applies to any agreement under which a person (“the
occupier”) is entitled—
(a)
to station a mobile home on land forming part of a protected
site; and
(b)
to occupy the mobile home as his only or main residence.
40
(2)
Before making an agreement to which this Act applies, the owner of the
protected site (“the owner”) shall give to the proposed occupier under
the agreement a written statement which—

Housing Bill
Part 6 — Other provisions about housing
Chapter 3 — Mobile Homes
133

(a)
specifies the names and addresses of the parties;
(b)
includes particulars of the land on which the proposed occupier
is to be entitled to station the mobile home that are sufficient to
identify that land;
(c)
sets out the express terms to be contained in the agreement;
5
(d)
sets out the terms to be implied by section 2(1) below; and
(e)
complies with such other requirements as may be prescribed by
regulations made by the appropriate national authority.
(3)
The written statement required by subsection (2) above must be
given—
10
(a)
not later than 28 days before the date on which any agreement
for the sale of the mobile home to the proposed occupier is
made, or
(b)
(if no such agreement is made before the making of the
agreement to which this Act applies) not later than 28 days
15
before the date on which the agreement to which this Act
applies is made.
(4)
But if the proposed occupier consents in writing to that statement being
given to him by a date (“the chosen date”) which is less than 28 days
before the date mentioned in subsection (3)(a) or (b) above, the
20
statement must be given to him not later than the chosen date.
(5)
If any express term—
(a)
is contained in an agreement to which this Act applies, but
(b)
was not set out in a written statement given to the proposed
occupier in accordance with subsections (2) to (4) above,
25

the term is unenforceable by the owner or any person within section
3(1) below.
This is subject to any order made by the court under section 2(3) below.
(6)
If the owner has failed to give the occupier a written statement in
accordance with subsections (2) to (4) above, the occupier may, at any
30
time after the making of the agreement, apply to the court for an order
requiring the owner—
(a)
to give him a written statement which complies with
paragraphs (a) to (e) of subsection (2) (read with any
modifications necessary to reflect the fact that the agreement
35
has been made), and
(b)
to do so not later than such date as is specified in the order.
(7)
A statement required to be given to a person under this section may be
either delivered to him personally or sent to him by post.
(8)
Any reference in this section to the making of an agreement to which
40
this Act applies includes a reference to any variation of an agreement
by virtue of which the agreement becomes one to which this Act
applies.
(9)
Regulations under this section—
(a)
shall be made by statutory instrument;
45
(b)
if made by the Secretary of State, shall be subject to annulment
in pursuance of a resolution of either House of Parliament; and

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Part 6 — Other provisions about housing
Chapter 3 — Mobile Homes
134

(c)
may make different provision with respect to different cases or
descriptions of case, including different provision for different
areas.”
(2)
Section 2 of that Act (terms of agreements) is amended as follows—
(a)
in subsection (2), for “within six months of the giving of the statement
5
under section 1(2) above” substitute “within the relevant period”; and
(b)
for subsection (3) substitute—
“(3)
The court may, on the application of either party made within
the relevant period, make an order—
(a)
varying or deleting any express term of the agreement;
10
(b)
in the case of any express term to which section 1(6)
above applies, provide for the term to have full effect or
to have such effect subject to any variation specified in
the order.
(3A)
In subsections (2) and (3) above “the relevant period” means the
15
period beginning with the date on which the agreement is made
and ending—
(a)
six months after that date, or
(b)
where a written statement relating to the agreement is
given to the occupier after that date (whether or not in
20
compliance with an order under section 1(5) above), six
months after the date on which the statement is given;

and section 1(8) above applies for the purposes of this
subsection as it applies for the purposes of section 1.”
(3)
In section 5(1) of that Act (interpretation) insert at the appropriate place—
25

“the appropriate national authority” means—
(a)
in relation to England, the Secretary of State, and
(b)
in relation to Wales, the National Assembly for Wales.”
(4)
The amendments made by subsections (1) and (2) do not apply in relation to an
agreement to which that Act applies where—
30
(a)
the agreement, or
(b)
(if it becomes one to which that Act applies as the result of any variation
of it) the variation in question,

is made before the end of the period of 28 days beginning with the day on
which those subsections come into force.
35
(5)
The new section 1(9)(b) inserted by subsection (1) does not affect the
continuing validity of any regulations made under section 1 of that Act before
the passing of this Act.
179
Implied terms relating to termination of agreements or disposal of mobile
homes
40
(1)
Part 1 of Schedule 1 to the Mobile Homes Act 1983 (c. 34) (terms implied in site
agreements) is amended as follows.
(2)
In paragraph 6 (termination by owner on ground of detrimental effect resulting
from age and condition of mobile home)—
(a)
omit “age and”; and
45