Housing and Regeneration Bill

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Housing and Regeneration Bill

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 1 — Introduction
28

62
Structural overview
(1)
This Part replaces the system of “registered social landlords” under Part 1 of
the Housing Act 1996 (c. 52).
(2)
That Part will continue to apply in relation to Wales (see section 63).
(3)
Certain provisions of that Part—
5
(a)
are applied in relation to England by this Part (see section 167), or
(b)
are preserved although they apply to England only (see section 120).
(4)
The Table describes the content of this Part.

Chapter
Sections
Topic
Contents

1
61 to 79
Introduction
(a)
Preliminary

10

(b)
Social housing

(c)
Other key concepts

2
80 to 106
The Social Housing
(a)
Constitution

Regulator
(b)
Proceedings

(c)
Powers

15

(d)
Money

(e)
Relationship with other

bodies

(f)
Information

3
107 to 117
Registration
(a)
Introduction

20

(b)
Eligibility

(c)
Procedure

4
118 to 159
Registered providers
(a)
General provisions

(b)
Accounts

(c)
Insolvency etc.

25

(d)
Restructuring and dissolution

5
160 to 171
Disposal of property
(a)
Introductory

(b)
Regulator’s consent

(c)
Proceeds

(d)
Tenants’ rights and duties

30

(e)
Miscellaneous

6
172 to 194
Regulatory powers
(a)
Standards

(b)
Monitoring

(c)
Management and

constitution

35

(d)
Guidance

(e)
Managers of social housing

7
195 to 233
Enforcement powers
(a)
Enforcement notice

(b)
Penalty

(c)
Compensation

40

(d)
Management

8
234 to 241
General
(a)
Interpretation

(b)
Miscellaneous

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 1 — Introduction
29

63
Restriction of “registered social landlord” system to Wales
(1)
Part 1 of the Housing Act 1996 (c. 52) (social rented sector) is amended as
follows (and the title of Part 1 becomes “Social Rented Sector in Wales”).
(2)
Before section 1 (register of social landlords) insert—
“A1
Introduction
5
This Chapter provides for the registration of social landlords in Wales.”
(3)
In section 1—
(a)
for “The Relevant Authority” substitute “The Welsh Ministers”, and
(b)
omit subsections (1A) and (1B).
(4)
After section 1 insert—
10
“1A
Welsh bodies
In this Chapter “Welsh body” means a body which is—
(a)
a registered charity whose address, for the purposes of
registration by the Charity Commission for England and Wales,
is in Wales,
15
(b)
an industrial and provident society whose registered office for
the purposes of the Industrial and Provident Societies Act 1965
is in Wales, or
(c)
a company within the meaning of the Companies Act 2006
which has its registered office for the purposes of that Act in
20
Wales.”
(5)
In section 2 (eligibility for registration)—
(a)
in subsection (1), for “A body” substitute “A Welsh body”,
(b)
in subsection (2) after “that the body is” insert “principally concerned
with Welsh housing, is”, and
25
(c)
after subsection (2) insert—
“(2A)
A body is principally concerned with Welsh housing if the
Welsh Ministers think—
(a)
that it owns housing only or mainly in Wales, or
(b)
that its activities are principally undertaken in respect of
30
Wales;

and once a body has been registered in reliance on paragraph
(a) or (b) it does not cease to be eligible for registration by virtue
only of ceasing to satisfy that paragraph.”,
(d)
in subsection (7) for “Secretary of State” (in each place) substitute
35
“Welsh Ministers”, and
(e)
in subsection (8) for “either House of Parliament” substitute “the
National Assembly for Wales”.
(6)
In section 3 (registration)—
(a)
in subsection (1) for “any body” substitute “any Welsh body”, and
40
(b)
in subsection (4) for “A body” substitute “A Welsh body”.
(7)
Throughout the Part for “the Relevant Authority” substitute “the Welsh
Ministers”.
(8)
Omit section 56 (meaning of “the Relevant Authority”).

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 1 — Introduction
30

(9)
Sections 64 and 65 make other consequential amendments.
64
References to Welsh Ministers
In the following provisions of the Housing Act 1996 (c. 52)—
(a)
for “Secretary of State” substitute “Welsh Ministers”,
(b)
for “he” substitute “they”,
5
(c)
for “him” substitute “them” (except in section 12A(4)), and
(d)
for “considers” substitute “consider”.

Provision
Topic

Section 9(1A)(b)
Consent for disposal of land

Section 12A(4)
Right of first refusal: regulations

10

Section 15A(5)
Deferred resale agreements: order

Section 17(1), (2)(b), (5)(b) and (6)
Right to acquire: orders and regulations

Section 18(5)(b)
Social housing grants: appointment of

agent

Section 23(6)
Loans: approved schemes

15

Section 27A(3)
Grants to other bodies: further provision

Section 29(1), (2) and (3)
Commutation of special residual subsidy

Section 30(5)(b)
Collection of information: notice

Section 39(3)
Insolvency &c.: order defining terms

Section 46(7)(b)
Appointment of manager: order

20

Section 52(1) and (3)
Orders: general

Section 53(1), (4) and (5)
Determinations: general

Section 55(2)
Consequential: order

Paragraph 9(3A)(b) of Schedule 1
Change of rules of industrial and

provident society: consent

25

Paragraph 11(3A)(b) of Schedule 1
Change of articles of company: consent

Paragraph 15A(1) of Schedule 1
Transfer of assets of charity on

dissolution: order

65
References to National Assembly for Wales
In the following provisions of the Housing Act 1996 for “either House of
30
Parliament” substitute “the National Assembly for Wales”.

Provision
Topic

Section 12A(8)(b)
Right of first refusal: regulations

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 1 — Introduction
31

Provision
Topic

Section 15A(6)(b)
Deferred resale agreements:

order

Section 17(7)
Right to acquire: orders and

regulations

5

Section 27A(10)
Grants to other bodies: order

Section 39(3)
Insolvency: order

Section 55(3)
Consequential: order

Paragraph 15A(4) of Schedule 1
Transfer of assets of charity on

dissolution: order

10

66
Dissolution of Housing Corporation
(1)
The Secretary of State shall by order make provision for the dissolution of the
Housing Corporation.
(2)
The order shall, in particular—
(a)
provide for the transfer of property, rights and liabilities (which may
15
include provision allowing the Secretary of State to make schemes for
transfer, and to transfer to the regulator, to the Secretary of State or to
another person), and
(b)
make consequential amendment of enactments referring to the
Housing Corporation.
20
(3)
The order may include provision requiring the Housing Corporation to assist
the regulator pending dissolution.
(4)
The order may apply (with or without modification) a provision of this or any
other enactment.
Social housing
25
67
Basic principle
(1)
In this Part “social housing” means—
(a)
low cost rental accommodation (defined by section 68), and
(b)
low cost home ownership accommodation (defined by section 69).
(2)
Accommodation which becomes “social housing” by satisfying subsection
30
(1)(a) or (b) remains “social housing” for the purposes of this Part unless and
until an event specified in sections 72 to 75 occurs.
(3)
Section 76 makes transitional provision as a result of which certain
accommodation is to be treated as “social housing” whether or not it satisfies
subsection (1)(a) or (b).
35
68
Low cost rental
Accommodation is low cost rental accommodation if—
(a)
it is made available for rent,
(b)
the rent is below the market rate, and

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 1 — Introduction
32

(c)
the accommodation is made available in accordance with rules for
eligibility designed to ensure that it is occupied by people who cannot
afford to buy or rent at market rate.
69
Low cost home ownership
(1)
Accommodation is low cost home ownership accommodation if the following
5
conditions are satisfied.
(2)
Condition 1 is that the accommodation is occupied, or made available for
occupation, in accordance with—
(a)
shared ownership arrangements,
(b)
equity percentage arrangements, or
10
(c)
shared ownership trusts.
(3)
Condition 2 is that the accommodation is made available in accordance with
rules for eligibility designed to ensure that it is occupied by people who cannot
afford to buy or rent at market rate.
(4)
“Shared ownership arrangements” means arrangements for rental under a
15
lease which—
(a)
is granted on payment of a premium calculated by reference to a
percentage of either the value of the accommodation or the cost of
providing it, and
(b)
provides that the tenant (or the tenant’s personal representatives) will
20
or may be entitled to a sum calculated by reference to the value of the
accommodation.
(5)
“Equity percentage arrangements” means arrangements under which—
(a)
the owner of a freehold or leasehold interest in residential property
(“the seller”) conveys it to an individual (“the buyer”),
25
(b)
the buyer, in consideration for the conveyance—
(i)
pays the seller a sum (the “initial payment”) expressed to
represent a percentage of the value of the interest at the time of
the conveyance, and
(ii)
agrees to pay the seller other sums calculated by reference to a
30
percentage of the value of the interest at the time when each
sum is to be paid, and
(c)
the liability to make any payment required by the arrangements (apart
from the initial payment) is secured by a mortgage.
(6)
Shared ownership trusts has the same meaning as in Schedule 9 to the Finance
35
Act 2003 (stamp duty land tax).
(7)
The Secretary of State may make regulations amending—
(a)
the definition of “low cost home ownership accommodation”;
(b)
the definition of any of the sub-categories specified in that definition.
70
Shared ownership low cost rental
40
Accommodation which is both low cost rental accommodation and low cost
shared ownership accommodation is to be treated as the latter and not as the
former.