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Housing and Regeneration Bill


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

33

 

71      

Regulations

(1)   

The Secretary of State may make regulations providing that specified

accommodation, or a specified class of accommodation, is or is not to be treated

as social housing for the purposes of this Part.

(2)   

The regulations may provide for accommodation to be social housing despite

5

not satisfying section 67(1)(a) or (b) where the Secretary of State thinks the

accommodation is of a kind, or is provided in circumstances, that serve the

needs of a group whose needs are not adequately served by the commercial

housing market.

(3)   

The regulations—

10

(a)   

may override section 67(2),

(b)   

are subject to sections 67(3) and 76, and

(c)   

are subject to sections 68 and 69 (but may clarify doubt about the

application of those sections).

(4)   

The regulations—

15

(a)   

may make provision by reference to the opinion of the regulator or

another specified person, and

(b)   

may make provision by reference to designation, agreement or other

action by the regulator or another specified person.

72      

Leaving the social housing stock: sale

20

(1)   

A dwelling ceases to be social housing if it is sold to the tenant.

(2)   

Low cost rental accommodation is “sold to the tenant” when the tenant

exercises a statutory or contractual right and as a result becomes the owner

of—

(a)   

the freehold interest in the property, or

25

(b)   

the leasehold interest previously owned by the person providing the

social housing.

(3)   

Low cost home ownership accommodation of the shared ownership kind is

“sold to the tenant” when the tenant exercises a statutory or contractual right

and as a result becomes the owner of—

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(a)   

the freehold interest in the property, or

(b)   

the leasehold interest previously owned by the person providing the

social housing.

(4)   

Low cost home ownership accommodation of the equity percentage kind is

“sold to the tenant” when the “buyer” (see section 69(3)(a)) exercises a statutory

35

or contractual right as a result of which the equity percentage arrangements

(see section 69(3)) come to an end.

(5)   

Low cost home ownership accommodation of the shared ownership trust kind

comes to an end when the “purchaser” (see paragraph 7(4)(a) of Schedule 9 to

the Finance Act 2003) exercises a statutory or contractual right as a result of

40

which the trust comes to an end.

73      

Leaving the social housing stock: expired lease

(1)   

A dwelling ceases to be social housing if—

(a)   

the provider holds a leasehold interest in the dwelling, and

 
 

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

34

 

(b)   

the leasehold interest expires.

(2)   

A lease from an associate or subsidiary of the provider is disregarded for the

purposes of subsection (1).

74      

Leaving the social housing stock: disposal with consent

(1)   

A dwelling ceases to be social housing if it is disposed of with the regulator’s

5

consent in accordance with Chapter 5.

(2)   

Subsection (1) does not apply if the consent is conditional upon the dwelling

continuing to be low cost rental accommodation or low cost home ownership

accommodation.

(3)   

A condition of that kind shall include provision for determining when the

10

dwelling ceases to be social housing.

75      

Leaving the social housing stock: regulator’s direction

(1)   

The regulator may direct that a specified dwelling, which has ceased to be low

cost rental accommodation or low cost home ownership accommodation, is to

cease to be social housing.

15

(2)   

The regulator may make a direction only on the application of the provider.

76      

Housing stock under Housing Act 1996

(1)   

This section applies to property owned by a registered social landlord within

the meaning of Part 1 of the Housing Act 1996 (c. 52) before the coming into

force of section 63 of this Act.

20

(2)   

Property to which this section applies is social housing—

(a)   

whether or not it satisfies section 67(1)(a) or (b), and

(b)   

unless and until an event specified in sections 72 to 75 occurs.

(3)   

But property to which any of the exceptions below applies when section 63

comes into force is social housing only if the purchase, construction or

25

renovation of the property was funded by means of a grant under—

(a)   

section 22 (financial assistance by the HCA),

(b)   

section 18 of the Housing Act 1996 (social housing grant), or

(c)   

section 50 of the Housing Act 1988 (c. 50), section 41 of the Housing

Associations Act 1985 (c. 69) or section 29 or 29A of the Housing Act

30

1974 (c. 44) (housing association grant).

(4)   

Exception 1 is accommodation let on the open market.

(5)   

Exception 2 is a care home (within the meaning of the Care Standards Act 2000

(c. 14)) in which nursing is provided.

(6)   

Exception 3 is accommodation provided in response to a request by the

35

Secretary of State under section 100 of the Immigration and Asylum Act 1999

(c. 33) (support for asylum seekers).

(7)   

Exception 4 is property of a kind specified by regulations made by the

Secretary of State.

 
 

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

35

 

Other key concepts

77      

Regulator of Social Housing

(1)   

Section 80 establishes the Office referred to in this Part as “the regulator”.

(2)   

Chapter 2 makes provision for the regulator’s constitution and general powers.

(3)   

Other provisions of this Part confer functions on the regulator.

5

78      

English bodies

In this Part “English body” means—

(a)   

a registered charity whose address for the purposes of registration by

the Charity Commission is in England,

(b)   

an industrial and provident society whose registered office for the

10

purposes of the Industrial and Provident Societies Act 1965 (c. 12) is in

England,

(c)   

a registered company which has its registered office in England, and

(d)   

any other person (whether or not a body corporate registered under the

law of the United Kingdom) which—

15

(i)   

is not a Welsh body within the meaning of section 1A of the

Housing Act 1996 (c. 52), and

(ii)   

makes available, or intends to make available, accommodation

in England.

79      

Provider of social housing

20

(1)   

In this Chapter a reference to the provider of social housing is to be construed

as follows.

 

Type of social housing

Provider

 
 

Low cost rental accommodation

The landlord

 
 

Low cost home ownership

The landlord

 

25

 

accommodation: shared ownership

  
 

Low cost home ownership

“The seller” within the meaning of section

 
 

accommodation: equity percentage

69(3)(a)

 
 

Low cost home ownership

The “social landlord” within the meaning

 
 

accommodation: shared ownership trust

of paragraph 7(3) of Schedule 9 to the

 

30

  

Finance Act 2003

 

(2)   

Chapter 3 provides for the establishment of a register of providers of social

housing: persons listed in the register—

(a)   

may be referred to in an enactment or other instrument as “registered

providers of social housing”, and

35

(b)   

are referred to in this Part as “registered providers”.

 
 

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 2 — The Social Housing Regulator

36

 

Chapter 2

The Social Housing Regulator

Constitution

80      

Establishment

(1)   

There shall be a body corporate to be known as the Office for Tenants and

5

Social Landlords.

(2)   

The Office—

(a)   

may be referred to in an enactment or other instrument as “the

Regulator of Social Housing”, and

(b)   

is referred to in this Part as “the regulator”.

10

(3)   

The Office (and any member of the Office)—

(a)   

is not the servant or agent of the Crown, and

(b)   

does not share any immunity or privilege of the Crown.

81      

Membership

(1)   

The regulator shall consist of—

15

(a)   

a person appointed by the Secretary of State as chair,

(b)   

neither less than 3 nor more than 10 other members appointed by the

Secretary of State, and

(c)   

the chief executive appointed under section 83.

(2)   

The Secretary of State must consult the chair before appointing other members.

20

(3)   

The Secretary of State may appoint a person under subsection (1) only if

satisfied that the person has no financial or other personal interest in the

performance of functions.

(4)   

Former membership of the Housing Corporation is not a bar to appointment.

(5)   

In this Part “appointed member” means—

25

(a)   

the chair, or

(b)   

a member appointed under subsection (1)(b).

(6)   

A vacancy for, or a defect in the appointment of, the chair, the chief executive

or another member does not prevent or invalidate proceedings.

82      

Tenure

30

(1)   

An appointed member holds and vacates office in accordance with the terms

of appointment (subject to this section).

(2)   

A period of appointment may not exceed 5 years (but a member may be

reappointed).

(3)   

An appointed member may resign by notice to the Secretary of State.

35

(4)   

The Secretary of State may dismiss an appointed member if satisfied that any

of the following cases applies—

 
 

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 2 — The Social Housing Regulator

37

 

(a)   

Case 1 is where a member has been absent from meetings of the

regulator for a period of more than 6 months without its permission.

(b)   

Case 2 is where a member is subject to—

(i)   

a bankruptcy restrictions order, or

(ii)   

an interim bankruptcy restrictions order.

5

(c)   

Case 3 is where—

(i)   

a member’s estate has been sequestrated by a court in Scotland,

or

(ii)   

under the law of Scotland, a member has made a composition

or arrangement with, or granted a trust deed for, creditors.

10

(d)   

Case 4 is where a member has a financial or other personal interest

which is likely to influence the performance of functions.

(e)   

Case 5 is where a member has misbehaved or is for any other reason

unable, unsuitable or unwilling to perform functions.

83      

Chief executive

15

(1)   

The regulator shall appoint a chief executive.

(2)   

The regulator may appoint a person only if approved by the Secretary of State.

(3)   

The first chief executive shall be appointed by the Secretary of State, having

consulted the chair.

84      

Other staff

20

The regulator may appoint employees (in addition to the chief executive).

85      

Consequential amendments

(1)   

In Part 2 of the Table at the end of paragraph 3 of Schedule 1 to the Public

Records Act 1958 (c. 51) (bodies whose records are public records) insert at the

appropriate place—

25

“Office for Tenants and Social Landlords.”

(2)   

In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975

(c. 24) (bodies of which all members disqualified) insert at the appropriate

place—

“Office for Tenants and Social Landlords.”

30

(3)   

In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (c. 36) (public

bodies and offices) insert at the appropriate place—

“Office for Tenants and Social Landlords.”

Proceedings

86      

Fundamental objectives

35

(1)   

The regulator shall perform its functions with a view to achieving the

following objectives so far as possible.

(2)   

Objective 1 is to encourage and support a supply of well-managed social

housing, of appropriate quality, sufficient to meet reasonable demands.

 
 

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 2 — The Social Housing Regulator

38

 

(3)   

Objective 2 is to ensure that actual or potential tenants of social housing have

an appropriate degree of—

(a)   

choice, and

(b)   

protection.

(4)   

Objective 3 is to ensure that tenants of social housing have the opportunity to

5

be involved in its management.

(5)   

Objective 4 is to ensure that registered providers of social housing perform

their functions efficiently, effectively and economically.

(6)   

Objective 5 is to ensure that registered providers of social housing are

financially viable and properly managed.

10

(7)   

Objective 6 is to encourage registered providers of social housing to contribute

to the environmental, social and economic well-being of the areas in which the

housing is situated.

(8)   

Objective 7 is to encourage investment in social housing.

(9)   

Objective 8 is to avoid the imposition of an unreasonable burden (directly or

15

indirectly) on public funds.

(10)   

Objective 9 is to guard against the misuse of public funds.

(11)   

Objective 10 is to regulate in a manner which—

(a)   

minimises interference, and

(b)   

is proportionate, consistent, transparent and accountable.

20

(12)   

Pursuit of Objective 10 includes, but is not necessarily limited to, compliance

with any duty of the regulator under section 22 of the Legislative and

Regulatory Reform Act 2006 (c. 51) (code of practice).

(13)   

The order in which the objectives are listed in this section is not significant; the

regulator shall balance them as it thinks appropriate.

25

(14)   

The objectives are referred to in this Part as the regulator’s fundamental

objectives.

87      

Procedure

(1)   

The regulator may determine its own procedure (which may include provision

about a quorum).

30

(2)   

The regulator shall make such arrangements as it thinks appropriate for

publishing its procedure.

88      

Conflict of interest

(1)   

The regulator’s procedural arrangements under section 87 must include

arrangements for dealing with any conflict of interest of—

35

(a)   

members,

(b)   

employees, or

(c)   

members of committees and sub-committees.

(2)   

The arrangements must oblige a person—

(a)   

to declare any financial or other personal interest relevant to the

40

exercise of a function, and

 
 

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 2 — The Social Housing Regulator

39

 

(b)   

withdraw from the performance of that function unless the regulator

directs otherwise, being satisfied that the interest will not influence

performance of the function.

89      

Committees

(1)   

The regulator may establish committees and sub-committees.

5

(2)   

A committee or sub-committee may include non-members (provided that it

includes at least one member).

90      

Delegation

The regulator may authorise any of the following to exercise a function—

(a)   

a committee,

10

(b)   

a sub-committee,

(c)   

a member, and

(d)   

an employee.

91      

Annual report

(1)   

As soon as is reasonably practicable after the end of each financial year the

15

regulator shall—

(a)   

prepare a report on the performance of its functions during the year,

and

(b)   

send a copy to the Secretary of State.

(2)   

The report must, in particular—

20

(a)   

include a statement of the regulator’s accounts, and

(b)   

specify any direction given to the regulator by the Secretary of State in

that year under section 177.

(3)   

The Secretary of State shall lay a copy before Parliament.

Powers

25

92      

General

(1)   

The regulator may do anything it thinks necessary or expedient for the purpose

of or in connection with the performance of a function conferred on it by this

Part or another enactment.

(2)   

In particular, the regulator may do anything it thinks appropriate for

30

advancing its fundamental objectives.

93      

Studies

(1)   

The regulator may carry out or commission studies designed to improve the

economy, effectiveness and efficiency of registered providers.

(2)   

The regulator may publish a report on a study.

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