Housing and Regeneration Bill

House of Commons

Session 2007 - 08
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Other Bills before Parliament

Housing and Regeneration Bill

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 5 — Disposal of property
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158
Section 157: supplemental
(1)
This section applies to property transferred to the regulator in accordance with
section 157(2)(a).
(2)
The regulator may dispose of the property only to a registered provider.
(3)
Where the registered provider wound up or dissolved was a charity, the
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regulator may dispose of the property only to a registered provider—
(a)
which is a charity, and
(b)
whose objects the regulator thinks are similar to those of the original
charity.
(4)
If the property includes land subject to a mortgage or charge, the regulator may
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dispose of the land—
(a)
subject to that mortgage or charge, or
(b)
subject to a new mortgage or charge in favour of the regulator.
159
Extension of sections 157 and 158
The Secretary of State may by regulations provide for sections 157 and 158 to
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apply in relation to a registered provider which is a charity but not a registered
company—
(a)
in specified circumstances, and
(b)
with specified modifications.
Chapter 5
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Disposal of property
Introductory
160
Overview
This Chapter makes provision about the disposal of property by registered
providers.
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161
Power to dispose
(1)
A registered provider may dispose of land.
(2)
Subsection (1) is subject to the following provisions of this Chapter (which
include provisions requiring the regulator’s consent for certain disposals).
Regulator’s consent
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162
Requirement of consent
(1)
Any disposal of land by a non-profit registered provider requires the
regulator’s consent unless it falls within an exception.
(2)
Any disposal of social housing by a profit-making registered provider requires
the regulator’s consent unless it falls within an exception.
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Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 5 — Disposal of property
65

(3)
The exceptions are listed in section 163.
163
Exceptions
(1)
This section lists exceptions to the requirement of consent in section 162.
(2)
Exception 1 is that consent is not required for disposal by a non-profit
registered provider by way of—
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(a)
an assured tenancy,
(b)
an assured agricultural occupancy,
(c)
an arrangement that would be an assured tenancy or an assured
agricultural occupancy but for any of paragraphs 4 to 8, or paragraph
12(1)(h), of Schedule 1 to the Housing Act 1988 (exclusions),
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(d)
a secure tenancy, or
(e)
an arrangement that would be a secure tenancy but for any of
paragraphs 2 to 12 of Schedule 1 to the Housing Act 1985 (exclusions).
(3)
Exception 2 is that consent is not required for a disposal to which section 81 or
133 of the Housing Act 1988 applies (disposals requiring consent).
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(4)
Exception 3 is that consent is not required for a disposal under Part V of the
Housing Act 1985 (right to buy).
(5)
Exception 4 is that consent is not required for a disposal in pursuance of a
tenant’s right to acquire under section 16 of the Housing Act 1996 (c. 52) (as
applied by section 167).
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164
Procedure
(1)
Consent may be—
(a)
general, or
(b)
specific (whether as to particular registered providers, as to particular
property, as to particular forms of disposal or in any other way).
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(2)
Consent may be retrospective.
(3)
Consent may be expressed by reference to a policy for disposals submitted by
a registered provider.
(4)
Consent may be conditional.
(5)
Before giving consent the regulator must consult—
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(a)
the HCA,
(b)
one or more bodies appearing to it to represent the interests of
registered providers, and
(c)
one or more bodies appearing to it to represent the interests of tenants.
(6)
Subsection (5) does not apply to specific consent relating only to one or more
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particular registered providers or properties.
165
Disposal without consent
(1)
A purported disposal by a registered provider is void if—
(a)
it requires the regulator’s consent, and
(b)
the regulator has not given consent.
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Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 5 — Disposal of property
66

(2)
But subsection (1) does not apply to a disposal by a non-profit registered
provider to one or more individuals (“the buyer”) if—
(a)
the disposal is of a single dwelling, and
(b)
the registered provider reasonably believes at the time of the disposal
that the buyer intends to use the property as the buyer’s principal
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residence.
Proceeds
166
Separate accounting
(1)
The accounts of a registered provider must show its net disposal proceeds, as
a separate “disposal proceeds fund”.
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(2)
The following are net disposal proceeds—
(a)
net proceeds of sale to a tenant in pursuance of the right to acquire
conferred by section 16 of the Housing Act 1996 (c. 52),
(b)
net proceeds of sale of property in respect of which a grant was made
under section 21 of that Act,
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(c)
grant received under section 20 or 21 of that Act,
(d)
repayments of discount in respect of which grant was received under
either of those sections,
(e)
other proceeds of sale specified by the regulator, and
(f)
other grants specified by the regulator.
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(3)
The regulator shall determine amounts to be deducted in determining net
proceeds of sale.
(4)
The method of constituting the disposal proceeds fund and showing it in the
accounts shall be in accordance with a direction of the regulator under section
123.
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(5)
Interest shall be added to the fund in accordance with a determination made
by the regulator.
Tenants’ rights and duties
167
Application of Housing Act 1996
(1)
The following provisions of the Housing Act 1996 shall continue to have effect
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in relation to social housing in England, with the modifications set out in
subsection (3) (and any other necessary modifications).
(2)
The provisions are—
(a)
sections 11 to 12 (repayment of discount on disposal),
(b)
sections 12A and 12B (landlord’s right of first refusal),
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(c)
section 13 (disposal of property in National Park),
(d)
sections 14 and 15 (supplemental), and
(e)
sections 16 to 17 (tenant’s right to acquire).
(3)
The provisions have effect with the following substitutions—

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 6 — Regulatory powers
67

Existing reference
Substituted reference

Registered social landlord
Registered provider

Relevant Authority
The regulator

Miscellaneous
168
Unregistered housing associations
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(1)
Part 1 of the Housing Associations Act 1985 (c. 69) (regulation of housing
associations) is amended as follows.
(2)
In the following provisions for “the Housing Corporation” substitute “the
Regulator of Social Housing”—
(a)
section 9(1A)(a) and (6)(a) (control of dispositions by unregistered
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housing associations), and
(b)
section 10(1)(a) (section 9: exceptions).
169
Former registered providers
Where a person ceases to be a registered provider, sections 161 to 165 continue
to apply in respect of any property owned by the person at any time when it
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was registered.
170
Trustees
Section 39 of the Settled Land Act 1925 (c. 18) (disposal by trustees: best price
etc.) shall not apply to the disposal of land by a registered provider.
171
Charities
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Nothing in this Chapter authorises a charity to effect a disposal which it would
not otherwise have power to effect.
Chapter 6
Regulatory powers
172
Overview
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This Chapter—
(a)
allows the regulator to set standards for the provision of social housing
(sections 173 to 178),
(b)
gives the regulator powers to monitor compliance (sections 179 to 186),
(c)
gives the regulator a degree of control over the governance of non-
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profit registered providers (sections 187 to 190),
(d)
allows the regulator to give guidance to registered providers (sections
191 to 193), and
(e)
allows the regulator to arrange for the accreditation of managers of
social housing (section 194).
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