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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

15

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

20

Disposal of property

Introductory

160     

Overview

This Chapter makes provision about the disposal of property by registered

providers.

25

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

5

(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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