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 3 — Other provisions
Chapter 2 — Landlord and tenant matters
121

287
Shared ownership leases: protection for hard to replace houses
After paragraph 4 of Schedule 4A to the Leasehold Reform Act 1967 (c. 88)
(exclusion from enfranchisement for certain shared ownership leases for the
elderly) insert—
“Certain leases in protected areas
5
4A    (1)
A lease which does not fall within paragraph 3 is excluded from the
operation of this Part of this Act if—
(a)
the lease meets the conditions mentioned in sub-paragraph
(2) of that paragraph; and
(b)
the house is in a protected area.
10
      (2)
The appropriate national authority may by order made by statutory
instrument designate an area as a protected area if it considers it
appropriate to do so to support the provision in the area of houses,
or descriptions of houses, which are available for occupation in
accordance with shared ownership arrangements.
15
      (3)
The appropriate national authority must publish the criteria for the
time being in force which are to be taken into account by it in
deciding whether to designate an area as a protected area.
      (4)
Before making an order under sub-paragraph (2) the appropriate
national authority must take such steps as it considers to be
20
reasonable to consult those likely to be affected by the order.
      (5)
In any proceedings the court may, if it considers that it is just and
equitable to do so, treat a lease as meeting the conditions mentioned
in paragraph 3(2) despite the fact that the condition mentioned in
paragraph 3(2)(g) is not met.
25
      (6)
An order under this paragraph may contain such incidental,
supplementary, transitory, transitional or saving provisions as the
appropriate national authority considers appropriate.
      (7)
In this paragraph—
“appropriate national authority” means—
30
(a)
in relation to England, the Secretary of State; and
(b)
in relation to Wales, the Welsh Ministers; and
“shared ownership arrangements” has the same meaning as in
section 71 of the Housing and Regeneration Act 2008.
      (8)
An instrument containing—
35
(a)
an order of the Secretary of State under this paragraph is
subject to annulment in pursuance of a resolution of either
House of Parliament;
(b)
an order of the Welsh Ministers under this paragraph is
subject to annulment in pursuance of a resolution of the
40
National Assembly for Wales.”

Housing and Regeneration Bill
Part 3 — Other provisions
Chapter 2 — Landlord and tenant matters
122

Right to buy etc: miscellaneous
288
Exclusion of the right to buy: possession orders
(1)
For section 121(1) of the Housing Act 1985 (c. 68) (circumstances in which the
right to buy cannot be exercised) substitute—
“(1)
The right to buy cannot be exercised if the tenant is subject to an order
5
of the court for possession of the dwelling-house.”
(2)
Subsection (1) does not apply where the tenant has served a notice under
section 122 of that Act (tenant’s notice claiming to exercise right to buy) before
the coming into force of subsection (1) above and the notice is not withdrawn.
289
Exclusion of the right to buy: demolition notices
10
Schedule 9 (which makes provision about demolition notices) has effect.
290
Review of determination of value
(1)
The Housing Act 1985 is amended as follows.
(2)
After section 128 (determination of value by district valuer) insert—
“128A
Determination of value: review notices
15
(1)
Subsection (1) applies if the value of a dwelling-house has been
determined or re-determined under section 128 (“the section 128
determination”).
(2)
The district valuer may—
(a)
on the valuer’s own initiative, or
20
(b)
at the request of the landlord or the tenant of the dwelling-
house;

serve on the landlord and the tenant a notice of intention to review the
section 128 determination giving reasons for the intention (“a review
notice”).
25
(3)
The landlord or the tenant may not make such a request after the end
of the period of 28 days beginning with the section 128(5) service date.
(4)
The district valuer must, before the end of the period of 14 days
beginning with the day on which such a request is made, serve on the
landlord and the tenant—
30
(a)
a review notice; or
(b)
a notice stating—
(i)
that the request was made;
(ii)
that the district valuer has decided not to comply with
it; and
35
(iii)
the reasons for the decision.
(5)
A review notice may not be served after the end of the period of 42 days
beginning with the section 128(5) service date.
(6)
In this section and section 128B—
“a review notice” has the meaning given by subsection (1);
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Housing and Regeneration Bill
Part 3 — Other provisions
Chapter 2 — Landlord and tenant matters
123

“the section 128 determination” has the meaning given by
subsection (1);
“the section 128(5) service date” means the day on which the
landlord serves a notice on the tenant under section 128(5) in
relation to the section 128 determination.
5
128B
Review of determination of value
(1)
The district valuer must review the section 128 determination as soon
as reasonably practicable after serving a review notice.
(2)
Subsection (3) applies if, following the review, the district valuer
decides that neither of the withdrawal conditions is met.
10
(3)
The district valuer must, as soon as reasonably practicable, serve on the
landlord and the tenant a notice stating—
(a)
the decision;
(b)
the reasons for it; and
(c)
that no further determination or (as the case may be) re-
15
determination is to be made under this section.
(4)
Subsection (5) applies if, following the review, the district valuer
decides that either withdrawal condition is met or both are met.
(5)
The district valuer must—
(a)
as soon as reasonably practicable, withdraw the section 128
20
determination by serving a further determination notice on the
landlord and the tenant; and
(b)
make a further determination or (as the case may be) re-
determination.
(6)
Before making such a determination or re-determination, the district
25
valuer must consider any representation made to the valuer by the
landlord or the tenant before the end of the period of 14 days beginning
with the day on which the further determination notice was served.
(7)
As soon as practicable after such a determination or re-determination
has been made, the landlord must serve on the tenant a determination
30
effect notice.
(8)
A determination effect notice is a notice stating—
(a)
the effect of the further determination or (as the case may be) re-
determination; and
(b)
the matters mentioned in section 125(2) and (3).
35
(9)
For the purposes of this section, the withdrawal conditions are—
(a)
that a significant error was made in the section 128
determination; or
(b)
that the district valuer did not comply with section 128(4) in
relation to the section 128 determination.
40
(10)
In this section—
“a further determination notice” is a notice stating—
(a)
that the section 128 determination is withdrawn;
(b)
the reasons for the withdrawal; and

Housing and Regeneration Bill
Part 3 — Other provisions
Chapter 2 — Landlord and tenant matters
124

(c)
that a further determination or (as the case may be) re-
determination will be made;
“significant error”, in relation to the section 128 determination,
means an error of fact, or a number of such errors, made in the
section 128 determination as a result of which the value of the
5
dwelling-house determined or (as the case may be) re-
determined was at least 5% more or less than it would otherwise
have been.”
(3)
In section 125D(2) (period for serving tenant’s notice of intention), after
paragraph (b), insert “, and
10
(c)
where that determination or re-determination is withdrawn
and a further determination or re-determination made under
section 128B, the service of a notice under subsection (7) of that
section (a determination effect notice).”
(4)
In section 136(2) (period for serving notice of intention where there is a change
15
of secure tenant), after paragraph (b), insert “, and
(c)
where that determination or re-determination is withdrawn
and a further determination or re-determination made under
section 128B, the service of a notice under subsection (7) of that
section (a determination effect notice).”
20
(5)
In section 140(4) (circumstances in which landlord’s first notice to complete
may not be served), after paragraph (a), insert—
“(aa)
a review notice (within the meaning of section 128A) has been
served in relation to such a determination or re-determination
and the district valuer has neither—
25
(i)
served a notice under section 128B(3) (refusal to make
further determination), nor
(ii)
served a notice under section 128B(7) (a determination
effect notice),”.
(6)
In section 181(1) (jurisdiction of county court) after “128” insert “, 128B”.
30
(7)
This section does not apply to any determination or re-determination under
section 128 of the Housing Act 1985 (c. 68) which was required before the
coming into force of this section.
291
Approved lending institutions
(1)
In section 156 of the Housing Act 1985 (liability to repay is a charge on the
35
premises)—
(a)
in subsection (4) for “and any body specified, or of a class or description
specified, in an order made by the Secretary of State” substitute—
“an authorised mortgage lender.”, and
(b)
omit subsections (5) and (6).
40
(2)
In section 622(1) of that Act (minor definitions: general), after the definition of
“authorised insurer”, insert—
““authorised mortgage lender” means—
(a)
a person who has permission under Part 4 of the
Financial Services and Markets Act 2000 to enter
45
into a regulated mortgage contract as lender,

Housing and Regeneration Bill
Part 3 — Other provisions
Chapter 2 — Landlord and tenant matters
125

(b)
an EEA firm of the kind mentioned in paragraph
(5)(b) of Schedule 3 to that Act who has
permission under paragraph 15 of that Schedule
(as a result of qualifying for authorisation under
paragraph 12 of that Schedule) to enter into a
5
regulated mortgage contract as lender, or
(c)
a Treaty firm within the meaning of Schedule 4
to that Act who has permission under paragraph
4 of that Schedule (as a result of qualifying for
authorisation under paragraph 2 of that
10
Schedule) to enter into a regulated mortgage
contract as lender;”.
(3)
In section 622(2) of that Act (interpretation of “authorised deposit taker” and
“authorised insurer”) for “and “authorised insurer”” substitute “, “authorised
insurer” and “authorised mortgage lender””.
15
(4)
In section 36(4) of that Act (priority of charges: approved lending institutions)
for the words from “and any body” to the end substitute—
“an authorised mortgage lender.”
(5)
In section 151B(5) of that Act (priority of charges: approved lending
institutions) for the words from “and any body” to the end substitute—
20
“an authorised mortgage lender.”
(6)
In paragraph 2(5) of Schedule 11 to the Housing Act 1988 (c. 50) (priority of
charges: approved lending institutions) for paragraph (e) substitute—
“(e)
an authorised mortgage lender (within the meaning of the
Housing Act 1985 (see section 622 of that Act)).”
25
(7)
In section 12(5) of the Housing Act 1996 (c. 52) (priority of charges: approved
lending institutions) for paragraph (c) substitute—
“(c)
an authorised mortgage lender (within the meaning of the
Housing Act 1985 (see section 622 of that Act)).”
292
Former right to buy and other flats: service charge loans
30
(1)
In section 450C(4) of the Housing Act 1985 (c. 68) (loans in respect of service
charges on former right to buy flats and other housing authority flats)—
(a)
in paragraph (a) for “as regards the rate of interest payable on”
substitute “in a case where a rate of interest is payable on some or all
of”, and
35
(b)
after paragraph (a) insert—
“(aa)
in a case where amounts calculated by reference to the
market value of the flat are payable instead of (or as well
as) interest, make provision about calculating the
market value of the flat (including imposing charges for
40
the services of district valuers);”.
(2)
The powers conferred by section 450C(3) of that Act include, in relation to
loans made before the coming into force of subsection (1) above, the power to
prescribe terms, or (as the case may be) make provision, of the kind envisaged
by subsection (1)(b) above.
45

Housing and Regeneration Bill
Part 3 — Other provisions
Chapter 2 — Landlord and tenant matters
126

(3)
But any such terms or provision are not to apply to any particular loan made
before the coming into force of subsection (1) above unless the landlord and
tenant agree that they are to apply in that case.
293
Former right to buy and other flats: equity share purchases
After section 450C of the Housing Act 1985 (c. 68) (loans in respect of service
5
charges) insert—
“Other financial assistance in respect of service charges
450D
Purchase of equitable interests
(1)
The appropriate national authority may by regulations provide that
where—
10
(a)
a housing authority is the landlord of a flat under a long lease
granted or assigned by the housing authority or another
housing authority, and
(b)
the tenant is liable under the terms of the lease to pay service
charges in respect of repairs or improvements (whether to the
15
flat, the building in which it is situated or any other building or
land),

the landlord may, with the agreement of the tenant and in such
circumstances as may be prescribed, purchase an equitable interest in
the flat for the purpose of assisting the tenant to meet some or all of the
20
service charge payments.
(2)
Regulations under this section shall ensure that the purchase price is to
be met by the landlord reducing or (as the case may be) cancelling the
service charge payable to the landlord by the tenant to such extent as
corresponds to the amount concerned.
25
(3)
Regulations under this section may, in particular—
(a)
provide that the power to purchase an equitable interest does
not arise in the case of particular descriptions of landlord;
(b)
make provision about calculating the purchase price (including
provision about any discounts and about imposing charges for
30
the services of district valuers);
(c)
provide for—
(i)
the tenant to be liable for the administrative expenses of
the landlord in connection with the purchase;
(ii)
such expenses not to exceed such amount (if any) as may
35
be specified in the regulations;
(iii)
the purchase price to include, at the option of the
purchaser, a deduction for such expenses;
(d)
provide for an alteration, as a result of the purchase of the
equitable interest, in the liability of the tenant for future service
40
charges or improvement contributions.
(4)
Regulations under this section may not contain provision for cases
where the Secretary of State or the Welsh Ministers are the landlord
unless the Welsh Ministers are the landlord—
(a)
as the result of the exercise by them of functions under Part 3 of
45
the Housing Associations Act 1985; or

Housing and Regeneration Bill
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Chapter 2 — Landlord and tenant matters
127

(b)
as the result of—
(i)
the exercise by the former National Assembly for Wales,
the Secretary of State, Housing for Wales or the Housing
Corporation of functions under Part 3 of the Act of 1985;
and
5
(ii)
the transfer of the flat to the Welsh Ministers by virtue of
paragraph 39 of Schedule 11 to the Government of
Wales Act 2006.
(5)
For the purposes of this section a long lease granted or assigned by—
(a)
the Welsh Ministers, or
10
(b)
in a case falling within subsection (4)(b), the former National
Assembly for Wales, the Secretary of State, Housing for Wales
or the Housing Corporation,

shall be taken to have been granted or assigned by a housing authority
if (but only if) the person concerned granted or assigned it in exercise
15
of its powers under section 90 of the Housing Associations Act 1985.
(6)
This section does not affect any other power of the landlord to purchase
an equitable interest in the flat for the purpose of assisting the tenant to
meet some or all of the service charge payments.
(7)
Regulations under this section may apply whenever the lease
20
concerned was granted or assigned and whenever the service charge
concerned became payable.
(8)
Regulations under this section—
(a)
are to be made by statutory instrument;
(b)
may make different provision for different cases or descriptions
25
of case including different provision for different areas;
(c)
may contain such incidental, supplementary and transitional
provisions as the appropriate national authority considers
appropriate.
(9)
An instrument containing regulations made under this section—
30
(a)
by the Secretary of State is subject to annulment in pursuance of
a resolution of either House of Parliament;
(b)
by the Welsh Ministers is subject to annulment in pursuance of
a resolution of the National Assembly for Wales.
(10)
In this section—
35
“appropriate national authority” means—
(a)
in relation to England, the Secretary of State; and
(b)
in relation to Wales, the Welsh Ministers;
“former National Assembly for Wales” means the Assembly
constituted by the Government of Wales Act 1998;
40
“housing authority” includes—
(a)
any registered provider of social housing other than a
co-operative housing association;
(b)
any registered social landlord other than a co-operative
housing association; and
45
(c)
any co-operative housing association which is not—
(i)
a registered provider of social housing; or
(ii)
a registered social landlord;