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
31

Provision
Topic

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

5

Section 23(6)
Loans: approved schemes

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

10

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

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

15

provident society: consent

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
20
In the following provisions of the Housing Act 1996 (c. 52) for “either House of
Parliament” substitute “the National Assembly for Wales”.

Provision
Topic

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

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

25

order

Section 17(7)
Right to acquire: orders and

regulations

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

Section 39(3)
Insolvency: order

30

Section 55(3)
Consequential: order

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

dissolution: order

66
Dissolution of Housing Corporation
(1)
The Secretary of State shall by order make provision for the dissolution of the
35
Housing Corporation.

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

(2)
The Secretary of State may by order make consequential amendment of
enactments referring to the Housing Corporation.
67
Transfer schemes
(1)
The Secretary of State may make one or more schemes for the transfer of the
Housing Corporation’s property, rights or liabilities to—
5
(a)
the regulator,
(b)
the HCA, or
(c)
the Secretary of State.
(2)
On the transfer date, the designated property, rights or liabilities are
transferred and vest in accordance with the scheme.
10
(3)
Schedule 6 applies to a scheme under this section.
(4)
In this section—
“designated”, in relation to a scheme, means specified in or determined in
accordance with the scheme;
“the transfer date” means the date specified by a scheme as the date on
15
which the scheme is to have effect.
68
Interim arrangements
The Secretary of State may by notice require the Housing Corporation to
provide staff, premises, facilities or other assistance to—
(a)
the regulator, or
20
(b)
the HCA.
Social housing
69
Basic principle
(1)
In this Part “social housing” means—
(a)
low cost rental accommodation (defined by section 70), and
25
(b)
low cost home ownership accommodation (defined by section 71).
(2)
Accommodation which becomes “social housing” by satisfying subsection
(1)(a) or (b) remains “social housing” for the purposes of this Part unless and
until an event specified in sections 74 to 77 occurs.
(3)
Section 78 makes transitional provision as a result of which certain
30
accommodation is to be treated as “social housing” whether or not it satisfies
subsection (1)(a) or (b).
70
Low cost rental
Accommodation is low cost rental accommodation if—
(a)
it is made available for rent,
35
(b)
the rent is below the market rate, and
(c)
the accommodation is made available in accordance with rules
designed to ensure that it is made available to people whose needs are
not adequately served by the commercial housing market.

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 1 — Introduction
33

71
Low cost home ownership
(1)
Accommodation is low cost home ownership accommodation if the following
conditions are satisfied.
(2)
Condition 1 is that the accommodation is occupied, or made available for
occupation, in accordance with—
5
(a)
shared ownership arrangements,
(b)
equity percentage arrangements, or
(c)
shared ownership trusts.
(3)
Condition 2 is that the accommodation is made available in accordance with
rules designed to ensure that it made available to people whose needs are not
10
adequately served by the commercial housing market.
(4)
“Shared ownership arrangements” means arrangements for rental under a
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
15
providing it, and
(b)
provides that the tenant (or the tenant’s personal representatives) will
or may be entitled to a sum calculated by reference to the value of the
accommodation.
(5)
“Equity percentage arrangements” means arrangements under which—
20
(a)
the owner of a freehold or leasehold interest in residential property
(“the seller”) conveys it to an individual (“the buyer”),
(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
25
the conveyance, and
(ii)
agrees to pay the seller other sums calculated by reference to a
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
30
from the initial payment) is secured by a mortgage.
(6)
Shared ownership trusts has the same meaning as in Schedule 9 to the Finance
Act 2003 (stamp duty land tax).
(7)
The Secretary of State may make regulations amending—
(a)
the definition of “low cost home ownership accommodation”;
35
(b)
the definition of any of the sub-categories specified in that definition.
72
Shared ownership low cost rental
Accommodation which is both low cost rental accommodation and low cost
home ownership accommodation is to be treated as the latter and not as the
former.
40
73
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.

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 1 — Introduction
34

(2)
The regulations may provide for accommodation to be social housing despite
not satisfying section 69(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.
5
(3)
The regulations—
(a)
may override section 69(2),
(b)
are subject to sections 69(3) and 78, and
(c)
are subject to sections 70 and 71 (but may clarify doubt about the
application of those sections).
10
(4)
The regulations—
(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.
15
74
Leaving the social housing stock: sale
(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—
20
(a)
the freehold interest in the property, or
(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
25
and as a result becomes the owner of—
(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
30
“sold to the tenant” when the “buyer” (see section 71(3)(a)) exercises a statutory
or contractual right as a result of which the equity percentage arrangements
(see section 71(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
35
the Finance Act 2003) exercises a statutory or contractual right as a result of
which the trust comes to an end.
75
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
40
(b)
the leasehold interest expires.
(2)
A lease from an associate or subsidiary of the provider is disregarded for the
purposes of subsection (1).