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 1 — Introduction
35

76
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
consent in accordance with—
(a)
Chapter 5,
(b)
section 171D of the Housing Act 1985 (c. 68) (consent to certain
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disposals of housing obtained subject to the preserved right to buy), or
(c)
section 81 or 133 of the Housing Act 1988 (c. 50) (consent to certain
disposals of housing obtained from housing action trusts or local
authorities).
(2)
Subsection (1) does not apply to a disposal in pursuance of shared ownership
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arrangements or equity percentage arrangements.
(3)
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.
(4)
A condition of that kind shall include provision for determining when the
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dwelling ceases to be social housing.
77
Leaving the social housing stock: regulator’s direction
(1)
The regulator may direct that a specified dwelling is to cease to be social
housing.
(2)
The regulator may make a direction only on the application of the provider.
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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.
(2)
Property to which this section applies is social housing—
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(a)
whether or not it satisfies section 69(1)(a) or (b), and
(b)
unless and until an event specified in sections 74 to 77 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
renovation of the property was funded by means of a grant under—
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(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, section 41 of the Housing
Associations Act 1985 (c. 69) or section 29 or 29A of the Housing Act
1974 (c. 44) (housing association grant).
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(4)
Exception 1 is accommodation let on the open market.
(5)
Exception 2 is accommodation made available only to students in full-time
education or training.
(6)
Exception 3 is a care home (within the meaning of the Care Standards Act 2000
(c. 14)) in which nursing is provided.
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Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 1 — Introduction
36

(7)
Exception 4 is accommodation provided in response to a request by the
Secretary of State under section 100 of the Immigration and Asylum Act 1999
(c. 33) (support for asylum seekers).
(8)
Exception 5 is property of a kind specified by regulations made by the
Secretary of State.
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Other key concepts
79
Regulator of Social Housing
(1)
Section 82 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.
10
80
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
15
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—
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(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.
81
Provider of social housing
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(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

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accommodation: shared ownership

Low cost home ownership
“The seller” within the meaning of section

accommodation: equity percentage
71(5)(a)

Low cost home ownership
The “social landlord” within the meaning

accommodation: shared ownership trust
of paragraph 7(3) of Schedule 9 to the

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Finance Act 2003

(2)
Chapter 3 provides for the establishment of a register of providers of social
housing: persons listed in the register—

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 2 — The Social Housing Regulator
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(a)
may be referred to in an enactment or other instrument as “registered
providers of social housing”, and
(b)
are referred to in this Part as “registered providers”.
Chapter 2
The Social Housing Regulator
5
Constitution
82
Establishment
(1)
There shall be a body corporate to be known as the Office for Tenants and
Social Landlords.
(2)
The Office—
10
(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”.
(3)
The Office (and any member of the Office)—
(a)
is not the servant or agent of the Crown, and
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(b)
does not share any immunity or privilege of the Crown.
83
Membership
(1)
The regulator shall consist of—
(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
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Secretary of State, and
(c)
the chief executive appointed under section 85.
(2)
The Secretary of State must consult the chair before appointing other members.
(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
25
performance of functions.
(4)
Former membership of the Housing Corporation is not a bar to appointment.
(5)
In this Part “appointed member” means—
(a)
the chair, or
(b)
a member appointed under subsection (1)(b).
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(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.
84
Tenure
(1)
An appointed member holds and vacates office in accordance with the terms
of appointment (subject to this section).
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(2)
A period of appointment may not exceed 5 years (but a member may be
reappointed).

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 2 — The Social Housing Regulator
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(3)
An appointed member may resign by notice to the Secretary of State.
(4)
The Secretary of State may dismiss an appointed member if satisfied that any
of the following cases applies—
(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.
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(b)
Case 2 is where a member is subject to—
(i)
a bankruptcy restrictions order, or
(ii)
an interim bankruptcy restrictions order.
(c)
Case 3 is where—
(i)
a member’s estate has been sequestrated by a court in Scotland,
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or
(ii)
under the law of Scotland, a member has made a composition
or arrangement with, or granted a trust deed for, creditors.
(d)
Case 4 is where a member has a financial or other personal interest
which is likely to influence the performance of functions.
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(e)
Case 5 is where a member has misbehaved or is for any other reason
unable, unsuitable or unwilling to perform functions.
85
Chief executive
(1)
The regulator shall appoint a chief executive.
(2)
The regulator may appoint a person only if approved by the Secretary of State.
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(3)
The first chief executive shall be appointed by the Secretary of State, having
consulted the chair.
86
Other staff
The regulator may appoint employees (in addition to the chief executive).
87
Consequential amendments
25
(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—
“Office for Tenants and Social Landlords.”
(2)
In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975
30
(c. 24) (bodies of which all members disqualified) insert at the appropriate
place—
“Office for Tenants and Social Landlords.”
(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—
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“Office for Tenants and Social Landlords.”
Proceedings
88
Fundamental objectives
(1)
The regulator shall perform its functions with a view to achieving the
following objectives so far as possible.
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Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 2 — The Social Housing Regulator
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(2)
Objective 1 is to encourage and support a supply of well-managed social
housing, of appropriate quality, sufficient to meet reasonable demands.
(3)
Objective 2 is to ensure that actual or potential tenants of social housing have
an appropriate degree of—
(a)
choice, and
5
(b)
protection.
(4)
Objective 3 is to ensure that tenants of social housing have the opportunity to
be involved in its management.
(5)
Objective 4 is to ensure that registered providers of social housing perform
their functions efficiently, effectively and economically.
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(6)
Objective 5 is to ensure that registered providers of social housing are
financially viable and properly managed.
(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.
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(8)
Objective 7 is to encourage investment in social housing.
(9)
Objective 8 is to avoid the imposition of an unreasonable burden (directly or
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—
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(a)
minimises interference, and
(b)
is proportionate, consistent, transparent and accountable.
(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).
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(13)
The order in which the objectives are listed in this section is not significant; the
regulator shall balance them as it thinks appropriate.
(14)
The objectives are referred to in this Part as the regulator’s fundamental
objectives.
89
Procedure
30
(1)
The regulator may determine its own procedure (which may include provision
about a quorum).
(2)
The regulator shall make such arrangements as it thinks appropriate for
publishing its procedure.
90
Conflict of interest
35
(1)
The regulator’s procedural arrangements under section 89 must include
arrangements for dealing with any conflict of interest of—
(a)
members,
(b)
employees, or
(c)
members of committees and sub-committees.
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Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 2 — The Social Housing Regulator
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(2)
The arrangements must oblige a person—
(a)
to declare any financial or other personal interest relevant to the
exercise of a function, and
(b)
withdraw from the performance of that function unless the regulator
directs otherwise, being satisfied that the interest will not influence
5
performance of the function.
91
Committees
(1)
The regulator may establish committees and sub-committees.
(2)
A committee or sub-committee may include non-members (provided that it
includes at least one member).
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92
Delegation
The regulator may authorise any of the following to exercise a function—
(a)
a committee,
(b)
a sub-committee,
(c)
a member, and
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(d)
an employee.
93
Seal
(1)
The application of the regulator’s seal shall be authenticated by a member or
by some other person authorised (generally or specially) for that purpose.
(2)
A document purporting to be duly executed under the seal—
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(a)
shall be received in evidence, and
(b)
shall be treated as so executed unless the contrary is shown.
94
Annual report
(1)
As soon as is reasonably practicable after the end of each financial year the
regulator shall—
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(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—
(a)
include a statement of the regulator’s accounts, and
30
(b)
specify any direction given to the regulator by the Secretary of State in
that year under section 184.
(3)
The Secretary of State shall lay a copy before Parliament.
Powers
95
General
35
(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.

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 2 — The Social Housing Regulator
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(2)
In particular, the regulator may do anything it thinks appropriate for
advancing its fundamental objectives.
96
Studies
(1)
The regulator may carry out or commission studies designed to improve the
economy, effectiveness and efficiency of registered providers.
5
(2)
The regulator may publish a report on a study.
97
Financial assistance
(1)
The regulator may, where it thinks it advances a fundamental objective, give
financial assistance to a person in connection with—
(a)
undertaking research,
10
(b)
preparing guidance,
(c)
developing and publicising best practice, or
(d)
facilitating the management of social housing by tenants.
(2)
Financial assistance under subsection (1) may be given—
(a)
by way of grant,
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(b)
by way of loan,
(c)
by defraying expenditure on behalf of a person, or
(d)
in any other way except purchasing loan or share capital of a body
corporate or giving a guarantee or indemnity.
(3)
The regulator may, where it thinks it advances a fundamental objective, give
20
financial assistance to a registered provider by—
(a)
lending money to or in respect of the registered provider, or
(b)
giving a guarantee or indemnity in respect of the registered provider.
(4)
Financial assistance may be given under subsection (3) only with the consent
of the Secretary of State (given with the approval of the Treasury).
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(5)
Financial assistance under subsection (1) or (3) may be given on conditions
(which may include provision for repayment, with or without interest).
98
Evidence
In considering whether to exercise a power under this Part the regulator may
have regard to information or opinions from any source including, in
30
particular, from—
(a)
tenants,
(b)
bodies representing tenants,
(c)
local housing authorities, or
(d)
an ombudsman appointed by virtue of section 124.
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99
Information, advice &c.
(1)
The regulator may for the purpose of advancing its fundamental objectives—
(a)
publish ideas or information;
(b)
undertake research in relation to social housing;
(c)
provide guidance, advice, education or training.
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