Localism Bill

House of Commons

Session 2010 - 11
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Other Bills before Parliament

Localism Bill

Localism Bill
Part 6 — Housing
Chapter 3 — Housing finance
125

139
Repairing obligations in leases of seven years or more
In section 13 of the Landlord and Tenant Act 1985 (leases to which the
provisions about repairing obligations in section 11 of that Act apply) after
subsection (1) insert—
“(1A)
Section 11 also applies to a lease of a dwelling-house granted on or after
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the day on which section 139 of the Localism Act 2011 came into force
which—
(a)
is a secure tenancy for a fixed term of seven years or more
granted by a person within section 80(1) of the Housing Act
1985 (secure tenancies: the landlord condition), or
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(b)
an assured tenancy for a fixed term of seven years or more
granted by a private registered provider of social housing.”
Chapter 3
Housing finance
140
Abolition of Housing Revenue Account subsidy in England
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Schedule 15 (abolition of Housing Revenue Account subsidy in England) has
effect.
141
Settlement payments
(1)
The Secretary of State may make a determination providing for the calculation of the
amount of a payment (referred to in this Chapter as a “settlement payment”) in
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relation to each local housing authority in England that keeps a Housing Revenue
Account.
(2)
A determination under this section may, in particular, provide for all or part of the
amount to be calculated in accordance with a formula or formulae.
(3)
In determining a formula for this purpose, the Secretary of State may, in particular,
25
include variables framed by reference to—
(a)
the amounts (if any) that, during such period and on such assumptions as the
Secretary of State may determine, are to be treated as amounts that will be
received by the local housing authority in connection with the exercise of its
functions relating to houses and other property within its Housing Revenue
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Account,
(b)
the amounts (if any) that, during such period and on such assumptions as the
Secretary of State may determine, are to be treated as amounts that will be paid
by the authority in connection with the exercise of those functions, and
(c)
the amount (if any) that, at such time and on such assumptions as the
35
Secretary of State may determine, is to be treated as the amount of debt held by
the authority in connection with the exercise of those functions.
(4)
A determination under this section may provide for an assumption to be made about
an amount whether or not the assumption is, or is likely to be, borne out by events.
(5)
A determination under this section may provide that the effect of the calculation in
40
relation to a local housing authority is that—
(a)
a settlement payment must be made by the Secretary of State to the local
housing authority,

Localism Bill
Part 6 — Housing
Chapter 3 — Housing finance
126

(b)
a settlement payment must be made by the local housing authority to the
Secretary of State, or
(c)
the amount of a settlement payment in relation to that authority is nil.
142
Further payments
(1)
This section applies if a settlement payment has been made in respect of a local housing
5
authority.
(2)
The Secretary of State may from time to time make a determination that a further
payment calculated in accordance with the determination must be made—
(a)
by the Secretary of State to the local housing authority, or
(b)
by the local housing authority to the Secretary of State.
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(3)
The Secretary of State may make a determination under this section only if there has
been a change in any matter that was taken into account in making—
(a)
the determination relating to the settlement payment or a calculation under
that determination, or
(b)
a previous determination under this section relating to the local housing
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authority or a calculation under that determination.
(4)
A determination under this section may be varied or revoked by a subsequent
determination.
143
Further provisions about payments
(1)
A payment under this Chapter must be made in such instalments, at such times
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and in accordance with such arrangements as the Secretary of State may
determine.
(2)
Arrangements under subsection (1) may include arrangements for payments
to be made—
(a)
by a person or body other than the Secretary of State to a local housing
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authority, or
(b)
to a person or body other than the Secretary of State by a local housing
authority.
(3)
A payment under this Chapter by a local housing authority must be
accompanied by such information as the Secretary of State may require.
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(4)
The Secretary of State may charge a local housing authority interest, at such
rates and for such periods as the Secretary of State may determine, on any sum
payable by the local housing authority under this Chapter that is not paid by a
time determined under this section for its payment.
(5)
The Secretary of State may charge a local housing authority an amount equal
35
to any additional costs incurred by the Secretary of State as a result of any sum
payable by the local housing authority under this Chapter not being paid by a
time determined under this section for its payment.
(6)
A payment under this Chapter other than a payment under subsection (4) or
(5)—
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(a)
if made by a local housing authority, is to be treated by the authority as
capital expenditure for the purposes of Chapter 1 of Part 1 of the Local
Government Act 2003;

Localism Bill
Part 6 — Housing
Chapter 3 — Housing finance
127

(b)
if made to a local housing authority, is to be treated by the authority as
a capital receipt for the purposes of that Chapter.
(7)
A determination under this Chapter may require a payment to a local housing
authority made under this Chapter to be used by the authority for a purpose
specified in the determination.
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(8)
A local housing authority to which such a requirement applies must comply
with it.
(9)
In Schedule 4 to the Local Government and Housing Act 1989 (the keeping of
the housing revenue account) in Part 2 (debits to the account) after item 5
insert—
10
“Item 5A: sums payable under section 143 of the Localism Act 2011

Sums payable for the year to the Secretary of State under section
143(4) or (5) of the Localism Act 2011 (interest etc charged as a result
of late payment of settlement payments etc).”
144
Limits on indebtedness
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(1)
The Secretary of State may from time to time make a determination providing
for the calculation in relation to each local housing authority in England that
keeps a Housing Revenue Account of—
(a)
the amount of housing debt that, at such time and on such assumptions
as the Secretary of State may determine, is to be treated as held by the
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authority, and
(b)
the maximum amount of such housing debt that the authority may
hold.
(2)
A determination under this section may, in particular, provide for all or part of
an amount to be calculated in accordance with a formula or formulae.
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(3)
A determination under this section may provide for assumptions to be made
in making a calculation whether or not those assumption are, or are likely to
be, borne out by events.
(4)
A determination under this section may be varied or revoked by a subsequent
determination.
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(5)
A local housing authority may not hold debt in contravention of a
determination under this section.
(6)
In this section “housing debt”, in relation to a local housing authority, means
debt—
(a)
which is held by the authority in connection with the exercise of its
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functions relating to houses and other property within its Housing
Revenue Account, and
(b)
interest and other charges in respect of which are required to be carried
to the debit of that account.
145
Power to obtain information
40
(1)
A local housing authority in England must supply the Secretary of State with
such information as the Secretary of State may specify for the purposes of
enabling the Secretary of State to exercise functions under this Chapter.

Localism Bill
Part 6 — Housing
Chapter 4 — Housing mobility
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(2)
The Secretary of State may exercise the powers under this section either
generally or in relation to a particular case.
(3)
If a local housing authority fails to comply with this section before the end of
such period as the Secretary of State may specify, the Secretary of State may
exercise functions under this Chapter on the basis of such assumptions and
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estimates as the Secretary of State thinks fit.
146
Determinations under this Chapter
(1)
A determination under this Chapter may make different provision for different
cases or descriptions of case, including different provision—
(a)
for different areas,
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(b)
for different local housing authorities, or
(c)
for different descriptions of local housing authority.
(2)
Before making a determination under this Chapter that relates to all local
housing authorities or a description of local housing authority, the Secretary of
State must consult such representatives of local government and relevant
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professional bodes as the Secretary of State thinks appropriate.
(3)
Before making a determination under this Chapter relating to a particular local
housing authority, the Secretary of State must consult that local housing
authority.
(4)
As soon as practicable after making a determination under this Chapter, the
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Secretary of State must send a copy of the determination to the local housing
authority or authorities to which it relates.
(5)
Section 87(4) to (7) (electronic communications) of the Local Government and
Housing Act 1989 applies to a determination under this Chapter as it applies to
a determination under Part 6 of that Act.
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147
Interpretation
In this Chapter “local housing authority” has the same meaning as in the
Housing Act 1985.
Chapter 4
Housing mobility
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148
Standards facilitating exchange of tenancies
(1)
In section 193 of the Housing and Regeneration Act 2008 (power for regulator
to set standards for registered providers) in subsection (2) after paragraph (g)
insert—
“(ga)
methods of assisting tenants to exchange tenancies,”.
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(2)
In section 197(2) of that Act (power of Secretary of State to give directions to
regulator) after paragraph (c) insert “, or
(d)
methods of assisting tenants to exchange tenancies.”