Localism Bill

House of Commons

Session 2010 - 11
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Other Bills before Parliament

Localism Bill

Localism Bill
Schedule 17 — Regulation of social housing
352

      (2)
In paragraph (a) for “198” substitute “198B”.
      (3)
In paragraph (d) for “complaints” substitute “the submission of information
and opinions”.
3     (1)
Section 193 (standards as to provision of social housing) is amended as
follows.
5
      (2)
In the heading for “Provision of social housing” substitute “Standards
relating to consumer matters”.
      (3)
In subsection (2) omit paragraph (c).
4     (1)
Section 194 (management of financial and other affairs of registered
providers) is amended as follows.
10
      (2)
In the heading for “Management” substitute “Standards relating to
economic matters”.
      (3)
In subsection (1) omit “the management of”.
      (4)
After that subsection insert—
“(1A)
Standards under subsection (1) may, in particular, require private
15
registered providers to comply with specified rules about—
(a)
the management of their financial and other affairs, and
(b)
their efficiency in carrying on their financial and other
affairs.”
      (5)
After subsection (2) insert—
20
“(2A)
The regulator may set standards for registered providers requiring
them to comply with specified rules about their levels of rent (and
the rules may, in particular, include provision for minimum or
maximum levels of rent or levels of increase or decrease of rent).”
5     (1)
Section 195 (code of practice relating to standards) is amended as follows.
25
      (2)
In subsection (1)(a) after “standard” insert “under section 194”.
      (3)
In subsection (2) after “standards” insert “under that section”.
6
In section 197(1) (directions by Secretary of State as to standards) in each of
paragraphs (a) and (b) after “193” insert “or 194”.
7
In section 198 (supplemental provision about standards) omit subsection (1).
30
8
After that section insert—
“198A
Failure to meet standard under section 193
(1)
Failure by a registered provider to meet a standard under section 193
(standards relating to consumers matters) is a ground for exercising
a power in this Chapter or Chapter 7.
35
(2)
But a power to which this subsection applies may be exercised on
that ground only if the regulator thinks there are reasonable grounds
to suspect that—
(a)
the failure has resulted in a serious detriment to the
registered provider’s tenants or potential tenants, or
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Localism Bill
Schedule 17 — Regulation of social housing
353

(b)
there is a significant risk that, if no action is taken by the
regulator, the failure will result in a serious detriment to the
registered provider’s tenants or potential tenants.
(3)
Subsection (2) applies to the powers conferred by any of the
following—
5
(a)
section 199 (surveys);
(b)
section 201 (inspections);
(c)
section 206 (inquiries);
(d)
section 220 (enforcement notices);
(e)
section 227 (penalties);
10
(f)
section 237 (compensation);
(g)
section 247 (management tender);
(h)
section 251 (appointment of manager).
(4)
The risk that, if no action is taken by a registered provider or the
regulator, the registered provider will fail to meet a standard under
15
section 193 is a ground for exercising a power in this Chapter.
(5)
But a power in this Chapter may be exercised on that ground only if
the regulator thinks there are reasonable grounds to suspect that, if
the failure occurs—
(a)
the failure will result in a serious detriment to the registered
20
provider’s tenants or potential tenants, or
(b)
there will be a significant risk that, if no action is taken by the
regulator, the failure will result in a serious detriment to the
registered provider’s tenants or potential tenants.
(6)
In considering whether to exercise a power within subsection (1) or
25
(4) on the ground mentioned in that subsection, the regulator must
have regard to any information it has received from any of the
following—
(a)
the Commission for Local Administration in England;
(b)
a housing ombudsman appointed in accordance with a
30
scheme approved under section 51 of the Housing Act 1996;
(c)
any body appearing to the regulator to represent the interests
of tenants of social housing in England;
(d)
a county council in England, a district council, a London
borough council, the Common Council of the City of London
35
in its capacity as a local authority, the Council of the Isles of
Scilly or a parish council;
(e)
a member of any of the bodies listed in paragraph (d);
(f)
the Greater London Authority;
(g)
a Member of Parliament;
40
(h)
a fire and rescue authority under the Fire and Rescue Services
Act 2004;
(i)
the Health and Safety Executive;
(j)
the Secretary of State.
198B
Failure to meet standard under section 194
45
(1)
Failure by a registered provider to meet a standard under section 194
(standards relating to economic matters) is a ground for exercising a

Localism Bill
Schedule 17 — Regulation of social housing
354

power in this Chapter or Chapter 7 (if the power is otherwise
exercisable in relation to a registered provider of that kind).
(2)
The risk that, if no action is taken by a registered provider or the
regulator, the registered provider will fail to meet a standard under
section 194 is a ground for exercising a power in this Chapter.”
5
9     (1)
Section 201 (inspections) is amended as follows.
      (2)
For subsection (2) substitute—
“(2)
The person may be a member of the regulator’s staff if the Secretary
of State consents.
(2A)
Consent under subsection (2) may be general or specific.”
10
      (3)
Omit subsection (3).
      (4)
Omit subsection (6).
      (5)
For subsection (7) substitute—
“(7)
Arrangements for a person other than a member of the regulator’s
staff to carry out an inspection may include provision about
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payments.”
      (6)
In subsection (7A) after “person” insert “other than a member of the
regulator’s staff”.
      (7)
Omit subsection (8).
10    (1)
Section 202 (inspections: supplemental) is amended as follows.
20
      (2)
In subsection (6) omit paragraph (c).
      (3)
In subsection (7)—
(a)
at the end of paragraph (a) insert “and”, and
(b)
omit paragraph (c).
11
In section 203 (inspector’s powers) for subsection (12) substitute—
25
“(12)
In this section “inspector” means a person authorised in writing by
the regulator to exercise the powers under this section for the
purposes of an inspection under section 201.”
12
Omit section 204 (performance information).
13
Omit section 205 (publication of performance information).
30
14    (1)
Section 215 (guidance on use of intervention powers) is amended as follows.
      (2)
In subsection (1)(a) for “complaints” substitute “the submission of
information”.
      (3)
In subsection (2) for paragraphs (a) to (c) substitute “how the regulator will
deal with the submissions it receives.”
35
      (4)
Before subsection (3) insert—
“(2A)
Guidance under subsection (1)(b) must, in particular, specify how
the regulator applies and intends to apply the tests in section 198A

Localism Bill
Schedule 18 — Home information packs: consequential amendments
355

(use of certain powers in cases of failure or potential failure to
comply with standards under section 193).”
15
In section 216 (consultation)—
(a)
before paragraph (a) insert—
“(za)
the Secretary of State,”, and
5
(b)
omit paragraph (d).
16    (1)
Section 218 (exercise of enforcement powers) is amended as follows.
      (2)
In subsection (1) for “This section” substitute “Subsection (2)”.
      (3)
In subsection (2) omit paragraphs (b) and (c).
      (4)
After that subsection insert—
10
“(3)
Subsection (4) applies where the regulator is making a decision in
relation to—
(a)
the exercise, on a ground other than one specified in section
198A(1) (failure to meet standard under section 193), of a
power under this Chapter that is listed in section 198A(3), or
15
(b)
the exercise of a power under this Chapter that is not listed in
section 198A(3).
(4)
The regulator shall consider—
(a)
whether the failure or other problem concerned is serious or
trivial;
20
(b)
whether the failure or other problem is a recurrent or isolated
incident.”
Schedule 18
Section 156

Home information packs: consequential amendments
Terrorism Act 2000 (c. 11)
25
1
In Schedule 3A to the Terrorism Act 2000 (regulated sector and supervisory
authorities) in paragraph 2(1) (excluded activities)—
(a)
at the end of paragraph (d) insert “or”, and
(b)
omit paragraph (f).
Proceeds of Crime Act 2002 (c. 29)
30
2
In Schedule 9 to the Proceeds of Crime Act 2002 (regulated sector and
supervisory authorities) in paragraph 2(1) (excluded activities)—
(a)
at the end of paragraph (d) insert “or”, and
(b)
omit paragraph (f).
Housing and Regeneration Act 2008 (c. 17)
35
3
In section 290(2)(e) of the Housing and Regeneration Act 2008 (power to
make regulations) omit “made by virtue of Part 5 of the Housing Act 2004
(c. 34) (home information packs) or”.