Localism Bill

Session 2010 - 11
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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
5
the day on which section 139 of the Localism Act 2011 came into force
which is—
(a)
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
10
(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
15
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
20
payment”) in 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
25
particular, 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
30
within its Housing Revenue 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
35
(c)
the amount (if any) that, at such time and on such assumptions as the
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
40
by events.
(5)
A determination under this section may provide that the effect of the
calculation in relation to a local housing authority is that—

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

(a)
a settlement payment must be made by the Secretary of State to the
local housing authority,
(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.
5
142
Further payments
(1)
This section applies if a settlement payment has been made in respect of a local
housing 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
10
made—
(a)
by the Secretary of State to the local housing authority, or
(b)
by the local housing authority to the Secretary of State.
(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—
15
(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 authority or a calculation under that determination.
(4)
A determination under this section may be varied or revoked by a subsequent
20
determination.
143
Further provisions about payments
(1)
A payment under this Chapter must be made in such instalments, at such times
and in accordance with such arrangements as the Secretary of State may
determine.
25
(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
authority, or
(b)
to a person or body other than the Secretary of State by a local housing
30
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.
(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
35
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
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
40
time determined under this section for its payment.
(6)
A payment under this Chapter other than a payment under subsection (4) or
(5)—

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

(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;
(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.
5
(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.
(8)
A local housing authority to which such a requirement applies must comply
with it.
10
(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—
“Item 5A: sums payable under section 143 of the Localism Act 2011

Sums payable for the year to the Secretary of State under section
15
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
(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
20
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
authority, and
(b)
the maximum amount of such housing debt that the authority may
25
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.
(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
30
be, borne out by events.
(4)
A determination under this section may be varied or revoked by a subsequent
determination.
(5)
A local housing authority may not hold debt in contravention of a
determination under this section.
35
(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
functions relating to houses and other property within its Housing
Revenue Account, and
40
(b)
interest and other charges in respect of which are required to be carried
to the debit of that account.

Localism Bill
Part 6 — Housing
Chapter 4 — Housing mobility
128

145
Power to obtain information
(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.
(2)
The Secretary of State may exercise the powers under this section either
5
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
estimates as the Secretary of State thinks fit.
10
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,
(b)
for different local housing authorities, or
15
(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
professional bodes as the Secretary of State thinks appropriate.
20
(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
Secretary of State must send a copy of the determination to the local housing
25
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.
147
Interpretation
30
In this Chapter “local housing authority” has the same meaning as in the
Housing Act 1985.
Chapter 4
Housing mobility
148
Standards facilitating exchange of tenancies
35
(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,”.
(2)
In section 197(2) of that Act (power of Secretary of State to give directions to
40

Localism Bill
Part 6 — Housing
Chapter 5 — Regulation of Social Housing
129

regulator) after paragraph (c) insert “, or
(d)
methods of assisting tenants to exchange tenancies.”
149
Assisting tenants of social landlords to become home owners
In section 122 of the Housing and Regeneration Act 2008 (registered providers
of social housing in England: restriction on gifts and distributions to members
5
etc) after subsection (5) (the third class of permitted payments) insert—
“(5A)
Class 4 is payments which—
(a)
are in accordance with the constitution of the registered
provider,
(b)
are paid for the benefit of tenants of the provider, and
10
(c)
are in any particular case paid to assist the tenant to obtain other
accommodation by acquiring a freehold, or long-leasehold,
interest in a dwelling.
(5B)
For the purposes of subsection (5A)—
“long-leasehold interest”, in relation to a dwelling, means the
15
lessee’s interest under a lease of the dwelling granted, for a
premium, for a term certain exceeding 21 years;
“acquiring”, in relation to a long-leasehold interest in a dwelling,
includes acquiring by grant and acquiring by assignment.”
Chapter 5
20
Regulation of Social Housing
150
Transfer of functions from the Office for Tenants and Social Landlords to the
Homes and Communities Agency
(1)
Schedule 16 (transfer of functions from the Office for Tenants and Social
Landlords to the Homes and Communities Agency) has effect.
25
(2)
In that Schedule—
Part 1 amends the Housing and Regeneration Act 2008 (regulation of
social housing) so as to—
(a)
abolish the Office for Tenants and Social Landlords (“the
Office”),
30
(b)
create the Regulation Committee of the Homes and
Communities Agency (“the HCA”), and
(c)
transfer the functions of the Office to the HCA acting through
the Committee,
Part 2 makes consequential amendments to other enactments,
35
Part 3 contains provision transferring property, rights and liabilities of the
Office to the HCA, and
Part 4 contains transitional and saving provisions.
151
Regulation of social housing
Schedule 17 (regulation of social housing) has effect.
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Localism Bill
Part 6 — Housing
Chapter 6 — Other housing matters
130

Chapter 6
Other housing matters
Wales
152
Powers of the National Assembly for Wales
In Part 1 of Schedule 5 to the Government of Wales Act 2006 (Assembly
5
Measures: matters) in Field 11 (housing) after Matter 11.8 insert—
“Matter 11.9

Accounts of local authorities in respect of land, housing and other
buildings relating to their housing functions.
Matter 11.10
10

Borrowing by local authorities for the purposes of their housing
functions.
Matter 11.11

Subsidies or payments replacing subsidies from the Welsh Ministers
to local authorities, or from local authorities to the Welsh Ministers,
15
in respect of local authorities’ housing functions.”
Housing ombudsman
153
Housing complaints
(1)
In Schedule 2 to the Housing Act 1996 (social rented sector: housing
complaints) after paragraph 7 insert—
20
“Complaints must be referred by designated person
7A    (1)
A complaint against a social landlord is not “duly made” to a
housing ombudsman under an approved scheme unless it is made in
writing to the ombudsman by a designated person by way of referral
of a complaint made to the designated person.
25
      (2)
For the purposes of this paragraph “designated person” means—
(a)
a member of the House of Commons,
(b)
a member of the local housing authority for the district in
which the property concerned is located, or
(c)
a designated tenant panel (see paragraph 7B(1)) for the social
30
landlord.
      (3)
Before making a referral under sub-paragraph (1), a designated
person must obtain written consent from the complainant or the
complainant’s representative.
      (4)
Sub-paragraphs (5) and (6) apply if under sub-paragraph (1) a
35
designated person refers a complaint to a housing ombudsman.

Localism Bill
Part 6 — Housing
Chapter 6 — Other housing matters
131

      (5)
If the ombudsman decides—
(a)
not to investigate the complaint, or
(b)
to discontinue investigation of the complaint,

the ombudsman must prepare a statement of reasons for that
decision and send a copy of the statement to the designated person.
5
      (6)
If the ombudsman completes investigation of the complaint, the
ombudsman must inform the designated person of—
(a)
the results of the investigation, and
(b)
any determination made.
      (7)
In sub-paragraph (2)(b) “district” in relation to a local housing
10
authority has the same meaning as in the Housing Act 1985.
Designated tenant panels
7B    (1)
In paragraph 7A(2)(c) “designated tenant panel” means a group of
tenants which is recognised by a social landlord for the purpose of
referring complaints against the social landlord.
15
      (2)
There may be more than one designated tenant panel for a social
landlord.
      (3)
Where a social landlord becomes a member of an approved scheme,
the social landlord must give to the person administering the scheme
contact details for any designated tenant panel for the social
20
landlord.
      (4)
Where a group becomes a designated tenant panel for a social
landlord, the social landlord must, as respects each approved
scheme of which the social landlord is a member, give to the person
administering the scheme contact details for the panel.
25
      (5)
Where a group ceases to be a designated tenant panel for a social
landlord, the social landlord must inform the person administering
each approved scheme of which the social landlord is a member.
      (6)
A complaint referred to a housing ombudsman under an approved
scheme by a designated tenant panel for a social landlord is not
30
affected by the group concerned ceasing to be a designated tenant
panel for the social landlord.
Enforcement of a housing ombudsman’s determinations
7C    (1)
The Secretary of State may by order make provision for, or in
connection with, authorising a housing ombudsman under an
35
approved scheme to apply to a court or tribunal for an order that a
determination made by the ombudsman may be enforced as if it
were an order of a court.
      (2)
Before the Secretary of State makes an order under sub-paragraph
(1), the Secretary of State must consult—
40
(a)
one or more bodies appearing to the Secretary of State to
represent the interests of social landlords,
(b)
one or more bodies appearing to the Secretary of State to
represent the interests of other members of approved
schemes,
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