Office of Public Sector Information
PART III continued
(1) Subject to subsections (2) and (3) below, the Secretary of State may by order provide that land specified in the order which is vested in statutory undertakers or any other public body or in a wholly-owned subsidiary of a public body shall vest in a housing action trust established or to be established for the designated area in which the land is situated.
(2) An order under this section may not specify land vested in statutory undertakers which is used for the purpose of carrying on their statutory undertakings or which is held for that purpose.
(3) In the case of land vested in statutory undertakers, the power to make an order under this section shall be exercisable by the Secretary of State and the appropriate Minister.
(4) Part I of Schedule 9 to this Act shall have effect for supplementing the preceding provisions of this section.
(5) An order under this section shall have the same effect as a declaration under the [1981 c. 66.] Compulsory Purchase (Vesting Declarations) Act 1981 except that, in relation to such an order, the enactments mentioned in Part II of Schedule 9 to this Act shall have effect subject to the modifications specified in that Part.
(6) Compensation under the [1961 c. 33.] Land Compensation Act 1961, as applied by subsection (5) above and Part II of Schedule 9 to this Act, shall be assessed by reference to values current on the date the order under this section comes into force.
(7) An order under this section shall be made by statutory instrument but no such order shall be made unless a draft of it has been laid before, and approved by a resolution of, each House of Parliament.
(1) For the purposes of achieving its objects (and performing any of its functions), a housing action trust may acquire land within its designated area by agreement or, on being authorised to do so by the Secretary of State, compulsorily.
(2) A housing action trust may acquire (by agreement or, on being authorised to do so by the Secretary of State, compulsorily)—
(a) land adjacent to the designated area which the trust requires for purposes connected with the discharge of its functions in the area; and
(b) land outside the designated area (whether or not adjacent to it) which the trust requires for the provision of services in connection with the discharge of its functions in the area.
(3) Where a housing action trust exercises its powers under subsection (1) or subsection (2) above in relation to land which forms part of a common or open space or fuel or field garden allotment, the trust may acquire (by agreement or, on being authorised to do so by the Secretary of State, compulsorily) land for giving in exchange for the land acquired.
(4) Subject to section 78 below, the [1981 c. 67.] Acquisition of Land Act 1981 shall apply in relation to the compulsory acquisition of land in pursuance of the preceding provisions of this section.
(5) A housing action trust may be authorised by the Secretary of State, by means of a compulsory purchase order, to purchase compulsorily such new rights as are specified in the order—
(a) being rights over land in the designated area and which the trust requires for the purposes of its functions;
(b) being rights over land adjacent to the designated area and which the trust requires for purposes connected with the discharge of its functions in the area; and
(c) being rights over land outside the designated area (whether or not adjacent to it) and which the trust requires for the provision of services in connection with the discharge of its functions in the area.
(6) In subsection (5) above—
(a) “new rights” means rights which are not in existence when the order specifying them is made; and
(b) “compulsory purchase order” has the same meaning as in the Acquisition of Land Act 1981;
and Schedule 3 to that Act shall apply to a compulsory purchase of a right by virtue of subsection (5) above.
(7) The provisions of Part I of the [1965 c. 56.] Compulsory Purchase Act 1965 (so far as applicable), other than section 31, shall apply in relation to the acquisition of land by agreement under this section; and in that Part as so applied “land” has the meaning given by the [1978 c. 30.] Interpretation Act 1978.
(1) The [1981 c. 67.] Acquisition of Land Act 1981, as applied by section 77 above, shall have effect subject to the modifications in Part I of Schedule 10 to this Act.
(2) The supplementary provisions in Parts II and III of that Schedule shall have effect, being,—
(a) as to those in Part II, provisions about land vested in or acquired by a housing action trust under this Part of this Act; and
(b) as to those in Part III, provisions about the acquisition by a housing action trust of rights over land under section 77(5) above.
(3) In Schedule 1 to the [1961 c. 33.] Land Compensation Act 1961 (actual or prospective development which is not to be taken into account in assessing compensation in certain cases or the effect of which is to reduce compensation in certain cases of adjacent land in the same ownership), the following paragraph shall be added after the paragraph 4A inserted by section 145 of the [1980 c. 65.] Local Government, Planning and Land Act 1980:
| “4B. Where any of the relevant land forms part of a housing action trust area established under Part III of the Housing Act 1988. | Development of any land other than the relevant land in the course of the development or re-development of the area as a housing action trust area.” |
(4) In section 6 of the Land Compensation Act 1961 (disregard of actual or prospective development in certain cases) in subsection (1)(b) for “4A” there shall be substituted “4B”.
(1) Subject to subsection (2) below and any directions given by the Secretary of State, a housing action trust may, with the consent of the Secretary of State, dispose of any land for the time being held by it to such persons, in such manner and on such terms as it considers expedient for the purpose of achieving its objects.
(2) A housing action trust may not dispose of a house which is for the time being subject to a secure tenancy except—
(a) to a person who is for the time being approved by the Corporation either under this section or under section 94 below, or
(b) to a local housing authority or other local authority in accordance with section 84 below;
but this subsection does not apply to a disposal under Part V of the [1985 c. 68.] Housing Act 1985 (the right to buy).
(3) The reference in subsection (1) above to disposing of land includes a reference to granting an interest in or right over land and, in particular, the granting of an option to purchase the freehold of, or any other interest in, land is a disposal for the purposes of that subsection; and a consent under that subsection given to such a disposal extends to a disposal made in pursuance of the option.
(4) The consent of the Secretary of State referred to in subsection (1) above may be given—
(a) either generally to all housing action trusts or to a particular trust or description of trust;
(b) either in relation to particular land or in relation to land of a particular description; and
(c) subject to conditions.
(5) Without prejudice to the generality of subsection (4)(c) above, consent under subsection (1) above may, in particular, be given subject to conditions as to the price, premium or rent to be obtained by the housing action trust on the disposal, including conditions as to the amount by which, on the disposal of a house by way of sale or by the grant or assignment of a lease at a premium, the price or premium is to be, or may be, discounted by the housing action trust.
(6) The Corporation shall not under this section approve—
(a) a public sector landlord; or
(b) the council of a county; or
(c) any other body which the Corporation have reason to believe might not be independent of such a landlord or council;
and, for the purposes of paragraph (c) above, a body shall not be regarded as independent of a public sector landlord or the council of a county if the body is or appears likely to be under the control of, or subject to influence from, such a landlord or council or particular members or officers of such a landlord or council.
(7) In subsection (6) above “public sector landlord” means—
(a) a local housing authority;
(b) a new town corporation within the meaning of section 4(b) of the [1985 c. 68.] Housing Act 1985; and
(c) the Development Board for Rural Wales.
(8) The Corporation shall establish (and may from time to time vary) criteria to be satisfied by a person seeking approval under this section and, in deciding whether to give such approval, the Corporation shall have regard to whether the person satisfies the criteria.
(9) Subject to any directions under section 76 of the [1985 c. 69.] Housing Associations Act 1985 (directions by the Secretary of State),—
(a) an approval under this section shall not be given except to a person making an application accompanied by such fee as the Corporation, with the consent of the Secretary of State, may specify; and
(b) an approval under this section may be made conditional upon the person or persons concerned entering into such undertakings as may be specified by the Corporation; and
(c) if it appears to the Corporation appropriate to do so (whether by reason of a failure to honour an undertaking or to meet any criteria or for any other reason) the Corporation may revoke an approval given under this section by notice in writing served on the approved person, but such a revocation shall not affect any transaction completed before the service of the notice;
and different fees may be specified under paragraph (a) above for different descriptions of cases.
(10) The Housing Corporation and Housing for Wales shall each maintain a register of persons for the time being approved by it under this section; and each register so maintained shall be open to inspection at the head office of the Corporation by which it is maintained at all reasonable times.
(11) In section 45(2)(b) of the [1985 c. 68.] Housing Act 1985 (which defines “public sector authority” for the purposes of provisions of that Act restricting service charges payable after disposal of a house) after the entry “an urban development corporation” there shall be inserted “a housing action trust”.
(12) A housing action trust shall be treated as a local authority for the purposes of sections 18 to 30 of the [1985 c. 70.] Landlord and Tenant Act 1985 (service charges).
(13) The provisions of Schedule 11 to this Act shall have effect in the case of certain disposals of houses by a housing action trust.
(1) Any disposal of a house by a housing action trust which is made without the consent required by section 79(1) above is void unless—
(a) the disposal is to an individual (or to two or more individuals); and
(b) the disposal does not extend to any other house.
(2) Subject to subsection (1) above,—
(a) a disposal of any land made by a housing action trust shall not be invalid by reason only that it is made without the consent required by section 79(1) above; and
(b) a person dealing with a housing action trust or with a person claiming under such a trust shall not be concerned to see or enquire whether any consent required by section 79(1) above has been obtained.
(1) If, by a material disposal, a housing action trust disposes of a house which is for the time being subject to a secure tenancy to such a person as is mentioned in section 79(2)(a) above (in this section referred to as an “approved person”), the conveyance shall contain a statement that the requirement of this section as to consent applies to a subsequent disposal of the house by the approved person.
(2) For the purposes of this section a “material disposal” is—
(a) the transfer of the fee simple;
(b) the transfer of an existing lease; or
(c) the grant of a new lease;
and “the conveyance” means the instrument by which such a disposal is effected.
(3) An approved person who acquires a house on a material disposal falling within subsection (1) above shall not dispose of it except with the consent of the Secretary of State which may be given either unconditionally or subject to conditions; but nothing in this subsection shall apply in relation to an exempt disposal as defined in subsection (8) below.
(4) Where an estate or interest in a house acquired by an approved person as mentioned in subsection (3) above has been mortgaged or charged, the prohibition in that subsection applies also to a disposal by the mortgagee or chargee in exercise of a power of sale or leasing, whether or not the disposal is in the name of the approved person; and in any case where—
(a) by operation of law or by virtue of an order of a court, property which has been acquired by an approved person passes or is transferred to another person, and
(b) that passing or transfer does not constitute a disposal for which consent is required under subsection (3) above,
this section (including, where there is more than one such passing or transfer, this subsection) shall apply as if the other person to whom the property passes or is transferred were the approved person.
(5) Before giving consent in respect of a disposal to which subsection (3) above applies, the Secretary of State—
(a) shall satisfy himself that the person who is seeking the consent has taken appropriate steps to consult every tenant of any house proposed to be disposed of; and
(b) shall have regard to the responses of any such tenants to that consultation.
(6) If, apart from subsection (7) below, the consent of the Corporation would be required under section 9 of the [1985 c. 69.] Housing Associations Act 1985 (control of dispositions of land by housing associations) for a disposal to which subsection (3) above applies, the Secretary of State shall consult the Corporation before giving his consent in respect of the disposal for the purposes of this section.
(7) No consent shall be required under the said section 9 for any disposal in respect of which consent is given in accordance with subsection (6) above.
(8) In this section an “exempt disposal” means—
(a) the disposal of a dwelling-house to a person having the right to buy it under Part V of the Housing Act 1985 (whether the disposal is in fact made under that Part or otherwise);
(b) a compulsory disposal, within the meaning of Part V of the Housing Act 1985;
(c) the disposal of an easement or rentcharge;
(d) the disposal of an interest by way of security for a loan;
(e) the grant of a secure tenancy or what would be a secure tenancy but for any of paragraphs 2 to 12 of Schedule 1 to the [1985 c. 68.] Housing Act 1985;
(f) the grant of an assured tenancy or an assured agricultural occupancy, within the meaning of Part I of this Act, or what would be such a tenancy or occupancy but for any of paragraphs 4 to 8 of Schedule 1 to this Act; and
(g) the transfer of an interest held on trust for any person where the disposal is made in connection with the appointment of a new trustee or in connection with the discharge of any trustee.
(9) Where the title of a housing action trust to a house which is disposed of by a material disposal falling within subsection (1) above is not registered—
(a) section 123 of the [1925 c. 21.] Land Registration Act 1925 (compulsory registration of title) applies in relation to the conveyance whether or not the house is in an area in which an Order in Council under section 120 of that Act (areas of compulsory registration) is in force;
(b) the housing action trust shall give the approved person a certificate stating that it is entitled to make the disposal subject only to such encumbrances, rights and interests as are stated in the conveyance or summarised in the certificate; and
(c) for the purpose of registration of title, the Chief Land Registrar shall accept such a certificate as evidence of the facts stated in it, but if as a result he has to meet a claim against him under the Land Registration Acts 1925 to 1986 the housing action trust is liable to indemnify him.
(10) On an application being made for registration of a disposition of registered land or, as the case may be, of the approved person’s title under a disposition of unregistered land, if the conveyance contains the statement required by subsection (1) above, the Chief Land Registrar shall enter in the register a restriction stating the requirement of this section as to consent to a subsequent disposal.
(11) In this section references to disposing of a house include references to—
(a) granting or disposing of any interest in the house;
(b) entering into a contract to dispose of the house or to grant or dispose of any such interest; and
(c) granting an option to acquire the house or any such interest;
and any reference to a statement or certificate is a reference to a statement or, as the case may be, certificate in a form approved by the Chief Land Registrar.
(1) This section applies where a house has been disposed of by a disposal falling within section 79(2) above and, in relation to a house which has been so disposed of, a “transferred tenant” means a tenant of it who either—
(a) was the secure tenant of the house immediately before the disposal; or
(b) is the widow or widower of the person who was then the secure tenant of it.
(2) On an application by a transferred tenant of a house who is a party or a prospective party to proceedings or prospective proceedings to determine any dispute between himself and the person who acquired the house on the disposal referred to in subsection (1) above, the Corporation may give assistance to the transferred tenant if it thinks fit to do so—
(a) on the ground that the case raises a question of principle; or
(b) on the ground that it is unreasonable, having regard to the complexity of the case, or to any other matter, to expect the transferred tenant to deal with it without assistance; or
(c) by reason of any other special consideration.
(3) Assistance given by the Corporation under this section may include—
(a) giving advice;
(b) procuring or attempting to procure the settlement of the matter in dispute;
(c) arranging for the giving of advice or assistance by a solicitor or counsel;
(d) arranging for representation by a solicitor or counsel, including such assistance as is usually given by a solicitor or counsel in the steps preliminary or incidental to any proceedings, or in arriving at or giving effect to a compromise to avoid or bring to an end any proceedings; and
(e) any other form of assistance which the Corporation may consider appropriate;
but paragraph (d) above does not affect the law and practice regulating the descriptions of persons who may appear in, conduct, defend and address the court in any proceedings.
(4) In so far as expenses are incurred by the Corporation in providing a transferred tenant with assistance under this section, the recovery of those expenses (as taxed or assessed in such manner as may be prescribed by rules of court) shall constitute a first charge for the benefit of the Corporation—
(a) on any costs which (whether by virtue of a judgment or order of a court or an agreement or otherwise) are payable to the tenant by any other person in respect of the matter in connection with which the assistance was given, and
(b) so far as relates to any costs, on his rights under any compromise or settlement arrived at in connection with that matter to avoid or bring to an end any proceedings;
but subject to any charge under the [1988 c. 34.] Legal Aid Act 1988 and to any provision of that Act for payment of any sum to the Legal Aid Board.
(1) Parts IV and V of the [1985 c. 68.] Housing Act 1985 (secure tenancies and the right to buy) shall be amended in accordance with this section.
(2) In section 80(1) (which lists the landlords whose tenancies can qualify as secure tenancies), after the entry specifying a new town corporation there shall be inserted—
“a housing action trust”.
(3) In section 108 (heating charges to secure tenants), in paragraph (a) of subsection (5) (the definition of “heating authority”) after the words “housing authority” there shall be inserted “or housing action trust”.
(4) In section 114 (meaning of “landlord authority” for the purposes of that Part), in each of subsections (1) and (2), after the entry specifying a development corporation, there shall be inserted—
“a housing action trust”.
(5) In section 171 (power to extend right to buy where certain bodies hold an interest in a dwelling-house), in subsection (2), after the entry specifying a new town corporation there shall be inserted—
“a housing action trust”.
(6) In each of the following provisions (all of which relate to cases where premises are or were let to a person in consequence of employment), namely—
(a) paragraph 2(1) of Schedule 1 (tenancies which are not secure tenancies),
(b) Grounds 7 and 12 of Schedule 2 (grounds for possession of dwelling-houses let under secure tenancies),
(c) Ground 5 of Schedule 3 (grounds for withholding consent to assignment by way of exchange), and
(d) paragraph 5 of Schedule 5 (exceptions to the right to buy),
after the entry specifying a new town corporation there shall be inserted—
“a housing action trust”.
(7) In Schedule 4 (qualifying period for right to buy and discount), in paragraph 7 (the landlord condition) after the entry specifying a new town corporation there shall be inserted—
“a housing action trust”.
(1) The provisions of this section apply in any case where a housing action trust proposes to make a disposal of one or more houses let on secure tenancies which would result in a person who, before the disposal, is a secure tenant of the trust becoming, after the disposal, the tenant of another person.
(2) Before applying to the Secretary of State for consent to the proposed disposal or serving notice under subsection (4) below, the housing action trust shall serve notice in writing—
(a) on any local housing authority in whose area any houses falling within subsection (1) above are situated, and
(b) if any such houses were transferred to the trust from another local housing authority or other local authority under section 74 above, on that authority,
informing the authority of the proposed disposal, specifying the houses concerned, and requiring the authority within such period, being not less than 28 days, as may be specified in the notice, to serve on the trust a notice under subsection (3) below.
(3) A notice by a local housing authority or other local authority under this subsection shall inform the housing action trust, with respect to each of the houses specified in the notice under subsection (2) above which is in the authority’s area or, as the case may be, which was transferred from the authority as mentioned in paragraph (b) of that subsection,—
(a) that the authority wishes to acquire the house or is considering its acquisition; or
(b) that the authority does not wish to acquire the house;
and where the authority serves notice as mentioned in paragraph (a) above with respect to any house, the notice shall give information as to the likely consequences for the tenant if the house were to be acquired by the authority.
(4) Before applying to the Secretary of State for consent to the proposed disposal, and after the expiry of the period specified in the notice under subsection (2) above, the housing action trust shall serve notice in writing on the secure tenant—
(a) informing him of the proposed disposal and of the name of the person to whom the disposal is to be made;
(b) containing such other details of the disposal as seem to the trust to be appropriate;
(c) informing him of the likely consequences of the disposal on his position as a secure tenant and, if appropriate, of the effect of sections 171A to 171H of the Housing Act 1985 (preservation of right to buy on disposal to private sector landlord);
(d) informing him, with respect to the house of which he is tenant, of the wishes of the local housing authority and of any other authority which has served a notice under subsection (3) above;
(e) if an authority has served notice under paragraph (a) of subsection (3) above with respect to that house, informing him (in accordance with the information given in the notice) of the likely consequences for him if the house were to be acquired by that authority and also, if he wishes to become a tenant of that authority, of his right to make representations to that effect under paragraph (f) below; and
(f) informing him of his right to make representations to the trust with respect to the proposed disposal within such period, being not less than 28 days, as may be specified in the notice.
(5) The housing action trust shall consider any representations made to it in accordance with subsection (4)(f) above and, if it considers it appropriate having regard to—
(a) any representations so made, and
(b) any further information which may be provided by an authority which served a notice under subsection (3)(a) above that it was considering the acquisition of a house,
the trust may amend its proposals with respect to the disposal and, in such a case, shall serve a further notice under subsection (4) above (in relation to which this subsection will again apply).
(6) When applying to the Secretary of State for consent to the proposed disposal (as amended, where appropriate, by virtue of subsection (5) above) the housing action trust shall furnish to him—
(a) a copy of any notice served on it under subsection (3) above or served by it under subsection (4) above;
(b) a copy of any representations received by the trust; and
(c) a statement of the consideration given by the trust to those representations.
(7) Without prejudice to the generality of section 72 above, where an application is made to the Secretary of State for consent to a disposal to which this section applies, the Secretary of State may, by a direction under that section, require the housing action trust—
(a) to carry out such further consultation with respect to the proposed disposal as may be specified in the direction; and
(b) to furnish to him such information as may be so specified with respect to the results of that consultation.
(8) Notwithstanding the application to a housing action trust of Part IV of the Housing Act 1985 (secure tenancies) a disposal falling within subsection (1) above shall be treated as not being a matter of housing management to which section 105 of that Act applies.
(1) A housing action trust may make such reasonable charges as it may determine for the tenancy or occupation of housing accommodation for the time being held by it.
(2) A housing action trust shall from time to time review rents and make such changes, either of rents generally or of particular rents, as circumstances may require.
(1) This section applies where a dwelling-house is let by a housing action trust on a periodic tenancy which is not a secure tenancy.
(2) The rent payable under the tenancy may, without the tenancy being terminated, be increased with effect from the beginning of a rental period by a written notice of increase given by the housing action trust to the tenant.
(3) A notice under subsection (2) above is not effective unless—
(a) it is given at least four weeks before the first day of the rental period, or any earlier day on which the payment of rent in respect of that period falls to be made;
(b) it tells the tenant of his right to terminate the tenancy and of the steps to be taken by him if he wishes to do so; and
(c) it gives him the dates by which, if (by virtue of subsection (4) below) the increase is not to be effective, a notice to quit must be received by the trust and the tenancy be made to terminate.
(4) Where a notice is given under subsection (2) above specifying an increase in rent with effect from the beginning of a rental period and the tenancy continues into that period, the notice shall not have effect if—
(a) the tenancy is terminated by notice to quit given by the tenant in accordance with the provisions (express or implied) of the tenancy;
(b) the notice to quit is given before the expiry of the period of two weeks beginning on the day following the date on which the notice of increase is given, or before the expiry of such longer period as may be allowed by the notice of increase; and
(c) the date on which the tenancy is made to terminate is not later than the earliest day on which the tenancy could be terminated by a notice to quit given by the tenant on the last day of that rental period.
(5) In this section “rental period” means a period in respect of which a payment of rent falls to be made.
(1) With the approval of the Secretary of State, a housing action trust may enter into an agreement with another person whereby, in relation to any housing accommodation or other land held by the trust which is specified in the agreement, that other person shall exercise, as agent of the trust, such of the functions of the trust as are so specified.
(2) An agreement under subsection (1) above shall set out the terms on which the functions of the housing action trust are exercisable by the person who, under the agreement, is the agent of the trust (in this Part of this Act referred to as “the agent”).
(3) Where the agent is a body or association, an agreement under subsection (1) above may provide that the functions of the agent under the agreement may be performed by a committee or sub-committee, or by an officer, of the body or association.
(4) The approval of the Secretary of State under subsection (1) above may be given unconditionally or subject to conditions.
(5) References in this section to the functions of a housing action trust in relation to housing accommodation or other land include—
(a) functions conferred by any statutory provision, and
(b) the powers and duties of the trust as holder of an estate or interest in the housing accommodation or land in question.
(1) A housing action trust shall use its best endeavours to secure that its objects are achieved as soon as practicable.
(2) Where it appears to a trust that its objects have been substantially achieved, it shall—
(a) so far as practicable, dispose or arrange to dispose of any remaining property, rights or liabilities of the trust in accordance with the preceding provisions of this Part of this Act; and
(b) submit proposals to the Secretary of State for—
(i) the dissolution of the trust;
(ii) the disposal to any person of any remaining property, rights or liabilities of the trust which it has not been able to dispose of or arrange to dispose of under paragraph (a) above; and
(iii) the transfer of any function exercisable by the trust to another person (including, where appropriate, a person with whom the trust has entered into an agreement under section 87 above).
(3) The Secretary of State may by order provide for the dissolution of a housing action trust and for any such disposal or transfer as is mentioned in subsection (2)(b) above, whether by way of giving effect (with or without modifications) to any proposals submitted to him under subsection (2) above or otherwise.
(4) Any order under this section—
(a) where it provides for any such disposal or transfer as is mentioned in subsection (2)(b) above, may be on such terms, including financial terms, as the Secretary of State thinks fit and may create or impose such new rights or liabilities in respect of what is transferred as appear to him to be necessary or expedient;
(b) may contain such supplementary and transitional provisions as the Secretary of State thinks necessary or expedient, including provisions amending any enactment or any instrument made under any enactment or establishing new bodies corporate to receive any functions, property, rights or liabilities transferred by the order; and
(c) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
Housing Act 1988