(1) The Corporation shall maintain a register of social landlords which shall be open to inspection at all reasonable times at the head office of the Corporation.
(2) On the commencement of this section every housing association which immediately before commencement was registered in the register kept by the Corporation under Part I of the [1985 c. 69.] Housing Associations Act 1985 shall be registered as a social landlord.
(1) A body is eligible for registration as a social landlord if it is—
(a) a registered charity which is a housing association,
(b) a society registered under the [1965 c. 12.] Industrial and Provident Societies Act 1965 which satisfies the conditions in subsection (2), or
(c) a company registered under the [1985 c. 6.] Companies Act 1985 which satisfies those conditions.
(2) The conditions are that the body is non-profit-making and is established for the purpose of, or has among its objects or powers, the provision, construction, improvement or management of—
(a) houses to be kept available for letting,
(b) houses for occupation by members of the body, where the rules of the body restrict membership to persons entitled or prospectively entitled (as tenants or otherwise) to occupy a house provided or managed by the body, or
(c) hostels,
and that any additional purposes or objects are among those specified in subsection (4).
(3) For the purposes of this section a body is non-profit-making if—
(a) it does not trade for profit, or
(b) its constitution or rules prohibit the issue of capital with interest or dividend exceeding the rate prescribed by the Treasury for the purposes of section 1(1)(b) of the [1985 c. 69.] Housing Associations Act 1985.
(4) The permissible additional purposes or objects are—
(a) providing land, amenities or services, or providing, constructing, repairing or improving buildings, for its residents, either exclusively or together with other persons;
(b) acquiring, or repairing and improving, or creating by the conversion of houses or other property, houses to be disposed of on sale, on lease or on shared ownership terms;
(c) constructing houses to be disposed of on shared ownership terms;
(d) managing houses held on leases or other lettings (not being houses within subsection (2)(a) or (b)) or blocks of flats;
(e) providing services of any description for owners or occupiers of houses in arranging or carrying out works of maintenance, repair or improvement, or encouraging or facilitating the carrying out of such works;
(f) encouraging and giving advice on the forming of housing associations or providing services for, and giving advice on the running of, such associations and other voluntary organisations concerned with housing, or matters connected with housing.
(5) A body is not ineligible for registration as a social landlord by reason only that its powers include power—
(a) to acquire commercial premises or businesses as an incidental part of a project or series of projects undertaken for purposes or objects falling within subsection (2) or (4);
(b) to repair, improve or convert commercial premises acquired as mentioned in paragraph (a) or to carry on for a limited period any business so acquired;
(c) to repair or improve houses, or buildings in which houses are situated, after a disposal of the houses by the body by way of sale or lease or on shared ownership terms.
(6) In this section—
“block of flats” means a building containing two or more flats which are held on leases or other lettings and which are occupied or intended to be occupied wholly or mainly for residential purposes;
“disposed of on shared ownership terms” means disposed of on a lease—
granted on a payment of a premium calculated by reference to a percentage of the value of the house or of the cost of providing it, or
under which the tenant (or his personal representatives) will or may be entitled to a sum calculated by reference directly or indirectly to the value of the house;
“letting” includes the grant of a licence to occupy;
“residents”, in relation to a body, means persons occupying a house or hostel provided or managed by the body; and
“voluntary organisation” means an organisation whose activities are not carried on for profit.
(7) The Secretary of State may by order specify permissible purposes, objects or powers additional to those specified in subsections (4) and (5).
The order may (without prejudice to the inclusion of other incidental or supplementary provisions) contain such provision as the Secretary of State thinks fit with respect to the priority of mortgages entered into in pursuance of any additional purposes, objects or powers.
(8) An order under subsection (7) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
(1) The Corporation may register as a social landlord any body which is eligible for such registration.
(2) An application for registration shall be made in such manner, and shall be accompanied by such fee (if any), as the Corporation may determine.
(3) As soon as may be after registering a body as a social landlord the Corporation shall give notice of the registration—
(a) in the case of a registered charity, to the Charity Commissioners,
(b) in the case of an industrial and provident society, to the appropriate registrar, and
(c) in the case of a company registered under the [1985 c. 6.] Companies Act 1985 (including such a company which is also a registered charity), to the registrar of companies,
who shall record the registration.
(4) A body which at any time is, or was, registered as a social landlord shall, for all purposes other than rectification of the register, be conclusively presumed to be, or to have been, at that time a body eligible for registration as a social landlord.
(1) A body which has been registered as a social landlord shall not be removed from the register except in accordance with this section.
(2) If it appears to the Corporation that a body which is on the register of social landlords—
(a) is no longer a body eligible for such registration, or
(b) has ceased to exist or does not operate,
the Corporation shall, after giving the body at least 14 days' notice, remove it from the register.
(3) In the case of a body which appears to the Corporation to have ceased to exist or not to operate, notice under subsection (2) shall be deemed to be given to the body if it is served at the address last known to the Corporation to be the principal place of business of the body.
(4) A body which is registered as a social landlord may request the Corporation to remove it from the register and the Corporation may do so, subject to the following provisions.
(5) Before removing a body from the register of social landlords under subsection (4) the Corporation shall consult the local authorities in whose area the body operates; and the Corporation shall also inform those authorities of its decision.
(6) As soon as may be after removing a body from the register of social landlords the Corporation shall give notice of the removal—
(a) in the case of a registered charity, to the Charity Commissioners,
(b) in the case of an industrial and provident society, to the appropriate registrar, and
(c) in the case of a company registered under the [1985 c. 6.] Companies Act 1985 (including such a company which is also a registered charity), to the registrar of companies,
who shall record the removal.
(1) The Corporation shall establish (and may from time to time vary) criteria which should be satisfied by a body seeking registration as a social landlord; and in deciding whether to register a body the Corporation shall have regard to whether those criteria are met.
(2) The Corporation shall establish (and may from time to time vary) criteria which should be satisfied where such a body seeks to be removed from the register of social landlords; and in deciding whether to remove a body from the register the Corporation shall have regard to whether those criteria are met.
(3) Before establishing or varying any such criteria the Corporation shall consult such bodies representative of registered social landlords, and such bodies representative of local authorities, as it thinks fit.
(4) The Corporation shall publish the criteria for registration and the criteria for removal from the register in such manner as the Corporation considers appropriate for bringing the criteria to the notice of bodies representative of registered social landlords and bodies representative of local authorities.
(1) A body which is aggrieved by a decision of the Corporation—
(a) not to register it as a social landlord, or
(b) to remove or not to remove it from the register of social landlords,
may appeal against the decision to the High Court.
(2) If an appeal is brought against a decision relating to the removal of a body from the register, the Corporation shall not remove the body from the register until the appeal has been finally determined or is withdrawn.
(3) As soon as may be after an appeal is brought against a decision relating to the removal of a body from the register, the Corporation shall give notice of the appeal—
(a) in the case of a registered charity, to the Charity Commissioners,
(b) in the case of an industrial and provident society, to the appropriate registrar, and
(c) in the case of a company registered under the [1985 c. 6.] Companies Act 1985 (including such a company which is also a registered charity), to the registrar of companies.
Schedule 1 has effect for the regulation of registered social landlords.
Part I relates to the control of payments to members and similar matters.
Part II relates to the constitution, change of rules, amalgamation or dissolution of a registered social landlord.
Part III relates to accounts and audit.
Part IV relates to inquiries into the affairs of a registered social landlord.
(1) A registered social landlord has power by virtue of this section and not otherwise to dispose, in such manner as it thinks fit, of land held by it.
(2) Section 39 of the [1925 c. 18.] Settled Land Act 1925 (disposal of land by trustees) does not apply to the disposal of land by a registered social landlord; and accordingly the disposal need not be for the best consideration in money that can reasonably be obtained.
Nothing in this subsection shall be taken to authorise any action on the part of a charity which would conflict with the trusts of the charity.
(3) This section has effect subject to section 9 (control by Corporation of land transactions).
(1) The consent of the Corporation, given by order under the seal of the Corporation, is required for any disposal of land by a registered social landlord under section 8.
(2) The consent of the Corporation may be so given—
(a) generally to all registered social landlords or to a particular landlord or description of landlords;
(b) in relation to particular land or in relation to a particular description of land,
and may be given subject to conditions.
(3) Before giving any consent other than a consent in relation to a particular landlord or particular land, the Corporation shall consult such bodies representative of registered social landlords as it thinks fit.
(4) A disposal of a house by a registered social landlord made without the consent required by this section is void unless—
(a) the disposal is to an individual (or to two or more individuals),
(b) the disposal does not extend to any other house, and
(c) the landlord reasonably believes that the individual or individuals intend to use the house as their principal dwelling.
(5) Any other disposal by a registered social landlord which requires consent under this section is valid in favour of a person claiming under the landlord notwithstanding that that consent has not been given; and a person dealing with a registered social landlord, or with a person claiming under such a landlord, shall not be concerned to see or inquire whether any such consent has been given.
(6) Where at the time of its removal from the register of social landlords a body owns land, this section continues to apply to that land after the removal as if the body concerned continued to be a registered social landlord.
(7) For the purposes of this section“disposal” means sale, lease, mortgage, charge or any other disposition.
(8) This section has effect subject to section 10 (lettings and other disposals not requiring consent of Corporation).
(1) A letting by a registered social landlord does not require consent under section 9 if it is—
(a) a letting of land under an assured tenancy or an assured agricultural occupancy, or what would be an assured tenancy or an assured agricultural occupancy but for any of paragraphs 4 to 8, or paragraph 12(1)(h), of Schedule 1 to the [1988 c. 50.] Housing Act 1988, or
(b) a letting of land under 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.
(2) Consent under section 9 is not required in the case of a disposal to which section 81 or 133 of the Housing Act 1988 applies (certain disposals for which the consent of the Secretary of State is required).
(3) Consent under section 9 is not required for a disposal under Part V of the Housing Act 1985 (the right to buy) or under the right conferred by section 16 below (the right to acquire).
(1) Where on a disposal of a house by a registered social landlord, in accordance with a consent given by the Corporation under section 9, a discount has been given to the purchaser, and the consent does not provide otherwise, the conveyance, grant or assignment shall contain a covenant binding on the purchaser and his successors in title to the following effect.
(2) The covenant shall be to pay to the landlord on demand, if within a period of three years there is a relevant disposal which is not an exempted disposal (but if there is more than one such disposal then only on the first of them), an amount equal to the discount reduced by one-third for each complete year which has elapsed after the conveyance, grant or assignment and before the further disposal.
(3) The liability that may arise under the covenant is a charge on the house, taking effect as if it had been created by deed expressed to be by way of legal mortgage.
(4) A charge taking effect by virtue of this section is a land charge for the purposes of section 59 of the [1925 c. 21.] Land Registration Act 1925 notwithstanding subsection (5) of that section (exclusion of mortgages), and subsection (2) of that section applies accordingly with respect to its protection and realisation.
(5) Where there is a relevant disposal which is an exempted disposal by virtue of section 15(4)(d) or (e) (compulsory disposal or disposal of yard, garden, &c.)—
(a) the covenant required by this section is not binding on the person to whom the disposal is made or any successor in title of his, and
(b) the covenant and the charge taking effect by virtue of this section ceases to apply in relation to the property disposed of.
(1) The charge taking effect by virtue of section 11 (charge for repayment of discount) has priority immediately after any legal charge securing an amount—
(a) left outstanding by the purchaser, or
(b) advanced to him by an approved lending institution for the purpose of enabling him to acquire the interest disposed of on the first disposal,
subject to the following provisions.
(2) An advance which is made for a purpose other than that mentioned in subsection (1)(b) and which is secured by a legal charge having priority to the charge taking effect by virtue of section 11, and any further advance which is so secured, shall rank in priority to that charge if, and only if, the registered social landlord by notice served on the institution concerned gives consent.
The landlord shall give consent if the purpose of the advance or further advance is an approved purpose.
(3) The registered social landlord may at any time by notice served on an approved lending institution postpone the charge taking effect by virtue of section 11 to an advance or further advance which—
(a) is made to the purchaser by that institution, and
(b) is secured by a legal charge not having priority to that charge;
and the landlord shall serve such a notice if the purpose of the advance or further advance is an approved purpose.
(4) The covenant required by section 11 does not, by virtue of its binding successors in title of the purchaser, bind a person exercising rights under a charge having priority over the charge taking effect by virtue of that section, or a person deriving title under him.
A provision of the conveyance, grant or assignment, or of a collateral agreement, is void in so far as it purports to authorise a forfeiture, or to impose a penalty or disability, in the event of any such person failing to comply with that covenant.
(5) In this section“approved lending institution” means—
(a) a building society, bank, insurance company or friendly society,
(b) the Corporation, or
(c) any body specified, or of a class or description specified, in an order made under section 156 of the [1985 c. 68.] Housing Act 1985 (which makes corresponding provision in relation to disposals in pursuance of the right to buy).
(6) The following are“approved purposes” for the purposes of this section—
(a) to enable the purchaser to defray, or to defray on his behalf, any of the following—
(i) the cost of any works to the house,
(ii) any service charge payable in respect of the house for works, whether or not to the house, and
(iii) any service charge or other amount payable in respect of the house for insurance, whether or not of the house, and
(b) to enable the purchaser to discharge, or to discharge on his behalf, any of the following—
(i) so much as is still outstanding of any advance or further advance which ranks in priority to the charge taking effect by virtue of section 11,
(ii) any arrears of interest on such an advance or further advance, and
(iii) any costs and expenses incurred in enforcing payment of any such interest, or repayment (in whole or in part) of any such advance or further advance.
In this subsection“service charge” has the meaning given by section 621A of the Housing Act 1985.
(7) Where different parts of an advance or further advance are made for different purposes, each of those parts shall be regarded as a separate advance or further advance for the purposes of this section.
(1) On the disposal by a registered social landlord, in accordance with a consent given by the Corporation under section 9, of a house situated in—
(a) a National Park,
(b) an area designated under section 87 of the National Parks and Access to the [1949 c. 97.] Countryside Act 1949 as an area of outstanding natural beauty, or
(c) an area designated as a rural area by order under section 157 of the [1985 c. 68.] Housing Act 1985,
the conveyance, grant or assignment may (unless it contains a condition of a kind mentioned in section 33(2)(b) or (c) of the Housing Act 1985 (right of pre-emption or restriction on assignment)) contain a covenant to the following effect limiting the freedom of the purchaser (including any successor in title of his and any person deriving title under him or such a successor) to dispose of the house.
(2) The limitation is that until such time (if any) as may be notified in writing by the registered social landlord to the purchaser or a successor in title of his, there will be no relevant disposal which is not an exempted disposal without the written consent of the landlord.
(3) That consent shall not be withheld if the person to whom the disposal is made (or, if it is made to more than one person, at least one of them) has, throughout the period of three years immediately preceding the application for consent—
(a) had his place of work in a region designated by order under section 157(3) of the Housing Act 1985 which, or part of which, is comprised in the National Park or area concerned, or
(b) had his only or principal home in such a region,
or if he has had the one in part or parts of that period and the other in the remainder.
The region need not have been the same throughout the period.
(4) A disposal in breach of such a covenant as is mentioned above is void.
(5) The limitation imposed by such a covenant is a local land charge and, if the land is registered under the [1925 c. 21.] Land Registration Act 1925, the Chief Land Registrar shall enter the appropriate restriction on the register of title as if an application to that effect had been made under section 58 of that Act.
(6) In this section“purchaser” means the person acquiring the interest disposed of by the first disposal.
(7) Where there is a relevant disposal which is an exempted disposal by virtue of section 15(4)(d) or (e) (compulsory disposal or disposal of yard, garden, &c.), any such covenant as is mentioned in this section ceases to apply in relation to the property disposed of.
(1) For the purposes of sections 9 to 13 the grant of an option enabling a person to call for a relevant disposal which is not an exempted disposal shall be treated as such a disposal made to him.
(2) For the purposes of section 13(2) (requirement of consent to disposal of house in National Park, &c.) consent to such a grant shall be treated as consent to a disposal made in pursuance of the option.
(1) In sections 11 to 14 the expression“relevant disposal which is not an exempted disposal” shall be construed as follows.
(2) A disposal, whether of the whole or part of the house, is a relevant disposal if it is—
(a) a conveyance of the freehold or an assignment of the lease, or
(b) the grant of a lease or sub-lease (other than a mortgage term) for a term of more than 21 years otherwise than at a rack-rent.
(3) For the purposes of subsection (2)(b) it shall be assumed—
(a) that any option to renew or extend a lease or sub-lease, whether or not forming part of a series of options, is exercised, and
(b) that any option to terminate a lease or sub-lease is not exercised.
(4) A disposal is an exempted disposal if—
(a) it is a disposal of the whole of the house and a conveyance of the freehold or an assignment of the lease and the person or each of the persons to whom it is made is a qualifying person (as defined in subsection (5));
(b) it is a vesting of the whole of the house in a person taking under a will or on an intestacy;
(c) it is a disposal of the whole of the house in pursuance of any such order as is mentioned in subsection (6);
(d) it is a compulsory disposal (as defined in subsection (7));
(e) the property disposed of is a yard, garden, outhouses or appurtenances belonging to a house or usually enjoyed with it.
(5) For the purposes of subsection (4)(a) a person is a qualifying person in relation to a disposal if—
(a) he is the person or one of the persons by whom the disposal is made,
(b) he is the spouse or a former spouse of that person or one of those persons, or
(c) he is a member of the family of that person or one of those persons and has resided with him throughout the period of twelve months ending with the disposal.
(6) The orders referred to in subsection (4)(c) are orders under—
(a) section 24 or 24A of the [1973 c. 18.] Matrimonial Causes Act 1973 (property adjustment orders or orders for the sale of property in connection with matrimonial proceedings);
(b) section 2 of the [1975 c. 63.] Inheritance (Provision for Family and Dependants) Act 1975 (orders as to financial provision to be made from estate);
(c) section 17 of the [1984 c. 42.] Matrimonial and Family Proceedings Act 1984 (property adjustment orders or orders for the sale of property after overseas divorce, &c.); or
(d) paragraph 1 of Schedule 1 to the [1989 c. 41.] Children Act 1989 (orders for financial relief against parents).
(7) For the purposes of subsection (4)(d) a compulsory disposal is a disposal of property which is acquired compulsorily, or is acquired by a person who has made or would have made, or for whom another person has made or would have made, a compulsory purchase order authorising its compulsory purchase for the purposes for which it is acquired.
(1) A tenant of a registered social landlord has the right to acquire the dwelling of which he is a tenant if—
(a) he is a tenant under an assured tenancy, other than an assured shorthold tenancy or a long tenancy, or under a secure tenancy,
(b) the dwelling was provided with public money and has remained in the social rented sector, and
(c) he satisfies any further qualifying conditions applicable under Part V of the [1985 c. 68.] Housing Act 1985 (the right to buy) as it applies in relation to the right conferred by this section.
(2) For this purpose a dwelling shall be regarded as provided with public money if—
(a) it was provided or acquired wholly or in part by means of a grant under section 18 (social housing grant),
(b) it was provided or acquired wholly or in part by applying or appropriating sums standing in the disposal proceeds fund of a registered social landlord (see section 25), or
(c) it was acquired by a registered social landlord after the commencement of this paragraph on a disposal by a public sector landlord at a time when it was capable of being let as a separate dwelling.
(3) A dwelling shall be regarded for the purposes of this section as having remained within the social rented sector if, since it was so provided or acquired—
(a) the person holding the freehold interest in the dwelling has been either a registered social landlord or a public sector landlord; and
(b) any person holding an interest as lessee (otherwise than as mortgagee) in the dwelling has been—
(i) an individual holding otherwise than under a long tenancy; or
(ii) a registered social landlord or a public sector landlord.
(4) A dwelling shall be regarded for the purposes of this section as provided by means of a grant under section 18 (social housing grant) if, and only if, the Corporation when making the grant notified the recipient that the dwelling was to be so regarded.
The Corporation shall before making the grant inform the applicant that it proposes to give such a notice and allow him an opportunity to withdraw his application within a specified time.
(1) The Secretary of State may by order—
(a) specify the amount or rate of discount to be given on the exercise of the right conferred by section 16; and
(b) designate rural areas in relation to dwellings in which the right conferred by that section does not arise.
(2) The provisions of Part V of the Housing Act 1985 apply in relation to the right to acquire under section 16—
(a) subject to any order under subsection (1) above, and
(b) subject to such other exceptions, adaptations and other modifications as may be specified by regulations made by the Secretary of State.
(3) The regulations may provide—
(a) that the powers of the Secretary of State under sections 164 to 170 of that Act (powers to intervene, give directions or assist) do not apply,
(b) that paragraphs 1 and 3 (exceptions for charities and certain housing associations), and paragraph 11 (right of appeal to Secretary of State), of Schedule 5 to that Act do not apply,
(c) that the provisions of Part V of that Act relating to the right to acquire on rent to mortgage terms do not apply,
(d) that the provisions of that Part relating to restrictions on disposals in National Parks, &c. do not apply, and
(e) that the provisions of that Part relating to the preserved right to buy do not apply.
Nothing in this subsection affects the generality of the power conferred by subsection (2).
(4) The specified exceptions, adaptations and other modifications shall take the form of textual amendments of the provisions of Part V of that Act as they apply in relation to the right to buy under that Part; and the first regulations, and any subsequent consolidating regulations, shall set out the provisions of Part V as they so apply.
(5) An order or regulations under this section—
(a) may make different provision for different cases or classes of case including different areas, and
(b) may contain such incidental, supplementary and transitional provisions as the Secretary of State considers appropriate.
(6) Before making an order which would have the effect that an area ceased to be designated under subsection (1)(b), the Secretary of State shall consult—
(a) the local housing authority or authorities in whose district the area or any part of it is situated or, if the order is general in its effect, local housing authorities in general, and
(b) such bodies appearing to him to be representative of registered social landlords as he considers appropriate.
(7) An order or regulations under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.