Housing Act 1996 (c. 52)

(The document as of February, 2008)

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Housing Act 1996

1996 CHAPTER 52

ARRANGEMENT OF SECTIONS

Content

Part I

Social rented sector
1. Chapter I
  
  Registered social landlords
  1. Registration
    1. 1. The register of social landlords.
    2. 2. Eligibility for registration.
    3. 3. Registration.
    4. 4. Removal from the register.
    5. 5. Criteria for registration or removal from register.
    6. 6. Appeal against decision on removal.
  2. Regulation of registered social landlords
    1. 7. Regulation of registered social landlords.
2. Chapter II
  
  Disposal of land and related matters
  1. Power of registered social landlord to dispose of land
    1. 8. Power of registered social landlord to dispose of land.
  2. Control by Corporation of land transactions
    1. 9. Consent required for disposal of land by registered social landlord.
    2. 10. Lettings and other disposals not requiring consent of Corporation.
    3. 11. Covenant for repayment of discount on disposal.
    4. 12. Priority of charge for repayment of discount.
    5. 13. Restriction on disposal of houses in National Parks, &c.
    6. 14. Treatment of options.
    7. 15. Relevant and exempted disposals.
  3. Right of tenant to acquire dwelling
    1. 16. Right of tenant to acquire dwelling.
    2. 17. Right of tenant to acquire dwelling: supplementary provisions.
3. Chapter III
  
  Grants and other financial matters
  1. Grants and other financial assistance
    1. 18. Social housing grants.
    2. 19. Land subject to housing management agreement.
    3. 20. Purchase grant where right to acquire exercised.
    4. 21. Purchase grant in respect of other disposals.
    5. 22. Assistance from local authorities.
    6. 23. Loans by Public Works Loans Commissioners.
  2. Treatment of disposal proceeds
    1. 24. The disposal proceeds fund.
    2. 25. Application or appropriation of disposal proceeds.
    3. 26. Disposal proceeds: power to require information.
  3. Recovery, &c. of social housing grants
    1. 27. Recovery, &c. of social housing grants.
  4. Grants, &c. under earlier enactments
    1. 28. Grants under ss.50 to 55 of the Housing Act 19881988.
    2. 29. Commutation of payments of special residual subsidy.
4. Chapter IV
  
  General powers of the Corporation
  1. Information
    1. 30. General power to obtain information.
    2. 31. Enforcement of notice to provide information, &c.
    3. 32. Disclosure of information to the Corporation.
    4. 33. Disclosure of information by the Corporation.
  2. Standards of performance
    1. 34. Standards of performance.
    2. 35. Information as to levels of performance.
  3. Housing management
    1. 36. Issue of guidance by the Corporation.
    2. 37. Powers of entry.
    3. 38. Penalty for obstruction of person exercising power of entry.
  4. Insolvency, &c. of registered social landlord
    1. 39. Insolvency, &c. of registered social landlord: scheme of provisions.
    2. 40. Initial notice to be given to the Corporation.
    3. 41. Further notice to be given to the Corporation.
    4. 42. Moratorium on disposal of land, &c.
    5. 43. Period of moratorium.
    6. 44. Proposals as to ownership and management of landlord's land.
    7. 45. Effect of agreed proposals.
    8. 46. Appointment of manager to implement agreed proposals.
    9. 47. Powers of the manager.
    10. 48. Powers of the manager: transfer of engagements.
    11. 49. Assistance by the Corporation.
    12. 50. Application to court to secure compliance with agreed proposals.
5. Chapter V
  
  Miscellaneous and general provisions
  1. Housing complaints
    1. 51. Schemes for investigation of complaints.
  2. Orders and determinations
    1. 52. General provisions as to orders.
    2. 53. General provisions as to determinations.
    3. 54. Determinations of the Corporation requiring approval.
  3. Minor and consequential amendments
    1. 55. Minor and consequential amendments: Part I.
  4. Interpretation
    1. 56. Meaning of "the Corporation".
    2. 57. Definitions relating to industrial and provident societies.
    3. 58. Definitions relating to charities.
    4. 59. Meaning of "officer" of registered social landlord.
    5. 60. Meaning of "subsidiary".
    6. 61. Meaning of "associate".
    7. 62. Members of a person's family: Part I.
    8. 63. Minor definitions: Part I.
    9. 64. Index of defined expressions: Part I.
Part II

Houses in multiple occupation
1. Registration schemes
  1. 65. Making and approval of registration schemes.
  2. 66. Registration schemes: control provisions.
  3. 67. Registration schemes: special control provisions.
  4. 68. Offences in connection with registration schemes.
  5. 69. Information requirements in connection with registration schemes.
  6. 70. Existing registration schemes.
2. Other amendments of Part XI of the Housing Act 1985
  1. 71. Restriction on notices requiring execution of works.
  2. 72. Recovery of expenses of notice requiring execution of works.
  3. 73. Duty to keep premises fit for number of occupants.
  4. 74. Section 354 direction to be local land charge.
  5. 75. Means of escape from fire.
  6. 76. Works notices: improvement of enforcement procedures.
  7. 77. Codes of practice.
  8. 78. Increase of fines, &c.
  9. 79. Minor amendments.
3. Common lodging houses
  1. 80. Repeal of Part XII of the Housing Act 1985.
Part III

Landlord and tenant
1. Chapter I
  
  Tenants' rights
  1. Forfeiture
    1. 81. Restriction on termination of tenancy for failure to pay service charge.
    2. 82. Notice under s.146 of the Law of Property Act 1925.
  2. Service charges
    1. 83. Determination of reasonableness of service charges.
    2. 84. Right to appoint surveyor to advise on matters relating to service charges.
  3. Appointment of manager
    1. 85. Appointment of manager by the court.
    2. 86. Appointment of manager: transfer of jurisdiction to leasehold valuation tribunal.
    3. 87. Text of Part II of the Landlord and Tenant Act 1987, as amended.
    4. 88. Period after which acquisition order may be made.
  4. Right of first refusal
    1. 89. Application of right of first refusal in relation to contracts.
    2. 90. Notice required to be given by landlord making disposal.
    3. 91. Offence of failure to comply with requirements of Part I.
    4. 92. Procedure for exercise of rights of first refusal.
    5. 93. Duty of new landlord to inform tenant of rights.
  5. General legal advice
    1. 94. Provision of general legal advice about residential tenancies.
  6. Supplementary
    1. 95. Jurisdiction of county courts.
2. Chapter II
  
  Assured tenancies
  1. Assured shorthold tenancies
    1. 96. Tenancies which are assured shorthold tenancies.
    2. 97. Duty of landlord to provide statement of terms of assured shorthold tenancy.
    3. 98. Form of notices under s. 21 of the Housing Act 1988.
    4. 99. Restriction on recovery of possession on expiry or termination.
    5. 100. Applications for determination of rent: time limit.
  2. Grounds for possession
    1. 101. Mandatory possession for non-payment of rent: reduction in arrears required.
    2. 102. Recovery of possession where grant induced by false statement.
  3. Assured agricultural occupancies
    1. 103. Assured agricultural occupancies: exclusion of tenancies of agricultural holdings and farm business tenancies.
  4. Consequential amendments
    1. 104. Consequential amendments: assured tenancies.
3. Chapter III
  
  Leasehold Reform
  1. Scope of rights
    1. 105. Low rent test: nil rateable values.
    2. 106. Low rent test: extension of rights.
    3. 107. Collective enfranchisement: multiple freeholders.
  2. Valuation
    1. 108. Collective enfranchisement: removal of need for professional valuation of interests to be acquired.
    2. 109. Collective enfranchisement: valuation principles.
    3. 110. New leases: valuation principles.
  3. Trusts
    1. 111. Satisfaction of residence condition: collective enfranchisement.
    2. 112. Satisfaction of residence condition: new leases.
    3. 113. Powers of trustees.
  4. Miscellaneous
    1. 114. Minor amendment of section 1(1.
    2. 115. Power for leasehold valuation tribunal to determine amount of costs payable under Leasehold Reform Act 1967.
    3. 116. Compensation for postponement of termination in connection with ineffective claims.
    4. 117. Priority of interests on grant of new lease.
    5. 118. Estate management schemes in connection with enfranchisement by virtue of s. 106.
    6. 119. Leasehold valuation tribunals: pre-trial review.
Part IV

Housing benefit and related matters
1. 120. Payment of housing benefit to third parties.
2. 121. Administration of housing benefit, &c.
3. 122. Functions of rent officers in connection with housing benefit and rent allowance subsidy.
4. 123. Consequential amendments: Part IV.
Part V

Conduct of tenants
1. Chapter I
  
  Introductory tenancies
  1. General provisions
    1. 124. Introductory tenancies.
    2. 125. Duration of introductory tenancy.
    3. 126. Licences.
  2. Proceedings for possession
    1. 127. Proceedings for possession.
    2. 128. Notice of proceedings for possession.
    3. 129. Review of decision to seek possession.
    4. 130. Effect of beginning proceedings for possession.
  3. Succession on death of tenant
    1. 131. Persons qualified to succeed tenant.
    2. 132. Cases where the tenant is a successor.
    3. 133. Succession to introductory tenancy.
  4. Assignment
    1. 134. Assignment in general prohibited.
  5. Repairs
    1. 135. Right to carry out repairs.
  6. Provision of information and consultation
    1. 136. Provision of information about tenancies.
    2. 137. Consultation on matters of housing management.
  7. Supplementary
    1. 138. Jurisdiction of county court.
    2. 139. Meaning of "dwelling-house".
    3. 140. Members of a person's family: Chapter I.
    4. 141. Consequential amendments: introductory tenancies.
    5. 142. Regulations and orders.
    6. 143. Index of defined expressions: introductory tenancies.
2. Chapter II
  
  Repossession, &c.: secure and assured tenancies
  1. Secure tenancies
    1. 144. Extension of ground of nuisance or annoyance to neighbours, &c.
    2. 145. New ground of domestic violence: secure tenancies.
    3. 146. Extension of ground that grant of tenancy induced by false statement.
    4. 147. Proceedings for possession or termination.
  2. Assured tenancies
    1. 148. Extension of ground of nuisance or annoyance to adjoining occupiers &c.
    2. 149. New ground of domestic violence: assured tenancies.
    3. 150. Additional notice requirements: domestic violence.
    4. 151. Early commencement of certain proceedings for possession.
3. Chapter III
  
  Injunctions against anti-social behaviour
  1. 152. Power to grant injunctions against anti-social behaviour.
  2. 153. Power of arrest for breach of other injunctions against anti-social behaviour.
  3. 154. Powers of arrest: ex-parte applications for injunctions.
  4. 155. Arrest and remand.
  5. 156. Remand for medical examination and report.
  6. 157. Powers of arrest: supplementary provisions.
  7. 158. Interpretation: Chapter III.
Part VI

Allocation of housing accommodation
1. Introductory
  1. 159. Allocation of housing accommodation.
  2. 160. Cases where provisions about allocation do not apply.
2. The housing register
  1. 161. Allocation only to qualifying persons.
  2. 162. The housing register.
  3. 163. Operation of housing register.
  4. 164. Notification of adverse decision and right to review.
  5. 165. Procedure on a review.
  6. 166. Information about housing register.
3. The allocation scheme
  1. 167. Allocation in accordance with allocation scheme.
  2. 168. Information about allocation scheme.
4. Supplementary
  1. 169. Guidance to authorities by the Secretary of State.
  2. 170. Co-operation between registered social landlords and local housing authorities.
  3. 171. False statements and withholding information.
  4. 172. Regulations.
  5. 173. Consequential amendments: Part VI.
  6. 174. Index of defined expressions: Part VI.
Part VII

Homelessness
1. Homelessness and threatened homelessness
  1. 175. Homelessness and threatened homelessness.
  2. 176. Meaning of accommodation available for occupation.
  3. 177. Whether it is reasonable to continue to occupy accommodation.
  4. 178. Meaning of associated person.
2. General functions in relation to homelessness or threatened homelessness
  1. 179. Duty of local housing authority to provide advisory services.
  2. 180. Assistance for voluntary organisations.
  3. 181. Terms and conditions of assistance.
  4. 182. Guidance by the Secretary of State.
3. Application for assistance in case of homelessness or threatened homelessness
  1. 183. Application for assistance.
  2. 184. Inquiry into cases of homelessness or threatened homelessness.
4. Eligibility for assistance
  1. 185. Persons from abroad not eligible for housing assistance.
  2. 186. Asylum-seekers and their dependants.
  3. 187. Provision of information by Secretary of State.
5. Interim duty to accommodate
  1. 188. Interim duty to accommodate in case of apparent priority need.
  2. 189. Priority need for accommodation.
6. Duties to persons found to be homeless or threatened with homelessness
  1. 190. Duties to persons becoming homeless intentionally.
  2. 191. Becoming homeless intentionally.
  3. 192. Duty to persons not in priority need who are not homeless intentionally.
  4. 193. Duty to persons with priority need who are not homeless intentionally.
  5. 194. Power exercisable after minimum period of duty under s. 193.
  6. 195. Duties in case of threatened homelessness.
  7. 196. Becoming threatened with homelessness intentionally.
7. Duty where other suitable accommodation available
  1. 197. Duty where other suitable accommodation available.
8. Referral to another local housing authority
  1. 198. Referral of case to another local housing authority.
  2. 199. Local connection.
  3. 200. Duties to applicant whose case is consi
  4. 208. Discharge of functions: out-of-area placements.
  5. 209. Discharge of functions: arrangements with private landlord.
  6. 210. Suitability of accommodation.
  7. 211. Protection of property of homeless persons and persons threatened with homelessness.
  8. 212. Protection of property: supplementary provisions.
  9. 213. Co-operation between relevant housing authorities and bodies.
9. General provisions
  1. 214. False statements, withholding information and failure to disclose change of circumstances.
  2. 215. Regulations and orders.
  3. 216. Transitional and consequential matters.
  4. 217. Minor definitions: Part VII.
  5. 218. Index of defined expressions: Part VII.
Part VIII

Miscellaneous and general provisions
1. Miscellaneous
  1. 219. Directions as to certain charges by social landlords.
  2. 220. Directions as to certain charges: supplementary provisions.
  3. 221. Exercise of compulsory purchase powers in relation to Crown land.
  4. 222. Miscellaneous minor amendments.
2. General
  1. 223. Offences by body corporate.
  2. 224. The Common Council of the City of London.
  3. 225. The Isles of Scilly.
  4. 226. Corresponding provision for Northern Ireland.
  5. 227. Repeals.
  6. 228. Financial provisions.
  7. 229. Meaning of "lease" and "tenancy" and related expressions.
  8. 230. Minor definitions: general.
3. Final provisions
  1. 231. Extent.
  2. 232. Commencement.
  3. 233. Short title.
Schedules:
1. Schedule 1
  
  Registered social landlords: regulation.
  1. Part I
    
    Control of payments to members, &c.
  2. Part II
    
    Constitution, change of rules, amalgamation and dissolution.
  3. Part III
    
    Accounts and audit.
  4. Part IV
    
    Inquiry into affairs of registered social landlords.
2. Schedule 2
  
  Social rented sector: housing complaints.
3. Schedule 3
  
  Social rented sector: minor amendments.
4. Schedule 4
  
  Rights exercisable by surveyor appointed by tenants' association.
5. Schedule 5
  
  Text of Part II of the Landlord and Tenant Act 1987, as amended.
6. Schedule 6
  
  Amendments of Part I of the Landlord and Tenant Act 1987.
  1. Part I
    
    Rights of first refusal.
  2. Part II
    
    Enforcement by tenants of rights against purchaser.
  3. Part III
    
    Enforcement of rights against subsequent purchasers and termination of rights.
  4. Part IV
    
    Consequential amendments.
7. Schedule 7
  
  Assured tenancies: schedule inserted after Schedule 2 to the Housing Act 1988.
8. Schedule 8
  
  Assured tenancies: consequential amendments.
9. Schedule 9
  
  Low rent test: extension of rights.
10. Schedule 10
  
  Section 107: consequential amendments.
11. Schedule 11
  
  Compensation for postponement of termination in connection with ineffective claims.
12. Schedule 12
  
  Administration of housing benefit, &c.
13. Schedule 13
  
  Housing benefit and related matters: consequential amendments.
14. Schedule 14
  
  Introductory tenancies: consequential amendments.
15. Schedule 15
  
  Arrest for anti-social behaviour: powers of High Court and county court to remand.
16. Schedule 16
  
  Allocation of housing accommodation: consequential amendments.
17. Schedule 17
  
  Homelessness: consequential amendments.
18. Schedule 18
  
  Miscellaneous provisions.
  1. Part I
    
    Housing management.
  2. Part II
    
    Housing finance.
  3. Part III
    
    Orders in relation to property in family and matrimonial proceedings, &c.
  4. Part IV
    
    Other housing provisions.
19. Schedule 19
  
  Repeals.
  1. Part I
    
    Social rented sector.
  2. Part II
    
    Houses in multiple occupation.
  3. Part III
    
    Tenants' rights.
  4. Part IV
    
    Assured tenancies.
  5. Part V
    
    Leasehold reform.
  6. Part VI
    
    Housing benefit and related matters.
  7. Part VII
    
    Allocation of housing accommodation.
  8. Part VIII
    
    Homelessness.
  9. Part IX
    
    Change of landlord: secure tenants.
  10. Part X
    
    Consultation with respect to housing management.
  11. Part XI
    
    Abolition of Exchequer contributions for agricultural housing.
  12. Part XII
    
    Abolition of certain consent requirements.
  13. Part XIII
    
    Removal of Treasury consent requirements.
  14. Part XIV
    
    Local authority assistance in connection with mortgages.

An Act to make provision about housing, including provision about the social rented sector, houses in multiple occupation, landlord and tenant matters, the administration of housing benefit, the conduct of tenants, the allocation of housing accommodation by local housing authorities and homelessness; and for connected purposes.

[24th July 1996]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:--

Part I Social rented sector

Chapter I Registered social landlords

Registration

1 The register of social landlords

(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.

2 Eligibility for registration

(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

(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

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;

(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--
(a)
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
(b)
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.

3 Registration

(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.

4 Removal from the register

(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.

5 Criteria for registration or removal from register

(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.

6 Appeal against decision on removal

(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.

Regulation of registered social landlords

7 Regulation of registered social landlords

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.

Chapter II Disposal of land and related matters

Power of registered social landlord to dispose of land

8 Power of registered social landlord to dispose of land

(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).

Control by Corporation of land transactions

9 Consent required for disposal of land by registered social landlord

(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).

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).

11 Covenant for repayment of discount on disposal

(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.

12 Priority of charge for repayment of discount

(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--

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