Housing Act 1985

31 Power of bodies corporate to sell or let land for housing purposes.

A body corporate holding land may sell, exchange or lease the land for the purpose of providing housing of any description at such price, or for such consideration, or for such rent, as having regard to all the circumstances of the case is the best that can reasonably be obtained, notwithstanding that a higher price, consideration or rent might have been obtained if the land were sold, exchanged or leased for the purpose of providing housing of another description or for a purpose other than the provision of housing.

32 Power to dispose of land held for purposes of this Part.

(1) Without prejudice to the provisions of Part V (the right to buy) . . ., a local authority have power by this section, and not otherwise, to dispose of land held by them for the purposes of this Part. (2) A disposal under this section may be effected in any manner but, subject to subsections (3) and (3A), shall not be made without the consent of the Secretary of State. (3) No consent is required for the letting of land under a secure tenancy or an introductory tenancyor under what would be a secure tenancy but for any of paragraphs 2 to 12 of Schedule 1 (tenancies, other than long leases and introductory tenancies, which are not secure). (3A) No consent is required for the letting of land (in Wales) under— (a) a secure contract, (b) a supported standard contract, (c) an introductory standard contract, or (d) a standard contract— (i) in relation to which the exception in section 11(2) of the Renting Homes (Wales) Act 2016 (anaw 1) applies (first exception to requirement that contract made by a community landlord is a secure contract), and (ii) which is within any of paragraphs 4 and 6 to 14 of Schedule 3 to that Act (occupation contracts made with or adopted by community landlords which may be standard contracts). (4) For the purposes of this section the grant of an option to purchase the freehold of, or any other interest in, land is a disposal and a consent given to such a disposal extends to a disposal made in pursuance of the option. (5) Sections 128 to 132 of the Lands Clauses Consolidation Act 1845 (which require surplus land first to be offered to the original owner and to adjoining land-owners) do not apply to the sale by a local authority of land held by them for the purposes of this Part. (6) The Secretary of State shall consult the Regulator of Social Housing before deciding whether to consent under this section to anything within the Regulator’s remit.

33 Covenants and conditions which may be imposed.

(1) On a disposal under section 32 the local authority may impose such covenants and conditions as they think fit. (2) But , subject to sections 36A and 37, a condition of any of the following kinds may be imposed only with the consent of the Secretary of State— (a) a condition limiting the price or premium which may be obtained on a further disposal of a house; (b) in the case of a sale, a condition reserving a right of pre-emption; (c) in the case of a lease, a condition precluding the lessee from assigning the lease or granting a sub-lease. (3) In subsection (2)(b) a condition reserving a right of pre-emption means a condition precluding the purchaser from selling or leasing the land unless— (a) he first notifies the authority of the proposed sale or lease and offers to sell or lease the land to them, and (b) the authority refuse the offer or fail to accept it within one month after it is made. (4) References in this section to the purchaser or lessee include references to his successors in title and any person deriving title under him or his successors in title. (5) The Secretary of State shall consult the Regulator of Social Housing before deciding whether to consent under this section to anything within the Regulator’s remit.

34 Consents under ss. 32 and 33.

(1) This section applies in relation to the giving of the appropriate national body's consent under section 32 or 33. (2) Consent may be given— (a) either generally to all local authorities or to a particular authority or description of authority; (b) either in relation to particular land or in relation to land of a particular description. (3) Consent may be given subject to conditions. (4) Consent may, in particular, be given subject to conditions as to the price, premium or rent to be obtained 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 local authority. (4A) The matters to which the appropriate national body may have regard in determining whether to give consent and, if so, to what conditions consent should be subject shall include— (a) the extent (if any) to which the person to whom the proposed disposals is to be made (in this subsection referred to as “the intending purchaser” is, or is likely to be, dependent upon, controlled by or subject to influence from the local autho-rity making the disposal or any members or officers of that authority; (b) the extent (if any) to which the proposed disposal would result in the intending purchaser becoming the predominant or a substantial owner in any area of housing accommodation let on tenancies or subject to licences; (c) the terms of the proposed disposal; (ca) in the case of a proposed large scale disposal, the appropriate national body's estimate of the exchequer costs of the large scale disposal; and (cb) any reduction in the amount that the local authority may be required to pay under section 69 of the Housing and Planning Act 2016 (payments to Secretary of State in respect of vacant higher value housing in England) as a result of the disposal; (d) any other matters whatsoever which the appropriate national body considers relevant. (4AA) The estimate mentioned in subsection (4A)(ca) is to be based on such assumptions (including as to the period during which housing subsidies may be payable) as the appropriate national body may determine, regardless of whether those assumptions are, or are likely to be, borne out by events. (4AB) In this section— “appropriate national body”— in relation to England, means the Secretary of State; and in relation to Wales, means the Welsh Ministers; “ dwelling-house ” has the same meaning as in Part 5 of this Act except that it does not include a hostel or any part of a hostel; “ the exchequer costs ”, in relation to a large scale disposal, means any increase which is or may be attributable to the disposal in the aggregate of any housing subsidies; “ housing subsidies ” means any subsidies payable under— section 140A of the Social Security Administration Act 1992 (subsidy); or section 79 of the Local Government and Housing Act 1989 (Housing Revenue Account subsidy); “ large scale disposal ” means a disposal of one or more dwelling-houses by a local authority to a person where— the number of dwelling-houses included in the disposal; and the number of dwelling-houses which, in the relevant period, have previously been disposed of by the authority to that person, or that person and any of the person's associates taken together, exceeds 499 or, if the appropriate national body by order so provides, such other number as may be specified in the order; “ long lease ” means a lease for a term of years certain exceeding 21 years other than a lease which is terminable before the end of that term by notice given by or to the landlord; “ the relevant period ”, in relation to a large scale disposal means— the period of 5 years ending with the date of the disposal; or if the appropriate national body by order so provides, such other period ending with that date as may be specified in the order; “ subsidiary ” has the same meaning as in section 61 of the Housing Act 1996 but as if references in subsection (2) of that section and section 60 of that Act to registered social landlords and landlords were references to housing associations (within the meaning of the Housing Associations Act 1985). (4AC) For the purposes of this section— (a) a disposal of any dwelling-house is to be disregarded if at the time of the disposal the local authority's interest in the dwelling-house is or was subject to a long lease; (b) two persons are associates of each other if— (i) one of them is a subsidiary of the other; (ii) they are both subsidiaries of some other person; or (iii) there exists between them such relationship or other connection as may be specified in a determination made by the appropriate national body; and (c) a description of an authority may be framed by reference to any circumstances whatever. (4AD) An order made by the appropriate national body under this section— (a) is to be made by statutory instrument which— (i) in the case of an order made by the Secretary of State, is subject to annulment in pursuance of a resolution of either House of Parliament; and (ii) in the case of an order made by the Welsh Ministers, is subject to annulment in pursuance of a resolution of the National Assembly for Wales; (b) may make different provision for different cases or descriptions of case, or for different authorities or descriptions of authority; and (c) may contain such transitional and supplementary provisions as appear to the appropriate national body to be necessary or expedient. (4AE) A determination under this section— (a) may make different provision for different cases or descriptions of case, or for different authorities or descriptions of authority; and (b) may be varied or revoked by a subsequent determination. (4B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

34A Requirements to co-operate in relation to certain disposals

(1) The appropriate person may make regulations for imposing requirements on a local housing authority in any case where a tenant group serves written notice on the authority proposing that the authority should dispose of particular land held by them for the purposes of this Part, or a particular description of such land, to a relevant housing provider. (2) The regulations may make provision requiring the authority— (a) to provide, or finance the provision of, such office accommodation and facilities, and such training, as the tenant group reasonably requires for the purpose of pursuing the proposal; (b) to arrange for such feasibility studies with respect to the proposal as may be determined by or under the regulations to be conducted by such persons as may be so determined; (c) to provide to the tenant group such information or descriptions of information, in connection with the proposal, as may be prescribed in the regulations; (d) to take, in circumstances prescribed in the regulations, such other steps as may be so prescribed to co-operate with the tenant group in connection with the proposal; (e) to arrange for such ballots or polls with respect to the proposal as may be determined by or under the regulations to be conducted by such persons as may be so determined; and (f) in such circumstances as may be prescribed by the regulations, to enter into an agreement for the disposal. (3) The regulations may make provision— (a) for determining the houses and other land to which the disposal should relate, and the amounts which should be paid in respect of the disposal; (b) requiring the agreement for the disposal to be in such form as may be approved by the appropriate person and to contain such provisions as may be prescribed by the regulations. (4) The regulations may make such procedural, incidental, supplementary and transitional provisions as may appear to the appropriate person necessary or expedient, and may in particular make provision— (a) for particular questions arising under the regulations to be determined by the authority or the appropriate person; (b) setting time-limits for the carrying out of requirements under the regulations; (c) requiring any person exercising functions under the regulations to act in accordance with any guidance or directions given by the appropriate person. (5) Nothing in subsections (2) to (4) is to be taken as prejudicing the generality of subsection (1). (6) Any regulations which provide for the appropriate person to approve a proposal for a local housing authority to dispose of land must ensure that the authority has the opportunity to make representations to the appropriate person before the appropriate person decides whether or not to approve the proposal. (7) This section does not affect any requirement under section 32 or 33 for the consent of the Secretary of State or the Welsh Ministers. (8) Regulations under this section— (a) may make different provision with respect to different cases or descriptions of case, including different provision for different areas; and (b) are to be made by statutory instrument which— (i) in the case of an instrument made by the Secretary of State, is subject to annulment in pursuance of a resolution of either House of Parliament; and (ii) in the case of an instrument made by the Welsh Ministers, is subject to annulment in pursuance of a resolution of the National Assembly for Wales. (9) In this section— “ appropriate person ” means— in relation to England, the Secretary of State; and in relation to Wales, the Welsh Ministers; “ relevant housing provider ” means— in relation to England, a private registered provider of social housing; and in relation to Wales, a registered social landlord; and “ tenant group ” means a body or other person which satisfies such conditions as may be determined by or under the regulations.

35 Repayment of discount on early disposal.

(1) This section applies where, on a disposal of a house under section 32, a discount is given to the purchaser by the local authority in accordance with a consent given by the Secretary of State under subsection (2) of that section; but this section does not apply in any such case if the consent so provides. (2) On the disposal the conveyance, grant or assignment shall contain a covenant binding on the purchaser and his successors in title to the following effect. (3) The covenant shall be to pay to the authority such sum (if any) as the authority may demand in accordance with subsection (4) on the occasion of the first relevant disposal (other than an exempted disposal) which takes place within the period of five years beginning with the conveyance, grant or assignment. (4) The authority may demand such sum as they consider appropriate, up to and including the maximum amount specified in this section. (5) The maximum amount which may be demanded by the authority is a percentage of the price or premium paid for the first relevant disposal which is equal to the percentage discount given to the purchaser in respect of the disposal of the house under section 32. (6) But for each complete year which has elapsed after the conveyance, grant or assignment and before the first relevant disposal the maximum amount which may be demanded by the landlord is reduced by one-fifth. (7) Subsections (4) to (6) are subject to section 35A.

35A Increase in value of house attributable to home improvements

(1) In calculating the maximum amount which may be demanded by the authority under section 35, such amount (if any) of the price or premium paid for the first relevant disposal which is attributable to improvements made to the house— (a) by the person by whom the disposal is, or is to be, made, and (b) after the conveyance, grant or assignment and before the disposal, shall be disregarded. (2) The amount to be disregarded under this section shall be such amount as may be agreed between the parties or determined by the district valuer. (3) The district valuer shall not be required by virtue of this section to make a determination for the purposes of this section unless— (a) it is reasonably practicable for him to do so; and (b) his reasonable costs in making the determination are paid by the person by whom the disposal is, or is to be, made. (4) If the district valuer does not make a determination for the purposes of this section (and in default of an agreement), no amount is required to be disregarded under this section.

36 Liability to repay is a charge on the premises.

(1) The liability that may arise under the covenant required by section 35 is a charge on the house, taking effect as if it had been created by deed expressed to be by way of legal mortgage. (2) Subject to subsections (2A) and (2B), the charge 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. (2A) The following, namely— (a) any advance which is made otherwise than for the purpose mentioned in subsection (2)(b) and is secured by a legal charge having priority to the charge taking effect by virtue of this section, and (b) any further advance which is so secured, shall rank in priority to that charge if, and only if, the local authority by written notice served on the institution concerned gives their consent; and the local authority shall so give their consent if the purpose of the advance or further advance is an approved purpose. (2B) The local authority may at any time by written notice served on an approved lending institution postpone the charge taking effect by virtue of this section to any 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 local authority shall serve such a notice if the purpose of the advance or further advance is an approved purpose. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3A) The covenant required by section 35 (covenant for repayment of discount) 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 this section, or a person deriving title under him; and 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 the covenant. (4) The approved lending institutions for the purposes of this section are— an authorised deposit taker an authorised insurer an authorised mortgage lender. (5) The approved purposes for the purposes of this section are— (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 this section, (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. (6) 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.

36A Right of first refusal for local authority

(1) This section applies where, on a disposal of a house under section 32, a discount is given to the purchaser by the local authority in accordance with a consent given by the Secretary of State under subsection (2) of that section; but this section does not apply in any such case if the consent so provides. (2) On the disposal the conveyance, grant or assignment shall contain the following covenant, which shall be binding on the purchaser and his successors in title. (3) The covenant shall be to the effect that, until the end of the period of ten years beginning with the conveyance, grant or assignment, there will be no relevant disposal which is not an exempted disposal, unless the prescribed conditions have been satisfied in relation to that or a previous such disposal. (4) In subsection (3) “the prescribed conditions” means such conditions as are prescribed by regulations under this section at the time when the conveyance, grant or assignment is made. (5) The Secretary of State may by regulations prescribe such conditions as he considers appropriate for and in connection with conferring on— (a) a local authority which have made a disposal as mentioned in subsection (1), or (b) such other person as is determined in accordance with the regulations, a right of first refusal to have a disposal within subsection (6) made to them or him for such consideration as is mentioned in section 36B. (6) The disposals within this subsection are— (a) a reconveyance or conveyance of the house; and (b) a surrender or assignment of the lease. (7) Regulations under this section may, in particular, make provision— (a) for the purchaser to offer to make such a disposal to such person or persons as may be prescribed; (b) for a prescribed recipient of such an offer to be able either to accept the offer or to nominate some other person as the person by whom the offer may be accepted; (c) for the person who may be so nominated to be either a person of a prescribed description or a person whom the prescribed recipient considers, having regard to any prescribed matters, to be a more appropriate person to accept the offer; (d) for a prescribed recipient making such a nomination to give a notification of the nomination to the person nominated, the purchaser and any other prescribed person; (e) for authorising a nominated person to accept the offer and for determining which acceptance is to be effective where the offer is accepted by more than one person; (f) for the period within which the offer may be accepted or within which any other prescribed step is to be, or may be, taken; (g) for the circumstances in which the right of first refusal lapses (whether following the service of a notice to complete or otherwise) with the result that the purchaser is able to make a disposal on the open market; (h) for the manner in which any offer, acceptance or notification is to be communicated. (8) In subsection (7) any reference to the purchaser is a reference to the purchaser or his successor in title. Nothing in that subsection affects the generality of subsection (5). (9) Regulations under this section— (a) may make different provision with respect to different cases or descriptions of case; and (b) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament. (10) The limitation imposed by a covenant within subsection (3) is a local land charge. (11) The Chief Land Registrar must enter in the register of title a restriction reflecting the limitation imposed by any such covenant.

36B Consideration payable for disposal under section 36A

(1) The consideration for a disposal made in respect of a right of first refusal as mentioned in section 36A(5) shall be such amount as may be agreed between the parties, or determined by the district valuer, as being the amount which is to be taken to be the value of the house at the time when the offer is made (as determined in accordance with regulations under that section). (2) That value shall be taken to be the price which, at that time, the interest to be reconveyed, conveyed, surrendered or assigned would realise if sold on the open market by a willing vendor, on the assumption that any liability under the covenant required by section 35 (repayment of discount on early disposal) would be discharged by the vendor. (3) If the offer is accepted in accordance with regulations under section 36A, no payment shall be required in pursuance of any such covenant as is mentioned in subsection (2), but the consideration shall be reduced, subject to subsection (4), by such amount (if any) as, on a disposal made at the time the offer was made, being a relevant disposal which is not an exempted disposal, would fall to be paid under that covenant. (4) Where there is a charge on the house having priority over the charge to secure payment of the sum due under the covenant mentioned in subsection (2), the consideration shall not be reduced under subsection (3) below the amount necessary to discharge the outstanding sum secured by the first-mentioned charge at the date of the offer (as determined in accordance with regulations under section 36A).

37 Restriction on disposal of dwelling-houses in National Parks, etc.

(1) Where a conveyance, grant or assignment executed under section 32 is of a house situated in— (a) a National Park. (b) an area designated under section 82 of the Countryside and Rights of Way Act 2000 as an area of outstanding natural beauty, or (c) an area designated as a rural area by order under section 157 (which makes provision in relation to disposals in pursuance of the right to buy corresponding to that made by this section), the conveyance, grant or assignment may (unless it contains a condition of a kind mentioned in section 33(2)(b) or (c) (right of pre-emption or restriction on assignment) or a covenant as mentioned in section 36A(3)(right of first refusal for local authority)) contain a covenant 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 in the manner specified below. (2) The limitation is that until such time (if any) as may be notified in writing by the local authority to the purchaser or a successor in title of his (a) , there will be no relevant disposal which is not an exempted disposal without the written consent of the authority; but that consent shall not be withheld if the disposal is to a person satisfying the condition stated in subsection (3)and (b) there will be no disposal by way of tenancy or licence without the written consent of the authority unless the disposal is to a person satisfying that condition or by a person whose only or principal home is and, throughout the duration of the tenancy or licence,remains the house. (3) The condition is that 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 or, in the case of a disposal by way of tenancy or licence, preceding the disposal— (a) had his place of work in a region designated by order under section 157(3) which, or part of which, is comprised in the National Park or area, or (b) had his only or principal home in such a region; or has had the one in part or parts of that period and the other in the remainder; but the region need not have been the same throughout the period. (4) A disposal in breach of such a covenant as is mentioned in subsection (1) is void and, so far as it relates to disposals by way of tenancy or licence, such a covenant may be enforced by the local authority as if— (a) the authority were possessed of land adjacent to the house concerned; and (b) the covenant were expressed to be made for the benefit of such adjacent land. (4A) Any reference in the preceding provisions of this section to a disposal by way of tenancy or licence does not include a reference to a relevant disposal or an exempted disposal. (5) The limitation imposed by such a covenant is a local land charge. (5A) Where the Chief Land Registrar approves an application for registration of— (a) a disposition of registered land, or (b) the disponee’s title under a disposition of unregistered land, and the instrument effecting the disposition contains a covenant of the kind mentioned in subsection (1), he must enter in the register a restriction reflecting the limitation imposed by the covenant (6) In this section “purchaser” means the person acquiring the interest disposed of by the first disposal.

38 Relevant disposals.

(1) A disposal, whether of the whole of part of the house, is a relevant disposal for the purposes of this Part if it is— (a) a conveyance of the freehold or an assignment of the lease, or (b) the grant of a lease of sub-lease (other than a mortgage term) for a term of more than 21 years otherwise than at a rack rent. (2) For the purposes of subsection (1)(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.

39 Exempted disposals.

(1) A disposal is an exempted disposal for the purposes of this Part 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 (2)); (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 (3); (d) it is a compulsory disposal; or (e) the property disposed of is property included with the house by virtue of the defintiion of “house” in section 56 (yard, garden, outhouses, &c.). (2) For the purposes of subsection (1)(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 , or the civil partner or a former civil partner, 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. (3) The orders referred to in subsection (1)(c) are orders under— (a) section 24 or 24A of the Matrimonial Causes Act 1973 (property adjustment orders or orders for the sale of property in connection with matrimonial proceedings), (b) section 2 of the Inheritance (Provision for Family and Dependants) Act 1975 (orders as to financial provision to be made from estate), (c) section 17 of the Matrimonial and Family Proceedings Act 1984 (property adjustment orders or orders for the sale of property after overseas divorce, &c.), . . . (d) paragraph 1 of Schedule 1 to the Children Act 1989 (orders for financial relief against parents) , or (e) Part 2 or 3 of Schedule 5, or paragraph 9 of Schedule 7, to the Civil Partnership Act 2004 (property adjustment orders, or orders for the sale of property, in connection with civil partnership proceedings or after overseas dissolution of civil partnership, etc.).

39A Treatment of deferred resale agreements for purposes of section 35

(1) If a purchaser or his successor in title enters into an agreement within subsection (3), any liability arising under the covenant required by section 35 shall be determined as if a relevant disposal which is not an exempted disposal had occurred at the appropriate time. (2) In subsection (1) “the appropriate time” means— (a) the time when the agreement is entered into, or (b) if it was made before the beginning of the discount repayment period, immediately after the beginning of that period. (3) An agreement is within this subsection if it is an agreement between the purchaser or his successor in title and any other person— (a) which is made (expressly or impliedly) in contemplation of, or in connection with, a disposal to be made, or made, under section 32, (b) which is made before the end of the discount repayment period, and (c) under which a relevant disposal (other than an exempted disposal) is or may be required to be made to any person after the end of that period. (4) Such an agreement is within subsection (3)— (a) whether or not the date on which the relevant disposal is to take place is specified in the agreement, and (b) whether or not any requirement to make that disposal is or may be made subject to the fulfilment of any condition. (5) The Secretary of State may by order provide— (a) for subsection (1) to apply to agreements of any description specified in the order in addition to those within subsection (3); (b) for subsection (1) not to apply to agreements of any description so specified to which it would otherwise apply. (6) An order under subsection (5)— (a) may make different provision with respect to different cases or descriptions of case; and (b) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament. (7) In this section— “agreement” includes arrangement; “the discount repayment period” means the period of 3 years that applies for the purposes of section 35(2) or the period of five years that applies for the purposes of section 35(3)(depending on whether an offer such as is mentioned in section 195(4) of the Housing Act 2004 was made before or on or after the coming into force of that section).

40 Meaning of “compulsory disposal”.

In this Part a “compulsory disposal” means 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.

41 Exempted disposals which end liability under covenants.

Where there is a relevant disposal which is an exempted disposal by virtue of section 39(1)(d) or (e) (compulsory disposal or disposal of yard, garden, &c.)— (a) the covenant required by section 35 (repayment of discount on early disposal) is not binding on the person to whom the disposal is made or any successor in title of his, and that covenant and the charge taking effect by virtue of section 36 (liability to repay a charge on the premises) cease to apply in relation to the property disposed of, and (aa) the covenant required by section 36A (right of first refusal for local authority) is not binding on the person to whom the disposal is made or any successor in title of his, and that covenant ceases to apply in relation to the property disposed of, and (b) any such covenant as is mentioned in section 37 (restriction on disposal of houses in National Parks, etc.) ceases to apply in relation to the property disposed of.

42 Treatment of options.

(1) For the purposes of this Part 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 37(2) (requirement of consent to disposal of house in National Park etc.) a consent to such a grant shall be treated as a consent to a disposal made in pursuance of the option.

43 Consent required for certain disposals not within s. 32.

(1) The consent of the Secretary of State is required for the disposal by a local authority, otherwise than in pursuance of Part V (the right to buy) . . ., of a house or dwelling belonging to the authority— (a) which is let on a secure tenancy or an introductory tenancy, or (b) of which a lease has been granted in pursuance of Part V, but which has not been acquired or appropriated by the authority for the purposes of this Part. (1A) The consent of the Welsh Ministers is required for the disposal by a local authority of a dwelling belonging to the authority which is subject to a tenancy which is a secure contract or is an introductory standard contract. (2) Consent may be given— (a) either generally to all local authorities or to any particular local authority or description of authority, and (b) either generally in relation to all houses or dwellings or in relation to any particular house or dwelling or description of house or dwelling. (3) Consent may be given subject to conditions. (4) Consent may, in particular, be given subject to conditions as to the price, premium or rent to be obtained on a disposal of the house or dwelling, including conditions as to the amount by which, on a disposal of the house or dwelling 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 local authority. (4A) The matters to which the appropriate national body may have regard in determining whether to give consent and, if so, to what conditions consent should be subject shall include— (a) the extent (if any) to which the person to whom the proposed disposal is to be made (in this subsection referred to as “the intending purchaser”) is, or is likely to be, dependent upon, controlled by or subject to influence from the local autho-rity making the disposal or any members or officers of that authority; (b) the extent (if any) to which the proposed disposal would result in the intending purchaser becoming the predominant or a substantial owner in any area of housing accommodation let on tenancies or subject to licences; (c) the terms of the proposed disposal; (ca) in the case of a proposed disposal which is part of a proposed large scale disposal, the appropriate national body's estimate of the exchequer costs of the large scale disposal; and (cb) any reduction in the amount that the local authority may be required to pay under section 69 of the Housing and Planning Act 2016 (payments to Secretary of State in respect of vacant higher value housing in England) as a result of the disposal; (d) any other matters whatsoever which the appropriate national body considers relevant. (4AA) The estimate mentioned in subsection (4A)(ca) is to be based on such assumptions (including as to the period during which housing subsidies may be payable) as the appropriate national body may determine, regardless of whether those assumptions are, or are likely to be, borne out by events. (4AB) Subsections (4AB) to (4AE) of section 34 apply for the purposes of this section as they apply for the purposes of that section. (4B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) For the purposes of this section the grant of an option to purchase the freehold of, or any other interest in, a house or dwelling to which this section applies is a disposal and a consent given under this section to such a disposal extends to a disposal made in pursuance of the option. (5A) References in this section (other than in subsection (4A)(ca) and in subsections (4AB) to (4AE) of section 34 as applied for the purposes of this section) and in section 44 to a local authority shall include references to a National Park authority. (6) The Secretary of State shall consult the Regulator of Social Housing before deciding whether to consent under this section to anything within the Regulator’s remit.

44 Avoidance of certain disposals of houses without consent.

(1) A disposal of a house by a local authority made without the consent required by section 32 or 43 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) Subsection (1) has effect notwithstanding section 29 of the Town and Country Planning Act 1959 and section 128(2) of the Local Government Act 1972 (protection of purchasers dealing with authority). (3) In this section “house” does not have the extended meaning applicable by virtue of the definition of “housing accommodation” in section 56, but includes a flat.

45 Disposals in relation to which ss. 46 to 51 apply, etc. payable after disposal of house

(1) The following provisions of this Part down to section 51 (restrictions on, and provision of information about, services charges) apply where— (a) the freehold of a house has been conveyed by a public sector authority; and (b) the conveyance enabled the vendor to recover from the purchaser a service charge. (2) In subsection (1)(a)— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . “ public sector authority ” means— a local authority, a National Park authority a development corporation, an urban development corporation, a Mayoral development corporation, the Homes and Communities Agency, the Greater London Authority so far as exercising its housing or regeneration functions or its new towns and urban development functions, the Welsh Ministers so far as exercising functions in relation to anything transferred (or to be transferred) to them as mentioned in section 36(1)(a) (i) to (iii) of the New Towns Act 1981, a housing action trust . . . Regulator of Social Housing or Scottish Homes a non-profit registered provider of social housing, a registered social landlord. (2A) In subsection (1)(a) “ public sector authority ” also includes the Welsh Ministers if the freehold has been conveyed by them (or by the Assembly constituted by the Government for Wales Act 1998, the Secretary of State or Housing for Wales) under section 90 of the Housing Associations Act 1985. (2B) In subsection (1)(a) “public sector authority” also includes a profit-making registered provider of social housing in respect of any house which, before the conveyance, was social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008. (3) The following provisions— section 170 (power of Secretary of State to given assistance in connection with legal proceedings), and section 181 (jurisdiction of county court), apply to proceedings and questions arising under this section and sections 46 to 51 as they apply to proceedings and questions arising under Part V (the right to buy).

46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

47 Limitation of service charges.

(1) Relevant costs shall be taken into account in determining the amount of a service charge payable for a period— (a) only to the extent that they are reasonably incurred, and (b) where they are incurred on the provision of services or the carrying out of works, only if the services or works are of a reasonable standard; and the amount payable shall be limited accordingly. (2) Where the service charge is payable before the relevant costs are incurred, no greater amount than is reasonable is so payable and after the relevant costs have been incurred any necessary adjustment shall be made by repayment, reduction of subsequent charges or otherwise. (3) An agreement by the payer (other than an arbitration agreement within the meaning of Part I of the Arbitration Act 1996) is void in so far as it purports to provide for a determination in a particular manner or on particular evidence of any question— (a) whether an amount payable before costs for services, repairs, maintenance, insurance or management are incurred is reasonable, (b) whether such costs were reasonably incurred, or (c) whether services or works for which costs were incurred are of a reasonable standard. (4) Where relevant costs are incurred or to be incurred on the carrying out of works in respect of which a grant has been or is to be paid under section 523 of the Housing Act 1985 (assistance for provision of separate service pipe for water supply) or any provision of Part I of the Housing Grants, Construction and Regeneration Act 1996 (grants, &c. for renewal of private sector housing) or any corresponding earlier enactment, the amount of the grant shall be deducted from the costs and the amount of the service charge payable shall be reduced accordingly.

48 Information as to relevant costs.

(1) The payer may require the payee in writing to supply him with a written summary of the costs incurred— (a) if the relevant accounts are made up for periods of twelve months, in the last such period ending not later than the date of the request, or (b) if the accounts are not so made up, in the period of twelve months ending with the date of the request, and which are relevant to the service charges payable or demanded as payable in that or any other period. (2) The payee shall comply with the request within one month of the request or within six months of the end of the period referred to in subsection (1)(a) or (b), whichever is the later. (3) The summary shall set out those costs in a way showing how they are or will be reflected in demands for service charges and must be certified by a qualified accountant as in his opinion a fair summary complying with this requirement and as being sufficiently supported by accounts, receipts and other documents which have been produced to him. (3A) The summary shall also state whether any of the costs relate to works in respect of which a grant has been or is to be paid under section 523 of the Housing Act 1985 (assistance for provision of separate service pipe for water supply) or any provision of Chapter I of Part I of the Housing Grants, Construction and Regeneration Act 1996 (grants for renewal of private sector housing) or any corresponding earlier enactment. (4) Where the payer has obtained such a summary as is referred to in subsection (1) (whether in pursuance of this section or otherwise, he may within six months of obtaining it require the payee in writing to afford him reasonable facilities— (a) for inspecting the accounts, receipts and other documents supporting the summary, and (b) for taking copies of extracts from them, and the payee shall then make such facilities available to the payer for a period of two months beginning not later than one month after the request is made. (5) A request under this section shall be deemed to be served on the payee if it is served on a person who receives the service charge on behalf of the payee; and a person on whom a request is so served shall forward it as soon as possible to the payee. (6) A disposal of the house by the payer does not affect the validity of a request made under this section before the disposal; but a person is not obliged to provide a summary or make the facilities available more than once for the same house and for the same period.

49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

50 Offences.

(1) If a person fails without reasonable excuse to perform a duty imposed on him by section 48 . . . (provision of information, &c.), he commits a summary offence and is liable on conviction to a fine not exceeding level 4 on the standard scale. (2) Subsection (1) does not apply where the payee is— a local authority . . . , a development corporation, . . . or the Welsh Ministers . . ..

51 Meaning of “qualified accountant”.

(1) The reference to a “qualified accountant” in section 48(3) (certification of summary of information about relevant costs) is to a person who, in accordance with the following provisions, has the necessary qualification and is not disqualified from acting. (2) a person has the necessary qualification only if he is eligible for appointment as a statutory auditor under Part 42 of the Companies Act 2006. (4) The following are disqualified from acting— (a) where the payee is a company, the payee or any associated company of the payee; (b) an officer or employee of the payee or, where the payee is a company, of an associated company; (c) a person who is a partner or employee of any such officer or employee. (5) For the purposes of subsection (4)(a) and (b). a company is associated with the payee company if it is (within the meaning of section 1159 of the Companies Act 2006) the payee’s holding company or subsidiary or is a subsidiary of the payee’s holding company. (6) Where the payee is a local authority or a development corporation— (a) the persons who have the necessary qualification include members of the Chartered Institute of Public Finance and Accountancy, and (b) subsection (4)(b) (disqualification of officers and employees) does not apply.

52 Compliance with minimum standards in erection of houses.

A local housing authority by whom a house is erected under the enactments relating to housing, whether with or without financial assistance from the government, shall secure— (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) that, in except in so far as the Secretary of State may, in a particular case, dispense with the observance of this paragraph, the house is provided with a fixed bath in a bathroom.

53 Prefabs deemed to be houses provided under this Part.

(1) This section applies to prefabs, that is to say structures made available to a local authority under section 1 of the Housing (Temporary Accommodation) Act 1944 (“the 1944 Act”). (2) For the purposes of this Act prefabs shall be deemed to be houses provided by the local housing authority under this Part. (3) A prefab and the land on which it is situated may, if immediately before the repeal of the 1944 Act (on 25th August 1972) it was deemed to be land acquired for the purposes of Part V of the Housing Act 1957, be appropriated or disposed of by the local housing authority in the same way as any other land acquired or deemed to be acquired for the purposes of this Part. (4) The provisions of this section do not affect any obligation of a local housing authority to another person as respects the removal or demolition of a prefab. (5) References in this section to a prefab include fittings forming part of it.

54 Powers of entry.

(1) A person authorised by a local housing authority or the Secretary of State may, at any reasonable time, on giving 24 hours’ notice of his intention to the occupier, and to the owner if the owner is known, enter premises for the purpose of survey and examination— (a) where it appears to the authority or Secretary of State that survey or examination is necesary in order to determine whether any powers under this Part should be exercised in respect of the premises, or (b) in the case of premises which the authority are authorised by this Part to purchase compulsorily. (2) An authorisation for the purposes of this section shall be in writing stating the particular purpose or purposes for which the entry is authorised and shall, if so required, be produced for inspection by the occupier or anyone acting on his behalf. (3) A person may not be authorised by a local housing authority under subsection (1)(a) to enter and survey or value land in connection with a proposal to acquire an interest in or a right over land (but see section 172 of the Housing and Planning Act 2016).

55 Penalty for obstruction.

(1) It is a summary offence intentionally to obstruct an officer of the local housing authority, or of the Secretary of State, or any person authorised to enter premises in pursuance of this Part, in the performance of anything which he is by this Part required or authorised to do. (2) A person who commits such an offence is liable on conviction to a fine not exceeding level 3 on the standard scale.

56 Minor definitions.

(1) In this Part— “CCA” means a combined county authority established under Chapter 1 of Part 2 of the Levelling-up and Regeneration Act 2023; “combined authority” means a combined authority established under Part 6 of the Local Democracy, Economic Development and Construction Act 2009; “constituent council” means— in relation to a combined authority— a county council the whole or any part of whose area is within the area of the authority, or a district council whose area is within the area of the authority; in relation to a CCA— a county council for an area within the area of the authority, or a unitary district council for an area within the area of the authority; and here “unitary district council” means the council for a district for which there is no county council; “house” includes any yard, garden, outhouses and appurtenances belonging to the house or usually enjoyed with it; “housing accommodation” includes flats, lodging-houses and hostels, and “house” shall be similarly construed; “introductory tenancy” has the same meaning as in Chapter I of Part V of the Housing Act 1996; “lodging-houses” means houses not occupied as separate dwellings; “mayoral CCA” has the same meaning as in the Levelling-up and Regeneration Act 2023 (see section 57 of that Act); “mayoral combined authority” has the same meaning as in the Local Democracy, Economic Development and Construction Act 2009 (see section 120 of that Act); “member of family” in relation to a person, has the same meaning as in Part V (the right to buy); “non-mayoral CCA” has the same meaning as in the Levelling-up and Regeneration Act 2023 (see section 57 of that Act); “non-mayoral combined authority” has the same meaning as in the Local Democracy, Economic Development and Construction Act 2009 (see section 120 of that Act); “owner”, in relation to premises— means a person (other than a mortgagee not in possession) who is for the time being entitled to dispose of the fee simple in the premises, whether in possession or in reversion, and includes also a person holding or entitled to the rents and profits of the premises under a lease of which the unexpired term exceeds three years. “social housing” has the same meaning as in Part 2 of the Housing and Regeneration Act 2008. “two-tier county council that is a strategic authority” means a county council whose area includes the areas of district councils that is designated as a single foundation strategic authority under section 3 of the English Devolution and Community Empowerment Act 2026. (1A) In this Part, the following terms have the same meaning as in the Renting Homes (Wales) Act 2016 (anaw 1)— (a) “contract-holder” (see section 7 (see also section 48) of that Act); (b) “dwelling” (see section 246 of that Act); (c) “introductory standard contract” (see section 16 of that Act); (d) “occupation contract” (see section 7 of that Act); (e) “secure contract” (see section 8 of that Act); (f) “standard contract” (see section 8 of that Act); (g) “supported standard contract” (see section 143 of that Act). (2) For the purposes of this Part, something is within the remit of the Regulator of Social Housing if it is related to or affects the provision of social housing by a local housing authority, or county council, in England.

57 Index of defined expressions: Part II.

The following Table shows provisions defining or otherwise explaining expressions used in this Part (other than provisions defining or explaining an expression used in the same section or paragraph):— bank | section 622 building society | section 622 CCA | section 56 combined authority | section 56 compulsory disposal | section 40 . . . | . . . constituent council | section 56 contract-holder | section 56 development corporation | section 4(c) district (of a local housing authority) | section 2(1) dwelling | section 56 exempted disposal | section 39 family (member of) | sections 56 and 186 friendly society | section 622 hostel | section 622 house | section 56 housing accommodation | section 56 housing association | section 5(1) Housing Revenue Account | section 417 insurance company | section 622 introductory standard contract | section 56 introductory tenancy | section 56 lease | section 621 local authority | section 4(e) local housing authority | sections 1, 2(2) local housing authority’s houses | section 20 lodging-houses | section 56 mayoral CCA | section 56 mayoral combined authority | section 56 new towns residuary body | section 4(1)(g) non-mayoral CCA | section 56 non-mayoral combined authority | section 56 occupation contract | section 56 owner | section 56 payee and payer (in relation to a service charge) | section 621A qualified accountant (for the purposes of section 48(3)) | section 51 registered social landlord | section 5(4) and (5). relevant costs (in relation to a service charge) | section 621A (2), (3) relevant disposal | section 38 (and see section 452(3)) secure contract | section 56 secure tenancy | section 79 service charge | section 621A (1) shared ownership lease | section 622 standard contract | section 56 standard scale (in reference to the maximum fine on summary conviction) | section 622 street | section 622 supported standard contract | section 56 tenancy and tenant | section 621 trustee savings bank | section 622 “two-tier county council that is a strategic authority” | section 56 urban development corporation | section 4(d)

58 Homelessness and threatened homelessness.

(1) A person is homeless if he has no accommodation in England, Wales or Scotland. (2) A person shall be treated as having no accommodation if there is no accommodation which he, together with any other person who normally resides with him as a member of his family or in circumstances in which it is reasonable for that person to reside with him— (a) is entitled to occupy by virtue of an interest in it or by virtue of an order of a court, or (b) has an express or implied licence to occupy, or Scotland has a right or permission or an implied right or permission to occupy, or (c) occupies as a residence by virtue of any enactment or rule of law giving him the right to remain in occupation or restricting the right of another person to recover possession. (2A) A person shall not be treated as having accommodation unless it is accommodation which it would be reasonable for him to continue to occupy. (2B) Regard may be had, in determining whether it would be reasonable for a person to continue to occupy accommodation, to the general circumstances prevailing in relation to housing in the district of the local housing authority to whom he has applied for accommodation or for assistance in obtaining accommodation. (3) A person is also homeless if he has accommodation but— (a) he cannot secure entry to it, or (b) it is probable that occupation of it will lead to violence from some other person residing in it or to threats of violence from some other person residing in it and likely to carry out the threats, or (c) it consists of a movable structure, vehicle or vessel designed or adapted for human habitation and there is no place where he is entitled or permitted both to place it and to reside in it. (4) A person is threatened with homelessness if it is likely that he will become homeless within 28 days.

59 Priority need for accommodation.

(1) The following have a priority need for accommodation— (a) a pregnant woman or a person with whom a pregnant woman resides or might reasonably be expected to reside; (b) a person with whom dependent children reside or might reasonably be expected to reside; (c) a person who is vulnerable as a result of old age, mental illness or handicap or physical disability or other special reason, or with whom such a person resides or might reasonably be expected to reside; (d) a person who is homeless or threatened with homelessness as a result of an emergency such as flood, fire or other disaster. (2) The Secretary of State may by order made by statutory instrument— (a) specify further descriptions of persons as having a priority need for accommodation, and (b) amend or repeal any part of subsection (1). (3) Before making such an order the Secretary of State shall consult such association representing relevant authorities, and such other persons, as he considers appropriate. (4) No order shall be made unless a draft of it has been approved by resolution of each House of Parliament.

60 Becoming homeless intentionally.

(1) A person becomes homeless intentionally if he deliberately does or fails to do anything in consequence of which he ceases to occupy accommodation which is available for his occupation and which it would have been reasonable for him to continue to occupy. (2) A person becomes threatened with homelessness intentionally if he deliberately does or fails to do anything the likely result of which is that he will be forced to leave accommodation which is available for his occupation and which it would have been reasonable for him to continue to occupy. (3) For the purposes of subsection (1) or (2) an act or omission in good faith on the part of a person who was unaware of any relevant fact shall not be treated as deliberate. (4) Regard may be had, in determining whether it would have been reasonable for a person to continue to occupy accommodation, to the general circumstances prevailing in relation to housing in the district of the local housing authority to whom he applied for accommodation or for assistance in obtaining accommodation.

61 Local connection.

(1) References in this Part to a person having a local connection with the district of a local housing authority are to his having a connection with that district— (a) because he is, or in the past was, normally resident in that district, and that residence is or was of his own choice, or (b) because he is employed in that district, or (c) because of family associations, or (d) because of special circumstances. (2) For the purposes of this section— (a) a person is not employed in a district if he is serving in the regular armed forces of the Crown; (b) residence in a district is not of a person’s own choice if he becomes resident in it because he, or a person who might reasonably be expected to reside with him, is serving in the regular armed forces of the Crown. (3) Residence in a district is not of a persons’ own choice for the purpose of this section if he, or a person who might reasonably be expected to reside with him, became resident in it because he was detained under the authority of an Act of Parliament. (4) The Secretary of State may by order specify other circumstances in which— (a) a person is not to be treated for the purposes of this section as employed in a district, or (b) residence in a district is not to be treated for those purposes as of a person’s own choice. (5) An order shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

62 Inquiry into cases of possible homelessness or threatened homelessness.

(1) If a person (an “applicant”) applies to a local housing authority for accommodation, or for assistance in obtaining accommodation, and the authority have reason to believe that he may be homeless or threatened with homelessness, they shall make such inquiries as are necessary to satisfy themselves as to whether he is homeless or threatened with homelessness. (2) If they are so satisfied, they shall make any further inquiries necessary to satisfy themselves as to— (a) whether he has a priority need, and (b) whether he became homeless or threatened with homelessness intentionally; and if they think fit they may also make inquiries as to whether he has a local connection with the district of another local housing authority in England, Wales or Scotland.

63 Interim duty to accommodate in case of apparent priority need.

(1) If the local housing authority have reason to believe that an applicant may be homeless and have a priority need, they shall secure that accommodation is made available for his occupation pending a decision as a result of their inquiries under section 62. (2) This duty arises irrespective of any local connection which the applicant may have with the district of another local housing authority.

64 Notification of decision and reasons.

(1) On completing their inquiries under section 62, the local housing authority shall notify the applicant of their decision on the question whether he is homeless or threatened with homelessness. (2) If they notify him that their decision is that he is homeless or threatened with homelessness, they shall at the same time notify him of their decision on the question whether he has a priority need. (3) If they notify him that their decision is that he has a priority need, they shall at the same time notify him— (a) of their decision whether he became homeless or threatened with homelessness intentionally, and (b) whether they have notified or propose to notify another local housing authority under section 67 (referral of application on grounds of local connection). (4) If the local housing authority notify the applicant— (a) that they are not satisfied that he is homeless or threatened with homelessness, or (b) that they are not satisfied that he has a priority need, or (c) that they are satisfied that he became homeless or threatened with homelessness intentionally, or (d) that they have notified or propose to notify another local housing authority under section 67 (referral of application on grounds of local connection), they shall at the same time notify him of their reasons. (5) The notice required to be given to a person under this section shall be given in writing and shall, if not received by him, be treated as having been given to him only if it is made available at the authority’s office for a reasonable period for collection by him or on his behalf.

65 Duties to persons found to be homeless.

(1) This section has effect as regards the duties owed by the local housing authority to an applicant where they are satisfied that he is homeless. (2) Where they are satisfied that he has a priority need and are not satisfied that he became homeless intentionally, they shall, unless they notify another local housing authority in accordance with section 67 (referral of application on grounds of local connection), secure that accommodation becomes available for his occupation. (3) Where they are satisfied that he has priority need but are also satisfied that he became homeless intentionally, they shall— (a) secure that accommodation is made available for his occupation for such period as they consider will give him a reasonable opportunity of securing accommodation for his occupation, and (b) furnish him with advice and such assistance as they consider appropriate in the circumstances in any attempts he may make to secure that accommodation becomes available for his occupation. (4) Where they are not satisfied that he has a priority need, they shall furnish him with advice and such assistance as they consider appropriate in the circumstances in any attempts he may make to secure that accommodation becomes available for his occupation.