(1)Schedule 1 to the Housing Act 1988 (tenancies which cannot be assured tenancies) is amended as follows.
(2)In paragraph 12(1)(h), after “association” insert “, unless the tenancy is one which is excluded from this sub-paragraph by sub-paragraph (3) below”.
(3)After paragraph 12(2) insert—
“(3)A tenancy is excluded from sub-paragraph (1) if all of the following requirements are met—
(a)the interest of the landlord belongs to a fully mutual housing association;
(b)the dwelling-house is in Wales;
(c)the tenancy is granted on or after the date on which this sub-paragraph comes into force;
(d)the tenancy is in writing;
(e)before the tenancy is granted, the landlord has served on the person who is to be the tenant a notice stating that the tenancy is to be excluded from sub-paragraph (1);
(f)the tenancy states that it is excluded from sub-paragraph (1).”
In Part 1 of Schedule 2 to the Housing Act 1988 (grounds on which a court must order possession of dwelling-houses let on assured tenancies), after Ground 2 insert—
The dwelling-house is subject to a mortgage granted, at any time, by a fully mutual housing association and—
the dwelling-house is in Wales;
the tenancy was granted by a fully mutual housing association;
the mortgagee is entitled to exercise a power of sale conferred on the mortgagee by the mortgage or by section 101 of the Law of Property Act 1925;
the mortgagee requires possession of the dwelling-house for the purpose of disposing of it with vacant possession in exercise of that power;
not later than the beginning of the tenancy the landlord gave notice in writing to the tenant that possession might be recovered on this ground;
and for the purposes of this ground “mortgage” includes a charge and “mortgagee” is to be construed accordingly.”