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Housing Act 2004

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This is the original version (as it was originally enacted).

187Deferred resale agreements
This sectionnoteType=Explanatory Notes has no associated

(1)After section 163 of the Housing Act 1985 insert—

163ATreatment of deferred resale agreements for purposes of section 155

(1)If a secure tenant or his successor in title enters into an agreement within subsection (3), any liability arising under the covenant required by section 155 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 secure tenant or his successor in title and any other person—

(a)which is made (expressly or impliedly) in contemplation of, or in connection with, the tenant exercising, or having exercised, the right to buy,

(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 disposal is to take place is specified in the agreement, and

(b)whether or not any requirement to make the 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 three or five years that applies for the purposes of section 155(2) or (3) (depending on whether the tenant’s notice under section 122 was given before or on or after the date of the coming into force of section 185 of the Housing Act 2004).

(2)The amendment made by this section does not apply in relation to any agreement or arrangement made before the day on which this section comes into force.

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