Housing and Planning Act 2016 (c. 22)

PART 4 Social housing in England

CHAPTER 2 Vacant higher value local authority housing

Payments to Secretary of State by local housing authorities

74 Reduction of payment by agreement

(1) The Secretary of State and a local housing authority may enter into an agreement to reduce the amount that the authority is required to pay because of a determination under this Chapter.

(2) The terms and conditions of an agreement must include—

(a) the amount of the reduction mentioned in subsection (1), and

(b) any terms and conditions required by subsection (3) or (4).

(3) Where the agreement is with a local housing authority outside Greater London, it must include terms and conditions requiring the authority to ensure that at least one new affordable home is provided for each old dwelling.

(4) Where the agreement is with a local housing authority in Greater London, it must include terms and conditions requiring the authority to ensure that at least two new affordable homes are provided for each old dwelling.

(5) But if the Greater London Authority has agreed to ensure that a number of the new affordable homes are provided, that number is to be deducted from the number for which the local housing authority must be made responsible by terms and conditions under subsection (4).

(6) The Secretary of State may by regulations create other exceptions to subsection (3) or (4) in relation to one or more local housing authorities.

(7) In this section—

• “new affordable home” means a new dwelling in England that—

  (a)

  is to be made available for people whose needs are not adequately served by the commercial housing market, or

  (b)

  is a starter home as defined by section 2;

• “new dwelling” means a building or part of a building that—

  (a)

  has been constructed for use as a single dwelling and has not previously been occupied, or

  (b)

  has been adapted for use as a single dwelling and has not been occupied since its adaptation;

• “old dwelling” means a single dwelling taken into account under section 69(2) for the purposes of the determination.

(8) If a determination under this Chapter relates to more than one financial year—

(a) an agreement under this section may be made in relation to the determination so far as it relates to a particular financial year, and

(b) in the definition of “old dwelling” in subsection (7) the reference to the determination is to the determination so far as it relates to the financial year to which the agreement relates.

(9) The Secretary of State may by regulations amend this section so as to change the meaning of “new affordable home”.