PART II

PROVISION OF HOUSING ACCOMMODATION

Disposal of land held for housing purposes

Restriction on disposal of dwelling-houses in National Parks, etc.
37
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.
Words in s. 37(1)(b) substituted (1.4.2001 for E. and 1.5.2001 for W.) by 2000 c. 37, s. 93, Sch. 15 Pt. I para. 8 (with s. 84(4)-(6)), S.I. 2001/114, art. 2(2)(e); S.I. 2001/1410, art. 2(g)
Words in s. 37(1) inserted (18.1.2005) by Housing Act 2004 (c. 34), ss. 197(3)(5), 270(3)(a)
“(a)” inserted by Housing Act 1988 (c. 50, SIF 61), s. 125(2)(6)
Word “and” and s. 37(2)(b) added by Housing Act 1988 (c. 50, SIF 61), s. 125(2)(6)
Words inserted by Housing Act 1988 (c. 50, SIF 61), s. 125(3)(6)
Words and s. 37(4)(a)(b) added by Housing Act 1988 (c. 50, SIF 61), s. 125(4)(6)
S. 37(4A) inserted by Housing Act 1988 (c. 50, SIF 61), s. 125(5)(6)
S. 37(5A) substituted (13.10.2003) for words in s. 37(5) by 2002 c. 9, ss. 133, 136(2), Sch. 11 para. 18(2) (with s. 129); S.I. 2003/1725, art. 2(1)
Pt. II (ss. 8–57): power to apply certain functions conferred by Housing Act 1988 (c. 50, SIF 61), s. 65(2)(a)(4)
Pt. II (ss. 8-57) restricted (19.8.1996) by 1996 c. 49, s. 9(4)(a); S.I. 1996/2127, art. 2, Sch. Pt. I