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Part 2E+WRegulation of Social Housing

Modifications etc. (not altering text)

Chapter 1E+WIntroduction

PreliminaryE+W

59PurposeE+W

The purpose of this Part is to regulate the provision of social housing (as defined in sections 68 to 77) by English bodies (as defined in section 79).

Commencement Information

I1S. 59 in force at 8.9.2008 by S.I. 2008/2358, art. 3(1)

60Structural overviewE+W

(1)This Part replaces the system of “registered social landlords” under Part 1 of the Housing Act 1996 (c. 52).

(2)That Part will continue to apply in relation to Wales (see section 61).

(3)Certain provisions of that Part—

(a)are applied in relation to England by this Part (see section 179), or

(b)are preserved although they apply to England only (see section 124).

(4)The Table describes the content of this Part.

ChapterSectionsTopicContents
159 to 80Introduction

(a)Preliminary

(b)Social housing

(c)Other key concepts

[F12 [F292L] to 109The Social Housing Regulator

(a)The regulator F3...

(b)Fundamental objectives

(c)Powers

(d)Money

(e)Information]

3110 to 121Registration

(a)Introduction

(b)Eligibility

(c)Procedure

4122 to 169Registered providers

(a)General provisions

(b)Accounts

(c) Insolvency etc.

(d)Restructuring and dissolution

5170 to 191Disposal of property [F4by private registered providers]

(a)Introductory

[F5(b) Notification of regulator]

F6(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e)Miscellaneous

(f)Right to acquire

F6(g). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6192 to 217Regulatory powers

(a)Standards

(b)Monitoring

(c)Management and constitution

(d)Guidance

(e)Managers of social housing

7218 to [F7269B]Enforcement powers

(a)General

(b)Enforcement notice

(c)Penalty

(d)Compensation

(e)Management

(f)Restrictions on dealings

(g)Suspension and removal of officers

[F8(h)Censure of local authority employees]

8270 to 278General

(a)Interpretation

(b)Miscellaneous

61Restriction of “registered social landlord” system to WalesE+W

(1)Part 1 of the Housing Act 1996 (c. 52) (social rented sector) is amended as follows (and the title of Part 1 becomes “Social Rented Sector in Wales”).

(2)Before section 1 (register of social landlords) insert—

A1Introduction

This Chapter provides for the registration of social landlords in Wales.

(3)In section 1—

(a)for “The Relevant Authority” substitute “ The Welsh Ministers ”, and

(b)omit subsections (1A) and (1B).

(4)After section 1 insert—

1AWelsh bodies

In this Chapter “Welsh body” means a body which is—

(a)a registered charity whose address, for the purposes of registration by the Charity Commission for England and Wales, is in Wales,

(b)[F9a registered society] whose registered office for the purposes of the Industrial and Provident Societies Act 1965 is in Wales, or

(c)a company within the meaning of the Companies Act 2006 which has its registered office for the purposes of that Act in Wales.

(5)In section 2 (eligibility for registration)—

(a)in subsection (1), for “A body” substitute “ A Welsh body ”,

(b)in subsection (2) after “that the body is” insert “ principally concerned with Welsh housing, is ”,

(c)after subsection (2) insert—

(2A)A body is principally concerned with Welsh housing if the Welsh Ministers think—

(a)that it owns housing only or mainly in Wales, or

(b)that its activities are principally undertaken in respect of Wales;

and once a body has been registered in reliance on paragraph (a) or (b) it does not cease to be eligible for registration by virtue only of ceasing to satisfy that paragraph.,

(d)in subsection (7) for “Secretary of State” (in each place) substitute “ Welsh Ministers ”, and

(e)in subsection (8) for “either House of Parliament” substitute “ the National Assembly for Wales ”.

(6)In section 3 (registration)—

(a)in subsection (1) for “any body” substitute “ any Welsh body ”, and

(b)in subsection (4) for “A body” substitute “ A Welsh body ”.

(7)The table sets out substitutions which have effect throughout the Part (except section 51 and Schedule 2); and where necessary in consequence of those substitutions, for words in the singular substitute appropriate corresponding words in the plural.

ExpressionSubstitution
“the Relevant Authority”“the Welsh Ministers”
“the Authority”“the Welsh Ministers”
“the Relevant Authority's”“the Welsh Ministers”

(8)Omit section 56 (meaning of “the Relevant Authority”).

(9)Sections 62 and 63 make other consequential amendments.

Textual Amendments

F9Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 122 (with Sch. 5)

Commencement Information

I3S. 61 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

62References to Welsh MinistersE+W

In the following provisions of the Housing Act 1996 (c. 52)—

(a)for “Secretary of State” substitute “ Welsh Ministers ”,

(b)for “Secretary of State makes” substitute “ Welsh Ministers make ”,

(c)for “he” substitute “ they ”,

(d)for “him” substitute “ them ” (except in section 12A(4)), and

(e)for “considers” substitute “ consider ”.

ProvisionTopic
Section 9(1A)(b)Consent for disposal of land
Section 12A(4)Right of first refusal: regulations
Section 15A(5)Deferred resale agreements: order
F10. . .F10. . .
Section 18(5)(b)Social housing grants: appointment of agent
Section 23(6)Loans: approved schemes
Section 27A(3)Grants to other bodies: further provision
Section 29(1), (2) and (3)Commutation of special residual subsidy
Section 30(5)(b)Collection of information: notice
Section 39(3)Insolvency etc: order defining terms
Section 46(7)(b)Appointment of manager: order
Section 52(1) and (3)Orders: general
Section 53(1), (4) and (5)Determinations: general
Section 55(2)Consequential: order
Paragraph 9(3A)(b) of Schedule 1Change of rules of [F11registered society]: consent
Paragraph 11(3A)(b) of Schedule 1Change of articles of company: consent
Paragraph 15A(1) of Schedule 1Transfer of assets of charity on dissolution: order

Textual Amendments

F11Words in Act substituted (1.8.2014 immediately after s. 1 of the Co-operative and Community Benefit Societies and Credit Unions Act 2010 comes into force) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 123 (with Sch. 5)

Commencement Information

I4S. 62 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

63References to National Assembly for WalesE+W

In the following provisions of the Housing Act 1996 (c. 52) for “either House of Parliament” substitute “ the National Assembly for Wales ”.

ProvisionTopic
Section 12A(8)(b)Right of first refusal: regulations
Section 15A(6)(b)Deferred resale agreements: order
F12. . .F12. . .
Section 27A(10)Grants to other bodies: order
Section 39(3)Insolvency: order
Section 55(3)Consequential: order
Paragraph 15A(4) of Schedule 1Transfer of assets of charity on dissolution: order

Textual Amendments

Commencement Information

I5S. 63 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

64Dissolution of Housing CorporationE+W

(1)The Secretary of State shall by order make provision for the dissolution of the Housing Corporation.

(2)The Secretary of State may by order make consequential amendment of enactments referring to the Housing Corporation.

(3)Omit section 33A of the Housing Associations Act 1985 (c. 69) (provision of services between the Corporations).

Commencement Information

I6S. 64(1)(2) in force at 16.2.2009 by S.I. 2009/363, art. 2

I7S. 64(3) in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

65Transfer schemesE+W

(1)The Secretary of State may make one or more schemes for the transfer of the Housing Corporation's property, rights or liabilities to—

(a)the regulator,

(b)the HCA, or

(c)the Secretary of State.

(2)On the transfer date, the designated property, rights or liabilities are transferred and vest in accordance with the scheme.

(3)Schedule 6 applies to a scheme under this section.

(4)In this section—

  • designated”, in relation to a scheme, means specified in or determined in accordance with the scheme;

  • the transfer date” means the date specified by a scheme as the date on which the scheme is to have effect.

(5)Schedule 7 makes provision about the tax implications of schemes under this section (and schemes under section 51).

Commencement Information

I8S. 65 in force at 8.9.2008 by S.I. 2008/2358, art. 3(1)

66Interim arrangementsE+W

The Secretary of State may by notice require the Housing Corporation to provide staff, premises, facilities or other assistance to—

(a)the regulator, or

(b)the HCA.

Commencement Information

I9S. 66 in force at 8.9.2008 as it applies in relation to, or makes provision about the tax implications of, schemes under ss. 51 and 65 by S.I. 2008/2358, art. 3(1)

67Transitional arrangementsE+W

(1)The Secretary of State may by order transfer functions of the Housing Corporation to—

(a)the regulator,

(b)the HCA, or

(c)the regulator and the HCA jointly or concurrently.

(2)An order under subsection (1) may make provision in relation to English registered social landlords which is similar to any provision made by this Part in relation to registered providers.

(3)English registered social landlord” means a body—

(a)which is registered as a social landlord under Part 1 of the Housing Act 1996, and

(b)which does not fall within paragraphs (a) to (c) of section 56(2) of that Act (Welsh bodies).

(4)The Secretary of State may by order make further provision in respect of a function transferred under this section (which may, in particular, include provision for the function to cease to be exercisable).

(5)Provision made under this section, including provision made by virtue of section 320(1)(d), may modify an enactment.

(6)Provision under section 322(1) in connection with the coming into force of a provision of this Act may, in particular, include transitional provision having regard to the effect of provision made under this section.

Commencement Information

I10S. 67 in force at 8.9.2008 as it applies in relation to, or makes provision about the tax implications of, schemes under ss. 51 and 65 by S.I. 2008/2358, art. 3(1)

I11S. 67 in force at 1.4.2010 in so far as not already in force by S.I. 2010/862, art. 2 (with Sch.)

Social housingE+W

68Basic principleE+W

(1)In this Part “social housing” means—

(a)low cost rental accommodation (defined by section 69), and

(b)low cost home ownership accommodation (defined by section 70).

(2)Accommodation which becomes “social housing” by satisfying subsection (1)(a) or (b) remains “social housing” for the purposes of this Part unless and until an event specified in sections 73 to 76 occurs.

(3)Section 77 makes transitional provision as a result of which certain accommodation is to be treated as “social housing” whether or not it satisfies subsection (1)(a) or (b).

Commencement Information

I12S. 68 in force at 8.9.2008 for specified purposes by S.I. 2008/2358, art. 3(1)

I13S. 68 in force at 1.4.2010 in so far as not already in force by S.I. 2010/862, art. 2 (with Sch.)

69Low cost rentalE+W

Accommodation is low cost rental accommodation if—

(a)it is made available for rent,

(b)the rent is below the market rate, and

(c)the accommodation is made available in accordance with rules designed to ensure that it is made available to people whose needs are not adequately served by the commercial housing market.

Commencement Information

I14S. 69 in force at 8.9.2008 for specified purposes by S.I. 2008/2358, art. 3(1)

I15S. 69 in force at 1.4.2010 in so far as not already in force by S.I. 2010/862, art. 2 (with Sch.)

70Low cost home ownershipE+W

(1)Accommodation is low cost home ownership accommodation if the following conditions are satisfied.

(2)Condition 1 is that the accommodation is occupied, or made available for occupation, in accordance with—

(a)shared ownership arrangements,

(b)equity percentage arrangements, or

(c)shared ownership trusts.

(3)Condition 2 is that the accommodation is made available in accordance with rules designed to ensure that it is made available to people whose needs are not adequately served by the commercial housing market.

(4)Shared ownership arrangements” means arrangements under a lease which—

(a)is granted on payment of a premium calculated by reference to a percentage of either the value of the accommodation or the cost of providing it, and

(b)provides that the tenant (or the tenant's personal representatives) will or may be entitled to a sum calculated by reference to the value of the accommodation.

(5)Equity percentage arrangements” means arrangements under which—

(a)the owner of a freehold or leasehold interest in residential property (“the seller”) conveys it to an individual (“the buyer”),

(b)the buyer, in consideration for the conveyance—

(i)pays the seller a sum (the “initial payment”) expressed to represent a percentage of the value of the interest at the time of the conveyance, and

(ii)agrees to pay the seller other sums calculated by reference to a percentage of the value of the interest at the time when each sum is to be paid, and

(c)the liability to make any payment required by the arrangements (apart from the initial payment) is secured by a mortgage.

(6)Shared ownership trusts has the same meaning as in Schedule 9 to the Finance Act 2003 (c. 14) (stamp duty land tax).

(7)The Secretary of State may make regulations amending—

(a)the definition of “low cost home ownership accommodation”;

(b)the definition of any of the sub-categories specified in that definition.

Commencement Information

I16S. 70 in force at 8.9.2008 for specified purposes by S.I. 2008/2358, art. 3(1)

I17S. 70 in force at 1.4.2010 in so far as not already in force by S.I. 2010/862, art. 2 (with Sch.)

71Shared ownership low cost rentalE+W

Accommodation which is both low cost rental accommodation and low cost home ownership accommodation is to be treated as the latter and not as the former.

Commencement Information

I18S. 71 in force at 8.9.2008 for specified purposes by S.I. 2008/2358, art. 3(1)

I19S. 71 in force at 1.4.2010 in so far as not already in force by S.I. 2010/862, art. 2 (with Sch.)

72RegulationsE+W

(1)The Secretary of State may make regulations providing that specified property, or a specified class of property, is or is not to be treated as social housing for the purposes of this Part.

(2)The regulations may provide for property to be social housing despite not satisfying section 68(1)(a) or (b) where the Secretary of State thinks the property is of a kind, or is provided in circumstances, that serve the needs of a group whose needs are not adequately served by the commercial housing market.

(3)The regulations—

(a)may override section 68(2),

(b)are subject to sections 68(3) and 77, and

(c)are subject to sections 69 and 70 (but may clarify doubt about the application of those sections).

(4)The regulations—

(a)may make provision by reference to the opinion of the regulator or another specified person, and

(b)may make provision by reference to designation, agreement or other action by the regulator or another specified person.

Commencement Information

I20S. 72 in force at 8.9.2008 by S.I. 2008/2358, art. 3(1)

73Leaving the social housing stock: saleE+W

(1)A dwelling ceases to be social housing if it is sold to the tenant.

(2)Low cost rental accommodation is “sold to the tenant” when the tenant exercises a statutory or contractual right and as a result becomes the owner of—

(a)the freehold interest in the property, or

(b)the leasehold interest previously owned by the person providing the social housing.

(3)Low cost home ownership accommodation of the shared ownership kind is “sold to the tenant” when the tenant exercises a statutory or contractual right and as a result becomes the owner of—

(a)the freehold interest in the property, or

(b)the leasehold interest previously owned by the person providing the social housing.

(4)Low cost home ownership accommodation of the equity percentage kind is “sold to the tenant” when the “buyer” (see section 70(5)(a)) exercises a statutory or contractual right as a result of which the equity percentage arrangements (see section 70(5)) come to an end.

(5)Low cost home ownership accommodation of the shared ownership trust kind comes to an end when the “purchaser” (see paragraph 7(4)(a) of Schedule 9 to the Finance Act 2003 (c. 14)) exercises a statutory or contractual right as a result of which the trust comes to an end.

Commencement Information

I21S. 73 in force at 8.9.2008 for specified purposes by S.I. 2008/2358, art. 3(1)

I22S. 73 in force at 1.4.2010 in so far as not already in force by S.I. 2010/862, art. 2 (with Sch.)

74Leaving the social housing stock: expired leaseE+W

(1)A dwelling ceases to be social housing if—

(a)the provider holds a leasehold interest in the dwelling, and

(b)the leasehold interest expires.

(2)A lease from an associate or subsidiary of the provider is disregarded for the purposes of subsection (1).

Commencement Information

I23S. 74 in force at 8.9.2008 for specified purposes by S.I. 2008/2358, art. 3(1)

I24S. 74 in force at 1.4.2010 in so far as not already in force by S.I. 2010/862, art. 2 (with Sch.)

[F1374ALeaving the social housing stock: transfer by private providersE+W

(1)A dwelling ceases to be social housing if a private registered provider of social housing owns the freehold or a leasehold interest and transfers it to a person who is not a registered provider of social housing.

(2)Subsection (1) does not apply if and for so long as the private registered provider has a right to have the interest transferred back to it.

(3)Subsection (1) does not apply where low cost home ownership accommodation is transferred to—

(a)the “buyer” under equity percentage arrangements (see section 70(5)), or

(b)the trustees under a shared ownership trust (see section 70(6)).

(4)See section 73 for circumstances when low cost home ownership accommodation ceases to be social housing.]

75Leaving the social housing stock: [F14local authority] disposal with consentE+W

F15(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F16(1A)A dwelling ceases to be social housing if it is—

(a)disposed of with the Secretary of State’s consent in accordance with section 32 or 43 of the Housing Act 1985 (disposals by local authorities),

(b)appropriated with the Secretary of State’s consent in accordance with section 19(2) of that Act (appropriation by local authorities for some other purpose), or

(c)disposed of by a local authority with the Secretary of State’s consent in accordance with any other enactment.]

(2)[F17Subsection (1A) does] not apply to a disposal in pursuance of shared ownership arrangements or equity percentage arrangements.

(3)[F17Subsection (1A) does] not apply if the consent is conditional upon the dwelling continuing to be low cost rental accommodation or low cost home ownership accommodation.

(4)A condition of that kind shall include provision for determining when the dwelling ceases to be social housing.

Textual Amendments

Commencement Information

I25S. 75 in force at 8.9.2008 for specified purposes by S.I. 2008/2358, art. 3(1)

I26S. 75 in force at 1.4.2010 in so far as not already in force by S.I. 2010/862, art. 2 (with Sch.)

76Leaving the social housing stock: regulator's directionE+W

(1)The regulator may direct that a specified dwelling is to cease to be social housing.

(2)The regulator may make a direction only on the application of the provider.

[F18(3)A direction may not be made if the provider is a local authority.]

Textual Amendments

Commencement Information

I27S. 76 in force at 8.9.2008 for specified purposes by S.I. 2008/2358, art. 3(1)

I28S. 76 in force at 1.4.2010 in so far as not already in force by S.I. 2010/862, art. 2 (with Sch.)

77Housing stock under Housing Act 1996E+W

(1)This section applies to property owned by a registered social landlord within the meaning of Part 1 of the Housing Act 1996 (c. 52) before the coming into force of section 61 of this Act.

(2)Property to which this section applies is social housing—

(a)whether or not it satisfies section 68(1)(a) or (b), and

(b)unless and until an event specified in sections 73 to 76 occurs.

(3)But property to which any of the exceptions below applies when section 61 comes into force is social housing only if the purchase, construction or renovation of the property was funded by means of a grant under—

(a)section 19 (financial assistance by the HCA),

(b)section 18 of the Housing Act 1996 (social housing grant), or

(c)section 50 of the Housing Act 1988, section 41 of the Housing Associations Act 1985 (c. 69) or section 29 or 29A of the Housing Act 1974 (c. 44) (housing association grant).

(4)Exception 1 is accommodation let on the open market.

(5)Exception 2 is accommodation made available only to students in full-time education or training.

(6)Exception 3 is a care home (within the meaning of the Care Standards Act 2000 (c. 14)) in which nursing is provided.

(7)Exception 4 is accommodation provided in response to a request by the Secretary of State under section 100 of the Immigration and Asylum Act 1999 (c. 33) (support for asylum seekers).

(8)Exception 5 is property of a kind specified by regulations made by the Secretary of State.

Commencement Information

I29S. 77 in force at 8.9.2008 for specified purposes by S.I. 2008/2358, art. 3(1)

I30S. 77 in force at 1.4.2010 in so far as not already in force by S.I. 2010/862, art. 2 (with Sch.)

Other key conceptsE+W

F1978Regulator of Social HousingE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

79English bodiesE+W

(1)In this Part “English body” means—

(a)a registered charity whose address for the purposes of registration by the Charity Commission is in England,

(b)[F9a registered society] whose registered office for the purposes of [F20the Co-operative and Community Benefit Societies Act 2014] is in England,

(c)a registered company which has its registered office in England,

(d)a community land trust which owns land in England, and

(e)any other person (whether or not a body corporate registered under the law of the United Kingdom) which—

(i)is not a Welsh body within the meaning of section 1A of the Housing Act 1996 (c. 52) [F21or a local authority in Wales], and

(ii)makes available, or intends to make available, accommodation in England.

(2)In subsection (1)(d) “community land trust” means a body corporate which satisfies the conditions below.

(3)In those conditions “local community” means the individuals who live or work, or want to live or work, in a specified area.

(4)Condition 1 is that the body is established for the express purpose of furthering the social, economic and environmental interests of a local community by acquiring and managing land and other assets in order—

(a)to provide a benefit to the local community, and

(b)to ensure that the assets are not sold or developed except in a manner which the trust's members think benefits the local community.

(5)Condition 2 is that the body is established under arrangements which are expressly designed to ensure that—

(a)any profits from its activities will be used to benefit the local community (otherwise than by being paid directly to members),

(b)individuals who live or work in the specified area have the opportunity to become members of the trust (whether or not others can also become members), and

(c)the members of the trust control it.

Textual Amendments

F9Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 122 (with Sch. 5)

Commencement Information

I31S. 79 in force at 8.9.2008 for specified purposes by S.I. 2008/2358, art. 3(1)

I32S. 79 in force at 1.4.2010 in so far as not already in force by S.I. 2010/862, art. 2 (with Sch.)

80Provider of social housingE+W

(1)In this Chapter a reference to the provider of social housing is to be construed as follows.

Type of social housingProvider
Low cost rental accommodationThe landlord
Low cost home ownership accommodation: shared ownershipThe landlord
Low cost home ownership accommodation: equity percentage“The seller” within the meaning of section 70(5)(a)
Low cost home ownership accommodation: shared ownership trustThe “social landlord” within the meaning of paragraph 7(3) of Schedule 9 to the Finance Act 2003

(2)Chapter 3 provides for the establishment of a register of providers of social housing: persons listed in the register—

(a)may be referred to in an enactment or other instrument as “registered providers of social housing”, and

(b)are referred to in this Part as “registered providers”.

[F22(3)Persons listed in the register who are not local authorities—

(a)may be referred to in an enactment or other instrument as “private registered providers of social housing”, and

(b)are referred to in this Part as “private registered providers”.]

Textual Amendments

Commencement Information

I33S. 80 in force at 8.9.2008 for specified purposes by S.I. 2008/2358, art. 3(1)

I34S. 80 in force at 1.4.2010 in so far as not already in force by S.I. 2010/862, art. 2 (with Sch.)

Chapter 2E+WThe Social Housing Regulator

[F23The RegulatorE+W

Textual Amendments

80A.EstablishmentE+W

(1)The Regulator of Social Housing is established as a body corporate.

(2)The Regulator of Social Housing is referred to in this Part as “the regulator”.

(3)The regulator (and any member of the regulator)—

(a)is not the servant or agent of the Crown, and

(b)does not share any immunity or privilege of the Crown.

(4)No property of the regulator is to be regarded as property of, or held on behalf of, the Crown.

80B.MembershipE+W

(1)The regulator is to consist of—

(a)a person appointed by the Secretary of State as chair (“the chair”),

(b)at least 6 and no more than 10 other members, appointed by the Secretary of State, and

(c)the chief executive appointed under section 80D(1).

(2)The Secretary of State must consult the chair before appointing a member under subsection (1)(b).

(3)In appointing a person to be an appointed member the Secretary of State must—

(a)have regard to the desirability of appointing a person who has experience of, and has shown some capacity in, matters relevant to the exercise of the functions of the regulator, and

(b)be satisfied that the person has no financial or other interest likely to affect prejudicially the exercise of the person’s functions as a member.

(4)The Secretary of State may require any person who the Secretary of State proposes to appoint as an appointed member to provide any information the Secretary of State considers necessary for the purposes of subsection (3)(b).

(5)In this Part “appointed member” means—

(a)the chair, or

(b)a member appointed under subsection (1)(b).

80C.Terms of appointment of membersE+W

(1)An appointed member holds and vacates office in accordance with the appointed member’s terms of appointment (subject to this section).

(2)An appointed member may resign by notice to the Secretary of State.

(3)The Secretary of State may dismiss an appointed member who—

(a)has been absent from meetings of the regulator for a period of more than 6 months without its permission,

(b)has become bankrupt or has made an arrangement with the member’s creditors,

(c)the Secretary of State thinks has failed to comply with the member’s terms of appointment,

(d)the Secretary of State thinks has failed to comply with the member’s obligations under section 92P (members’ interests),

(e)the Secretary of State thinks is otherwise unable, unfit or unsuitable to perform the functions of the member.

80D.StaffE+W

(1)The chair and other appointed members of the regulator must appoint a chief executive.

(2)But a person may be appointed as chief executive under subsection (1) only if approved by the Secretary of State.

(3)The regulator may appoint other staff.

(4)The regulator may pay to its staff such remuneration and allowances as it may decide.

(5)The regulator may—

(a)pay such pensions, allowances or gratuities to or in respect of any, or any former, member of staff, or

(b)pay such sums towards the provision for the payment of pensions, allowances or gratuities to or in respect of any, or any former, member of staff,

as it may decide.]

ConstitutionE+W

F2481EstablishmentE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2582MembershipE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2683TenureE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2784Chief executiveE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2885Other staffE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ProceedingsE+W

F2986Fundamental objectivesE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3087ProcedureE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3188Conflict of interestE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3289CommitteesE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3390DelegationE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3491SealE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3592Annual reportE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W

Textual Amendments

F3692ARegulation functions of the HCAE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F36 92B The Regulation CommitteeE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F36 92C Membership of the Regulation CommitteeE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F36 92D Terms of appointment of membersE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3692E Remuneration etc of members E+W

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F3692F Sub-committees of the Regulation CommitteeE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3692G Procedure of the Committee and its sub-committeesE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3692H Members' interestsE+W

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F3692I Exercise of functionsE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3692J Recommendations to HCAE+W

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[F37Fundamental objectivesE+W

Textual Amendments

F37Ss. 92A-92K and cross-heading inserted (15.1.2012 for the insertion of ss. 92B(1), 92C, 92D, 92E, 92F, 92G, 92H, 92I, 1.4.2012 in so far as not already in force) by Localism Act 2011 (c. 20), s. 240(2), Sch. 16 para. 26 (with Sch. 16 para. 69); S.I. 2012/57, art. 4(1)(t)(ii) (with arts. 6 7 9-11); S.I. 2012/628, art. 6(i) (with arts. 9 11 14 15 17)

92K Fundamental objectivesE+W

(1)The regulator must perform its functions with a view to achieving (so far as is possible)—

(a)the economic regulation objective, and

(b)the consumer regulation objective.

(2)The economic regulation objective is—

(a)to ensure that registered providers of social housing are financially viable and properly managed, and perform their functions efficiently and economically,

(b)to support the provision of social housing sufficient to meet reasonable demands (including by encouraging and promoting private investment in social housing),

(c)to ensure that value for money is obtained from public investment in social housing,

(d)to ensure that an unreasonable burden is not imposed (directly or indirectly) on public funds, and

(e)to guard against the misuse of public funds.

(3)The consumer regulation objective is—

(a)to support the provision of social housing that is well-managed and of appropriate quality,

(b)to ensure that actual or potential tenants of social housing have an appropriate degree of choice and protection,

(c)to ensure that tenants of social housing have the opportunity to be involved in its management and to hold their landlords to account, and

(d)to encourage registered providers of social housing to contribute to the environmental, social and economic well-being of the areas in which the housing is situated.

(4)The objectives are referred to in this Part as the regulator's fundamental objectives.

(5)The regulator must exercise its functions in a way that—

(a)minimises interference, and

(b)(so far as is possible) is proportionate, consistent, transparent and accountable.]

[F38Procedure etc.E+W

Textual Amendments

92L.CommitteesE+W

(1)The regulator may establish committees and sub-committees.

(2)A committee or sub-committee may include non-members (provided that it includes at least one member).

(3)The regulator may, with the consent of the Secretary of State, pay such remuneration and allowances as it thinks fit to any person who—

(a)is a member of a committee or sub-committee, but

(b)is not a member of the regulator.

92M.ProcedureE+W

(1)Subject to the provisions of this Part, the regulator may determine its own procedure and the procedure of any committee or sub-committee.

(2)The regulator must make such arrangements as it thinks appropriate for publishing its procedure.

(3)The validity of any proceedings is not affected by—

(a)any vacancy of the chair, chief executive or any other member,

(b)any defect in the appointment of the chair, chief executive or any other member, or

(c)any contravention of section 92P (members’ interests).

(4)In this section “procedure” includes quorum.

92N.Conflict of interestE+W

(1)The regulator’s procedure under section 92M must include arrangements for dealing with any conflict of interest of—

(a)members,

(b)members of staff, or

(c)members of committees or sub-committees.

(2)The procedure must oblige a person—

(a)to declare any financial or other personal interest relevant to the exercise of a function of the regulator, and

(b)to withdraw from the performance of that function unless the regulator directs otherwise, being satisfied that the interest will not influence performance of the function.

92O.DelegationE+W

(1)The regulator may delegate any of its functions to—

(a)a committee,

(b)a sub-committee,

(c)a member, or

(d)a member of staff.

(2)A committee may further delegate to a sub-committee, a member of the regulator, or a member of staff.

92P.Members’ interestsE+W

(1)A member of the regulator who is directly or indirectly interested in any matter arising at a meeting of the regulator must disclose the nature of that interest to the meeting.

(2)A member of a committee or sub-committee of the regulator who is directly or indirectly interested in any matter arising at a meeting of the committee or sub-committee must disclosure the nature of that interest to the meeting.

(3)Where a member has disclosed an interest within subsection (1) or (2)—

(a)that member must not take part in any deliberation or decision about the matter if it is a contract or agreement of any description, but

(b)may otherwise take part in any deliberation or decision about the matter unless at least one-third of the other members at the meeting decide that the interests disclosed might prejudicially affect the member’s consideration of the matter.

(4)The regulator must prepare and keep up to date a register of members’ interests of the interests disclosed under subsection (1) or (2).

(5)The register required by subsection (4) must include the interests of—

(a)the members of the regulator, and

(b)all members of committees or sub-committees whether or not falling within paragraph (a).

92Q.SealE+W

(1)The application of the regulator’s seal must be authenticated by a member of the regulator or by some other person authorised (generally or specially) by the regulator for that purpose.

(2)A document purporting to be duly executed under the seal—

(a)is to be received in evidence, and

(b)is to be treated as so executed unless the contrary is shown.]

PowersE+W

93GeneralE+W

(1)The regulator may do anything it thinks necessary or expedient for the purpose of or in connection with the performance of a function [F39of the regulator].

(2)In particular, the regulator may do anything it thinks appropriate for advancing its fundamental objectives.

Textual Amendments

F39Words in s. 93(1) substituted (1.4.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 16 para. 27; S.I. 2012/628, art. 6(i) (with arts. 9 11 14 15 17)

Commencement Information

I35S. 93 in force at 8.9.2008 for specified purposes by S.I. 2008/2358, art. 3(1)

I36S. 93 in force at 1.4.2009 by S.I. 2009/803, art. 7(a)

94StudiesE+W

(1)The regulator may carry out or commission studies designed to improve the economy, effectiveness and efficiency of registered providers.

(2)The regulator may publish a report on a study.

F40(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Commencement Information

I37S. 94 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

95Financial assistanceE+W

(1)The regulator may, where it thinks it advances a fundamental objective, give financial assistance to a person in connection with—

(a)undertaking research,

(b)preparing guidance,

(c)developing and publicising best practice, or

(d)facilitating the management of social housing by tenants.

(2)Financial assistance under subsection (1) may be given—

(a)by way of grant,

(b)by way of loan,

(c)by defraying expenditure on behalf of a person, or

(d)in any other way except purchasing loan or share capital of a body corporate or giving a guarantee or indemnity.

(3)The regulator may, where it thinks it advances a fundamental objective, give financial assistance to [F41a private registered provider] by—

(a)lending money to or in respect of the registered provider, or

(b)giving a guarantee or indemnity in respect of the registered provider.

(4)Financial assistance may be given under subsection (3) only with the consent of the Secretary of State (given with the approval of the Treasury).

(5)Financial assistance under subsection (1) or (3) may be given on conditions (which may include provision for repayment, with or without interest).

Textual Amendments

Commencement Information

I38S. 95(1)(2)(5) in force at 8.9.2008 for specified purposes by S.I. 2008/2358, art. 3(1)

I39S. 95(1)(2)(5) in force at 1.4.2010 in so far as not already in force by S.I. 2010/862, art. 2 (with Sch.)

I40S. 95(3)(4) in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

96EvidenceE+W

In considering whether to exercise a power under this Part the regulator may have regard to information or opinions from any source including, in particular, from—

(a)tenants,

(b)bodies representing tenants,

(c)local housing authorities, or

(d)[F42the Commission for Local Administration in England or] an ombudsman appointed by virtue of section 124.

Textual Amendments

Commencement Information

I41S. 96 in force at 8.9.2008 for specified purposes by S.I. 2008/2358, art. 3(1)

I42S. 96 in force at 1.4.2010 in so far as not already in force by S.I. 2010/862, art. 2 (with Sch.)

97Information, advice etc.E+W

(1)The regulator may for the purpose of advancing its fundamental objectives—

(a)publish ideas or information;

(b)undertake research in relation to social housing;

(c)provide guidance, advice, education or training.

(2)The regulator may for that purpose—

(a)arrange for another person to do anything within subsection (1)(a) to (c);

(b)act jointly with, cooperate with or assist another person doing anything within subsection (1)(a) to (c).

(3)The persons to whom advice may be given under subsection (1) include—

(a)unregistered housing associations (as defined by section 2B of the Housing Associations Act 1985 (c. 69)), and

(b)persons who may be forming a housing association (within the meaning of section 1(1) of that Act).

Commencement Information

I43S. 97 in force at 8.9.2008 for specified purposes by S.I. 2008/2358, art. 3(1)

I44S. 97 in force at 1.4.2010 in so far as not already in force by S.I. 2010/862, art. 2 (with Sch.)

98Tenant involvementE+W

(1)The regulator shall—

(a)promote awareness of the regulator's functions among tenants of social housing,

(b)where the regulator thinks it appropriate, consult them about the exercise of its functions (for example, by holding meetings), and

(c)where the regulator thinks it appropriate, involve them in the exercise of its functions (for example, by appointing them to committees or sub-committees).

(2)The regulator shall from time to time publish a statement about how it proposes to comply with subsection (1).

(3)Before publishing a statement the regulator must consult such persons as it thinks appropriate.

Commencement Information

I45S. 98 in force at 8.9.2008 for specified purposes by S.I. 2008/2358, art. 3(1)

I46S. 98 in force at 1.4.2010 in so far as not already in force by S.I. 2010/862, art. 2 (with Sch.)

MoneyE+W

F4399RemunerationE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F4499A.RemunerationE+W

(1)The regulator may pay to or in respect of appointed members—

(a)remuneration, and

(b)travelling and other allowances.

(2)The Secretary of State must determine rates and eligibility criteria for payments under subsection (1).

(3)If the Secretary of State considers that there are special circumstances that justify the payment of compensation to a person on ceasing to be an appointed member, the regulator may pay such compensation as is determined by the Secretary of State.]

100ChargingE+W

[F45(1)]The regulator may charge for giving advice, conducting research or providing other services.

F46(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F45Words in s. 100 numbered as s. 100(1) (1.4.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 16 para. 29(a); S.I. 2012/628, art. 6(i) (with arts. 9 11 14 15 17)

Commencement Information

I47S. 100 in force at 8.9.2008 by S.I. 2008/2358, art. 3(1)

[F47100A.Assistance by Secretary of StateE+W

(1)The Secretary of State may make payments to the regulator by way of grant or loan.

(2)A grant or loan may be subject to conditions (which may include provision for repayment, with or without interest).]

[F47100B.BorrowingE+W

(1)The regulator may borrow—

(a)by way of overdraft or otherwise, for the purpose of what it considers to be short-term management of its finances, or

(b)from the Secretary of State.

(2)The regulator may not borrow otherwise.]

[F47100C.AccountsE+W

(1)The regulator must keep proper accounts (and proper records of its accounts).

(2)As soon as is reasonably practicable after the end of each financial year the regulator must prepare a statement of accounts in respect of that financial year.

(3)The statement must be in such form as the Secretary of State may direct.

(4)The regulator must, within such period as the Secretary of State may direct, send a copy of the statement to—

(a)the Secretary of State, and

(b)the Comptroller and Auditor General.

(5)The Comptroller and Auditor General must—

(a)examine, certify and report on the statement, and

(b)send a copy of the certified statement and the report to the Secretary of State as soon as possible.

(6)The Secretary of State must lay before Parliament a copy of each statement and report received under subsection (5).]

[F47100D.Regulator’s annual reportE+W

(1)The regulator must, as soon as is reasonably practicable after the end of each financial year, prepare an annual report in relation to how it has exercised its functions during that financial year.

(2)The regulator must, within such period as the Secretary of State may direct, send a copy of the annual report to the Secretary of State.

(3)The Secretary of State must lay a copy of each annual report before Parliament.]

[F47100E.Financial yearE+W

(1)The regulator’s financial year is each period of 12 months beginning with 1st April.

(2)But the first financial year is the period—

(a)beginning with the day on which section 80A comes into force, and

(b)ending with the next 31st March.]

[F47Relationship with the HCAE+W

100FCooperation with the HCAE+W

(1)The regulator must, in the exercise of its functions, cooperate with the HCA.

(2)The regulator must, in particular, consult the HCA on matters related to the HCA’s social housing functions.

100GDirection to the HCAE+W

(1)The regulator may direct the HCA not to give financial assistance to a specified registered provider—

(a)under section 19, and

(b)in connection with social housing.

(2)A direction may be given if—

(a)the regulator has decided to hold an inquiry into the affairs of the registered provider under section 206 (and the inquiry is not concluded),

(b)the regulator has received notice in respect of the registered provider under section 145, or

(c)the regulator has appointed an officer of the registered provider under section 269 (and the person appointed has not vacated office).

(3)A direction may prohibit the HCA from giving assistance of a specified kind (whether or not in pursuance of a decision already taken and communicated to the registered provider).

(4)A direction may not prohibit grants to a registered provider in respect of discounts given by the provider on disposals of dwellings to tenants.

(5)A direction has effect until withdrawn.]

F48101Assistance by Secretary of StateE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F49102BorrowingE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F50103AccountsE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F51104Financial yearE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Relationship with other bodiesE+W

F52105Cooperation with the HCAE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F53106Direction to the HCAE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F54106ACooperation with the Audit CommissionE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

InformationE+W

107CollectionE+W

(1)The regulator may for a purpose connected with its functions require a person to provide documents or information which it has reason to believe is or may be in the person's possession and which relates to—

(a)the financial or other affairs of a registered provider;

[F55(b)activities which are or may be carried out by—

(i)a person who is, or who has applied to become, a registered provider, or

(ii)a local authority in England which the regulator thinks may be, or may become, a provider of social housing.]

(2)A requirement may be imposed on a person other than the body to which the document or information relates only if—

(a)the body has been required to provide the document or information but has failed to do so, or

(b)the regulator thinks that the body is unable to provide it.

(3)A requirement may specify—

(a)the form and manner in which a document or information is to be provided (which may include the provision of a legible copy of information stored electronically);

(b)when and where it is to be provided.

(4)The regulator may copy or record documents or information provided.

(5)Failure to comply with a requirement without reasonable excuse is an offence.

(6)Intentionally altering, suppressing or destroying a document or information to which a requirement relates is an offence.

(7)If a person fails to comply with a requirement the High Court may, on an application by the regulator, make an order for the purpose of remedying the failure.

Textual Amendments

Commencement Information

I48S. 107 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

108Section 107: supplementalE+W

(1)A requirement does not require a person to disclose anything which the person would be entitled to refuse to disclose on grounds of legal professional privilege in proceedings in the High Court.

(2)A requirement does not require a banker to breach a duty of confidentiality owed to a person who is not—

(a)the registered provider to whose affairs or activities the documents or information relates,

(b)a subsidiary of the registered provider, or

(c)an associate of the registered provider.

(3)A person guilty of an offence under section 107(5) is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(4)A person guilty of an offence under section 107(6) is liable—

(a)on summary conviction, to a fine not exceeding the statutory maximum;

(b)on conviction on indictment, to—

(i)imprisonment for a term not exceeding two years,

(ii)a fine, or

(iii)both.

(5)Proceedings for an offence under section 107(5) or (6) may be brought only by or with the consent of—

(a)the regulator, or

(b)the Director of Public Prosecutions.

(6)An order under section 107(7) may include provision about costs.

Commencement Information

I49S. 108 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

109DisclosureE+W

(1)A public authority may disclose information to the regulator if the authority thinks that the disclosure is necessary for a purpose connected with the regulator's functions.

(2)The regulator may disclose information to a public authority if the regulator thinks that the disclosure is necessary—

(a)for a purpose connected with the regulator's functions, or

(b)for a purpose connected with the authority's functions.

(3)The regulator may disclose information to a person acting on its behalf for a purpose connected with the regulator's functions.

(4)A disclosure may be subject to restrictions on further disclosure.

(5)The power to disclose information under this section is subject to any express restriction on disclosure imposed by another enactment (ignoring any restriction which allows disclosure if authorised by an enactment).

(6)Disclosure in contravention of a restriction under subsection (4) is an offence.

(7)A person guilty of an offence is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(8)Public authority” means a person having functions of a public nature (whether or not in the United Kingdom).

Commencement Information

I50S. 109 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

Chapter 3E+WRegistration

IntroductionE+W

110OverviewE+W

This Chapter provides for the establishment of a register of providers of social housing.

Commencement Information

I51S. 110 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

111The registerE+W

(1)The regulator shall maintain a register of providers of social housing.

(2)The regulator shall make the register available for inspection by the public.

Commencement Information

I52S. 111 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

EligibilityE+W

112[F56Eligibility for voluntary registration]E+W

(1)An English body is eligible for registration if—

(a)it satisfies the following conditions, and

(b)it does not fall within the exceptions in section 113.

(2)Condition 1 is that the body—

(a)is a provider of social housing in England, or

(b)intends to become a provider of social housing in England.

(3)Condition 2 is that the body satisfies any relevant criteria set by the regulator as to—

(a)its financial situation,

(b)its constitution, and

(c)other arrangements for its management.

(4)Before setting criteria the regulator must consult—

F57(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F58(za)the HCA,]

[F59(aa)the Greater London Authority,]

(b)one or more bodies appearing to it to represent the interests of [F60private registered providers],

[F61(ba)any body for the time being nominated under section 278A,]

and

(c)one or more [F62other] bodies appearing to it to represent the interests of tenants.

[F63(5)Section 114 deals with bodies falling within the exceptions in section 113.]

Textual Amendments

Commencement Information

I53S. 112(1)(2) in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

I54S. 112(3)(4) in force at 8.9.2008 for specified purposes by S.I. 2008/2358, art. 3(1) (with art. 3(3)(4))

I55S. 112(3)(4) in force at 1.4.2010 in so far as not already in force by S.I. 2010/862, art. 2 (with Sch.)

113[F64Section 112: exceptions]E+W

(1)This section sets out the exceptions to section 112(1).

(2)Exception 1 is a local housing authority.

(3)Exception 2 is a county council.

F65(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F66(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F67(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

114Registration of local authoritiesE+W

(1)The Secretary of State may by order—

(a)repeal section 113, or

(b)amend it so as to permit the registration of specified classes of local authority.

(2)The Secretary of State may by order require the regulator to register—

(a)a specified local authority, or

(b)a specified class of local authority.

(3)Registration under subsection (2)—

(a)takes effect in accordance with any provision of the order about timing or other procedural or incidental matters,

(b)does not require an application for registration, and

(c)may apply to a local authority whether or not it is eligible for registration by virtue of subsection (1).

(4)If the Secretary of State thinks it necessary or desirable in connection with the registration of local authorities, the Secretary of State may by order—

(a)provide for a provision of this Part or any other enactment not to apply in relation to registered local authorities;

(b)provide for a provision of this Part or any other enactment to apply with specified modifications in relation to registered local authorities;

(c)amend a provision of this Part or any other enactment.

(5)In this section—

(a)local authority” means an authority or person to whom section 113 applies or has applied, and

(b)registered local authorities” means authorities or persons who are registered, registrable or to be registered as a result of an order under subsection (1) or (2) above.

(6)Before making an order under this section the Secretary of State shall consult—

(a)any authority or person likely to be affected by it, and

(b)such other persons as the Secretary of State thinks fit.

Commencement Information

I57S. 114 in force at 8.9.2008 for specified purposes by S.I. 2008/2358, art. 3(1)

I58S. 114 in force at 7.9.2009 for E. in so far as not already in force by S.I. 2009/2096, art. 2(1)

[F68114ALocal authorities: duty to notifyE+W

(1)A local authority in England which is not subject to compulsory registration must notify the regulator as soon as it becomes subject to compulsory registration.

(2)For these purposes, an authority is subject to compulsory registration if—

(a)it is a provider of social housing, or

(b)it intends to become a provider of social housing.]

115Profit-making and non-profit organisationsE+W

(1)Each entry in the register shall designate the body registered as either—

(a)a non-profit organisation, or

(b)a profit-making organisation.

(2)A body is a non-profit organisation if it is a registered or non-registrable charity.

(3)A body is also a non-profit organisation if it satisfies the following conditions.

(4)Condition 1 is that the body—

(a)does not trade for profit, or

(b)is prohibited by its constitution from issuing capital with interest or dividend at a rate exceeding that prescribed under section 1(1)(b) of the Housing Associations Act 1985 (c. 69).

(5)Condition 2 is that a purpose of the body is the provision or management of housing.

(6)Condition 3 is that any other purposes of the body are connected with or incidental to the provision of housing.

(7)The Secretary of State may make regulations providing that a specified purpose is to be, or not to be, treated as connected with or incidental to the provision of housing.

(8)A body which is not a non-profit organisation under subsection (2) or (3) is a profit-making organisation.

(9)If the regulator thinks that what was a profit-making organisation has become a non-profit organisation [F69or vice versa], the regulator must change the registered designation accordingly.

[F70(10)Subsection (1) does not apply to the entry of a local authority in the register (and, accordingly, references to “profit-making” and “non-profit” in connection with a registered provider do not refer to a local authority).]

Textual Amendments

Commencement Information

I59S. 115 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

ProcedureE+W

116[F71Entry in the register: voluntary registration]E+W

(1)The regulator shall register anyone who—

(a)is eligible for registration [F72under section 112(1)], and

(b)applies to be registered.

(2)The regulator may make provision about—

(a)the form of an application;

(b)the information to be contained in it or provided with it;

(c)the manner in which an application is to submitted;

(d)the consequences of failure to comply with provision under paragraphs (a) to (c).

(3)This section is subject to section 117 (fees).

(4)Once entered [F73in the register under this section] a body remains registered unless and until removed under section 118 or 119.

(5)It shall be presumed for all purposes that a person entered in the register [F74under this section] is eligible for registration while the registration lasts (irrespective of whether and why the person is later removed from the register).

[F75(6)This section deals with voluntary registration; for the registration of local housing authorities and county councils, see section 114.]

117 FeesE+W

[F76(1)The regulator may charge—

(a)a fee for initial registration, and

(b)an annual fee for continued registration.

(2)Except in the case of a local authority, the regulator may make initial or continued registration conditional upon payment of the fee.]

(3)The regulator shall—

(a)prescribe the amount of a fee, and

(b)make provision about the periods during which and in respect of which annual fees are payable.

(4)The regulator may set different fees, and make different provision, for different cases or circumstances.

(5)Fees must be set in accordance with principles which the regulator prepares and publishes and which are designed to ensure that so far as is reasonably practicable—

(a)fee income matches expenditure on the performance of [F77the regulator's] functions,

(b)each fee is reasonable and proportionate to the costs to which it relates, and

(c)actual or potential registered providers can see the relationship between the amount of a fee and the costs to which it relates.

(6)The principles—

(a)shall provide for section 95(3) to be disregarded for the purpose of subsection (5)(a), and

(b)may provide for specified expenditure or potential expenditure under section 95 or otherwise to be disregarded for the purpose of subsection (5)(a).

(7)Principles do not have effect until approved by the Secretary of State.

(8)In preparing (or revising) the principles the regulator shall consult persons appearing to the regulator to represent the interests of fee-payers.

(9)The [F78regulator’s] accounts shall show—

(a)fees received, and

(b)fees outstanding.

F79(10). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F77Words in s. 117(5)(a) inserted (1.4.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 16 para. 37(2); S.I. 2012/628, art. 6(i) (with arts. 9 11 14 15 17)

Commencement Information

I62S. 117 in force at 8.9.2008 for specified purposes by S.I. 2008/2358, art. 3(1)

I63S. 117 in force at 1.4.2010 in so far as not already in force by S.I. 2010/862, art. 2 (with Sch.)

118De-registration: compulsoryE+W

(1)The regulator may remove from the register a [F80private registered provider] which the regulator thinks—

(a)is no longer eligible for registration,

(b)has ceased to carry out activities, or

(c)has ceased to exist.

(2)Before removing a body under subsection (1)(a) or (b) the regulator must—

(a)take all reasonable steps to give the body at least 14 days' notice, and

(b)consider any representations it makes in that period.

(3)After removing a body under subsection (1)(a) or (b) the regulator must take all reasonable steps to notify the body.

[F81(4)The regulator shall remove a local authority from the register if the regulator becomes aware that the authority—

(a)is no longer a provider of social housing, or

(b)no longer intends to become a provider of social housing (in the case of an authority which intended to become one but did not in fact do so).]

119De-registration: voluntaryE+W

(1)A [F82private registered provider] may ask the regulator to remove it from the register.

(2)The regulator may comply with a request—

(a)on the grounds that the registered provider no longer is or intends to be a provider of social housing in England,

(b)on the grounds that the registered provider is subject to regulation by another authority whose control is likely to be sufficient, or

(c)on the grounds that the registered provider meets any relevant criteria for de-registration set by the regulator.

(3)Before deciding whether or not to comply, the regulator must consult such local authorities in whose area the registered provider acts as it thinks appropriate.

(4)The regulator shall not comply with a request by a non-profit registered provider if it thinks that removal is sought with a view to enabling the registered provider to distribute assets to members.

(5)In deciding whether or not to comply, the regulator must (in particular) have regard to—

F83(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)any conditions imposed in connection with financial assistance given to the registered provider under any enactment.

(6)Having decided whether or not to remove the registered provider the regulator must notify—

(a)the provider, and

(b)any authority consulted.

(7)The regulator shall publish criteria set for the purposes of subsection (2)(c).

Textual Amendments

Commencement Information

I65S. 119(1) s. 119(3)-(6) in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

I66S. 119(2)(7) in force at 8.9.2008 for specified purposes by S.I. 2008/2358, art. 3(1)

I67S. 119(2)(7) in force at 1.4.2010 in so far as not already in force by S.I. 2010/862, art. 2 (with Sch.)

120NoticeE+W

(1)As soon as is reasonably practicable after registering or de-registering a body the regulator shall notify—

(a)in the case of a registered charity, the Charity Commission,

(b)in the case of [F9a registered society], the [F84Financial Conduct Authority], F85...

(c)in the case of a registered company (whether or not also a registered charity), the registrar of companies for England and Wales [F86, and

(d)in the case of a local authority, the Secretary of State.]

(2)[F87Except in the case of a local authority,] a notice of registration shall specify whether the person registered is designated as a non-profit or profit-making organisation.

(3)If the designation changes, the regulator shall notify any person notified of the registration.

(4)A person to whom notice is given under this section must keep a record of it.

121AppealE+W

(1)A body may appeal to the High Court against a decision of the regulator—

(a)to refuse to register it,

(b)to de-register it, or

(c)to refuse to de-register it.

(2)The regulator shall not de-register a body while an appeal is pending.

(3)The Secretary of State may by order provide for the First-tier Tribunal to have jurisdiction under this section instead of the High Court.

Commencement Information

I69S. 121 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

Chapter 4E+WRegistered providers

General provisionsE+W

122Payments to members etc.E+W

(1)This section restricts the making of gifts, and the payment of dividends and bonuses, by a non-profit registered provider to—

(a)a member or former member of the registered provider,

(b)a member of the family of a member or former member,

(c)a company which has as a director a person within paragraph (a) or (b).

(2)A gift may be made, and a dividend or bonus may be paid, only if it falls within one of the following permitted classes.

(3)Class 1 is payments which—

(a)are in accordance with the constitution of the registered provider, and

(b)are due as interest on capital lent to the provider or subscribed in its shares.

(4)Class 2 is payments which—

(a)are paid by a fully mutual housing association (within the meaning of section 1(2) of the Housing Associations Act 1985 (c. 69)),

(b)are paid to former members of the association, and

(c)are due under—

(i)tenancy agreements with the association, or

(ii)agreements under which the former members became members of the association.

(5)Class 3 is payments which—

(a)are in accordance with the constitution of the registered provider making the payment (“the payer”), and

(b)are made to a registered provider which is a subsidiary or associate of the payer.

[F88(5A)Class 4 is payments which—

(a)are in accordance with the constitution of the registered provider,

(b)are paid for the benefit of tenants of the provider, and

(c)are in any particular case paid to assist the tenant to obtain other accommodation by acquiring a freehold, or long-leasehold, interest in a dwelling.

(5B)For the purposes of subsection (5A)—

  • long-leasehold interest ”, in relation to a dwelling, means the lessee's interest under a lease of the dwelling granted, for a premium, for a term certain exceeding 21 years;

  • acquiring ”, in relation to a long-leasehold interest in a dwelling, includes acquiring by grant and acquiring by assignment. ]

(6)If a registered company or [F89registered society] contravenes this section—

(a)it may recover the wrongful gift or payment as a debt from the recipient, and

(b)the regulator may require it to take action to recover the gift or payment.

[F90(7)The Secretary of State may by order amend this section for the purpose of—

(a)adding to the permitted classes, or

(b)modifying or removing a permitted class added by order under this subsection.

(8)Before making an order under subsection (7), the Secretary of State must consult—

(a)the Charity Commission,

(b)the regulator, and

(c)one or more bodies appearing to the Secretary of State to represent the interests of registered providers.]

Textual Amendments

F88S. 122(5A)(5B) inserted (15.1.2012) by Localism Act 2011 (c. 20), ss. 177, 240(1)(j)

Commencement Information

I70S. 122 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

123Disposal of propertyE+W

Chapter 5 makes provision about disposal of property [F91by private registered providers].

Textual Amendments

Commencement Information

I71S. 123 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

124ComplaintsE+W

(1)In section 51 of, and Schedule 2 to, the Housing Act 1996 (c. 52) (schemes for investigation of complaints by housing ombudsmen) for “Relevant Authority”, wherever appearing, substitute “ Regulator of Social Housing ”.

(2)In section 51 of that Act—

(a)for subsection (2)(a) substitute—

(a)a registered provider of social housing,,

(b)in subsection (2)(d) after “registered with” insert “ the Regulator of Social Housing or ”, and

(c)at the end add—

(7)Section 52 shall apply to an order under subsection (4) (with any necessary modifications).

(3)In paragraph 6(2) of Schedule 2 to that Act (grants) for “Housing Corporation”, in both places, substitute “ Regulator of Social Housing ”.

(4)In paragraph 11(4) of Schedule 2 to that Act, omit—

(a)“or the Housing Corporation”, and

(b)“or, as the case may be, the Housing Corporation”.

(5)At the end of Schedule 2 to that Act add—

General provision about orders

12Section 52 shall apply to an order of the Secretary of State under this Schedule (with any necessary modifications).

Commencement Information

I72S. 124 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

125Voluntary undertakingE+W

(1)A registered provider may give the regulator an undertaking in respect of any matter concerning social housing.

(2)The regulator may prescribe a procedure to be followed in giving an undertaking.

(3)In exercising a power under Chapter 6 or 7 the regulator must have regard to any undertaking offered or given.

(4)The regulator may found a decision about whether to exercise a power under Chapter 6 or 7 wholly or partly on the extent to which an undertaking has been honoured.

Commencement Information

I73S. 125 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

F92126Sustainable community strategiesE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

AccountsE+W

127DirectionsE+W

(1)The regulator may give directions to [F93private registered providers] about the preparation of their accounts.

(2)A direction may be given to a profit-making registered provider only in so far as its accounts relate to social housing activities.

(3)The power must be exercised with a view to ensuring that accounts—

(a)are prepared in proper form, and

(b)present a true and fair view of—

(i)the state of affairs of each registered provider in relation to its social housing activities, and

(ii)the disposition of funds and assets which are, or have been, in its hands in connection with those activities.

(4)A direction may require a registered charity to use a specified method for distinguishing in its accounts between—

(a)matters relating to its social housing activities, and

(b)other matters.

(5)A direction—

(a)may make provision that applies generally or only to specified cases, circumstances or registered providers, and

(b)may make different provision for different cases, circumstances or registered providers.

(6)A direction that relates to more than one registered provider may be given only after consulting one or more bodies appearing to the regulator to represent the interests of [F94private registered providers].

(7)The regulator shall make arrangements for bringing a direction to the attention of every registered provider to which it applies.

Textual Amendments

Commencement Information

I74S. 127(1)-(5) (7) in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

I75S. 127(6) in force at 8.9.2008 for specified purposes by S.I. 2008/2358, art. 3(1) (with art. 3(3)(4))

I76S. 127(6) in force at 1.4.2010 in so far as not already in force by S.I. 2010/862, art. 2 (with Sch.)

128Submission to regulatorE+W

(1)Each [F95private registered provider] shall send a copy of its accounts to the regulator within the period of 6 months beginning with the end of the period to which the accounts relate.

(2)The accounts must be accompanied by—

(a)an auditor's report, or

(b)in the case of accounts that by virtue of an enactment are not subject to audit, any report that is required to be prepared in respect of the accounts by virtue of an enactment.

(3)The report must specify whether the accounts comply with any relevant directions under section 127.

[F96(4)Each local authority which is a registered provider shall send copies of the following documents to the regulator so far as they relate to the provision of social housing—

(a)[F97any report under paragraph 1 of Schedule 7 to the Local Audit and Accountability Act 2014 (public interest reports)] in relation to its accounts;

(b)its audited accounts, accompanied by any report made under that section at the conclusion of the audit.

(5)The local authority shall send the copies to the regulator as soon as the authority receives them.]

129Companies exempt from auditE+W

(1)This section applies in relation to a registered provider which—

(a)is a registered company other than a charity, and

(b)is exempt from the audit requirements of the Companies Act 2006 (c. 46) by virtue of section 477 of that Act (small companies' exemption).

(2)The directors of the company shall cause a report to be prepared in accordance with section 130 and made to the company's members in respect of the company's individual accounts for any year in which the company takes advantage of its exemption from audit.

(3)Individual accounts” has the same meaning as in section 396 of the Companies Act 2006.

Commencement Information

I78S. 129 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

130Exempt companies: accountant's reportE+W

(1)The report required by section 129 must be prepared by a person (“the reporting accountant”) who is eligible under section 131.

(2)The report must state whether the individual accounts are in accordance with the company's accounting records kept under section 386 of the Companies Act 2006.

(3)On the basis of the information contained in the accounting records the report must also state whether—

(a)the accounts comply with Part 15 of the Companies Act 2006;

(b)the company is entitled to exemption from audit under section 477 of that Act (small companies' exemption) for the year in question.

(4)The report must give the name of the reporting accountant and be signed and dated.

(5)The report must be signed—

(a)where the reporting accountant is an individual, by that individual, and

(b)where the reporting accountant is a firm, for and on behalf of the firm by an individual authorised to do so.

(6)In this section and sections 131 and 132 “firm” has the meaning given by section 1173(1) of the Companies Act 2006.

Commencement Information

I79S. 130 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

131Exempt companies: reporting accountantE+W

(1)A person is eligible for appointment by a company as a reporting accountant under section 130 if—

(a)either of the following conditions is satisfied, and

(b)the person would not be prohibited from acting as auditor of the company by virtue of section 1214 of the Companies Act 2006 (c. 46).

(2)Condition 1 is satisfied if the person is a member of a body listed in subsection (4) and under its rules—

(a)the person is entitled to engage in public practice, and

(b)is not ineligible for appointment as a reporting accountant.

(3)Condition 2 is satisfied if the person—

(a)is subject to the rules of a body listed in subsection (4) in seeking appointment or acting as a statutory auditor under Part 42 of the Companies Act 2006, and

(b)under those rules, is eligible for appointment as a statutory auditor under that Part.

(4)The bodies mentioned in subsections (2) and (3) are—

(a)the Institute of Chartered Accountants in England and Wales,

(b)the Institute of Chartered Accountants of Scotland,

(c)the Institute of Chartered Accountants in Ireland,

(d)the Association of Chartered Certified Accountants,

(e)the Association of Authorised Public Accountants,

(f)the Association of Accounting Technicians,

(g)the Association of International Accountants,

(h)the Chartered Institute of Management Accountants, and

(i)the Institute of Chartered Secretaries and Administrators.

(5)The Secretary of State may by order amend the list of bodies in subsection (4).

(6)References in this section to the rules of a body are to rules (whether or not laid down by the body itself) which the body has power to enforce and which are relevant for the purposes of Part 42 of the Companies Act 2006 (statutory auditors) or this section; and this includes rules relating to the admission and expulsion of members of the body so far as relevant for the purposes of that Part or this section.

(7)An individual or a firm may be appointed as a reporting accountant; and section 1216 of the Companies Act 2006 applies to the appointment of a partnership constituted under the law of—

(a)England and Wales,

(b)Northern Ireland, or

(c)any other country or territory in which a partnership is not a legal person.

Commencement Information

I80S. 131(1)-(4) (6) (7) in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

I81S. 131(5) in force at 8.9.2008 by S.I. 2008/2358, art. 3(1)

132Application of Companies ActE+W

(1)The provisions of the Companies Act 2006 listed in subsection (2) apply to the reporting accountant and a reporting accountant's report as they apply to an auditor of the company and an auditor's report on the company's accounts (with any necessary modifications).

(2)The provisions are—

(a)sections 423 to 425 (duty to circulate copies of annual accounts),

(b)sections 431 and 432 (right of member or debenture holder to demand copies of accounts),

(c)sections 434 to 436 (requirements in connection with publication of accounts),

(d)sections 441 to 444A (duty to file accounts with registrar of companies),

(e)section 454(4)(b) and regulations made under that provision (functions of auditor in relation to revised accounts),

(f)sections 499 to 502 (auditor's right to information), and

(g)sections 505 and 506 (name of auditor to be stated in published copies of report).

(3)In sections 505 and 506 as they apply by virtue of this section in a case where the reporting accountant is a firm, any reference to the senior statutory auditor shall be read as a reference to the person who signed the report on behalf of the firm.

Commencement Information

I82S. 132 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

133Exempt companies: extraordinary auditE+W

(1)This section applies where, in accordance with section 129, a company appoints a reporting accountant to prepare a report in respect of its accounts for any year.

(2)The regulator may require the company to—

(a)cause a qualified auditor to audit its accounts and balance sheet for that year, and

(b)send a copy of the report to the regulator by a specified date.

(3)A requirement may not be imposed before the end of the financial year to which it relates.

(4)Qualified auditor”, in relation to a company, means a person who—

(a)is eligible for appointment as a statutory auditor of the company under Part 42 of the Companies Act 2006 (c. 46) (statutory auditors), and

(b)is not prohibited from acting as statutory auditor of the company by virtue of section 1214 of that Act (independence requirement).

Commencement Information

I83S. 133 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

134Non-audited [F89registered society]E+W

(1)This section applies to a registered provider which is [F9a registered society].

[F98(2) Section 85 of the Co-operative and Community Benefit Societies Act 2014 (“ the 2014 Act ”) (duty to obtain accountant's report) applies to the society as if subsection (1)(b) were omitted (accountant's report required only where turnover exceeds specified sum). ]

(3)The regulator may require the society to—

(a)appoint a qualified auditor to audit the society's accounts and balance sheet for any year of account in respect of which [F99section 83 of the 2014 Act (duty to appoint auditors) did not apply because of a resolution under section 84 of that Act (power to disapply auditing requirements),]

(b)send a copy of the auditor's report to the regulator by a specified date.

(4)A requirement under subsection (3) may be imposed only during the year of account following the year to which the accounts relate.

[F100(5)Qualified auditor” and “year of account” have the same meaning as in Part 7 of the 2014 Act (for “year of account” see sections 77 and 78 of that Act).]

Textual Amendments

F9Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 122 (with Sch. 5)

Commencement Information

I84S. 134 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

135CharityE+W

(1)This section applies to a non-profit registered provider which is a registered charity.

(2)The charity shall—

(a)keep proper accounting records of its transactions and its assets and liabilities in relation to its housing activities, and

(b)maintain a satisfactory system of control of those records, its cash holdings and its receipts and remittances in relation to those activities.

(3)For each period of account the charity shall prepare—

(a)a revenue account giving a true and fair view of the charity's income and expenditure during the period, so far as relating to its housing activities, and

(b)a balance sheet giving a true and fair view of the state of affairs of the charity as at the end of the period.

(4)The revenue account and balance sheet must be signed by at least two directors or trustees.

(5)Period of account” means—

(a)a period of 12 months, or

(b)such other period not less than 6 months nor more than 18 as the charity may, with the consent of the regulator, determine.

(6)This section does not affect any obligation under [F101Part 8 of the Charities Act 2011].

Textual Amendments

F101Words in s. 135(6) substituted (14.3.2012) by Charities Act 2011 (c. 25), s. 355, Sch. 7 para. 131 (with s. 20(2), Sch. 8)

Commencement Information

I85S. 135 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

136Charity: auditE+W

(1)This section applies in relation to the accounts of a charity under section 135(3).

(2)If Condition 1 or 2 is met, the charity shall cause a qualified person to audit the accounts and report on them in accordance with section 137.

(3)If neither Condition is met, the charity shall cause a qualified person (“the reporting accountant”) to report on the accounts in accordance with section 138.

(4)Condition 1 is met if the accounts relate to a period during which the charity's gross income arising in connection with its housing activities was greater than the sum specified in [F102section 144(1)(a) of the Charities Act 2011].

(5)Condition 2 is met if—

(a)the accounts relate to a period during which the charity's gross income arising in connection with its housing activities was greater than the accounts threshold as defined by [F103section 144(1) of the Charities Act 2011,] and

(b)at the end of the period the aggregate value of its assets (before deduction of liabilities) in respect of its housing activities was greater than the sum specified in [F104section 144(1)(b)].

(6)Gross income” has the same meaning as in [F105section 144 of the Charities Act 2011].

(7)Qualified person” means a person professionally qualified as an accountant.

Textual Amendments

F102Words in s. 136(4) substituted (14.3.2012) by Charities Act 2011 (c. 25), s. 355, Sch. 7 para. 132(a) (with s. 20(2), Sch. 8)

F103Words in s. 136(5)(a) substituted (14.3.2012) by Charities Act 2011 (c. 25), s. 355, Sch. 7 para. 132(b) (with s. 20(2), Sch. 8)

F104Words in s. 136(5)(b) substituted (14.3.2012) by Charities Act 2011 (c. 25), s. 355, Sch. 7 para. 132(c) (with s. 20(2), Sch. 8)

F105Words in s. 136(6) substituted (14.3.2012) by Charities Act 2011 (c. 25), s. 355, Sch. 7 para. 132(d) (with s. 20(2), Sch. 8)

Commencement Information

I86S. 136 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

137Charity: auditor's reportE+W

(1)An auditor appointed for the purposes of section 136(2) or 139(2) in respect of a charity's accounts shall make a report to the charity in accordance with this section.

(2)The report must state—

(a)whether the revenue account gives a true and fair view of the charity's income and expenditure, so far as relating to its housing activities, and

(b)whether the balance sheet gives a true and fair view of the state of affairs of the charity as at the end of the period to which the accounts relate.

(3)The report must give the name of the auditor and be signed.

(4)The auditor shall, in preparing the report, carry out such investigations as are necessary to form an opinion as to—

(a)whether the charity has complied with section 135(2) during the period to which the accounts relate, and

(b)whether the accounts are in accordance with accounting records kept under section 135(2)(a).

(5)If the auditor thinks that the charity has not complied section 135(2) or that the accounts are not in accordance with its accounting records, that must be stated in the report.

(6)If the auditor fails to obtain all the information and explanations which the auditor thinks necessary for the purposes of the audit, that must be stated in the report.

Commencement Information

I87S. 137 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

138Charity: accountant's reportE+W

(1)A reporting accountant appointed for the purposes of section 136(3) in respect of a charity's accounts shall make a report to the charity in accordance with this section.

(2)The report must state whether the accounts are in accordance with accounting records kept under section 135(2)(a).

(3)On the basis of the information in the accounting records the report must also state whether—

(a)the accounts comply with the requirements of [F106the Charities Act 2011];

(b)section 136(3) applied in respect of the accounts.

(4)The report must give the name of the reporting accountant and be signed.

(5)If the reporting accountant fails to obtain all the information and explanations which the reporting accountant thinks necessary for the purposes of preparing the report, that must be stated in the report.

Textual Amendments

F106Words in s. 138(3)(a) substituted (14.3.2012) by Charities Act 2011 (c. 25), s. 355, Sch. 7 para. 133 (with s. 20(2), Sch. 8)

Commencement Information

I88S. 138 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

139Charity: extraordinary auditE+W

(1)This section applies where, in accordance with section 136(3), a charity appoints a reporting accountant to prepare a report in respect of any accounts.

(2)The regulator may require the charity to—

(a)cause a qualified person to audit the accounts and prepare a report on them in accordance with section 137, and

(b)send a copy of the report to the regulator by a specified date.

(3)A requirement under subsection (2) may be imposed only during the period of account following the period to which the accounts relate.

(4)In this section—

  • period of account” has the meaning given by section 135(5), and

  • qualified person” has the meaning given by section 136(7).

Commencement Information

I89S. 139 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

140Charity: auditor's powersE+W

(1)This section applies to a person who is appointed by a charity for the purposes of section 136(2) or (3) or 139(2).

(2)The charity must grant the person access to its documents, if or in so far as they relate to its housing activities.

(3)An officer of the charity must provide such information or explanations as the person thinks necessary.

Commencement Information

I90S. 140 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

141OffencesE+W

(1)A [F107private registered provider] commits an offence if it fails, without reasonable excuse, to comply with—

(a)a direction under section 127,

(b)a provision listed in subsection (2), or

(c)a requirement imposed under a provision listed in subsection (3).

(2)The provisions referred to in subsection (1)(b) are—

(a)section 128;

(b)section 129;

(c)section 135;

(d)section 136.

(3)The provisions referred to in subsection (1)(c) are—

(a)section 133;

(b)section 134;

(c)section 139.

(4)If a [F107private registered provider] fails to comply with a direction, provision or requirement mentioned in subsection (1) every officer of the [F107private registered provider] is guilty of an offence.

(5)It is a defence for an officer to show that the officer did everything that could reasonably have been expected to ensure compliance by the [F107private registered provider].

(6)A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(7)Proceedings for an offence may be brought only by or with the consent of—

(a)the regulator, or

(b)the Director of Public Prosecutions.

Textual Amendments

Commencement Information

I91S. 141 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

142High CourtE+W

(1)If a [F108private registered provider] fails to comply with a direction, provision or requirement mentioned in section 141(1), the High Court may on the application of the regulator make an order for the purpose of remedying the failure.

(2)An order may include provision about costs.

Textual Amendments

Commencement Information

I92S. 142 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

143DisclosureE+W

(1)This section applies to information that a person has received while acting—

(a)as auditor of a [F109private registered provider], or

(b)as a reporting accountant in relation to a [F110private registered provider].

(2)The person may disclose the information to the regulator for a purpose connected with the regulator's functions—

(a)despite any duty of confidentiality, and

(b)whether or not the regulator requests the information.

(3)The reference to disclosing information includes expressing an opinion on it.

(4)Reporting accountant” means a person who is appointed to prepare a report which, by virtue of any enactment, has to be prepared in respect of accounts that are not subject to audit.

Textual Amendments

Commencement Information

I93S. 143 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

Insolvency etc.E+W

[F111143AApplication of rules about insolvencyE+W

This group of sections does not apply to local authorities.]

F112144Preparatory steps: noticeE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

[F113145MoratoriumE+W

A moratorium on the disposal of land by a private registered provider begins if a notice is given to the regulator under any of the following provisions of the Housing and Planning Act 2016—

(a)section 104(2)(a) (notice of winding up petition);

(b)section 105(4)(a) (notice of application for permission to pass a resolution for voluntary winding up);

(c)section 106(3)(a) (notice of ordinary administration application);

(d)section 107(4)(a) (notice of appointment of ordinary administrator);

(e)section 108(2)(a) (notice of intention to enforce security).]

146Duration of moratoriumE+W

[F114(1)The moratorium begins when the notice mentioned in section 145 is given.]

[F114(2)The moratorium ends when one of the following occurs—

(a)the expiry of the relevant period,

(b)the making of a housing administration order under Chapter 5 of Part 4 of the Housing and Planning Act 2016 in relation to the registered provider, or

(c)the cancellation of the moratorium (see subsection (5)).]

[F114(2A)The “relevant period” is—

(a)the period of 28 days beginning with the day on which the notice mentioned in section 145 is given, plus

(b)any period by which that period is extended under subsection (3).]

(3)During a moratorium the regulator may extend it (or further extend it) for a specified period, with the consent of each secured creditor of the registered provider whom the regulator is able to locate after making reasonable enquiries.

(4)If the regulator extends a moratorium it shall notify—

(a)the registered provider, [F115and]

(b)any liquidator, administrator, administrative receiver or receiver appointed in respect of the registered provider or its land, F116...

F117(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F118(4A)If the regulator extends a moratorium in respect of a private registered provider who owns land in Greater London, the regulator shall also notify the Greater London Authority.]

(5)During a moratorium the regulator may cancel it if satisfied that it is unnecessary to make proposals under section 152.

F119(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7)When a moratorium ends the regulator shall give notice, and (except in the case of cancellation) an explanation of section 147, to—

(a)the registered provider, and

(b)such of its secured creditors as the regulator is able to locate after making reasonable enquiries.

[F120(7A)The regulator shall also notify the HCA as follows—

(a)if it extends a moratorium, and

(b)when a moratorium ends.]

F121(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F122(8A)When a moratorium in respect of a private registered provider who owns land in Greater London ends, the regulator shall also give notice to the Greater London Authority.]

[F123(9)If a notice mentioned in section 145 is given during a moratorium, that does not—

(a)start a new moratorium, or

(b)alter the existing moratorium's duration.]

Textual Amendments

F114S. 146(1)-(2A) substituted for s. 146(1) (5.7.2018) by Housing and Planning Act 2016 (c. 22), s. 216(3), Sch. 6 para. 4(2); S.I. 2018/805, reg. 3(c) (with reg. 4)

F116Word in s. 146(4)(b) repealed (1.4.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 25 Pt. 26; S.I. 2012/628, art. 6(j) (with arts. 9 11 14 15 17)

Commencement Information

I94S. 146 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

147Further moratoriumE+W

(1)This section applies if—

(a)a moratorium in respect of a [F124private registered provider] ends otherwise than by cancellation, and

(b)a further [F125notice mentioned in section 145 is given] in relation to the provider within the period of 3 years beginning with the end of the moratorium.

(2)The further [F126notice] does not automatically trigger a further moratorium.

(3)But the regulator may impose a further moratorium for a specified period, if each secured creditor of the registered provider whom the regulator is able to locate after making reasonable enquiries consents.

(4)If the regulator imposes a new moratorium it shall notify—

[F127(za)the HCA,]

(a)the registered provider,[F128and]

(b)any liquidator, administrator, administrative receiver or receiver appointed in respect of the registered provider or any of its land, F129...

F130(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F131(4A)If the regulator imposes a new moratorium in respect of a private registered provider who owns land in Greater London, the regulator shall also notify the Greater London Authority.]

(5)This group of sections applies to a further moratorium as to a first moratorium (except for section 146(2)).

148Effect of moratoriumE+W

(1)During a moratorium [F132neither] the HCA [F133, nor the Greater London Authority, may]

(a)F134... give the registered provider a direction under section 32(4), [F135or]

(b)F136... take steps to enforce such a direction against the registered provider.

(2)During a moratorium a disposal of the registered provider's land requires the regulator's prior consent.

(3)Section 149 sets out exceptions to subsection (2).

(4)Consent—

(a)may be given before the moratorium begins, and

(b)may be subject to conditions.

(5)This section does not prevent a liquidator from disclaiming land as onerous property during a moratorium.

(6)In this section “land” includes a present or future interest in rent or other receipts arising from land.

Textual Amendments

F135Word in s. 148(1) substituted (1.4.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 19 para. 52(d); S.I. 2012/628, art. 6(i) (with arts. 9 11 14 15 17)

Commencement Information

I96S. 148 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

149Exempted disposalsE+W

(1)The regulator's consent is not required under section 148 for the following exceptions.

(2)Exception 1 is a letting under—

(a)an assured tenancy, or

(b)an assured agricultural occupancy.

(3)Exception 2 is a letting under what would be an assured tenancy or an assured agricultural occupancy but for any of paragraphs 4 to 8, 12(1)(h) and 12ZA to 12B of Schedule 1 to the Housing Act 1988 (c. 50) (tenancies which cannot be assured tenancies).

(4)Exception 3 is a letting under a secure tenancy.

(5)Exception 4 is a letting under what would be a secure tenancy but for any of paragraphs 2 to 12 of Schedule 1 to the Housing Act 1985 (c. 68) (tenancies which are not secure tenancies).

F137(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7)Exception [F1385] is a disposal under Part V of the Housing Act 1985 (right to buy).

(8)Exception [F1396] is a disposal under the right conferred by—

(a)section 180, F140...

F140(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F140S. 149(8)(b) and preceding word omitted (26.1.2019) by virtue of Abolition of the Right to Buy and Associated Rights (Wales) Act 2018 (anaw 1), s. 11(3)(4), Sch. 1 para. 6(4); S.I. 2018/100, art. 2(b) (with art. 3) (with savings in S.I. 2019/110, reg. 5)

Commencement Information

I97S. 149 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

150Disposals without consentE+W

(1)A purported disposal by a registered provider is void if—

(a)it requires the regulator's consent under section 148, and

(b)the regulator has not given consent.

(2)But subsection (1) does not apply to a disposal by a non-profit registered provider to one or more individuals (“the buyer”) if—

(a)the disposal is of a single dwelling, and

(b)the registered provider reasonably believes at the time of the disposal that the buyer intends to use the property as the buyer's principal residence.

Commencement Information

I98S. 150 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

151Interim managerE+W

(1)During a moratorium the regulator may appoint an interim manager of the registered provider.

(2)An appointment may relate to the registered provider's affairs generally or to affairs specified in the appointment.

(3)Appointment shall be on terms and conditions (including as to remuneration) specified in, or determined in accordance with, the appointment.

(4)An appointment under this section shall come to an end with the earliest of the following—

(a)the end of the moratorium,

(b)the agreement of proposals under section 152, or

(c)a date specified in the appointment.

(5)An interim manager shall have—

(a)any power specified in the appointment, and

(b)any other power in relation to the registered provider's affairs required by the manager for the purposes specified in the appointment (including the power to enter into agreements and take other action on behalf of the registered provider).

(6)But an interim manager may not—

(a)dispose of land, or

(b)grant security over land.

Commencement Information

I99S. 151 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

152ProposalsE+W

(1)During a moratorium the regulator may make proposals about the future ownership and management of the registered provider's land, with a view to ensuring that the property will be properly managed by a registered provider.

(2)In making proposals the regulator shall—

(a)have regard to the interests of the registered provider's creditors as a whole, and

(b)so far as is reasonably practicable avoid worsening the position of unsecured creditors.

(3)Proposals may provide for the appointment of a manager in accordance with section 155 to implement all or part of the proposals.

(4)Proposals may not include anything which would result in—

(a)a preferential debt being paid otherwise than in priority to a non-preferential debt, F141...

[F142(aa)an ordinary preferential debt being paid otherwise than in priority to a secondary preferential debt,]

(b)a preferential creditor (PC1) being paid a smaller proportion of [F143an ordinary preferential debt] than another preferential creditor (PC2) (unless PC1 consents) F144...

[F145(c)a preferential creditor (PC1) being paid a smaller proportion of a secondary preferential debt than another preferential creditor (PC2) (unless PC2 consents)] [F146or]

[F146(d)if the registered provider is a relevant financial institution—

(i)an ordinary non-preferential debt being paid otherwise than in priority to a secondary non-preferential debt,

(ii)a secondary non-preferential debt being paid otherwise than in priority to a tertiary non-preferential debt, or

(iii)a secondary non-preferential creditor (Creditor 1) being paid a smaller proportion of a secondary non-preferential debt than another secondary non-preferential creditor (Creditor 2) (unless Creditor 1 consents).]

(5)Proposals relating to a registered provider which is a charity (C1)—

(a)may not require it to act outside the terms of its trusts, and

(b)may provide for the disposal of accommodation only to another charity whose objects the regulator thinks are similar to those of C1.

Textual Amendments

Modifications etc. (not altering text)

C2S. 152 modified (28.12.2020 until IP completion day when the amending provision ceases to have effect in accordance with reg. 1(4) of the amending S.I.) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(4), 124(a) (with reg. 108)

Commencement Information

I100S. 152 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

153Proposals: procedureE+W

(1)Before making proposals the regulator shall consult—

(a)the registered provider,

(b)its tenants (so far as is reasonably practicable),

(c)if the registered provider is [F9a registered society], the [F147Financial Conduct Authority], and

(d)if the registered provider is a registered charity, the Charity Commission.

(2)The regulator shall send a copy of proposals to—

(a)the registered provider and its officers,

(b)such of its secured creditors as the regulator is able to locate after making reasonable enquiries, and

(c)any liquidator, administrator, administrative receiver or receiver appointed in respect of the registered provider or any of its land.

(3)The regulator shall also make arrangements for bringing proposals to the attention of—

(a)the registered provider's members,

(b)its tenants, and

(c)its unsecured creditors.

(4)If each secured creditor to whom proposals were sent agrees to the proposals by notice to the regulator, the proposals have effect.

(5)Proposals may be agreed with modifications if—

(a)each secured creditor to whom the proposals were sent consents by notice to the regulator, and

(b)the regulator consents.

(6)The regulator shall send a copy of agreed proposals to—

(a)the registered provider and its officers,

(b)its secured creditors to whom the original proposals were sent,

(c)any liquidator, administrator, administrative receiver or receiver appointed in respect of the registered provider or any of its land,

(d)if the registered provider is [F9a registered society], the [F148Financial Conduct Authority], and

(e)if the registered provider is a registered charity, the Charity Commission.

(7)The regulator shall also make arrangements for bringing agreed proposals to the attention of—

(a)the registered provider's members,

(b)its tenants, and

(c)its unsecured creditors.

(8)Proposals may be amended by agreement between the secured creditors to whom the original proposals were sent and the regulator; and this section and section 152 apply to an amendment as to the original proposals.

Textual Amendments

F9Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 122 (with Sch. 5)

Commencement Information

I101S. 153 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

154Proposals: effectE+W

(1)The following are obliged to implement agreed proposals—

(a)the regulator,

(b)the registered provider,

(c)its creditors, and

(d)any liquidator, administrator, administrative receiver or receiver appointed in respect of the registered provider or any of its land.

(2)The following shall co-operate with implementation of agreed proposals—

(a)in the case of a charitable trust, its trustees,

[F149(aa)in the case of a charitable incorporated organisation, its charity trustees (as defined by section 177 of the Charities Act 2011),]

(b)in the case of [F9a registered society], its committee members, and

(c)in the case of a registered company, its directors.

(3)Subsection (2) does not require or permit a breach of a fiduciary or other duty.

Textual Amendments

F9Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 122 (with Sch. 5)

Commencement Information

I102S. 154 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

155Manager: appointmentE+W

(1)This section applies where agreed proposals provide for the appointment of a manager.

(2)The proposals must provide for the manager to be paid reasonable remuneration and expenses.

(3)The regulator shall appoint a manager.

(4)The regulator may give the manager directions (general or specific).

(5)The manager may apply to the High Court for directions (and directions of the regulator are subject to directions of the High Court).

(6)If the registered provider is a charity, the regulator must notify the Charity Commission that a manager has been appointed.

(7)The regulator may appoint a new manager in place of a person who ceases to be manager (in accordance with terms of appointment specified in the proposals or determined by the regulator).

Commencement Information

I103S. 155 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

156Manager: powersE+W

(1)A manager—

(a)may do anything necessary for the purpose of the appointment,

(b)acts as the registered provider's agent (and is not personally liable on a contract), and

(c)has ostensible authority to act for the registered provider (so that a person dealing with the manager in good faith and for value need not inquire into the manager's powers).

(2)In particular, the terms of a manager's appointment may confer power—

(a)to sell or otherwise dispose of land by public auction or private contract;

(b)to raise or borrow money;

(c)to grant security over land;

(d)to grant or accept surrender of a lease;

(e)to take a lease;

(f)to take possession of property;

(g)to appoint a solicitor, accountant or other professional to assist the manager;

(h)to appoint agents and staff (and to dismiss them);

(i)to make payments;

(j)to bring or defend legal proceedings;

(k)to refer a question to arbitration;

(l)to make any arrangement or compromise;

(m)to carry on the business of the registered provider;

(n)to carry out works and do other things in connection with the management or transfer of land;

(o)to take out insurance;

(p)to use the registered body's seal;

(q)to execute in the name and on behalf of the registered provider any deed, receipt or other document;

(r)to do anything incidental to a power in paragraphs (a) to (q).

(3)A manager shall so far as is reasonably practicable consult and inform the registered provider's tenants about an exercise of powers likely to affect them.

Commencement Information

I104S. 156 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

157Manager of [F89registered society]: extra powersE+W

(1)This section applies to a manager appointed to implement proposals relating to [F9a registered society].

(2)The appointment may confer on the manager power to make and execute on behalf of the society—

(a)an instrument providing for the amalgamation of the society with another [F89registered society], or

(b)an instrument transferring its engagements.

(3)An instrument providing for the amalgamation of a society (“S1”) with another has the same effect as a resolution by S1 under [F150section 109 of the Co-operative and Community Benefit Societies Act 2014] (amalgamation of societies by special resolution).

(4)An instrument transferring engagements has the same effect as a transfer of engagements under [F151section 110 or 112 of the Co-operative and Community Benefit Societies Act 2014] (transfer by special resolution to another society or company).

(5)A copy of the instrument shall be sent to and registered by the [F152Financial Conduct Authority].

(6)An instrument does not take effect until the copy is registered.

(7)The copy must be sent for registration during the period of 14 days beginning with the date of execution; but a copy registered after that period is valid.

Textual Amendments

F9Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 122 (with Sch. 5)

Commencement Information

I105S. 157 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

158Assistance by regulatorE+W

(1)The regulator may give financial or other assistance to [F153the registered provider] for the purpose of preserving its position pending the agreement of proposals.

(2)The regulator may give financial or other assistance to [F154the registered provider], or a manager appointed under section 155, to facilitate the implementation of agreed proposals.

(3)In particular, the regulator may—

(a)lend staff;

(b)arrange payment of the manager's remuneration and expenses.

(4)The regulator may do the following only with the Secretary of State's consent—

(a)make grants,

(b)make loans,

(c)indemnify a manager,

(d)make payments in connection with secured loans, and

(e)guarantee payments in connection with secured loans.

159Applications to courtE+W

(1)[F155A private registered provider] may apply to the High Court where the registered provider thinks that action taken by a manager is not in accordance with the agreed proposals.

(2)A creditor of [F156a private registered provider] may apply to the High Court where the creditor thinks that action taken by a manager is not in accordance with the agreed proposals.

(3)The High Court may—

(a)confirm, annul or modify an act of the manager;

(b)give the manager directions;

(c)make any other order.

(4)If a person bound by agreed proposals (P1) thinks that action by another person (P2) breaches section 154, P1 may apply to the High Court.

(5)The High Court may—

(a)confirm, annul or modify the action;

(b)grant relief by way of injunction, damages or otherwise.

Restructuring and dissolutionE+W

[F157159AApplication of rules about restructuring and dissolutionE+W

This group of sections does not apply to local authorities.]

[F158160Company: arrangements and reconstructionsE+W

(1)This section applies to a non-profit registered provider which is a registered company.

(2)The registered provider must notify the regulator of any voluntary arrangement under Part 1 of the Insolvency Act 1986.

(3)The registered provider must notify the regulator of any order under section 899 of the Companies Act 2006 (court sanction for compromise or arrangement).

(4)An order under section 899 of Companies Act 2006 does not take effect until the registered provider has confirmed to the registrar of companies that the regulator has been notified.

(5)The registered provider must notify the regulator of any order under section 900 of the Companies Act 2006 (powers of court to facilitate reconstruction or amalgamation).

(6)The requirement in section 900(6) of the Companies Act 2006 (sending copy of order to registrar) is satisfied only if the copy is accompanied by confirmation that the regulator has been notified.

[F159(7)The registered provider must notify the regulator of any order under section 901F of the Companies Act 2006 (court sanction for compromise or arrangement).

(8)An order under section 901F of the Companies Act 2006 does not take effect until the registered provider has confirmed to the registrar of companies that the regulator has been notified.

(9)The registered provider must notify the regulator of any order under section 901J of the Companies Act 2006 (powers of court to facilitate reconstruction or amalgamation).

(10)The requirement in section 901J(6) of the Companies Act 2006 (sending copy of order to registrar) is satisfied only if the copy is accompanied by confirmation that the regulator has been notified.]]

[F160161Company: conversion into registered societyE+W

(1)This section applies to a non-profit registered provider which is a registered company.

(2)The registered provider must notify the regulator of any resolution under section 115 of the Co-operative and Community Benefit Societies Act 2014 for converting the registered provider into a registered society.

(3)The registrar of companies may register a resolution under that section only if the registered provider has confirmed to the registrar that the regulator has been notified.

(4)The regulator must decide whether the new body is eligible for registration under section 112.

(5)If the new body is eligible for registration, the regulator must register it and designate it as a non-profit organisation.

(6)If the new body is not eligible for registration, the regulator must notify it of that fact.

(7)Pending registration, or notification that it is not eligible for registration, the new body is to be treated as if it were registered and designated as a non-profit organisation.]

Textual Amendments

F161162Company: winding upE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

[F162163Registered society: restructuringE+W

(1)This section applies to a non-profit registered provider which is a registered society.

(2)The registered provider must notify the regulator of any resolution passed by the society for the purposes of the restructuring provisions listed in subsection (4).

(3)The Financial Conduct Authority may register the resolution only if the registered provider has confirmed to the Financial Conduct Authority that the regulator has been notified.

(4)The following provisions of the Co-operative and Community Benefit Societies Act 2014 are the restructuring provisions—

(a)section 109 (amalgamation of societies);

(b)section 110 (transfer of engagements between societies);

(c)section 112 (conversion of society into a company etc).

(5)The regulator must decide whether the body created or to whom engagements are transferred (“the new body”) is eligible for registration under section 112.

(6)If the new body is eligible for registration, the regulator must register it and designate it as a non-profit organisation.

(7)If the new body is not eligible for registration, the regulator must notify it of that fact.

(8)Pending registration, or notification that it is not eligible for registration, the new body is to be treated as if it were registered and designated as a non-profit organisation.]

Textual Amendments

F163164Registered society: winding upE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

165[F89Registered society]: dissolutionE+W

(1)This section applies to a non-profit registered provider which is—

(a)[F9a registered society], and

(b)to be dissolved by instrument of dissolution in accordance with [F164section 119 of the Co-operative and Community Benefit Societies Act 2014.]

[F165(2)The registered provider must notify the regulator.

(3)The Financial Conduct Authority may register the instrument under section 121 of that Act, or cause notice of the dissolution to be advertised under section 122 of that Act, only if the registered provider has confirmed to the Financial Conduct Authority that the regulator has been notified.]

Textual Amendments

F9Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 122 (with Sch. 5)

F165S. 165(2)(3) substituted for s. 165(2) (6.4.2017) by Housing and Planning Act 2016 (c. 22), s. 216(3), Sch. 4 para. 27; S.I. 2017/75, reg. 4

Commencement Information

I108S. 165 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

F166166Winding up petition by regulatorE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

167Transfer of propertyE+W

(1)This section applies—

(a)where a non-profit registered provider which is [F9a registered society] is dissolved in accordance with [F167section 119 or 123 of the Co-operative and Community Benefit Societies Act 2014], and

(b)where a non-profit registered provider which is a registered company is wound up under the Insolvency Act 1986.

(2)Any surplus property that is available after satisfying the registered provider's liabilities shall be transferred—

(a)to the regulator, or

(b)if the regulator directs, to a specified non-profit registered provider.

(3)If land belonging to the registered provider needs to be sold to satisfy its liabilities, the regulator may discharge those liabilities so as to ensure that the land is instead transferred in accordance with subsection (2).

(4)Where the registered provider dissolved or wound up is a charity, a registered provider may be specified under subsection (2)(b) only if it is a charity whose objects the regulator thinks are similar to those of the original charity.

(5)This section has effect despite anything in—

F168(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)the Insolvency Act 1986,

(c)the Companies Act 2006 (c. 46),

[F169(ca)the Co-operative and Community Benefit Societies Act 2014,] or

(d)the constitution of a registered provider.

Textual Amendments

F9Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 122 (with Sch. 5)

Commencement Information

I109S. 167 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

168Section 167: supplementalE+W

(1)This section applies to property transferred to the regulator in accordance with section 167(2)(a).

(2)The regulator may dispose of the property only to a non-profit registered provider.

(3)Where the registered provider wound up or dissolved was a charity, the regulator may dispose of the property only to a registered provider—

(a)which is a charity, and

(b)whose objects the regulator thinks are similar to those of the original charity.

(4)If the property includes land subject to a mortgage or charge, the regulator may dispose of the land—

(a)subject to that mortgage or charge, or

(b)subject to a new mortgage or charge in favour of the regulator.

Commencement Information

I110S. 168 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

169Extension of sections 167 and 168E+W

The Secretary of State may by regulations provide for sections 167 and 168 to apply in relation to a registered provider which is a charity but not a registered company—

(a)in specified circumstances, and

(b)with specified modifications.

Commencement Information

I111S. 169 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

[F170Notification of constitutional changesE+W

Textual Amendments

F170Ss. 169A-169D and cross-headings inserted (6.4.2017) by Housing and Planning Act 2016 (c. 22), s. 216(3), Sch. 4 para. 29; S.I. 2017/75, reg. 4

169ARegistered societies: change of rulesE+W

A non-profit registered provider that is a registered society must notify the regulator of any change to the society's rules.

169BCharity: change of objectsE+W

The trustees of a registered charity that is a non-profit registered provider must notify the regulator of any amendment to the charity's objects.

169CCompanies: change of articles etcE+W

A non-profit registered provider that is a registered company must notify the regulator of—

(a)any amendment of the company's articles of association,

(b)any change to its name or registered office.]

[F170Directions about notificationsE+W

169DDirections about notificationsE+W

(1)The regulator may give directions about—

(a)the period within which notifications under sections 160 to 165 or 169A to 169C must be given by private registered providers;

(b)the content of those notifications.

(2)The regulator may give directions dispensing with notification requirements imposed by sections 160 to 165 or 169A to 169C.

(3)A direction under this section may be—

(a)general, or

(b)specific (whether as to particular registered providers, particular kinds of notification requirement or in any other way).

(4)A direction dispensing with a notification requirement may include conditions.

(5)The regulator must make arrangements for bringing a direction under this section to the attention of every registered provider to which it applies.]

Chapter 5E+WDisposal of property[F171by private registered providers]

IntroductoryE+W

170OverviewE+W

This Chapter makes provision about the disposal of property by [F172private registered providers].

Textual Amendments

Commencement Information

I112S. 170 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

171Power to disposeE+W

(1)A [F173private registered provider] may dispose of land.

(2)But a non-profit registered provider may dispose of the landlord's interest under a secure tenancy only to another non-profit registered provider [F174or to a local authority which is a registered provider].

(3)Subsection (1) is subject to the following provisions of this Chapter F175....

[F176Notification of regulator]E+W

Textual Amendments

F177172Requirement of consentE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F177Ss. 172-175 omitted (6.4.2017) by virtue of Housing and Planning Act 2016 (c. 22), s. 216(3), Sch. 4 para. 15; S.I. 2017/75, reg. 4 (with reg. 6)

F177173ExceptionsE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F177Ss. 172-175 omitted (6.4.2017) by virtue of Housing and Planning Act 2016 (c. 22), s. 216(3), Sch. 4 para. 15; S.I. 2017/75, reg. 4 (with reg. 6)

F177174ProcedureE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F177Ss. 172-175 omitted (6.4.2017) by virtue of Housing and Planning Act 2016 (c. 22), s. 216(3), Sch. 4 para. 15; S.I. 2017/75, reg. 4 (with reg. 6)

F177175Disposal without consentE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F177Ss. 172-175 omitted (6.4.2017) by virtue of Housing and Planning Act 2016 (c. 22), s. 216(3), Sch. 4 para. 15; S.I. 2017/75, reg. 4 (with reg. 6)

[F178176Notification where disposal consent not requiredE+W

(1)If a private registered provider disposes of a dwelling that is social housing it must notify the regulator.

(2)If a non-profit registered provider disposes of land other than a dwelling it must notify the regulator.

(3)Subsection (1) continues to apply to any land of a private registered provider even if it has ceased to be a dwelling.

(4)The regulator may give directions about—

(a)the period within which notifications under subsection (1) or (2) must be given;

(b)the content of those notifications.

(5)The regulator may give directions dispensing with the notification requirement in subsection (1) or (2).

(6)A direction under this section may be—

(a)general, or

(b)specific (whether as to particular registered providers, as to particular property, as to particular forms of disposal or in any other way).

(7)A direction dispensing with a notification requirement—

(a)may be expressed by reference to a policy for disposals submitted by a registered provider;

(b)may include conditions.

(8)The regulator must make arrangements for bringing a direction under this section to the attention of every registered provider to which it applies.]

Textual Amendments

F179. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W

Textual Amendments

F179S. 177 cross-heading omitted (6.4.2017) by virtue of Housing and Planning Act 2016 (c. 22), s. 216(3), Sch. 4 para. 33(b); S.I. 2017/75, reg. 4 (with reg. 7)

F180177Separate accountingE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F180178Use of proceedsE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F181. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W

Textual Amendments

F181S. 179 and cross-heading omitted (6.4.2017) by virtue of Housing and Planning Act 2016 (c. 22), s. 216(3), Sch. 4 para. 17; S.I. 2017/75, reg. 4

F181179Application of Housing Act 1996E+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Right to acquireE+W

180Right to acquireE+W

(1)The tenant of a dwelling in England has a right to acquire the dwelling if—

(a)the landlord is a [F182private registered provider] or a registered social landlord,

(b)the tenancy is within subsection (2),

(c)the provision of the dwelling was publicly funded,

(d)the dwelling has remained in the social rented sector ever since that provision, and

(e)the tenant satisfies any qualifying conditions applicable under Part V of the Housing Act 1985 (c. 68) (as it applies by virtue of section 184).

(2)A tenancy is within this subsection if it is—

(a)an assured tenancy, other than F183... a long tenancy, or

(b)a secure tenancy.

[F184(2A)The Secretary of State may by regulations provide that an assured shorthold tenancy of a description specified in the regulations is not a tenancy within subsection (2).]

(3)The reference in subsection (1)(a) to a [F185private registered provider] includes—

(a)a person who provided the dwelling in fulfilment of a condition imposed by the HCA when giving assistance to the person;

(b)a person who provided the dwelling wholly or partly by means of a grant under section 27A of the Housing Act 1996 (c. 52).

Textual Amendments

F183Words in s. 180(2)(a) repealed (15.1.2012 for specified purposes, 1.4.2012 in so far as not already in force) by Localism Act 2011 (c. 20), ss. 165(2), 240(2), Sch. 25 Pt. 23 (with s. 165(4)); S.I. 2012/57, art. 4(1)(r) (with arts. 6 7 9-11); S.I. 2012/628, art. 6(c) (with arts. 9 11 14 15 17)

F184S. 180(2A) inserted (15.1.2012 for specified purposes, 1.4.2012 in so far as not already in force) by Localism Act 2011 (c. 20), ss. 165(3), 240(2) (with s. 165(4)); S.I. 2012/57, art. 4(1)(r) (with arts. 6 7 9-11); S.I. 2012/628, art. 6(c) (with arts. 9 11 14 15 17)

Modifications etc. (not altering text)

Commencement Information

I114S. 180 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

181Interpretation: “publicly funded”E+W

(1)The provision of a dwelling was publicly funded if any of the following conditions is satisfied.

(2)Condition 1 is that—

(a)the dwelling was provided by a person in fulfilment of a condition imposed by the HCA when giving assistance to the person, and

(b)before giving the assistance the HCA notified the person that if it did so the provision of the dwelling would be regarded as publicly funded.

[F186(2A)Condition 2 is that—

(a)the dwelling was provided wholly or partly by a person using an amount for purposes for which the amount was required to be used by an HCA direction under section 32(4), and

(b)before giving the direction the HCA notified the person that any dwelling so provided would be regarded as publicly funded.]

(3)Condition [F1873] is that the dwelling was provided wholly or partly by using sums in the disposal proceeds fund of—

(a)a [F188private registered provider], or

(b)a registered social landlord.

[F189(3A)In relation to a private registered provider, the reference in subsection (3) to its disposal proceeds fund is to its disposal proceeds fund before the abolition of that fund by Part 3 of Schedule 4 to the Housing and Planning Act 2016.]

(4)Condition [F1904] is that —

(a)the dwelling was acquired by a [F191private registered provider], or a registered social landlord, on a disposal by a public sector landlord,

(b)the disposal was made on or after 1st April 1997, and

(c)at the time of the disposal the dwelling was capable of being let as a separate dwelling.

(5)Condition [F1904] is not satisfied if the dwelling was acquired in pursuance of a contract made, or option created, before 1st April 1997.

(6)Condition [F1925] is that—

(a)the dwelling was provided wholly or partly by means of a grant under section 18 or 27A of the Housing Act 1996 (c. 52), and

(b)when the grant was made the recipient was notified [F193by the Welsh Ministers] that the dwelling was to be regarded as funded by means of such a grant.

182Interpretation: “remained in the social rented sector”E+W

(1)This section applies for the purposes of determining whether a dwelling has remained in the social rented sector.

(2)A dwelling shall be treated as having remained in the social rented sector for any period during which—

(a)the freeholder was a person within subsection (3), and

(b)each leaseholder was either a person within that subsection or an individual holding otherwise than under a long tenancy.

(3)A person is within this subsection if the person is—

(a)a [F194private registered provider],

(b)a registered social landlord, or

(c)a public sector landlord.

(4)A dwelling provided wholly or partly by means of a grant under section 27A of the Housing Act 1996 shall also be treated as having remained in the social rented sector for any period during which it was used exclusively for permitted purposes by—

(a)the recipient of the grant, or

(b)any person treated as the recipient by virtue of section 27B of that Act.

(5)“Permitted purposes” are purposes for which the grant was made and any other purposes agreed by the Housing Corporation or the HCA.

(6)Where a lease of a dwelling has been granted to a former freeholder in pursuance of paragraph 3 of Schedule 9 to the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28) (mandatory leaseback to former freeholder on collective enfranchisement) the reference in subsection (1)(a) above to the freeholder shall be construed as a reference to the leaseholder under that lease.

Textual Amendments

Commencement Information

I116S. 182 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

183Interpretation: other expressionsE+W

(1)The definitions in this section apply to sections 180 to 182.

(2)The HCA gives “assistance” to a person if it—

(a)transfers housing or other land to the person,

(b)provides infrastructure to the person, or

(c)gives financial assistance to the person,

and for this purpose “infrastructure” has the same meaning as in Part 1.

(3)References to a “registered social landlord” are to a body which, at the time to which the reference relates, was a registered social landlord within the meaning of Part 1 of the Housing Act 1996 (c. 52) as it then had effect.

(4)Leaseholder” does not include a mortgagee.

(5)Long tenancy” has the same meaning as in Part V of the Housing Act 1985 (c. 68).

(6)A person provides a dwelling if the person—

(a)acquires, constructs, converts, improves or repairs housing or other land for use as a dwelling, or

(b)ensures such acquisition, construction, conversion, improvement or repair by another.

(7)Public sector landlord” means anyone falling within section 80(1) of the Housing Act 1985.

Commencement Information

I117S. 183 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

[F195184Right to acquire: supplementalE+W

(1)The Secretary of State may by order—

(a)specify the amount or rate of discount to be given on the exercise of the right conferred by section 180, and

(b)designate rural areas in relation to dwellings in which the right conferred by that section does not arise.

(2)The provisions of Part 5 of the Housing Act 1985 apply in relation to the right to acquire under section 180—

(a)subject to any order under subsection (1) above, and

(b)subject to such other exceptions, adaptations and other modifications as may be specified by regulations made by the Secretary of State.

(3)The regulations may provide—

(a)that the powers of the Secretary of State under sections 164 to 170 of that Act (powers to intervene, give directions or assist) do not apply,

(b)that paragraphs 1 and 3 (exceptions for charities and certain housing associations), and paragraph 11 (right of appeal to Secretary of State), of Schedule 5 to that Act do not apply,

(c)that the provisions of Part 5 of that Act relating to the right to acquire on rent to mortgage terms do not apply,

(d)that the provisions of that Part relating to restrictions on disposals in National Parks etc. do not apply, and

(e)that the provisions of that Part relating to the preserved right to buy do not apply.

Nothing in this subsection affects the generality of the power conferred by subsection (2).

(4)The specified exceptions, adaptations and other modifications shall take the form of textual amendments of the provisions of Part 5 of that Act as they apply in relation to the right to buy under that Part; and any consolidating regulations shall set out the provisions of Part 5 as they so apply.

(5)Before making an order which would have the effect that an area ceased to be designated under subsection (1)(b), the Secretary of State shall consult—

(a)the local housing authority or authorities in whose district the area or any part of it is situated or, if the order is general in its effect, local housing authorities in general, and

(b)such bodies appearing to the Secretary of State to be representative of private registered providers as the Secretary of State considers appropriate.

(6)Regulations made under this section are consolidating regulations if they are made for the purposes of consolidating other regulations that are being revoked in the instrument containing the consolidating regulations.]

Textual Amendments

Commencement Information

I118S. 184 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

F196185Right to acquire: consequential amendmentsE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

MiscellaneousE+W

186Former registered providersE+W

Where a person ceases to be a [F197private registered provider], sections 171 [F198and 176 (apart from section 176(2))] continue to apply in respect of any property owned by the person at any time when it was registered.

Textual Amendments

Commencement Information

I119S. 186 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

F199187Change of use, etc.E+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

188TrusteesE+W

Section 39 of the Settled Land Act 1925 (c. 18) (disposal by trustees: best price etc.) shall not apply to the disposal of land by a [F200private registered provider].

Textual Amendments

Commencement Information

I120S. 188 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

189CharitiesE+W

Nothing in this Chapter authorises a charity to effect a disposal which it would not otherwise have power to effect.

Commencement Information

I121S. 189 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

Consents under other legislationE+W

F201190Consent to disposals under other legislationE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

191Section 190: consequential amendmentsE+W

(1)In section 171D of the Housing Act 1985 (consent to certain disposals of housing obtained subject to the preserved right to buy)—

(a)in subsection (2) (consent) for “Secretary of State” substitute “ appropriate authority ”, and

(b)after that subsection insert—

(2A)The appropriate authority” means—

(a)in relation to a disposal of land in England by a registered provider of social housing, the Regulator of Social Housing,

(b)in relation to any other disposal of land in England, the Secretary of State, and

(c)in relation to a disposal of land in Wales, the Welsh Ministers.

(2)In section 81 of the Housing Act 1988 (consent to certain disposals of housing obtained from housing action trusts)—

(a)in subsection (3) (consent) for “Secretary of State” substitute “ appropriate authority ”,

(b)after that subsection insert—

(3A)In this section “the appropriate authority” means—

(a)in relation to a disposal of land in England by a registered provider of social housing, the Regulator of Social Housing,

(b)in relation to any other disposal of land in England, the Secretary of State, and

(c)in relation to a disposal of land in Wales, the Welsh Ministers.,

(c)in subsection (5) (consultation of tenants) for “Secretary of State” substitute “ appropriate authority ”,

(d)in subsection (5)(a) for “himself” substitute “ itself ”, and

(e)omit subsection (6) (consultation of Housing Corporation).

(3)In section 133 of that Act (consent to certain disposals of housing obtained from local authorities)—

(a)in subsection (1) (consent) for “Secretary of State” substitute “ appropriate authority ”,

(b)after that subsection insert—

(1ZA)In this section “the appropriate authority” means—

(a)in relation to a disposal of land in England by a registered provider of social housing, the Regulator of Social Housing,

(b)in relation to any other disposal of land in England, the Secretary of State, and

(c)in relation to a disposal of land in Wales, the Welsh Ministers.,

(c)after subsection (1A) insert—

(1B)This section does not apply to a disposal of land by a registered provider of social housing unless the land is social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008.,

(d)in subsection (3)(c) (modification of certain provisions applied for the purposes of section 133) after “this section,” insert “ any reference to the appropriate national body shall be construed as a reference to the appropriate authority and ”,

(e)in subsection (5) (consultation of tenants) for “Secretary of State” substitute “ appropriate authority ”,

(f)in subsection (5)(a) for “himself” substitute “ itself ”, and

(g)omit subsection (6) (consultation of Housing Corporation).

(4)In section 173 of the Local Government and Housing Act 1989 (c. 42) (consent to certain disposals of housing obtained from new town corporations)—

(a)in subsection (1)(a) (consent) for “Secretary of State” substitute “ appropriate authority ”,

(b)after subsection (1) insert—

(1A)In this section “the appropriate authority” means—

(a)in relation to a disposal of land in England by a registered provider of social housing, the Regulator of Social Housing,

(b)in relation to any other disposal of land in England, the Secretary of State, and

(c)in relation to a disposal of land in Wales, the Welsh Ministers.,

(c)in subsection (5) (consultation of tenants) for “Secretary of State” substitute “ appropriate authority ”,

(d)in subsection (5)(a) for “himself” substitute “ itself ”, and

(e)omit subsection (6) (consultation of Housing Corporation).

Commencement Information

I122S. 191 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

Chapter 6E+WRegulatory powers

192OverviewE+W

This Chapter—

(a)allows the regulator to set standards for the provision of social housing (sections 193 to [F202198B]),

(b)gives the regulator powers to monitor compliance (sections 199 to 210),

F203(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)requires the regulator to give guidance about [F204the submission of information and opinions] relating to registered providers and about the use of its powers under this Chapter and Chapter 7 (sections 215 and 216), and

(e)allows the regulator to arrange for the accreditation of managers of social housing (section 217).

Textual Amendments

F202Word in s. 192(a) substituted (1.4.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 17 para. 3(2); S.I. 2012/628, art. 6(i) (with arts. 9 11 14 15 17)

F204Words in s. 192(d) substituted (1.4.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 17 para. 3(3); S.I. 2012/628, art. 6(i) (with arts. 9 11 14 15 17)

Commencement Information

I123S. 192 in force at 8.9.2008 by S.I. 2008/2358, art. 3(1)

StandardsE+W

193[F205Standards relating to consumer matters]E+W

(1)The regulator may set standards for registered providers as to the nature, extent and quality of accommodation, facilities or services provided by them in connection with social housing.

(2)Standards under subsection (1) may, in particular, require registered providers to comply with specified rules about—

(a)criteria for allocating accommodation,

(b)terms of tenancies,

F206(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)maintenance,

(e)procedures for addressing complaints by tenants against landlords,

(f)methods for consulting and informing tenants,

(g)methods of enabling tenants to influence or control the management of their accommodation and environment,

[F207(ga)methods of assisting tenants to exchange tenancies,]

(h)policies and procedures required by section 218A of the Housing Act 1996 (c. 52) in connection with anti-social behaviour,

(i)landlords' contribution to the environmental, social and economic well-being of the areas in which their property is situated, and

(j)estate management.

(3)In setting standards the regulator shall have regard to the desirability of registered providers being free to choose how to provide services and conduct business.

Textual Amendments

F205 S. 193 heading substituted (1.4.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 17 para. 4(2); S.I. 2012/628, art. 6(i) (with arts. 9 11 14 15 17)

F207S. 193(2)(ga) inserted (15.1.2012) by Localism Act 2011 (c. 20), ss. 176(1), 240(2); S.I. 2012/57, art. 4(1)(s) (with arts. 6, 7, 9-11)

Commencement Information

I124S. 193 in force at 8.9.2008 by S.I. 2008/2358, art. 3(1)

194[F208Standards relating to economic matters]E+W

(1)The regulator may set standards for [F209private registered providers] in matters relating to F210... their financial and other affairs.

[F211(1A)Standards under subsection (1) may, in particular, require private registered providers to comply with specified rules about—

(a)the management of their financial and other affairs, and

(b)their efficiency in carrying on their financial and other affairs.]

(2)In respect of profit-making registered providers, standards may be made in relation to the management of their affairs only so far as relating to the provision of social housing.

[F212(2A)The regulator may set standards for registered providers requiring them to comply with specified rules about their levels of rent (and the rules may, in particular, include provision for minimum or maximum levels of rent or levels of increase or decrease of rent).]

(3)In setting standards the regulator shall have regard to the desirability of registered providers being free to choose how to provide services and conduct business.

Textual Amendments

Modifications etc. (not altering text)

C4S. 194(2A) modified (16.3.2016 for specified purposes, 1.4.2016 in so far as not already in force) by Welfare Reform and Work Act 2016 (c. 7), ss. 32, 36(5); S.I. 2016/394, reg. 4

Commencement Information

I125S. 194 in force at 8.9.2008 by S.I. 2008/2358, art. 3(1)

195Code of practiceE+W

(1)The regulator may issue a code of practice which—

(a)relates to a matter addressed by a standard [F213under section 194], and

(b)amplifies the standard.

(2)In considering whether standards [F214under that section] have been met the regulator may have regard to a code of practice.

(3)The regulator may revise or withdraw a code of practice.

(4)The regulator shall make arrangements for bringing a code of practice to the attention of registered providers.

Textual Amendments

F213Words in s. 195(1)(a) inserted (1.4.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 17 para. 6(2); S.I. 2012/628, art. 6(i) (with arts. 9 11 14 15 17)

F214Words in s. 195(2) inserted (1.4.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 17 para. 6(3); S.I. 2012/628, art. 6(i) (with arts. 9 11 14 15 17)

Commencement Information

I126S. 195 in force at 8.9.2008 by S.I. 2008/2358, art. 3(1)

196ConsultationE+W

(1)Before setting standards, or issuing, revising or withdrawing a code of practice, the regulator shall consult the following or ensure that they have been consulted—

(a)one or more bodies appearing to it to represent the interests of registered providers,

(b)one or more bodies appearing to it to represent the interests of secured creditors of registered providers,

[F215(ba)any body for the time being nominated under section 278A,]

(c)one or more[F216other] bodies appearing to it to represent the interests of tenants of social housing,

F217(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e)one or more bodies appearing to it to represent the interests of local housing authorities,

[F218(ea)the Greater London Authority,]

F219(f). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ., and

(g)the Secretary of State.

[F220(1A)Before setting standards, or issuing, revising or withdrawing a code of practice, the regulator must also consult the HCA.]

(2)Before setting a standard which would apply to charities, or issuing, revising or withdrawing a code of practice which applies or would apply to charities, the regulator must consult the Charity Commission.

Textual Amendments

F219S. 196(1)(f) (but not the word "and" at the end of that paragraph) repealed (1.4.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 16 para. 42, Sch. 25 Pt. 26; S.I. 2012/628, art. 6(i)(j) (with arts. 9 11 14 15 17)

Commencement Information

I127S. 196 in force at 8.9.2008 by S.I. 2008/2358, art. 3(1) (with art. 3(3)(4))

197Direction by Secretary of StateE+W

(1)The Secretary of State may direct the regulator—

(a)to set a standard under section 193 [F221or 194],

(b)about the content of standards under section 193 [F222or 194], or

(c)to have regard to specified objectives when setting standards under section 193 or 194.

(2)The Secretary of State may give a direction under subsection (1)(a) or (b) only if it relates, in the Secretary of State's opinion, to—

(a)quality of accommodation,

[F223(aa)tenure,]

(b)rent, F224...

(c)involvement by tenants in the management by registered providers of accommodation [F225, or

(d)methods of assisting tenants to exchange tenancies.]

(3)In deciding whether to give a direction the Secretary of State shall, in particular, have regard to the regulator's fundamental objectives.

(4)Before giving a direction the Secretary of State must consult—

[F226(za)the HCA,]

(a)the regulator,

[F227(aa)the Greater London Authority,]

F228(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F229(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)one or more bodies appearing to the Secretary of State to represent the interests of local housing authorities,

[F230(da)any body for the time being nominated under section 278A,]

(e)one or more[F231other ] bodies appearing to the Secretary of State to represent the interests of tenants of social housing, and

(f)one or more bodies appearing to the Secretary of State to represent the interests of registered providers.

(5)Before giving a direction about a standard which would apply to charities the Secretary of State must consult the Charity Commission.

(6)A direction may disapply the requirement to consult under section 196 in relation to specified matters.

(7)The regulator shall comply with any direction.

(8)The Secretary of State shall publish—

(a)each proposed direction that is the subject of a consultation,

(b)each response to a consultation, and

(c)each direction.

Textual Amendments

F221Words in s. 197(1)(a) inserted (1.4.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 17 para. 7; S.I. 2012/628, art. 6(i) (with arts. 9 11 14 15 17)

F222Words in s. 197(1)(b) inserted (1.4.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 17 para. 7; S.I. 2012/628, art. 6(i) (with arts. 9 11 14 15 17)

F223S. 197(2)(aa) inserted (15.1.2012) by Localism Act 2011 (c. 20), ss. 152, 240(2); S.I. 2012/57, art. 4(1)(n) (with arts. 6, 7, 9-11)

F225S. 197(2)(d) and word inserted (15.1.2012) by Localism Act 2011 (c. 20), ss. 176(2), 240(2); S.I. 2012/57, art. 4(1)(s) (with arts. 6, 7, 9-11)

Commencement Information

I128S. 197 in force at 8.9.2008 by S.I. 2008/2358, art. 3(1) (with art. 3(3)(4))

198SupplementalE+W

F232(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)The regulator shall make arrangements for bringing standards to the attention of registered providers.

(3)The regulator may revise or withdraw standards; and section 196 applies to revising or withdrawing standards as to setting standards.

(4)Standards may be expressed by reference to documents prepared by others.

(5)Standards—

(a)may make provision generally or only in relation to specified cases, circumstances or areas, and

(b)may make different provision for different cases, circumstances or areas.

Textual Amendments

Modifications etc. (not altering text)

C5S. 198(3) modified (16.3.2016 for specified purposes, 1.4.2016 in so far as not already in force) by Welfare Reform and Work Act 2016 (c. 7), ss. 32, 36(5); S.I. 2016/394, reg. 4

Commencement Information

I129S. 198(2)-(5) in force at 8.9.2008 by S.I. 2008/2358, art. 3(1)

[F233198AFailure to meet standard under section 193E+W

(1)Failure by a registered provider to meet a standard under section 193 (standards relating to consumers matters) is a ground for exercising a power in this Chapter or Chapter 7.

(2)But a power to which this subsection applies may be exercised on that ground only if the regulator thinks there are reasonable grounds to suspect that—

(a)the failure has resulted in a serious detriment to the registered provider's tenants or potential tenants, or

(b)there is a significant risk that, if no action is taken by the regulator, the failure will result in a serious detriment to the registered provider's tenants or potential tenants.

(3)Subsection (2) applies to the powers conferred by any of the following—

(a)section 199 (surveys);

(b)section 201 (inspections);

(c)section 206 (inquiries);

(d)section 220 (enforcement notices);

(e)section 227 (penalties);

(f)section 237 (compensation);

(g)section 247 (management tender);

(h)section 251 (appointment of manager).

(4)The risk that, if no action is taken by a registered provider or the regulator, the registered provider will fail to meet a standard under section 193 is a ground for exercising a power in this Chapter.

(5)But a power in this Chapter may be exercised on that ground only if the regulator thinks there are reasonable grounds to suspect that, if the failure occurs—

(a)the failure will result in a serious detriment to the registered provider's tenants or potential tenants, or

(b)there will be a significant risk that, if no action is taken by the regulator, the failure will result in a serious detriment to the registered provider's tenants or potential tenants.

(6)In considering whether to exercise a power within subsection (1) or (4) on the ground mentioned in that subsection, the regulator must have regard to any information it has received from any of the following—

(a)the Commission for Local Administration in England;

(b)a housing ombudsman appointed in accordance with a scheme approved under Schedule 2 to the Housing Act 1996;

(c)any body appearing to the regulator to represent the interests of tenants of social housing in England;

(d)a county council in England, a district council, a London borough council, the Common Council of the City of London in its capacity as a local authority, the Council of the Isles of Scilly or a parish council;

(e)a member of any of the bodies listed in paragraph (d);

(f)the Greater London Authority;

(g)a Member of Parliament;

(h)a fire and rescue authority under the Fire and Rescue Services Act 2004;

(i)the Health and Safety Executive;

(j)the Secretary of State.

Textual Amendments

198BFailure to meet standard under section 194E+W

(1)Failure by a registered provider to meet a standard under section 194 (standards relating to economic matters) is a ground for exercising a power in this Chapter or Chapter 7 (if the power is otherwise exercisable in relation to a registered provider of that kind).

(2)The risk that, if no action is taken by a registered provider or the regulator, the registered provider will fail to meet a standard under section 194 is a ground for exercising a power in this Chapter.]

Textual Amendments

MonitoringE+W

199SurveyE+W

(1)This section applies where the regulator suspects that a registered provider may be failing to maintain premises in accordance with standards under section 193.

(2)The regulator may arrange for a survey of the condition of the premises by an authorised person.

(3)In subsection (2) “authorised person” means a member of the regulator's staff, or another person, authorised in writing by the regulator for the purposes of this section.

(4)An authorised person may enter the premises at any reasonable time and carry out the survey.

(5)Before carrying out the survey an authorised person must give the registered provider at least 28 days' notice.

(6)A registered provider who receives notice of a survey must give each occupier of the premises at least 7 days' notice.

(7)After carrying out a survey an authorised person must produce a written report.

(8)The regulator must give the registered provider a copy of the report.

Commencement Information

I130S. 199 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

200Survey: supplementalE+W

(1)An authorised person carrying out a survey, or seeking to enter premises in order to carry out a survey, must produce a copy of the authorisation on request by an occupier.

(2)The regulator may require the registered provider to pay some or all of the costs of the survey and report.

(3)A registered provider who fails without reasonable excuse to comply with section 199(6) commits an offence.

(4)A registered provider, or an officer of a registered provider, who obstructs an authorised person in exercising a power under section 199 commits an offence.

(5)A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(6)Proceedings for an offence under this section may be brought only by or with the consent of—

(a)the regulator, or

(b)the Director of Public Prosecutions.

Commencement Information

I131S. 200 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)

201InspectionsE+W

(1)The regulator may arrange for a person to inspect—

(a)a registered provider's performance of its functions in relation to the provision of social housing, or

(b)the financial or other affairs of a registered provider.

[F234(2)The person may be a member of the regulator's staff if the Secretary of State consents.

(2A)Consent under subsection (2) may be general or specific.]

F235(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)The regulator may direct a person carrying out an inspection to discontinue it.

(5)An inspection may be general or specific.

F236(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F237(7)Arrangements for a person other than a member of the regulator's staff to carry out an inspection may include provision about payments.]

F238(7A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F239(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F234S. 201(2)(2A) substituted for s. 201(2) (1.4.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 17 para. 10(2); S.I. 2012/628, art. 6(i) (with arts. 9 11 14 15 17)