Agreements that are not qualifying long term agreements3.

(1)

An agreement is not a qualifying long term agreement13—

(a)

if it is a contract of employment; or

(b)

if it is a management agreement made by a local housing authority14 and—

(i)

a tenant management organisation; or

(ii)

a body established under section 2 of the Local Government Act 200015;

(c)

if the parties to the agreement are—

(i)

a holding company and one or more of its subsidiaries; or

(ii)

two or more subsidiaries of the same holding company;

(d)

if—

(i)

when the agreement is entered into, there are no tenants of the building or other premises to which the agreement relates; and

(ii)

the agreement is for a term not exceeding five years.

(2)

An agreement entered into, by or on behalf of the landlord or a superior landlord—

(a)

before the coming into force of these Regulations; and

(b)

for a term of more than twelve months,

is not a qualifying long term agreement, notwithstanding that more than twelve months of the term remain unexpired on the coming into force of these Regulations.

(3)

An agreement for a term of more than twelve months entered into, by or on behalf of the landlord or a superior landlord, which provides for the carrying out of qualifying works for which public notice has been given before the date on which these Regulations come into force, is not a qualifying long term agreement.

(4)

In paragraph (1)—

“holding company” and “subsidiaries” have the same meaning as in the Companies Act 198516;
“management agreement” has the meaning given by section 27(2) of the Housing Act 198517; and
“tenant management organisation” has the meaning given by section 27AB(8) of the Housing Act 198518.