Housing Act 1996

Part I — Social Rented Sector regulated by the Welsh Ministers

Chapter I — Registered social landlords

Registration

Introduction

A1

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

The register of social landlords.

1

• (1) The Welsh Ministers shall maintain a register of social landlords which shall be open to inspection at all reasonable times . . ..

• (1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (1B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Welsh bodies

1A

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) a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014 (in this Part, a “registered society”) whose registered office for the purposes of that Act 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.

Eligibility for registration.

2

• (1) A Welsh body is eligible for registration as a social landlord if it is—

• (a) a registered charity which is a housing association,

• (b) a registered society which satisfies the conditions in subsection (2), or

• (c) a company which satisfies those conditions.

• (2) The conditions are that the body is principally concerned with Welsh housing, is non-profit-making and is established for the purpose of, or has among its objects or powers, the provision, construction, improvement or management of—

• (a) houses to be kept available for letting,

• (b) houses for occupation by members of the body, where the rules of the body restrict membership to persons entitled or prospectively entitled (as tenants or otherwise) to occupy a house provided or managed by the body, or

• (c) hostels,

and that any additional purposes or objects are among those specified in subsection (4).

• (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.

• (3) For the purposes of this section a body is non-profit-making if—

• (a) it does not trade for profit, or

• (b) its constitution or rules prohibit the issue of capital with interest or dividend exceeding the rate prescribed by the Treasury for the purposes of section 1(1)(b) of the Housing Associations Act 1985.

• (4) The permissible additional purposes or objects are—

• (a) providing land, amenities or services, or providing, constructing, repairing or improving buildings, for its residents, either exclusively or together with other persons;

• (b) acquiring, or repairing and improving, or creating by the conversion of houses or other property, houses to be disposed of on sale, on lease or on shared ownership terms;

• (c) constructing houses to be disposed of on shared ownership terms;

• (d) managing houses held on leases or other lettings (not being houses within subsection (2)(a) or (b)) or blocks of flats;

• (e) providing services of any description for owners or occupiers of houses in arranging or carrying out works of maintenance, repair or improvement, or encouraging or facilitating the carrying out of such works;

• (f) encouraging and giving advice on the forming of housing associations or providing services for, and giving advice on the running of, such associations and other voluntary organisations concerned with housing, or matters connected with housing.

• (5) A body is not ineligible for registration as a social landlord by reason only that its powers include power—

• (a) to acquire commercial premises or businesses as an incidental part of a project or series of projects undertaken for purposes or objects falling within subsection (2) or (4);

• (b) to repair, improve or convert commercial premises acquired as mentioned in paragraph (a) or to carry on for a limited period any business so acquired;

• (c) to repair or improve houses, or buildings in which houses are situated, after a disposal of the houses by the body by way of sale or lease or on shared ownership terms.

• (6) In this section—

• “block of flats” means a building containing two or more flats which are held on leases or other lettings and which are occupied or intended to be occupied wholly or mainly for residential purposes;

• “disposed of on shared ownership terms” means disposed of on a lease—granted on a payment of a premium calculated by reference to a percentage of the value of the house or of the cost of providing it, orunder which the tenant (or his personal representatives) will or may be entitled to a sum calculated by reference directly or indirectly to the value of the house;

• “letting” includes the grant of a licence to occupy;

• “residents”, in relation to a body, means persons occupying a house or hostel provided or managed by the body; and

• “voluntary organisation” means an organisation whose activities are not carried on for profit.

• (7) The Welsh Ministers may by order specify permissible purposes, objects or powers additional to those specified in subsections (4) and (5).

The order may (without prejudice to the inclusion of other incidental or supplementary provisions) contain such provision as the Welsh Ministers thinks fit with respect to the priority of mortgages entered into in pursuance of any additional purposes, objects or powers.

• (8) An order under subsection (7) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the National Assembly for Wales .

Registration.

3

• (1) The Relevant Authority may register as a social landlord any Welsh body which is eligible for such registration.

• (2) An application for registration shall be made in such manner, and shall be accompanied by such fee (if any), as the Welsh Ministers may determine.

• (3) As soon as may be after registering a body as a social landlord the Welsh Ministers shall give notice of the registration—

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

• (b) in the case of a registered society, to the Financial Conduct Authority, and

• (c) in the case of a company (including a company that is a registered charity), to the registrar of companies,

who shall record the registration.

• (4) A Welsh body which at any time is, or was, registered as a social landlord shall, for all purposes other than rectification of the register, be conclusively presumed to be, or to have been, at that time a body eligible for registration as a social landlord.

Removal from the register.

4

• (1) A body which has been registered as a social landlord shall not be removed from the register except in accordance with this section.

• (2) If it appears to the the Welsh Ministers that a body which is on the register of social landlords—

• (a) is no longer a body eligible for such registration, or

• (b) has ceased to exist or does not operate,

the Welsh Ministers shall, after giving the body at least 14 days’ notice, remove it from the register.

• (3) In the case of a body which appears to the Welsh Ministers to have ceased to exist or not to operate, notice under subsection (2) shall be deemed to be given to the body if it is served at the address last known to the Welsh Ministers to be the principal place of business of the body.

• (4) A body which is registered as a social landlord may request the Welsh Ministers to remove it from the register and the Welsh Ministers may do so, subject to the following provisions.

• (5) Before removing a body from the register of social landlords under subsection (4) the Welsh Ministers shall consult the local authorities in whose area the body operates; and the Welsh Ministers shall also inform those authorities of its decision.

• (6) As soon as may be after removing a body from the register of social landlords the Welsh Ministers shall give notice of the removal—

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

• (b) in the case of a registered society, to the Financial Conduct Authority, and

• (c) in the case of a company (including a company that is a registered charity), to the registrar of companies,

who shall record the removal.

Criteria for registration or removal from register.

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• (1) The Relevant Authority shall establish (and may from time to time vary) criteria which should be satisfied by a body seeking registration as a social landlord; and in deciding whether to register a body the Welsh Ministers shall have regard to whether those criteria are met.

• (2) The Relevant Authority shall establish (and may from time to time vary) criteria which should be satisfied where such a body seeks to be removed from the register of social landlords; and in deciding whether to remove a body from the register the Relevant Authority shall have regard to whether those criteria are met.

• (3) Before establishing or varying any such criteria the Welsh Ministers shall consult such bodies representative of registered social landlords, and such bodies representative of local authorities, as it thinks fit.

• (4) The Relevant Authority shall publish the criteria for registration and the criteria for removal from the register in such manner as the Welsh Ministers considers appropriate for bringing the criteria to the notice of bodies representative of registered social landlords and bodies representative of local authorities.

Appeal against decision on removal.

6

• (1) A body which is aggrieved by a decision of the Welsh Ministers—

• (a) not to register it as a social landlord, or

• (b) to remove or not to remove it from the register of social landlords,

may appeal against the decision to the High Court.

• (2) If an appeal is brought against a decision relating to the removal of a body from the register, the Welsh Ministers shall not remove the body from the register until the appeal has been finally determined or is withdrawn.

• (3) As soon as may be after an appeal is brought against a decision relating to the removal of a body from the register, the Welsh Ministers shall give notice of the appeal—

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

• (b) in the case of a registered society, to the Financial Conduct Authority, and

• (c) in the case of a company (including a company that is a registered charity), to the registrar of companies.

Voluntary undertakings

Voluntary undertakings

6A

• (1) A registered social landlord may give the Welsh Ministers an undertaking in respect of any matter concerning housing.

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

• (3) The Welsh Ministers must have regard to any undertaking offered or given in exercising a regulatory or enforcement power.

• (4) The Welsh Ministers may base a decision about whether to exercise a regulatory or enforcement power wholly or partly on the extent to which an undertaking has been honoured.

• (5) In this section, “regulatory or enforcement power” means a power exercisable under any of the following provisions—

• section 35,

• section 37,

• section 38,

• Chapter 4A of this Part,

• paragraphs 4 and 6 to 15H of Part 2 of Schedule 1,

• Part 3A of Schedule 1,

• Part 4 of Schedule 1.

• (6) This section does not apply in relation to a registered social landlord's provision of housing in England.

Regulation of registered social landlords

Regulation of registered social landlords.

7

Schedule 1 has effect for the regulation of registered social landlords.

Chapter 1A — BOARD MEMBERSHIP AND VOTING RIGHTS

General

Meaning of key terms used in this Chapter

7A

• (1) References in this Chapter to the board of a registered social landlord are—

• (a) in the case of a registered social landlord that is a company (including a company that is a registered charity), references to the company's board of directors;

• (b) in the case of a registered social landlord that is a registered charity (but is not a company), references to the charity's board of trustees;

• (c) in the case of a registered social landlord that is a registered society, references to the society's committee.

• (2) References in this Chapter to board members, in relation to a registered social landlord, are to members of the registered social landlord's board.

• (3) References in this Chapter to local authority appointees, in relation to the board of a registered social landlord, are to persons appointed to the board, or nominated for appointment to the board, by a local authority.

Limit on local authority appointees to board

Limit on local authority appointments to board

7B

• (1) No appointment within subsection (2) may be made to the board of a registered social landlord on or after the day on which this section comes into force.

• (2) An appointment is within this subsection if its effect, but for this section, would be that more than 24 per cent of the board members of the registered social landlord would be local authority appointees.

• (3) To the extent that any provision in the constitution or rules of a registered social landlord would, but for this subsection, conflict with subsection (1) or (2), that provision is to be treated as having no effect.

Removal of local authority appointees to comply with 24 per cent limit

7C

• (1) This section applies in respect of a registered social landlord if, on the commencement date, more than 24 per cent of the board members of the registered social landlord are local authority appointees.

• (2) The registered social landlord must remove local authority appointees from the board to the extent it is necessary to do so to comply with the 24 per cent limit.

• (3) The registered social landlord must comply with the duty in subsection (2) before the expiry of the 4 month period but, subject to subsection (5), the landlord may not remove an appointee until after the 2 month period expires.

• (4) A local authority may, before the expiry of the 2 month period, give notice to the registered social landlord specifying local authority appointees appointed or nominated by that authority who are to be removed from the board in order to comply with the 24 per cent limit.

• (5) Where notice has been given in accordance with subsection (4) the registered social landlord, in complying with subsection (2), must remove the specified local authority appointees from the board (and may do so before the expiry of the 2 month period).

• (6) Where notice has not been given in accordance with subsection (4) the registered social landlord, in complying with subsection (2), must select the local authority appointees who are to be removed from the board.

• (7) In this section—

• “commencement date” means the day on which this section comes into force;

• “2 month period” means the period of 2 months beginning with the commencement date;

• “4 month period” means the period of 4 months beginning with the commencement date;

references to complying with the 24 per cent limit, in relation to the board of a registered social landlord, are to ensuring that no more than 24 per cent of the members of the board of the registered social landlord are local authority appointees.

Procedure for selection by registered social landlord of local authority appointees for removal

7D

• (1) The selection under section 7C(6) of a local authority appointee for removal from the board of a registered social landlord is to be effected by a majority vote of the votes cast by board members who are not local authority appointees.

• (2) To the extent that any provision in the constitution or rules of the landlord would, but for this subsection, conflict with subsection (1), that provision is to be treated as having no effect for the purposes of section 7C.

Quorum and voting rights of board members

Board quorum: no requirement for local authority appointee

7E

• (1) To the extent that any provision of the constitution or rules of a registered social landlord is within subsection (2), it is to be treated as having no effect.

• (2) Provision is within this subsection if, but for this section, it would require the presence of one or more local authority appointees in order for a meeting of the board of the registered social landlord to be quorate.

Board resolutions: 75 per cent threshold

7F

• (1) To the extent that any provision in the constitution or rules of a registered social landlord is within subsection (2), subsection (3) applies in respect of that provision.

• (2) Provision is within this section if, but for this section, it would permit a resolution of the board of the registered social landlord to be passed only if more than 75 per cent of the votes cast by the board are in favour of the resolution.

• (3) The provision is to be treated as requiring only 75 per cent of the votes cast by the board to be in favour of the resolution.

Consent to constitutional change

Constitutional changes: no requirement for local authority consent and no power of veto

7G

• (1) To the extent that any provision of the constitution or rules of a registered social landlord is within subsection (2), it is to be treated as having no effect.

• (2) Provision is within this subsection if, but for this section, it would—