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Localism Act 2011

Type Public General Act

Publication 2011-11-15

Last updated 2026-05-02

State In force

Department Statute Law Database

Source legislation.gov.uk

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(1A) Subsection (1B) applies to an assured shorthold tenancy of a dwelling-house in England if— (a) it is a fixed term tenancy for a term certain of not less than two years, and (b) the landlord is a private registered provider of social housing. (1B) The court may not make an order for possession of the dwelling-house let on the tenancy unless the landlord has given to the tenant not less than six months' notice in writing— (a) stating that the landlord does not propose to grant another tenancy on the expiry of the fixed term tenancy, and (b) informing the tenant of how to obtain help or advice about the notice and, in particular, of any obligation of the landlord to provide help or advice.

(2) The amendments made by this section do not apply in relation to an assured shorthold tenancy that—

(a) was granted before the day on which this section comes into force, or

(b) came into being by virtue of section 5 of the Housing Act 1988 (periodic tenancy arising on termination of fixed term) on the coming to an end of an assured shorthold tenancy within paragraph (a).

Assured shorthold tenancies: rights to acquire

165

(1) Section 180 of the Housing and Regeneration Act 2008 (social housing: right to acquire) is amended as follows.

(2) In subsection (2)(a) (conditions to be met in relation to tenancies) omit “an assured shorthold tenancy or”.

(3) After subsection (2) insert—

(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).

(4) The amendments made by this section do not apply in relation to an assured shorthold tenancy that—

(a) was granted before the day on which this section comes into force, or

(b) came into being by virtue of section 5 of the Housing Act 1988 (periodic tenancy arising on termination of fixed term) on the coming to an end of an assured shorthold tenancy within paragraph (a).

Repairing obligations in leases of seven years or more

166

In section 13 of the Landlord and Tenant Act 1985 (leases to which the provisions about repairing obligations in section 11 of that Act apply) after subsection (1) insert—

(1A) Section 11 also applies to a lease of a dwelling-house in England granted on or after the day on which section 166 of the Localism Act 2011 came into force which is— (a) a secure tenancy for a fixed term of seven years or more granted by a person within section 80(1) of the Housing Act 1985 (secure tenancies: the landlord condition), or (b) an assured tenancy for a fixed term of seven years or more that— (i) is not a shared ownership lease, and (ii) is granted by a private registered provider of social housing. (1B) In subsection (1A)— - “assured tenancy” has the same meaning as in Part 1 of the Housing Act 1988; - “secure tenancy” has the meaning given by section 79 of the Housing Act 1985; and - “shared ownership lease” means a lease— 1. granted on payment of a premium calculated by reference to a percentage of the value of the dwelling-house or of the cost of providing it, or 2. under which the lessee (or the lessee's personal representatives) will or may be entitled to a sum calculated by reference, directly or indirectly, to the value of the dwelling-house.

CHAPTER 3 — Housing finance

Abolition of Housing Revenue Account subsidy in England

167

Schedule 15 (abolition of Housing Revenue Account subsidy in England) has effect.

Settlement payments

168

(1) The Secretary of State may make a determination providing for the calculation of the amount of a payment (referred to in this Chapter as a “settlement payment”) in relation to each local housing authority in England that keeps a Housing Revenue Account.

(2) A determination under this section may, in particular, provide for all or part of the amount to be calculated in accordance with a formula or formulae.

(3) In determining a formula for this purpose, the Secretary of State may, in particular, include variables framed by reference to—

(a) the amounts (if any) that, during such period and on such assumptions as the Secretary of State may determine, are to be treated as amounts that will be received by the local housing authority in connection with the exercise of its functions relating to houses and other property within its Housing Revenue Account,

(b) the amounts (if any) that, during such period and on such assumptions as the Secretary of State may determine, are to be treated as amounts that will be paid by the authority in connection with the exercise of those functions, and

(c) the amount (if any) that, at such time and on such assumptions as the Secretary of State may determine, is to be treated as the amount of debt held by the authority in connection with the exercise of those functions.

(4) A determination under this section may provide for an assumption to be made about an amount whether or not the assumption is, or is likely to be, borne out by events.

(5) A determination under this section may provide that the effect of the calculation in relation to a local housing authority is that—

(a) a settlement payment must be made by the Secretary of State to the local housing authority,

(b) a settlement payment must be made by the local housing authority to the Secretary of State, or

Further payments

169

(1) This section applies if a settlement payment has been made in respect of a local housing authority.

(2) The Secretary of State may from time to time make a determination that a further payment calculated in accordance with the determination must be made—

(a) by the Secretary of State to the local housing authority, or

(b) by the local housing authority to the Secretary of State.

(3) The Secretary of State may make a determination under this section only if there has been a change in any matter that was taken into account in making—

(a) the determination relating to the settlement payment or a calculation under that determination, or

(b) a previous determination under this section relating to the local housing authority or a calculation under that determination.

(4) A determination under this section may be varied or revoked by a subsequent determination.

Further provisions about payments

170

(1) A payment under this Chapter must be made in such instalments, at such times and in accordance with such arrangements as the Secretary of State may determine.

(2) Arrangements under subsection (1) may include arrangements for payments to be made—

(a) by a person or body other than the Secretary of State to a local housing authority, or

(b) to a person or body other than the Secretary of State by a local housing authority.

(3) A payment under this Chapter by a local housing authority must be accompanied by such information as the Secretary of State may require.

(4) The Secretary of State may charge a local housing authority interest, at such rates and for such periods as the Secretary of State may determine, on any sum payable by the local housing authority under this Chapter that is not paid by a time determined under this section for its payment.

(5) The Secretary of State may charge a local housing authority an amount equal to any additional costs incurred by the Secretary of State as a result of any sum payable by the local housing authority under this Chapter not being paid by a time determined under this section for its payment.

(6) A payment under this Chapter other than a payment under subsection (4) or (5)—

(a) if made by a local housing authority, is to be treated by the authority as capital expenditure for the purposes of Chapter 1 of Part 1 of the Local Government Act 2003;

(b) if made to a local housing authority, is to be treated by the authority as a capital receipt for the purposes of that Chapter.

(7) A determination under this Chapter may require a payment to a local housing authority made under this Chapter to be used by the authority for a purpose specified in the determination.

(8) A local housing authority to which such a requirement applies must comply with it.

(9) In Schedule 4 to the Local Government and Housing Act 1989 (the keeping of the housing revenue account) in Part 2 (debits to the account) after item 5 insert— “ Item 5A: sums payable under section 170 of the Localism Act 2011 Sums payable for the year to the Secretary of State under section 170(4) or (5) of the Localism Act 2011 (interest etc charged as a result of late payment of settlement payments etc). ”

Limits on indebtedness

171

(1) The Secretary of State may from time to time make a determination providing for the calculation in relation to each local housing authority in England that keeps a Housing Revenue Account of—

(a) the amount of housing debt that, at such time and on such assumptions as the Secretary of State may determine, is to be treated as held by the authority, and

(b) the maximum amount of such housing debt that the authority may hold.

(2) A determination under this section may, in particular, provide for all or part of an amount to be calculated in accordance with a formula or formulae.

(3) A determination under this section may provide for assumptions to be made in making a calculation whether or not those assumption are, or are likely to be, borne out by events.

(4) A determination under this section may be varied or revoked by a subsequent determination.

(5) A local housing authority may not hold debt in contravention of a determination under this section.

(6) In this section “housing debt”, in relation to a local housing authority, means debt—

(a) which is held by the authority in connection with the exercise of its functions relating to houses and other property within its Housing Revenue Account, and

(b) interest and other charges in respect of which are required to be carried to the debit of that account.

Power to obtain information

172

(1) A local housing authority in England must supply the Secretary of State with such information as the Secretary of State may specify for the purposes of enabling the Secretary of State to exercise functions under this Chapter.

(2) The Secretary of State may exercise the powers under this section either generally or in relation to a particular case.

(3) If a local housing authority fails to comply with this section before the end of such period as the Secretary of State may specify, the Secretary of State may exercise functions under this Chapter on the basis of such assumptions and estimates as the Secretary of State thinks fit.

Determinations under this Chapter

173

(1) A determination under this Chapter may make different provision for different cases or descriptions of case, including different provision—

(a) for different areas,

(b) for different local housing authorities, or

(2) Before making a determination under this Chapter that relates to all local housing authorities or a description of local housing authority, the Secretary of State must consult such representatives of local government and relevant professional bodes as the Secretary of State thinks appropriate.

(3) Before making a determination under this Chapter relating to a particular local housing authority, the Secretary of State must consult that local housing authority.

(4) As soon as practicable after making a determination under this Chapter, the Secretary of State must send a copy of the determination to the local housing authority or authorities to which it relates.

(5) Section 87(4) to (7) (electronic communications) of the Local Government and Housing Act 1989 applies to a determination under this Chapter as it applies to a determination under Part 6 of that Act.

Capital receipts from disposal of housing land

174

In section 11 of the Local Government Act 2003 (use of capital receipts by a local authority) after subsection (5) insert—

(6) The Secretary of State and a local authority in England may enter into an agreement with the effect that a requirement imposed under subsection (2)(b) does not apply to, or is modified in its application to, capital receipts of the authority that are specified or described in the agreement.

Interpretation

175

In this Chapter “local housing authority” has the same meaning as in the Housing Act 1985.

CHAPTER 4 — Housing mobility

Standards facilitating exchange of tenancies

176

(1) In section 193 of the Housing and Regeneration Act 2008 (power for regulator to set standards for registered providers) in subsection (2) after paragraph (g) insert—

(ga) methods of assisting tenants to exchange tenancies,

(2) In section 197(2) of that Act (power of Secretary of State to give directions to regulator) after paragraph (c) insert

, or (d) methods of assisting tenants to exchange tenancies.

177

In section 122 of the Housing and Regeneration Act 2008 (registered providers of social housing in England: restriction on gifts and distributions to members etc) after subsection (5) (the third class of permitted payments) insert—

(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.

178

(1) Schedule 16 (transfer of functions from the Office for Tenants and Social Landlords to the Homes and Communities Agency) has effect.

(2) In that Schedule—

Part 1 amends the Housing and Regeneration Act 2008 (regulation of social housing) so as to—abolish the Office for Tenants and Social Landlords (“the Office”),create the Regulation Committee of the Homes and Communities Agency (“the HCA”), andtransfer the functions of the Office to the HCA acting through the Committee,

Part 2 makes consequential amendments to other enactments,

Part 3 contains provision transferring property, rights and liabilities of the Office to the HCA, and

Part 4 contains transitional and saving provisions.

179

Schedule 17 (regulation of social housing) has effect.

CHAPTER 6 — Other housing matters

Housing ombudsman

Housing complaints

180

(1) In Schedule 2 to the Housing Act 1996 (social rented sector: housing complaints) after paragraph 7 insert—

(7A) (1) A complaint against a social landlord is not “duly made” to a housing ombudsman under an approved scheme unless it is made in writing to the ombudsman by a designated person by way of referral of a complaint made to the designated person. (2) Sub-paragraph (1) is subject to paragraph 7B (complaints that need not be made by way of referral). (3) For the purposes of this paragraph “designated person” means— (a) a member of the House of Commons, (b) a member of the local housing authority for the district in which the property concerned is located, or (c) a designated tenant panel (see paragraph 7C(1)) for the social landlord. (4) Before making a referral under sub-paragraph (1), a designated person must obtain written consent from the complainant or the complainant's representative. (5) Sub-paragraphs (6) and (7) apply if under sub-paragraph (1) a designated person refers a complaint to a housing ombudsman. (6) If the ombudsman decides— (a) not to investigate the complaint, or (b) to discontinue investigation of the complaint, the ombudsman must prepare a statement of reasons for that decision and send a copy of the statement to the designated person. (7) If the ombudsman completes investigation of the complaint, the ombudsman must inform the designated person of— (a) the results of the investigation, and (b) any determination made. (8) In sub-paragraph (3)(b) “district” in relation to a local housing authority has the same meaning as in the Housing Act 1985. (7B) (1) Paragraph 7A(1) does not apply in relation to a complaint against a social landlord made to a housing ombudsman under an approved scheme if the ombudsman is satisfied that— (a) the social landlord has procedures for considering complaints against the social landlord, (b) the matter that forms the subject of the complaint has been submitted to those procedures, (c) those procedures have been exhausted, and (d) the complaint has been made to the ombudsman after the end of the eight weeks beginning with the day on which those procedures were exhausted. (2) Paragraph 7A(1) does not apply in relation to a complaint against a social landlord made to a housing ombudsman under an approved scheme if— (a) the ombudsman is satisfied that a designated person— (i) has refused to refer the complaint to a housing ombudsman under an approved scheme, or (ii) has agreed to the complaint being made otherwise than by way of a referral by a designated person, and (b) the refusal, or agreement, is in writing or the ombudsman is satisfied that it has been confirmed in writing. (3) Paragraph 7A(3) (meaning of “designated person”) applies also for the purposes of sub-paragraph (2). (7C) (1) In paragraph 7A(3)(c) “designated tenant panel” means a group of tenants which is recognised by a social landlord for the purpose of referring complaints against the social landlord. (2) There may be more than one designated tenant panel for a social landlord. (3) Where a social landlord becomes a member of an approved scheme, the social landlord must give to the person administering the scheme contact details for any designated tenant panel for the social landlord. (4) Where a group becomes a designated tenant panel for a social landlord, the social landlord must, as respects each approved scheme of which the social landlord is a member, give to the person administering the scheme contact details for the panel. (5) Where a group ceases to be a designated tenant panel for a social landlord, the social landlord must inform the person administering each approved scheme of which the social landlord is a member. (6) A complaint referred to a housing ombudsman under an approved scheme by a designated tenant panel for a social landlord is not affected by the group concerned ceasing to be a designated tenant panel for the social landlord. (7D) (1) The Secretary of State may by order make provision for, or in connection with, authorising a housing ombudsman under an approved scheme to apply to a court or tribunal for an order that a determination made by the ombudsman may be enforced as if it were an order of a court. (2) Before the Secretary of State makes an order under sub-paragraph (1), the Secretary of State must consult— (a) one or more bodies appearing to the Secretary of State to represent the interests of social landlords, (b) one or more bodies appearing to the Secretary of State to represent the interests of other members of approved schemes, (c) one or more bodies appearing to the Secretary of State to represent the interests of tenants, and (d) such other persons as the Secretary of State considers appropriate. (3) The Secretary of State's power to make an order under sub-paragraph (1) is exercisable by statutory instrument. (4) A statutory instrument containing an order made by the Secretary of State under sub-paragraph (1) is subject to annulment in pursuance of a resolution of either House of Parliament.

(2) Section 239(2) of the Housing and Regeneration Act 2008 (regulator may award compensation if compensation awarded by housing ombudsman has not been paid) is omitted.

(3) Subsection (1), so far as it inserts paragraph 7A of Schedule 2 to the Housing Act 1996, applies only in relation to complaints made to a housing ombudsman after the coming into force of that subsection so far as it makes that insertion.

(4) Subsection (1), so far as it inserts paragraph 7D of that Schedule, applies only in relation to determinations made after the coming into force of that subsection so far as it makes that insertion.

(5) Subsection (2) applies only in relation to determinations made after the coming into force of that subsection.

Transfer of functions to housing ombudsman

181

(1) In Schedule 5 to the Local Government Act 1974 (matters not subject to investigation by a Local Commissioner)—

(a) after paragraph 5 insert—

(5A) Action which— (a) is taken by or on behalf of a local authority in its capacity as a registered provider of social housing, and (b) is action in connection with its housing activities so far as they relate to the provision or management of social housing (and here “social housing” has the same meaning as in Part 2 of the Housing and Regeneration Act 2008). (5B) In the case of a local authority which is a registered provider of social housing, action taken by or on behalf of the authority in connection with the management of dwellings owned by the authority and let on a long lease (and here “long lease” has the meaning given by section 59(3) of the Landlord and Tenant Act 1987).

, and

(b) in paragraph 6 for the words from “not action” to the end substitute

— (a) action in connection with functions in relation to social housing (and here “social housing” has the same meaning as in Part 2 of the Housing and Regeneration Act 2008), or (b) action in connection with functions in relation to anything other than housing.

(2) The Housing Act 1996 is amended as follows.

(3) In section 51(2) (investigation of complaints against social landlords) before paragraph (a) insert—

(za) a local authority in England which is a registered provider of social housing,

(4) In Schedule 2 (schemes for the investigation of housing complaints)—

(a) in paragraph 1(1) after “social landlord” insert “ , other than a local housing authority, ”,

(b) after paragraph 1(1) insert—

(1A) A social landlord which is a local housing authority must be a member of an approved scheme covering, or more than one scheme which together cover— (a) action which— (i) is taken by or on behalf of the authority in its capacity as a registered provider of social housing, and (ii) is action in connection with its housing activities so far as they relate to the provision or management of social housing (and here “social housing” has the same meaning as in Part 2 of the Housing and Regeneration Act 2008), and (b) action taken by or on behalf of the authority in connection with the management of dwellings owned by the authority and let on a long lease (and here “long lease” has the meaning given by section 59(3) of the Landlord and Tenant Act 1987).

, and

(1A) If a change in the method of calculation under sub-paragraph (1) would result in a member's subscription being more than it would otherwise be, the change may be made only if the Secretary of State approves it. (1B) An approved scheme's total defrayable expenses for a period may be more than the scheme's total defrayable expenses for the immediately-preceding corresponding period only if the Secretary of State approves the increase. (1C) In sub-paragraph (1B) “defrayable expenses”, in relation to a scheme, means expenses of the scheme that are to be defrayed by subscriptions from members of the scheme.

(5) The Secretary of State may, in consequence of the amendments made by this section, make a scheme (“a transfer scheme”) transferring property, rights and liabilities of the Commission for Local Administration in England to a person administering a scheme approved under Schedule 2 to the Housing Act 1996.

(6) The things that may be transferred under a transfer scheme include—

(a) property, rights and liabilities that could not otherwise be transferred, and

(b) property acquired, and rights and liabilities arising, after the making of the scheme.

(7) A transfer scheme may make consequential, supplementary, incidental or transitional provision and may in particular—

(a) create rights, or impose liabilities, in relation to property or rights transferred,

(b) make provision about the continuing effect of things done by or in relation to the transferor in respect of anything transferred,

(c) make provision about the continuation of things (including legal proceedings) in the process of being done by, on behalf of or in relation to the transferor in respect of anything transferred,

(d) make provision for references to the transferor in an instrument or other document in respect of anything transferred to be treated as references to the transferee,

(e) make provision for the shared ownership or use of property, and

(f) if the TUPE regulations do not apply in relation to the transfer, make provision which is the same or similar.

(8) A transfer scheme may provide—

(a) for modification by agreement, and

(b) for modifications to have effect from the date when the original scheme came into effect.

(9) In this section—

“TUPE regulations” means the Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246),

references to rights and liabilities include rights and liabilities relating to a contract of employment, and

references to the transfer of property include the grant of a lease.

(10) Subsection (1) applies only in relation to complaints made to a Local Commissioner after the coming into force of that subsection.

(11) Subsection (3) or (4) applies only in relation to complaints made to a housing ombudsman after the coming into force of that subsection.

Transfer of functions to housing ombudsman: supplementary

182

(1) The Local Government Act 1974 is amended in accordance with subsections (2) to (7).

(2) In section 33 (consultation between Local Commissioners and other Commissioners)—

(a) in subsection (1) after paragraph (b) insert—

(bza) by a housing ombudsman under the Housing Act 1996,

(b) in subsection (2) after “Parliamentary Commissioner,” insert “ a housing ombudsman, ”,

(3A) If at any stage in the course of conducting an investigation under the Housing Act 1996, a housing ombudsman forms the opinion that the complaint relates partly to a matter which could be the subject of an investigation under this Part of the Act, the ombudsman must consult with the appropriate Local Commissioner about the complaint and, if the ombudsman considers it necessary, inform the person initiating the complaint of the steps necessary to initiate a complaint under this Part of this Act.

(d) in subsection (4) after “subsection (3)” insert “ or (3A) ”, and

(e) in that subsection after “1967” insert “ or under the Housing Act 1996 ”.

(3) Section 33ZA (collaborative working between Local Commissioners and other Commissioners) is amended as follows.

(4) In subsection (1) (power to conduct joint investigations)—

(a) in paragraph (c) for “both” substitute “ a housing ombudsman ”, and

(b) for the words from “jointly” to the end substitute “ jointly with any also-involved ombudsman or jointly with any two or more also-involved ombudsmen. ”

(5) After subsection (1) insert—

(1A) In subsection (1) “also-involved ombudsman” means a person within subsection (1)(a), (b) or (c) who, in the opinion of the Local Commissioner concerned, has jurisdiction in relation to a matter that is included among the matters which are the subject of the Local Commissioner's investigation.

(6) In subsection (3) (power to conduct joint investigations)—

(a) in paragraph (c) for “both” substitute “ a housing ombudsman ”, and

(b) for the words from “jointly” to the end substitute “ jointly with a person within paragraph (a), (b) or (c) who is investigating the complaint or jointly with any two or more such persons. ”

(7) In section 34(1) (interpretation of Part 3) insert at the appropriate place—

“housing ombudsman” means a housing ombudsman under a scheme approved under Schedule 2 to the Housing Act 1996,

(8) In Schedule 2 to the Housing Act 1996 (housing ombudsman schemes) after paragraph 10 insert—

(10A) (1) If at any stage in the course of conducting an investigation under this Act a housing ombudsman forms the opinion that the complaint relates partly to a matter within the jurisdiction of a Local Commissioner, the ombudsman may, subject to sub-paragraph (2), conduct an investigation under this Act jointly with that Commissioner. (2) A housing ombudsman must obtain the consent of the complainant or the complainant's representative before agreeing to a joint investigation referred to in sub-paragraph (1). (3) If a housing ombudsman forms the opinion that a complaint which is being investigated by a Local Commissioner relates partly to a matter within the jurisdiction of the ombudsman, the ombudsman may conduct an investigation jointly with that Commissioner. (4) If a housing ombudsman conducts an investigation jointly with a Local Commissioner, the requirements of paragraph 7 may be satisfied by a report made jointly with that person. (5) A joint report made under this paragraph must distinguish determinations of a housing ombudsman from other findings or recommendations.

Home information packs

Abolition of home information packs

183

(1) Part 5 of the Housing Act 2004 (home information packs) is repealed.

(2) Schedule 18 (home information packs: consequential amendments) has effect.

Tenants' deposits

Tenancy deposit schemes

184

(1) The Housing Act 2004 is amended as follows.

(2) In section 213 (requirements relating to tenancy deposits)—

(a) in subsection (3) (landlord's requirement to comply with initial requirements within 14 days of receipt of deposit) for “14” substitute “ 30 ”, and

(b) in subsection (6)(b) (landlord's requirement to give tenant information within 14 days of receipt of deposit) for “14” substitute “ 30 ”.

(3) Section 214 (proceedings relating to tenancy deposits) is amended as follows.

(4) In subsection (1) (grounds for an application to a county court) for paragraph (a) substitute—

(a) that section 213(3) or (6) has not been complied with in relation to the deposit, or

(5) After subsection (1) insert—

(1A) Subsection (1) also applies in a case where the tenancy has ended, and in such a case the reference in subsection (1) to the tenant is to a person who was a tenant under the tenancy.

(6) In subsection (2) (conditions for a remedy)—

(a) in the opening words for “if on such an application” substitute “ in the case of an application under subsection (1) if the tenancy has not ended and ”, and

(b) for paragraph (a) substitute—

(a) is satisfied that section 213(3) or (6) has not been complied with in relation to the deposit, or

(7) After subsection (2) insert—

(2A) Subsections (3A) and (4) apply in the case of an application under subsection (1) if the tenancy has ended (whether before or after the making of the application) and the court— (a) is satisfied that section 213(3) or (6) has not been complied with in relation to the deposit, or (b) is not satisfied that the deposit is being held in accordance with an authorised scheme, as the case may be.

(8) After subsection (3) insert—

(3A) The court may order the person who appears to the court to be holding the deposit to repay all or part of it to the applicant within the period of 14 days beginning with the date of the making of the order.

(9) In subsection (4) (amount of penalty payment)—

(a) omit “also”, and

(b) for “equal to” substitute “ not less than the amount of the deposit and not more than ”.

(10) Section 215 (sanctions for non-compliance) is amended as follows.

(11) In subsection (1) (prevention of service of notice under section 21 of the Housing Act 1988)—

(a) at the beginning insert “ Subject to subsection (2A), ”, and

(b) for paragraph (b) substitute—

(b) section 213(3) has not been complied with in relation to the deposit.

(12) In subsection (2) (prevention of service of notice under section 21 of the Housing Act 1988) at the beginning insert “ Subject to subsection (2A), ”.

(13) After subsection (2) insert—

(2A) Subsections (1) and (2) do not apply in a case where— (a) the deposit has been returned to the tenant in full or with such deductions as are agreed between the landlord and tenant, or (b) an application to a county court has been made under section 214(1) and has been determined by the court, withdrawn or settled by agreement between the parties.

(14) In Schedule 10 (provisions relating to tenancy deposit schemes) in paragraph 5A(9)(b) (modification of section 213(3)) for “14” substitute “ 30 ”.

Houses in multiple occupation

Exemption from HMO licensing for buildings run by co-operatives

185

(1) In Schedule 14 to the Housing Act 2004 (buildings which are not HMOs for the purposes of that Act (excluding Part 1)) after paragraph 2A insert—

(2B) (1) A building where— (a) the person managing or having control of it is a co-operative society whose rules are such as to secure that each of the conditions set out in sub-paragraph (2) is met, and (b) no person who occupies premises in the building does so by virtue of an assured tenancy, a secure tenancy or a protected tenancy. (2) The conditions are— (a) that membership of the society is restricted to persons who are occupiers or prospective occupiers of buildings managed or controlled by the society, (b) that all management decisions of the society are made by the members (or a specified quorum of members) at a general meeting which all members are entitled to, and invited to, attend, (c) that each member has equal voting rights at such a meeting, and (d) that, if a person occupies premises in the building and is not a member, that person is an occupier of the premises only as a result of sharing occupation of them with a member at the member's invitation. (3) For the purposes of sub-paragraph (1) “co-operative society” means a body that— (a) is registered— (i) as a co-operative society under section 1 of the 1965 Act, or (ii) is a pre-2010 Act society (as defined by section 4A(1) of the 1965 Act) which meets the condition in section 1(2) of the 1965 Act, and (b) is neither— (i) a non-profit registered provider of social housing, nor (ii) registered as a social landlord under Part 1 of the Housing Act 1996. (4) In this paragraph— - “the 1965 Act” means the Co-operative and Community Benefit Societies and Credit Unions Act 1965; - “assured tenancy” has the same meaning as in Part 1 of the Housing Act 1988; - “protected tenancy” has the same meaning as in the Rent Act 1977; - “secure tenancy” has the same meaning as in Part 4 of the Housing Act 1985.

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

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

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

PART 8 — London

CHAPTER 1 — Housing and regeneration functions

Removal of limitations on Greater London Authority's general power

186

(1) Section 31 of the Greater London Authority Act 1999 (limits of the Authority's general power) is amended as follows.

(2) In subsection (3) (prohibition on the Authority incurring expenditure in providing housing or other services) omit paragraph (a) (provision of housing).

(3) Omit subsection (4) (interpretation of reference to provision of housing).

(4) Before subsection (5) insert—

(4A) The reference in subsection (3) above to providing any education services does not include sponsoring Academies or facilitating their sponsorship.

New housing and regeneration functions of the Authority

187

(1) Part 7A of the Greater London Authority Act 1999 is amended as follows.

(2) In the heading to that Part, after “Housing” insert “ and regeneration ”.

(3) Before section 333A insert—

(333ZA) (1) The Authority may acquire land in Greater London compulsorily for the purposes of housing or regeneration. (2) The Authority may exercise the power in subsection (1) only if the Secretary of State authorises it to do so. (3) The power in subsection (1) includes power to acquire new rights over land. (4) Subsection (5) applies where— (a) land forming part of a common, open space or allotment is being acquired under subsection (1), or (b) new rights are being acquired under subsection (1) over land forming part of a common, open space or allotment. (5) The power under subsection (1) includes power to acquire land compulsorily for giving in exchange for that land or those new rights. (6) Part 1 of Schedule 2 to the Housing and Regeneration Act 2008 (compulsory acquisition of land by the Homes and Communities Agency) applies in relation to the acquisition of land under subsection (1) as it applies in relation to the acquisition of land under section 9 of that Act. (7) In that Part of that Schedule as applied by subsection (6)— (a) references to section 9 of that Act are to be read as references to subsection (1), (b) references to the Homes and Communities Agency are to be read as references to the Authority, and (c) references to Part 1 of that Act are to be read as references to this Part. (8) The provisions of Part 1 of the Compulsory Purchase Act 1965 (other than section 31) apply, so far as applicable, to the acquisition by the Authority of land by agreement for the purposes of housing or regeneration. (9) In this section— - “allotment” means any allotment set out as a fuel allotment, or a field garden allotment, under an Inclosure Act; - “common” has the meaning given by section 19(4) of the Acquisition of Land Act 1981; - “open space” means any land which is— 1. laid out as a public garden, 2. used for the purposes of public recreation, or 3. a disused burial ground. (333ZB) (1) Schedule 3 to the Housing and Regeneration Act 2008 (powers in relation to land of the Homes and Communities Agency) applies in relation to the Authority and land held by it for the purposes of housing or regeneration as it applies in relation to the Homes and Communities Agency and its land. (2) In that Schedule as applied by subsection (1)— (a) references to the Homes and Communities Agency are to be read as references to the Authority, and (b) references to the Homes and Communities Agency's land are to the Authority's land held by it for the purposes of housing or regeneration. (3) Schedule 4 to that Act (powers in relation to, and for, statutory undertakers) applies in relation to the Authority and land held by it for the purposes of housing or regeneration as it applies in relation to the Homes and Communities Agency and its land. (4) In that Schedule as applied by subsection (3)— (a) references to the Homes and Communities Agency are to be read as references to the Authority, (b) references to the Homes and Communities Agency's land are to the Authority's land held by it for the purposes of housing or regeneration, (c) references to Part 1 of that Act are to be read as references to this Part, and (d) references to the functions of the Homes and Communities Agency under Part 1 of that Act are to be read as references to the functions of the Authority relating to housing or regeneration. (333ZC) (1) The Authority may not dispose of land held by it for the purposes of housing or regeneration for less than the best consideration which can reasonably be obtained unless the Secretary of State consents. (2) Consent under subsection (1)— (a) may be general or specific; (b) may be given unconditionally or subject to conditions. (3) Subsection (1) does not apply to a disposal by way of a short tenancy if the disposal consists of— (a) the grant of a term of not more than 7 years, or (b) the assignment of a term which, at the date of assignment, has not more than 7 years to run. (4) A disposal of land by the Authority is not invalid merely because any consent required by subsection (1) has not been given. (5) A person dealing with— (a) the Authority, or (b) a person claiming under the Authority, in relation to any land need not be concerned as to whether any consent required by subsection (1) has been given. (333ZD) (1) Sections 17 and 18 of the Housing and Regeneration Act 2008 (power to enter and survey land) apply in relation to the Authority and land in Greater London as they apply in relation to the Homes and Communities Agency and land outside Greater London. (2) In those sections as applied by subsection (1)— (a) references to the Homes and Communities Agency are to be read as references to the Authority, (b) references to land are to land in Greater London, and (c) the reference to a proposal for the Homes and Communities Agency to acquire land is a reference to a proposal for the Authority to acquire land for the purposes of housing or regeneration. (333ZE) (1) Subject to subsection (2), sections 31 to 36 of the Housing and Regeneration Act 2008 (social housing functions) apply in relation to the Authority as they apply in relation to the Homes and Communities Agency. (2) In those sections as applied by subsection (1)— (a) references to the Homes and Communities Agency are to be read as references to the Authority, (b) the definition of “social housing assistance” in section 32(13) is to be read as if the reference to financial assistance given under section 19 of that Act were to financial assistance given by the Authority, (c) section 34 is to be read as if subsection (1) were omitted, and (d) section 35(1) is to be read as if the reference to section 19 of the Housing and Regeneration Act 2008 were omitted and as if the reference in paragraph (b) to a dwelling in England outside Greater London were to a dwelling in Greater London. (3) Sums received by the Authority in respect of repayments of grants made by it for the purposes of social housing are to be used by it for those purposes. (333ZF) (1) The Authority must, in the exercise of its housing and regeneration functions, co-operate with the Regulator of Social Housing (referred to in this Part as “the Regulator”). (2) In particular, the Authority must consult the Regulator on matters likely to interest the Regulator in the exercise of its social housing functions. (3) The Regulator must, in the exercise of its social housing functions, co-operate with the Authority. (4) In particular, the Regulator must consult the Authority on matters likely to interest the Authority in the exercise of its housing and regeneration functions. (333ZG) (1) The Regulator may direct the Authority not to give financial assistance in connection with social housing to a specified registered provider of social housing. (2) A direction may be given if— (a) the Regulator has decided to hold an inquiry into affairs of the registered provider of social housing under section 206 of the Housing and Regeneration Act 2008 (and the inquiry is not concluded), (b) the Regulator has received notice in respect of the registered provider of social housing under section 145 of that Act, or (c) the Regulator has appointed an officer of the registered provider of social housing under section 269 of that Act (and the person appointed has not vacated office). (3) A direction may prohibit the Authority from giving assistance of a specified kind (whether or not in pursuance of a decision already taken and communicated to the registered provider of social housing). (4) A direction may not prohibit grants to a registered provider of social housing in respect of discounts given by the provider on disposals of dwellings to tenants. (5) A direction has effect until withdrawn. (6) In this section the following terms have the same meaning as in Part 2 of the Housing and Regeneration Act 2008— - “disposal” (see section 273 of that Act); - “dwelling” (see section 275 of that Act); - “tenant” (see section 275 of that Act). (333ZH) (1) Subsection (2) applies if the Authority is proposing to give financial assistance on condition that the recipient provides low cost home ownership accommodation. (2) The Authority must consult the Regulator about the proposals. (3) The Authority must notify the Regulator at least 14 days before exercising, in relation to a registered provider of social housing, any of the powers conferred by section 32(2) to (4) of the Housing and Regeneration Act 2008 (recovery etc of social housing assistance). (4) The Authority must consult the Regulator before making a general determination under section 32 or 33 of the Housing and Regeneration Act 2008. (5) For the purposes of this section a person provides low cost home ownership accommodation if (and only if) the person acquires, constructs or converts any housing or other land for use as low cost home ownership accommodation or ensures such acquisition, construction or conversion by another. (6) In this section “low cost home ownership accommodation” has the meaning given by section 70 of the Housing and Regeneration Act 2008. (333ZI) (1) The Authority may do in relation to any property, rights or liabilities, or any undertaking, to which this section applies anything that the Commission for the New Towns or (as the case may be) an urban development corporation could do in relation to the property, rights or liabilities or the undertaking. (2) This section applies to— (a) any property, rights or liabilities that— (i) have been or are to be transferred to the Authority from the Homes and Communities Agency by virtue of section 190 of the Localism Act 2011, and (ii) were transferred to the Homes and Communities Agency from the Commission for the New Towns by virtue of section 51 of and Schedule 6 to the Housing and Regeneration Act 2008, (b) an undertaking, or part of an undertaking, of an urban development corporation that has been or is to be transferred to the Authority by virtue of an agreement under section 165 of the Local Government, Planning and Land Act 1980, (c) any property, rights or liabilities of an urban development corporation that have been or are to be transferred to the Authority by virtue of an order under section 165B of the Local Government, Planning and Land Act 1980, and (d) any property, rights or liabilities that— (i) have been or are to be transferred to the Authority from the Homes and Communities Agency by virtue of section 190 of the Localism Act 2011, and (ii) were transferred to the Homes and Communities Agency from an urban development corporation by virtue of an order under section 165B of the Local Government, Planning and Land Act 1980. (3) In any enactment (whenever passed or made) references to the Authority's new towns and urban development functions are to its functions in relation to any property, rights or liabilities, or any undertaking, to which this section applies (whether exercisable by virtue of this section or otherwise). (4) In subsection (3) “enactment” includes an enactment comprised in subordinate legislation (within the meaning of the Interpretation Act 1978). (333ZJ) (1) The Secretary of State may pay to the Authority grants of such amounts as the Secretary of State may, with the Treasury's consent, determine in respect of the exercise of the Authority's functions relating to housing and regeneration. (2) A grant under this section may be paid at such times, or in such instalments at such times, as the Secretary of State may, with the Treasury's consent, determine. (3) A grant under this section may be made subject to such conditions as the Secretary of State may determine. (4) Conditions under subsection (3) may, in particular, include— (a) provision as to the use of the grant; (b) provision as to the use of any funds generated by activities funded by the grant; (c) provision as to the circumstances in which the whole or part of the grant must be repaid.

(4) After section 333D insert—

(333E) In this Part— - “building” means a building or other structure (including a house-boat or caravan); - “caravan” has the meaning given by section 29(1) of the Caravan Sites and Control of Development Act 1960; - “housing” means a building, or part of a building, occupied or intended to be occupied as a dwelling or as more than one dwelling; and includes a hostel which provides temporary residential accommodation; - “land” includes housing or other buildings (and see also the definition in Schedule 1 to the Interpretation Act 1978); - “the Regulator” has the meaning given by section 333ZF(1); - “social housing” (except as part of the expression “social housing functions”) has the same meaning as in Part 2 of the Housing and Regeneration Act 2008 (see section 68 of that Act).

The London housing strategy

188

(1) Before section 333A of the Greater London Authority Act 1999 (the London housing strategy) insert— “ The London housing strategy ”.

(2) That section is amended as follows.

(3) In subsection (2)(d) for “recommendations” substitute “ proposals ”.

(4) In subsection (3)—

(a) in the opening words for “recommendations” substitute “ proposals ”,

(b) in paragraph (a) for “Homes and Communities Agency” substitute “ Authority ”, and

(b) proposals as to the exercise by the Authority of its functions of giving housing financial assistance (see subsection (4) below);

(5) For subsection (4) substitute—

(4) Proposals under subsection (3)(b) above may include— (a) proposals as to the amount of housing financial assistance to be given for different activities or purposes; (b) proposals as to the number, type and location of houses to be provided by means of housing financial assistance.

(6) In subsection (10) in the definition of “housing financial assistance” for the words from “under” to “2008” substitute “ by the Authority ”.

(7) Section 333D (duties of Homes and Communities Agency) is amended as follows.

(8) In the heading for “Homes and Communities Agency” substitute “ the Authority ”.

(9) In subsection (1) for the words from “Greater London” to “Agency” substitute “ housing or regeneration, the Authority ”.

Modification to the Homes and Communities Agency's functions

189

(1) The Housing and Regeneration Act 2008 is amended as follows.

(2) In section 2(2) (objects of the Homes and Communities Agency) before the definition of “good design” insert—

“England” does not include Greater London;

(3) Section 13 (power of Secretary of State to make designation orders) is amended as follows.

(4) In subsection (1) after “England” insert “ outside Greater London ”.

(5) In subsection (6)—

(a) after “England,” insert “ or ”, and

(b) omit the words from “, a London” to the end of the subsection.

(6) In section 14(7) (content of designation orders) in paragraph (a) of the definition of “relevant functions” omit the words from “, a London” to “of London,”.

(7) In section 26(2) (duty to act as agent in respect of regeneration and development) after “England” insert “ outside Greater London ”.

(8) In section 35(1)(b) (duty to give financial assistance in respect of certain disposals) after “England” insert “ outside Greater London ”.

Transfer of property of Homes and Communities Agency etc

190

(1) The Secretary of State may at any time make a scheme (a “transfer scheme”) transferring the property, rights and liabilities of the Homes and Communities Agency (“the HCA”) or the Secretary of State that are specified in the scheme to—

(a) the Greater London Authority,

(b) a functional body,

(d) the Secretary of State,

(e) a London borough council, or

(f) the Common Council of the City of London.

(2) The Secretary of State may by order specify another person, or a description of other persons, to whom property, rights or liabilities of the HCA or the Secretary of State may be transferred by a transfer scheme.

(3) In this section—

“company” means—a company within the meaning given by section 1(1) of the Companies Act 2006, or a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014 or a society registered or deemed to be registered under the Industrial and Provident Societies Act (Northern Ireland) 1969;

“functional body” has the meaning given by section 424(1) of the Greater London Authority Act 1999;

“rights” and “liabilities” include rights, or (as the case may be) liabilities, in relation to a contract of employment;

“subsidiary” has the meaning given by section 1159 of the Companies Act 2006.

Abolition of London Development Agency and transfer of its property etc

191

(1) The London Development Agency ceases to exist on the day on which this subsection comes into force.

(2) The Secretary of State may at any time make a scheme (a “transfer scheme”) transferring the property, rights and liabilities of the London Development Agency that are specified in the scheme to—

(a) the Greater London Authority,

(b) a functional body,

(d) the Secretary of State,

(e) a London borough council, or

(f) the Common Council of the City of London.

(3) Before making a transfer scheme, the Secretary of State must consult the Mayor of London.

(4) The Secretary of State may by order specify another person, or a description of other persons, to whom property, rights or liabilities of the London Development Agency may be transferred by a transfer scheme.

(5) In this section—

“company” means—a company within the meaning given by section 1(1) of the Companies Act 2006, or a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014 or a society registered or deemed to be registered under the Industrial and Provident Societies Act (Northern Ireland) 1969;

“functional body” has the meaning given by section 424(1) of the Greater London Authority Act 1999;

“rights” and “liabilities” include rights, or (as the case may be) liabilities, in relation to a contract of employment;

“subsidiary” has the meaning given by section 1159 of the Companies Act 2006.

Mayor's economic development strategy for London

192

(1) The Greater London Authority Act 1999 is amended as follows.

(2) After section 333E (which is inserted by section 187) insert—

(333F) (1) The Mayor shall prepare and publish a document to be known as the “Economic development strategy for London”. (2) The Economic development strategy for London is to contain— (a) the Mayor's assessment of the economic conditions of Greater London, and (b) the Mayor's policies and proposals for the economic development and regeneration of Greater London, including the Mayor's strategy for— (i) promoting business efficiency, investment and competitiveness in Greater London, (ii) promoting employment in Greater London, and (iii) enhancing the development of skills relevant to employment in Greater London. The references in this subsection to Greater London include its rural parts as well as its non-rural parts. (3) In preparing or revising the Economic development strategy for London the Mayor must consult— (a) such persons as appear to the Mayor to represent employers in Greater London, and (b) such persons as appear to the Mayor to represent employees in Greater London. (4) Each of the functional bodies must in the exercise of any function have regard to the Economic development strategy for London. (5) The Secretary of State may give guidance to the Mayor about the exercise of the Mayor's functions in relation to the Economic development strategy for London with respect to— (a) the matters to be covered by that strategy or that strategy as revised, and (b) the issues to be taken into account in preparing or revising that strategy. (6) The issues mentioned in subsection (5)(b) above include issues relating to any one or more of the following— (a) Greater London, (b) any area of England outside Greater London, and (c) any part of the United Kingdom outside England. (7) The Mayor is to have regard to any guidance given under subsection (5) above. (8) Where the Secretary of State considers— (a) that the Economic development strategy for London (or any part of it) is inconsistent with national policies, or (b) that the Economic development strategy for London or its implementation is having, or is likely to have, a detrimental effect on any area outside Greater London, the Secretary of State may direct the Mayor to make such revisions of the strategy as may be specified in the direction in order to remove the inconsistency or, as the case may be, the detrimental effect or likely detrimental effect. (9) Where the Secretary of State gives the Mayor a direction under subsection (8) above, the Mayor must revise the Economic development strategy for London in accordance with the direction. (10) Where the Mayor revises the Economic development strategy for London in accordance with subsection (9) above, subsection (3) above and section 42 above do not apply. (11) For the purposes of subsection (8) above “national policies” are any policies of Her Majesty's government which are available in a written form and which— (a) have been laid or announced before, or otherwise presented to, either House of Parliament, or (b) have been published by a Minister of the Crown.

(3) In section 41(1) (strategies to which section applies) for paragraph (b) (the London Development Agency strategy) substitute—

(b) the Economic development strategy for London prepared and published under section 333F below,

Transfer schemes: general provisions

193

(1) In this section—

“transfer scheme” means a scheme under section 190(1) or 191(2);

“transferee”, in relation to a transfer scheme, means the person to whom property, rights or liabilities are transferred by the scheme;

“transferor”, in relation to a transfer scheme, means the person from whom property, rights or liabilities are transferred by the scheme.

(2) The things that may be transferred under a transfer scheme include—

(a) property, rights or liabilities that could not otherwise be transferred;

(b) property acquired, and rights and liabilities arising, after the making of the scheme.

(3) A transfer scheme may make consequential, supplementary, incidental or transitional provision and may in particular—

(a) make provision for certificates issued by the Secretary of State to be conclusive evidence that property has been transferred;

(b) create rights, or impose liabilities, in relation to property or rights transferred;

(c) make provision about the continuing effect of things done (or having effect as if done) by or in relation to the transferor in respect of anything transferred;

(d) make provision about the continuation of things (including legal proceedings) in the process of being done by, on behalf of or in relation to the transferor in relation to anything transferred;

(e) make provision for references to the transferor in an instrument or other document in respect of anything transferred to be treated as references to the transferee;

(f) make provision for the shared ownership or use of property;

(g) provide for section 36(3)(c) of the London Olympic Games and Paralympic Games Act 2006 to continue (until repealed) to apply to land transferred to which it applied immediately before the transfer.

(4) The Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246) apply to a transfer under a transfer scheme where the transfer relates to rights or liabilities under a contract of employment (whether or not it is a relevant transfer for the purposes of those regulations).

(5) A transfer scheme may provide—

(a) for modifications by agreement;

(b) for modifications to have effect from the date when the original scheme came into effect.

(6) In this section “rights” and “liabilities” include rights, or (as the case may be) liabilities, in relation to a contract of employment.

Power to make consequential etc provision

194

(1) The Secretary of State may by order make such consequential provision or such transitory or transitional provision or savings as the Secretary of State considers appropriate for the purposes of or in consequence of this Chapter.

(2) The provision that may be made under subsection (1) includes, in particular—

(a) provision for things done (or having effect as if done) by or in relation to a predecessor to have effect as if done by or in relation to a successor;

(b) provision about the continuation by, on behalf of or in relation to a successor of things (including legal proceedings) in the process of being done by, on behalf of or in relation to a predecessor;

(c) provision for references to a predecessor in an instrument or other document to be treated as references to a successor.

(3) In subsection (2)—

“predecessor” means a person from whom property, rights or liabilities may be transferred by a scheme under section 190(1) or 191(2);

“successor” means a person to whom property, rights or liabilities may be transferred by a scheme under section 190(1) or 191(2).

Consequential amendments

195

(1) Schedule 19 (housing and regeneration: consequential amendments) has effect.

(2) Schedule 20 (amendments in consequence of the abolition of the London Development Agency) has effect.

CHAPTER 2 — Mayoral development corporations

Introductory

Interpretation of Chapter

196

In this Chapter—

“the Mayor” means the Mayor of London;

“MDC” means a Mayoral development corporation (see section 198).

Establishment and areas

Designation of Mayoral development areas

197

(1) The Mayor may designate an area of land in Greater London as a Mayoral development area.

(2) Separate parcels of land may be designated as one Mayoral development area.

(2A) An area of land designated under subsection (1)—

(a) may include any area (the “overlap area”) that is, or forms part of, an area of land that has already been designated (the “previously designated area”) under—

(i) section 1ZB(2) of the New Towns Act 1981 (designation of locally-led new town in England), or

(ii) section 134(1B) of the Local Government, Planning and Land Act 1980 (designation of locally-led urban development area);

(b) may not include any area that is, or forms part of, an area that is designated under—

(i) section 1 of the New Towns Act 1981 (designation of new town area by Secretary of State), or

(ii) section 134(1) of the Local Government, Planning and Land Act 1980 (designation of urban development area by Secretary of State).

(See also section 1(3ZB) and (3ZC) of the New Towns Act 1981 and section 134(1E) and (1F) of the Local Government, Planning and Land Act 1980.)

(2B) Where the Mayor designates an area as mentioned in subsection (2A)(a), the Secretary of State must make regulations providing that the overlap area no longer forms part of the previously designated area.

(2C) The regulations may also—

(a) amend any order relating to the previously designated area to show the new boundaries of the area, which may reflect not only the removal of the overlap area but also any other changes that are necessary or appropriate in consequence of its removal;

(b) provide for the transfer of functions relating to the overlap area to the development corporation established for the purposes of the Mayoral development area;

(c) where the overlap area completely covers the previously designated area, provide for the dissolution of the development corporation for the previously designated area.

(2D) The Secretary of State may, in connection with regulations under this section, make one or more schemes for the transfer of property, rights and liabilities relating to the overlap area to the development corporation established for the purposes of the Mayoral development area (see also section 218 (transfer schemes: general provisions)).

(3) The Mayor may designate a Mayoral development area only if—

(a) the Mayor considers that designation of the area is expedient for furthering any one or more of the Greater London Authority's principal purposes,

(b) the Mayor has consulted the persons specified by subsection (4),

(d) in the event that those comments include comments made by the London Assembly or a consultee under subsection (4)(d), (e), (f) or (g) that are comments that the Mayor does not accept, the Mayor has published a statement giving the reasons for the non-acceptance,

(e) the Mayor has laid before the London Assembly, in accordance with standing orders of the Greater London Authority, a document stating that the Mayor is proposing to designate the area, and

(f) the consideration period for the document has expired without the London Assembly having rejected the proposal.

(4) The persons who have to be consulted before an area may be designated are—

(a) the London Assembly,

(b) each constituency member of the London Assembly whose Assembly constituency contains any part of the area,

(d) each London borough council whose borough contains any part of the area,

(e) the Common Council of the City of London if any part of the area is within the City,

(f) the sub-treasurer of the Inner Temple if any part of the area is within the Inner Temple,

(g) the under treasurer of the Middle Temple if any part of the area is within the Middle Temple, and

(h) any other person whom the Mayor considers it appropriate to consult.

(5) For the purposes of subsection (3)(f)—

(a) the “consideration period” for a document is the 21 days beginning with the day the document is laid before the London Assembly in accordance with standing orders of the Greater London Authority, and

(b) the London Assembly rejects a proposal if it resolves to do so on a motion—

(i) considered at a meeting of the Assembly throughout which members of the public are entitled to be present, and

(ii) agreed to by at least two thirds of the Assembly members voting.

(6) If the Mayor designates a Mayoral development area, the Mayor must—

(a) publicise the designation,

(b) notify the Secretary of State of the designation, and

(7) Section 30(2) of the Greater London Authority Act 1999 (interpretation of references to the Authority's principal purposes) applies for the purposes of subsection (3)(a).

Mayoral development corporations: establishment

198

(1) Subsection (2) applies if the Secretary of State receives notification under section 197(6) of the designation of a Mayoral development area.

(2) The Secretary of State must by order—

(a) establish a corporation for the area,

(b) give the corporation the name notified to the Secretary of State by the Mayor, and

(c) give effect to any decisions notified under section 202(8) (decisions about planning functions, but see also sections 199(4) and 214(6) as regards other decisions to which effect has to be given).

(3) A corporation established under subsection (2) is a Mayoral development corporation.

(4) A Mayoral development corporation is a body corporate having the name given to it by the order establishing it.

(5) In exercising power under subsection (2) to make provision of the kind mentioned in section 235(2)(b), the Secretary of State is to have regard to any relevant representations received from the Mayor.

(6) Schedule 21 (further provision about MDCs) has effect.

Exclusion of land from Mayoral development areas

199

(1) The Mayor may alter the boundaries of a Mayoral development area so as to exclude any area of land.

(2) Before making an alteration, the Mayor must consult—

(a) the London Assembly, and

(b) any other person whom the Mayor considers it appropriate to consult.

(3) If the Mayor makes an alteration, the Mayor must—

(a) publicise the alteration,

(b) notify the Secretary of State of the alteration, and

(4) If the Secretary of State receives notification under subsection (3) of an alteration, the Secretary of State must give effect to the alteration—

(a) when making the order under section 198(2) that establishes an MDC for the Mayoral development area concerned, or

(b) by exercising the power to amend that order (see section 14 of the Interpretation Act 1978).

Transfers of property etc to a Mayoral development corporation

200

(1) The Secretary of State may at any time make a scheme transferring to an MDC property, rights and liabilities of a person within subsection (3).

(2) Before making a scheme under subsection (1), the Secretary of State must consult—

(a) the person whose property, rights or liabilities would be transferred, and

(b) the Mayor.

(3) A person is within this subsection if the person is—

(a) a London borough council,

(b) the Common Council of the City of London in its capacity as a local authority,

(d) a development corporation established under the New Towns Act 1981 for a new town all or part of whose area is in Greater London,

(e) an urban development corporation for an urban development area all or part of which is in Greater London,

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

(h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(i) a Minister of the Crown or a government department,

(j) any company all the shares in which are held by a Minister of the Crown, or

(k) any company whose members—

(i) include the Mayor and a Minister of the Crown, and

(ii) do not include anyone who is neither the Mayor nor a Minister of the Crown.

(4) The Mayor may at any time make a scheme transferring to an MDC property, rights and liabilities of—

(a) the Greater London Authority,

(b) a functional body other than that MDC, or

(5) The Mayor must publish a scheme under subsection (4) as soon after it is made as is reasonably practicable.

(6) The Secretary of State may by order specify another person, or a description of other persons, from whom property, rights or liabilities may be transferred under subsection (1) or (4).

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

(9) In subsection (4)(c)—

“company” means—a company within the meaning given by section 1(1) of the Companies Act 2006, or a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014 or a society registered or deemed to be registered under the Industrial and Provident Societies Act (Northern Ireland) 1969, and

“subsidiary” has the meaning given by section 1159 of the Companies Act 2006.

(10) In this section—

“functional body” has the meaning given by section 424(1) of the Greater London Authority Act 1999;

“Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975;

“public authority” means a public body or a Minister of the Crown or other holder of a public office;

“urban development corporation” means a corporation established by an order under section 135 of the Local Government, Planning and Land Act 1980.

Object and main power

Object and powers

201

(1) The object of an MDC is to secure the regeneration or development of its area.

(1A) In pursuing that object, an MDC must aim to contribute to—

(a) the achievement of sustainable development, and

(b) the mitigation of, and adaptation to, climate change.

(1B) For the purposes of subsection (1A), an MDC must (in particular) have regard to the desirability of good design.

(2) An MDC may do anything it considers appropriate for the purposes of its object or for purposes incidental to those purposes.

(3) In this section “specific power”, in relation to an MDC, means any of the MDC's powers other than its powers under subsection (2).

(4) An MDC's specific powers are to be exercised for the purposes of its object or for purposes incidental to those purposes.

(5) Each of an MDC's specific powers may be exercised separately or together with, or as part of, another of its specific powers.

(6) None of an MDC's specific powers limits the scope of its other specific powers.

(7) None of an MDC's specific powers limits the scope of its powers under subsection (2).

(8) But—

(a) subsections (4) and (5) do not apply to an MDC in its capacity as a local planning authority as a result of decisions under section 202 or in its exercise of other functions as a result of decisions under that section,

(b) subsection (4) does not apply to the exercise of a function by an MDC in consequence of an authorisation under section 38 of the Greater London Authority Act 1999 (delegation by Mayor), and

(c) the powers conferred by subsection (2) must not be used to override a restriction imposed on the exercise of a specific power.

Planning and infrastructure functions

Functions in relation to Town and Country Planning

202

(1) Subsections (2) to (4) apply if the Mayor designates a Mayoral development area.

(2) The Mayor may decide that the MDC for the area (“the MDC”) is to be the local planning authority, for the whole or any portion of the area, for the purposes of any one or more of the following—

(a) Part 3 of the Town and Country Planning Act 1990,

(b) Part 2 of the Planning and Compulsory Purchase Act 2004, and

(3) The Mayor may decide that the MDC is to have, in the whole or any portion of the area, the functions conferred on the local planning authority by the provisions mentioned in Part 1 of Schedule 29 to the Local Government, Planning and Land Act 1980.

(3A) The Mayor may decide that the MDC is to be the minerals and waste planning authority, for the whole or any portion of the area, for the purposes of Part 2 of the Planning and Compulsory Purchase Act 2004.

(4) The Mayor may decide that the MDC is to have, in the whole or any portion of the area, the functions conferred on the relevant planning authority by Schedule 8 to the Electricity Act 1989 so far as applying to applications for consent under section 37 of that Act.

(5) If the Mayor makes a decision under subsection (3), the Mayor may decide that the provisions specified in Part 2 of Schedule 29 to the Local Government, Planning and Land Act 1980 are to have effect, in relation to land in the whole or any portion of the area and to the MDC, subject to the modifications specified in that Part of that Schedule , with the further modification that any reference in that Part of that Schedule to an urban development corporation is to be read as a reference to an MDC.

(6) The Mayor may, at any time before the order establishing the MDC is made, decide that a decision under any of subsections (2) to (5) (whether as originally made or as varied under this subsection) should be subject to variations specified in the decision under this subsection.

(7) The Mayor may make a decision under any of subsections (2) to (6) only if—

(a) the Mayor has consulted the persons specified by section 197(4) in relation to the area,

(b) the Mayor has had regard to any comments made in response by the consultees, and

(c) in the event that those comments include comments made by the London Assembly or an affected local authority that are comments that the Mayor does not accept, the Mayor has published a statement giving the reasons for the non-acceptance.

In paragraph (c) “affected local authority” means a person specified by section 197(4)(d), (e), (f) or (g) in relation to the area.

(8) If the Mayor makes a decision under any of subsections (2) to (6), the Mayor must—

(a) publicise the decision, and

(b) notify the Secretary of State of the decision.

(9) A decision under subsection (2), or a decision under subsection (6) varying a decision under subsection (2), may make different provision for different portions of the area.

(10) For the purposes of subsection (6) “variation”, in relation to a decision, includes a variation that involves—

(a) revocation of all or part of the decision, or

(b) substitution of something new for all or part of the decision, including substitution of something wholly unlike what it replaces.

Arrangements for discharge of, or assistance with, planning functions

203

(1) Where an MDC, as a result of being the local planning authority for purposes of Part 3 of the Town and Country Planning Act 1990 in relation to any area, has functions in place of a London borough council or the Common Council of the City of London, the MDC may make arrangements for the discharge of any of those functions by that council.

(2) Where arrangements are in force under subsection (1) for the discharge of any functions of an MDC by a council—

(a) that council may arrange for the discharge of those functions by a committee, sub-committee or officer of the council, and

(b) section 101(2) of the Local Government Act 1972 (delegation by committees and sub-committees) applies in relation to those functions as it applies in relation to the functions of that council.

(3) Arrangements under subsection (1) for the discharge of any functions do not prevent the MDC from exercising those functions.

(4) Subsection (5) applies where an MDC, as a result of being the local planning authority for purposes of Part 2 or 3 of the Planning and Compulsory Purchase Act 2004 , or the minerals and waste planning authority for the purposes of Part 2 of that Act, in relation to any area, has functions in place of a London borough council or the Common Council of the City of London.

(5) The MDC may seek from that council, and that council may give, assistance in connection with the MDC's discharge of any of those functions.

Removal or restriction of planning functions

204

(1) This section applies if an order establishing an MDC (“the MDC”) has been made.

(2) The Mayor may decide in relation to a function conferred on the MDC as a result of a decision under section 202(2), (3) , (3A) or (4)—

(a) that the MDC is to cease to have the function, whether in all respects or in respects specified in the decision, or

(b) that the exercise of the function by the MDC is to be subject to restrictions specified in the decision.

(3) If the Mayor makes a decision under subsection (2) (“the new decision”), the Mayor may decide that any provision made under section 198(2) in consequence of a decision under section 202(5) should, in consequence of the new decision, be amended or revoked as specified in the decision under this subsection.

(4) A reference in subsection (2) or (3) to a decision under a provision of section 202 is, where that decision has been varied (whether once or more than once) under section 202(6), a reference to that decision as varied.

(5) If the Mayor makes a decision under subsection (2) or (3), the Mayor must—

(a) publicise the decision, and

(b) notify the Secretary of State of the decision.

(6) The Secretary of State must give effect to a decision notified under subsection (5) by exercising the power to amend the order under 198(2) that establishes the MDC (see section 14 of the Interpretation Act 1978).

Powers in relation to infrastructure

205

(1) An MDC may provide infrastructure.

(2) An MDC may facilitate the provision of infrastructure.

(3) In this section “provide” includes provide by way of acquisition, construction, conversion, improvement or repair (and “provision” is to be read in the same way).

(4) In this section “infrastructure” means—

(a) water, electricity, gas, telecommunications, sewerage or other services including heat networks within the meaning of section 216 of the Energy Act 2023,

(b) roads or other transport facilities,

(d) health, educational, employment or training facilities,

(e) social, religious or recreational facilities,

(f) cremation or burial facilities, and

(g) community facilities not falling within paragraphs (a) to (f).

Land functions

Powers in relation to land

206

(1) An MDC may regenerate or develop land.

(2) An MDC may bring about the more effective use of land.

(3) An MDC may provide buildings or other land.

(4) An MDC may carry out any of the following activities in relation to land—

(a) acquiring, holding, improving, managing, reclaiming, repairing or disposing of buildings, other land, plant, machinery, equipment or other property,

(b) carrying out building and other operations (including converting or demolishing buildings), and

(5) An MDC may facilitate—

(a) the regeneration or development of land,

(b) the more effective use of land,

(d) the carrying out of activities mentioned in subsection (4).

(6) In this section—

(a) a reference to a “building” is a reference to—

(i) a building or other structure (including a house-boat or caravan), or

(ii) any part of something within sub-paragraph (i);

(b) “develop” includes redevelop (and “development” includes redevelopment);

(d) “provide” includes provide by way of acquisition, construction, conversion, improvement or repair (and “provision” is to be read in the same way).

Acquisition of land

207

(1) An MDC may by agreement acquire land in its area or elsewhere.

(2) An MDC may acquire land in its area, or elsewhere in Greater London, compulsorily if the Secretary of State authorises it to do so.

(3) An MDC must obtain the consent of the Mayor of London before submitting a compulsory purchase order authorising an acquisition under subsection (2) to the Secretary of State for confirmation.

(4) The power under subsection (2) includes power to acquire new rights over land.

(5) Subsection (6) applies where—

(a) land forming part of a common, open space or allotment is being acquired under subsection (2), or

(b) new rights are being acquired under subsection (2) over land forming part of a common, open space or allotment.

(6) The power under subsection (2) includes power to acquire land compulsorily for giving in exchange for that land or those new rights.

(7) Part 1 of Schedule 2 to the Housing and Regeneration Act 2008 (compulsory acquisition of land by the Homes and Communities Agency) applies in relation to the acquisition of land under subsection (2) as it applies in relation to the acquisition of land under section 9 of that Act.

(8) In that Part of that Schedule as applied by subsection (7)—

(a) references to section 9 of that Act are to be read as references to subsection (2),

(b) references to the Homes and Communities Agency are to be read as references to the MDC concerned, and

(9) The provisions of Part 1 of the Compulsory Purchase Act 1965 (other than section 31) apply, so far as applicable, to the acquisition by an MDC of land by agreement.

(10) In subsection (5)—

“allotment” means any allotment set out as a fuel allotment, or a field garden allotment, under an Inclosure Act;

“common” has the meaning given by section 19(4) of the Acquisition of Land Act 1981;

“open space” means any land which is—laid out as a public garden,used for the purposes of public recreation, ora disused burial ground.

Powers in relation to acquired land

208

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