HL Deb 20 October 2004 vol 665 cc903-4

(1) Section 16 applies in relation to a dwelling ("a funded dwelling") provided or acquired wholly or in part by means of a grant under section 27A (grants to bodies other than registered social landlords) with the following modifications.

(2) In section 16(1) the reference to a registered social landlord includes a reference to any person to whom a grant has been paid under section 27A.

(3) In section 16(2) and (4) any reference to section 18 includes a reference to section 27A.

(4) For the purposes of section 16 a funded dwelling is to be regarded as having remained within the social rented sector in relation to any relevant time if, since it was acquired or provided as mentioned in subsection (1) above, it was used—

  1. (a) by the recipient of the grant mentioned in that subsection, or
  2. (b) if section 27B applies in relation to the grant, by each person to whom the grant was, or is treated as having been, paid,
exclusively for the purposes for which the grant was made or any other purposes agreed to by the Relevant Authority.

(5) In subsection (4) "relevant time" means a time when the dwelling would not be treated as being within the social rented sector by virtue of section I6(3).""

On Question, amendment agreed to.

Lord Rooker moved Amendment No. 214:

After Clause 208, insert the following new clause—

"Rights of pre-emption in connection with assured tenancies

(1) Section 5 of the Housing Act 1988 (security of tenure for assured tenants) is amended as follows.

(2) After subsection (5) (certain obligations etc. of tenant to be unenforceable) insert—

"(5A) Nothing in subsection (5) affects any right of pre-emption

  1. (a) which is exercisable by the landlord under a tenancy in circumstances where the tenant indicates his intention to dispose of the whole of his interest under the tenancy, and
  2. (b) in pursuance of which the landlord would be required to pay, in respect of the acquisition of that interest, an amount representing its market value.
Dispose" means dispose by assignment or surrender, and "acquisition" has a corresponding meaning.

(3) The amendment made by subsection (2) does not apply in relation to any right of pre-emption granted before the clay on which this section comes into force."

The noble Lord said: My Lords, Amendment No. 214 prevents rights of first refusal in assured tenancies from being caught by Section 5 of the Housing Act 1988, which protects the security of tenure of assured tenants. The effect will be to enable landlords of shared ownership properties to include rights of first refusal in their shared ownership leases. It will help retain affordable housing that might otherwise move into the open market. It will also allow a registered social landlord to retain a sensible management role and provide new subsidy where an owner has "staircased up" to a significant level of ownership.

Amendment No. 241 in the group simply deals with the commencement of the new clause relating to the rights of pre-emption. I beg to move.

On Question, amendment agreed to.

Lord Rooker moved Amendment No. 215:

After Clause 209, insert the following new clause—