§ Mr. LeighTo ask the Secretary of State for the Environment what is his policy relating to requests for his consent under section 105 of the Housing Act 1988 to sales of transferred property, where a disposal cost was attributable to that property on transfer.
§ Mr. ChopeSubject to certain exemptions, notably sales under the right to buy, section 105 of the Housing Act 1988 provides that new landlords under part IV of the Act—tenants' choice—may not dispose of property acquired by them under part IV from a public sector landlord, except with the consent of the Secretary of State.
§ Mr. ChopeSubject to certain exemptions, notably sales under the right to buy, section 105 of the Housing Act 1988 provides that new landlords under part IV of the Act—tenants' choice—may not dispose of property acquired by them under part IV from a public sector landlord, except with the consent of the Secretary of State.
The statutory arrangements for valuation of property transferring under part IV take into account the cost of any works needed to bring property up to the state of repair required by the public sector landlord's repairing obligations. Where there is a disposal cost—"dowry"—however, the valuation cannot make provision for any additional works of improvements going beyond repair. Tenants may wish these to be carried out, particularly where the properties are below current accepted standards of amenity, as may be the case where dowries are payable. Disposals of some transferred assets may offer a prospect
My right hon. Friend will consider applications made to him for disposal consent on their merits, having regard to all the circumstances of the case. However, in instances where a dowry was attributable to the property under section 99 of the Act, he will, in principle, be prepared to entertain such applications, where proceeds from the disposals are to be used to fund improvements to, or demolition and replacement of, other acquired dwellings, for continued letting at rents within the reach of those in low-paid employment.
894WMy right hon. Friend is also required, by section 105(4) of the Act, before giving consent to satisfy himself that appropriate steps have been taken to consult any tenants of the property to be disposed of, and to have regard to their responses.
Under section 105(4) as amended, my right hon. Friend may impose conditions on his consent, requiring the new landlord to make a payment to the public sector landlord from whom he acquired the property. Again, he will consider individual cases on their merits. However, it is his general intention that the new landlord should be required to pay to the public sector landlord the excess of any proceeds of the disposal over the amount reasonably required to fund works appropriate to the circumstances, after allowing for any contribution which might he made from projected rental income, dowry payments, or right-to-buy sale proceeds in excess of those assumed in determination of the dowry.