Section 32 of the Housing Act 1985

Section 25 of the Local Government Act 1988

(Local Authority Assistance for Privately Let Housing)

The General Housing

Consents 2005

Section 32 of the Housing Act 1985

Section 25 of the Local Government Act 1988

(Local Authority Assistance for

Privately Let Housing)

March 2005

Office of the Deputy Prime Minister: London

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The general consents

for the disposal of

houses and land 2005

A. The general consent for the disposal of

Part II dwelling-houses

The First Secretary of State (“the Secretary of State”), in exercise of his powers

under sections 32(2), 33(2) and 34 of the Housing Act 1985 and section 133(1) of

the Housing Act 1988 and of all other powers enabling him in that behalf, hereby

gives to all local authorities in England the following general consent:

A1.2 This consent does not apply to a disposal of a dwelling-house to a tenant (whether

alone or with someone else) who has the right to buy it given by section 118 of the

Housing Act 1985.

11 February 1999 is hereby revoked.

A2.1 References in this consent to a section, Part or Schedule are, except where the

contrary appears, references to the Housing Act 1985.

A2.2 In this consent:

“disposal”, in the case of a disposal by the local authority, means (except where the

contrary appears):

(a) a conveyance of a freehold interest;

(b) an assignment of a lease;

(c) the grant of a lease for a term of at least 99 years;

(d) where the interest held by the local authority is leasehold, the grant of a lease for

a term equal to the unexpired term of the lease less not more than one year; and

(e) where a building contains two or more dwelling-houses and the local authority

has granted such a lease as described in sub-paragraph (c) or (d) of one of

them after 11 June 1981, the grant of a lease of another of the dwelling-houses

expiring either:

(i) where one such lease has been granted, at the end of the term of that lease, or

(ii) where more than one such lease has been granted, at the end of the term of

the last to expire,

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and “dispose” shall be construed accordingly;

“dwelling-house” means a house or flat, including any yard, garden, out-houses and

appurtenances belonging to or usually enjoyed with it, held for the purposes of

Part II;

“financial year” means the twelve months ending on 31 March;

“flat” and “house” have the same meanings as in section 183;

“long lease” has the meaning given in section 7 of the Leasehold Reform, Housing

and Urban Development Act 1993;

“market value” shall be determined in accordance with Appendix 1;

“member of the family” has the same meaning as in section 113;

“period of approved tenancy” means the period which under section 129 would be

taken into account in accordance with Schedule 4 if the tenant were exercising the

right to buy under section 118 and as if, in that Schedule:

(a) “the relevant time” meant the date by reference to which the market value of

the dwelling-house being disposed of is assessed; and

(b) in the case of a disposal to a Schedule 1 tenant, “the secure tenant” meant the

Schedule 1 tenant;

“priority purchaser” has the meaning given in Appendix 2;

“qualifying period” means the minimum period which, taken into account in

accordance with Schedule 4, is necessary under section 119 for the right to buy to

arise, and as if, in that Schedule:

(a) “the relevant time” meant the date by reference to which the market value of

the dwelling-house being disposed of is assessed; and

(b) in the case of a disposal to a Schedule 1 tenant, “the secure tenant” meant the

Schedule 1 tenant;

“qualifying tenant” has the meaning given in sub-sections(1) to (4) of section 5 of

the Leasehold Reform, Housing and Urban Development Act 1993;

“registered social landlord” has the same meaning as in Part I of the Housing Act 1996;

“Schedule 1 tenant” means a tenant who would be a secure tenant but for any of

paragraphs 2 to 11 of Schedule 1;

“secure tenancy” and “secure tenant” have the same meanings as in Part IV;

“tenancy” includes a licence to occupy and related expressions are to be construed

accordingly;

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“the right of pre-emption” means a condition precluding the disposal of the land by

the transferee unless:

(a) he first notifies the local authority of the proposed disposal and offers to dispose

of the land to the authority, and

(b) the authority refuses the offer or fails to accept it within one month of it being

made; and

“vacant”, in relation to a dwelling-house, means a dwelling-house which is not the

subject of a tenancy to occupy granted by the local authority.

A3.1 A local authority may, subject to the provisions of this consent, dispose of a vacant

dwelling-house to an individual, who intends to use it as his only or principal

home, for a consideration equal to its market value.

A3.2 A local authority may, subject to the provisions of this consent, dispose of a vacant

dwelling-house to any person for a consideration equal to its market value, where

the dwelling-house is in need of substantial works of repair, improvement or

conversion and that person enters into a covenant to carry out those works and

then to dispose of the dwelling-house or any dwelling-house created from it to an

individual who intends to use it or any dwelling-house created from it as his only

or principal home.

A3.3 A local authority may, subject to the provisions of this consent, dispose of a vacant

dwelling-house to a priority purchaser, who intends to use it as his only or principal

home, for a consideration equal to its market value less a discount of:

(a) in the case of a house (other than a house which is a defective dwelling within

the meaning of Part XVI), not more than 50 per cent, provided that:

(i) the house is in need of works of repair or improvement which, in the

opinion of the authority, would cost more than £5,000 (excluding value

added tax) if carried out by a contractor; and

(ii) the purchaser enters into a covenant to carry out those works (whether

wholly or partly with his own labour or otherwise) by not later than two

years after the disposal;

(b) in any other case, not more than the amount of discount which would be

applicable if the tenant was acquiring the dwelling-house under Part V.

A3.4 A local authority may, subject to the provisions of this consent, dispose of a vacant

dwelling-house to a secure tenant, who intends to use it as his only or principal

home and who would have the right to buy it given by section 118 if he had a

tenancy of it, at a price which is not less than that which would be payable were

he acquiring it under that right.

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A3.5.1 A local authority may, subject to the provisions of this consent, dispose of a vacant

dwelling-house to an individual who:

(a) falls within the description in paragraph A3.5.2; and

(b) intends to use the dwelling-house as his only or principal home; and

(c) is acquiring it for the consideration described in paragraph A3.5.3.

A3.5.2 The individual:

(a) is the tenant of a flat under a lease which was granted to him by the authority

pursuant to Part V, or with a consent given by the Secretary of State to local

authorities generally under section 32 or 43, with the benefit of a discount of

not less than 44 per cent; or

(b) succeeded, by virtue of a disposal of a description falling within paragraph (a),

(b) or (c) of section 160(1), to the interest of a tenant in such a lease.

A3.5.3 The consideration consists of:

(a) the assignment or surrender to the authority of the lease referred to in paragraph

A3.5.2; and

(b) the payment of the amount, if any, by which the market value of the dwellinghouse

exceeds the aggregate of:

(i) the price paid on the grant of the lease referred to in paragraph A3.5.2; and

(ii) a percentage determined by the authority (which may be nil) of the market

value of the dwelling-house of, in the case of a flat which has been

previously let, not more than 40 per cent and, in any other case, not more

than 30 per cent.

A4 A local authority may, subject to the provisions of this consent, dispose of a

dwelling-house to a secure tenant or a Schedule 1 tenant of that dwelling-house for

a consideration equal to its market value or to its market value less a discount of:

(a) where the period of approved tenancy is less than the qualifying period, not

more than the amount of discount which would be applicable if the period of

approved tenancy equalled the qualifying period and the tenant were acquiring

the dwelling-house under Part V;

(b) where the period of approved tenancy exceeds the qualifying period, not more

than the amount of discount which would be applicable if the tenant was

acquiring the dwelling-house under Part V.

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A5.1.1 A local authority may, subject to the provisions of this consent, dispose of one vacant

house or vacant flat or vacant converted house to any individual for a consideration

equal to its market value, provided that the purchaser (alone or with others) has

not, under the consent in this paragraph A5.1.1, acquired another dwelling-house

from the authority previously in the same financial year.

A5.1.2 In paragraph A5.1.1 above, a “converted house” means a house which was not

constructed by or for any local authority and has been subsequently converted (by

any person) into flats.

A5.2.1 A local authority may, subject to the provisions of this consent, dispose of a

dwelling-house to a registered social landlord for the best consideration that can

reasonably be obtained, where:

(a) the dwelling-house is in need of substantial works of repair, improvement or

conversion; and

(b) the dwelling-house is vacant or already let by the authority to the registered

social landlord; and

(c) the aggregate number of dwelling-houses comprised in the disposal and any

previous disposal by the authority in the same financial year under the consent

in paragraph A5.2.1 does not exceed a number (in this paragraph referred to as

“the ceiling”) equal to the greater of 50 or one quarter of one per cent of the

number of dwelling-houses owned by the local authority at the commencement

of the financial year in which the disposal takes place. A certificate that the

aggregate number of dwelling-houses so disposed of does not exceed the ceiling,

given by the chief executive or chief financial officer or chief legal officer of the

authority (whatever the actual titles of those officers) shall be conclusive for the

purposes of this paragraph.

A5.2.2 For the purposes of paragraph A5.2.1, a disposal includes the grant of a lease of

any duration.

A5.3.1 A local authority may, subject to the provisions of this consent, dispose of a

building held for the purposes of Part II to any individual for the best consideration

that can reasonably be obtained, where:

(a) The building was not constructed by or for any local authority for the purpose

of providing housing accommodation; and

(b) the building consists of residential accommodation and non-residential

accommodation; and

(c) all or most of the ground floor consists of non-residential accommodation; and

(d) the residential accommodation is vacant or let with the non-residential

accommodation under a tenancy to which Part II of the Landlord and Tenant

Act 1954 applies.

A5.3.2 For the purposes of paragraph A5.3.1, a disposal includes the grant of a lease of

any duration.

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A5.4.1 A local authority may, subject to the provisions of this consent, dispose of a

dwelling-house to any person (the “acquirer”) for the best consideration that can

reasonably be obtained, where:

(a) the acquirer intends to use the dwelling-house as housing accommodation for

occupation by persons who have a special need arising from disablement, past

or present dependence on alcohol or drugs, past or present mental disorder, or

fear of domestic violence; and

(b) the dwelling-house is vacant or the subject of a lease previously granted by the

authority to the acquirer.

A5.4.2 For the purposes of paragraph A5.4.1, a disposal includes the grant of a lease of

any duration.

A5.4.3 A disposal under paragraph A5.4.1 may reserve the right of pre-emption.

A5.5 A local authority may, subject to the provisions of this consent:

(a) in the case of houses, extend a long lease or grant a long lease to a tenant who

has held a long lease of the house for a period of at least two years, for a premium

calculated in accordance with section 9 of the Leasehold Reform Act 1967; and

(b) in the case of flats, extend a long lease or grant a new long lease to a qualifying

tenant who has held a long lease of the flat for a period of at least two years,

for a premium calculated in accordance with Schedule 13 to the Leasehold

Reform, Housing and Urban Development Act 1993.

A6 Where a dwelling-house is disposed of at a discount to its market value:

(a) the discount shall not reduce the price by more than such sum as may be

prescribed under section 131(2) at the date on which the market value of the

dwelling-house is assessed;

(b) except where the dwelling-house has been included in a scheme under section

429, the discount shall not reduce the price below the minimum price that

would apply under section 131(1) if the date referred to in sub-paragraph (a)

were the relevant time for the purposes of that section; and

(c) where the disposal is of a dwelling-house let with business accommodation,

the discount shall be calculated by reference to that part which is not business

accommodation.

A7 Where a dwelling-house is situated in a National Park or one of the areas

mentioned in section 37(1) and a covenant of the kind mentioned in section 37(1)

is not imposed, the local authority may impose a condition reserving the right of

pre-emption, provided the right is exercisable:

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(a) within ten years of the date of the disposal; and

(b) at the market value of the dwelling-house at the date the right is exercised less

any repayment of discount demanded by the authority under the covenant

mentioned in section 35(2).

A8 Where a dwelling-house is within paragraph 7, 9 or 10 of Schedule 5 (or would be

within one of those paragraphs if it were one of a group which it was the practice

of the local authority to let for occupation by a person of one of the descriptions

mentioned in those paragraphs) or is within paragraph 11 of that Schedule, the

authority may impose a condition reserving the right of pre-emption, provided the

right is exercisable:

(a) within twenty one years of the date of disposal; and

(b) at the market value of the dwelling-house at the date the right is exercised less

any repayment of discount demanded by the authority under the covenant

mentioned in section 35(2).

A9 No disposal under this consent shall reserve a right of pre-emption to the local

authority except one:

(a) permitted under paragraph A5.4.3, A7 or A8; or

(b) required by section 36A.

A10 If a local authority may dispose of a dwelling-house under this consent to an

individual it may dispose of it to that individual together with one or more other

individuals on the same terms as it would have disposed of it to the individual.

A11 The further consent of the Secretary of State shall not be required under section 133

of the Housing Act 1988 to the subsequent disposal of a dwelling-house which has

been disposed of in accordance with this consent.

ANNE KIRKHAM

Decent Homes Division

Office of the Deputy Prime Minister

21 March 2005

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Appendix 1

1. The market value of a dwelling-house shall be the price it would realise if sold on

the open market with vacant possession by a willing vendor on the terms of the

disposal but disregarding:

(a) any discount applicable under the terms of this consent;

(b) any restriction on the purposes for which the property may be used, which the

local authority is not under an obligation to include and which is not included

in order to protect the enjoyment of other nearby properties; and

2. Notwithstanding the preceding paragraph, the market value of a dwelling-house

which is disposed of in accordance with this consent may be determined:

(a) in the case of a dwelling-house disposed of in accordance with paragraph A3.4,

where the purchaser is vacating another dwelling-house of the local authority of

which he is a secure tenant, after deducting any increase in the value of the

other dwelling-house resulting from any improvements carried out by:

(i) the purchaser during his tenancy;

(ii) an individual who was a tenant before him under the same tenancy; or

(iii) any member of the purchaser’s family who, immediately before the tenancy

was granted, was a tenant of the same dwelling-house under another tenancy;

(b) in the case of a dwelling-house disposed of in accordance with paragraph A5,

disregarding any improvements carried out by any of the individuals listed in

sub-paragraphs (a)(i) to (iii) inclusive above.

3. The market value of a dwelling-house shall be assessed not earlier than three

months before the date that the acquirer in writing either applies, or agrees to an

offer, to acquire it.

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Appendix 2

1. A “priority purchaser” means an individual who:

(a) satisfies one of the conditions specified in paragraph 2; and

(b) in the opinion of the local authority, would not be reasonably able to purchase

on the open market a suitable dwelling-house, in the area of that authority, for

occupation by himself and any other person who might reasonably be expected

to live with him (whether immediately or in the future).

2. The conditions referred to in paragraph 1 are that the individual is:

(a) an individual who has not, during the period of two years prior to the relevant

date, held a freehold or leasehold interest (under a lease for a term of at least

21 years) in his only or principal home; or

(b) an individual who has an unconditional written offer of regular employment in

the area of the local authority in which the dwelling-house is situated or in the

area of any neighbouring local authority; or

(c) an individual who has, within the period of six months prior to the relevant date:

(i) occupied married quarters of the regular armed forces of the Crown; or

(ii) occupied premises as his only or principal home under a contract of

employment; or

(iii) left or been under an obligation to leave premises as a result of slum

clearance under Part IX or as a result of any proposed development (within

the meaning of section 55 of the Town and Country Planning Act 1990) by

or on behalf of a local authority or a registered social landlord; or

(d) homeless within the meaning of section 175 of the Housing Act 1996.

3. In this Appendix:

“a suitable dwelling-house” does not include a dwelling-house which, in the opinion

of the local authority, would not be readily resaleable at its market value within a

reasonable period to an individual intending to use it as his only or principal home;

“regular armed forces of the Crown” has the same meaning as in section 1 of the

House of Commons Disqualification Act 1975; and

“relevant date” means the date on which the local authority makes a specific offer

to the purchaser to sell the dwelling-house to him.

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B. The general consent for the disposal of

dwelling-houses to tenants who have the

right to buy acquiring with others 2005

The First Secretary of State (“the Secretary of State”), in exercise of his powers

under sections 123(2) and 128(1) of the Local Government Act 1972, sections 32(2),

33(2), 34 and 43 of the Housing Act 1985 and section 133(1) of the Housing Act

1988 and of all other powers enabling him in that behalf, hereby gives to all local

authorities in England the following general consent:

come into force on 21 March 2005.

B2 In this consent:

and otherwise expressions have the same meaning as in the principal consent

except where the contrary appears.

B3.1 A local authority may, subject to the provisions of this consent, dispose of a

dwelling-house to a secure tenant or tenants of that dwelling-house, who have the

right to buy it given by section 118, and who are acquiring the dwelling-house with

an individual who is not, or individuals all of whom are not, qualified to share the

right to buy under section 123.

B3.2 Before the purchasers enter into an obligation to acquire a leasehold interest, the

authority shall give them the estimates and information specified in sections 125A to

125C amended so that:

(a) for the statements of the effects of paragraphs 16B and 16C of Schedule 6, there

shall be substituted a statement of the effects of the provisions in the lease

described in paragraph B3.3(c)(ii), and

(b) no reference to section 450A and regulations under it need be included.

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B3.3 The disposal shall be:

(a) at the price which would be payable if the tenant or tenants were acquiring the

dwelling-house under Part V;

(b) in the case of a house where the authority owns the freehold, by way of a

conveyance which conforms with Parts I and II of Schedule 6; and

(c) in the case of a house where the authority does not own the freehold and in

the case of a flat, by way of the grant of a lease which:

(i) conforms with Parts I and III of Schedule 6; and

(ii) contains provisions restricting the liability of the tenant or tenants to service

charges and improvement contributions as described in paragraphs 16B and

16C respectively of Schedule 6.

B3.4 Paragraphs A7 to A9 (rights of pre-emption) of the principal consent shall apply for

the purposes of this consent.

B4 The further consent of the Secretary of State shall not be required under section 133

of the Housing Act 1988 to the subsequent disposal of a dwelling-house which has

been disposed of in accordance with this consent.

ANNE KIRKHAM

Decent Homes Division

Office of the Deputy Prime Minister

21 March 2005

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C. The general consent for the disposal of

Part II dwelling-houses on shared ownership

terms 2005

The First Secretary of State (“the Secretary of State”), in exercise of his powers

under sections 32(2), 33(2) and 34 of the Housing Act 1985 and section 133(1) of

the Housing Act 1988 and of all other powers enabling him in that behalf, hereby

gives to all local authorities in England the following general consent:

21 March 2005.

C2 In this consent:

“initial percentage” has the meaning given by paragraph C4;

“lease for the elderly” means a lease:

(a) to a person of or over the age of 55 at the date of the grant of a lease, and

(b) which contains a covenant by the local authority to provide the tenant with

facilities which consist of or include access to the services of a warden and a

system for calling him;

“market value” has the meaning given in Appendix 1 of the principal consent;

“portioned percentage” has the meaning given by paragraph C4;

“relevant percentage” in relation to a dwelling-house means 100 per cent less the

aggregate of the initial percentage and any portioned percentage;

“shared ownership lease” means a lease of a dwelling-house granted on payment

of a premium calculated by reference to a percentage of the market value of the

dwelling-house;

and otherwise expressions have the same meaning as in the principal consent

except where the contrary appears.

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C3 A local authority may grant a shared ownership lease of a dwelling-house to:

(a) a secure tenant or a Schedule 1 tenant of that dwelling-house; or

(b) any individual who intends to use the dwelling-house as his only or principal home.

C4 A shared ownership lease granted under this consent shall be subject to the

following conditions:

(a) the lease is granted for a premium which is a portion (the “initial percentage”)

of the market value of the dwelling-house;

(b) the initial percentage shall be at least 25 per cent;

(c) subject to paragraph C5, the lease is upon terms that the tenant (including his

successor in title) may:

(i) on one or more occasions pay a premium consisting of a further portion

(“the portioned percentage”) of the market value of the dwelling-house; and

(ii) purchase the freehold or leasehold reversion to the lease where it is of a

house for a price equal to the relevant percentage of its market value; and

(d) where the minimum portioned percentage is specified in the lease it shall not

be more than 25 per cent.

C5 Where the lease is a lease for the elderly, it may restrict the aggregate of the initial

percentage and the portioned percentage to a percentage not less than 75 per cent,

and not comply with paragraph C4(c)(ii).

C6 Where a local authority has granted such a lease as is described in paragraph C4(a),

whether or not subject to the terms specified in paragraph C4(c), it may accept a

premium and dispose of the reversion as described in paragraph C4(c)(ii).

C7.1 It shall be a term of any lease granted under this consent that the rent shall be the

relevant percentage of the rent normally charged by the local authority for a letting

under section 24(1) of a dwelling-house of a kind similar to that which is the

subject of the lease but subject to any reasonable deduction which (in the opinion

of the local authority) reflects the tenant’s responsibilities under the lease.

C7.2 If the local authority does not own any such dwelling-house the rent payable under

the lease shall be fair and reasonable.

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C8.1 Any lease granted under this consent may provide that for the calculation of any

payment referred to in paragraph C4 the market value of the dwelling-house may

be subject to a discount in accordance with the provisions of this paragraph.

C8.2 A discount shall only be given where, at the time the shared ownership lease is

granted, the lessee is:

(a) the secure tenant or the Schedule 1 tenant of the dwelling-house; or

(b) a secure tenant who would have the right to buy the dwelling-house under

section 118 if he had a tenancy of it; or

(c) a priority purchaser.

C8.3 The discount shall not exceed that specified in paragraph A4 of the principal

consent, calculated:

(a) where the tenant is one described in paragraph C8.2(c), as if the lessee were a

secure tenant or Schedule 1 tenant of the dwelling-house; and

(b) in the case of any subsequent payments under paragraph C4(c), as if the

payment were made on the grant of a lease and the period of approved tenancy

included any period of occupation by the lessee of the dwelling-house as his

only or principal home under the lease.

C9.1 Where a payment is made in respect of the initial percentage, a portioned percentage,

or the relevant percentage of the market value of a dwelling-house, the amount of

the discount under paragraph C8 shall not exceed the same percentage of such

amount as may be prescribed under section 131(2) at the date on which the market

value of the dwelling-house is assessed.

C9.2 Except where the dwelling-house has been included in a scheme under section 429,

its discounted market value shall not be less than the minimum price that would

apply under section 131(1) if the date referred to in paragraph C9.1 were the

relevant time for the purposes of that section.

C9.3 Where the lease is of a dwelling-house let with business accommodation, the discount

shall be calculated by reference to that part which is not business accommodation.

C10.1 A local authority may include in any lease granted under this consent a condition

reserving the right of pre-emption in respect of the assignment of the lease, provided

the right is exercisable only when the relevant percentage is more than nil.

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C10.2 The consideration for the surrender of a lease under the right of pre-emption shall

be the aggregate of the initial percentage and any portioned percentage of the

market value of the dwelling-house at the date the right of pre-emption is exercised

subject to the deduction of any discount repayable under the covenant imposed

pursuant to section 35.

C10.3 In the circumstances specified in paragraph A7 or A8 of the principal consent, a

local authority may reserve the right of pre-emption, exercisable in accordance with

whichever of those paragraphs is applicable, whatever is the relevant percentage

and whether relating to the lease or the reversion.

C10.4 For the purpose of the application of the said paragraphs A7 and A8, the date of

disposal shall be the date the lease was granted under this consent.

C11 No disposal under this consent shall reserve a right of pre-emption to the local

authority except one:

(a) permitted under paragraph C10; or

(b) required by section 36A.

C12 If a local authority may dispose of a dwelling-house under this consent to an

individual it may dispose of it to that individual together with one or more other

individuals on the same terms as it would have disposed of it to the individual.

C13 The further consent of the Secretary of State shall not be required under section 133

of the Housing Act 1988 to the subsequent disposal of a dwelling-house which has

been disposed of in accordance with this consent.

ANNE KIRKHAM

Decent Homes Division

Office of the Deputy Prime Minister

21 March 2005

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Appendix

1. The market value of the dwelling-house means the price which the interest of the

tenant would realise if sold on the open market with vacant possession by a willing

vendor on the assumptions that:

(a) the tenant had previously purchased the freehold or leasehold reversion to the

lease;

(b) any mortgage, interest or right over the dwelling-house created by the tenant is

disregarded;

(c) any improvement to the dwelling-house made by the tenant or any of his

predecessors in title is disregarded; and

(d) any failure by the tenant or any of his predecessors in title to carry out any

repairing obligations under the lease is disregarded.

2. The market value of a dwelling-house shall be assessed:

(a) in relation to the payment of a premium for the initial percentage not earlier

than three months before the date the tenant in writing either applies, or agrees

to an offer, for the grant of the lease;

(b) in relation to the payment of a premium for a portioned percentage or the

reversion, not earlier than three months before the date the tenant agrees in

writing to pay that premium; and

(c) in relation to the surrender of a lease, not earlier than three months before the

date the tenant offers in writing to surrender.

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D. The general consent for the disposal of

non-Part II dwelling-houses 2005

The First Secretary of State (“the Secretary of State”), in exercise of his powers

under sections 123(2) and 128(1) of the Local Government Act 1972, section 43 of

the Housing Act 1985 and section 133(1) of the Housing Act 1988 and of all other

powers enabling him in that behalf hereby gives to all relevant authorities in

England the following general consent:

11 February 1999 is hereby revoked.

D2 In this consent:

“dwelling-house” means a house or flat which is held by a relevant authority other

than under Part II of which the authority may dispose under section 123 of the

Local Government Act 1972;

“relevant authority” means a county, district or London borough council, the

Common Council of the City of London, the Council of the Isles of Scilly, a police

authority within the meaning of section 3 of the Police Act 1964 or any other

authority which is a council for the purposes of section 123 of the Local Government

Act 1972; and

D3 A relevant authority may dispose of a dwelling-house to an individual or individuals

if it could make the disposal under any of the following General Consents were the

dwelling-house and the authority ones to which those consents applied:

D4 The disposal shall be subject to a covenant of the kind specified in section 35.

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D5 The further consent of the Secretary of State shall not be required under section 133

of the Housing Act 1988 to the subsequent disposal of a dwelling-house which has

been disposed of in accordance with this consent.

ANNE KIRKHAM

Decent Homes Division

Office of the Deputy Prime Minister

21 March 2005

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E. The general consent for the disposal of

Part II land 2005

The First Secretary of State (“the Secretary of State”), in exercise of his powers

under section 32(2) and 34 of the Housing Act 1985 and section 133(1) of the

Housing Act 1988 and of all other powers enabling him in that behalf, gives to

all local authorities in England the following general consent:

E1.2 This consent does not apply to the disposal of any land subject to a notice under

section 27AB of the Housing Act 1985 (notice proposing that a local housing

authority should enter into a management agreement with a tenant management

organisation).

1999 is hereby revoked.

“disposal” in addition includes:

(a) the grant of a lease of any duration; and

(b) the grant of a periodic tenancy.

E3.1 A local authority may dispose of any land held for the purposes of Part II for the

best consideration that can reasonably be obtained, provided that any dwellinghouse

included in the disposal:

(a) is vacant;

(b) will not be used as housing accommodation; and

(c) will be demolished.

E3.2 A local authority may dispose of any land held for the purposes of Part II for a

consideration determined by the authority where:

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(a) the land is to be used for any purpose incidental to the enjoyment of a

dwelling-house (whether or not the dwelling-house is held for the purposes

of Part II); or

(b) the land is to be used for:

(i) a purpose, other than use as housing accommodation, which does not

involve trading for profit and is beneficial to persons, the majority of whom

the authority expects to be inhabitants of the estate or neighbourhood in

which the land is situated; or

(ii) a highway or part of a highway; or

(c) the land consists of a room, store or roof void in, or roof surface of, a building

divided into flats, and is not part of a flat.

E4 A local authority may grant any easement in or over land held for the purposes of

Part II for a consideration determined by the authority.

E5 The further consent of the Secretary of State shall not be required under section 133

of the Housing Act 1988 to the subsequent disposal of land which has been disposed

of in accordance with this consent.

ANNE KIRKHAM

Decent Homes Division

Office of the Deputy Prime Minister

21 March 2005

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F. The general consent for the disposal of

reversionary interests in houses and flats 2005

The First Secretary of State (“the Secretary of State”), in exercise of his powers

under sections 32(2) and 34 of the Housing Act 1985 and section 133(1) of the

Housing Act 1988 and of all other powers enabling him in that behalf, hereby gives

to all local authorities in England the following general consent:

F2 In this consent:

“building” includes any yard, garden, outhouses and appurtenances belonging to or

usually enjoyed with it or any part of it;

“flat” and “house” have the same meanings as in section 183 of the Housing Act

1985; and

“long lease” has the meaning given to “long tenancy” in section 115 of that Act;

“qualifying tenant” has the same meaning as in section 5 of the Leasehold Reform,

Housing and Urban Development Act 1993.

F3 Where a local authority is the landlord of a house, which is occupied as housing

accommodation under a long lease, the authority may dispose of its interest to the

leaseholder for the best consideration that can reasonably be obtained.

F4 Where the conditions specified in paragraph F5 apply, a local authority may dispose

of its interest in a building to the leaseholders of the flats in that building or to a

company of which the shareholders are those leaseholders.

F5 The conditions are that:

(a) the building contains only flats and common parts;

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(b) all the flats are occupied as housing accommodation by tenants who have

been qualifying tenants for the purposes of section 5 of the Leasehold Reform,

Housing and Urban Development Act 1993;

(c) where the disposal is to the leaseholders, the leaseholder of each flat (or

leaseholders, if more than one, taken together) shall acquire an interest equal

to that of the leaseholder (or leaseholders, taken together) of each other flat;

and where the disposal is to a company, the leaseholder of each flat (or

leaseholders, if more than one, taken together) shall have an interest in the

company equal to that of the leaseholder (or leaseholders, taken together) of

each other flat; and

(d) the consideration for the disposal is the best that can reasonably be obtained.

F6 The further consent of the Secretary of State shall not be required under section 133

of the Housing Act 1988 to the subsequent disposal of land which has been

disposed of in accordance with this consent.

ANNE KIRKHAM

Decent Homes Division

Office of the Deputy Prime Minister

21 March 2005

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Commentary

1. This commentary draws attention to the key points in the general consents. It is not

intended to be comprehensive, and it does not relieve authorities of the onus of

satisfying themselves that any action they take is in accordance with the consents

and the principal legislation.

2. For the sake of brevity the expression “dwelling” is used in these notes instead of

“dwelling-house” and the expression “sale” includes any form of disposal permitted

by the consent.

3. Section 44 Housing Act 1985 provides that a disposal of a house without consent is

void, unless the disposal is of a single house to an individual. Section 32 Consent

cannot be given retrospectively. Therefore, where a disposal is void by virtue of

section 44 the remedy is to make the disposal again with the consent.

4. If a proposed transaction falls outside the terms of the general consents an application

for special consent may be made to the Office of the Deputy Prime Minister, Decent

Homes Division 3 (DHD3), Floor 2/D2, Eland House, Bressenden Place, London,

SW1E 5DU.

3. This is the principal consent. Unless otherwise stated, references to statutory

provisions are references to the Housing Act 1985.

4. Where a local authority arranges for a builder to enter on the authority’s land under

licence in order to construct new dwellings, and the completed dwellings are

conveyed directly from the authority to the individual purchasers, the relevant

consent is this consent, not the General Consent for the Disposal of Part II Land.

tenant would be able to purchase it under the statutory right to buy.

individual who intends to use it as his only or principal home.

builders/developers for onward sale into owner-occupation. The sale by the

authority must be at market value.

purchasers, as defined in Appendix 2.

transferring from a dwelling of which he has a secure tenancy at a price not less

than the price which the individual would pay for the vacant dwelling were he the

tenant of the dwelling and able to buy it under the right to buy. The ‘means test’

applicable to priority purchasers does not apply. The secure tenant need not be a

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tenant of the local authority making the sale, in which case the authority making

the sale may consider it appropriate to require a right to nominate a tenant to the

vacancy in the other landlord’s stock.

partial exchange, for a flat previously sold by the authority on long lease. The value

of the flat taken by the authority in exchange is deemed for the purposes of the

consent to be the discounted price at which the flat was originally sold. Only the

original purchaser of the flat and certain successors are eligible under this consent.

It is directed chiefly at owners of flats which are unmarketable. Regulation 104A of

the Local Authorities (Capital Finance) Regulations 1997 (as amended) provides

relief from “set aside” in certain circumstances.

have the right to buy, because, for example, they do not satisfy the minimum qualifying

period or they occupy dwellings which are excluded from the right to buy.

(perhaps at auction) regardless of the use to which the purchaser intends to put it.

Typically, the dwelling will be unsuitable, on account of its size, location or severe

disrepair, for either re-letting or discounted sale to a first-time buyer. A dwelling

may not be sold under this consent to a person who has acquired another vacant

house, flat or converted house under this consent in the same financial year. Local

authorities should, therefore, keep a record of dwellings purchased under this

consent, along with the names of their purchasers.

landlords. The dwelling does not have to be vacant. The authority may previously

have leased the dwelling to the registered social landlord (possibly at an undervalue

with consent under section 25 of the Local Government Act 1988). The sale under

this consent must be for the best consideration that can reasonably be obtained.

business and residential accommodation. If the disposal is by way of a lease, it may

be for a term of any duration.

people with very special needs will be at an undervalue and will require consent

under section 25 of the Local Government Act 1988. General consent G under that

section may be applicable.

in the Commonhold and Leasehold Reform Act 2002. It permits the extension of an

existing long lease owned by a qualifying tenant of a house or flat, or the creation

of a new long lease for the same qualifying tenant, provided that tenant has owned

the lease for a period of two years. The premium must be the same as an amount

calculated in accordance with Schedule 13 to the Leasehold Reform, Housing and

Urban Development Act 1993. No consent under section 32 of the Housing Act 1985

is required if the statutory right is exercised. However, circumstances may occasionally

arise where the statutory right is not exercisable.

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131(2). Nor may it reduce the price below the ‘cost floor’ as prescribed for the right

to buy. Even if the cost floor does not restrict the discount, the authority is not

obliged to allow the maximum percentage discount permitted by the consent.

of outstanding natural beauty or rural area designated by the Secretary of State to

reserve (instead of the “locality” covenant permitted by section 37 of the 1985 Act)

the right of pre-emption defined in paragraph A2.2 for a period of 10 years.

21 years where the dwelling is not subject to the Right to Buy because it is specially

suitable for and normally let to disabled or elderly persons.

circumstances, regardless of the period of time which the right might specify as the

period during which the authority must respond to the notice of the proposed disposal.

are eligible for different rates of discount, the whole market value may be discounted

up to the highest rate.

– restrictions on the future use of the dwelling (other than restrictions to protect

the amenity of neighbouring properties) imposed voluntarily by the authority in

the conditions of sale must be disregarded;

– if the sale is to a tenant transferring from another dwelling in the authority’s

stock the value may be reduced by the value of any improvements carried out

to the other dwelling by the tenant under the same tenancy.

one of the conditions in paragraph 2 of the Appendix) is not reasonably able to

purchase a suitable home on the open market in the area of the local authority.

24. This consent relaxes the restriction in paragraph A1.2 by permitting an authority to make

a voluntary sale to a sitting tenant, who has the right to buy and wishes to share it

with someone who is not qualified under section 123: for example, a member of his

family who does not reside in the dwelling or someone who is not a family member.

the authority must sell the freehold. In other cases, the authority must grant a lease

of the same duration as it would do if the sale were under the statutory right to

buy. The provisions restricting the recovery of service charges for the first 5 years

also apply.

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ownership terms either to the sitting tenant or (if vacant) to any individual who

intends to use it as his only or principal home. A sale to a sitting tenant may be

made even if he would be entitled to buy the dwelling under the right to buy.

must be entitled to acquire at any time additional shares up to 100% (or at least

75% in the case of a lease for the elderly). A lessee wishing to buy an additional

share may not be required to buy more than 25% at one go.

general consent A (except that a shared ownership lease is not eligible for the 50%

discount for ‘homesteading’). The period of occupation under the shared ownership

lease may be taken into account on the sale of a portioned percentage or the reversion.

Housing (Right to Buy) (Limits on Discount) Order 1998 as amended applies

proportionately. The appropriate proportion of the cost floor also applies. In the

case of a sale of a portioned percentage or the reversion this entails first calculating

the cost floor on the basis of the costs that would be taken into account if at that

time the authority were selling the whole dwelling with vacant possession. This may

result in costs being disregarded because they arose earlier than the period of years

required to be taken into account under section 131(1).

the lease if the lessee wishes to assign the lease before he has acquired 100% of the

shares. This will enable the authority to ensure that the benefit of the subsidised

rent and right to discount do not pass to someone who does not require such

assistance. The right of pre-emption may not be exercisable after the lessee has

acquired 100% of the equity, unless the dwelling is of a kind that falls within

paragraph A7 (National Parks, etc) or A8 (dwellings for the elderly or disabled)

or the right is that required under section 36A.

31. This consent permits dwellings held by police authorities, and by county councils

and housing authorities under powers other than Part II of the 1985 Act, to be sold

in accordance with general consents A and C. Paragraph A1.2 (bar on sales to sitting

tenants who have the right to buy) applies to general consent D.

but not land which includes a dwelling - unless the dwelling is vacant and will be

demolished without the dwelling itself being used again as housing accommodation.

The cleared site may be used to provide new housing. The sale of the reversion to

a lease of a dwelling is not covered by this consent.

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33. A disposal under paragraph E3 must be for the best consideration that can reasonably

be obtained. Where an authority wishes to provide land at less than market value

for low cost housing for sale, general consent A is available - see paragraph 4 of this

commentary. A disposal of land to a registered social landlord at less than market

value for the provision of privately let housing accommodation will require consent

under section 25 of the Local Government Act 1988. General consent A under that

section may be applicable.

– the disposal of a garage or vehicle parking space which is not part of a dwelling

within the definition of “dwelling-house” in paragraph A2.2. If a garage/parking

space is let under a separate tenancy agreement, it will usually be the case that

the garage/parking space is not part of a dwelling;

– the disposal of small pieces of waste land for incorporation into adjoining garden

land. The authority may need to impose an appropriate covenant to ensure that

it receives adequate recompense in the event of the land being developed;

– the disposal of land (which might comprise a dwelling or part of a dwelling) to

a social club, sports club, creche or similar not-for-profit organisation, but the

purpose of the disposal must not be the provision of housing. The service or

amenity provided on the land must be mainly for the benefit of people living in

the vicinity, not for the population of the town or district as a whole;

– a disposal for highway improvements.

The consent leaves the consideration to the discretion of the authority, but the

authority will need to be able to show that it is reasonable in the circumstances. Note

that “disposal” in consent E includes a lease of any duration or a periodic tenancy.

35. This consent overlaps the right to enfranchise which the lessee of a house or the

leaseholders in a block of flats have under the Leasehold Reform Act 1967 or the

Leasehold Reform, Housing and Urban Development Act 1993 (as amended by the

Commonhold and Leasehold Reform Act 2002). No consent under section 32 of the

Housing Act 1985 is required if the statutory right is exercised. However, circumstances

may occasionally arise where the statutory right is not exercisable. For example, if

the local authority is not the freeholder, the lessee/leaseholders may wish to acquire

the authority’s leasehold interest but not wish, or be unable, to acquire the freehold.

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The general consents

under section 25 of the

Local Government Act 1988

(Local Authority assistance for

privately let housing) 2005

A. The general consent under section 25 of the

Local Government Act 1988 for the disposal

of land to registered social landlords 2005

The First Secretary of State (“the Secretary of State”), in exercise of his powers

under sections 25(1) and 26(1) of the Local Government Act 1988 (“the 1988 Act”),

hereby gives to all local authorities in England the following general consent:

A1 A local authority may provide a registered social landlord, for the purposes of or in

connection with the matters mentioned in section 24(1) of the 1988 Act, with any

financial assistance or any gratuitous benefit consisting of:

(a) the disposal to that registered social landlord of land for:

(i) development as housing accommodation or as housing accommodation and

other facilities which are intended to benefit mainly the occupiers of the

housing accommodation; or

(ii) the provision of access to land used or to be developed as housing

accommodation; or

(b) the grant to that registered social landlord of any easement or right appurtenant

to land used or to be developed as housing accommodation.

A2 Consent is given on condition that:

(a) any housing accommodation on the land when the disposal is completed is vacant,

and that the terms of the disposal provide that the housing accommodation

(other than any accommodation which has been developed pursuant to the

terms of the disposal) shall not be used again as housing accommodation and

shall be demolished; and

(b) completion of the disposal is by transfer of the freehold, assignment of a lease

with an unexpired term of 99 years or more or grant of a lease for a term of 99

years or more; and

(c) the terms of the disposal provide that the development of any housing

accommodation on the land shall be completed by a date which is not more

than three years after the completion of the disposal, but provision may be

made for that date to be varied in the event of circumstances beyond the

registered social landlord’s control;

(d) subject to paragraph A3, the terms of the disposal provide that any housing

accommodation to be developed on the land shall be:

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(i) let by the registered social landlord on a periodic tenancy or a shared

ownership lease or a lease for the elderly or used as temporary accommodation

for homeless persons; or

(ii) used as a hostel; or

(iii) occupied by persons who, on account of mental illness or handicap, are

receiving support from a local social services authority; and

(e) the local authority are not, under any agreement or other arrangement made

on or before the disposal, entitled to manage or maintain any of the housing

accommodation to be developed on the land.

A3 The condition specified in paragraph A2(d) need not be binding on any mortgagee

of the land or any person whose title is derived through such a mortgagee.

A4 (a) The aggregate value of the financial assistance or gratuitous benefit provided by

the disposal or grant and any financial assistance or gratuitous benefit provided

previously by the local authority under this consent in the same financial year

shall not exceed £10 million. A certificate that the aggregate value of the financial

assistance or gratuitous benefit so provided does not exceed £10 million, given

by the chief executive or chief financial officer or chief legal officer of the

authority (whatever the actual titles of those officers) or by a qualified valuer,

employed or engaged by the authority, shall be conclusive for the purposes of

this paragraph.

(b) For the purposes of this paragraph:

(i) the value of financial assistance or gratuitous benefit provided by the

disposal or grant is the difference between the open sale value of the land

to be disposed of and the value of the consideration received by the local

authority for the disposal; and

(ii) “open sale value” means the amount which the interest disposed of by the

local authority would realise if sold on the open market with vacant possession

by a willing vendor, but disregarding any restriction on the purpose for

which the property may be used which the authority are not under an

obligation to include and which is not included in order to protect the

enjoyment of other nearby properties.

A5 No further consent of the Secretary of State to a disposal under this consent shall

be required by virtue of section 26(4) of the Town and Country Planning Act 1959,

section 123(2) of the Local Government Act 1972 or section 32(2) or 43(1) of the

Housing Act 1985.

A6 In this consent:

“development” has the same meaning as in section 55(1) of the Town and Country

Planning Act 1990;

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“disposal” includes an agreement which provides for the registered social landlord

or its contractors to occupy the land for the purposes of carrying out the development

and for the registered social landlord to obtain legal title to the land when the

development has been completed;

“dwelling-house” means a house or flat, including any yard, garden, out-houses and

appurtenances belonging to or usually enjoyed with it;

“financial year” means the twelve months ending on 31 March;

“homeless person” means a person to whom the local authority owes a duty to

secure accommodation, or is exercising a power to secure accommodation, under

Part VII of the Housing Act 1996;

“hostel” has the same meaning as in section 622 of the Housing Act 1985;

“house” has the same meaning as in section 183 of the Housing Act 1985;

“lease for the elderly” means a lease which complies with the conditions in

paragraph 4 of Schedule 4A to the Leasehold Reform Act 1967 and the requirements

further prescribed by regulations under that Schedule;

“locality” shall be construed as follows:

(a) if the dwelling-house is in the area of a town council or parish council, the

locality is the whole of the area of that council;

(b) if the dwelling-house is not in the area of a town council or parish council, but

is in a parish for which there is a parish meeting, the locality is the whole of the

area of that parish;

(c) if the dwelling-house is in the City of London or the Isles of Scilly, the locality is

the whole of the City or (as the case may be) the Isles;

(d) in any other case, the locality is the whole of the district or London borough or

unitary county, in which the dwelling-house is situated;

“market value” means the amount which the interest of the tenant in the dwellinghouse

would realise if sold on the open market with vacant possession by a willing

vendor on the assumption that the tenant had previously purchased 100 per cent of

the shares in the dwelling-house, disregarding the following matters:

(a) any mortgage of the tenant’s interest; and

(b) any interest in or right over the dwelling-house created by the tenant; and

(c) any improvement made by the tenant or any of his predecessors in title; and

(d) any failure by the tenant or any predecessor in title to carry out any repairing

obligations under the lease;

“qualified valuer” means a fellow or professional associate of the Royal Institution of

Chartered Surveyors or any successor body thereof;

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“registered social landlord” has the same meaning as in Part I of the Housing Act 1996;

“shared ownership lease” means a lease of a dwelling-house which satisfies the

following requirements:

(a) it is granted for a term of 99 years or more; and

(b) it is granted on payment of a premium calculated by reference to a percentage,

which is not less than 25 per cent or more than 75 per cent of the market value

of the dwelling-house; and

(c) subject to paragraphs (d), (e) and (f) below, it entitles the tenant (including his

successor in title) to acquire additional shares in the dwelling-house, the price

of any such additional share to be the same percentage of the market value of

the dwelling-house as the percentage of the additional share;

(d) if the dwelling-house is in a locality with a population at the time of the

disposal of the land of 3,000 or more:

(i) it entitles the tenant to acquire additional shares up to 100 per cent; and

(ii) where the dwelling-house is a house and the landlord owns the freehold, it

provides that the tenant shall be entitled, on his acquiring a total share of

100 per cent, to require the freehold to be conveyed either to himself or to

such other person as he may direct; and

(iii) it does not restrict the right of a tenant who has acquired a total share of

100 per cent to sell his interest in the dwelling-house on the open market; and

(iv) it is not terminable by the landlord except in pursuance of a provision for

re-entry or forfeiture; and

(e) if the dwelling-house is in a locality with a population at the time of the

disposal of the land of less than 3,000:

(i) it may set a maximum percentage of shares which may be acquired by the

tenant, which shall not be less than 80 per cent; and

(ii) it may reserve a right preventing the tenant from assigning the lease unless

he first offers to surrender or assign the lease to the landlord;

(f) if the dwelling-house is let on a lease for the elderly, it may set a maximum

percentage of shares which may be acquired by the tenant, which shall not be

less than 75 per cent;

“the land” means land disposed of under this consent;

otherwise expressions have the same meaning as they have in Part III of the 1988 Act.

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shall come into force on 21 March 2005.

1999, is hereby revoked.

ANNE KIRKHAM

Decent Homes Division

Office of the Deputy Prime Minister

21 March 2005

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B. The general consent under section 25

of the Local Government Act 1988 for the

disposal of dwelling-houses to registered

social landlords for refurbishment 2005

The First Secretary of State (“the Secretary of State”), in exercise of his powers

under sections 25(1) and 26(1) of the Local Government Act 1988 (“the 1988 Act”),

hereby gives to all local authorities in England the following general consent:

B1 A local authority may provide a registered social landlord, for the purposes of or

in connection with the matters mentioned in section 24(1) of the 1988 Act, with

any financial assistance or any gratuitous benefit consisting of the disposal of a

dwelling-house to that registered social landlord for the purposes of:

(a) the carrying out of works of conversion, rehabilitation or improvement to the

dwelling-house; and

(b) the dwelling-house being used after the works either wholly as housing

accommodation or as housing accommodation and other facilities which are

intended to benefit mainly the occupiers of the housing accommodation.

B2 Consent is given on condition that:

(a) the housing accommodation is vacant when the disposal is completed; and

(b) completion of the disposal is by transfer of the freehold, assignment of a lease

with an unexpired term of 99 years or more or grant of a lease for a term of 99

years or more; and

(c) the estimated cost of the works (excluding the cost of design and supervision and

the provision of other facilities) expressed as a percentage of the market value

of the dwelling-house at the completion of the disposal or the commencement

of the works, whichever is the earlier, is more than:

(i) if the dwelling-house is situated in a London borough or the City of London,

25 per cent;

(ii) if the dwelling-house is situated elsewhere, 30 per cent; and

(d) the terms of the disposal provide that the works shall be completed by a date

which is not more than three years after the completion of the disposal, but

provision may be made for that date to be varied in the event of circumstances

beyond the registered social landlord’s control; and

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(e) subject to paragraph B3, the terms of the disposal provide that the housing

accommodation in the dwelling-house after the works shall be:

(i) let by the registered social landlord on a periodic tenancy or a shared

ownership lease or a lease for the elderly; or

(ii) used as temporary accommodation for a homeless person; or

(iii) used as a hostel; or

(iv) occupied by persons who, on account of mental illness or handicap, are

receiving support from a local social services authority; and

(f) the local authority are not, under any agreement or other arrangement made on

or before the disposal, entitled to manage or maintain the housing accommodation

in the dwelling-house after the works.

B3 The condition specified in paragraph B2(e) need not be binding on any mortgagee

of the housing accommodation or any person whose title is derived through such

a mortgagee.

B4 The aggregate number of dwelling-houses included in the disposal and any

previous disposal by the local authority under this consent in the same financial

year shall not exceed a number (“the ceiling”) equal to the greater of 50 or one

quarter of one per cent of the number of dwelling-houses owned by the authority

at the commencement of the financial year in which the disposal takes place. A

certificate that the aggregate number of dwelling-houses so disposed of does not

exceed the ceiling, given by the chief executive or chief financial officer or chief

legal officer of the authority (whatever the actual titles of those officers), shall be

conclusive for the purposes of this paragraph.

B5 No further consent of the Secretary of State to a disposal under this consent shall be

required by virtue of section 26(4) of the Town and Country Planning Act 1959,

section 123(2) of the Local Government Act 1972 or section 32(2) or 43(1) of the

Housing Act 1985.

B6 In this consent:

“dwelling-house” means a house or flat, including any yard, garden, out-houses and

appurtenances belonging to or usually enjoyed with it;

“financial year” means the twelve months ending on 31 March;

“homeless person” means a person to whom the local authority owes a duty to

secure accommodation, or is exercising a power to secure accommodation, under

Part VII of the Housing Act 1996;

“hostel” has the same meaning as in section 622 of the Housing Act 1985;

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“market value” means the amount which the interest disposed of by the local authority

would realise if sold on the open market with vacant possession by a willing vendor,

but disregarding any restriction on the purposes for which the property may be

used which the authority are not under an obligation to include and which is not

included in order to protect the enjoyment of other nearby properties;

“registered social landlord” has the same meaning as in Part 1 of the Housing Act 1996;

“the works” are the works referred to in paragraph B1 of this consent;

otherwise expressions have the same meaning as they have in Part III of the 1988 Act.

given on 11 February 1999, is hereby revoked.

ANNE KIRKHAM

Decent Homes Division

Office of the Deputy Prime Minister

21 March 2005

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C. The general consent under section 25 of the

Local Government Act 1988 for financial

assistance to registered social landlords or

to private landlords to relieve or prevent

homelessness 2005

The First Secretary of (“the Secretary of State”), in exercise of his powers under

sections 25(1) and 26(1) of the Local Government Act 1988 (“the 1988 Act”), hereby

gives to all local authorities in England the following general consent:

C1 A local authority may provide a registered social landlord or a private landlord, for

the purposes of or in connection with the matters mentioned in section 24(1) of the

1988 Act, with any financial assistance (other than the disposal of an interest in land

or property) for the purpose of carrying out the authority’s statutory duties and

obligations set out in, or exercising the authority’s powers arising under, Part VII

of the Housing Act 1996 or the Homelessness Act 2002.

C2 In this consent:

“registered social landlord” has the same meaning as in Part 1 of the Housing Act 1996;

“private landlord” means a landlord which is not mentioned in paragraph 7 of Schedule 4

to the Housing Act 1985 or in an order made under paragraph 8 of that Schedule;

otherwise expressions have the same meaning as they have in Part III of the 1988 Act.

on 21 March 2005.

on 11 February 1999, are hereby revoked.

ANNE KIRKHAM

Decent Homes Division

Office of the Deputy Prime Minister

21 March 2005

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D. The general consent under section 25 of the

Local Government Act 1988 for loans to

registered social landlords for the acquisition

or improvement of land 2005

The First Secretary of State (“the Secretary of State”), in exercise of his powers

under sections 25(1) and 26(1) of the Local Government Act 1988 (“the 1988 Act”),

hereby gives to all local authorities in England the following general consent:

D1 A local authority may provide a registered social landlord, for the purposes of or in

connection with the matters mentioned in section 24(1) of the 1988 Act, with any

financial assistance consisting of the making of a loan to that registered social

landlord for the purposes of or in connection with:

(a) the acquisition of land; or

(b) the carrying out of works of construction, conversion, rehabilitation or

improvement of housing accommodation.

D2 If:

(a) the loan is made for the purposes of or in connection with:

(i) the carrying out of works; or

(ii) the acquisition of land and the carrying out of works on that land; and

(b) the loan is repayable not later than six months after the completion of the works;

the rate of interest shall be a fixed rate not less than the rate of interest which The

Housing Corporation would charge on a ‘development period’ loan made at the

same time as the local authority’s loan.

D3 In any other case:

(a) the loan shall be for a period not exceeding 30 years; and

(b) the rate of interest shall be a fixed rate not less than the rate of interest which

The Housing Corporation would charge on a 30 year loan made at the same

time as the local authority’s loan; and

(c) provision shall be made for the repayment of the principal and the payment of

interest to be made (as nearly as practicable) by equal combined instalments at

equal intervals not exceeding 6 months, but the interval between the making of

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the loan and the first instalment or the interval between the penultimate instalment

and the final instalment or both such intervals may be of any duration less than

one year, in which event the first or (as the case may be) the final instalment

shall differ from the other instalments to an extent that is reasonable.

D4 No loan may be made under this consent for the purposes of:

(a) the acquisition from any public sector landlord of housing accommodation

which is subject to a tenancy to occupy; or

(b) the carrying out of works to housing accommodation which was acquired from

a public sector landlord subject to a tenancy to occupy.

D5 In this consent:

“public sector landlord” means a landlord mentioned in section 80 of the Housing

Act 1985;

“registered social landlord” has the same meaning as in Part 1 of the Housing Act 1996;

otherwise expressions have the same meaning as they have in Part III of the 1988 Act.

given on 11 February 1999, is hereby revoked.

ANNE KIRKHAM

Decent Homes Division

Office of the Deputy Prime Minister

21 March 2005

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E. The general consent under section 25 of the

Local Government Act 1988 for assistance

for housing accommodation leased from, or

managed on behalf of, private landlords 2005

The First Secretary of (“the Secretary of State”), in exercise of his powers under

sections 25(1) and 26(1) of the Local Government Act 1988 (“the 1988 Act”), hereby

gives to all local housing authorities in England the following general consent:

E1 A local housing authority may provide a registered social landlord with any financial

assistance of a kind mentioned in section 24(2)(a) or (c) of the 1988 Act or any

gratuitous benefit for the purposes of or in connection with:

(a) that registered social landlord leasing dwelling-houses from private landlords

and sub-letting them to persons nominated by the authority; or

(b) that registered social landlord managing, on behalf of private landlords,

dwelling-houses which are let to persons nominated by the authority.

E2 In relation to each dwelling-house, the lease or management agreement between

the registered social landlord and the private landlord shall not exceed 10 years,

but the local authority may from time to time, at its absolute discretion, agree to the

lease or management agreement being extended or renewed for a further period

not exceeding 10 years.

E3 In this consent:

“private landlord” means a landlord which is not mentioned in paragraph 7 of

Schedule 4 to the Housing Act 1985 or in an order made under paragraph 8 of

that Schedule;

“registered social landlord” has the same meaning as in the Housing Act 1996;

otherwise expressions have the same meaning as they have in Part III of the 1988 Act.

March 2005.

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ANNE KIRKHAM

Decent Homes Division

Office of the Deputy Prime Minister

21 March 2005

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F. The general consent under section 25 of the

Local Government Act 1988 for small amounts

of assistance 2005

The First Secretary of State (“the Secretary of State”), in exercise of his powers

under sections 25(1) and 26(1) of the Local Government Act 1988 (“the 1988 Act”),

hereby gives to all local housing authorities in England and, to the extent provided

in paragraph G3 below, all county councils in England, the following general consent:

F1 Subject to the provisions of this consent, a local housing authority may provide any

person, for the purposes of or in connection with the matters mentioned in section

24(1) of the 1988 Act, with any financial assistance or any gratuitous benefit.

F2 The aggregate amount or value of the financial assistance or gratuitous benefit

provided by the local housing authority to all persons under this consent in any

financial year shall not exceed the sum ascertained by multiplying the population of

the area of the authority by the figure of £3.00. The population of any area shall be

taken to be the number estimated by the Registrar General for England and Wales

and certified by him to the authority as at 30 June in the financial year preceding

the financial year in which the authority agree to provide the financial assistance or

gratuitous benefit.

F3 A local housing authority and the council of the county in which the local housing

authority are situated may from time to time apportion between them the sum

ascertained in accordance with paragraph G2 and, where they do so, consent is given

to the provision of financial assistance or gratuitous benefit by the county council.

F4.1 A local housing authority or a county council shall not agree to provide any

financial assistance or gratuitous benefit by virtue of this consent in respect of a

financial year other than the financial year in which the agreement is made or any

of the three following financial years.

F4.2 The limitation in paragraph G4.1 shall not apply if the financial assistance or

gratuitous benefit is provided for the purposes of or in connection with housing

accommodation which is:

(a) intended to be occupied by persons who have a special need; or

(b) is the subject of a lease granted in accordance with paragraph G6 below.

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F5 Any loan provided under this consent shall be for a period not exceeding 30 years.

F6 If any financial assistance or gratuitous benefit provided under this consent consists

of the disposal of a dwelling-house or hostel:

(a) the disposal shall be to:

(i) a person who intends to use the accommodation for occupation by persons

with a special need; or

(ii) a registered social landlord; and

(b) the disposal shall be by the grant of a lease for a term not exceeding 21 years; and

(c) the dwelling-house or hostel shall not be subject to any secure tenancy when

the lease is granted; and

(d) the aggregate number of dwelling-houses comprised in the disposal and any

previous disposal by the local authority under this consent in the same financial

year shall not exceed a number (“the ceiling”) equal to the greater of 50 or one

quarter of one per cent of the number of dwelling-houses owned by the authority

at the commencement of the financial year in which the disposal takes place. A

certificate that the disposal does not breach the ceiling, given by the chief executive

or chief financial officer or chief legal officer of the authority (whatever the actual

titles of those officers), shall be conclusive for the purposes of this paragraph.

F7 No further consent of the Secretary of State to a disposal under this consent shall

be required by virtue of section 26(4) of the Town and Country Planning Act 1959,

section 123(2) of the Local Government Act 1972 or section 32(2) or 43(1) of the

Housing Act 1985.

F8 In this consent:

“dwelling-house” means a house or flat, including any yard, garden, out-houses and

appurtenances belonging to or usually enjoyed with it;

“financial year” means the twelve months ending on 31 March;

“registered social landlord” has the same meaning as in Part 1 of the Housing Act 1996;

“secure tenancy” has the same meaning as in Part IV of the Housing Act 1985;

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“special need” means a need arising from disablement, past or present dependence

on alcohol or drugs, past or present mental disorder, or fear of domestic violence;

otherwise expressions have the same meaning as they have in Part III of the 1988 Act.

force on 21 March 2005.

ANNE KIRKHAM

Decent Homes Division

Office of the Deputy Prime Minister

21 March 2005

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G. The general consent under section 25 of the

Local Government Act 1988 for the disposal

of residental care homes 2005

The First Secretary of State (“the Secretary of State”), in exercise of his powers

under sections 25(1) and 26(1) of the Local Government Act 1988 (“the 1988 Act”),

hereby gives to local authorities in England which are local social services authorities

the following general consent:

G1 A local social services authority may provide any person, for the purposes of or in

connection with the matters mentioned in section 24(1) of the 1988 Act, with any

financial assistance of a kind mentioned in section 24(2)(a), (c) or (d) of that Act or

any gratuitous benefit where:

(a) that financial assistance or gratuitous benefit consists of, or is provided in

connection with, the disposal by the authority to an establishment or agency in

respect of which registration would be required under the Care Standards Act

2000 (“the 2000 Act”) or in respect of which registration would be required but

for section 3(3), 4(6), 11(3) or 121(9) of the 2000 Act; and

(b) the disposal is for the best consideration that can reasonably be obtained, taking

into account the restrictions imposed by G2.

G2 Consent is given on condition that the terms of the disposal:

(a) restrict the use of the establishment by the transferee to:

(i) residential accommodation in respect of which registration is required under

the 2000 Act or in respect of which registration would be required but for

section 3(3), 4(6), 11(3) or 121(9) of the 2000 Act; or

(ii) residential accommodation of the kind mentioned in sub-paragraph (i) above

and other facilities for persons who have a need arising from old age,

disablement, past or present dependence on alcohol or drugs, or past or

present mental disorder; and

(b) contain a covenant by the transferee that he shall, if required, duly register

under the 2000 Act in respect of the establishment and comply with the terms and

conditions of that Act and any regulations issued in pursuance of that Act; and

(c) restrict the transferee’s right to dispose or part with possession of the establishment

without the consent of the local social services authority.

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G3 In this consent:

“local social services authority” means the local authority for the purposes of the

Local Authority Social Services Act 1970;

otherwise expressions have the same meaning as they have in Part III of the 1988 Act.

come into force on 21 March 2005.

ANNE KIRKHAM

Decent Homes Division

Office of the Deputy Prime Minister

21 March 2005

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H The general consent under section 25 of the

Local Government Act 1988 for the making

of specified grants 2005

The First Secretary of State (“the Secretary of State”), in exercise of his powers

under section 25(1) and 26(1) of the Local Government Act 1988 (“the 1988 Act”),

hereby gives to all local authorities in England the following general consent:

H1 A local authority may provide any person, for the purposes of or in connection with

the matters mentioned in section 24(1) of the 1988 Act, with any financial assistance

or any gratuitous benefit where that assistance or benefit:

(a) is provided in exercise of any power conferred on the authority by section 48 of

the Local Government Act 1985; or

(b) consists of the making of a grant or the carrying out of works with respect to

a project, the expenditure for which has, at the time the grant is made or the

works are carried out, a current approval for the purposes of a contribution by

the Secretary of State by way of a grant under section 1 of the Local Government

Grants (Social Need) Act 1969.

force on 21 March 2005.

ANNE KIRKHAM

Decent Homes Division

Office of the Deputy Prime Minister

21 March 2005

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Commentary

1. The general consents are largely self-explanatory. The following notes deal only

with those provisions where some explanation or comment is necessary.

2. The notes are not an authoritative statement of the law. Local authorities should

satisfy themselves, on the basis of their own legal advice that any action they

propose to take is in accordance with the consents and the principal legislation.

3. Consents are administrative documents and should be construed reasonably

according to their intention.

4. The consents allow local authorities a wide measure of discretion over the scale of

the assistance. However, the First Secretary of State’s consent does not relieve the

authority of their obligations under general law to act reasonably and in accordance

with their fiduciary duty to local tax and rent payers.

5. Social Services Authorities which are Local Housing Authorities, as defined in

Section 1 of the Housing Act 1985, have the power under section 24 to provide

financial assistance

6. If consent under section 25(1) of the Local Government Act 1988 is required but is

not obtained, the transaction is void by virtue of section 25(3). Consent may be

given retrospectively under section 26(4).

7. If a proposed transaction falls outside the terms of the general consents, an

application for special consent may be made to the Office of the Deputy Prime

Minister, Decent Homes Division 3 (DHD3), Floor 2/D2, Eland House, Bressenden

Place, London SW1E 5DU.

8. The consent does not specify a minimum monetary price for the disposal. Even if

there is no monetary consideration, it will normally be necessary for the registered

social landlord (“RSL”) to apply some Social Housing Grant (“SHG”) in order to

achieve rent levels which will satisfy the Housing Corporation’s performance criteria.

development of, for example, a foyer scheme, which includes facilities for counselling

and social activity. The other facilities need not be for the exclusive benefit of the

occupiers of the housing accommodation, but they must be the main beneficiaries.

Therefore, it would be in order, for example, for a sheltered housing scheme to

include facilities which will be open to non-residents, provided that the main users

will be residents.

10. The other facilities are not privately let housing accommodation. Therefore, the

general consent does not convey any consent which the provision or financing of

those facilities may require under other legislation.

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of the disposal” envisages the possibility that the development will be carried out

under a licence to occupy before the disposal is completed. See also the definition

of “disposal” in paragraph A6.

general consent should be carried into the legal documentation. It is not a requirement

of the consent that any of the conditions should be enshrined as restrictive covenants

running with the land. The authority may consider that other arrangements will be

sufficient in the circumstances. Paragraph A3 recognises that funders’ concerns

about their security need to be considered.

13. Special consent will be required under section 25 for the disposal of land to the

RSL at less than the best consideration that can reasonably be obtained or with a

gratuitous benefit if some of the new housing will be sold on the open market.

In a strategic case, the application for special consent should include

– the statutory purposes for which the land is presently held;

– the location of the land (with a simple plan showing the site boundaries);

– the names of the RSL and any associated developer;

– whether the disposal will be freehold or leasehold (and if the latter the main

particulars);

– the unfettered market value of the whole site (as assessed by a qualified valuer

and no more than three months old);

– the consideration for the disposal;

– the content of the development, including the mix of tenures to be provided; and

– the estimated cost (on any reasonable apportionment) of designing and constructing

the social housing.

The gratuitous benefit and any other public subsidy to the social housing expressed

as a percentage of the cost of the social housing (including an appropriate share of

the value of the site) must not exceed the applicable SHG rate, as specified in the

Housing Corporation’s grant tables.

requirement for separate consent under certain other enactments. It does not waive

any requirement for consent under, for example, section 8 of the Allotments Act

1925 or section 233 of the Town and Country Planning Act 1990.

15. In the Office’s view, the paragraph has the further effect that consent under section

133 of the Housing Act 1988 will not be required for any subsequent disposal of the

land, because the need for consent under section 133 arises only where consent

under section 32 or 43 of the Housing Act 1985 is required for the original disposal.

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terms, the initial share must be between 25 per cent and 75 per cent, and the lessee

must have a right to staircase to 100 per cent ownership, unless the property is in

a “locality” (see definition) with a population of less than 3,000, in which case the

lease may bar staircasing at 80 per cent (or such higher percentage as the lease

may specify).

17. The current regulations referred to in the definition of a lease for the elderly are in

Statutory Instrument 1987 No 1940.

or more. Short leases for refurbishment are permitted under General Consent G.

disposal, but the proposed works must be estimated to cost at least 25 per cent (if

the scheme is in London) or 30 per cent (if the scheme is elsewhere) of the market

value of the property before the works. Even if there is no monetary consideration,

it may be necessary for the RSL to apply some SHG in order to achieve rent levels

which will satisfy the Housing Corporation’s performance criteria. Probably, the works

will be carried out after the completion of the disposal; however, the condition in

this paragraph envisages the possibility that the works will be carried out under a

licence to occupy before the disposal is completed.

disposal to the RSL if any of the refurbished housing will be sold (whether on

shared ownership lease terms or on the open market). The application for special

consent should include:

– the statutory purposes for which the property is presently held;

– the address (a location plan will not usually be necessary);

– the age, character and general condition of the property;

– the names of the RSL and any associated developer;

– whether the disposal will be freehold or leasehold (and if the latter the main

particulars);

– the unfettered market value of the unrefurbished property (as assessed by a

qualified valuer and no more than three months old);

– the consideration for the disposal;

– the content of the development, including the mix of tenures to be provided; and

– the estimated cost (on any reasonable apportionment) of designing and constructing

the social housing (including any shared ownership).

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The gratuitous benefit and any other public subsidy to the social housing expressed

as a percentage of the cost of the social housing (including an appropriate share of

the value of the unrefurbished building) must not exceed the applicable SHG rate,

as specified in the Housing Corporation’s grant tables.

for public expenditure on housing benefit and housing subsidy. Applications for

special consent will be considered on their merits.

22. Paragraphs 8, 9, 11 to 17 of the notes on General Consent A apply (mutatis

mutandis) to General Consent B.

23. This consent is directed at enabling a local authority to provide forms of financial

assistance to registered social landlords or private landlords in order to secure

accommodation for people who are homeless or at the risk of homelessness.

Typically this would involve the authority paying the cost of leases; making small

one-off grants (“finders fees”) to landlords to encourage them to let dwellings to

homeless households; paying rent deposits or indemnities to ensure accommodation

is secured for homeless households; and making one-off grant payments which

24. This consent is directed at enabling the local authority:

(a) to assist an RSL with its cash flow during the development period; and/or

(b) to provide long-term finance for the post-development period, where private

sector finance is not reasonably available.

The expression “land” includes buildings.

25. If the authority wishes to make a loan at a lesser rate of interest than the Housing

Corporation would charge, an application for special consent must be made. It should

demonstrate that the value of the reduction in the interest rate, taken together with any

other public sector subsidy to the scheme, will not exceed the applicable SHG rate.

intended to assist authorities which prefer to co-ordinate their receipts at particular

times during the year.

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housing owned by private landlords into use - primarily as temporary accommodation

for homeless persons.

28. The consent allows the local housing authority discretion over how much

accommodation they should support and the level of the assistance. The authority’s

decisions should, however, have regard to the general obligations mentioned in

paragraph 4 above. In particular, the authority should consider the range of alternative

methods by which people may be helped to obtain accommodation in the private sector.

29. This consent is intended to enable local authorities to provide financial assistance or

gratuitous benefit to small schemes, which fall outside the terms of the other general

consents. Generally, the consent leaves the amount and terms of the assistance or

benefit to the discretion of the authority.

authority housing for basic renovation.

31. In the Office’s view, it will normally be reasonable to assess the gratuitous benefit

provided by the grant of a lease as the difference between the premium (if any)

actually obtained for the lease and the premium which would be obtainable were

the property offered on the open market with vacant possession on the terms of the

lease (including the terms as to duration and rent), but disregarding any restriction

on the purposes for which the property may be used which the authority are not

under an obligation to include and which is not included in order to protect the

enjoyment of other nearby properties.

32. This consent is concerned with the disposal by local social services authorities of

residential care homes to the independent sector. The disposal of the establishment

must be for the best consideration that can reasonably be obtained taking into

account any particular user restrictions and conditions imposed on the establishment.

financial assistance (excluding guarantees) or gratuitous benefit towards the improvement,

maintenance and management of the accommodation. Assistance towards the provision

of care is not subject to consent under section 25 of the Local Government Act 1988.

in the home at sub-market prices, the monetary value to the authority of that right

should be taken into account when considering whether the total consideration for

the disposal is the best that can reasonably be obtained.

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35. This is a formal consent in respect of grants for privately let housing, which are

subject to other statutory regimes.

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