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Housing Act 1985: Section 156A Right of First Refusal for Landlord, Study notes of Constitutional Law

Bath Spa UniversityConstitutional Law

Section 156a of the housing act 1985, which grants a landlord the right of first refusal for certain disposals of a dwelling-house or lease. Details on the conditions for exercising this right and the regulations that prescribe these conditions.

What you will learn

  • What disposals does a landlord have the right of first refusal for under Section 156A of the Housing Act 1985?

Typology: Study notes

2021/2022

Uploaded on 09/12/2022

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Changes to legislation: Housing Act 1985, Section 156A is up to date with all changes known to be in force on or
before 25 May 2022. There are changes that may be brought into force at a future date. Changes that have been made
appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes
Housing Act 1985
1985 CHAPTER 68
PART V
THE RIGHT TO BUY
Provisions affecting future disposals
[F1156A Right of first refusal for landlord etc.
(1) A conveyance of the freehold or grant of a lease in pursuance of this Part shall contain
the following covenant, which shall be binding on the secure tenant and his successors
in title.
This is subject to subsection (8).
(2) The covenant shall be to the effect that, until the end of the period of ten years
beginning with the conveyance or grant, there will be no relevant disposal which is not
an exempted disposal, unless the prescribed conditions have been satisfied in relation
to that or a previous such disposal.
(3) In subsection (2) “ the prescribed conditions ” means such conditions as are prescribed
by regulations under this section at the time when the conveyance or grant is made.
(4) The Secretary of State may by regulations prescribe such conditions as he considers
appropriate for and in connection with conferring on—
(a) a landlord who has conveyed a freehold or granted a lease to a person (“ the
former tenant ”) in pursuance of this Part, or
(b) such other person as is determined in accordance with the regulations,
a right of first refusal to have a disposal within subsection (5) made to him for such
consideration as is mentioned in section 158.
(5) The disposals within this subsection are—
(a) a reconveyance or conveyance of the dwelling-house; and
(b) a surrender or assignment of the lease.
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Changes to legislation: Housing Act 1985, Section 156A is up to date with all changes known to be in force on or before 25 May 2022. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes

Housing Act 1985

1985 CHAPTER 68

PART V

THE RIGHT TO BUY

Provisions affecting future disposals

[F1156A Right of first refusal for landlord etc.

(1) A conveyance of the freehold or grant of a lease in pursuance of this Part shall contain

the following covenant, which shall be binding on the secure tenant and his successors

in title.

This is subject to subsection (8).

(2) The covenant shall be to the effect that, until the end of the period of ten years

beginning with the conveyance or grant, there will be no relevant disposal which is not

an exempted disposal, unless the prescribed conditions have been satisfied in relation

to that or a previous such disposal.

(3) In subsection (2) “ the prescribed conditions ” means such conditions as are prescribed

by regulations under this section at the time when the conveyance or grant is made.

(4) The Secretary of State may by regulations prescribe such conditions as he considers

appropriate for and in connection with conferring on—

(a) a landlord who has conveyed a freehold or granted a lease to a person (“ the

former tenant ”) in pursuance of this Part, or

(b) such other person as is determined in accordance with the regulations,

a right of first refusal to have a disposal within subsection (5) made to him for such

consideration as is mentioned in section 158.

(5) The disposals within this subsection are—

(a) a reconveyance or conveyance of the dwelling-house; and

(b) a surrender or assignment of the lease.

PART V – THE RIGHT TO BUY Document Generated: 2022-05- Changes to legislation: Housing Act 1985, Section 156A is up to date with all changes known to be in force on or before 25 May 2022. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes

(6) Regulations under this section may, in particular, make provision—

(a) for the former tenant to offer to make such a disposal to such person or persons

as may be prescribed;

(b) for a prescribed recipient of such an offer to be able either to accept the offer

or to nominate some other person as the person by whom the offer may be

accepted;

(c) for the person who may be so nominated to be either a person of a prescribed

description or a person whom the prescribed recipient considers, having

regard to any prescribed matters, to be a more appropriate person to accept

the offer;

(d) for a prescribed recipient making such a nomination to give a notification

of the nomination to the person nominated, the former tenant and any other

prescribed person;

(e) for authorising a nominated person to accept the offer and for determining

which acceptance is to be effective where the offer is accepted by more than

one person;

(f) for the period within which the offer may be accepted or within which any

other prescribed step is to be, or may be, taken;

(g) for the circumstances in which the right of first refusal lapses (whether

following the service of a notice to complete or otherwise) with the result that

the former tenant is able to make a disposal on the open market;

(h) for the manner in which any offer, acceptance or notification is to be

communicated.

(7) In subsection (6) any reference to the former tenant is a reference to the former tenant

or his successor in title.

Nothing in that subsection affects the generality of subsection (4).

(8) In a case to which section 157(1) applies—

(a) the conveyance or grant may contain a covenant such as is mentioned in

subsections (1) and (2) above instead of a covenant such as is mentioned in

section 157(1), but

(b) it may do so only if the Secretary of State or, where the conveyance or grant

is executed by a housing association within section 6A(3) or (4), the Relevant

Authority consents.

(9) Consent may be given in relation to—

(a) a particular disposal, or

(b) disposals by a particular landlord or disposals by landlords generally,

and may, in any case, be given subject to conditions.

(10) Regulations under this section—

(a) may make different provision with respect to different cases or descriptions

of case; and

(b) shall be made by statutory instrument which shall be subject to annulment in

pursuance of a resolution of either House of Parliament.

(11) The limitation imposed by a covenant within subsection (2) (whether the covenant is

imposed in pursuance of subsection (1) or (8)) is a local land charge.

Document Generated: 2022-05- Changes to legislation: Housing Act 1985, Section 156A is up to date with all changes known to be in force on or before 25 May 2022. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. View outstanding changes Changes and effects yet to be applied to :

  • specified provision(s) savings for amendments by 2018 anaw 1, s. 6, Sch. 6 by S.I. 2019/110 reg. 5 Changes and effects yet to be applied to the whole Act associated Parts and Chapters: Whole provisions yet to be inserted into this Act (including any effects on those provisions):
  • s. 81A-81D and cross-heading inserted by 2016 c. 22 Sch. 7 para. 4 (This provision is amended by 2021 c. 7, ss. 79(3), 90(6); S.I 2021/1038, reg. 3(c))
  • s. 81B(1)(b) words inserted by 2018 c. 11 s. 1(3)
  • s. 81B(2A)-(2C) inserted by 2018 c. 11 s. 1(2)
  • s. 81B(2C) words substituted by 2021 c. 17 s. 79(3)(a)(i) (This amendment not applied to legislation.gov.uk. The insertion of s. 81B by 2016 c. 22, Sch. 7 para. 4 is still prospective)
  • s. 81B(2C) words substituted by 2021 c. 17 s. 79(3)(a)(ii) (This amendment not applied to legislation.gov.uk. The insertion of s. 81B by 2016 c. 22, Sch. 7 para. 4 is still prospective)
  • s. 81B(2D) inserted by 2021 c. 17 s. 79(3)(b) (This amendment not applied to legislation.gov.uk. The insertion of s. 81B by 2016 c. 22, Sch. 7 para. 4 is still prospective)
  • s. 82(A1)(A2) inserted by 2016 c. 22 s. 119(2)(a)
  • s. 82A(4A)(4B) inserted by 2016 c. 22 Sch. 7 para. 7(2)
  • s. 86(1A)(1B) inserted by 2016 c. 22 Sch. 7 para. 10(3)
  • s. 86(1C) inserted by 2016 c. 22 Sch. 8 para. 2
  • s. 86A-86F and cross-headings inserted by 2016 c. 22 Sch. 7 para. 11
  • s. 86G s. 86A renumbered as s. 86G by 2016 c. 22 Sch. 8 para. 3(1)(a)
  • s. 86G(8) inserted by 2016 c. 22 Sch. 8 para. 3(2)
  • s. 88(1)(ba) inserted by 2016 c. 22 Sch. 8 para. 4
  • s. 89(2A)-(2D) inserted by 2016 c. 22 Sch. 8 para. 5(3)
  • s. 97(1A) inserted by 2016 c. 22 Sch. 7 para. 12(3)
  • s. 99A(1A) inserted by 2016 c. 22 Sch. 7 para. 13(3)
  • s. 115B115C inserted by 2016 c. 22 Sch. 7 para. 15
  • s. 115B115C inserted by 2016 c. 22 Sch. 7 para. 15
  • s. 353A inserted by 1996 c. 52 s. 73(1) (This amendment not applied to legislation.gov.uk. S. 73 repealed (6.4.2006 for E., 16.6.2006 for W.) by 2004 c. 34, Sch. 16; S.I. 2006/1060, art. 2(1)(e), Sch.; S.I. 2006/1535, art. 2(c), Sch.)
  • Sch. 1 para. 1ZA and cross-heading inserted by 2016 c. 22 Sch. 7 para. 17(2)
  • Sch. 2A para. 14A inserted by 2021 c. 17 Sch. 2 para. 2