Ss.16 and 17 Housing Act 1996 reinstated the RTB (under the title of Right to Acquire) for tenants of Housing Associations who held under assured tenancies or secure tenancies (granted before 15 January 1989) and who did not have a preserved RTB. The Right to Acquire is less advantageous to tenants than the RTB with restricted discounts and designated areas where the right does not apply.
77. Tenancies not bestowing the Right to Acquire
Tenants under assured shorthold tenancies, tenants under long tenancies (terms of 21 years or more) and shared ownership leases do not have the Right to Acquire.
The statutory provisions regulating the Right to Acquire are contained in the Housing (Right to Acquire) Regulations 1997 (SI 1997 No 619).
The Regulations are set out in five Schedules (numbered 1,2,4,5 and 6) as follows:
a. Schedule 1
This sets out the various modifications to Part V of the HA 1985 necessary to implement the Right to Acquire.
b. Schedule 2
This sets out the appropriate sections of Part V of the HA 1985 amended in accordance with Schedule 1 above. The amended sections are ss.118 to 141, 154 to 163, and 172 to 188.
These amended sections do not replace the sections in HA 1985 to which they relate but run parallel to the RTB provisions set out in HA 1985 purely for the purposes of the Right to Acquire.
c. Schedule 4
This sets out the periods that can be taken into account to make up the two year qualifying period of residence in the property before the Right to Acquire can be exercised and the discount in purchase price obtained.
d. Schedule 5
This sets out the exceptions to the Right to Acquire which are similar to those under the RTB as set out in Sch 5 HA 1985. However, there are some differences (see para 79).
e. Schedule 6
This sets out the covenants and conditions of the conveyance of the freehold (houses) or the grant of a lease (flats) and deals with charges on the property (not being tenants' charges).
79. Exceptions to the Right to Acquire
The Regulations remove three of the exceptions set out in Sch 5 HA 1985 and impose three new ones.
Those removed are set out in paragraphs 1, 3 and 11 of Sch 5 HA 1985 as follows:
a.
Where the landlord is a Housing Trust or a Housing Association and is a charity.
b.
Where the landlord has at no time received housing association grants, management grants, revenue deficit grants, hostel deficit grants or grants by local authorities under specified enactments.
c.
Where the dwelling-house is particularly suitable for elderly people.
Those added are set out in paragraphs 1A, 9A and 13 of Sch 5 to SI 1997 No 619 as follows:
a.
Where the dwelling-house is situated in a rural area designated by order of the Secretary of State.
b.
Where the dwelling-house is one of a group of which it is the practice of the landlord to let for occupation by persons who have special needs.
c.
Where the landlord's debt on the dwelling-house (as defined in the Regulations) is equal to or greater than the purchase price plus discount.
The Housing (Right to Acquire) (Discount) Order 2001 (SI 2001 No 1501) sets out fixed amounts of discount to be applied in England under the Right to Acquire ranging from £9,000 to £16,000 according the area of the country in which the dwelling-house is situated. The discount is subject to a 'ceiling' discount of 50% of the value of the property. This Order replaces previous Orders made under the Housing Act 1996.
The Housing (Right to Acquire) (Discount) (Wales) Order 1997 (SI 1997 No 569) states that the rate of discount to be given on the exercise of the right to acquire in Wales shall be 25% of the open market value of the dwelling subject to a maximum of £16,000.
The Right to Acquire under ss.16 and 17 HA 1996 does not apply to tenants of registered social landlords in rural areas designated by order of the Secretary of State.
These are set out in various SIs as follows: SI 1997 No 620 (West Midlands), SI 1997 No 621 (South West), SI 1997 No 622 (North West and Merseyside), SI 1997 No 623 (East), SI 1997 No 624 (North East) and SI 1997 No 625 (South East), SI 1997 No 685 (Wales) and SI 1999 No 1307 (Various locations).
The valuation requirements for the Right to Acquire are identical to those under the RTB and the DV should provide valuation advice and determinations as set out in this Part.
