HA 1988 s.105: consent for disposal by new landlord
HA 1988 s.105: new landlord must get Secretary of State consent to dispose of property, unless exempt (s.105(7)). Tenants must be consulted.
A person who acquires any property under this Part (in this section referred to as “ the new landlord ”) shall not dispose of it except with the consent of the Secretary of State; but nothing in this subsection shall apply in relation to an exempt disposal, as defined in subsection (7) below. Where an estate or interest in property acquired by the new landlord has been mortgaged or charged, the prohibition in subsection (1) above on disposal of the property without consent applies also to a disposal by the mortgagee or chargee in exercise of a power of sale or leasing, whether or not the disposal is in the name of the new landlord. In any case where— by operation of law or by virtue of an order of a court property which has been acquired by the new landlord passes or is transferred to another person, and that passing or transfer does not constitute a disposal for which consent is required under subsection (1) above, this section (including, where there is more than one such passing or transfer, this subsection) shall apply as if the other person to whom the property passes or is transferred were the new landlord. Any consent for the purposes of subsection (1) above may be given either unconditionally or subject to conditions; but, before giving any such consent, the Secretary of State— shall satisfy himself that the person who is seeking the consent has taken appropiate steps to consult every tenant of the whole or any part of the property proposed to be disposed of; and shall have regard to the responses of any such tenants to that consultation and, without prejudice to the generality of the conditions subject to which consent may be given, a condition may be imposed requiring a payment by the new landlord either to the public sector landlord from whom he or, where subsection (3) above applies, a predecessor of his acquired the property or to such other person as may be specified in the consent . If, apart from subsection (6) below, the consent of the Housing Corporation or Housing for Wales would be required under section 9 of the Housing Associations Act 1985 (control of dispositions of land by housing associations) for a disposal to which subsection (1) above applies, the Secretary of State shall consult that body before giving his consent in respect of that disposal for the purposes of that subsection. No consent shall be required under the said section 9 for any disposal in respect of which consent is given in accordance with subsection (5) above. In this section an “ exempt disposal ” means— the grant of a lease pursuant to such a requirement as is referred to in section 100(1)(b) above; the disposal of a dwelling-house to a person exercising the right to buy it under Part V of the 1985 Act ; a compulsory disposal, within the meaning of Part V of the 1985 Act; the disposal of an easement or rentcharge; the disposal of an interest by way of security for a loan; the grant of a secure tenancy or what would be a secure tenancy but for any of paragraphs 2 to 12 of Schedule 1 to the 1985 Act; the grant of an assured tenancy, within the meaning of Part I of this Act, or what would be such a tenancy but for any of paragraphs 4 to 8 of Schedule 1 to this Act; and the transfer of an interest which is held on trust where the disposal is made in connection with the appointment of a new trustee or in connection with the discharge of any trustee. In this section references to disposing of property include references to— granting or disposing of any interest in property; entering into a contract to dispose of property or to grant or dispose of any such interest; and granting an option to acquire property or any such interest.
Text in force at .
Source: legislation.gov.uk — The National Archives (legislation.gov.uk), reproduced under licence Open Government Licence v3.0.
What it actually says
This section applies to a person who acquires property under Part IV of the Housing Act 1988 (the 'new landlord'). It says the new landlord cannot sell, lease, or otherwise dispose of that property without the consent of the Secretary of State. The ban also covers disposals by a mortgagee (if the property is mortgaged) and transfers by operation of law (e.g., inheritance).
There are exceptions called 'exempt disposals' listed in subsection (7). These include granting a secure tenancy, a disposal under the right to buy, a compulsory disposal, granting an easement or rentcharge, granting a lease required under s.100(1)(b), and certain transactions involving trusts.
Before giving consent, the Secretary of State must be satisfied that the new landlord has consulted every tenant of the property and must consider their responses. Consent may be given unconditionally or subject to conditions, which can include requiring a payment to the original public sector landlord. If consent from the Housing Corporation would also be needed under the Housing Associations Act 1985 s.9, the Secretary of State consults them first, and no separate consent under that section is needed.
When it applies
- A housing association acquires a block of flats under Part IV and later wants to sell the entire block to a private investor.
- A new landlord wants to grant a long lease of a commercial unit within an acquired estate to a shopkeeper.
- A mortgagee repossesses a property acquired by the new landlord and tries to sell it at auction.
- Upon the death of the new landlord, the property passes by inheritance to a relative (operation of law) – this triggers the same rules for the relative.
- A tenant of the acquired property exercises the right to buy under Part V of the 1985 Act – this is an exempt disposal and does not require consent.
What this section does not say
- This section does not apply to disposals made by the original public sector landlord before the acquisition – it only binds the 'new landlord' who acquired under Part IV.
- It does not cover disposals that are explicitly listed as exempt (e.g., granting a secure tenancy or a right-to-buy sale) – those do not need consent.
- It does not set out the detailed procedure for how tenants must be consulted, only that the Secretary of State must satisfy himself that consultation happened.
- The section does not apply if the property was acquired under a different part of the Act or by a different method – the definition of 'new landlord' is limited to Part IV acquisitions.
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This page reproduces the text of HA 1988 s. 105 in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in England and Wales.