Housing association sales at discount HA 1988 s. 58
HA 1988 s. 58 applies Housing Act rules to discounted property sales by registered housing associations to tenants of publicly-funded homes.
This section applies to any tenant of a publicly-funded house who, but for paragraph 1 of Schedule 5 to the Housing Act 1985 (no right to buy where landlord a charitable housing trust or housing association), would have the right to buy under Part V of the Housing Act 1985. A house is publicly-funded for the purposes of subsection (1) above if a grant under section 50 above, or a grant under section 41 of the 1985 Act or any enactment replaced by that section, has been paid in respect of a project which included— the acquisition of the house; the acquisition of a building and the provision of the house by means of the conversion of the building; or the acquisition of land and the construction of the house on the land. Where a registered housing association contracts for the acquisition of a house and, without taking the conveyance, grant or assignment, disposes of its interest at a discount to a tenant to whom this section applies, the provisions mentioned in subsection (4) below shall have effect as if the association first acquired the house and then disposed of it to the tenant. The said provisions are— section 4 of the 1985 Act (eligibility for registration); section 8 of that Act (disposal of land by registered housing associations); section 9 of that Act (consent of Corporation to disposals); section 79(2) of that Act (power of Corporation to lend to person acquiring interest from registered housing association); Schedule 2 to that Act (covenants for repayments of discount on early disposal and restricting disposal of houses in National Parks etc. ); and section 130 of the Housing Act 1985 (reduction of discount on exercise of right to buy where previous discount given).
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
Section 58 covers tenants who live in publicly-funded housing but are excluded from the Right to Buy under Part V of the Housing Act 1985 because their landlord is a charitable housing trust or housing association. A property counts as publicly-funded if a grant under section 50, section 41 of the 1985 Act, or a replaced enactment was paid to acquire, convert, or build it.
When a registered housing association buys a house and immediately transfers its interest at a discount to such a tenant without taking conveyance, the transaction is treated as if the association acquired the house first and then sold it to the tenant.
This status applies specific legal rules to the sale, including rules on board eligibility, disposal consents, lending powers, discount repayment covenants under Schedule 2, and discount reductions under section 130.
When it applies
- A charitable housing association selling a property at a discount to an eligible tenant through an indirect acquisition scheme.
- Applying discount repayment covenants under Schedule 2 when a tenant resells a property in a National Park.
- Reducing a purchase discount under section 130 because the tenant previously received a discount on another property.
What this section does not say
- Creating an automatic Right to Buy for tenants of charitable housing trusts excluded by Schedule 5.
- Determining the initial approval and payment of housing association grants under section 50.
- Fixing terms of statutory periodic tenancies under section 5.
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This page reproduces the text of HA 1988 s. 58 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.