Powers and objects of housing action trusts HA 1988 s. 63
Explains the statutory objects, corporate powers, and third-party contract protections for housing action trusts under HA 1988 s. 63.
The primary objects of a housing action trust in relation to the designated area for which it is established shall be— to secure the repair or improvement of housing accommodation for the time being held by the trust; to secure the proper and effective management and use of that housing accommodation; to encourage diversity in the interests by virtue of which housing accommodation in the area is occupied and, in the case of accommodation which is occupied under tenancies, diversity in the identity of the landlords; and generally to secure or facilitate the improvement of living conditions of those living in the area and the social conditions and general environment of the area. Without prejudice to subsection (1) above, a housing action trust may— provide and maintain housing accommodation; and facilitate the provision of shops, advice centres and other facilities for the benefit of the community or communities who live in the designated area. For the avoidance of doubt it is hereby declared that it is immaterial for the purposes of this section whether action taken by a housing action trust for achieving its objects or exercising the powers conferred on it by subsection (2) above also— benefits persons who do not live in the designated area; or improves the social conditions or general environment of an area outside the designated area. For the purpose of achieving its objects and exercising the powers conferred on it by subsection (2) above, a housing action trust may— acquire, hold, manage, reclaim and dispose of land and other property; carry out building and other operations; seek to ensure the provision of water, electricity, gas, sewerage and other services; and carry on any business or undertaking; and may generally do anything necessary or expedient for the purposes of those objects and powers or for purposes incidental thereto. For the avoidance of doubt it is hereby declared that subsection (3) above relates only to the capacity of a housing action trust as a statutory corporation; and nothing in this section authorises such a trust to disregard any enactment or rule of law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A transaction between any person and a housing action trust shall not be invalidated by reason of any failure by the trust to observe the objects in subsection (1) above or the requirement that the trust shall exercise the powers conferred by subsections (2) and (3) above for the purpose referred to in that subsection.
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 63 sets out the statutory objects and legal powers of a housing action trust within its designated area. The trust's main duties are to repair, improve, and manage the housing accommodation it holds, to promote a mix of different tenure types and landlord identities, and to improve overall social conditions and living environments.
To achieve these goals, a housing action trust has broad legal authority. It can build and maintain housing, facilitate shops and advice centres, buy, sell, or reclaim land, arrange utility services like water, gas, electricity, and sewerage, and run business undertakings. An action taken by the trust remains valid even if it also benefits residents or areas outside the designated trust boundaries.
While these broad powers do not allow a trust to break general laws or statutory rules, third parties doing business with a trust are protected. A contract or transaction with a housing action trust cannot be invalidated simply because the trust failed to follow its statutory objects or proper statutory purposes.
When it applies
- A housing action trust acquires land to repair housing stock and build a community advice centre or local retail shops.
- A trust arranges for utility suppliers to lay water, gas, electricity, or sewerage connections across its housing site.
- A contractor enters into a deal with a housing action trust, and a local group claims the contract is invalid because the project benefits people living outside the designated trust area.
- A trust transfers local housing stock to a variety of different landlords to increase landlord diversity in the area.
What this section does not say
- How a housing action trust area is originally designated or established (governed by ha1988s.60 and ha1988s.62).
- How a trust formulates and publishes its formal redevelopment proposals for its area (governed by ha1988s.61 and ha1988s.64).
- The specific powers of a trust when acting as a local planning authority or public health authority (governed by ha1988s.67 and ha1988s.68).
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This page reproduces the text of HA 1988 s. 63 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.