Disposal of land by housing action trusts HA 1988 s. 79
HATs may dispose of land with consent; houses with secure/intro tenancies only to social landlords or local authorities. Excludes RTB. Includes options.
Subject to subsection (2) below and any directions given by the Secretary of State, a housing action trust may, with the consent of the Secretary of State, dispose of any land for the time being held by it to such persons, in such manner and on such terms as it considers expedient for the purpose of achieving its objects. A housing action trust may not dispose of a house which is for the time being subject to a secure tenancy , ... an introductory tenancy ... except— to a non-profit registered provider of social housing, or to a registered social landlord (within the meaning of Part I of the Housing Act 1996), or to a local housing authority or other local authority . . .; but this subsection does not apply to a disposal under Part V of the Housing Act 1985 (the right to buy). The reference in subsection (1) above to disposing of land includes a reference to granting an interest in or right over land and, in particular, the granting of an option to purchase the freehold of, or any other interest in, land is a disposal for the purposes of that subsection; and a consent under that subsection given to such a disposal extends to a disposal made in pursuance of the option. The consent of the Secretary of State referred to in subsection (1) above may be given— either generally to all housing action trusts or to a particular trust or description of trust; either in relation to particular land or in relation to land of a particular description; and subject to conditions. Without prejudice to the generality of subsection (4)(c) above, consent under subsection (1) above may, in particular, be given subject to conditions as to the price, premium or rent to be obtained by the housing action trust on the disposal, including conditions as to the amount by which, on the disposal of a house by way of sale or by the grant or assignment of a lease at a premium, the price or premium is to be, or may be, discounted by the housing action trust. Subsection (2) above has effect as if the saving effected by paragraph 9 of the Schedule to the Housing Act 1996 (Commencement No. 3 and Transitional Provisions) Order 1996 related also to disposals of houses subject to introductory tenancies .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . In section 45(2)(b) of the Housing Act 1985 (which defines “ public sector authority ” for the purposes of provisions of that Act restricting service charges payable after disposal of a house) after the entry “an urban development corporation” there shall be inserted “a housing action trust”. A housing action trust shall be treated as a local authority for the purposes of sections 18 to 30 of the Landlord and Tenant Act 1985 (service charges). The provisions of Schedule 11 to this Act shall have effect in the case of certain disposals of houses by a housing action trust.
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
A housing action trust (HAT) may sell, lease, or otherwise dispose of land it holds, but only with the consent of the Secretary of State. The trust decides the buyer, method, and terms, as long as it helps achieve its objects.
If the land includes a house that is currently subject to a secure tenancy or an introductory tenancy, the HAT can only transfer it to a non-profit registered provider of social housing, a registered social landlord, or a local housing authority (or other local authority). This restriction does not apply to disposals under the right to buy scheme.
'Disposal' includes granting an interest or right over land, such as an option to purchase. The Secretary of State's consent may be given generally or specifically, and may include conditions, for example on the price or discount.
When it applies
- A HAT wants to sell a block of flats that includes several secure tenants.
- A HAT grants an option to a developer to buy a piece of land it owns.
- A HAT sells a house to a tenant under the right to buy (exempt from the restriction).
- The Secretary of State gives general consent for all HATs to dispose of land subject to conditions on discount amounts.
What this section does not say
- That a HAT can dispose of land without any consent from the Secretary of State.
- That the restriction applies to all houses, not just those with secure or introductory tenancies.
- That this provision creates a right for tenants to buy their homes (that right is in Part V of the Housing Act 1985).
- That it applies to disposals by local authorities or other bodies, not just housing action trusts.
Related sections
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This page reproduces the text of HA 1988 s. 79 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.