Part 4: Social Housing in England Chapter 4: Reducing Regulation of Social Housing Etc Part 1 - Removal of disposal consents requirement
Existing legislation (Housing Act 1985, Housing Act 1988, Local Government and Housing Act 1989, Leasehold Reform, Housing and Urban Development Act 1993, and the Housing and Regeneration Act 2008) previously required registered providers of social housing to seek permission from the social housing regulator to dispose of social housing stock. Part 1 of Schedule 4 (paragraphs 1 to 8, and 11 to 14) sets out the removal of those disposal consents. Disposal of property is defined in section 273 of the Housing and Regeneration Act 2008 as selling, leasing, mortgaging, making the property subject to a charge, disposing of the property or any interest in it in any other way, and may include granting an option to require a disposal.
	To ensure that when property is charged for security purposes (for example when a private registered provider is raising finance for major repairs or to develop houses) it does not cease to be social housing, the Schedule makes amendments to the circumstances when housing stock is deemed to cease to be social housing. The intention is that property charged for security should not lose its status as social housing. Part 1 of Schedule 4 (paragraphs 7 to 10) sets out the categories of transfers which will result in stock losing its social housing status.  It should be noted that this group of ‘transfers’ is narrower than disposals.
	In order no longer to be considered social housing, the whole of the interest (whether leasehold or freehold) in a property must be transferred with no ability to claim the interest back.  Therefore, a new lease or the granting of a sub-lease will not result in leaving the stock.  Further, where a registered provider transfers their entire interest but on terms that mean it has a right to reclaim their interest in the future, the property does not leave the social housing stock.
	Paragraphs 15 to 21 in part 1 of Schedule 4 set out the new requirements for private registered providers to notify the Regulator of Social Housing about disposals of social housing. There is a power inserted in new section 176 of the Housing and Regeneration Act 2008 for the Regulator to give directions about the timing and content of notifications. It also enables the Regulator to dispense with the requirement for notification.