186.This section amends section 167 of the 1996 Act which requires local housing authorities in Wales to have a scheme and a procedure for allocating housing accommodation which they must comply with when they allocate housing. This section also inserts new section 167A.
187.Under section 167 of the 1996 Act, a local housing authority’s allocation scheme must ensure reasonable preference is given to the categories of people listed in section 167(2), subject to the limited exceptions in subsections (2ZA) and (2B). Section 35(2) amends section 167 of the 1996 Act. It inserts subsections (2DA) and (2DB). The effect of the amendments made by section 35(2)of the Act is that local housing authorities in Wales are not required to give reasonable preference to a person who is homeless or owed a duty under section 66 or 75 of the 2014 Act (as those provisions have been amended be the Act), if the local housing authority is satisfied the person is trying to manipulate the housing system (see section 167A of the 1996 Act as inserted by section 35(3) for what trying to manipulate the housing system means). However, the local housing authority in Wales is still required to give any reasonable preference that a person may be entitled to under the other reasonable preference categories.
188.Section 35(2) also amends section 167(4A)(b) of the 1996 Act to require a local housing authority’s allocation scheme to provide that, where the authority decides that preference under subsection (2)(a) or (b) should not be given to a person on the basis that the authority is satisfied that the person is trying to manipulate the housing system, the authority must notify the person in writing of the decision and the grounds for the decision. The person also has a right to request a review of that decision.
189.Section 35(3) inserts section 167A (meaning of trying to manipulate the housing system) into the 1996 Act. It sets out the circumstances in which a person is considered to be trying to manipulate the housing system for the purposes of allocation of accommodation under section 167(2DB) of the 1996 Act (as inserted by section 35(2) of the Act).
190.There are two ways a person will be trying to manipulate the housing system for the purposes of section 167(2DB). The first is set out in section 167A(2) of the 1996 Act. It provides that a person (“P”) is trying to manipulate the housing system if P is homeless or owed duties under section 66 or 75 of the 2014 Act (as amended by the Act) because P deliberately did, or failed to do, something, which resulted in P ceasing to occupy accommodation that was available to P and it would have been reasonable for P to continue to occupy the accommodation, if—
191.However, where P acted (or failed to act) in good faith in circumstances where P were unaware of a relevant fact, that act (or omission) will not be treated as deliberate.
192.The second way a person will be trying to manipulate the housing system for the purposes of section 167(2DB) is set out in section 167A(4) of the 1996 Act. Under that section, a person (“P”) is trying to manipulate the housing system if—
Commentary on Sections Part 2 - Social Housing Allocation Section 35: No preference for persons who try to manipulate the housing system