Commentary on provisions of Act Section 25: Exemption of a registered provider of social housing
This section makes provision for exempting registered providers from the requirements of section 23 in certain circumstances. Subsection (1) provides that the Regulator of Social Housing in England may, by direction, exempt a private registered provider from the rent reduction requirement where conditions, including a requirement for the consent of the Secretary of State, are satisfied.
	Subsections (4) and (5) set out conditions which must be satisfied before an exemption may be granted. The Regulator may only grant an exemption if the Regulator considers that complying with Section 23 would jeopardise the financial viability of the provider or, if the circumstances of the private registered provider satisfy requirements prescribed in regulations made by the Secretary of State under subsection (5).
	Subsection (6) enables the Regulator to publish a document about measures that it considers could be taken by a private registered provider to comply with section 23 and to avoid jeopardising its financial viability.
	Subsection (7) gives the Secretary of State powers to, by direction, grant an exemption to a local authority if conditions set out in subsection (10), relating to serious financial difficulties, or subsection (11), relating to requirements prescribed in regulations, are satisfied. Subsection (12) enables the Secretary of State to publish a document about measures that he considers could be taken by a local authority to comply with section 23 and to avoid serious financial difficulties.
	Subsections (2), (3), (8) and (9) specify the terms on which an exemption may be granted. The Regulator or Secretary of State (as applicable) may grant to a provider a full or limited exemption. The section provides the flexibility to tailor the exemption to the circumstances of a provider such as granting an exemption in respect of only some of the provider's social housing or for a limited period, applying a lesser reduction or limiting rent increases as specified in the direction.