The Housing (Right of First Refusal) (England) Regulations 2005

• Citation: S.I. 2005/1917
• Sections: 18

Section 1 Citation, commencement, interpretation and application

(1) These Regulations may be cited as the Housing (Right of First Refusal) (England) Regulations 2005 and shall come into force on 10th August 2005.

(2) In these Regulations—

“the 1985 Act ” means the Housing Act 1985;

“acceptance notice” means a notice which complies with the requirements of regulation 12(2);

“former landlord” means the landlord which disposed of the property under Part 5 of the 1985 Act;

“local housing authority” means a district council, a London borough council, the Common Council of the City of London or the Council of the Isles of Scilly;

“offer notice” means a notice which complies with the requirements of regulation 12(1);

“owner” means the person who is the freehold or leasehold owner of a property and who is bound by a right of first refusal covenant imposed under section 156A of the 1985 Act;

“property” means a property which is subject to a right of first refusal covenant imposed under section 156A of the 1985 Act; and

“rejection notice” means a notice which complies with the requirements of regulation 12(3).

(3) These Regulations apply where a right of first refusal covenant has been imposed in relation to a dwelling-house situated in England.

Section 2 Operative provisions for leasehold and freehold properties

(1) These Regulations apply where there is to be a relevant disposal, other than an exempted disposal, of the owner’s interest in the property.

(2) Where the owner has a leasehold interest he must comply with the requirements of regulation 3.

(3) Where the owner has a freehold interest he must comply with the requirements of regulation 4.

Section 3 Service of offer notice - leasehold property

The owner must serve an offer notice on—

(a) the former landlord, if it is still the landlord; or

(b) if the former landlord is not still the landlord, the person in which the reversionary interest is currently vested.

Section 4 Service of offer notice - freehold property

The owner must serve an offer notice on—

(a) the former landlord (if that person is still in existence); or

(b) if the former landlord is not still in existence, the local housing authority for the area in which the property is situated.

Section 5 Acknowledgement of receipt of offer notice

(1) The recipient of an offer notice under either regulation 3 or 4 must send an acknowledgement of receipt to the owner as soon as reasonably practicable.

(2) The acknowledgement of receipt must—

(a) specify the date of receipt of the offer notice; and

(b) explain the effect of regulations 6 to 10, in simple terms.

Section 6 Acceptance notices

(1) Where the recipient of an offer notice wishes to accept the offer, it must do so within the period of 8 weeks beginning with the date of receipt of the notice.

(2) Acceptance of an offer must be by acceptance notice, in which the recipient of the offer notice must either—

(a) itself accept the offer; or

(b) nominate another person to accept the offer in accordance with regulation 8.

(3) The service of an acceptance notice by any person entitled to do so shall not confer any right on the owner of the property to require that person to purchase the property unless and until that person enters into a binding contract for sale in accordance with regulation 10.

Section 7 Rejection notices

(1) The recipient of an offer notice must serve a rejection notice as soon as it has decided that it does not wish to either—

(a) accept the offer itself; or

(b) nominate another person to accept the offer in accordance with regulation 8.

(2) The rejection notice must be served within 8 weeks from the date of receipt of the offer notice.

Section 8 Nomination of another person to accept an offer

(1) The recipient of an offer notice may nominate another person to accept the offer.

(2) The only persons who can be nominated to accept an offer are those who either—

(a) are registered as a social landlord under Part 1 of the Housing Act 1996; or

(b) fulfil the landlord condition in section 80 of the 1985 Act.

(3) Before a person can be nominated to accept a particular offer, that person must have given an unequivocal indication in writing to the recipient of the offer notice that it wishes to be nominated to accept the offer.

(4) For the purposes of this regulation, “in writing” includes a document transmitted by facsimile or other electronic means.

Section 9 Disposal of property and requirement for further offer notice

(1) Where an owner has served an offer notice and the recipient—

(a) has not served either an acceptance notice or a rejection notice within 8 weeks from the date of receipt of the offer notice; or

(b) has served a rejection notice,

then, subject to paragraph (2), the owner may dispose of the property as he sees fit; and these Regulations shall not apply to any subsequent disposal of the property by him.

(2) If after the expiry of the period of 12 months, as determined in accordance with paragraphs (3) or (4) as appropriate, the owner retains his interest in the property, these Regulations shall apply if there is to be a disposal of a kind described in regulation 2(1).

(3) In the circumstances referred to in paragraph (1)(a), the 12 month period begins the day after the expiry of the 8 week period.

(4) In the circumstances referred to in paragraph (1)(b), the 12 month period begins the day after that on which the rejection notice is served.

Section 10 Time limit for completion of purchase

(1) A person who accepts an offer must enter into a binding contract with the owner for the purchase of the property—

(a) not later than 12 weeks after the date on which the acceptance notice is served on the owner; or

(b) not later than 4 weeks after the date of receipt of written notification from the owner that he is ready to complete;

whichever is later.

(2) If the time limit in paragraph (1) is not complied with, the owner may dispose of the property as he sees fit; and these Regulations shall not apply to any subsequent disposal of the property by him.

(3) If either or both of the parties request that the District Valuer determine the value of the property in accordance with section 158 of the 1985 Act, the time from the date that the request is received by the District Valuer until the date that the determined value is notified to the parties shall be excluded from the calculation of the period in paragraph (1).

Section 11 Computation of time

In calculating a period for any purpose of these Regulations, with the exception of the 12 month period in regulation 9, Christmas Day, Good Friday, or a day which under the Banking and Financial Dealings Act 1971 is a bank holiday, shall be excluded.

Section 12 Contents of notices

(1) An offer notice must—

(a) be in writing;

(b) state that the owner wishes to dispose of the property, giving its full postal address;

(c) state that there is a covenant requiring him to first offer the property to the recipient of the notice;

(d) in relation to the property to which the notice relates—

(i) specify whether the property is a house, a flat or a maisonette;

(ii) specify the number of bedrooms;

(iii) give details of the heating system;

(iv) specify any improvements or structural changes which have been made since the purchase; and

(e) state the address at which the recipient can serve notices upon the owner.

(2) An acceptance notice must—

(a) be in writing;

(b) indicate clearly whether the person giving the notice is—

(i) accepting the offer; or

(ii) nominating another person to accept the offer; and

(c) provide the full postal address and telephone number of any nominee.

(3) A rejection notice must—

(a) be in writing; and

(b) state that the person is rejecting the offer to purchase the property.

Section 13 Service of notices

Notices under these Regulations may be served either by personal delivery, or by post.

Section 14 Disposal of property acquired under preserved right to buy

With the exception of regulations 15 to 18, these Regulations shall also apply if there is to be a relevant disposal, other than an exempted disposal, of the owner’s interest in a property acquired in exercise of the right conferred by section 171A of the 1985 Act.

Section 15 Disposal of property acquired under right to acquire

With the exception of regulations 14 and 16 to 18 these Regulations shall also apply if there is to be a relevant disposal, other than an exempted disposal, of the owner’s interest in a property acquired in exercise of the right conferred by section 16 of the Housing Act 1996 .

Section 16 Disposal of property acquired on voluntary disposal at a discount by local authority

(1) With the exception of regulations 14, 15, 17 and 18, these Regulations shall also apply if there is to be a relevant disposal, other than an exempted disposal, of the owner’s interest in a property acquired at a discount from a local authority using its power to dispose of land in section 32 of the 1985 Act, subject to the following modifications.

(2) In regulation 1—

(a) for the definition of “former landlord” substitute—

“former owner” means the local authority which disposed of the property under section 32 of the 1985 Act

(b) for the definition of “owner” substitute—

“owner” means the person who is the freehold or leasehold owner of the property and who is bound by a right of first refusal covenant imposed under section 36A of the 1985 Act

(c) for the definition of “property” substitute—

“property” means a property which is subject to a right of first refusal covenant imposed under section 36A of the 1985 Act

(3) For all occurrences of the term “former landlord” substitute “former owner”.

(4) In regulation 10(3), for “section 158” substitute “section 36B ”.

Section 17 Disposal of property acquired on voluntary disposal at a discount by registered social landlord

(1) With the exception of regulations 14 to 16 and 18, these Regulations shall also apply if there is to be a relevant disposal, other than an exempted disposal, of the owner’s interest in a property acquired at a discount from a registered social landlord using its power to dispose of land in section 9 of the Housing Act 1996, subject to the following modifications.

(2) In regulation 1—

(a) for the definition of “former landlord” substitute—

“former owner” means the registered social landlord which disposed of the property under section 9 of the Housing Act 1996

(b) for the definition of “owner” substitute—

“owner” means the person who is the freehold or leasehold owner of the property and who is bound by a right of first refusal covenant imposed under section 12A of the Housing Act 1996

(c) for the definition of “property” substitute—

“property” means a property which is subject to a right of first refusal covenant imposed under section 12A of the Housing Act 1996

(3) In regulation 10(3), for “section 158 of the 1985 Act” substitute “section 12B of the Housing Act 1996”.

(4) For all occurrences of the term “former landlord” substitute “former owner”.

Section 18 Disposal of property acquired on voluntary disposals at a discount by housing action trust

(1) With the exception of regulations 14 to 17, these Regulations shall also apply if there is to be a relevant disposal, other than an exempted disposal, of the owner’s interest in a property acquired at a discount from a housing action trust using its power to dispose of land in section 79 of the Housing Act 1988, subject to the following modifications.

(2) In regulation 1—

(a) for the definition of “former landlord” substitute—

“former owner” means the housing action trust which disposed of the property under section 79 of the Housing Act 1988

(b) for the definition of “owner” substitute—

“owner” means the person who is the freehold or leasehold owner of the property and who is bound by a right of first refusal covenant imposed under paragraph 2A of Schedule 11 to the Housing Act 1988

(c) for the definition of “property” substitute—

“property” means a property which is subject to a right of first refusal covenant imposed under paragraph 2A of Schedule 11 to the Housing Act 1988

(3) In regulation 10(3), for “section 158 of the 1985 Act” substitute “paragraph 2B of Schedule 11 to the Housing Act 1988”.

(4) For all occurrences of the term “former landlord” substitute “former owner”.