On 18 May 2020, the Ministry of Housing Communities and Local Government (MHCLG) wrote to all social housing residents in England (residents).
If the pledge finds its way into policy and legislation in the new Government it does raise the question though of “what if?”
For all Housing Associations
Seemingly associations will be compensated; however even if full compensation unanticipated spikes in sales may lead to a fall in asset cover because replacement assets may simply not be available – associations might wish at least to consider whether this might be an issue for them.
For LSVT Housing Associations Only
For LSVT associations LSVTs will recall at stock transfer the Land Registry record a list of all properties susceptible to the PRTB. Depending on what the legislation looks like it might be necessary to have a clear public record of which property has the PRTB and which property has any new RTB. We recommend that LSVTs ensure that list is accurate as the list is a good place to start with for what is the PRTB. Every time a tenant with the PRTB purchases their home the Land Registry will (providing the sale transfer has been accurately drafted) delete that entry. But it is for the landlord to inform the Land Registry when either the tenant moves to another house within their housing stock (so taking their PRTB with them) by using form PSD 101 and when a tenant with the PRTB terminates their tenancy by using form PSD 103. There will be many occasions where landlords will complete both forms –e.g. where a tenant transfers to another property owned by the landlord and the next tenant occupying the property does not have the PRTB. Examples include when properties are demolished or mutual exchanges (incoming tenant not have the PRTB).
(There is no fee for the cancellation of any entry, there is a nominal fee for each new entry (which would only be where a tenant moves)).
In terms of potential challenges, these cannot of course be launched until after the policy is actually introduced and prior to that (as well as the general election) there would be an opportunity to respond strongly to any consultation on new legislation, which should be seized on.
For more information
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