Sale of local authority housing - the general consents

Local authorities have power, pursuant to sections 9 and 17 of the Housing Act 1985, to provide housing by building on land acquired for this purpose, and also to dispose of such land and buildings acquired for housing.


In Credit Suisse v Waltham Forest LBC [1997] QB 362 and Sutton LBC v Morgan Grenfell Ltd [1996] 29 HLR 608, the Court of Appeal held that the legislation as contained in part 2 of the Housing Act 1985 provided a comprehensive and exclusive code regulating the powers of authorities to provide, acquire and dispose of housing and to provide financial assistance for housing.


The provisions of part 2 of the Housing Act 1985 and in particular section 32, has the effect that local authorities cannot dispose of land or buildings acquired for housing purposes without first obtaining the consent of the Office of the Deputy Prime Minister (ODPM). A disposal without consent is void except were the disposal is of a single house to an individual or two or more individuals (see section 44).


Additionally, pursuant to section 135 of the Leasehold Reform, Housing and Urban Development Act 1993, if the number of properties an authority proposes to dispose of exceeds 499 in a five-year period, the authority is required to obtain a place in the government's annual disposals programme. However, by section 32(2), no consent is required for letting of land granted on a secure tenancy or sale under the right-to-buy provisions.


The ODPM has power, pursuant to section 34 of the 1985 Act, to give individual or general consents to authorities for the disposal of land and/or buildings acquired for the purposes of part 2 of the 1985 Act, relating to particular land or land of a particular description. In giving consent, the ODPM may attach conditions relating to the price, premium, discounts or rent to be obtained on disposal.


In exercise of powers under section 34, the ODPM has granted general consent to authorities for the disposal of properties, subject to compliance with conditions set out in the General Housing Consents 2005 - section 32 of the Housing Act 1985. The 2005 consent replaces the previous general consents contained in the General Consent for the Disposal of part 2 Dwelling Houses 1999, with effect from 21 March 2005.


The 2005 consents were the subject of consultation in November 2004. The consultation proposed to revise and revoke the 1999 consents to bring them up to date and in line with recent legislative and policy changes in the right-to-buy amendments made by the Housing Act 2004, right to lease renewals in the Commonhold and Leasehold Reform Act 2002, etcetera.


The 2005 consents are divided into six sections:


  • The general consent for the disposal of part 2 dwelling houses (the principal consent). Generally, this consent permits the sale of dwelling houses, which meet detailed and extensive conditions set out in the body of the consent, to individuals for use as their only or principal home; tenants who do not have the right to buy; builders/developers; and registered social landlords.


  • The general consent for the disposal of dwelling houses to tenants who have the right to buy acquiring with others. Generally, this consent permits the sale to a tenant with the right to buy under part 5 of the Housing Act 1985, who wishes to share it with someone who does not reside in the dwelling and/or is not a family member - on the same terms and conditions of a sale under part 5 of the 1985 Act.


  • The general consent for the disposal of part 2 dwelling houses on shared ownership terms. Generally, this consent permits the sale of dwelling houses, on conditions set out in the body of the consent, on shared ownership terms to tenants or individuals proposing to use the dwelling as their only or principal home, even where the tenant has the right to buy.


  • The general consent for the disposal of non-part 2 dwelling houses. Generally, this consent permits the sale of dwelling houses held by police authorities, county councils and housing authorities under powers other than part 2 on terms and conditions permitted by the principal consent and shared ownership.


  • The general consent for the disposal of part 2 land. Generally, this consent permits, on conditions, the sale of land and vacant dwellings (to be demolished without being used for housing accommodation).


  • The general consent for the disposal of reversionary interests in houses and flats. Generally, this consent permits the sale, at the best price reasonably obtainable, of houses held on long leases to the leaseholder and the sale of flats to tenants who are qualifying tenants for the purposes of section 5 of the Leasehold Reform, Housing and Urban Development Act 1993.



    • Where a local authority disposes of land or housing under the general consent, the further consent of the ODPM pursuant to section 133 of the Housing Act 1988 is not required for subsequent disposals by the purchaser.


    Authorities proposing to dispose of part 2 dwelling houses and/or land should consider carefully whether the proposed disposal falls within the detailed conditions set out in the general consents. If not, they will be required to apply to the ODPM for specific consent. Authorities should also bear in mind that where the total number of disposals in a five-year period exceeds 499, they will be required to apply for and obtain a place in the government's annual disposal programme before the disposal can be made.


    By William Okoya, Arden Chambers, London