1 ELIGIBLE PROPERTIES

1.1 The RTA only applies to secure and assured tenants occupying self contained accommodation for rent. Assured shorthold tenancies, those who hold long leases or tenants of shared accommodation will not be eligible for the scheme. See RTA-2
 
 1.2 Schemes that received Grant Confirmation before 1 April 1997 are excluded from the RTA. Allocations received before 1 April 1997 do not exempt schemes from the RTA where Grant Confirmation is on or after 1 April 1997.
 
 1.3 Only properties provided through SHG on or after 1 April 1997, including properties provided with the receipts from the Disposals Proceeds Funds and property transferred from public sector landlords on or after that date will be subject to the right. In practice, this generally means:

• schemes receiving Grant Confirmation from the Corporation or local authority on or after 1 April 1997, (this also includes schemes approved as re-improvement schemes and works only rehabilitation but excludes schemes for major repairs and miscellaneous works);
• local authority stock transferred to an RSL after 1 April 1997, however funded;
• properties provided out of the Disposal Proceeds Fund.

 
 1.4 The 1996 Housing Act requires that the freehold interest in the dwelling must at all times have been held by an RSL or public sector landlord. However under provisions of the Leasehold Reform,  Housing and Urban Development Act 1993 qualifying tenants of flats (ie those with long leaseholds) were given rights to collective enfranchisement, and when exercised became the new freeholder. Therefore, when a group of RSL leaseholders enfranchise, the other RSL assured tenants in the same block of flats who are not long leaseholders would lose the Statutory Right to Acquire their rented home. This was an unintended consequence of leasehold legislation. From 18 January 2005, Section 202 of The Housing Act 2004 now  includes provision to preserve the Rights to Acquire for assured tenants in the above circumstances. 

  
 2 EXCLUDED PROPERTIES

2.1 All dwellings provided with the benefit of SHG, from the Disposals Proceeds Fund or transferred from a public sector landlord are subject to the RTA unless they are exempt under Part V of the Housing Act 1985 as amended by The Housing Act 2004, The Housing (Right to Acquire) Regulations 1997, or under one of the Housing (Right to Acquire or Enfranchisement) (Designated Rural Areas) Orders 1997.
 
2.2 RSLs should refer to details in paragraph 2.1 above for the list of exclusions.  However, properties excluded from the RTA include the following: 

• properties where the landlord has insufficient legal interest i.e. where the property is a house, a lease with a term less than 21 years and for a flat, a lease with a term less than 50 years;
• the landlord is a co-operative housing association;
• properties situated in a rural area designated by order of the Secretary of State under Section 17(1)(b) (Right to Acquire: Supplementary Provisions) of the Housing Act 1996;
• properties let in connection with employment;
• properties designed with special features for letting to people with physical disabilities. To gain exemption the property should be one of a group of properties normally let to people with physical disabilities and a social service or special facility is provided close by wholly or partly to assist the tenants;
• properties with special facilities let to tenants who are suffering or have suffered from a mental disorder. As above the property must be one of a group of properties and a social service or special facility must be provided close by wholly or partly to assist the tenants;
• properties which are one of a group of properties which it is the practice of the landlord to keep for occupation by persons who have special needs and require intensive housing assistance and such intensive housing assistance is provided either directly or indirectly by the landlord;
• properties let to persons of pensionable age. Such properties must be one of a group of properties let to the elderly and have special facilities consisting of or including a resident warden, a non-resident warden with a calling facility and a common room close by;
• properties held on Crown tenancies;
• properties where the attributable loan debt is equal to or greater that its current market value;
• properties that are due to be demolished within 24 months of an RSL serving a final demolition notice, and having followed the prescribed notification process as contained in s182 of the Housing Act 2004. (See para 3 below).

2.3 RSLs are advised to take their own legal advice in determining whether a property is excluded from the provisions of the RTA.

2.4 To determine whether a property is situated in a designated rural area RSLs should refer to the 1977 Statutory Instruments: for The Housing (Right to Acquire or Enfranchisement) (Designated Rural Areas).  These can be viewed at www.opsi.gov.uk/stat.htm The Statutory Instruments may refer to ‘designated rural area maps’, which can be viewed at a relevant regional Government Office or at the Housing Corporation. If you wish to view the maps at the Housing Corporation’s regional office please make arrangements with the appropriate Regional Informal Officer – telephone 0845.230.7000.

3 PROPERTIES TO BE DEMOLISHED

3.1 With effect from 18.1.2005 s183 of The Housing Act 2004 introduces new procedures relating to RTA in respect of properties to be demolished.  The following paragraphs provide a brief outline of the new provisions, but RSLs should familiarise themselves with the contents and requirements of this part of the Act, and in particular the publicity requirements.
 
3.2 When an RSL decides to demolish a property within five years an initial demolition notice should be sent to tenants.  This notice should include details of the intention to demolish; the reasons for demolition; and the intended timetable. RSLs should also notify tenants of the effects of the initial demolition notice, ie that is while it is in force the landlord’s obligation to complete an RTA sale is suspended; it does not prevent new RTA applications being made; and that where a valid RTA claim has been made the tenant may be compensated for expenditure reasonably incurred before the notice was served.
 
3.3 When an RSL subsequently decides not to demolish the property it must serve a revocation notice as soon as is reasonably practical. 

3.4 If an initial demolition notice expires and demolition has not taken place, no further demolition notice can be served on that property for a period of five years.