3 Property Eligibility

3.1 General

3.1.1 Not all properties owned by RSLs are eligible for RTA.   Eligible and Excluded properties are set out below.

3.2 Ineligible, Eligible & Excluded Properties

3.2.1 Specific terms are used to describe the status of properties under the RTA.  They are:

Ineligible: RTA does not apply to properties funded before 1st April 1997, as they were not developed with SHG, but with HAG or some other form of subsidy.

Eligible: Properties part funded with Social Housing Grant or Disposal Proceeds Fund (see 3.2.2).

Excluded: Some properties that were part funded with SHG are nevertheless ineligible for the RTA by virtue of their location, design etc.  For details see Section 3.3.
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.

3.2.2  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 Agency 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.
  

3.2.3 Properties that received Grant Confirmation before 1 April 1997 are ineligible from RTA. Allocations received before 1 April 1997 do not exempt schemes from RTA where Grant Confirmation is on or after 1 April 1997.
 
3.2.4 RTA does not apply where a non public sector body owns the freehold interest (subject to the exception noted in paragraph 3.2.5) .

3.2.5  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, which meant that if exercised they became the new freeholder.  As the freehold interest would no longer be held by an RSL or public sector landlord the RSL assured tenants in the block would lose the RTA. This was an unintended consequence of that legislation. This was remedied in the Housing Act 2004. From 18 January 2005, Section 202 of that Act now allows Assured Tenants in these circumstances to keep their RTA.
 
3.3  Excluded Properties

3.3.1  All dwellings provided with the benefit of SHG, from the Disposals Proceeds Fund or transferred from a public sector landlord are subject to RTA unless they are excluded. 

3.3.2 For a list of all the properties that the Homes and Communities Agency believe are excluded from the RTA, click on the asterisk. However, RSLs are advised to take their own legal advice in determining whether a property is excluded from the provisions of RTA.   

  

3.4  Properties To Be Demolished 

3.4.1  The following paragraphs provide a brief outline of the procedures relating to RTA in respect of properties to be demolished. Follow asterisk.  

 

3.4.2 When an RSL decides to demolish a property within five years an initial demolition notice must be sent to tenants. For guidance on the contents of the notice click on the asterisk.  
 

3.4.3 When an RSL subsequently decides not to demolish the property it must serve a revocation notice as soon as is reasonably practical. 

3.4.4  IMPORTANT: 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.