The Scottish Housing Regulator assumed full regulatory powers on 1 April 2012, but what does this actually mean for RSLs in Scotland? And do they need consent from the Regulator before any disposal of land?

Section 107 of the Housing (Scotland) Act 2010 now replaces Section 66. RSLs must obtain consent from the Regulator prior to any disposal of land, unless the type of disposal is specifically exempted or is covered by General Consent.

This all sounds familiar, but there is something new:-

Where a disposal is made without obtaining prior consent, then the disposal will be void. A disposal includes entering into a sale contract. There is no provision for obtaining retrospective consent.

Section 107 Consent will be needed for:

• Sale of land or untenanted houses over ?100,000;
• Sale of tenanted social houses;
• Grant of a security over housing or land;
• Grant of a lease to another organisation where this is not covered by General Consent.

General Consent will cover: -

• Sale of land, untenanted social houses or other assets up to and including ?100,000;
• Sale of untenanted social houses to another RSL;
• Sale of untenanted houses, land or other assets to another RSL as part of a development agreement made at the development stage;
  • Grant of a right of way, access, wayleave or servitude;
  • Grant of a lease to a non-profit making body (this is subject to conditions).

These lists are not exhaustive and are subject to various exceptions and conditions. The legislation and the Regulator's guidance should also always be consulted. click here for further guidance.

If you'd like legal advice from lawyers who specialise in affordable housing  get in touch with one of the team, who'd be pleased to help.