InformationS.157 Housing Act 1985 – Restriction
Frequently Asked Questions relating to s155-s160 Housing Act 1985
What is the Section 157 Housing Act 1985 restriction?
Prospective purchasers of former Council properties in one of the designated rural areas of East Devon must comply with Section 157 of the Housing Act 1985 in that they must have lived or worked in Devon, or a combination of the two, for three years immediately prior to purchase. If there are two purchasers, only one person has to satisfy this requirement. The restriction is intended to suppress the price of the property thereby making the property affordable to local people. Local people are defined as those who have lived or worked in Devon etc. as defined above.
Q: Does the Council hold any literature explaining the restriction?
There is no literature that the Council can readily give to a person explaining the Section 157 residency restriction, except for the attached extract of the Housing Act 1985: Section 157 of the Housing Act 1985.
Q: To which areas does the restriction apply?
This restriction only applies to Council properties in rural areas and it is easier to say that it applies to the entire district save Sidmouth, Honiton, Exmouth and Seaton.
Q: What form of evidence of residency and/or employment is acceptable?
Where a purchaser qualifies because of the three year residency they should provide their solicitor with evidence that could be obtained from the electoral register of any of the Devon authorities, council tax liability, letters from employers or from academic institutions. They should then swear a statutory declaration. Where there is difficulty in obtaining evidence, their solicitor should first contact Legal Services to confirm the full requirements for obtaining a Consent Certificate before swearing the statutory declaration.
The Council will request from the purchaser’s solicitor copies of the evidence provided
Q: What happens after I have proved my residency and/or employment?
On receipt of the statutory declaration and the full names of all parties to the transaction, the Council's consent will be forwarded to the purchaser's solicitor who will arrange for it to be sent to the Land Registry on transfer of the property.
Q: What if I don’t qualify because of three year residency in Devon.
If you do not qualify because of the three year residency then you may qualify under one of the special circumstances set out in the Council’s policy. See the attached notice on the web page entitled SPECIAL NOTICE RELATING TO FUTURE SALES OF FORMER COUNCIL HOUSES. This document sets out special circumstances where a purchaser may qualify to obtain consent through key employment, economic hardship or long term family links with Devon. If you fulfil one or more of the criteria, you will need to make an application through Legal Services who will seek the support of the elected District Councillor for the ward where the property is situated. Applicants will need to provide supporting evidence as to why they qualify and this might include dates and full addresses of residence in Devon, Electoral Register records, letters from employers, self-employment details, details of existing family connections to the area etc. (All applications for special consent are considered on an individual basis based upon the information and supporting evidence provided).
Q: How long does a s157 restriction remain on the title of the property?
The restriction remains on the title in perpetuity until the statutory regime of ss155-160 Housing Act 1985 is amended or abolished. East Devon District Council will not agree to the restriction being removed unilaterally.
Q: Are there any exemptions where a s157 consent is not required and can be set aside on a legal transaction?
Yes, where a property is being transferred under a will or under a trust arising on death. Please note that a gift/sale to a child during a lifetime or a transfer into a lifetime trust are not exempt transactions and will require consent and may also incur the repayment of any right to buy discount if gifted within 5 years of the original right to buy. You should seek your own independent legal advice.
Q: Does the Council charge for providing a consent certificate
Yes, the Council charges a non-refundable administration fee for all s157 transactions. No legal work is commenced without payment of the fee. You are advised to instruct your own solicitor/conveyancer before commencing a formal application for consent.
Legal Services
East Devon District Council
October 2025
SPECIAL NOTICE RELATING TO FUTURE SALES OF FORMER COUNCIL HOUSES
It will be noted that all Council properties situated outside the urban areas of Exmouth, Sidmouth, Seaton and Honiton are sold subject to a restriction imposed under Section 157 of the Housing Act 1985, in the case of a sale under the right to buy scheme, or Section 37 of the Housing Act 1985 in the case of a sale under the Council's voluntary sales scheme.
The Council has resolved to impose the restriction to ensure as far as possible that the properties remain part of the general housing stock available for local people. The restriction is that there shall be no further disposal of the properties without the written consent of the Council. The restriction remains on the title in perpetuity until reformed or repealed by subsequent parliamentary statute.
However, the Council cannot withhold its consent if the person to whom the disposal is to be made has lived or has worked within the administrative County of Devon for the three years prior to the application for consent.
It should be further noted that a disposal includes a s157 property that is being leased or licensed. See s157 (2) (b). Any disposals where the Council’s consent has not been sought is a breach of covenant and any transaction is considered void.
The Council has also resolved that in cases where consent is not automatic consent shall only be given in exceptional circumstances or where particular hardship would arise from a refusal. The restriction will remain valid until such times as the Council may notify the owner in writing of its removal and therefore will affect all future disposals.
It is suggested that a copy of this Notice is kept with the properties Title Deeds for future reference and another copy is kept by the owner for the time being.
Legal Services
East Devon District Council
October 2025