InformationS.160 Housing Act – Exempted Transactions
Explained: Exempted Transactions under the Housing Act 1985 (Section 160)
If you have bought your home through the Right to Buy scheme, you may normally have restrictions on selling it within the first few years (such as having to repay some of the discount or offer it to the council first).
However, some types of property transfers are "exempted transactions" (or "exempt disposals") under Section 160 of the Housing Act 1985. This means that if you transfer your property in one of the following ways, you do not have to:
- Repay the Right to Buy discount you received.
- Formally offer the property back to the local authority.
What are the Exempted Transactions?
The main types of exempted transactions are:
1. Transfer to a "Qualifying Person"
You can transfer the whole property to a specific group of people without penalty. A "qualifying person" is:
- Yourself or a joint owner: Transferring from joint names to a single name (e.g., separating from a co-owner).
- A spouse or civil partner: Transferring the home to your husband, wife, civil partner, or former spouse/civil partner.
- A close family member who lives with you: Transferring the home to a parent, grandparent, child, grandchild, brother, sister, uncle, aunt, nephew, or niece who has lived with you in the property as their main home for at least 12 months before the transfer takes place.
2. Inheritance
If the property is transferred to a beneficiary through a will or the rules of intestacy (when someone dies without a will), this is an exempt disposal.
- Note: While the inheritance is exempt, if the beneficiary then decides to sell the property to a third party within the original restriction period, that subsequent sale would trigger the rules about discount repayment and the right of first refusal.
3. Court Orders
Transfers that happen because of specific court orders, typically during family or divorce proceedings, are exempt. These include orders related to property adjustment during divorce or civil partnership dissolution, or financial provision orders made after a death.
4. Compulsory Purchase
If a public authority uses compulsory purchase powers to buy your property (or you sell by agreement under the threat of this power), it is an exempt disposal.
5. Disposal of Associated Land
The disposal of minor pieces of land included with the dwelling house (e.g., a small piece of garden ground) can also be exempt.
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