Section 3 — Power to require payments or discounts on resale (subject to tapering) etc

(1) The restrictions on sale that may be specified by regulations under section 2(1)(e) in relation to a dwelling that has been sold to a qualifying first-time buyer include, in particular, restrictions —

(a) requiring a person who sells the dwelling within a specified period to make a payment to a specified person in respect of the starter homes discount, or

(b) prohibiting a person from selling the dwelling within a specified period unless the dwelling is sold to a qualifying first-time buyer at a discount.

(2) Regulations made by virtue of subsection (1) must—

(a) set out how the amount of the payment or discount is to be determined, and

(b) provide for reductions in the amount of the payment or discount according to the length of time since the dwelling was first sold to a qualifying first-time buyer.

(3) The person specified in regulations under subsection (1)(a) may be the Secretary of State, a local planning authority in England or any other person.

(4) Regulations under section 2(1)(e) may impose restrictions that require a person selling the dwelling to sell it subject to any restrictions to which he or she is subject.

(5) Regulations under section 2(1)(e) may include provision about the legal mechanism by which any requirement is to be imposed.

(6) The Secretary of State may by regulations make provision about the use of sums that are paid to a person in accordance with a requirement imposed by regulations made by virtue of subsection (1)(a) (including provision permitting or requiring the payment of sums into the Consolidated Fund).

(7) In subsection (1)(a) “starter homes discount” means the discount mentioned in section 2(1)(c) or subsection (1)(b) above.