Housing and Planning Bill (HC Bill 75)

CHAPTER 4 High income social tenants: mandatory rents

74 Mandatory rents for high income social tenants

(1) The Secretary of State may by regulations make provision about the levels of
rent that a registered provider of social housing must charge a high income
5tenant of social housing in England.

(2) The regulations may, in particular, require the rent—

(a) to be equal to the market rate,

(b) to be a proportion of the market rate, or

(c) to be determined by reference to other factors.

(3) 10The regulations may, in particular, provide for the rent to be different—

(a) for people with different incomes, or

(b) for social housing in different areas.

(4) The regulations may require a registered provider of social housing to have
regard to guidance given by the Secretary of State when determining rent in
15accordance with the regulations.

(5) Regulations under this section are referred to in this Chapter as “rent
regulations”.

75 Meaning of “high income” etc

(1) Rent regulations must—

(a) 20define what is meant by “high income” for the purposes of this Chapter,
and

(b) make provision about how a person’s income is to be calculated.

(2) The regulations may, in particular—

(a) define “high income” in different ways for different areas;

(b) 25specify things that are, or are not, to be treated as income;

(c) make provision about the period by reference to which a person’s
income is to be calculated (which may be a period in the past);

(d) make provision about how a person’s income is to be verified;

(e) require a person’s household income (as defined by the regulations) to
30be taken into account;

(f) require a registered provider of social housing to have regard to
guidance given by the Secretary of State when calculating or verifying
a person’s income.

76 Information about income

(1) 35Rent regulations may give a registered provider of social housing the power to
require a tenant to provide information or evidence for the purpose of
determining whether the registered provider is obliged by the regulations to
charge a specific level of rent and what that level is.

(2) Rent regulations may require a registered provider of social housing to charge
40rent at the market rate to a tenant who has failed to comply with a requirement.

(3) Regulations made in reliance on subsection (1) may, in particular, make
provision about—

(a) the kind of information or evidence that may be required;

(b) the time within which and the manner and form in which the
5information or evidence is to be provided.

(4) In subsection (1) “tenant” includes prospective tenant.

77 HMRC information

(1) HMRC may disclose information for the purpose of enabling a registered
provider of social housing to determine whether it is obliged by rent
10regulations to charge a tenant a specific level of rent and what that level is.

(2) The information may only be disclosed to—

(a) a registered provider of social housing,

(b) the Secretary of State for the purposes of passing the information to
registered providers,

(c) 15a public body that has been given the function of passing information
between HMRC and registered providers by regulations under
subsection (3), or

(d) a body with which the Secretary of State has made arrangements for the
passing of information between HMRC and registered providers.

(3) 20The Secretary of State may by regulations—

(a) give a public body the function mentioned in subsection (2)(c), and

(b) make provision about the carrying out of that function.

(4) The Secretary of State must obtain HMRC’s consent before making—

(a) arrangements under subsection (2)(d), or

(b) 25regulations under subsection (3).

(5) Information disclosed under this section to the Secretary of State or to a body
mentioned in subsection (2)(c) or (d) may be passed on to a registered provider
for which it is intended.

(6) Information disclosed under this section may not otherwise be further
30disclosed without authorisation from HMRC.

(7) Where a person contravenes subsection (6) by disclosing any revenue and
customs information relating to a person whose identity—

(a) is specified in the disclosure, or

(b) can be deduced from it,

35section 19 of the Commissioners for Revenue and Customs Act 2005 (wrongful
disclosure) applies in relation to that disclosure as it applies in relation to a
disclosure of such information in contravention of section 20(9) of that Act.

(8) In this section—

• “HMRC” means the Commissioners for Her Majesty’s Revenue and
  40Customs;

• “revenue and customs information relating to a person” has the meaning
  given by section 19(2) of the Commissioners for Revenue and Customs
  Act 2005;

• “tenant” includes prospective tenant.

78 Power to increase rents and procedure for changing rents

(1) Rent regulations may give a registered provider of social housing power to
increase the rent payable under a tenancy for the purpose of complying with
the regulations.

(2) 5Rent regulations may make provision about the procedure for changing rent to
comply with the regulations (whether the change is made using a power given
by regulations under subsection (1) or otherwise).

(3) Regulations made in reliance on subsection (2) may, in particular—

(a) make provision about the review of decisions to increase rent;

(b) 10give rights of appeal to the First-tier Tribunal and amend existing rights
of appeal.

(4) Regulations under this section may amend any provision made by or under an
Act passed before this Act or in the same Session.

79 Payment by local authority of increased income to Secretary of State

(1) 15Rent regulations may require a local housing authority to make a payment or
payments to the Secretary of State in respect of any estimated increase in rental
income because of the regulations.

(2) The amount of a payment is to be calculated in accordance with the
regulations.

(3) 20The regulations may provide for deductions to be made to reflect the
administrative costs of local authorities in implementing the regulations.

(4) The regulations may provide for interest to be charged in the event of late
payment.

(5) The regulations may provide for assumptions to be made in making a
25calculation, whether or not those assumptions are, or are likely to be, borne out
by events.

(6) The regulations may make provision about how and when payments are to be
made including, in particular, provision for payments by instalment.

80 Provision of information to Secretary of State

30Rent regulations may give the Secretary of State a power to require a local
housing authority to provide information in connection with the regulations.

81 Enforcement by Regulator of Social Housing

(1) The Housing and Regeneration Act 2008 is amended as follows.

(2) In section 220 (grounds for giving an enforcement notice to a registered
35provider), after subsection (11A) insert—

“(11B) Case 12 is where the registered provider has failed to comply with rent
regulations under Chapter 4 of Part 4 of the Housing and Planning Act
2015.””

(3) In section 227 (grounds for imposing a penalty on a private registered

provider), after subsection (7A) insert—

“(7B) Case 8 is where the registered provider has failed to comply with rent
regulations under Chapter 4 of Part 4 of the Housing and Planning Act
2015.””

(4) 5In section 237 (grounds for requiring a private registered provider to pay
compensation), after subsection (4) insert—

“(5) Case 4 is where the registered provider has failed to comply with rent
regulations under Chapter 4 of Part 4 of the Housing and Planning Act
2015.””

(5) 10In section 247 (management tender), in subsection (1), after paragraph (aa) (but
before the “or” at the end) insert—

“(ab) a registered provider has failed to comply with rent regulations
under Chapter 4 of Part 4 of the Housing and Planning Act
2015,”.”

(6) 15In section 251 (appointment of manager of a private registered provider), in
subsection (1), after paragraph (aa) (but before the “or” at the end) insert—

“(ab) a private registered provider has failed to comply with rent
regulations under Chapter 4 of Part 4 of the Housing and
Planning Act 2015,”.”

82 20Interaction with other legislation and consequential amendments

(1) The Secretary of State must use the power in section 20(2) of the Welfare
Reform and Work Act 2015 to provide that section 19 of that Act does not apply
to a high income tenant of social housing to whom rent regulations apply.

(2) In section 24 of the Housing Act 1985 (rent), after subsection (5) insert—

“(5A) 25See also Chapter 4 of Part 4 of the Housing and Planning Act 2015
(mandatory rents for high income social tenants in England).””

(3) In Part 2 of Schedule 4 to the Local Government and Housing Act 1989 (the
keeping of the Housing Revenue Account: debits), after item 10 insert—

““Item 11: payments under section 79 of the Housing and Planning Act 2015

Any sums payable for the year to the Secretary of State under
30regulations made in reliance on section 79 of the Housing and
Planning Act 2015 (rents for high income social tenants: payment by
local authority of increased income to Secretary of State).””

83 Interpretation of Chapter

In this Chapter—

• 35“high income” has the meaning given by regulations under section 75;

• “local housing authority” has the meaning given by section 1 of the
  Housing Act 1985;

• “rent” includes payments under a licence to occupy;

• “rent regulations” has the meaning given by section 74;

• 40“social housing” has the same meaning as in Part 2 of the Housing and
  Regeneration Act 2008 (see sections 68 and 72 of that Act);

Housing and Planning BillPage 34

• “tenant” includes a person who has a licence to occupy;

• “tenancy” includes a licence to occupy.

Part 5 Housing, estate agents and rentcharges: other changes

5Accommodation needs in England

84 Assessment of accommodation needs

(1) In section 8 of the Housing Act 1985 (periodical review of housing needs), after
subsection (2) insert—

“(3) In the case of a local housing authority in England, the duty under
10subsection (1) includes a duty to consider the needs of people residing
in or resorting to their district with respect to the provision of—

(a) sites on which caravans can be stationed, or

(b) places on inland waterways where houseboats can be moored.

(4) In subsection (3)—

• 15“caravan” has the meaning given by section 29 of the Caravan Sites
  and Control of Development Act 1960;

• “houseboat” means a boat or similar structure designed or
  adapted for use as a place to live.””

(2) In the Housing Act 2004 omit sections 225 and 226 (accommodation needs of
20gypsies and travellers).

Housing regulation in England

85 Licences for HMO and other rented accommodation: additional tests

(1) The Housing Act 2004 is amended as follows.

(2) In section 63 (application for licences: houses in multiple occupation), in
25subsection (6)(c), after “information” insert “or evidence”.

(3) In section 66 (tests for fitness and satisfactory management arrangements:
houses in multiple occupation)—

(a) in subsection (2)—

(i) in the words before paragraph (a) omit “has”;

(ii) 30at the beginning of each of paragraphs (a) to (d) insert “has”;

(iii) in paragraph (c), after “tenant law” insert “(including Part 3 of
the Immigration Act 2014)”;

(iv) omit “or” at the end of paragraph (c);

(v) after paragraph (d) insert—

“(e) 35requires leave to enter or remain in the United
Kingdom but does not have it; or

(f) is insolvent or an undischarged bankrupt.”;”

(b) in subsection (3), for paragraph (a) substitute—

“(a) it shows that any person associated or formerly
40associated with P (whether on a personal, work or other

basis) is a person to whom any of paragraphs (a) to (f) of
subsection (2) applies, and”.”

(4) In section 87 (application for licences: certain other houses), in subsection (4)(c)
after “information” insert “or evidence”.

(5) 5In section 89 (tests for fitness and satisfactory management arrangements:
certain other houses)—

(a) in subsection (2)—

(i) in the words before paragraph (a) omit “has”;

(ii) at the beginning of each of paragraphs (a) to (c) insert “has”;

(iii) 10omit “or” at the end of paragraph (b);

(iv) at the end of paragraph (c) insert “(including Part 3 of the
Immigration Act 2014);”;

(v) after paragraph (c) insert—

“(d) requires leave to enter or remain in the United
15Kingdom but does not have it; or

(e) is insolvent or an undischarged bankrupt.”;”

(b) in subsection (3), for paragraph (a) substitute—

“(a) it shows that any person associated or formerly
associated with P (whether on a personal, work or other
20basis) is a person to whom any of paragraphs (a) to (e) of
subsection (2) applies, and”.”

86 Financial penalty as alternative to prosecution under Housing Act 2004

Schedule 4 amends the Housing Act 2004 to allow financial penalties to be
imposed as an alternative to prosecution for certain offences.

25Housing information in England

87 Tenancy deposit information

(1) The Housing Act 2004 is amended as follows.

(2) In section 212 (tenancy deposit schemes), after subsection (6) insert—

“(6A) For further provision about what must be included in the
30arrangements, see section 212A.””

(3) After section 212 insert—

“212A Provision of information to local authorities

(1) Arrangements under section 212(1) made by the Secretary of State must
require the scheme administrator—

(a) 35to give a local housing authority in England any specified
information that they request, or

(b) to provide facilities for the sharing of specified information with
a local housing authority in England.

(2) In subsection (1) “specified information” means information, of a
40description specified in the arrangements, that relates to a tenancy of
premises in the local housing authority’s area.

(3) Arrangements made by virtue of this section may make the
requirement to provide information or facilities to a local housing
authority conditional on the payment of a fee.

(4) Arrangements made by virtue of this section may include
5supplementary provision, for example about—

(a) the form or manner in which any information is to be provided,

(b) the time or times at which it is to be provided, and

(c) the notification of anyone to whom the information relates.

(5) Information obtained by a local housing authority by virtue of this
10section may be used only—

(a) for a purpose connected with the exercise of the authority’s
functions under any of Parts 1 to 4 in relation to any premises, or

(b)
for the purpose of investigating whether an offence has been
committed under any of those Parts in relation to any premises.

(6) 15Information obtained by a local housing authority by virtue of this
section may be supplied to a person providing services to the authority
for a purpose listed in subsection (5).

(7) The Secretary of State may by regulations amend the list of purposes in
subsection (5).””

(4) 20In section 250(6) (affirmative instruments), after paragraph (b) insert—

“(ba) regulations under section 212A,”.”

88 Use of information obtained for certain other statutory purposes

(1) The Housing Act 2004 is amended as follows.

(2) In section 237 (use of information obtained for certain other statutory
25purposes) after subsection (2) insert—

“(3) The Secretary of State may by regulations amend this section so as to
change the list of purposes for which a local housing authority in
England may use information to which it applies.””

(3) In section 250(6) (affirmative instruments), after paragraph (c) insert—

“(ca) 30regulations under section 237,”.”

Enforcement of estate agents legislation

89 Estate agents: lead enforcement authority

(1) Before section 25 of the Estate Agents Act 1979 insert—

“24A Lead enforcement authority

(1) 35In this Act “the lead enforcement authority” means—

(a) the Secretary of State, or

(b) a person whom the Secretary of State has arranged to be the lead
enforcement authority in accordance with subsection (2).

(2) The Secretary of State may make arrangements for one of the following
to be the lead enforcement authority for the purposes of this Act (for the
whole of the United Kingdom) instead of the Secretary of State—

(a) a local weights and measures authority in Great Britain, or

(b) 5the Department of Enterprise, Trade and Investment in
Northern Ireland.

(3) The arrangements—

(a) may include provision for payments by the Secretary of State;

(b) may include provision about bringing the arrangements to an
10end.

(4) The Secretary of State may by regulations made by statutory
instrument make transitional provision for when there is a change in
the lead enforcement authority.

(5) The regulations may relate to a specific change in the lead enforcement
15authority or to changes that might arise from time to time.””

(2) In section 26(1) of that Act (enforcement authorities), in paragraph (c), for
“Department of Commerce for Northern Ireland” substitute “Department of
Enterprise, Trade and Investment in Northern Ireland”.

(3) In section 33(1) of that Act (general interpretation), for the definition of “the
20lead enforcement authority” substitute—

• “““the lead enforcement authority” has the meaning given by
  section 24A;”.”

(4) In paragraph 13(9) of Schedule 5 to the Consumer Rights Act 2015 (powers
under Part 3 of that Schedule to be exercisable for the purposes of certain
25functions of the lead enforcement authority) after “Great Britain” insert “, the
Department of Enterprise, Trade and Investment in Northern Ireland or the
Secretary of State”.

Enfranchisement and extension of long leaseholds

90 Enfranchisement and extension of long leaseholds: calculations

30Schedule 5 changes the method of calculating certain amounts under—

(a) the Leasehold Reform Act 1967, and

(b) the Leasehold Reform, Housing and Urban Development Act 1993.

Rentcharges

91 Redemption price for rentcharges

(1) 35The Rentcharges Act 1977 is amended as follows.

(2) In section 9(4)(a), after “in accordance with” insert “regulations under”.

(3) In section 10, for subsection (1) substitute—

“(1) For the purposes of section 9 above, the redemption price for a
rentcharge is to be calculated in accordance with regulations made by
40the Secretary of State.””

(4) In section 12(2), after “such” insert “transitional,”.

(5) The amendments made by this section apply in relation to cases where—

(a) an application for a redemption certificate is made under section 8 of
the Rentcharges Act 1977 before this Act is passed, but

(b) 5the instructions for redemption have not been served on the applicant
under section 9(4) of the Rentcharges Act 1977 before this Act is passed,

as well as to cases involving an application for a redemption certificate made
after this Act is passed.

Part 6 10Planning in England

Neighbourhood planning

92 Designation of neighbourhood areas

In section 61G of the Town and Country Planning Act 1990 (meaning of
“neighbourhood area”), after subsection (11) insert—

“(12) 15Regulations under subsection (11) may provide that where an
application under this section—

(a) meets prescribed criteria, or

(b) has not been determined within a prescribed period,

the local planning authority must, except in prescribed cases or
20circumstances, exercise their powers under this section to designate the
specified area as a neighbourhood area.

(13) The reference in subsection (12) to the designation of an area as a
neighbourhood area includes the modification under subsection (6) of
a designation already made.””

93 25Timetable in relation to neighbourhood development orders and plans

(1) In Schedule 4B to the Town and Country Planning Act 1990 (process for
making of neighbourhood development orders), after paragraph 13 insert—

“13A Regulations may make provision—

(a) requiring any prescribed action falling to be taken by the
30local planning authority under paragraph 12 or 13 to be taken
by a prescribed date;

(b) imposing time limits for the submission of representations
invited under paragraph 13(1).””

(2) In section 61E of that Act (neighbourhood development orders), in subsection
35(4)(b), after “as soon as reasonably practicable after the referendum is held”
insert “and, in any event, by such date as may be prescribed”.

(3) In section 38A of the Planning and Compulsory Purchase Act 2004 (meaning of
“neighbourhood development plan”), in subsection (4)(b), after “as soon as
reasonably practicable after the referendum is held” insert “and, in any event,
40by such date as may be prescribed”.

94 Making neighbourhood development orders and plans: intervention powers

(1) In Schedule 4B to the Town and Country Planning Act 1990, before paragraph
14 insert—

““Intervention powers of Secretary of State

13B (1) 5This paragraph applies where the qualifying body requests the
Secretary of State to intervene under this paragraph and—

(a) the local planning authority has failed, by the applicable date
prescribed under paragraph 13A, to take a decision as to
whether a referendum is (or referendums are) to be held on
10the making of a neighbourhood development order,

(b) a recommendation made under paragraph 10(2) is not
followed by the authority, or

(c) the authority makes any modification under paragraph 12(5)
that is not—

(i) 15a modification recommended under paragraph
10(2)(b),

(ii) a modification that the authority consider needs to be
made to secure that the draft order does not breach,
and is otherwise compatible with, EU obligations,

(iii) 20a modification that the authority consider needs to be
made to secure that the draft order is compatible with
the Convention rights, or

(iv) a modification for the purpose of correcting an error.

(2) The Secretary of State may exercise functions of the local planning
25authority under paragraph 12(2) and (3) and—

(a) if satisfied that paragraph (a) or (b) of paragraph 12(4)
applies, may direct the authority to make arrangements for a
referendum (or referendums) to be held on the making of a
neighbourhood development order;

(b) 30if not so satisfied, may direct the authority to refuse the
proposal.

(3) The Secretary of State may direct the authority to take the actions
referred to in paragraph 12(8) and (9).

(4) If by reason (wholly or partly) of new evidence or a new fact, or a
35different view taken by the Secretary of State as to a particular fact,
the Secretary of State proposes to direct the local planning authority
to act in a way that is not in accordance with what was recommended
by the examiner—

(a) the Secretary of State may require the authority to notify
40prescribed persons of the proposed direction (and the reason
for it) and invite representations;

(b) the Secretary of State may also require them to refer the issue
to independent examination.

(5) The order on which a referendum is (or referendums are) to be held
45by virtue of sub-paragraph (2)(a) is the draft order subject to such
modification (if any) as the Secretary of State or the local planning
authority consider appropriate.