SCHEDULES

Section 17

SCHEDULE 1 Financial penalty for breach of banning order

Notice of intent

1 5Before imposing a financial penalty on a person for breaching a banning
order a local housing authority must give the person notice of its proposal to
do so (a “notice of intent”).

2 (1) The notice of intent must be given before the end of the period of 6 months
beginning with the first day on which the authority has sufficient evidence
10of the person’s breach of the banning order.

(2) But if the person is in breach of the banning order on that day, and the breach
continues beyond the end of that day, the notice of intent may be given—

(a) at any time when the breach is continuing, or

(b) within the period of 6 months beginning with the last day on which
15the breach occurs.

3 The notice of intent must set out—

(a) the amount of the proposed financial penalty,

(b) the reasons for proposing to impose the financial penalty, and

(c) information about the right to make representations under
20paragraph 4.

Right to make representations

4 (1) A person who is given a notice of intent may make written representations
to the local housing authority about the proposal to impose a financial
penalty.

(2) 25Any representations must be made within the period of 28 days beginning
with the day after that on which the notice was given (“the period for
representations”).

Final notice

5 After the end of the period for representations the local housing authority
30must—

(a) decide whether to impose a financial penalty on the person, and

(b) if it decides to impose a financial penalty, decide the amount of the
penalty.

6 If the authority decides to impose a financial penalty on the person, it must
35give the person a notice (a “final notice”) imposing that penalty.

7 The final notice must require the penalty to be paid within the period of 28
days beginning with the day after that on which the notice was given.

8 The final notice must set out—

(a) the amount of the financial penalty,

(b) 5the reasons for imposing the penalty,

(c) information about how to pay the penalty,

(d) the period for payment of the penalty,

(e) information about rights of appeal, and

(f) the consequences of failure to comply with the notice.

10Withdrawal or amendment of notice

9 (1) A local housing authority may at any time—

(a) withdraw a notice of intent or final notice, or

(b) reduce the amount specified in a notice of intent or final notice.

(2) The power in sub-paragraph (1) is to be exercised by giving notice in writing
15to the person to whom the notice was given.

Appeals

10 (1) A person to whom a final notice is given may appeal to the First-tier Tribunal
against—

(a) the decision to impose the penalty, or

(b) 20the amount of the penalty.

(2) An appeal under this paragraph must be brought within the period of 28
days beginning with the day after that on which the final notice was sent.

(3) If a person appeals under this paragraph, the final notice is suspended until
the appeal is finally determined or withdrawn.

(4) 25On an appeal under this paragraph the First-tier Tribunal may confirm, vary
or cancel the final notice.

(5) The final notice may not be varied under sub-paragraph (4) so as to make it
impose a financial penalty of more than the local housing authority could
have imposed.

30Recovery of financial penalty

11 (1) This paragraph applies if a person fails to pay the whole or any part of a
financial penalty which, in accordance with this Schedule, the person is
liable to pay.

(2) The local housing authority which imposed the financial penalty may
35recover the penalty or part on the order of the county court as if it were
payable under an order of that court.

(3) In proceedings before the county court for the recovery of a financial penalty
or part of a financial penalty, a certificate which is—

(a) signed by the chief finance officer of the local housing authority
40which imposed the penalty, and

(b) states that the amount due has not been received by a date specified
in the certificate,

is conclusive evidence of that fact.

(4) A certificate to that effect and purporting to be so signed is to be treated as
being so signed unless the contrary is proved.

(5) In this paragraph “chief finance officer” has the same meaning as in section 5
5of the Local Government and Housing Act 1989.

Section 19

SCHEDULE 2 Banned person may not hold HMO licence etc

1 The Housing Act 2004 is amended as follows.

2 In section 64 (grant or refusal of HMO licence), in subsection (3), after
10paragraph (a) insert—

“(aa) that no banning order under section 15 of the Housing and
Planning Act 2015 is in force against a person who—

(i) owns an estate or interest in the house or part of it,
and

(ii) 15is a lessor or licensor of the house or part;”.”

3 In section 66 (HMO licence: tests for fitness etc), after subsection (3) insert—

“(3A) A person is not a fit and proper person for the purposes of section
64(3)(b) or (d) if a banning order under section 15 of the Housing and
Planning Act 2015 is in force against the person.””

4 20In section 68 (licences: general requirements and duration), in subsection
(3)(b), after “section 70” insert “or 70A”.

5 For the heading of section 70 substitute “Power to revoke licences”.

6 After section 70 insert—

“70A Duty to revoke licence in banning order cases

(1) 25The local housing authority must revoke a licence if a banning order
is made against the licence holder.

(2) The local housing authority must revoke a licence if a banning order
is made against a person who—

(a) owns an estate or interest in the house or part of it, and

(b) 30is a lessor or licensor of the house or part.

(3) The notice served by the local housing authority under paragraph 24
of Schedule 5 must specify when the revocation takes effect.

(4) The revocation must not take effect earlier than the end of the period
of 7 days beginning with the day on which the notice is served.

(5) 35In this section “banning order” means a banning order under section
15 of the Housing and Planning Act 2015.””

7 In section 88 (grant or refusal of Part 3 licence), in subsection (3), after

paragraph (a) insert—

“(aa) that no banning order under section 15 of the Housing and
Planning Act 2015 is in force against a person who—

(i) owns an estate or interest in the house or part of it,
5and

(ii) is a lessor or licensor of the house or part;”.”

8 In section 89 (Part 3 licences: tests for fitness etc), after subsection (3) insert—

“(3A) A person is not a fit and proper person for the purposes of section
88(3)(a) or (c) if a banning order under section 15 of the Housing and
10Planning Act 2015 is in force against the person.””

9 In section 91 (licences: general requirements and duration), in subsection
(3)(b), after “section 93” insert “or 93A”.

10 For the heading of section 93 substitute “Power to revoke licences”.

11 After section 93 insert—

“93A 15Duty to revoke licence in banning order cases

(1) The local housing authority must revoke a licence if a banning order
is made against the licence holder.

(2) The local housing authority must revoke a licence if a banning order
is made against a person who—

(a) 20owns an estate or interest in the house or part of it, and

(b) is a lessor or licensor of the house or part.

(3) The notice served by the local housing authority under paragraph 24
of Schedule 5 must specify when the revocation takes effect.

(4) The revocation must not take effect earlier than the end of the period
25of 7 days beginning with the day on which the notice is served.

(5) In this section “banning order” means a banning order under section
15 of the Housing and Planning Act 2015.””

12 (1) Schedule 5 (licences under Parts 2 and 3: procedure and appeals) is amended
as follows.

(2) 30After paragraph 11 insert—

“11A The requirements of paragraph 5 do not apply where the refusal
to grant the licence was because of section 66(3A) or 89(3A)
(person with banning order not a fit and proper person).””

(3) After paragraph 25 insert—

“25A 35The requirements of paragraph 22 do not apply if the revocation is
required by section 70A or 93A (duty to revoke licence in banning
order cases).””

(4) After paragraph 32 insert—

““No rights of appeal where banning order involved

32A (1) The right of appeal under paragraph 31(1)(a) does not apply
where a licence is refused because of section 66(3A) or 89(3A)
5(person with banning order not a fit and proper person).

(2) The right of appeal under paragraph 32(1)(a) does not apply in
relation to the revocation of a licence required by section 70A
or 93A (duty to revoke licence in banning order cases).””

Section 20

SCHEDULE 3 10Management orders following banning order

1 The Housing Act 2004 is amended as follows.

2 (1) Section 101 (interim and final management orders) is amended as follows.

(2) In subsection (1), at the end insert “or property let in breach of a banning
order under section 15 of the Housing and Planning Act 2015”.

(3) 15In subsection (3)(b), omit “the grant of a licence under Part 2 or 3 in respect
of the house or”.

(4) In subsection (5), after “section 102(7)” insert “or (7A)”.

(5) After subsection (6) insert—

“(6A) In this Chapter  any reference to “the house”, in relation to an interim
20or final management order that relates to property let in breach of a
banning order under section 15 of the Housing and Planning Act
2015, means the property let in breach of that order.

(6B) In this Chapter any reference to property that is let in breach of a
banning order under section 15 of the Housing and Planning Act
252015 includes property in respect of which a breach is (or would be)
caused by a licence to occupy.

(6C) When determining for the purposes of this Chapter whether
property is let in breach of a banning order disregard any exception
included in the banning order in reliance on section 16 of the
30Housing and Planning Act 2015.””

3 (1) Section 102 (making of interim management orders) is amended as follows.

(2) In subsection (1)(b), for “or (7)” substitute “, (7) or (7A)”.

(3) After subsection (7) insert—

“(7A) The authority may make an interim management order in respect of
35any property let in breach of a banning order under section 15 of the
Housing and Planning Act 2015.”

(4) In subsection (9), after “the making of an interim management order” insert
“under subsection (2), (3), (4) or (7)”.

4 (1) Section 105 (operation of interim management orders) is amended as
follows.

(2) After subsection (7) insert—

“(7A) An order under section 102(7A) ceases to have effect (if it has not
5already ceased to have effect) when the ban on letting housing in
England ceases to have effect.

(7B) In subsection (7A) “the ban on letting housing in England” means the
ban on letting contained in the banning order mentioned in section
102(7A).””

(3) 10In subsection (8), for “and” substitute “to”.

(4) After subsection (9) insert—

“(9A) If—

(a) the IMO was made under section 102(7A), and

(b) the date on which the FMO or another interim management
15order comes into force in relation to the house (or part of it)
following the disposal of the appeal is later than the date on
which the IMO would cease to have effect apart from this
subsection,

the IMO continues in force until that later date.””

5 (1) 20Section 110 (financial arrangements while order is in force) is amended as
follows.

(2) In subsection (4), at the beginning insert “If the interim management order
is not made under section 102(7A),”.

(3) After subsection (5) insert—

“(5A) 25The Secretary of State may by regulations make provision about how
local authorities are to deal with any surplus in a case where the
interim management order was made under section 102(7A).

(5B) In subsection (5A) “surplus” means any amount of rent or other
payments collected or recovered as mentioned in subsection (3) that
30remains after deductions to meet relevant expenditure and any
amounts of compensation payable as mentioned in that subsection.””

6 In section 112 (revocation of interim management orders), after subsection
(2) insert—

“(2A) An interim management order may not be revoked under this
35section if—

(a) the immediate landlord is subject to a banning order under
section 15 of the Housing and Planning Act 2015,

(b) there is in force an agreement which, under section 108, has
effect as a lease or licence granted by the authority, and

(c) 40revoking the interim management order would cause the
immediate landlord to breach the banning order because of
the effect of section 130(2)(b).””

7 (1) Section 113 (making of final management orders) is amended as follows.

(2) In subsection (1), for “section 102” substitute “any provision of section 102
other than subsection (7A) of that section”.

(3) After subsection (3) insert—

“(3A) A local housing authority who have made an interim management
5order under section 102(7A) may make a final management order so
as to replace the interim management order as from its expiry date if
the authority consider that making the final management order is
necessary for the purpose of protecting, on a long-term basis, the
health, safety or welfare of persons occupying the house, or persons
10occupying or having an estate or interest in any premises in the
vicinity.””

(4) In subsection (4), after “under” insert “subsection (2), (3), (5) or (6) of”.

(5) After subsection (6) insert—

“(6A) A local housing authority who have made a final management order
15in respect of a house under subsection (3A) or this subsection (“the
existing order”) may make a new final management order so as to
replace the existing order as from its expiry date if the authority
consider that making the new order is necessary for the purpose of
protecting, on a long-term basis, the health, safety or welfare of
20persons occupying the house, or persons occupying or having an
estate or interest in any premises in the vicinity.””

8 In section 114 (operation of final management orders), after subsection (4)
insert—

“(4A) An order under section 113(3A) or (6A) ceases to have effect (if it has
25not already ceased to have effect) when the relevant ban on letting
housing in England ceases to have effect.

(4B) In subsection (4A) “the relevant ban on letting housing in England”
means the ban on letting contained in the banning order mentioned
in section 102(7A).””

9 30In section 119 (management schemes and accounts), after subsection (4)
insert—

“(4A) Subsection (4)(f) and (g) does not apply in a case where the final
management order was made under section 113(3A) or (6A).

(4B) The Secretary of State may by regulations make provision about how
35local authorities are to deal with any surplus in a case where the final
management order was made under section 113(3A) or (6A).

(4C) In subsection (4B) “surplus” means any amount of rent or other
payments that the authority have collected or recovered, by virtue of
this Chapter, that remains after deductions to meet relevant
40expenditure and any amounts of compensation payable as
mentioned in subsection (2)(d).””

10 In section 122 (revocation of final management orders), after subsection (2)
insert—

“(2A) A final management order may not be revoked under this section at
45a time when—

(a) the immediate landlord is subject to a banning order under
section 15 of the Housing and Planning Act 2015,

(b) there is in force an agreement which, under section 117, has
effect as a lease or licence granted by the authority, and

(c) 5revoking the final management order would cause the
immediate landlord to breach the banning order because of
the effect of section 130(2)(b).””

11 In section 129 (termination of management orders: financial arrangements),
in subsection (2), after “order” insert “that is not made under section
10102(7A)”.

12 (1) Schedule 6 (management orders: procedure and appeals) is amended as
follows.

(2) In paragraph 7(4)(c), for “section 105(4) and (5) or 114(3) and (4)” substitute
“section 105(4), (5) or (7A) or 114(3), (4) or (4A)”.

(3) 15In paragraph 26, after sub-paragraph (4) insert—

“(4A) An interim management order may not be revoked under this
paragraph if—

(a) the immediate landlord is subject to a banning order under
section 15 of the Housing and Planning Act 2015,

(b) 20there is in force an agreement which, under section 108,
has effect as a lease or licence granted by the authority, and

(c) revoking the interim management order specified in the
order would cause the immediate landlord to breach the
banning order because of the effect of section 130(2)(b).

(4B) 25In a case where sub-paragraph (4A) would otherwise prevent the
tribunal from revoking the order with effect from a particular
date, the tribunal may require the local housing authority to
exercise any power it has to bring an agreement mentioned in that
sub-paragraph to an end.””

(4) 30In paragraph 30, after sub-paragraph (5) insert—

“(5) In a case where subsection (2A) of section 112 or 122 would
otherwise prevent the tribunal from revoking the order with effect
from a particular date, the tribunal may require the local housing
authority to exercise any power it has to bring an agreement
35mentioned in that subsection to an end.””

Section 86

SCHEDULE 4 Financial penalty as alternative to prosecution under Housing Act 2004

1 The Housing Act 2004 is amended as follows.

2 After section 30 insert—

“30A Financial penalty as alternative to prosecution: England only

(1) The local housing authority may impose a financial penalty on a person if
satisfied that the person’s conduct amounts to an offence under section 30
5in respect of premises in England.

(2) Only one financial penalty under this section may be imposed on a
person in respect of the same conduct.

(3) The amount of a financial penalty imposed under this section is to be
determined by the local housing authority, but must not be more
10than £5,000.

(4) The local housing authority may not impose a financial penalty in
respect of any conduct amounting to an offence under section 30 if—

(a) the person has been convicted of an offence under that
section in respect of the conduct, or

(b) 15criminal proceedings for the offence have been instituted
against the person in respect of the conduct and the
proceedings have not been concluded.

(5) If a local housing authority has imposed a financial penalty on a
person in respect of any conduct amounting to an offence under
20section 30 the person may not be convicted of an offence under that
section in respect of the conduct.

(6) Schedule 2A deals with—

(a) the procedure for imposing financial penalties,

(b) appeals against financial penalties,

(c) 25enforcement of financial penalties, and

(d) guidance in respect of financial penalties.

(7) The Secretary of State may by regulations make provision about how
local housing authorities are to deal with financial penalties
recovered.

(8) 30The Secretary of State may by regulations amend the amount
specified in subsection (3) to reflect changes in the value of money.

(9) For the purposes of this section a person’s conduct includes a failure
to act.””

3 After section 72—

“72A 35Financial penalty as alternative to prosecution: England only

(1) The local housing authority may impose a financial penalty on a person if
satisfied that the person’s conduct amounts to an offence under section 72
in respect of premises in England.

(2) Only one financial penalty under this section may be imposed on a
40person in respect of the same conduct.

(3) The amount of a financial penalty imposed under this section is to be
determined by the local housing authority, but must not be more
than £5,000.

(4) The local housing authority may not impose a financial penalty in
respect of any conduct amounting to an offence under section 72 if—

(a) the person has been convicted of an offence under that
section in respect of the conduct, or

(b) 5criminal proceedings for the offence have been instituted
against the person in respect of the conduct and the
proceedings have not been concluded.

(5) If a local housing authority has imposed a financial penalty on a
person in respect of any conduct amounting to an offence under
10section 72 the person may not be convicted of an offence under that
section in respect of the conduct.

(6) Schedule 2A deals with—

(a) the procedure for imposing financial penalties,

(b) appeals against financial penalties,

(c) 15enforcement of financial penalties, and

(d) guidance in respect of financial penalties.

(7) The Secretary of State may by regulations make provision about how
local housing authorities are to deal with financial penalties
recovered.

(8) 20The Secretary of State may by regulations amend the amount
specified in subsection (3) to reflect changes in the value of money.

(9) For the purposes of this section a person’s conduct includes a failure
to act.””

4 After section 95—

“95A 25Financial penalty as alternative to prosecution: England only

(1) The local housing authority may impose a financial penalty on a person if
satisfied that the person’s conduct amounts to an offence under section 95
in respect of premises in England.

(2) Only one financial penalty under this section may be imposed on a
30person in respect of the same conduct.

(3) The amount of a financial penalty imposed under this section is to be
determined by the local housing authority, but must not be more
than £5,000.

(4) The local housing authority may not impose a financial penalty in
35respect of any conduct amounting to an offence under section 95 if—

(a) the person has been convicted of an offence under that
section in respect of the conduct, or

(b) criminal proceedings for the offence have been instituted
against the person in respect of the conduct and the
40proceedings have not been concluded.

(5) If a local housing authority has imposed a financial penalty on a
person in respect of any conduct amounting to an offence under
section 95 the person may not be convicted of an offence under that
section in respect of the conduct.

(6) 45Schedule 2A deals with—