Housing and Planning Bill (HL Bill 87)

substituted—

“(a) to the Secretary of State and the Regulator of Social
Housing, and

(b) if directed to do so by either the Secretary of State
5or the Regulator of Social Housing, to the registrar
of companies.”,”

(b) sub-paragraph (2) were omitted, and

(c) in sub-paragraphs (3) to (6), for “(1)”, in each place, there were
substituted “(1)(b)”.

18 10Paragraph 87(2) (resignation of administrator) is to have effect as if for
paragraphs (a) to (d) there were substituted “by notice in writing to the
court”.

19 Paragraph 89(2) (administrator ceasing to be qualified) is to have effect as if
for paragraphs (a) to (d) there were substituted “to the court”.

20 15Paragraph 90 (filling vacancy in office of administrator) is to have effect as if
for “Paragraphs 91 to 95 apply” there were substituted “Paragraph 91
applies”.

21 Paragraph 91 (vacancies in court appointments) is to have effect as if—

(a) for sub-paragraph (1) there were substituted—

“(1) 20The court may replace the housing administrator on an
application made—

(a) by the Secretary of State,

(b) with the consent of the Secretary of State, by the
Regulator of Social Housing, or

(c) 25where more than one person was appointed to act
jointly as the housing administrator, by any of
those persons who remains in office.”

(b) sub-paragraph (2) were omitted.

22 Paragraph 98 (discharge from liability on vacation of office) is to have effect
30as if sub-paragraphs (2)(b) and (ba), (3) and (3A) were omitted.

23 Paragraph 99 (charges and liabilities upon vacation of office by
administrator) is to have effect as if—

(a) in sub-paragraph (4), for the words from the beginning to
“cessation”, in the first place, there were substituted “A sum falling
35within sub-paragraph (4A)”,

(b) after that sub-paragraph there were inserted—

“(4A) A sum falls within this sub-paragraph if it is—

(a) a sum payable in respect of a debt or other liability
arising out of a contract that was entered into
40before cessation by the former housing
administrator or a predecessor,

(b) a sum that must be repaid by the company in
respect of a grant that was made under section 103
of the Housing and Planning Act 2016 before
45cessation,

(c) a sum that must be repaid by the company in
respect of a loan made under that section before

cessation or that must be paid by the company in
respect of interest payable on such a loan,

(d) a sum payable by the company under section 105 of
that Act in respect of an agreement to indemnify
5made before cessation, or

(e) a sum payable by the company under section 107 of
that Act in respect of a guarantee given before
cessation.”, and”

(c) in sub-paragraph (5), for “(4)” there were substituted “(4A)(a)”.

24 10Paragraph 100 (joint and concurrent administrators) is to have effect as if
sub-paragraph (2) were omitted.

25 Paragraph 101(3) (joint administrators) is to have effect as if after “87 to”
there were inserted “91, 98 and”.

26 Paragraph 103 (appointment of additional administrators) is to have effect
15as if—

(a) in sub-paragraph (2) the words from the beginning to “order” were
omitted and for paragraph (a) there were substituted—

“(a) the Secretary of State,

(aa) the Regulator of Social Housing, or”,”

(b) 20after that sub-paragraph there were inserted—

“(2A) The consent of the Secretary of State is required for an
application by the Regulator of Social Housing for the
purposes of sub-paragraph (2).”, and”

(c) sub-paragraphs (3) to (5) were omitted.

27 25Paragraph 106(2) (penalties) is to have effect as if paragraphs (a), (b), (f), (g),
(i) and (l) to (n) were omitted.

28 Paragraph 109 (references to extended periods) is to have effect as if “or 108”
were omitted.

29 Paragraph 111 (interpretation) is to have effect as if—

(a) 30 in sub-paragraph (1), the definitions of “correspondence”, “holder of
a qualifying floating charge”, “the purpose of administration” and
“unable to pay its debts” were omitted,

(b) in that sub-paragraph, at the appropriate places were inserted—

• “““company” and “court” have the same meaning as in
  35Chapter 5 of Part 4 of the Housing and Planning
  Act 2016,”,

• ““housing administration application” means an
  application to the court for a housing
  administration order under Chapter 5 of Part 4 of
  40the Housing and Planning Act 2016;”,

• ““housing administration order” has the same
  meaning as in Chapter 5 of Part 4 of the Housing
  and Planning Act 2016;”,

• ““objective”, in relation to a housing administration,
  45is to be read in accordance with section 93 of the
  Housing and Planning Act 2016,”, and

• ““prescribed” means prescribed by housing
  administration rules within the meaning of

  Housing and Planning BillPage 122

  Chapter 5 of Part 4 of the Housing and Planning
  Act 2016.”,”

(c) sub-paragraphs (1A) and (1B) were omitted, and

(d) after sub-paragraph (3) there were inserted—

“(4) 5For the purposes of this Schedule a reference to a housing
administration order includes a reference to an
appointment under paragraph 91 or 103.”

Part 2 Further modifications of Schedule B1 to Insolvency Act 1986: foreign
10companies

Introductory

30 (1) This Part of this Schedule applies in the case of a housing administration
order applying to a foreign company.

(2) The provisions of Schedule B1 to the Insolvency Act 1986 mentioned in
15paragraph 1 above (as modified by Part 1 of this Schedule) have effect in
relation to the company with the further modifications set out in this Part of
this Schedule.

(3) The Secretary of State may by regulations amend this Part of this Schedule
so as to add more modifications.

31 20In paragraphs 32 to 37—

(a) the provisions of Schedule B1 to the Insolvency Act 1986 that are
mentioned in paragraph 1 above are referred to as the applicable
provisions, and

(b) references to those provisions, or to provisions comprised in them,
25are references to those provisions as modified by Part 1 of this
Schedule.

Modifications

32 In the case of a foreign company—

(a) paragraphs 42(2), 83 and 84 of Schedule B1 to the Insolvency Act 1986
30do not apply,

(b) paragraphs 46(4), 49(4)(a), 54(2)(a), 71(5) and (6), 72(4) and (5) and 86
of that Schedule apply only if the company is subject to a
requirement imposed by regulations under section 1043 or 1046 of
the Companies Act 2006 (unregistered UK companies or overseas
35companies), and

(c) paragraph 61 of that Schedule does not apply.

33 (1) The applicable provisions and Schedule 1 to the Insolvency Act 1986 (as
applied by paragraph 60(1) of Schedule B1 to that Act) are to be read by
reference to the limitation imposed on the scope of the housing
40administration order in question as a result of section 92(4) above.

(2) Sub-paragraph (1) has effect, in particular, so that—

(a) a power conferred, or duty imposed, on the housing administrator
by or under the applicable provisions or Schedule 1 to the Insolvency

Act 1986 is to be read as being conferred or imposed in relation to the
company’s UK affairs, business and property,

(b) references to the company’s affairs, business or property are to be
read as references to its UK affairs, business and property,

(c) 5references to goods in the company’s possession are to be read as
references to goods in its possession in the United Kingdom,

(d) references to premises let to the company are to be read as references
to premises let to it in the United Kingdom, and

(e) references to legal process instituted or continued against the
10company or its property are to be read as references to such legal
process relating to its UK affairs, business and property.

34 Paragraph 41 of Schedule B1 to the Insolvency Act 1986 (dismissal of
receivers) is to have effect as if—

(a) for sub-paragraph (1) there were substituted—

“(1) 15Where a housing administration order takes effect in
respect of a company—

(a) a person appointed to perform functions
equivalent to those of an administrative receiver,
and

(b) 20if the housing administrator so requires, a person
appointed to perform functions equivalent to those
of a receiver,

must refrain, during the period specified in sub-paragraph
(1A), from performing those functions in the United
25Kingdom or in relation to any of the company’s property
in the United Kingdom.

(1A) That period is—

(a) in the case of a person mentioned in sub-
paragraph (1)(a), the period while the company is
30in housing administration, and

(b) in the case of a person mentioned in sub-paragraph
(1)(b), during so much of that period as is after the
date on which the person is required by the
housing administrator to refrain from performing
35functions.”, and”

(b) sub-paragraphs (2) to (4) were omitted.

35 Paragraph 43(6A) of Schedule B1 to the Insolvency Act 1986 (moratorium on
appointment to receiverships) is to have effect as if for “An administrative
receiver” there were substituted “A person with functions equivalent to
40those of an administrative receiver”.

36 Paragraph 44(7) of Schedule B1 to the Insolvency Act 1986 (proceedings to
which interim moratorium does not apply) is to have effect as if for
paragraph (d) there were substituted—

“(d) the carrying out of functions by a person who (whenever
45appointed) has functions equivalent to those of an
administrative receiver of the company.”

37 Paragraph 64 of Schedule B1 to the Insolvency Act 1986 (general powers of
administrator) is to have effect as if—

(a) in sub-paragraph (1), after “power” there were inserted “in relation
to the affairs or business of the company so far as carried on in the
United Kingdom or to its property in the United Kingdom”, and

(b) in sub-paragraph (2)(b), after “instrument” there were inserted “or
5by the law of the place where the company is incorporated”.

Part 3 Other modifications

General modifications

38 (1) References within sub-paragraph (2) which are contained—

(a) 10in the Insolvency Act 1986 (other than Schedule B1 to that Act), or

(b) in other legislation passed or made before this Act,

include references to whatever corresponds to them for the purposes of this
paragraph.

(2) The references are those (however expressed) which are or include
15references to—

(a) an administrator appointed by an administration order,

(b) an administration order,

(c) an application for an administration order,

(d) a company in administration,

(e) 20entering into administration, and

(f) Schedule B1 to the Insolvency Act 1986 or a provision of that
Schedule.

(3) For the purposes of this paragraph—

(a) a housing administrator of a company corresponds to an
25administrator appointed by an administration order,

(b) a housing administration order in relation to a company corresponds
to an administration order,

(c) an application for a housing administration order in relation to a
company corresponds to an application for an administration order,

(d) 30a company in housing administration corresponds to a company in
administration,

(e) entering into housing administration in relation to a company
corresponds to entering into administration, and

(f) what corresponds to Schedule B1 to the Insolvency Act 1986 or a
35provision of that Schedule is that Schedule or that provision as
applied by Part 1 of this Schedule.

39 (1) Paragraph 38, in its application to section 1(3) of the Insolvency Act 1986,
does not entitle the housing administrator of an unregistered company to
make a proposal under Part 1 of the Insolvency Act 1986 (company
40voluntary arrangements).

(2) Paragraph 38 does not confer any right under section 7(4) of the Insolvency
Act 1986 (implementation of voluntary arrangements) for a supervisor of
voluntary arrangements to apply for a housing administration order in
relation to a company that is a private registered provider.

(3) Paragraph 38 does not apply to section 359 of the Financial Services and
Markets Act 2000 (administration order).

Modifications of the Insolvency Act 1986

40 The following provisions of the Insolvency Act 1986 are to have effect in the
5case of any housing administration with the following modifications.

41 Section 5 (effect of approval of voluntary arrangements) is to have effect as
if after subsection (4) there were inserted—

“(4A) Where the company is in housing administration, the court must not
make an order or give a direction under subsection (3) unless—

(a) 10the court has given the Secretary of State or the Regulator of
Social Housing a reasonable opportunity of making
representations to it about the proposed order or direction,
and

(b) the order or direction is consistent with the objective of the
15housing administration.

(4B) In subsection (4A) “in housing administration” and “objective of the
housing administration” are to be read in accordance with Schedule
B1 to this Act, as applied by Part 1 of Schedule 5 to the Housing and
Planning Act 2016.”

42 20Section 6 (challenge of decisions in relation to voluntary arrangements) is to
have effect as if—

(a) in subsection (2), for “this section” there were substituted
“subsection (1)”,

(b) after that subsection there were inserted—

“(2AA) 25Subject to this section, where a voluntary arrangement in
relation to a company in housing administration is approved
at the meetings summoned under section 3, an application to
the court may be made—

(a) by the Secretary of State, or

(b) 30with the consent of the Secretary of State, by the
Regulator of Social Housing,

on the ground that the voluntary arrangement is not
consistent with the achievement of the objective of the
housing administration.”,”

(c) 35in subsection (4), after “subsection (1)” there were inserted “or, in the
case of an application under subsection (2AA), as to the ground
mentioned in that subsection”, and

(d) after subsection (7) there were inserted—

“(7A) In this section “in housing administration” and “objective of
40the housing administration” are to be read in accordance
with Schedule B1 to this Act, as applied by Part 1 of Schedule
5 to the Housing and Planning Act 2016.”

43 In section 129(1A) (commencement of winding up), the reference to
paragraph 13(1)(e) of Schedule B1 is to include section 95(1)(e) of this Act.

Power to make further modifications

44 (1) The Secretary of State may by regulations amend this Part of this Schedule
so as to add further modifications.

(2) The further modifications that may be made are confined to such
5modifications of—

(a) the Insolvency Act 1986, or

(b) other legislation passed or made before this Act that relate to
insolvency or make provision by reference to anything that is or may
be done under the Insolvency Act 1986,

10as the Secretary of State considers appropriate in relation to any provision
made by or under this Chapter.

Interpretation of Part 3 of Schedule

45 In this Part of this Schedule—

• “administration order”, “administrator”, “enters administration” and
  15“in administration” are to be read in accordance with Schedule B1 to
  the Insolvency Act 1986 (disregarding Part 1 of this Schedule), and

• “enters housing administration” and “in housing administration” are to
  be read in accordance with Schedule B1 to the Insolvency Act 1986
  (as applied by Part 1 of this Schedule).

Section 110

20SCHEDULE 6 Amendments to housing moratorium and consequential amendments

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

2 Omit section 144 (insolvency: preparatory steps notice).

3 For section 145 substitute—

“145 25Moratorium

A moratorium on the disposal of land by a private registered
provider begins if a notice is given to the regulator under any of the
following provisions of the Housing and Planning Act 2016—

(a) section 98(2)(a) (notice of winding up petition);

(b) 30section 99(4)(a) (notice of application for permission to pass a
resolution for voluntary winding up);

(c) section 100(3)(a) (notice of ordinary administration
application);

(d) section 101(4)(a) (notice of appointment of ordinary
35administrator);

(e) section 102(2)(a) (notice of intention to enforce security).”

4 (1) Section 146 (duration of moratorium) is amended as follows.

(2) For subsections (1) and (2) substitute—

“(1) The moratorium begins when the notice mentioned in section 145 is
40given.

(2) The moratorium ends when one of the following occurs—

(a) the expiry of the relevant period,

(b) the making of a housing administration order under Chapter
5 of Part 4 of the Housing and Planning Act 2016 in relation
5to the registered provider, or

(c) the cancellation of the moratorium (see subsection (5)).

(2A) The “relevant period” is—

(a) the period of 28 days beginning with the day on which the
notice mentioned in section 145 is given, plus

(b) 10any period by which that period is extended under
subsection (3).”

(3) Omit subsection (6).

(4) For subsection (9) substitute—

“(9) If a notice mentioned in section 145 is given during a moratorium,
15that does not—

(a) start a new moratorium, or

(b) alter the existing moratorium’s duration.”

5 (1) Section 147 (further moratorium) is amended as follows.

(2) In subsection (1)(b), for “step specified in section 145 is taken” substitute
20“notice mentioned in section 145 is given”.

(3) In subsection (2), for “step” substitute “notice”.

6 In section 154 (proposals: effect), in subsection (2), after paragraph (a)
insert—

“(aa) in the case of a charitable incorporated organisation, its
25charity trustees (as defined by section 177 of the Charities Act
2011),”.

7 Omit section 162 (consent to company winding up).

8 Omit section 164 (consent to registered society winding up).

9 In section 275 (general interpretation), omit the definition of “working day”.

10 30In section 276 (index of defined terms), omit the entry relating to “working
day”.

Section 113

SCHEDULE 7 Secure tenancies etc: phasing out of tenancies for life

Law of Property Act 1925 (c. 20)

1 (1) 35Section 52 of the Law of Property Act 1925 (conveyances to be by deed,
unless excepted by subsection (2) of that section) is amended as follows.

(2) In subsection (2), after paragraph (db) insert—

“(dc) secure tenancies of dwellings in England granted on or after
the day on which paragraph 4 of Schedule 7 to the Housing

and Planning Act 2016 comes fully into force, other than old-
style secure tenancies;”.

(3) In subsection (3)—

(a) in the definition of “flexible tenancy”, for “107A” substitute “115B”;

(b) 5at the appropriate place insert—

• “““secure tenancy” has the meaning given by section 79
  of the Housing Act 1985 and “old style-secure
  tenancy” has the meaning given by section 115C of
  that Act;”.

10Housing Act 1985 (c. 68)

2 The Housing Act 1985 is amended as follows.

3 For the italic heading before section 79 substitute—

“Secure Tenancies"

4 After section 81 insert—

“15“Grant of new secure tenancies in England

81A New English secure tenancies to be between 2 and 5 years in general

(1) A person may grant a secure tenancy of a dwelling-house in England
only if it is a tenancy for a fixed term that is—

(a) at least 2 years, and

(b) 20no more than 5 years.

(2) If a person purports to grant a secure tenancy in breach of
subsection (1), it takes effect as a tenancy for a fixed term of 5 years.

(3) This section does not apply to the grant of an old-style secure
tenancy (as to which, see section 81B).

81B 25Cases where old-style English secure tenancies may be granted

(1) A person may grant an old style-secure tenancy of a dwelling-house
in England only—

(a) in circumstances specified in regulations made by the
Secretary of State, or

(b) 30in accordance with subsection (2).

(2) A local housing authority that grants a secure tenancy of a dwelling-
house in England must grant an old-style secure tenancy if—

(a) the tenancy is offered as a replacement for an old-style secure
tenancy of some other dwelling-house, and

(b) 35the tenant has not made an application to move.

(3) Other provisions of this Part set out the consequences of a tenancy
being an old-style secure tenancy.

(4) Regulations under subsection (1) may include transitional or saving
provision.

(5) Regulations under subsection (1) are to be made by statutory
instrument.

(6) A statutory instrument containing regulations under subsection (1)
may not be made unless a draft of the instrument has been laid
5before and approved by a resolution of each House of Parliament.

81C Duty to offer new secure tenancy in limited circumstances

(1) This section applies where a change in circumstances means that a
tenancy that is not a secure tenancy would become a secure tenancy
but for the exception in paragraph 1ZA of Schedule 1.

(2) 10The landlord must, within the period of 28 days, make the tenant a
written offer of a secure tenancy in return for the tenant surrendering
the original tenancy.

(3) If the tenant accepts in writing within the period of 28 days
beginning with the day on which the tenant receives the offer, the
15landlord must grant the secure tenancy on the tenant surrendering
the original tenancy.

81D Review of decisions about length of secure tenancies in England

(1) A person who is offered a secure tenancy of a dwelling-house in
England (under section 81C or otherwise) may request a review
20under this section, unless the tenancy on offer is an old-style secure
tenancy.

(2) The sole purpose of a review under this section is to consider
whether the length of the tenancy is in accordance with any policy
that the prospective landlord has about the length of secure tenancies
25it grants.

(3) The request must be made before the end of—

(a) the period of 21 days beginning with the day on which the
person making the request first receives the offer, or

(b) such longer period as the prospective landlord may allow in
30writing.

(4) On receiving the request the prospective landlord must carry out the
review.

(5) On completing the review the prospective landlord must —

(a) notify the tenant in writing of the outcome,

(b) 35revise its offer or confirm its original decision about the
length of the tenancy, and

(c) if it decides to confirm its original decision, give reasons.

(6) The Secretary of State may by regulations make provision about the
procedure to be followed in connection with a review under this
40section.

(7) The regulations may, in particular—

(a) require the review to be carried out by a person of
appropriate seniority who was not involved in the original
decision;