Housing and Planning Bill (HL Bill 87)

Housing and Planning BillPage 140

Housing and Planning Act 2016 came fully into force and, before entering
into or adopting it,”.

24 In section 143A (demoted tenancies), in subsection (1), omit “periodic”.

25 In section 143E (notice of proceedings for possession), for subsection (3)
5substitute—

(3) The date specified under subsection (2)(c)—

(a) in a case where the demoted tenancy is a periodic tenancy, must
not be earlier than the date on which the tenancy could, apart
from this Chapter, be brought to an end by notice to quit given
10by the landlord on the same date as the proceedings, and

(b) in a case where the demoted tenancy is a fixed term tenancy,
must not be earlier than the end of the period of 6 weeks
beginning with the date on which the notice of proceedings is
served.”

26 (1) 15Section 143MA (demoted tenancies that are to become flexible tenancies) is
amended as follows.

(2) In subsection (1), for “section 107A of the Housing Act 1985” substitute
“section 115B of the Housing Act 1985 (certain tenancies granted etc before
the day on which paragraph 4 of Schedule 7 to the Housing and Planning
20Act 2016 came fully into force)”.

(3) After subsection (3) insert—

(3A) If the notice is given on or after the day on which paragraph 4 of
Schedule 7 to the Housing and Planning Act 2016 comes fully into
force, the period specified under subsection (3)(b) must be no more
25than five years.”

27 After section 143MA insert—

143MB Default flexible tenancies when no notice given under section
143MA

(1) This section applies where—

(a) 30a landlord has the power to serve a notice under section
143MA on the tenant under a demoted tenancy but fails to do
so, and

(b) the tenancy comes to an end on or after the day on which
paragraph 4 of Schedule 7 to the Housing and Planning Act
352016 comes fully into force.

(2) On ceasing to be a demoted tenancy, the tenancy becomes a secure
tenancy for a fixed term of 5 years that is a flexible tenancy.

(3) The terms of the new tenancy are the same as those of the tenancy
that it replaces, so far as those terms are compatible with—

(a) 40a tenancy for a fixed term of 5 years, and

(b) the statutory provisions relating to flexible tenancies (within
the meaning given by section 143MA(5).”

Housing and Planning BillPage 141

Land Registration Act 2002 (c. 9)

28 In section 132 of the Land Registration Act 2002 (interpretation), in the
definition of “flexible tenancy” in subsection (1), for “107A” substitute
“115B”.

5Localism Act 2011 (c. 20)

29 The Localism Act 2011 (flexible tenancies: other amendments) is amended as
follows.

30 In section 155, omit subsections (3) and (4).

31 In section 159 (further provisions about transfer of tenancy under section
10158), in subsection (6)(b), for “107A” substitute “115B”.

Savings for flexible tenancies with only 9 months left to run

32 (1) Despite the repeal of sections 107D and 107E of the Housing Act 1985
(flexible tenancies: recovery of possession) by paragraph 14 above, those
sections continue to apply in relation to a flexible tenancy the term of which
15ends within the period of 9 months beginning with the day on which
paragraph 4 of this Schedule comes fully into force.

(2) The amendments made by paragraphs 8 and 9 (which replace references to
proceedings for possession under section 107D of the Housing Act 1985) do
not apply in relation to such a tenancy.

Section 114

20SCHEDULE 8 Succession to secure tenancies and related tenancies

Housing Act 1985 (c. 68)

1 The Housing Act 1985 is amended as follows.

2 In section 86 (periodic tenancy arising on termination of fixed term), after
25subsection (1B) (inserted by Schedule 7 insert—

(1C) This section does not apply to a secure tenancy of a dwelling-house
in England if—

(a) the original secure tenant has died,

(b) the tenancy has been vested in, or otherwise disposed of to,
30the current tenant in the course of the administration of the
original tenant’s estate, and

(c) the current tenant qualified to succeed the original tenant
under section 86G(2) or (4).”

3 (1) Section 86A (persons qualified to succeed: England) as inserted by the
35Localism Act 2011—

(a) is renumbered section 86G (so that it follows on from section 86F as
inserted by Schedule 7 without making the numbering more
complex than it has to be), and

(b) is amended as follows.

Housing and Planning BillPage 142

(2) After subsection (7) insert—

(8) This section applies to a tenancy that was granted before 1 April
2012, or that arose by virtue of section 86 on the coming to the end of
a secure tenancy granted before 1 April 2012, as it applies to a secure
5tenancy granted on or after that day.”

4 In section 88 (cases where the tenant is a successor), in subsection (1), after
paragraph (b) insert—

(ba) the tenancy arose by virtue of section 89(2A) (fixed term
tenancy arising in certain cases following succession to
10periodic tenancy), or”.

5 (1) Section 89 (succession to period tenancy) is amended as follows.

(2) In subsection (1A), for “section 86A” substitute “section 86G”.

(3) After subsection (2) insert—

(2A) Where the tenancy vests in a person qualified to succeed the tenant
15under section 86G(2) or (4) and continues to be a secure tenancy—

(a) the periodic tenancy comes to an end immediately after
vesting, and

(b) a new tenancy of the same dwelling-house arises by virtue of
this subsection for a fixed term of 5 years.

(2B) 20The parties and terms of a tenancy arising by virtue of subsection
(2A) are the same as those of the tenancy that it replaces, except that
the terms—

(a) are confined to those which are compatible with a tenancy for
a fixed term of 5 years, and

(b) 25do not include any provision for re-entry or forfeiture.”

6 In section 117 (index of defined expressions), in the entry relating to persons
qualified to succeed, for “section 87” substitute “sections 86G and 87”.

Housing Act 1996 (c. 52)

7 Before section 131 (but after the italic heading) insert—

130A 30 Persons qualified to succeed to introductory tenancy: England

(1) A person is qualified to succeed the tenant under an introductory
tenancy of a dwelling-house in England if—

(a) the person occupies the dwelling-house as his or her only or
principal home at the time of the tenant’s death, and

(b) 35the person is the tenant’s spouse or civil partner.

(2) A person is qualified to succeed the tenant under an introductory
tenancy of a dwelling-house in England if—

(a) at the time of the tenant’s death the dwelling-house is not
occupied by a spouse or civil partner of the tenant as his or
40her only or principal home,

(b) an express term of the tenancy makes provision for a person
other than such a spouse or civil partner of the tenant to
succeed to the tenancy, and

(c) the person’s succession is in accordance with that term.

Housing and Planning BillPage 143

(3) Subsection (1) or (2) does not apply if the tenant was a successor as
defined in section 132.

(4) In such a case, a person is qualified to succeed the tenant if—

(a) an express term of the tenancy makes provision for a person
5to succeed a successor to the tenancy, and

(b) the person’s succession is in accordance with that term.

(5) For the purposes of this section a person who was living with the
tenant as the tenant’s wife or husband is to be treated as the tenant’s
spouse.

(6) 10Subsection (7) applies if, on the death of the tenant, there is by virtue
of subsection (5) more than one person who fulfils the condition in
subsection (1)(b).

(7) Such one of those persons as may be agreed between them or as may,
where there is no such agreement, be selected by the landlord is for
15the purpose of this section to be treated as the fulfilling that
condition.”

8 (1) Section 131 (persons qualified to succeed tenant) is amended as follows.

(2) At the end of the heading for “tenant” substitute “to introductory tenancy:
Wales”.

(3) 20After “introductory tenancy” insert “of a dwelling-house in Wales”.

9 (1) Section 133 (succession to introductory tenancy) is amended as follows.

(2) After subsection (1) insert—

(1A) Where there is a person qualified to succeed the tenant under section
130A, the tenancy vests by virtue of this section—

(a) 25in that person, or

(b) if there is more than one such person, in such one of them as
may be agreed between them or as may, where there is no
agreement, be selected by the landlord.”

(3) In subsection (2), after ““tenant” insert “under section 131”.

10 30Before section 143H (but after the italic heading) insert—

143GA Persons qualified to succeed to demoted tenancy: England

(1) A person is qualified to succeed the tenant under a demoted tenancy
of a dwelling-house in England if—

(a) the person occupies the dwelling-house as his or her only or
35principal home at the time of the tenant’s death, and

(b) the person is the tenant’s spouse or civil partner.

(2) A person is qualified to succeed the tenant under a demoted tenancy
of a dwelling-house in England if—

(a) at the time of the tenant’s death the dwelling-house is not
40occupied by a spouse or civil partner of the tenant as his or
her only or principal home,

(b) an express term of the tenancy makes provision for a person
other than such a spouse or civil partner of the tenant to
succeed to the tenancy, and

Housing and Planning BillPage 144

(c) the person’s succession is in accordance with that term.

(3) Subsection (1) or (2) does not apply if the tenant was a successor as
defined in section 132.

(4) In such a case, a person is qualified to succeed the tenant if—

(a) 5an express term of the tenancy makes provision for a person
to succeed a successor to the tenancy, and

(b) the person’s succession is in accordance with that term.

(5) For the purposes of this section a person who was living with the
tenant as the tenant’s wife or husband is to be treated as the tenant’s
10spouse.

(6) Subsection (7) applies if, on the death of the tenant, there is by virtue
of subsection (5) more than one person who fulfils the condition in
subsection (1)(b).

(7) Such one of those persons as may be agreed between them or as may,
15where there is no such agreement, be selected by the landlord is for
the purpose of this section to be treated as fulfilling that condition.

(8) This section applies to a tenancy that became a demoted tenancy
before or after Schedule 8 of the Housing Act 2015 comes into force.

143GB Succession to demoted tenancy: England

(1) 20This section applies if the tenant under a demoted tenancy of a
dwelling-house in England dies.

(2) Where there is a person qualified to succeed the tenant under section
143GA, the tenancy vests by virtue of this section—

(a) in that person, or

(b) 25if there is more than one such person, in such one of them as
may be agreed between them or as may, where there is no
agreement, be selected by the landlord.

(3) Where a periodic demoted tenancy vests in a person qualified to
succeed the tenant under section 143GA(2) or (4) and continues to be
30a demoted tenancy—

(a) the tenancy comes to an end immediately after vesting, and

(b) a new tenancy of the same dwelling-house arises by virtue of
this subsection for a fixed term of 5 years.

(4) The parties and terms of a tenancy arising by virtue of subsection (3)
35are the same as those of the tenancy that it replaces, except that the
terms—

(a) are confined to those which are compatible with a tenancy for
a fixed term of 5 years[, and

(b) do not include any provision for re-entry or forfeiture.]

(5) 40Where a demoted tenancy comes to an end and a new tenancy arises
by virtue of subsection (3), as from that time the demotion order is to
be treated for all purposes as it had been made in relation to the new
tenancy (and the demotion period remains the same).”

11 (1) Section 143H (succession to demoted tenancy) is amended as follows.

Housing and Planning BillPage 145

(2) At the heading insert “: Wales”.

(3) In subsection (1), after “tenancy” insert “of a dwelling-house in Wales”.

12 In section 143I (no successor tenant: termination), after “section” insert
“143GA or”.

13 (1) 5Section 143J of the Housing Act 1996 (demoted tenancies: successor tenants)
is amended as follows.

(2) After subsection (3) insert—

(3A) The tenancy arose by virtue of section 89(2A) of the Housing Act
1985.”

(3) 10For subsection (7) substitute—

(7) A person is the successor to a demoted tenancy if—

(a) the tenancy vests in the person by virtue of section 143GB(2)
or 143H(4) or (5), or

(b) the tenancy arose by virtue of section 143GB(3).”

15Localism Act 2011 (c. 20)

14 In section 160 of the Localism Act 2011 (succession to secure tenancies), omit
subsection (6).

Savings

15 The amendments made by this Schedule do not apply in relation to cases
20where the tenant under a secure tenancy dies before it comes into force.

16 The amendments made by paragraphs 7 and 8 do not apply in relation to an
introductory tenancy granted before the day on which this Schedule comes
into force.

17 The amendments made by paragraphs 10 to 13 do not apply in relation to
25cases where the tenant under a demoted tenancy dies before this Schedule
comes into force.

Section 117

SCHEDULE 9 Financial penalty as alternative to prosecution under Housing Act 2004

1 The Housing Act 2004 is amended as follows.

2 30In section 30 (offence of failing to comply with improvement notice), after
subsection (6) insert—

(7) See also section 249A (financial penalties as alternative to
prosecution for certain housing offences in England).

(8) If a local housing authority has imposed a financial penalty on a
35person under section 249A in respect of conduct amounting to an
offence under this section the person may not be convicted of an
offence under this section in respect of the conduct.”

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3 In section 72 (offences in relation to licensing of HMOs), after subsection (7)
insert—

(7A) See also section 249A (financial penalties as alternative to
prosecution for certain housing offences in England).

(7B) 5If a local housing authority has imposed a financial penalty on a
person under section 249A in respect of conduct amounting to an
offence under this section the person may not be convicted of an
offence under this section in respect of the conduct.”

4 In section 95 (offences in relation to licensing of houses under Part 3), after
10subsection (6) insert—

(6A) See also section 249A (financial penalties as alternative to
prosecution for certain housing offences in England).

(6B) If a local housing authority has imposed a financial penalty on a
person under section 249A in respect of conduct amounting to an
15offence under this section the person may not be convicted of an
offence under this section in respect of the conduct.”

5 In section 139 (overcrowding notices), after subsection (9) insert—

(10) See also section 249A (financial penalties as alternative to
prosecution for certain housing offences in England).

(11) 20If a local housing authority has imposed a financial penalty on a
person under section 249A in respect of conduct amounting to an
offence under this section the person may not be convicted of an
offence under this section in respect of the conduct.”

6 In section 234 (management regulations in respect of HMOs), after
25subsection (5) insert—

(6) See also section 249A (financial penalties as alternative to
prosecution for certain housing offences in England).

(7) If a local housing authority has imposed a financial penalty on a
person under section 249A in respect of conduct amounting to an
30offence under this section the person may not be convicted of an
offence under this section in respect of the conduct.”

7 After section 249 insert—

“Financial penalties as alternative to prosecution

249A Financial penalties for certain housing offences in England

(1) 35The local housing authority may impose a financial penalty on a
person if satisfied that the person’s conduct amounts to a relevant
housing offence in respect of premises in England.

(2) In this section “relevant housing offence” means an offence under—

(a) section 30 (failure to comply with improvement notice),

(b) 40section 72 (licensing of HMOs),

(c) section 95 (licensing of houses under Part 3),

(d) section 139(7) (failure to comply with overcrowding notice),
or

Housing and Planning BillPage 147

(e) section 234 (management regulations in respect of HMOs).

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

(4) The amount of a financial penalty imposed under this section is to be
5determined by the local housing authority, but must not be more
than £30,000.

(5) The local housing authority may not impose a financial penalty in
respect of any conduct amounting to a relevant housing offence if—

(a) the person has been convicted of the offence in respect of that
10conduct, or

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

(6) Schedule 13A deals with—

(a) 15the procedure for imposing financial penalties,

(b) appeals against financial penalties,

(c) enforcement of financial penalties, and

(d) guidance in respect of financial penalties.

(7) The Secretary of State may by regulations make provision about how
20local housing authorities are to deal with financial penalties
recovered.

(8) The Secretary of State may by regulations amend the amount
specified in subsection (4) to reflect changes in the value of money.

(9) For the purposes of this section a person’s conduct includes a failure
25to act.”

8 After Schedule 13 insert—

Section 249A

“Schedule 13A Financial penalties under section 249A

Notice of intent

1 Before imposing a financial penalty on a person under
30section 249A the local housing authority must give the person
notice of the authority’s 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 of the conduct to which the financial penalty
35relates.

(2) But if the person is continuing to engage in the conduct on that
day, and the conduct continues beyond the end of that day, the
notice of intent may be given—

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

(b) 40within the period of 6 months beginning with the last day
on which the conduct occurs.

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(3) For the purposes of this paragraph a person’s conduct includes a
failure to act.

3 The notice of intent must set out—

(a) the amount of the proposed financial penalty,

(b) 5the reasons for proposing to impose the financial penalty,
and

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

Right to make representations

4 (1) 10A 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) Any representations must be made within the period of 28 days
beginning with the day after that on which the notice was given
15(“the period for representations”).

Final notice

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

(a) decide whether to impose a financial penalty on the
20person, 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 give the person a notice (a “final notice”) imposing
25that 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) 30the amount of the financial penalty,

(b) the 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) 35the consequences of failure to comply with the notice.

Withdrawal 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
40notice.

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

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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) 5the amount of the penalty.

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

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

(4) 10The final notice may not be varied under sub-paragraph (3) so as
to make it impose a financial penalty of more than the local
housing authority could have imposed.

Recovery of financial penalty

11 (1) This paragraph applies if a person fails to pay the whole or any
15part 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 recover the penalty or part on the order of the county court as
if it were payable under an order of that court.

(3) 20In 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 which imposed the penalty, and

(b) 25states 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) 30In this paragraph “chief finance officer” has the same meaning as
in section 5 of the Local Government and Housing Act 1989.

Guidance

12 A local housing authority must have regard to any guidance given
by the Secretary of State about the exercise of its functions under
35this Schedule or section 249A.”