Housing and Planning Bill (HL Bill 87)

41 Notice of intended proceedings

(1) Before applying for a rent repayment order a local housing authority must give
the landlord a notice of intended proceedings.

(2) A notice of intended proceedings must—

(a) 5inform the landlord that the authority is proposing to apply for a rent
repayment order and explain why,

(b) state the amount that the authority seeks to recover, and

(c) invite the landlord to make representations within a period specified in
the notice of not less than 28 days (“the notice period”).

(3) 10The authority must consider any representations made during the notice
period.

(4) The authority must wait until the notice period has ended before applying for
a rent repayment order.

(5) A notice of intended proceedings may not be given after the end of the period
15of 12 months beginning with the day on which the landlord committed the
offence to which it relates.

Making of rent repayment order

42 Making of rent repayment order

(1) The First-tier Tribunal may make a rent repayment order if satisfied, beyond
20reasonable doubt, that a landlord has committed an offence to which this
Chapter applies (whether or not the landlord has been convicted).

(2) A rent repayment order under this section may be made only on an application
under section 40.

(3) The amount of a rent repayment order under this section is to be determined
25in accordance with—

(a) section 43 (where the application is made by a tenant);

(b) section 44 (where the application is made by a local housing authority);

(c) section 45 (in certain cases where the landlord has been convicted etc).

43 Amount of order: tenants

(1) 30Where the First-tier Tribunal decides to make a rent repayment order under
section 42 in favour of a tenant, the amount is to be determined in accordance
with this section.

(2) The amount must relate to rent paid during the period mentioned in the table.

(3) The amount that the landlord may be required to repay in respect of a period
must not exceed—

(a) the rent paid in respect of that period, less

(b) any relevant award of universal credit paid (to any person) in respect
10of rent under the tenancy during that period.

(4) In determining the amount the tribunal must, in particular, take into account—

(a) the conduct of the landlord and the tenant,

(b) the financial circumstances of the landlord, and

(c) whether the landlord has at any time been convicted of an offence to
15which this Chapter applies.

44 Amount of order: local housing authorities

(1) Where the First-tier Tribunal decides to make a rent repayment order under
section 42 in favour of a local housing authority, the amount is to be
determined in accordance with this section.

(2) 20The amount must relate to universal credit paid during the period mentioned
in the table.

(3) The amount that the landlord may be required to repay in respect of a period
30must not exceed the amount of universal credit that the landlord received
(directly or indirectly) in respect of rent under the tenancy for that period.

(4) In determining the amount the tribunal must, in particular, take into account—

(a) the conduct of the landlord,

(b) the financial circumstances of the landlord, and

(c) 35whether the landlord has at any time been convicted of an offence to
which this Chapter applies.

45 Amount of order following conviction

(1) Where the First-tier Tribunal decides to make a rent repayment order under
section 42 and both of the following conditions are met, the amount is to be the

maximum that the tribunal has power to order in accordance with section 43
or 44 (but disregarding subsection (4) of those sections).

(2) Condition 1 is that the order—

(a) is made against a landlord who has been convicted of the offence, or

(b) 5is made against a landlord who has received a financial penalty in
respect of the offence and is made at a time when there is no prospect
of appeal against that penalty.

(3)
Condition 2 is that the order is made—

(a) in favour of a tenant on the ground that the landlord has committed an
10offence mentioned in row 1, 2, 3, 4 or 7 of the table in section 39(4), or

(b) in favour of a local housing authority.

(4) For the purposes of subsection (2)(b) there is “no prospect of appeal”, in
relation to a penalty, when the period for appealing the penalty has expired
and any appeal has been finally determined or withdrawn.

(5) 15Nothing in this section requires the payment of any amount that, by reason of
exceptional circumstances, the tribunal considers it would be unreasonable to
require the landlord to pay.

Enforcement of rent repayment order

46 Enforcement of rent repayment orders

(1) 20An amount payable to a tenant or local housing authority under a rent
repayment order is recoverable as a debt.

(2) An amount payable to a local housing authority under a rent repayment order
does not, when recovered by the authority, constitute an amount of universal
credit recovered by the authority.

(3) 25The Secretary of State may by regulations make provision about how local
housing authorities are to deal with amounts recovered under rent repayment
orders.

Local housing authority functions

47 Duty to consider applying for rent repayment orders

30If a local housing authority becomes aware that a person has been convicted of
an offence to which this Chapter applies in relation to housing in its area, the
authority must consider applying for a rent repayment order.

48 Helping tenants apply for rent repayment orders

(1) A local housing authority in England may help a tenant to apply for a rent
35repayment order.

(2) A local housing authority may, for example, help the tenant to apply by
conducting proceedings or by giving advice to the tenant.

Amendments etc and interpretation

49 Rent repayment orders: consequential amendments

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

(2) In section 73 (other consequences of operating unlicensed HMOs: rent
5repayment orders)—

(a) in subsection (4), after “section 74” insert “(in the case of an HMO in
Wales) or in accordance with Chapter 4 of Part 2 of the Housing and
Planning Act 2016 (in the case of an HMO in England)”;

(b) in subsection (5)(a), after “HMO” insert “in Wales”.

(3) 10In section 96 (other consequences of operating unlicensed houses: rent
repayment orders)—

(a) in subsection (4), after “section 97” insert “(in the case of a house in
Wales) or in accordance with Chapter 4 of Part 2 of the Housing and
Planning Act 2016 (in the case of a house in England)”;

(b) 15in subsection (5)(a), after “house” insert “in Wales”.

50 Housing benefit: inclusion pending abolition

(1) In this Chapter a reference to universal credit or a relevant award of universal
credit includes housing benefit under Part 7 of the Social Security
Contributions and Benefits Act 1992.

(2) 20Where a local authority applies for a rent repayment order in relation to
housing benefit, a reference in this Chapter to “rent” includes any payment in
respect of which housing benefit may be paid.

51 Interpretation of Chapter

(1) In this Chapter—

• 25“offence to which this Chapter applies” has the meaning given by section
  39;

• “relevant award of universal credit” means an award of universal credit
  the calculation of which included an amount under section 11 of the
  Welfare Reform Act 2012;

• 30“rent” includes any payment in respect of which an amount under section
  11 of the Welfare Reform Act 2012 may be included in the calculation of
  an award of universal credit;

• “rent repayment order” has the meaning given by section 39.

(2) For the purposes of this Chapter an amount that a tenant does not pay as rent
35but which is offset against rent is to be treated as having been paid as rent.

CHAPTER 5 Interpretation of Part 2

52 Meaning of “letting agent” and related expressions

(1) In this Part “letting agent” means a person who engages in letting agency work
40(whether or not that person engages in other work).

(2) But a person is not a letting agent for the purposes of this Part if the person
engages in letting agency work in the course of that person’s employment
under a contract of employment.

(3) In this Part “letting agency work” means things done by a person in the course
5of a business in response to instructions received from—

(a) a person (“a prospective landlord”) seeking to find another person to
whom to let housing, or

(b) a person (“a prospective tenant”) seeking to find housing to rent.

(4)
But “letting agency work” does not include any of the following things when
10done by a person who does nothing else within subsection (3)—

(a) publishing advertisements or disseminating information;

(b) providing a means by which a prospective landlord or a prospective
tenant can, in response to an advertisement or dissemination of
information, make direct contact with a prospective tenant or a
15prospective landlord;

(c) providing a means by which a prospective landlord and a prospective
tenant can communicate directly with each other.

(5) In this Part “English letting agency work” means letting agency work that
relates to housing in England.

53 20Meaning of “property manager” and related expressions

(1) In this Part “property manager” means a person who engages in English
property management work.

(2) In this Part “English property management work” means things done by a
person in the course of a business in response to instructions received from
25another person (“the client”) where—

(a) the client wishes the person to arrange services, repairs, maintenance,
improvements or insurance in respect of, or to deal with any other
aspect of the management of, premises on the client’s behalf, and

(b) the premises consist of housing in England let under a tenancy.

54 30General interpretation of Part

In this Part—

• “banning order” has the meaning given by section 13;

• “banning order offence” has the meaning given by section 13;

• “database” means the database of rogue landlords and letting agents
  35established under section 27;

• “English letting agency work” has the meaning given by section 52;

• “English property management work” has the meaning given by section
  53;

• “financial penalty” means a penalty that—

  (a)

  40is imposed in respect of conduct that amounts to an offence, but

  (b)

  is imposed otherwise than following the person’s conviction for
  the offence;

• “housing” means a building, or part of a building, occupied or intended
  to be occupied as a dwelling or as more than one dwelling;

• 45“letting”—

  Housing and Planning BillPage 25

  (a)

  includes the grant of a licence, but

  (b)

  except in Chapter 4, does not include the grant of a tenancy or
  licence for a term of more than 21 years,

  and “let” is to be read accordingly;

• 5“letting agency work” has the meaning given by section 52;

• “letting agent” has the meaning given by section 52;

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

• “officer”, in relation to a body corporate, means—

  (a)

  10any director, secretary or other similar officer of the body
  corporate, or

  (b)

  any person who was purporting to act in any such capacity;

• “property agent” means a letting agent or property manager;

• “property manager” has the meaning given by section 53;

• 15“residential landlord” means a landlord of housing;

• “tenancy”—

  (a)

  includes a licence, but

  (b)

  except in Chapter 4, does not include a tenancy or licence for a
  term of more than 21 years.

20Part 3 Recovering abandoned premises in England

55 Recovering abandoned premises

A private landlord may give a tenant a notice bringing an assured shorthold
tenancy to an end on the day on which the notice is given if—

(a) 25the tenancy relates to premises in England,

(b) the unpaid rent condition is met (see section 56),

(c) the landlord has given the warning notices required by section 57, and

(d) neither the tenant nor a named occupier has responded in writing to
any of those notices before the date specified in the warning notices.

56 30The unpaid rent condition

(1) The unpaid rent condition is met if—

(a) rent is payable weekly or fortnightly and at least eight consecutive
weeks’ rent is unpaid,

(b) rent is payable monthly and at least two consecutive months’ rent is
35unpaid,

(c) rent is payable quarterly and at least one quarter’s rent is more than
three months in arrears, or

(d) rent is payable yearly and at least three months’ rent is more than three
months in arrears.

(2) 40If the unpaid rent condition has been met and a new payment of rent is made
before the notice under section 55 is given, the unpaid rent condition ceases to
be met (irrespective of the period to which the new payment of rent relates).

(3) In this section “rent” means rent lawfully due from the tenant.

57 Warning notices

(1) Before bringing a tenancy to an end under section 55 the landlord must give
three warning notices, at different times, in accordance with this section.

(2) The first two warning notices must be given to the tenant and any named
5occupier using one of the methods in section 59(1) or (2).

(3) The third warning notice must be given by fixing it to some conspicuous part
of the premises to which the tenancy relates.

(4) Each warning notice must explain—

(a) that the landlord believes the premises to have been abandoned,

(b) 10that the tenant or a named occupier must respond in writing before a
specified date if the premises have not been abandoned, and

(c) that the landlord proposes to bring the tenancy to an end if neither the
tenant nor a named occupier responds in writing before that date.

(5) The date specified under subsection (4)(b) must be after the end of the period
15of 8 weeks beginning with the day on which the first warning notice is given to
the tenant.

(6) The first warning notice may be given even if the unpaid rent condition is not
yet met.

(7) The second warning notice may be given only once the unpaid rent condition
20has been met.

(8) The second warning notice must be given at least two weeks, and no more than
4 weeks, after the first warning notice.

(9) The third warning notice must be given before the period of 5 days ending with
the date specified in the warning notices under subsection (4)(b).

(10) 25The Secretary of State may make regulations setting out the form that the third
warning notice must take.

(11) In this Part “named occupier” means a person named in the tenancy as a person
who may live at the premises to which the tenancy relates.

58 Reinstatement

(1) 30Where a tenancy is brought to an end by a notice under section 55 the tenant
may apply to the county court for an order reinstating the tenancy if the tenant
has a good reason for having failed to respond to the warning notices.

(2) If the county court finds that the tenant had a good reason for failing to respond
to the warning notices it may make any order it thinks fit for the purpose of
35reinstating the tenancy.

(3) An application under this section may not be made after the end of the period
of 6 months beginning with the day on which the notice under section 55 is
given.

59 Methods for giving notices under sections 55 and 57

(1) 40This section sets out the methods for giving—

(a) a notice under section 55;

(b) the first or second warning notice under section 57.

(2) The notice may given by delivering it to the tenant or named occupier in
person.

(3) If the notice is not delivered to the tenant or named occupier in person it must
5be given by—

(a) leaving it at, or sending it to, the premises to which the tenancy relates,

(b) leaving it at, or sending it to, every other postal address in the United
Kingdom that the tenant or named occupier has given the landlord as
a contact address for giving notices,

(c) 10sending it to every email address that the tenant or named occupier has
given the landlord as a contact address for giving notices, and

(d) in the case of a tenant, leaving it at or sending it to every postal address
in the United Kingdom of every guarantor, marked for the attention of
the tenant.

(4) 15In subsection (2) “guarantor”, in relation to a tenant, means a person who has
agreed with the landlord to guarantee the performance by the tenant of any of
the tenant’s obligations under the tenancy.

60 Interpretation of Part

In this Part—

• 20“assured shorthold tenancy” has the same meaning as in Part 1 of the
  Housing Act 1988;

• “named occupier” has the meaning given by section 57;

• “private landlord” means a landlord who is not within section 80(1) of the
  Housing Act 1985 (the landlord condition for secure tenancies);

• 25“warning notice” means a notice under section 57.

61 Consequential amendment to Housing Act 1988

In section 5 of the Housing Act 1988 (security of tenure), in subsection (1)—

(a) omit “or” at end of paragraph (b);

(b) at the end of paragraph (c) insert “, or

(d) 30in the case of an assured shorthold tenancy, serving a
notice in accordance with section 55 of the Housing and
Planning Act 2016,”.

Part 4 Social housing in England

CHAPTER 1 Implementing the right to buy on a voluntary basis

5Funding of discounts offered to tenants

62 Grants by Secretary of State

(1) The Secretary of State may make grants to private registered providers in
respect of right to buy discounts.

(2) A grant under this section may be made on any terms and conditions the
10Secretary of State considers appropriate.

(3) See also section 47 of the Housing and Regeneration Act 2008 (which would
allow the Secretary of State to direct the Homes and Communities Agency to
use its powers to make grants of the kind mentioned above).

63 Grants by Greater London Authority

(1) 15The Greater London Authority may make grants to private registered
providers in respect of right to buy discounts for dwellings in London.

(2) A grant under this section may be made on any terms and conditions the
Greater London Authority considers appropriate.

Monitoring compliance

64 20Monitoring

(1) The Regulator of Social Housing must, if requested to do so by the Secretary of
State, monitor compliance with the home ownership criteria.

(2) “The home ownership criteria” means criteria, specified in the request, that
relate to the sale of dwellings by private registered providers to tenants
25otherwise than in exercise of a right conferred by an Act.

(3) The criteria may be expressed by reference to other documents.

(4) On making a request under subsection (1) the Secretary of State must publish
the home ownership criteria specified in the request.

(5) The Regulator must provide such reports or other information as the Secretary
30of State may request about compliance with the home ownership criteria.

(6) The Secretary of State may publish information about a private registered
provider that has not met the home ownership criteria.

Amendments to other legislation

65 Consequential changes to HCA’s duty to give grants

(1) Section 35 of the Housing and Regeneration Act 2008 (duty to give financial
assistance in respect of certain disposals) is amended as follows.

(2) 5For subsection (1) substitute—

“(1) The HCA must exercise its powers under section 19 to give financial
assistance by way of grant to a relevant provider of social housing in
respect of any discount given by the provider by virtue of a person
exercising the right to acquire conferred by section 180.”

(3) 10Omit subsection (2).

(4) In subsection (3), for “(1)(b)” substitute (1).

(5) In subsection (5), omit paragraph (b).

Interpretation

66 Interpretation of Chapter

15In this Chapter—

• “dwelling” has the meaning given by section 275 of the Housing and
  Regeneration Act 2008;

• “private registered provider” means a private registered provider of
  social housing;

• 20“right to buy discount” means a discount given to a tenant of a dwelling
  on the disposal of the dwelling to the tenant otherwise than in the
  exercise of a right conferred by an Act.

CHAPTER 2 Vacant high value local authority housing

25Payments to Secretary of State by Local Housing Authorities

67 Payments to Secretary of State

(1) The Secretary of State may make a determination requiring a local housing
authority in England to make a payment to the Secretary of State in respect of
a financial year.

(2) 30The amount of the payment must represent an estimate of —

(a) the market value of the authority’s interest in any high value housing
that is likely to become vacant during the year, less

(b) any costs or other deductions of a kind described in the determination.

(3) For the housing to be taken into account, see section 68.

(4) 35A determination may only be made in respect of a local housing authority that
keeps a Housing Revenue Account.