Housing and Planning Bill (HL Bill 110)

Housing and Planning BillPage 120

satisfied, in relation to the matters that are the subject of
the application, that the housing administrator—

(a) is acting,

(b) has acted, or

(c) 5is proposing to act,

in a way that is inconsistent with the achievement of the
objective of the housing administration as quickly and as
efficiently as is reasonably practicable.

(9) Before the making of an order of the kind mentioned in
10sub-paragraph (4)(d)—

(a) the court must notify the housing administrator of
the proposed order and of a period during which
the housing administrator is to have the
opportunity of taking steps falling within sub-
15paragraphs (10) to (12), and

(b) the period notified must have expired without the
taking of such of those steps as the court thinks
should have been taken,

and that period must be a reasonable period.

(10) 20In the case of a claim under sub-paragraph (1)(a), the steps
referred to in sub-paragraph (9) are—

(a) ceasing to act in a manner that unfairly harms the
interests to which the claim relates,

(b) remedying any harm unfairly caused to those
25interests, and

(c) steps for ensuring that there is no repetition of
conduct unfairly causing harm to those interests.

(11) In the case of a claim under sub-paragraph (1)(b), the steps
referred to in sub-paragraph (9) are steps for ensuring that
30the interests to which the claim relates are not unfairly
harmed.

(12) In the case of a claim under sub-paragraph (2), the steps
referred to in sub-paragraph (9) are—

(a) ceasing to act in a manner preventing the
35achievement of the objective of the housing
administration as quickly and as efficiently as is
reasonably practicable,

(b) remedying the consequences of the housing
administrator having acted in such a manner, and

(c) 40steps for ensuring that there is no repetition of
conduct preventing the achievement of the
objective of the housing administration as quickly
and as efficiently as is reasonably practicable.”

14 Paragraph 75(2) (misfeasance) is to have effect as if after paragraph (b) there
45were inserted—

(ba) a person appointed as an administrator of the company
under the provisions of this Act, as they have effect in relation
to administrators other than housing administrators,”.

15 Paragraph 79 (end of administration) is to have effect as if—

Housing and Planning BillPage 121

(a) for sub-paragraphs (1) and (2) there were substituted—

(1) On an application made by a person mentioned in sub-
paragraph (2), the court may provide for the appointment
of a housing administrator of a company to cease to have
5effect from a specified time.

(2) An application may be made to the court under this
paragraph—

(a) by the Secretary of State,

(b) with the consent of the Secretary of State, by the
10Regulator of Social Housing, or

(c) with the consent of the Secretary of State, by the
housing administrator.”, and

(b) sub-paragraph (3) were omitted.

16 Paragraph 83(3) (notice to registrar when moving to voluntary liquidation)
15is to have effect as if after “may” there were inserted “, with the consent of
the Secretary of State or of the Regulator of Social Housing,”.

17 Paragraph 84 (notice to registrar when moving to dissolution) is to have
effect as if—

(a) in sub-paragraph (1), for “to the registrar of companies” there were
20substituted—

(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
or the Regulator of Social Housing, to the registrar
25of 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 Paragraph 87(2) (resignation of administrator) is to have effect as if for
30paragraphs (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 Paragraph 90 (filling vacancy in office of administrator) is to have effect as if
35for “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) The court may replace the housing administrator on an
40application made—

(a) by the Secretary of State,

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

(c) where more than one person was appointed to act
45jointly as the housing administrator, by any of
those persons who remains in office.”

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

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22 Paragraph 98 (discharge from liability on vacation of office) is to have effect
as 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) 5in sub-paragraph (4), for the words from the beginning to
“cessation”, in the first place, there were substituted “A sum falling
within sub-paragraph (4A)”,

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

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

(a) 10a sum payable in respect of a debt or other liability
arising out of a contract that was entered into
before cessation by the former housing
administrator or a predecessor,

(b) a sum that must be repaid by the company in
15respect of a grant that was made under section 103
of the Housing and Planning Act 2016 before
cessation,

(c) a sum that must be repaid by the company in
respect of a loan made under that section before
20cessation 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
made before cessation, or

(e) 25a 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 Paragraph 100 (joint and concurrent administrators) is to have effect as if
30sub-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
as if—

(a) 35in 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) after that sub-paragraph there were inserted—

(2A) 40The 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 Paragraph 106(2) (penalties) is to have effect as if paragraphs (a), (b), (f), (g),
45(i) and (l) to (n) were omitted.

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

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

(a) 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) 5in that sub-paragraph, at the appropriate places were inserted—

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

  • ““housing administration application” means an
    10application to the court for a housing
    administration order under Chapter 5 of Part 4 of
    the Housing and Planning Act 2016;”,

  • ““housing administration order” has the same
    meaning as in Chapter 5 of Part 4 of the Housing
    15and Planning Act 2016;”,

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

  • ““prescribed” means prescribed by housing
    20administration rules within the meaning of
    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) 25For 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
30companies

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
35paragraph 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 40In 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,
45are references to those provisions as modified by Part 1 of this
Schedule.

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Modifications

32 In the case of a foreign company—

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

(b) 5paragraphs 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
companies), and

(c) 10paragraph 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
administration order in question as a result of section 92(4) above.

(2) 15Sub-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) 20references to the company’s affairs, business or property are to be
read as references to its UK affairs, business and property,

(c) references 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
25to premises let to it in the United Kingdom, and

(e) references to legal process instituted or continued against the
company 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
30receivers) is to have effect as if—

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

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

(a) a person appointed to perform functions
35equivalent to those of an administrative receiver,
and

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

40must refrain, during the period specified in sub-paragraph
(1A), from performing those functions in the United
Kingdom or in relation to any of the company’s property
in the United Kingdom.

(1A) That period is—

(a) 45 in the case of a person mentioned in sub-
paragraph (1)(a), the period while the company is
in housing administration, and

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(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
5functions.”, 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
10those 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
15appointed) 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
20to 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
by the law of the place where the company is incorporated”.

Part 3 25Other modifications

General modifications

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

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

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

30include references to whatever corresponds to them for the purposes of this
paragraph.

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

(a) an administrator appointed by an administration order,

(b) 35an administration order,

(c) an application for an administration order,

(d) a company in administration,

(e) entering into administration, and

(f) Schedule B1 to the Insolvency Act 1986 or a provision of that
40Schedule.

(3) For the purposes of this paragraph—

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

(b) a housing administration order in relation to a company corresponds
45to an administration order,

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

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

(e) 5entering 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
provision of that Schedule is that Schedule or that provision as
applied by Part 1 of this Schedule.

39 (1) 10Paragraph 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
voluntary arrangements).

(2) Paragraph 38 does not confer any right under section 7(4) of the Insolvency
15Act 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).

20Modifications of the Insolvency Act 1986

40 The following provisions of the Insolvency Act 1986 are to have effect in the
case 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) 25Where the company is in housing administration, the court must not
make an order or give a direction under subsection (3) unless—

(a) the 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,
30and

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

(4B) In subsection (4A) “in housing administration” and “objective of the
housing administration” are to be read in accordance with Schedule
35B1 to this Act, as applied by Part 1 of Schedule 5 to the Housing and
Planning Act 2016.”

42 Section 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
40“subsection (1)”,

(b) after that subsection there were inserted—

(2AA) Subject 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
45the court may be made—

(a) by the Secretary of State, or

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(b) with 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
5housing administration.”,

(c) in 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) 10In this section “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.”

43 In section 129(1A) (commencement of winding up), the reference to
15paragraph 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
20modifications 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,

25as 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
    30“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

35SCHEDULE 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).

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3 For section 145 substitute—

145 Moratorium

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
5following provisions of the Housing and Planning Act 2016—

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

(b) section 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
10application);

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

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

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

(2) 15For subsections (1) and (2) substitute—

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

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

(a) the expiry of the relevant period,

(b) 20the making of a housing administration order under Chapter
5 of Part 4 of the Housing and Planning Act 2016 in relation
to the registered provider, or

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

(2A) The “relevant period” is—

(a) 25the period of 28 days beginning with the day on which the
notice mentioned in section 145 is given, plus

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

(3) Omit subsection (6).

(4) 30For subsection (9) substitute—

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

(a) start a new moratorium, or

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

5 (1) 35Section 147 (further moratorium) is amended as follows.

(2) In subsection (1)(b), for “step specified in section 145 is taken” substitute
“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)
40insert—

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

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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 In section 276 (index of defined terms), omit the entry relating to “working
5day”.

Section 113

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

Law of Property Act 1925 (c. 20)

1 (1) Section 52 of the Law of Property Act 1925 (conveyances to be by deed,
10unless 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-
15style secure tenancies;”.

(3) In subsection (3)—

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

(b) at the appropriate place insert—

  • ““secure tenancy” has the meaning given by section 79
    20of the Housing Act 1985 and “old-style secure
    tenancy” has the meaning given by section 115C of
    that Act;”.

Housing Act 1985 (c. 68)

2 The Housing Act 1985 is amended as follows.

3 25For the italic heading before section 79 substitute—

4 After section 81 insert—

“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
30only if it is a tenancy for a fixed term that is—

(a) at least 2 years, and

(b) no 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.