Housing and Planning Bill (HL Bill 117)

(2) If a local housing authority or a housing action trust purports to enter
into an introductory tenancy in breach of subsection (1), it takes
effect as a tenancy for a fixed term of 5 years.

(3) Subsections (1) and (2) apply only to tenancies entered into on or
5after the day on which paragraph 4 of Schedule 7 to the Housing and
Planning Act 2016 comes fully into force.

(4) A tenancy of a dwelling-house in England that is adopted by a local
housing authority or a housing action trust does not become an
introductory tenancy if—

(a) 10it is adopted on or after the day on which paragraph 4 of
Schedule 7 to the Housing and Planning Act 2016 came fully
into force, and

(b) the tenancy is a periodic tenancy or it is a tenancy for a fixed
term of less than 2 years or more than 5 years.

(5) 15Subsections (6) and (7) apply where a tenancy that has been adopted
by a local housing authority or a housing action trust is not an
introductory tenancy but would (on adoption or at any later time)
become a secure tenancy but for subsection (4).

(6) The local housing authority or housing action trust must, within the
20period of 28 days, make the tenant a written offer of an introductory
tenancy in return for the tenant surrendering the original tenancy.

(7) If the tenant accepts in writing within the period of 28 days
beginning with the day on which the tenant receives the offer, the
local housing authority or housing action trust must grant an
25introductory tenancy on the tenant surrendering the original
tenancy.

124B Review of decisions about length of introductory tenancies in England

(1) A person who is offered an introductory tenancy of a dwelling-house
in England may request a review under this section.

(2) 30The 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 introductory
tenancies it grants.

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

(a) 35the 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
writing.

(4) On receiving the request the prospective landlord must carry out the
40review.

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

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

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

(c) 45if 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
section.

(7) The regulations may, in particular—

(a) 5require the review to be carried out by a person of
appropriate seniority who was not involved in the original
decision;

(b) make provision as to the circumstances in which the person
who requested the review is entitled to an oral hearing, and
10whether and by whom that person may be represented.””

21 (1) Section 125A (extension of trial period by 6 months) is amended as follows.

(2) In subsection (1), for “both” substitute “each”.

(3) After subsection (3) insert—

“(3A) The third condition must be met only if the introductory tenancy —

(a) 15is one to which section 124A(1) or (2) applies, or

(b) is adopted by a local housing authority or housing action
trust on or after the day on which paragraph 4 of Schedule 7
came fully into force.

(3B) The third condition is that the new expiry date would be before the
20period mentioned in section 86A(3) of the Housing Act 1985 (review
to determine what to do at end of fixed term secure tenancy); and for
this purpose “the new expiry date” means the last day of the 6 month
extension period mentioned in subsection (1).””

22 In section 128 (notice of proceedings for possession), in subsection (4), for the
25second sentence substitute—

““The date so specified—

(a) in a case where the introductory 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
30by notice to quit given by the landlord on the same date as the
proceedings, and

(b) in a case where the introductory 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
35proceedings is served.””

23 In section 137A (introductory tenancies that are to become flexible
tenancies), in subsection (2), for “, before entering into or adopting the
introductory tenancy” substitute “the introductory tenancy was entered into
or adopted before the day on which paragraph 4 of Schedule 7 to the
40Housing 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)

substitute—

(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
5from this Chapter, be brought to an end by notice to quit given
by 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
10served.”””

26 (1) Section 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
15the day on which paragraph 4 of Schedule 7 to the Housing and Planning
Act 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
20force, the period specified under subsection (3)(b) must be no more
than five years.””

27 After section 143MA insert—

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

(1) 25This section applies where—

(a) a 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
30paragraph 4 of Schedule 7 to the Housing and Planning Act
2016 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
35that it replaces, so far as those terms are compatible with—

(a) a 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).””

Land Registration Act 2002 (c. 9)2002 (c. 9)

28 40In section 132 of the Land Registration Act 2002 (interpretation), in the
definition of “flexible tenancy” in subsection (1), for “107A” substitute
“115B”.

Localism Act 2011 (c. 20)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 5In section 159 (further provisions about transfer of tenancy under section
158), 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
10sections continue to apply in relation to a flexible tenancy the term of which
ends 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
15not apply in relation to such a tenancy.

Section 119

SCHEDULE 8 Succession to secure tenancies and related tenancies

Housing Act 1985 (c. 68)Housing Act 1985 (c. 68)

1 The Housing Act 1985 is amended as follows.

2 20In section 86 (periodic tenancy arising on termination of fixed term), after
subsection (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) 25the tenancy has been vested in, or otherwise disposed of to,
the 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) 30Section 86A (persons qualified to succeed: England) as inserted by the
Localism 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) 35is amended as follows.

(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
40tenancy 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
5periodic tenancy), or”.”

5 (1) Section 89 (succession to periodic 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
10under section 86G(2) or (4) and continues to be a secure tenancy—

(a) the periodic tenancy (“the old 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) 15The 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 are confined to those which are compatible with a tenancy
for a fixed term of 5 years.

(2C) Where a possession order was in force in relation to the old
20tenancy—

(a) the possession order is to be treated, so far as possible, as if it
applied in relation to the new tenancy, and

(b) any other court orders made in connection with the
possession order are also to be treated, so far as possible, as if
25they applied in relation to the new tenancy.

(2D) In subsection (2C) “possession order” means an order for possession
of the dwelling house.””

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”.

30Housing Act 1996 (c. 52)Housing Act 1996 (c. 52)

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

“130A 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) 35the person occupies the dwelling-house as his or her only or
principal 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 an introductory
tenancy of a dwelling-house in England if—

(a) 40at 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
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

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

(3) 5Subsection (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
to succeed a successor to the tenancy, and

(b) 10the 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) Subsection (7) applies if, on the death of the tenant, there is by virtue
15of 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
the purpose of this section to be treated as the fulfilling that
20condition.””

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

9 (1) 25Section 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) in that person, or

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

“143GA 35 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
principal home at the time of the tenant’s death, and

(b) 40the 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
occupied 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
5other 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.

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

(4) 10In such a case, a person is qualified to succeed the tenant if—

(a) an 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
15tenant as the tenant’s wife or husband is to be treated as the tenant’s
spouse.

(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) 20Such 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
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 25 Succession to demoted tenancy: England

(1) This 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) 30in 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) Where a periodic demoted tenancy vests in a person qualified to
35succeed the tenant under section 143GA(2) or (4) and continues to be
a 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) 40The parties and terms of a tenancy arising by virtue of subsection (3)
are the same as those of the tenancy that it replaces, except that the
terms are confined to those which are compatible with a tenancy for
a fixed term of 5 years.

(5) Where a demoted tenancy comes to an end and a new tenancy arises
45by 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.

(2) At the heading insert “: Wales”.

(3) 5In 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) Section 143J of the Housing Act 1996 (demoted tenancies: successor tenants)
is amended as follows.

(2) 10After subsection (3) insert—

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

(3) For subsection (7) substitute—

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

(a) 15the 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).””

Localism Act 2011 (c. 20)2011 (c. 20)

14 In section 160 of the Localism Act 2011 (succession to secure tenancies), omit
20subsection (6).

Savings

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

Section 125

30SCHEDULE 9 Financial penalty as alternative to prosecution under Housing Act 2004

1 The Housing Act 2004 is amended as follows.

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

“(7) 35See 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
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.””

3 5In 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) If a local housing authority has imposed a financial penalty on a
10person 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
subsection (6) insert—

“(6A) 15See 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
offence under this section the person may not be convicted of an
20offence 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) If a local housing authority has imposed a financial penalty on a
25person 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
subsection (5) insert—

“(6) 30See 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
offence under this section the person may not be convicted of an
35offence 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) The local housing authority may impose a financial penalty on a
40person if satisfied, beyond reasonable doubt, 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) section 72 (licensing of HMOs),

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

(d) section 139(7) (failure to comply with overcrowding notice),
5or

(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
10determined 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
15conduct, 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) 20the 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
25local 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
30to 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
35section 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
40relates.