Housing and Planning Bill (HL Bill 117)

Housing and Planning BillPage 50

(b) a registered society within the meaning of the Co-operative and
Community Benefit Societies Act 2014, or

(c) a charitable incorporated organisation within the meaning of Part 11 of
the Charities Act 2011

(2) 5A person may not take any step to enforce a security over property of the
registered provider unless—

(a) notice of the intention to do so has been given to the Regulator of Social
Housing and a period of at least 28 days has elapsed since the notice
was given, or

(b) 10the Regulator of Social Housing has waived the notice requirement in
paragraph (a).

(3) In the case of a company which is a foreign company, the reference to the
property of the company is to its property in the United Kingdom.

(4) The Regulator of Social Housing must give the Secretary of State a copy of any
15notice given under subsection (2)(a).

(5) The Regulator of Social Housing may waive the notice requirement under
subsection (2)(a) only with the consent of the Secretary of State.

Financial support for registered providers in housing administration

108 Grants and loans where housing administration order is made

(1) 20If a housing administration order has been made in relation to a registered
provider, the Secretary of State may make grants or loans to the registered
provider of such amounts as appear to the Secretary of State appropriate for
achieving the objectives of the housing administration.

(2) A grant under this section may be made on any terms and conditions the
25Secretary of State considers appropriate (including provision for repayment,
with or without interest).

109 Indemnities where housing administration order is made

(1) If a housing administration order has been made in relation to a registered
provider, the Secretary of State may agree to indemnify persons in respect of
30one or both of the following—

(a) liabilities incurred in connection with the carrying out of functions by
the housing administrator, and

(b) loss or damage sustained in that connection.

(2) The agreement may be made in whatever manner, and on whatever terms, the
35Secretary of State considers appropriate.

(3) As soon as practicable after agreeing to indemnify persons under this section,
the Secretary of State must lay a statement of the agreement before Parliament.

(4) For repayment of sums paid by the Secretary of State in consequence of an
indemnity agreed to under this section, see section 110.

(5) 40The power of the Secretary of State to agree to indemnify persons—

Housing and Planning BillPage 51

(a) is confined to a power to agree to indemnify persons in respect of
liabilities, loss and damage incurred or sustained by them as relevant
persons, but

(b) includes power to agree to indemnify persons (whether or not they are
5identified or identifiable at the time of the agreement) who
subsequently become relevant persons.

(6) The following are relevant persons for the purposes of this section—

(a) the housing administrator,

(b) an employee of the housing administrator,

(c) 10a partner or employee of a firm of which the housing administrator is a
partner,

(d) a partner or employee of a firm of which the housing administrator is
an employee,

(e) a partner of a firm of which the housing administrator was an employee
15or partner at a time when the order was in force,

(f) a body corporate which is the employer of the housing administrator,

(g) an officer, employee or member of such a body corporate, and

(h) a Scottish firm which is the employer of the housing administrator or of
which the housing administrator is a partner.

(7) 20For the purposes of subsection (6)

(a) references to the housing administrator are to be read, where two or
more persons are appointed as the housing administrator, as references
to any one or more of them, and

(b) references to a firm of which a person was a partner or employee at a
25particular time include a firm which holds itself out to be the successor
of a firm of which the person was a partner or employee at that time.

110 Indemnities: repayment by registered provider etc

(1) This section applies where a sum is paid out by the Secretary of State in
consequence of an indemnity agreed to under section 109 in relation to the
30housing administrator of a registered provider.

(2) The registered provider must pay the Secretary of State—

(a) such amounts in or towards the repayment to the Secretary of State of
that sum as the Secretary of State may direct, and

(b) interest on amounts outstanding under this subsection at such rates as
35the Secretary of State may direct.

(3) The payments must be made by the registered provider at such times and in
such manner as the Secretary of State may determine.

(4) Subsection (2) does not apply in the case of a sum paid by the Secretary of State
for indemnifying a person in respect of a liability to the registered provider.

(5) 40The Secretary of State must lay before Parliament a statement, relating to the
sum paid out in consequence of the indemnity—

(a) as soon as practicable after the end of the financial year in which the
sum is paid out, and

(b) if subsection (2) applies to the sum, as soon as practicable after the end
45of each subsequent financial year in relation to which the repayment
condition has not been met.

Housing and Planning BillPage 52

(6) The repayment condition is met in relation to a financial year if—

(a) the whole of the sum has been repaid to the Secretary of State before the
beginning of the year, and

(b) the registered provider was not at any time during the year liable to pay
5interest on amounts that became due in respect of the sum.

111 Guarantees where housing administration order is made

(1) If a housing administration order has been made in relation to a registered
provider the Secretary of State may guarantee—

(a) the repayment of any sum borrowed by the registered provider while
10that order is in force,

(b) the payment of interest on any sum borrowed by the registered
provider while that order is in force, and

(c) the discharge of any other financial obligation of the registered
provider in connection with the borrowing of any sum while that order
15is in force.

(2) The Secretary of State may give the guarantees in whatever manner, and on
whatever terms, the Secretary of State considers appropriate.

(3) As soon as practicable after giving a guarantee under this section, the Secretary
of State must lay a statement of the guarantee before Parliament.

(4) 20For repayment of sums paid by the Secretary of State under a guarantee given
under this section, see section 107.

112 Guarantees: repayment by registered provider etc

(1) This section applies where a sum is paid out by the Secretary of State under a
guarantee given by the Secretary of State under section 111 in relation to a
25registered provider.

(2) The registered provider must pay the Secretary of State—

(a) such amounts in or towards the repayment to the Secretary of State of
that sum as the Secretary of State may direct, and

(b) interest on amounts outstanding under this subsection at such rates as
30the Secretary of State may direct.

(3) The payments must be made by the registered provider at such times, and in
such manner, as the Secretary of State may from time to time direct.

(4) The Secretary of State must lay before Parliament a statement, relating to the
sum paid out under the guarantee—

(a) 35as soon as practicable after the end of the financial year in which the
sum is paid out, and

(b) as soon as practicable after the end of each subsequent financial year in
relation to which the repayment condition has not been met.

(5) The repayment condition is met in relation to a financial year if—

(a) 40the whole of the sum has been repaid to the Secretary of State before the
beginning of the year, and

(b) the registered provider was not at any time during the year liable to pay
interest on amounts that became due in respect of the sum.

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Supplementary provisions

113 Modification of this Chapter under the Enterprise Act 2002

(1) The power to modify or apply enactments conferred on the Secretary of State
by each of the sections of the Enterprise Act 2002 mentioned in subsection (2)
5includes power to make such consequential modifications of this Chapter as
the Secretary of State considers appropriate in connection with any other
provision made under that section.

(2) Those sections are—

(a) sections 248 and 277 of the Enterprise Act 2002 (amendments
10consequential on that Act), and

(b) section 254 of the Enterprise Act 2002 (power to apply insolvency law
to foreign companies).

114 Amendments to housing moratorium and consequential amendments

Schedule 6 contains amendments to do with this Chapter.

115 15Interpretation of Chapter

(1) In this Chapter—

  • “business”, “member”, “property” and “security” have the same meaning
    as in the Insolvency Act 1986;

  • “charitable incorporated organisation” means a charitable incorporated
    20organisation within the meaning of Part 11 of the Charities Act 2011;

  • “company” means—

    (a)

    a company registered under the Companies Act 2006, or

    (b)

    an unregistered company;

  • “the court”, in relation to a company or registered society, means the court
    25having jurisdiction to wind up the company or registered society;

  • “foreign company” means a company incorporated outside the United
    Kingdom;

  • “housing administration order” has the meaning given by section 94;

  • “housing administration rules” means rules made under section 411 of the
    30Insolvency Act 1986 as a result of section 101 above;

  • “housing administrator” has the meaning given by section 94 and is to be
    read in accordance with subsection (2) below;

  • “financial year” means a period of 12 months ending with 31 March;

  • “legislation” includes provision made by or under—

    (a)

    35an Act,

    (b)

    an Act of the Scottish Parliament,

    (c)

    Northern Ireland legislation, or

    (d)

    a Measure or Act of the National Assembly for Wales;

  • “objectives of the housing administration” means the objectives in section
    4095(4);

  • “private registered provider” means a private registered provider of
    social housing (see section 80 of the Housing and Regeneration Act
    2008);

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  • “registered provider” means a registered provider of social housing (see
    section 80 of the Housing and Regeneration Act 2008);

  • “registered society” has the same meaning as in the Co-operative and
    Community Benefit Societies Act 2014;

  • 5“Regulator of Social Housing” has the meaning given by section 92A of
    the Housing and Regeneration Act 2008;

  • “Scottish firm” means a firm constituted under the law of Scotland;

  • UK affairs, business and property”, in relation to a company, means—

    (a)

    its affairs and business so far as carried on in the United
    10Kingdom, and

    (b)

    its property in the United Kingdom;

  • “unregistered company” means a company that is not registered under
    the Companies Act 2006.

(2) In this Chapter references to the housing administrator of a registered
15provider—

(a) include a person appointed under paragraph 91 or 103 of Schedule B1
to the Insolvency Act 1986, as applied by Part 1 of Schedule 5 to this Act
or regulations under section 101, to be the housing administrator of the
registered provider, and

(b) 20if two or more persons are appointed as the housing administrator of
the registered provider, are to be read in accordance with the provision
made under section 100.

(3) References in this Chapter to a person qualified to act as an insolvency
practitioner in relation to a registered provider are to be read in accordance
25with Part 13 of the Insolvency Act 1986, but as if references in that Part to a
company included a company registered under the Companies Act 2006 in
Northern Ireland.

(4) For the purposes of this Chapter an application made to the court is
outstanding if it—

(a) 30has not yet been granted or dismissed, and

(b) has not been withdrawn.

(5) An application is not to be taken as having been dismissed if an appeal against
the dismissal of the application, or a subsequent appeal, is pending.

(6) An appeal is to be treated as pending for this purpose if—

(a) 35an appeal has been brought and has not been determined or
withdrawn,

(b) an application for permission to appeal has been made but has not been
determined or withdrawn, or

(c) no appeal has been brought and the period for bringing one is still
40running.

(7) References in this Chapter to a provision of the Insolvency Act 1986 (except the
references in subsection (2) above)—

(a) in relation to a company, are to that provision without the
modifications made by Part 1 of Schedule 5 to this Act,

(b) 45in relation to a registered society, are to that provision as it applies to
registered societies otherwise than by virtue of regulations under
section 101 (if at all), and

Housing and Planning BillPage 55

(c) in relation to a charitable incorporated organisation, are to that
provision as it applies to charitable incorporated organisations
otherwise than by virtue of regulations under section 101 (if at all).

116 Application of Part to Northern Ireland

(1) 5This section makes provision about the application of this Chapter to Northern
Ireland.

(2) Any reference to any provision of the Insolvency Act 1986 is to have effect as a
reference to the corresponding provision of the Insolvency (Northern Ireland)
Order 1989.

(3) 10Section 115(3) is to have effect as if the reference to Northern Ireland were to
England and Wales or Scotland.

CHAPTER 6 Secure tenancies etc.

117 Secure tenancies etc: phasing out of tenancies for life

Schedule 7 changes the law about secure tenancies, introductory tenancies and
15demoted tenancies to phase out tenancies for life.

118 Termination of fixed-term secure tenancies without need to forfeit

(1) The Housing Act 1985 is amended as follows.

(2) In section 82 (security of tenure)—

(a) before subsection (1) insert—

(A1) 20A fixed-term secure tenancy of a dwelling-house in England
that is granted on or after the day on which paragraph 4 of
Schedule 7 to the Housing and Planning Act 2016 comes fully
into force cannot be brought to an end by the landlord except
by—

(a) 25obtaining—

(i) an order of the court for the possession of the
dwelling-house, and

(ii) the execution of the order, or

(b) obtaining a demotion order under section 82A.

(A2) 30A secure tenancy can be brought to an end by the landlord as
mentioned in subsection (A1)(a) whether or not the tenancy
contains terms for it to be brought to an end.”

(b) in subsection (1)(b), for “but” substitute “, other than one to which
subsection (A1) applies, that is”;

(c) 35in subsection (2), after “subsection” insert “(A1)(a) or”.

(3) In section 83 (proceedings for possession), in subsection (A1), for “82(1A)”
substitute “82(A1) or (1A)”.

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119 Succession to secure tenancies and related tenancies

Schedule 8 changes the law about succession to secure tenancies, introductory
tenancies and demoted tenancies.

120 Secure and assured tenancies: transfer of tenancy

(1) 5The Localism Act 2011 is amended as follows.

(2) In section 158 of the Localism Act 2011 (secure and assured tenancies: transfer
of tenancy)—

(a) in subsection (3)(a), for “not a flexible tenancy” substitute “an old-style
secure tenancy”;

(b) 10in subsection (4)(a), for “is a flexible tenancy” substitute “is not an old-
style secure tenancy”;

(c) omit subsection (6);

(d) in subsection (7), for “fifth” substitute “fourth”;

(e) for subsections (8) and (9) substitute—

(8) 15The new tenancy is to be granted on whatever terms the
landlord determines.

(9) A landlord must, on request by a relevant tenant, inform the
tenant of the terms on which a new tenancy will be granted to
that tenant.

(9A) 20Subsection (9B) applies in a case where—

(a) the request was made before section 120 of the Housing
and Planning Act 2016 came into force, and

(b) one or more of the landlords had not yet complied with
the request when that section came into force.

(9B) 25In that case any new tenancy granted in pursuance of this
section to a relevant tenant whose existing tenancy is an old-
style secure tenancy, or an assured tenancy that is not an
assured shorthold tenancy, must be—

(a) an old-style secure tenancy, or

(b) 30an assured tenancy that is not an assured shorthold
tenancy,

according to the landlord’s capacity to grant a tenancy of either
kind.”

(3) In section 159 (interpretation of section 158 etc), in subsection (6), omit
35paragraph (b).

Part 5 Housing, estate agents and rentcharges: other changes

Electrical safety standards

121 Electrical safety standards for properties let by private landlords

(1) 40The Secretary of State may by regulations impose duties on a private landlord
of residential premises in England for the purposes of ensuring that electrical

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safety standards are met during any period when the premises are occupied
under a tenancy.

(2) “Electrical safety standards” means standards specified in, or determined in
accordance with, the regulations in relation to—

(a) 5the installations in the premises for the supply of electricity, or

(b) electrical fixtures, fittings or appliances provided by the landlord.

(3) The duties imposed on the landlord may include duties to ensure that a
qualified person has checked that the electrical safety standards are met.

(4) The regulations may make provision about—

(a) 10how and when checks are carried out;

(b) who is qualified to carry out checks.

(5) The regulations may require the landlord—

(a) to obtain a certificate from the qualified person confirming that
electrical safety standards are met, and

(b) 15to give a copy of a certificate to the tenant, or a prospective tenant, or
any other person specified in the regulations.

(6) In this section—

  • “premises” includes land, buildings, moveable structures, vehicles and
    vessels;

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

  • “residential premises” means premises all or part of which comprise a
    dwelling;

  • “tenancy” includes a licence to occupy (and “landlord” is to be read
    25accordingly).

122 Electrical safety standards: enforcement

(1) Regulations under section 121 may provide for covenants to be implied into a
tenancy.

(2) Regulations under that section—

(a) 30may make provision about the enforcement of a duty imposed by the
regulations;

(b) may confer functions on a local housing authority in England.

(3) The provision that may be made about enforcement includes provision—

(a) requiring a landlord who fails to comply with a duty imposed by the
35regulations to pay a financial penalty (or more than one penalty in the
event of a continuing failure);

(b) conferring power on a local housing authority to arrange for a person
to enter on the premises, with the consent of the tenant, to remedy any
failure by the landlord to comply with a duty imposed by the
40regulations.

(4) The provision that may be made in reliance on subsection (3)(a) includes
provision—

(a) about the procedure to be followed in imposing penalties;

(b) about the amount of penalties;

(c) 45conferring rights of appeal against penalties;

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(d) for the enforcement of penalties;

(e) about the application of sums paid by way of penalties (and such
provision may permit or require the payment of sums into the
Consolidated Fund).

(5) 5The provision that may be made in reliance on (3)(b) includes provision—

(a) about procedural matters;

(b) enabling a local housing authority to recover from the landlord any
costs incurred by it in remedying the failure;

(c) about the application of costs recovered (and such provision may
10permit or require the payment of sums into the Consolidated Fund).

(6) In this section “local housing authority” has the meaning given by section 1 of
the Housing Act 1985.

Accommodation needs in England

123 Assessment of accommodation needs

(1) 15In section 8 of the Housing Act 1985 (periodical review of housing needs), after
subsection (2) insert—

(3) In the case of a local housing authority in England, the duty under
subsection (1) includes a duty to consider the needs of people residing
in or resorting to their district with respect to the provision of—

(a) 20sites on which caravans can be stationed, or

(b) places on inland waterways where houseboats can be moored.

(4) In subsection (3)—

  • “caravan” has the meaning given by section 29 of the Caravan Sites
    and Control of Development Act 1960;

  • 25“houseboat” means a boat or similar structure designed or
    adapted for use as a place to live.”

(2) In the Housing Act 2004 omit sections 225 and 226 (accommodation needs of
gypsies and travellers).

Housing regulation in England

124 30Licences for HMO and other rented accommodation: additional tests

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

(2) In section 63 (application for licences: houses in multiple occupation), in
subsection (6)(c), after “information” insert “or evidence”.

(3) In section 66 (tests for fitness and satisfactory management arrangements:
35houses in multiple occupation)—

(a) after subsection (1) insert—

(1A) A local housing authority in England must also have regard to
any evidence within subsection (3A) or (3B).”;

(b) in subsection (2), in paragraph (c), after “tenant law” insert “(including
40Part 3 of the Immigration Act 2014)”;

Housing and Planning BillPage 59

(c) after subsection (3) insert—

(3A) Evidence is within this subsection if it shows that P—

(a) requires leave to enter or remain in the United Kingdom
but does not have it; or

(b) 5is insolvent or an undischarged bankrupt.

(3B) Evidence is within this subsection if—

(a) it shows that any person associated or formerly
associated with P (whether on a personal, work or other
basis) is a person to whom subsection (3A)(a) or (b)
10applies; and

(b) it appears to the authority that the evidence is relevant
to the question whether P is a fit and proper person to be
the licence holder or (as the case may be) the manager of
the house.”

(4) 15In section 70 (revocation of licences), in subsection (2), in the words after
paragraph (c)—

(a) for “Section 66(1) applies” substitute “Section 66(1) and (1A) apply”;

(b) for “it applies” substitute “they apply”.

(5) In section 87 (application for licences: certain other houses), in subsection (6)(c)
20after “information” insert “or evidence”.

(6) In section 89 (tests for fitness and satisfactory management arrangements:
certain other houses)—

(a) after subsection (1) insert—

(1A) A local housing authority in England must also have regard to
25any evidence within subsection (3A) or (3B).”;

(b) in subsection (2), in paragraph (c), after “tenant law” insert “(including
Part 3 of the Immigration Act 2014)”;

(c) after subsection (3) insert—

(3A) Evidence is within this subsection if it shows that P—

(a) 30requires leave to enter or remain in the United Kingdom
but does not have it; or

(b) is insolvent or an undischarged bankrupt.

(3B) Evidence is within this subsection if—

(a) it shows that any person associated or formerly
35associated with P (whether on a personal, work or other
basis) is a person to whom subsection (3A)(a) or (b)
applies; and

(b) it appears to the authority that the evidence is relevant
to the question whether P is a fit and proper person to be
40the licence holder or (as the case may be) the manager of
the house.”

(7) In section 93, in subsection (2), in the words after paragraph (c)—

(a) for “Section 89(1) applies” substitute “Section 89(1) and (1A) apply”;

(b) for “it applies” substitute “they apply”.