Housing and Planning Bill (HL Bill 117)

125 Financial penalty as alternative to prosecution under Housing Act 2004

Schedule 9 amends the Housing Act 2004 to allow financial penalties to be
imposed as an alternative to prosecution for certain offences.

126 Offence of contravening an overcrowding notice: level of fine

(1) 5Section 139 of the Housing Act 2004 (overcrowding notices) is amended as
follows.

(2) In subsection (7), omit “and is liable on summary conviction to a fine not
exceeding level 4 on the standard scale”.

(3) After subsection (7) insert—

“(7A) 10A person who commits an offence under subsection (7) in relation to
premises in England is liable on summary conviction to a fine.

(7B) A person who commits an offence under subsection (7) in relation to
premises in Wales is liable on summary conviction to a fine not
exceeding level 4 on the standard scale.”

15Housing information in England

127 Tenancy deposit information

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

(2) In section 212 (tenancy deposit schemes), after subsection (6) insert—

“(6A) For further provision about what must be included in the
20arrangements, see section 212A.””

(3) After section 212 insert—

“212A Provision of information to local authorities

(1) Arrangements under section 212(1) made by the Secretary of State must
require the scheme administrator—

(a) 25to give a local housing authority in England any specified
information that they request, or

(b) to provide facilities for the sharing of specified information with
a local housing authority in England.

(2) In subsection (1) “specified information” means information, of a
30description specified in the arrangements, that relates to a tenancy of
premises in the local housing authority’s area.

(3) Arrangements made by virtue of this section may make the
requirement to provide information or facilities to a local housing
authority conditional on the payment of a fee.

(4) 35Arrangements made by virtue of this section may include
supplementary provision, for example about—

(a) the form or manner in which any information is to be provided,

(b) the time or times at which it is to be provided, and

(c) the notification of anyone to whom the information relates.

(5) Information obtained by a local housing authority by virtue of this
section may be used only—

(a) for a purpose connected with the exercise of the authority’s
functions under any of Parts 1 to 4 in relation to any premises, or

(b)
5for the purpose of investigating whether an offence has been
committed under any of those Parts in relation to any premises.

(6) Information obtained by a local housing authority by virtue of this
section may be supplied to a person providing services to the authority
for a purpose listed in subsection (5).

(7) 10The Secretary of State may by regulations amend the list of purposes in
subsection (5).””

(4) In section 250(6) (affirmative instruments), after paragraph (b) insert—

“(ba) regulations under section 212A,”.”

128 Use of information obtained for certain other statutory purposes

(1) 15The Housing Act 2004 is amended as follows.

(2) In section 237 (use of information obtained for certain other statutory
purposes) after subsection (2) insert—

“(3) The Secretary of State may by regulations amend this section so as to
change the list of purposes for which a local housing authority in
20England may use information to which it applies.””

(3) In section 250(6) (affirmative instruments), after paragraph (c) insert—

“(ca) regulations under section 237,”.”

129 Tenants’ associations: power to request information about tenants

After section 29 of the Landlord and Tenant Act 1985 insert—

“29A 25Tenants’ associations: power to request information about tenants

(1) The Secretary of State may by regulations impose duties on a landlord
to provide the secretary of a relevant tenants’ association with
information about relevant qualifying tenants.

(2) The regulations may—

(a) 30make provision about the tenants about whom information
must be provided and what information must be provided;

(b) require a landlord to seek the consent of a tenant to the
provision of information about that tenant;

(c) require a landlord to identify how many tenants have not
35consented.

(3) The regulations may—

(a) authorise a landlord to charge costs specified in or determined
in accordance with the regulations;

(b) impose time limits on a landlord for the taking of any steps
40under the regulations;

(c) make provision about the form or content of any notices under
the regulations (including provision permitting or requiring a
person to design the form of a notice);

(d) make other provision as to the procedure in connection with
5anything authorised or required by the regulations.

(4) The regulations may confer power on a court or tribunal to make an
order remedying a failure by a landlord to comply with the regulations.

(5) The regulations may include supplementary, incidental, transitional or
saving provision.

(6) 10Regulations under this section are to be made by statutory instrument.

(7) A statutory instrument containing regulations under this section is
subject to annulment in pursuance of a resolution of either House of
Parliament.

(8) In this section—

• 15“relevant tenants’ association”, in relation to a landlord, means an
  association of tenants of the landlord at least one of whom is a
  qualifying tenant of a dwelling in England;

• “relevant qualifying tenant” means—

  (a)

  a person who is a qualifying tenant of a dwelling in
  20England and a member of the relevant tenants’
  association, or

  (b)

  a person who is a qualifying tenant of a dwelling in
  England by virtue of being required to contribute to the
  same costs as a qualifying tenant who is a member of the
  25relevant tenants’ association;

• “qualifying tenant” means a tenant who, under the terms of the
  lease, is required to contribute to the same costs as another
  tenant by the payment of a service charge.””

Administration charges

130 30Limitation of administration charges: costs of proceedings

In Schedule 11 to the Commonhold and Leasehold Reform Act 2002
(administration charges), after paragraph 5 insert—

““Limitation of administration charges: costs of proceedings

5A (1) A tenant of a dwelling in England may apply to the relevant court or
35tribunal for an order reducing or extinguishing the tenant’s liability
to pay a particular administration charge in respect of litigation
costs.

(2) The relevant court or tribunal may make whatever order on the
application it considers to be just and equitable.

(3) 40In this paragraph—

(a) “litigation costs” means costs incurred, or to be incurred, by
the landlord in connection with proceedings of a kind
mentioned in the table, and

(b) “the relevant court or tribunal” means the court or tribunal
mentioned in the table in relation to those proceedings.

Enforcement of estate agents legislation

131 Estate agents: lead enforcement authority

(1) 20Before section 25 of the Estate Agents Act 1979 insert—

“24A Lead enforcement authority

(1) In this Act “the lead enforcement authority” means—

(a) the Secretary of State, or

(b) a person whom the Secretary of State has arranged to be the lead
25enforcement authority in accordance with subsection (2).

(2) The Secretary of State may make arrangements for one of the following
to be the lead enforcement authority for the purposes of this Act (for the
whole of the United Kingdom) instead of the Secretary of State—

(a) a local weights and measures authority in Great Britain, or

(b) 30the Department of Enterprise, Trade and Investment in
Northern Ireland.

(3) The arrangements—

(a) may include provision for payments by the Secretary of State;

(b) may include provision about bringing the arrangements to an
35end.

(4) The Secretary of State may by regulations made by statutory
instrument make transitional provision for when there is a change in
the lead enforcement authority.

(5) The regulations may relate to a specific change in the lead enforcement
40authority or to changes that might arise from time to time.””

(2) In section 26(1) of that Act (enforcement authorities), in paragraph (c), for
“Department of Commerce for Northern Ireland” substitute “Department of
Enterprise, Trade and Investment in Northern Ireland”.

(3) In section 33(1) of that Act (general interpretation), for the definition of “the
5lead enforcement authority” substitute—

• “““the lead enforcement authority” has the meaning given by
  section 24A;”.”

(4) In paragraph 13(9) of Schedule 5 to the Consumer Rights Act 2015 (powers
under Part 3 of that Schedule to be exercisable for the purposes of certain
10functions of the lead enforcement authority) after “Great Britain” insert “, the
Department of Enterprise, Trade and Investment in Northern Ireland or the
Secretary of State”.

Client money protection schemes for property agents

132 Power to require property agents to join client money protection schemes

(1) 15The Secretary of State may by regulations require a property agent to be a
member of—

(a) a client money protection scheme approved by the Secretary of State for
the purpose of the regulations, or

(b) a government administered client money protection scheme that is
20designated by the Secretary of State for the purpose of the regulations.

(2) The regulations may impose requirements about the nature of the membership
that a property agent must obtain (for example, by requiring a property agent
to obtain membership that results in a particular level of compensation being
available).

(3) 25The regulations shall—

(a) require a property agent to obtain a certificate confirming the property
agent’s membership of the scheme;

(b) require the property agent to display or publish the certificate in
accordance with the regulations;

(c) 30require the property agent to produce a copy of the certificate, on
request, in accordance with the regulations.

(4) In this section—

• “client money protection scheme” means a scheme which enables a
  person on whose behalf a property agent holds money to be
  35compensated if all or part of that money is not repaid in circumstances
  in which the scheme applies;

• “government administered client money protection scheme” means a
  client money protection scheme that is administered by or on behalf of
  the Secretary of State;

• 40“property agent” means—

  (a)

  a person who engages in English letting agency work within the
  meaning of section 53, or

  (b)

  a person who engages in English property management work
  within the meaning of section 54,

  45other than a person who engages in that work in the course of the
  person’s employment under a contract of employment.

133 Client money protection schemes: approval or designation

(1) The Secretary of State may by regulations make provision about the approval
or designation of client money protection schemes for the purposes of
regulations under section 132.

(2) 5The regulations may, in particular, make provision about—

(a) the making of applications for approval,

(b) conditions which must be satisfied before approval may be given or a
scheme may be designated;

(c) conditions which must be complied with by administrators of
10approved or designated client money protection schemes (including
conditions requiring the issue of certificates for the purposes of
regulations under section 132(3) and about the form of those
certificates);

(d) the withdrawal of approval or revocation of a designation.

134 15Enforcement of client money protection scheme regulations

(1) The Secretary of State may by regulations make provision about the
enforcement of a duty imposed by regulations under section 132.

(2) The regulations may—

(a) confer functions on a local authority in England;

(b) 20require a property agent who fails to comply with a duty imposed by
regulations under 132 to pay a financial penalty (or more than one
penalty in the event of a continuing failure).

(3) The provision that may be made under subsection (2)(a) includes provision
requiring a local authority in England, when carrying out functions under the
25regulations, to have regard to guidance given by the Secretary of State.

(4) The provision that may be made under subsection (2)(b) includes provision—

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

(b) about the amount of penalties;

(c) conferring rights of appeal against penalties;

(d) 30for the enforcement of penalties;

(e) authorising a local authority in England to use sums paid by way of
penalties for the purposes of any of its functions.

(5) In this section “local authority in England” means—

(a) a district council,

(b) 35a county council for an area for which there is no district council,

(c) a London borough council,

(d) the Common Council of the City of London, or

(e) the Council of the Isles of Scilly.

Enfranchisement and extension of long leaseholds

135 40Enfranchisement and extension of long leaseholds: calculations

Schedule 10 changes the method of calculating certain amounts under—

(a) the Leasehold Reform Act 1967, and

(b) the Leasehold Reform, Housing and Urban Development Act 1993.

Rentcharges

136 Redemption price for rentcharges

(1) The Rentcharges Act 1977 is amended as follows.

(2) 5In section 9(4)(a), after “in accordance with” insert “regulations under”.

(3) In section 10, for subsection (1) substitute—

“(1) For the purposes of section 9 above, the redemption price for a
rentcharge is to be calculated in accordance with regulations made by
the Secretary of State.””

(4) 10In section 12(2), after “such” insert “transitional,”.

(5) The amendments made by this section apply in relation to cases where—

(a) an application for a redemption certificate is made under section 8 of
the Rentcharges Act 1977 before this Act is passed, but

(b) the instructions for redemption have not been served on the applicant
15under section 9(4) of the Rentcharges Act 1977 before this Act is passed,

as well as to cases involving an application for a redemption certificate made
after this Act is passed.

137 Procedure for redeeming English rentcharges

(1) The Rentcharges Act 1977 is amended in accordance with subsections (2) to (5).

(2) 20Before section 8 (but after the italic heading before section 8) insert—

“7A Power to make procedure for redeeming English rentcharges

(1) The Secretary of State may by regulations make provision allowing the
owner of land in England affected by a rentcharge to redeem it.

(2) Regulations under subsection (1) may not make provision in relation
25to—

(a) a rentcharge that could be redeemed by making an application
under section 8(1A),

(b) a rentcharge of a kind mentioned in section 2(3) or section
3(3)(a),

(c) 30a rentcharge in respect of which the period for which it is
payable cannot be ascertained, or

(d) a variable rentcharge.

(3)
For the purposes of subsection (2)(d) a rentcharge is variable if the
amount of the rentcharge will, or may, vary in the future in accordance
35with the provisions of the instrument under which it is payable.

(4) Regulations under subsection (1) may, in particular—

(a) provide for the owner of land affected by a rentcharge to be able
to redeem a rentcharge by taking specified steps, including
making payments determined in accordance with the
40regulations;

(b) require a rent owner or other person to take specified steps to
facilitate the redemption of a rentcharge, such as providing
information or executing a deed of release;

(c) where the documents of title of the owner of land affected by a
5rentcharge are in the custody of a mortgagee, require the
mortgagee to make those documents or copies of those
documents available in accordance with the regulations;

(d) permit or require a person specified in the regulations to design
the form of any document to be used in connection with the
10redemption of rentcharges under the regulations;

(e) provide for a court or tribunal to—

(i) determine disputes about or in relation to the
redemption of a rentcharge;

(ii) make orders about the redemption of a rentcharge;

(iii) 15issue a redemption certificate;

(f) make provision corresponding to any of the provisions of
section 10(2) to (4).

(5) Nothing in this section prevents the redemption of a rentcharge
otherwise than in accordance with regulations under subsection (1).””

(3) 20In section 8—

(a) in subsection (1)—

(i) after “land” insert “in Wales”;

(ii) for the words from “a certificate” to the end substitute “a
redemption certificate”;

(b) 25after subsection (1) insert—

“(1A) The owner of any land in England affected by a rentcharge
which has been apportioned to that land by an apportionment
order with a condition under—

(a) section 7(2) above, or

(b) 30section 20(1) of the Landlord and Tenant Act 1927,

may apply to the Secretary of State, in accordance with this
section, for a redemption certificate.””

(4) In section 12—

(a) in subsection (1), after “this Act” insert “, apart from regulations under
35section 7A,”;

(b) after subsection (1) insert—

“(1A) Regulations under section 7A are to be made by statutory
instrument.

(1B) A statutory instrument containing regulations under section 7A
40may not be made unless a draft of the instrument has been laid
before and approved by a resolution of each House of
Parliament.””

(5) In section 13(1), in the definition of “redemption certificate”, for the words
from “has” to the end substitute “means a certificate certifying that a
45rentcharge has been redeemed”.

(6) The Leasehold Reform Act 1967 is amended in accordance with subsections (7)
and (8).

(7) In section 8(4)(b), for “8” substitute “7A”.

(8) In section 11—

(a) in subsection (6), after “1977” insert “or the amount that would have to
be paid to secure the redemption of that rentcharge in accordance with
5regulations made under section 7A of that Act”;

(b) in subsection (7)(a), after “specified” insert “or required”;

(c) in subsection (8), for “8” substitute “7A”.

Part 6 Planning in England

10Neighbourhood planning

138 Designation of neighbourhood areas

In section 61G of the Town and Country Planning Act 1990 (meaning of
“neighbourhood area”), after subsection (11) insert—

“(12) Regulations under subsection (11) may provide that where an
15application under this section—

(a) meets prescribed criteria, or

(b) has not been determined within a prescribed period,

the local planning authority must, except in prescribed cases or
circumstances, exercise their powers under this section to designate the
20specified area as a neighbourhood area.

(13) The reference in subsection (12) to the designation of an area as a
neighbourhood area includes the modification under subsection (6) of
a designation already made.””

139 Timetable in relation to neighbourhood development orders and plans

(1) 25In Schedule 4B to the Town and Country Planning Act 1990 (process for
making of neighbourhood development orders), after paragraph 13 insert—

“13A Regulations may make provision—

(a) requiring any prescribed action falling to be taken by the
local planning authority under paragraph 12 or 13 to be taken
30by a prescribed date;

(b) imposing time limits for the submission of representations
invited under paragraph 13(1).””

(2) In section 61E of that Act (neighbourhood development orders), in subsection
(4)(b), after “as soon as reasonably practicable after the referendum is held”
35insert “and, in any event, by such date as may be prescribed”.

(3) In section 38A of the Planning and Compulsory Purchase Act 2004 (meaning of
“neighbourhood development plan”), in subsection (4)(b), after “as soon as
reasonably practicable after the referendum is held” insert “and, in any event,
by such date as may be prescribed”.

140 Making neighbourhood development orders and plans: intervention powers

(1) In Schedule 4B to the Town and Country Planning Act 1990, before paragraph
14 insert—

““Intervention powers of Secretary of State

13B (1) 5This paragraph applies where the qualifying body requests the
Secretary of State to intervene under this paragraph and—

(a) the local planning authority have failed, by the applicable
date prescribed under paragraph 13A, to take a decision as to
whether a referendum is (or referendums are) to be held on
10the making of a neighbourhood development order,

(b) a recommendation made under paragraph 10(2) is not
followed by the authority, or

(c) the authority make any modification under paragraph 12(5)
that is not—

(i) 15a modification recommended under paragraph
10(2)(b),

(ii) a modification that the authority consider needs to be
made to secure that the draft order does not breach,
and is otherwise compatible with, EU obligations,

(iii) 20a modification that the authority consider needs to be
made to secure that the draft order is compatible with
the Convention rights, or

(iv) a modification for the purpose of correcting an error.

(2) The Secretary of State may exercise functions of the local planning
25authority under paragraph 12(2) and (3) and—

(a) if satisfied that paragraph (a) or (b) of paragraph 12(4)
applies, may direct the authority to make arrangements for a
referendum (or referendums) to be held on the making of a
neighbourhood development order;

(b) 30if not so satisfied, may direct the authority to refuse the
proposal.

(3) The Secretary of State may direct the authority to take the actions
referred to in paragraph 12(8) and (9).

(4) If by reason (wholly or partly) of new evidence or a new fact, or a
35different view taken by the Secretary of State as to a particular fact,
the Secretary of State proposes to direct the local planning authority
to act in a way that is not in accordance with what was recommended
by the examiner—

(a) the Secretary of State may require the authority to notify
40prescribed persons of the proposed direction (and the reason
for it) and invite representations;

(b) the Secretary of State may also require them to refer the issue
to independent examination.

(5) The order on which a referendum is (or referendums are) to be held
45by virtue of sub-paragraph (2)(a) is the draft order subject to such
modification (if any) as the Secretary of State or the local planning
authority consider appropriate.