Housing Bill

House of Commons

Session 2003 - 04
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Housing Bill

Housing Bill
Part 3 — Selective licensing of other residential accommodation
53

Variation and revocation of licences
79
Variation of licences
(1)
The local housing authority may vary a licence—
(a)
if they do so with the agreement of the licence holder, or
(b)
if they consider that there has a change of circumstances since the time
5
when the licence was granted.
For this purpose “change of circumstances” includes any discovery of new
information.
(2)
A variation made with the agreement of the licence holder takes effect at the
time when it is made.
10
(3)
Otherwise, a variation does not come into force until such time, if any, as is the
operative time for the purposes of this subsection under paragraph 35 of
Schedule 5 (time when period for appealing expires without an appeal being
made or when decision to vary is confirmed on appeal).
(4)
The power to vary a licence under this section is exercisable by the authority
15
either—
(a)
on an application made by the licence holder or a relevant person, or
(b)
on the authority’s own initiative.
(5)
In subsection (4) “relevant person” means any person (other than the licence
holder)—
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(a)
who has an estate or interest in the house concerned (but is not a tenant
under a lease with an unexpired term of 3 years or less), or
(b)
who is a person managing or having control of the house (and does not
fall within paragraph (a)), or
(c)
on whom any restriction or obligation is imposed by the licence in
25
accordance with section 77(5).
80
Revocation of licences
(1)
The local housing authority may revoke a licence—
(a)
if they do so with the agreement of the licence holder,
(b)
in any of the cases mentioned in subsection (2) (circumstances relating
30
to licence holder or other person),
(c)
in any of the cases mentioned in subsection (3) (circumstances relating
to house concerned), or
(d)
in any other circumstances prescribed by regulations made by the
appropriate national authority.
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(2)
The cases referred to in subsection (1)(b) are as follows—
(a)
where the authority consider that the licence holder or any other person
has failed to comply with a condition of the licence;
(b)
where the authority no longer consider that the licence holder is a fit
and proper person to be the licence holder; and
40
(c)
where the authority no longer consider that the management of the
house is being carried on by persons who are in each case fit and proper
persons to be involved in its management.
(3)
The cases referred to in subsection (1)(c) are as follows—

Housing Bill
Part 3 — Selective licensing of other residential accommodation
54

(a)
where the house to which the licence relates ceases to be a Part 3 house;
(b)
where a licence has been granted under Part 2 in respect of the house;
(c)
where the authority consider at any time that, were the licence to expire
at that time, they would, for a particular reason relating to the structure
of the house, refuse to grant a new licence to the licence holder on
5
similar terms in respect of it.
(4)
A revocation made with the agreement of the licence holder takes effect at the
time when it is made.
(5)
Otherwise, a revocation does not come into force until such time, if any, as is
the operative time for the purposes of this subsection under paragraph 35 of
10
Schedule 5 (time when period for appealing expires without an appeal being
made or when decision to vary is confirmed on appeal).
This is subject to subsection (6).
(6)
A revocation made in a case within subsection (3)(b) cannot come into force
before such time as would be the operative time for the purposes of subsection
15
(5) under paragraph 35 of Schedule 5 on the assumption that paragraph 35
applied—
(a)
to an appeal against the Part 2 licence under paragraph 31 of the
Schedule as it applies to an appeal under paragraph 32 of the Schedule,
and
20
(b)
to the period for appealing against the Part 2 licence mentioned in
paragraph 33(1) of the Schedule as it applies to the period mentioned in
paragraph 33(2) of the Schedule.
(7)
The power to revoke a licence under this section is exercisable by the authority
either—
25
(a)
on an application made by the licence holder or a relevant person, or
(b)
on the authority’s own initiative.
(8)
In subsection (7) “relevant person” means any person (other than the licence
holder)—
(a)
who has an estate or interest in the house concerned (but is not a tenant
30
under a lease with an unexpired term of 3 years or less), or
(b)
who is a person managing or having control of the house (and does not
fall within paragraph (a)), or
(c)
on whom any restriction or obligation is imposed by the licence in
accordance with section 77(5).
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Procedure and appeals
81
Procedural requirements and appeals against licence decisions
Schedule 5 (which deals with procedural requirements relating to the grant,
refusal, variation or revocation of licences and with appeals against licence
decisions) has effect for the purposes of this Part.
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Housing Bill
Part 3 — Selective licensing of other residential accommodation
55

Enforcement
82
Offences in relation to licensing of houses under this Part
(1)
A person commits an offence if he is a person having control of or managing a
house which is required to be licensed under this Part (see section 72(1)) but is
not so licensed.
5
(2)
A person commits an offence if—
(a)
he is a licence holder or a person on whom restrictions or obligations
under a licence are imposed in accordance with section 77(5), and
(b)
he fails to comply with any condition of the licence.
(3)
In proceedings against a person for an offence under subsection (1) it is a
10
defence that, at the material time—
(a)
a notification had been duly given in respect of the house under section
51(1) or 73(1), or
(b)
an application for a licence had been duly made in respect of the house
under section 74,
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and that notification or application was still effective (see subsection (7)).
(4)
In proceedings against a person for an offence under subsection (1) or (2) it is
a defence that he had a reasonable excuse—
(a)
for having control of or managing the house in the circumstances
mentioned in subsection (1), or
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(b)
for failing to comply with the condition,

as the case may be.
(5)
A person who commits an offence under subsection (1) is liable on summary
conviction to a fine not exceeding £20,000.
(6)
A person who commits an offence under subsection (2) is liable on summary
25
conviction to a fine not exceeding level 5 on the standard scale.
(7)
For the purposes of subsection (3) a notification or application is “effective” at
a particular time if at that time it has not been withdrawn, and either—
(a)
the authority have not decided whether to serve a temporary
exemption notice, or (as the case may be) grant a licence, in pursuance
30
of the notification or application, or
(b)
if they have decided not to do so, it is still possible for the person
concerned to have that decision reversed on an appeal to a county court
or to the Court of Appeal.
83
Further sanctions relating to unlicensed Part 3 houses
35
(1)
Subsection (2) applies to any period during which an offence is being
committed under section 82(1) in respect of a house that is required to be
licensed under this Part but is not so licensed.
(2)
In respect of any such period—
(a)
no rent or licence fee that would (apart from this section) be payable by
40
a person who occupies the house under a tenancy or licence is to be so
payable, and
(b)
no other compensation that would (apart from this section) be payable
for use or occupation of the house is to be so payable.

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Part 3 — Selective licensing of other residential accommodation
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(3)
Where any amount within subsection (2) is paid despite not being payable, the
amount is recoverable by the person by whom it is paid.
(4)
Except to the extent provided by subsection (2), nothing in this Part affects the
validity of any tenancy or licence under which a person occupies a Part 3 house
during a period to which that subsection applies.
5
(5)
Subsection (2) does not affect the operation of any statutory provision relating
to the protection of occupiers of premises that operates by reference to the
amount of rent or other sums payable by them.
Supplementary provisions
84
Meaning of “house” etc.
10
In this Part—
“dwelling” means a building or part of a building occupied or intended to
be occupied as a separate dwelling;
“house” means a building or part of a building consisting of one or more
dwellings;
15
and references to a house include (where the context permits) any yard,
garden, outhouses and appurtenances belonging to, or usually enjoyed with, it
(or any part of it).
85
Index of defined expressions: Part 3
The following table shows where expressions used in this Part are defined or
20
otherwise explained.

Expression
Provision of this Act

Anti-social behaviour
Section 46(5)

Appropriate national authority
Section 196(1)

Category 1 hazard
Section 2(1)

25

Category 2 hazard
Section 2(1)

District of local housing authority
Section 196(6)

Dwelling
Section 84

House
Section 84

Licence and licence holder
Section 72(5)

30

Licence (to occupy premises)
Section 197(9)

Local housing authority
Section 196(2) to (5)

Occupier (and related expressions)
Section 197(6)

Part 3 house
Section 72(5), together

with section 66(2)

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Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation
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Expression
Provision of this Act

Person having control
Section 198(1) and (2)

(and see also section

76(7))

Person having estate or interest
Section 197(8)

5

Person managing
Section 198(3)

Person involved in management
Section 198(5)

Tenant
Section 197(1) to (5)

Part 4
Additional control provisions in relation to residential accommodation
10
Introductory
86
Interim and final management orders: introductory
(1)
Sections 87 to 112 deal with the making by a local housing authority of—
(a)
an interim management order (see section 87), or
(b)
a final management order (see section 97),
15
in respect of an HMO or a Part 3 house.
(2)
Section 88 deals with the making of an interim management order in respect of
a house to which that section applies.
(3)
An interim management order is an order (expiring not more than 12 months
after it is made) which is made for the purpose of securing that the following
20
steps are taken in relation to the house—
(a)
any immediate steps which the authority consider necessary to protect
the health, safety or welfare of persons occupying the house, or persons
occupying or having an estate or interest in any premises in the vicinity,
and
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(b)
any other steps which the authority think appropriate with a view to
the proper management of the house pending the grant of a licence
under Part 2 or 3 in respect of the house or the making of a final
management order in respect of it (or, if appropriate, the revocation of
the interim management order).
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(4)
A final management order is an order (expiring not more than 5 years after it
is made) which is made for the purpose of securing the proper management of
the house on a long-term basis in accordance with a management scheme
contained in the order.
(5)
The appropriate national authority may by regulations provide for—
35
(a)
any provision of this Part, or
(b)
section 198(1) or (2) (in its operation for the purposes of any such
provision),

to have effect in relation to a section 193 HMO with such modifications as are
prescribed by the regulations.
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Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation
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A “section 193 HMO” is an HMO which is a converted block of flats to which
section 193 applies.
(6)
In this Part—

“HMO” means a house in multiple occupation as defined by sections 191
to 195,
5

“Part 3 house” means a house to which Part 3 of this Act applies (see
section 66(2)),
and any reference to an HMO or Part 3 house includes (where the context
permits) a reference to any yard, garden, outhouses and appurtenances
belonging to, or usually enjoyed with, it (or any part of it).
10
(7)
In this Part any reference to “the house”, in relation to an interim or final
management order (other than an order under section 87(7)), is a reference to
the HMO or Part 3 house to which the order relates.
(8)
Subsection (7) has effect subject to sections 87(8) and 97(7) (exclusion of part
occupied by resident landlord).
15
Interim management orders: making and operation of orders
87
Making of interim management orders
(1)
A local housing authority—
(a)
are under a duty to make an interim management order in respect of a
house in a case within subsection (2) or (3), and
20
(b)
have power to make an interim management order in respect of a house
in a case within subsection (4) or (7).
(2)
The authority must make an interim management order in respect of a house
if—
(a)
it is an HMO or a Part 3 house which is required to be licensed under
25
Part 2 or Part 3 (see section 50(1) or 72(1)) but is not so licensed, and
(b)
they consider either—
(i)
that there is no reasonable prospect of its being so licensed in
the near future, or
(ii)
that the health and safety condition is satisfied (see section 89).
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(3)
The authority must make an interim management order in respect of a house
if—
(a)
it is an HMO or a Part 3 house which is required to be licensed under
Part 2 or Part 3 and is so licensed,
(b)
they have revoked the licence concerned but the revocation is not yet in
35
force, and
(c)
they consider either—
(i)
that, on the revocation coming into force, there will be no
reasonable prospect of the house being so licensed in the near
future, or
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(ii)
that, on the revocation coming into force, the health and safety
condition will be satisfied (see section 89).
(4)
The authority may make an interim management order in respect of a house
if—

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Part 4 — Additional control provisions in relation to residential accommodation
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(a)
it is an HMO other than one that is required to be licensed under Part
2, and
(b)
on an application by the authority to a county court, the court by order
authorises them to make such an order;
and the authority may make such an order despite any pending appeal against
5
the order of the county court (but this is without prejudice to any order that
may be made by the court to which any such appeal is brought).
(5)
The court may only authorise the authority to make an interim management
order under subsection (4) if it considers that the health and safety condition is
satisfied (see section 89).
10
(6)
In determining whether to authorise the authority to make an interim
management order in respect of an HMO under subsection (4), the court must
have regard to the extent to which any applicable code of practice approved
under section 171 has been complied with in respect of the HMO in the past.
(7)
The authority may make an interim management order in respect of a house
15
if—
(a)
it is a house to which section 88 (special interim management orders)
applies, and
(b)
on an application by the authority to a county court, the court by order
authorises them to make such an order;
20

and the authority may make such an order despite any pending appeal against
the order of the county court (but this is without prejudice to any order that
may be made by the court to which any such appeal is brought).
Subsections (2) to (6) of section 88 apply in relation to the power of the court
under this subsection.
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(8)
The authority may make an interim management order which is expressed not
to apply to a part of the house that is occupied by a person who has an estate
or interest in the whole of the house.

In relation to such an order, a reference in this Part to “the house” does not
include the part so excluded (unless the context requires otherwise, such as
30
where the reference is to the house as an HMO or a Part 3 house).
(9)
Nothing in this section requires or authorises the making of an interim
management order in respect of a house if—
(a)
a interim management order has been previously made in respect of it,
and
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(b)
the authority have not exercised any relevant function in respect of the
house at any time after the making of the interim management order.
(10)
In subsection (9) “relevant function” means the function of—
(a)
granting a licence under Part 2 or 3,
(b)
serving a temporary exemption notice under section 51 or section 73, or
40
(c)
making a final management order under section 97.
88
Special interim management orders
(1)
This section applies to a house if the whole of it is occupied either—
(a)
under a single tenancy or licence that is not an exempt tenancy or
licence under section 66(3) or (4), or
45