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Housing Bill


Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation

73

 

   

“relevant landlord” means any person who is an immediate landlord of

the house or part of it;

   

“rent or other payments” means rent or other payments—

(a)   

which are payable under leases or licences or in respect of

furniture within section 108(1), and

5

(b)   

which the authority have collected or recovered by virtue of this

Part.

(9)   

In the provisions of this Part relating to varying, revoking or appealing against

decisions relating to a final management order, any reference to such an order

includes (where the context permits) a reference to the management scheme

10

contained in it.

Final management orders: variation and revocation

103     

Variation of final management orders

(1)   

The local housing authority may vary a final management order if they

consider it appropriate to do so.

15

(2)   

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 31 of Schedule 6 (time

when period for appealing expires without an appeal being made or when

decision to vary is confirmed on appeal).

(3)   

The power to vary an order under this section is exercisable by the authority

20

either—

(a)   

on an application made by a relevant person, or

(b)   

on the authority’s own initiative.

(4)   

In this section “relevant person” means—

(a)   

any person who has an estate or interest in the house or part of it (but

25

is not a tenant under a lease with an unexpired term of 3 years or less),

or

(b)   

any other person who (but for the order) would be a person managing

or having control of the house or part of it.

104     

Revocation of final management orders

30

(1)   

The local housing authority may revoke a final management order in the

following cases—

(a)   

if the order was made under section 97(2) or (5) and the house has

ceased to be an HMO to which Part 2 applies or a Part 3 house (as the

case may be);

35

(b)   

if the order was made under section 97(2) or (5) and a licence granted

by them in respect of the house is due to come into force under Part 2

or Part 3 as from the revocation of the order;

(c)   

if a further final management order has been made by them in respect

of the house so as to replace the order;

40

(d)   

if in any other circumstances the authority consider it appropriate to

revoke the order.

(2)   

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 31 of Schedule 6 (time

 

 

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation

74

 

when period for appealing expires without an appeal being made or when

decision to vary is confirmed on appeal).

(3)   

The power to revoke an order under this section is exercisable by the authority

either—

(a)   

on an application made by a relevant person, or

5

(b)   

on the authority’s own initiative.

(4)   

In this section “relevant person” means—

(a)   

any person who has an estate or interest in the house or part of it (but

is not a tenant under a lease with an unexpired term of 3 years or less),

or

10

(b)   

any person who (but for the order) would be a person managing or

having control of the house or part of it.

Interim and final management orders: procedure and appeals

105     

Procedural requirements and appeals

Schedule 6 (which deals with procedural requirements relating to the making,

15

variation or revocation of interim and final management orders and with

appeals against decisions relating to such orders) has effect.

Interim and final management orders: other general provisions

106     

Effect of management orders: occupiers

(1)   

In this section—

20

   

“existing occupier” means a person who, at the time when an interim or

final management order comes into force, is one of the following—

(a)   

(in the case of an HMO or Part 3 house) a person who is

occupying part of the house and does not have an estate or

interest in the whole of the house, or

25

(b)   

(in the case of a Part 3 house) a person who is occupying the

whole of the house; and

   

“new occupier” means a person who is occupying the whole or part of a

house under an agreement in the nature of a lease or licence created

under section 92(3)(c) or 100(3)(c).

30

(2)   

Sections 92 and 100 do not affect the rights or liabilities of an existing occupier

under a lease or licence (whether in writing or not) under which he is

occupying the whole or part of the house at the commencement date.

(3)   

Where the lessor or licensor under such a lease or licence—

(a)   

has an estate or interest in the house, and

35

(b)   

is not an existing occupier,

   

the lease or licence has effect while the order is in force as if the local housing

authority were substituted in it for the lessor or licensor.

(4)   

Such a lease continues to have effect, as far as possible, as a lease despite the

fact that the rights of the local housing authority, as substituted for the lessor,

40

do not amount to an estate in law in the premises.

 

 

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation

75

 

(5)   

The provisions which exclude local authority lettings from the Rent Acts,

namely—

(a)   

sections 14 to 16 of the Rent Act 1977 (c. 42), and

(b)   

those sections as applied by Schedule 2 to the Rent (Agriculture) Act

1976 (c. 80) and section 5(2) to (4) of that Act,

5

   

do not apply to a lease or agreement under which an existing or new occupier

is occupying the whole or part of the house.

(6)   

Section 1(2) of, and paragraph 12 of Part 1 of Schedule 1 to, the Housing Act

1988 (which exclude local authority lettings from Part 1 of that Act) do not

apply to a lease or agreement under which an existing or new occupier is

10

occupying the whole or part of the house.

(7)   

Nothing in section 92(6) or 100(6) or this section has the result that the authority

are to be treated as the legal owner of any premises for the purposes of—

(a)   

section 80 of the Housing Act 1985 (c. 68) (the landlord condition for

secure tenancies); or

15

(b)   

section 124 of the Housing Act 1996 (c. 52) (introductory tenancies).

(8)   

If, immediately before the coming into force of an interim or final management

order, an existing occupier was occupying the whole or part of the house

under—

(a)   

a protected or statutory tenancy within the meaning of the Rent Act

20

1977,

(b)   

a protected or statutory tenancy within the meaning of the Rent

(Agriculture) Act 1976, or

(c)   

an assured tenancy or assured agricultural occupancy within the

meaning of Part 1 of the Housing Act 1988 (c. 50),

25

   

nothing in this Part prevents the continuance of that tenancy or occupancy or

affects the continued operation of any of those Acts in relation to the tenancy

or occupancy after the coming into force of the order.

(9)   

In this section “the commencement date” means the date on which the order

came into force (or, if that order was preceded by one or more orders under this

30

Part, the date when the first order came into force).

107     

Effect of management orders: agreements and legal proceedings

(1)   

An agreement or instrument within subsection (2) has effect, while an interim

or final management order is in force, as if any rights or liabilities of the

immediate landlord under the agreement or instrument were instead rights or

35

liabilities of the local housing authority.

(2)   

An agreement or instrument is within this subsection if—

(a)   

it is effective on the commencement date,

(b)   

one of the parties to it is a person who is the immediate landlord of the

house or a part of the house (“the relevant premises”),

40

(c)   

it relates to the house, whether in connection with—

(i)   

any management activities with respect to the relevant

premises, or

(ii)   

the provision of any services or facilities for persons occupying

those premises,

45

   

or otherwise,

 

 

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation

76

 

(d)   

it is specified for the purposes of this subsection in the order or falls

within a description of agreements or instruments so specified, and

(e)   

the authority serve a notice in writing on all the parties to it stating that

subsection (1) is to apply to it.

(3)   

An agreement or instrument is not within subsection (2) if—

5

(a)   

it is a lease within section 92(5) or 100(5), or

(b)   

it relates to any disposition by the immediate landlord which is not

precluded by section 93(2) or 101(2), or

(c)   

it is within section 106(3).

(4)   

Proceedings in respect of any cause of action within subsection (5) may, while

10

an interim or final management order is in force, be instituted or continued by

or against the local housing authority instead of by or against the immediate

landlord.

(5)   

A cause of action is within this subsection if—

(a)   

it is a cause of action (of any nature) which accrued to or against the

15

immediate landlord of the house or a part of the house before the

commencement date,

(b)   

it relates to the house as mentioned in subsection (2)(c),

(c)   

it is specified for the purposes of this subsection in the order or falls

within a description of causes of action so specified, and

20

(d)   

the authority serve a notice in writing on all interested parties stating

that subsection (4) is to apply to it.

(6)   

If, by virtue of this section, the authority become subject to any liability to pay

damages in respect of anything done (or omitted to be done) before the

commencement date by or on behalf of the immediate landlord of the house or

25

a part of it, the immediate landlord is liable to reimburse to the authority an

amount equal to the amount of the damages paid by them.

(7)   

In this section—

   

“agreement” includes arrangement;

   

“the commencement date” means the date on which the order comes into

30

force (or, if that order was preceded by one or more orders under this

Part, the date when the first order came into force);

   

“management activities” includes repair, maintenance, improvement and

insurance.

108     

Effect of management orders: furniture

35

(1)   

Subsection (2) applies where, on the date on which an interim or final

management order comes into force, there is furniture in the house which a

person occupying the house has the right to use in consideration of periodical

payments to a person who is an immediate landlord of the house or a part of it

(whether the payments are included in the rent payable by the occupier or not).

40

(2)   

The right to possession of the furniture against all persons other than the

occupier vests in the local housing authority on that date and remains vested

in the authority while the order is in force.

(3)   

The local housing authority may renounce the right to possession of the

furniture conferred by subsection (2) if—

45

 

 

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation

77

 

(a)   

an application in writing has been made to them for the purpose by the

person owning the furniture, and

(b)   

they renounce the right by notice in writing served on that person not

less than two weeks before the notice takes effect.

(4)   

If the authority’s right to possession of furniture conferred by subsection (2) is

5

a right exercisable against more than one person interested in the furniture, any

of those persons may apply to a county court for an adjustment of their

respective rights and liabilities as regards the furniture.

(5)   

On such an application the county court may make an order for such an

adjustment of rights and liabilities, either unconditionally or subject to such

10

terms and conditions, as it considers appropriate.

(6)   

The terms and conditions may, in particular, include terms and conditions

about the payment of money by a party to the proceedings to another party to

the proceedings by way of compensation, damages or otherwise.

(7)   

In this section “furniture” includes fittings and other articles.

15

109     

Management orders: power to supply furniture

(1)   

The local housing authority may supply the house to which an interim or final

management order relates with such furniture as they consider to be required.

(2)   

For the purposes of section 94 or a management scheme under section 102, any

expenditure incurred by the authority under this section constitutes

20

expenditure incurred by the authority in connection with performing their

duty under section 91(3) or 99(2).

(3)   

In this section “furniture” includes fittings and other articles.

110     

Termination of management orders: financial arrangements

(1)   

This section applies where—

25

(a)   

an interim or final management order ceases to have effect for any

reason, and

(b)   

the order is not immediately followed by a further order under this

Part.

(2)   

If, on the termination date for an interim management order, the total amount

30

of rent or other payments collected or recovered as mentioned in section 94(3)

exceeds the total amount of the authority’s relevant expenditure, the local

housing authority must pay the balance—

(a)   

to such relevant landlord, or

(b)   

to such relevant landlords in such proportions,

35

   

as they consider appropriate; and the balance is to be paid by them as soon as

practicable after the termination date.

This subsection does not apply if the management scheme contained in a final

management order so provides.

(3)   

If, on the termination date for an interim management order, the total amount

40

of rent or other payments collected or recovered as mentioned in section 94(3)

is less than the total amount of the authority’s relevant expenditure, the

difference is recoverable by the authority—

(a)   

from such relevant landlord, or

 

 

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation

78

 

(b)   

from such relevant landlords in such proportions,

   

as they consider appropriate.

(4)   

If, on the termination date for a final management order, any amount is

payable to any relevant landlord in accordance with the management scheme

under section 102, that amount must be paid to that person by the local housing

5

authority in the manner provided by the scheme.

(5)   

If, on the termination date for a final management order, any amount is

payable to the local housing authority in accordance with the management

scheme, that amount is recoverable by local housing authority—

(a)   

from such relevant landlord, or

10

(b)   

from such relevant landlords in such proportions,

   

as is provided by the scheme.

(6)   

Any sum recoverable by the authority under subsection (3) or (5) is, until

recovered, a charge on the house.

(7)   

For the purpose of enforcing the charge the authority have the same powers

15

and remedies under the Law of Property Act 1925 (c. 20) and otherwise as if

they were mortgagees by deed having powers of sale and lease, of accepting

surrenders of leases and of appointing a receiver.

(8)   

The power of appointing a receiver is exercisable at any time after the end of

the period of one month beginning with the date on which the charge takes

20

effect.

(9)   

If the order is to be followed by a licence granted under Part 2 or 3 in respect of

the house, the conditions contained in the licence may include a condition

requiring the licence holder—

(a)   

to repay to the authority any amount recoverable by them under

25

subsection (3) or (5), and

(b)   

to do so in such instalments as are specified in the licence.

(10)   

In this section—

   

“relevant expenditure” has the same meaning as in section 94;

   

“relevant landlord” means a person who was the immediate landlord of

30

the house or part of it immediately before the termination date or his

successor in title for the time being;

   

“rent or other payments” means rents or other payments payable under

leases or licences or in respect of furniture within section 108(1);

   

“the termination date” means the date on which the order ceases to have

35

effect.

111     

Termination of management orders: leases, agreements and proceedings

(1)   

This section applies where—

(a)   

an interim or final management order ceases to have effect for any

reason, and

40

(b)   

the order is not immediately followed by a further order under this

Part.

(2)   

As from the termination date—

(a)   

a lease or licence in which the local housing authority was substituted

for another party by virtue of section 106(3) has effect with the

45

 

 

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation

79

 

substitution of the original party, or his successor in title, for the

authority; and

(b)   

an agreement in the nature of a lease or licence created by the authority

under section 92 or 100 has effect with the substitution of the relevant

landlord for the authority.

5

(3)   

If the relevant landlord is a lessee, nothing in a superior lease imposes liability

on him or any superior lessee in respect of anything done in pursuance of the

terms of an agreement to which subsection (2)(b) applies.

(4)   

If the condition in subsection (5) is met, any other agreement entered into by

the authority in the performance of their duties under section 91(1) to (3) or

10

99(2) in respect of the house has effect, as from the termination date, with the

substitution of the relevant landlord for the authority.

(5)   

The condition is that the authority serve a notice on the other party or parties

to the agreement stating that subsection (4) applies to the agreement.

(6)   

If the condition in subsection (7) is met—

15

(a)   

any rights or liabilities that were rights or liabilities of the authority

immediately before that date by virtue of any provision of this Part or

under any agreement to which subsection (4) applies are rights or

liabilities of the relevant landlord instead, and

(b)   

any proceedings instituted or continued by or against the authority by

20

virtue of any such provision or agreement may be continued by or

against the relevant landlord instead,

as from the termination date.

(7)   

The condition is that the authority serve a notice on all interested parties

stating that subsection (4) applies to the rights or liabilities or (as the case may

25

be) the proceedings.

(8)   

If by virtue of this section a relevant landlord becomes subject to any liability

to pay damages in respect of anything done (or omitted to be done) before the

termination date by or on behalf of the authority, the authority are liable to

reimburse to the relevant landlord an amount equal to the amount of the

30

damages paid by him.

(9)   

Where two or more persons are relevant landlords in relation to different parts

of the house any reference in this section to “the relevant landlord” is to be

taken to refer to such one or more of them as is determined by agreement

between them or (in default of agreement) by the county court on an

35

application made by any of them.

(10)   

In this section—

(a)   

“agreement” includes arrangement;

(b)   

“relevant landlord” means a person who was the immediate landlord

of the house immediately before the termination date or his successor

40

in title for the time being;

(c)   

“the termination date” means the date on which the order ceases to

have effect.

 

 

 
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