Housing Bill

House of Commons

Session 2003 - 04
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Housing Bill

Housing Bill
Schedule 3 — Improvement notices: enforcement action by local housing authorities
Part 2 — Powers to take action without agreement
177

Part 2
Powers to take action without agreement
Power to take action without agreement
3     (1)
The local housing authority may themselves take the action required to be
taken in relation to a hazard by an improvement notice if sub-paragraph (2)
5
or (3) applies.
      (2)
This sub-paragraph applies if the notice is not complied with in relation to
that hazard.
      (3)
This sub-paragraph applies if, before the end of the period which under
section 29(2) is appropriate for completion of the action specified in the
10
notice in relation to the hazard, they consider that reasonable progress is not
being made towards compliance with the notice in relation to the hazard.
      (4)
Any person authorised in writing by the authority may enter any part of the
specified premises for the purposes of the taking of any action which the
authority are authorised to take under this paragraph.
15
      (5)
The right of entry conferred by sub-paragraph (4) may be exercised at any
reasonable time.
      (6)
Any reference in this Part of this Schedule (of whatever nature) to a local
housing authority entering any premises under this paragraph is a reference
to their doing so in accordance with sub-paragraph (4).
20
      (7)
In this paragraph “improvement notice” means an improvement notice
which has become operative under Chapter 2 of Part 1 of this Act.
Notice requirements in relation to taking action without agreement
4     (1)
The local housing authority must serve a notice under this paragraph before
they enter any premises under paragraph 3 for the purpose of taking action
25
in relation to a hazard.
      (2)
The notice must identify the improvement notice to which it relates and
state—
(a)
the premises and hazard concerned;
(b)
that the authority intend to enter the premises;
30
(c)
the action which the authority intend to take on the premises; and
(d)
the power under which the authority intend to enter the premises
and take the action.
      (3)
The notice must be served on the person on whom the improvement notice
was served.
35
      (4)
A copy of the notice may also be served on any owner of the premises.
Obstruction of action taken without agreement
5     (1)
If, at any relevant time—
(a)
the person on whom the notice under paragraph 4 was served is on
the premises for the purpose of carrying out any works, or
40
(b)
any workman employed by that person, or by any contractor
employed by that person, is on the premises for such a purpose,

that person is to be taken to have committed an offence under section 201(1).

Housing Bill
Schedule 3 — Improvement notices: enforcement action by local housing authorities
Part 3 — Recovery of certain expenses
178

      (2)
In proceedings for such an offence it is a defence that there was an urgent
necessity to carry out the works in order to prevent danger to persons
occupying the premises.
      (3)
In sub-paragraph (1) “relevant time” means any time—
(a)
after the end of the period of 7 days beginning with the date of
5
service of the notice under paragraph 4, and
(b)
when any workman or contractor employed by the local housing
authority is taking action on the premises which has been mentioned
in the notice in accordance with paragraph 4(2)(c).
Expenses in relation to taking action without agreement
10
6     (1)
Part 3 of this Schedule applies with respect to the recovery by the local
housing authority of expenses incurred by them in taking action under
paragraph 3.
      (2)
Sub-paragraph (3) applies where, after a local housing authority have given
notice under paragraph 4 of their intention to enter premises and take action,
15
the action is in fact taken by the person on whom the improvement notice is
served.
      (3)
Any administrative and other expenses incurred by the authority with a
view to themselves taking the action are to be treated for the purposes of
Part 3 of this Schedule as expenses incurred by them in taking action under
20
paragraph 3.
Part 3
Recovery of certain expenses
Introductory
7
This Part of this Schedule applies for the purpose of enabling a local housing
25
authority to recover expenses reasonably incurred by them in taking action
under paragraph 3.
Recovery of expenses
8     (1)
The expenses are recoverable by the local housing authority from the person
on whom the improvement notice was served (“the relevant person”).
30
      (2)
Where the relevant person receives the rent of the premises as agent or
trustee for another person, the expenses are also recoverable by the local
housing authority from the other person, or partly from him and partly from
the relevant person.
      (3)
Sub-paragraph (4) applies where the relevant person proves in connection
35
with a demand under paragraph 9—
(a)
that sub-paragraph (2) applies, and
(b)
that he has not, and since the date of the service on him of the
demand has not had, in his hands on behalf of the other person
sufficient money to discharge the whole demand of the local housing
40
authority.
      (4)
The liability of the relevant person is limited to the total amount of the
money which he has, or has had, in his hands as mentioned in sub-
paragraph (3)(b).

Housing Bill
Schedule 3 — Improvement notices: enforcement action by local housing authorities
Part 3 — Recovery of certain expenses
179

      (5)
Expenses are not recoverable under this paragraph so far as they are, by any
direction given by a residential property tribunal on an appeal to the
tribunal under paragraph 11, recoverable under an order of the tribunal.
Service of demand
9     (1)
A demand for expenses recoverable under paragraph 8, together with
5
interest in accordance with paragraph 10, must be served on each person
from whom the local housing authority are seeking to recover them.
      (2)
If no appeal is brought, the demand becomes operative at the end of the
period of 21 days beginning with the date of service of the demand.
      (3)
A demand which becomes operative under sub-paragraph (2) is final and
10
conclusive as to matters which could have been raised on an appeal.
      (4)
Paragraph 11 deals with appeals against demands.
Interest
10
Expenses in respect of which a demand is served carry interest, at such
reasonable rate as the local housing authority may determine, from the date
15
of service until payment of all sums due under the demand.
Appeals
11    (1)
A person on whom a demand for the recovery of expenses has been served
may appeal to a residential property tribunal against the demand.
      (2)
An appeal must be made within the period of 21 days beginning with the
20
date of service of the demand or copy of it under paragraph 9.
      (3)
A residential property tribunal may allow an appeal to be made to it after the
end of the period mentioned in sub-paragraph (2) if it is satisfied that there
is a good reason for the failure to appeal before the end of that period (and
for any delay since then in applying for permission to appeal out of time).
25
      (4)
Where the demand relates to action taken by virtue of paragraph 3(3), an
appeal may be brought on the ground that reasonable progress was being
made towards compliance with the improvement notice when the local
housing authority gave notice under paragraph 4 of their intention to enter
and take the action.
30

This does not affect the generality of sub-paragraph (1).
      (5)
The tribunal may, on an appeal, make such order confirming, quashing or
varying the demand as it considers appropriate.
      (6)
A demand against which an appeal is brought becomes operative as
follows—
35
(a)
if a decision is given on the appeal which confirms the demand and
the period within which an appeal to the Lands Tribunal may be
brought expires without such an appeal having been brought, the
demand becomes operative at end of that period;
(b)
if an appeal to the Lands Tribunal is brought and a decision is given
40
on the appeal which confirms the demand, the demand becomes
operative at the time of that decision.
      (7)
For the purposes of sub-paragraph (6)—
(a)
the withdrawal of an appeal has the same effect as a decision which
confirms the demand, and
45

Housing Bill
Schedule 3 — Improvement notices: enforcement action by local housing authorities
Part 3 — Recovery of certain expenses
180

(b)
references to a decision which confirms the demand are to a decision
which confirms it with or without variation.
      (8)
No question may be raised on appeal under this paragraph which might
have been raised on an appeal against the improvement notice.
Expenses and interest recoverable from occupiers
5
12    (1)
Where a demand becomes operative by virtue of paragraph 9(2) or 11(5), the
local housing authority may serve a recovery notice on any person—
(a)
who occupies the premises concerned, or part of those premises, as
the tenant or licensee of the person on whom the demand was served
under paragraph 9(1); and
10
(b)
who, by virtue of his tenancy or licence, pays rent or any sum in the
nature of rent to the person on whom the demand was served.
      (2)
A recovery notice is a notice—
(a)
stating the amount of expenses recoverable by the local housing
authority; and
15
(b)
requiring all future payments by the tenant or licensee of rent or
sums in the nature of rent (whether already accrued due or not) to be
made direct to the authority until the expenses recoverable by the
authority, together with any accrued interest on them, have been
duly paid.
20
      (3)
In the case of a demand which was served on any person as agent or trustee
for another person (“the principal”), sub-paragraph (1) has effect as if the
references in paragraphs (a) and (b) to the person on whom the demand was
served were references to that person or the principal.
      (4)
The effect of a recovery notice, once served under sub-paragraph (1), is to
25
transfer to the local housing authority the right to recover, receive and give
a discharge for the rent or sums in the nature of rent.
      (5)
This is subject to any direction to the contrary contained in a further notice
served by the local housing authority on the tenant or licensee.
      (6)
In addition, the right to recover, receive and give a discharge for any rent or
30
sums in the nature of rent is postponed to any right in respect of that rent or
those sums which may at any time be vested in a superior landlord by virtue
of a notice under section 6 of the Law of Distress Amendment Act 1908
(c. 53).
Expenses and interest to be a charge on the premises
35
13    (1)
Until recovered, the expenses recoverable by the local housing authority,
together with any accrued interest on them, are a charge on the premises to
which the improvement notice related.
      (2)
The charge takes effect when the demand for the expenses and interest
becomes operative by virtue of paragraph 9(2) or 11(5).
40
      (3)
For the purpose of enforcing the charge, the local housing authority have the
same powers 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.
      (4)
The power of appointing a receiver is exercisable at any time after the end of
45
one month beginning with the date when the charge takes effect.

Housing Bill
Schedule 4 — Licences under Parts 2 and 3: mandatory conditions
181

Recovery of expenses and interest from other persons profiting from taking of action
14    (1)
Sub-paragraph (2) applies if, on an application to a residential property
tribunal, the local housing authority satisfy the tribunal that—
(a)
the expenses and interest have not been and are unlikely to be
recovered; and
5
(b)
a person is profiting by the taking of the action under paragraph 3 in
respect of which the expenses were incurred in that he is obtaining
rents or other payments which would not have been obtainable if the
number of persons living in the premises was limited to that
appropriate for the premises in their state before the action was
10
taken.
      (2)
The tribunal may, if satisfied that the person concerned has had proper
notice of the application, order him to make such payments to the local
housing authority as the tribunal considers to be just.
Schedule 4
15
Sections 66 and 87

Licences under Parts 2 and 3: mandatory conditions
Conditions to be included in licences under Part 2 or 3
1     (1)
A licence under Part 2 or 3 must include the following conditions.
      (2)
Conditions requiring the licence holder, if gas is supplied to the house, to
produce to the local housing authority annually for their inspection a gas
20
safety certificate obtained in respect of the house within the last 12 months.
      (3)
Conditions requiring the licence holder—
(a)
to keep electrical appliances and furniture made available by him in
the house in a safe condition;
(b)
to supply the authority, on demand, with a declaration by him as to
25
the safety of such appliances and furniture.
      (4)
Conditions requiring the licence holder—
(a)
to keep smoke alarms in the house in proper working order;
(b)
to supply the authority, on demand, with a declaration by him as to
the condition and positioning of such alarms.
30
      (5)
Conditions requiring the licence holder to supply to the occupier of the
house a written statement of the terms on which they occupy it.
Additional conditions to be included in licences under Part 3
2
A licence under Part 3 must include conditions requiring the licence holder
to demand references from persons who wish to occupy the house.
35
Power to prescribe conditions
3
The appropriate national authority may by regulations amend this Schedule
so as to alter (by the addition or removal of conditions) the conditions which
must be included—
(a)
in a licence under Part 2 or 3, or
40
(b)
only in a licence under one of those Parts.

Housing Bill
Schedule 5 — Licences under Parts 2 and 3: procedure and appeals
Part 1 — Procedure relating to grant or refusal of licences
182

Interpretation
4
In this Schedule “the house” means the HMO or Part 3 house in respect of
which the licence is granted.
Schedule 5
Sections 70 and 91

Licences under Parts 2 and 3: procedure and appeals
5
Part 1
Procedure relating to grant or refusal of licences
Requirements before grant of licence
1
Before granting a licence, the local housing authority must—
(a)
serve a notice under this paragraph, together with a copy of the
10
proposed licence, on the applicant for the licence and each relevant
person, and
(b)
consider any representations made in accordance with the notice and
not withdrawn.
2
The notice under paragraph 1 must state that the authority are proposing to
15
grant the licence and set out—
(a)
the reasons for granting the licence,
(b)
the main terms of the licence, and
(c)
the end of the consultation period.
3     (1)
This paragraph applies if, having considered representations made in
20
accordance with a notice under paragraph 1 or this paragraph, the local
housing authority propose to grant a licence with modifications.
      (2)
Before granting the licence the authority must—
(a)
serve a notice under this paragraph on the applicant for the licence
and each relevant person, and
25
(b)
consider any representations made in accordance with the notice and
not withdrawn.
4
The notice under paragraph 3 must set out—
(a)
the proposed modifications,
(b)
the reasons for them, and
30
(c)
the end of the consultation period.
Requirements before refusal to grant licence
5
Before refusing to grant a licence, the local housing authority must—
(a)
serve a notice under this paragraph on the applicant for the licence
and each relevant person, and
35
(b)
consider any representations made in accordance with the notice and
not withdrawn.
6
The notice under paragraph 5 must state that the local housing authority are
proposing to refuse to grant the licence and set out—

Housing Bill
Schedule 5 — Licences under Parts 2 and 3: procedure and appeals
Part 1 — Procedure relating to grant or refusal of licences
183

(a)
the reasons for refusing to grant the licence, and
(b)
the end of the consultation period.
Requirements following grant or refusal of licence
7     (1)
This paragraph applies where the local housing authority decide to grant a
licence.
5
      (2)
The local housing authority must serve on the applicant for the licence (and,
if different, the licence holder) and each relevant person—
(a)
a copy of the licence, and
(b)
a notice setting out—
(i)
the reasons for deciding to grant the licence and the date on
10
which the decision was made,
(ii)
the right of appeal against the decision under Part 3 of this
Schedule, and
(iii)
the period within which an appeal may be made (see
paragraph 33(1)).
15
      (3)
The documents required to be served under sub-paragraph (2) must be
served within the period of seven days beginning with the day on which the
decision is made.
8     (1)
This paragraph applies where the local housing authority refuse to grant a
licence.
20
      (2)
The local housing authority must serve on the applicant for the licence and
each relevant person a notice setting out—
(a)
the authority’s decision not to grant the licence,
(b)
the reasons for the decision and the date on which it was made,
(c)
the right of appeal against the decision under Part 3 of this Schedule,
25
and
(d)
the period within which an appeal may be made (see paragraph
33(1)).
      (3)
The notices required to be served under sub-paragraph (2) must be served
within the period of seven days beginning with the day on which the
30
decision is made.
Exceptions from requirements in relation to grant or refusal of licences
9
The requirements of paragraph 3 (and those of paragraph 1) do not apply if
the local housing authority—
(a)
have already served a notice under paragraph 1 but not paragraph 3
35
in relation to the proposed licence, and
(b)
consider that the modifications which are now being proposed are
not material in any respect.
10
The requirements of paragraph 3 (and those of paragraph 1) do not apply if
the local housing authority—
40
(a)
have already served notices under paragraphs 1 and 3 in relation to
the matter concerned, and
(b)
consider that the further modifications which are now being
proposed do not differ in any material respect from the
modifications in relation to which a notice was last served under
45
paragraph 3.