Housing Bill

House of Commons

Session 2003 - 04
Internet Publications
Other Bills before Parliament

Housing Bill

Housing Bill
Part 2 — Licensing of houses in multiple occupation
48

Enforcement
71
Offences in relation to licensing of HMOs
(1)
A person commits an offence if he is a person having control of or managing
an HMO which is required to be licensed under this Part (see section 60(1)) but
is not so licensed.
5
(2)
A person commits an offence if—
(a)
he is a person having control of or managing an HMO which is licensed
under this Part,
(b)
he permits another person to occupy the house, and
(c)
the other person’s occupation results in the house being occupied by
10
more households or persons than is authorised by the licence.
(3)
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 66(5), and
(b)
he fails to comply with any condition of the licence.
15
(4)
In proceedings against a person for an offence under subsection (1) it is a
defence that, at the material time—
(a)
a notification had been duly given in respect of the house under section
61(1), or
(b)
an application for a licence had been duly made in respect of the house
20
under section 62,

and that notification or application was still effective (see subsection (8)).
(5)
In proceedings against a person for an offence under subsection (1), (2) or (3) it
is a defence that he had a reasonable excuse—
(a)
for having control of or managing the house in the circumstances
25
mentioned in subsection (1), or
(b)
for permitting the person to occupy the house, or
(c)
for failing to comply with the condition,

as the case may be.
(6)
A person who commits an offence under subsection (1) or (2) is liable on
30
summary conviction to a fine not exceeding £20,000.
(7)
A person who commits an offence under subsection (3) is liable on summary
conviction to a fine not exceeding level 5 on the standard scale.
(8)
For the purposes of subsection (4) a notification or application is “effective” at
a particular time if at that time it has not been withdrawn, and either—
35
(a)
the authority have not decided whether to serve a temporary
exemption notice, or (as the case may be) grant a licence, in pursuance
of the notification or application, or
(b)
if they have decided not to do so, one of the conditions set out in
subsection (9) is met.
40
(9)
The conditions are—
(a)
that the period for appealing against the decision of the authority not to
serve or grant such a notice or licence (or against any relevant decision
of a residential property tribunal) has not expired, or

Housing Bill
Part 2 — Licensing of houses in multiple occupation
49

(b)
that an appeal has been brought against the authority’s decision (or
against any relevant decision of such a tribunal) and the appeal has not
been determined or withdrawn.
(10)
In subsection (9) “relevant decision” means a decision which is given on an
appeal to the tribunal and confirms the authority’s decision (with or without
5
variation).
72
Further sanctions relating to unlicensed HMOs
(1)
Subsection (2) applies to any period during which an offence is being
committed under section 71(1) in respect of an HMO that is required to be
licensed under this Part but is not so licensed.
10
(2)
In respect of any such period—
(a)
no rent or licence fee that would (apart from this section) be payable by
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
15
for use or occupation of the house is to be so payable.
(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 an HMO
20
during a period to which that subsection applies.
(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
25
73
Transitional arrangements relating to introduction and termination of
licensing
(1)
Subsection (2) applies where—
(a)
an order under section 54(3) which prescribes a particular description
of HMOs comes into force; or
30
(b)
a designation under section 55 comes into force in relation to HMOs of
a particular description.
(2)
This Part applies in relation to the occupation by persons or households of such
HMOs on or after the coming into force of the order or designation even if their
occupation began before, or in pursuance of a contract made before, it came
35
into force.
This is subject to subsections (3) to (5).
(3)
Subsection (4) applies where—
(a)
an HMO which is licensed under this Part, or a part of such an HMO,
is occupied by more households or persons than the number permitted
40
by the licence; and

Housing Bill
Part 2 — Licensing of houses in multiple occupation
50

(b)
the occupation of all or any of those households or persons began
before, or in pursuance of a contract made before, the licence came into
force.
(4)
In proceedings against a person for an offence under section 71(2) it is a defence
that at the material time he was taking all reasonable steps to try to reduce the
5
number of households or persons occupying the house to the number
permitted by the licence.
(5)
Subsection (4) does not apply if the licence came into force immediately after a
previous licence in respect of the same HMO unless the occupation in question
began before, or in pursuance of a contract made before, the coming into force
10
of the original licence.
(6)
An order under section 226 may make provision as regards the licensing under
this Part of HMOs—
(a)
which are registered immediately before the appointed day under a
scheme to which section 347 (schemes containing control provisions) or
15
348B (schemes containing special control provisions) of the Housing
Act 1985 (c. 68) applies, or
(b)
in respect of which applications for registration under such a scheme
are then pending.
(7)
In subsection (6) “the appointed day” means the day appointed for the coming
20
into force of section 60.
74
Meaning of “HMO”
In this Part—
(a)
“HMO” means a house in multiple occupation as defined by sections
213 to 217, and
25
(b)
references to an HMO include (where the context permits) any yard,
garden, outhouses and appurtenances belonging to, or usually enjoyed
with, it (or any part of it).
75
Index of defined expressions: Part 2
The following table shows where expressions used in this Part are defined or
30
otherwise explained.

Expression
Provision of this Act

Appropriate national authority
Section 218(1)

Category 1 hazard
Section 2(1)

Category 2 hazard
Section 2(1)

35

District of local housing authority
Section 218(6)

HMO
Section 74

HMO to which this Part applies
Section 54(2)

Licence and licence holder
Section 60(6)

Housing Bill
Part 3 — Selective licensing of other residential accommodation
51

Expression
Provision of this Act

Licence (to occupy premises)
Section 219(9)

Local housing authority
Section 218(2) to (5)

Occupier (and related expressions)
Section 219(6)

Person having control
Section 220(1) and (2)

5

(and see also section

65(7))

Person having estate or interest
Section 219(8)

Person managing
Section 220(3)

Person involved in management
Section 220(5)

10

Residential property tribunal
Section 190

Tenant
Section 219(1) to (5).

Part 3
Selective licensing of other residential accommodation
Introductory
15
76
Licensing of houses to which this Part applies
(1)
This Part provides for houses to be licensed by local housing authorities
where—
(a)
they are houses to which this Part applies (see subsection (2)), and
(b)
they are required to be licensed under this Part (see section 82(1)).
20
(2)
This Part applies to a house if—
(a)
it is in an area that is for the time being designated under section 77 as
subject to selective licensing, and
(b)
the whole of it is occupied either—
(i)
under a single tenancy or licence that is not an exempt tenancy
25
or licence under subsection (3) or (4), or
(ii)
under two or more tenancies or licences in respect of different
dwellings contained in it, none of which is an exempt tenancy
or licence under subsection (3) or (4).
(3)
A tenancy or licence is an exempt tenancy or licence if it is granted by a body
30
which is registered as a social landlord under Part 1 of the Housing Act 1996
(c. 52).
(4)
In addition, the appropriate national authority may by order provide for
descriptions of tenancies or licences specified in the order to be exempt
tenancies or licences.
35
(5)
Every local housing authority have the following general duties—

Housing Bill
Part 3 — Selective licensing of other residential accommodation
52

(a)
to make such arrangements as are necessary to secure the effective
implementation in their district of the licensing regime provided for by
this Part; and
(b)
to ensure that all applications for licences and other issues falling to be
determined by them under this Part are determined within a
5
reasonable time.
Designation of selective licensing areas
77
Designation of selective licensing areas
(1)
A local housing authority may designate either—
(a)
the area of their district, or
10
(b)
an area in their district,

as subject to selective licensing, if the requirements of subsections (2) and (9)
are met.
(2)
The authority must consider that—
(a)
the first or second set of general conditions mentioned in subsection (3)
15
or (6), or
(b)
any conditions specified in an order under subsection (7) as an
additional set of conditions,

are satisfied in relation to the area.
(3)
The first set of general conditions are—
20
(a)
that the area is, or is likely to become, an area of low housing demand;
and
(b)
that making a designation will, when combined with other measures
taken in the area by the local housing authority, or by other persons
together with the local housing authority, contribute to the
25
improvement of the social or economic conditions in the area.
(4)
In deciding whether an area is, or is likely to become, an area of low housing
demand a local housing authority must take into account (among other
matters)—
(a)
the value of residential premises in the area, in comparison to the value
30
of similar premises in other areas which the authority consider to be
comparable (whether in terms of types of housing, local amenities,
availability of transport or otherwise);
(b)
the turnover of occupiers of residential premises;
(c)
the number of residential premises which are available to buy or rent
35
and the length of time for which they remain unoccupied.
(5)
The appropriate national authority may by order amend subsection (4) by
adding new matters to those for the time being mentioned in that subsection.
(6)
The second set of general conditions are—
(a)
that the area is experiencing a significant and persistent problem
40
caused by anti-social behaviour;
(b)
that some or all of the private sector landlords who have let premises in
the area (whether under leases or licences) are failing to take action to
combat the problem that it would be appropriate for them to take; and
(c)
that making a designation will, when combined with other measures
45
taken in the area by the local housing authority, or by other persons

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

together with the local housing authority, lead to a reduction in, or the
elimination of, the problem.

“Private sector landlord” does not include a registered social landlord within
the meaning of Part 1 of the Housing Act 1996 (c. 52).
(7)
The appropriate national authority may by order provide for any conditions
5
specified in the order to apply as an additional set of conditions for the
purposes of subsection (2).
(8)
The conditions that may be specified include, in particular, conditions
intended to permit a local housing authority to make a designation for the
purpose of dealing with one or more specified problems affecting persons
10
occupying Part 3 houses in the area.
“Specified” means specified in an order under subsection (7).
(9)
Before making a designation the local housing authority must—
(a)
take reasonable steps to consult persons who are likely to be affected by
the designation; and
15
(b)
consider any representations made in accordance with the consultation
and not withdrawn.
(10)
Section 78 applies for the purposes of this section.
78
Designations under section 77: further considerations
(1)
This section applies to the power of a local housing authority to make
20
designations under section 77.
(2)
The authority must ensure that any exercise of the power is consistent with the
authority’s overall housing strategy.
(3)
The authority must also seek to adopt a co-ordinated approach in connection
with dealing with homelessness, empty properties and anti-social behaviour,
25
both—
(a)
as regards combining licensing under this Part with other courses of
action available to them, and
(b)
as regards combining such licensing with measures taken by other
persons.
30
(4)
The authority must not make a particular designation under section 77
unless—
(a)
they have considered whether there are any other courses of action
available to them (of whatever nature) that might provide an effective
method of achieving the objective or objectives that the designation
35
would be intended to achieve, and
(b)
they consider that making the designation will significantly assist them
to achieve the objective or objectives (whether or not they take any
other course of action as well).
79
Designation needs confirmation or general approval to be effective
40
(1)
A designation of an area as subject to selective licensing cannot come into force
unless—
(a)
it has been confirmed by the appropriate national authority; or

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

(b)
it falls within a description of designations in relation to which that
authority has given a general approval in accordance with subsection
(6).
(2)
The appropriate national authority may either confirm, or refuse to confirm, a
designation as it considers appropriate.
5
(3)
If the appropriate national authority confirms a designation, the designation
comes into force on a date specified for this purpose by that authority.
(4)
That date must be no earlier than three months after the date on which the
designation is confirmed.
(5)
A general approval may be given in relation to a description of designations
10
framed by reference to any matters or circumstances.
(6)
Accordingly a general approval may (in particular) be given in relation to—
(a)
designations made by a specified local housing authority;
(b)
designations made by a local housing authority falling within a
specified description of such authorities;
15
(c)
designations relating to Part 3 houses of a specified description.
“Specified” means specified by the appropriate national authority in the
approval.
(7)
If, by virtue of a general approval, a designation does not need to be confirmed
before it comes into force, the designation comes into force on the date
20
specified for this purpose in the designation.
(8)
That date must be no earlier than three months after the date on which the
designation is made.
(9)
Where a designation comes into force, this Part applies in relation to the
occupation by persons of houses in the area on or after the coming into force of
25
the designation even if their occupation began before, or in pursuance of a
contract made before, it came into force.
80
Notification requirements relating to designations
(1)
This section applies to a designation—
(a)
when it is confirmed under section 79, or
30
(b)
(if it is not required to be so confirmed) when it is made by the local
housing authority.
(2)
As soon as the designation is confirmed or made, the authority must publish in
the prescribed manner a notice stating—
(a)
that the designation has been made,
35
(b)
whether or not the designation was required to be confirmed and either
that it has been confirmed or that a general approval under section 79
applied to it (giving details of the approval in question),
(c)
the date on which the designation is to come into force, and
(d)
any other information which may be prescribed.
40
(3)
After publication of a notice under subsection (1), and for as long as the
designation is in force, the local housing authority must make available to the
public in accordance with any prescribed requirements—
(a)
copies of the designation, and