Housing Bill

House of Commons

Session 2003 - 04
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Housing Bill

Housing Bill
Part 3 — Selective licensing of other residential accommodation
60

88
Licences: general requirements and duration
(1)
A licence may not relate to more than one Part 3 house.
(2)
A licence may be granted before the time when it is required by virtue of this
Part but, if so, the licence cannot come into force until that time.
(3)
A licence—
5
(a)
comes into force at the time that is specified in or determined under the
licence for this purpose, and
(b)
unless previously terminated by subsection (7) or revoked under
section 90, continues in force for the period that is so specified or
determined.
10
(4)
That period must not end more than 5 years after—
(a)
the date on which the licence was granted, or
(b)
if the licence was granted as mentioned in subsection (2), the date when
the licence comes into force.
(5)
Subsection (3)(b) applies even if, at any time during that period, the house
15
concerned subsequently ceases to be a Part 3 house.
(6)
A licence may not be transferred to another person.
(7)
If the holder of the licence dies while the licence is in force, the licence ceases
to be in force on his death.
(8)
However, during the period of 3 months beginning with the date of the licence
20
holder’s death, the house is to be treated for the purposes of this Part as if on
that date a temporary exemption notice had been served in respect of the house
under section 83.
(9)
If, at any time during that period (“the initial period”), the personal
representatives of the licence holder request the local housing authority to do
25
so, the authority may serve on them a notice which, during the period of 3
months after the date on which the initial period ends, has the same effect as a
temporary exemption notice under section 83.
(10)
Subsections (6) to (8) of section 83 apply (with any necessary modifications) in
relation to a decision by the authority not to serve such a notice as they apply
30
in relation to a decision not to serve a temporary exemption notice.
Variation and revocation of licences
89
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
35
(b)
if they consider that there has been a change of circumstances since the
time 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
40
time when it is made.

Housing Bill
Part 3 — Selective licensing of other residential accommodation
61

(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
5
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)—
10
(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
15
accordance with section 87(5).
90
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
20
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.
25
(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
30
(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—
(a)
where the house to which the licence relates ceases to be a Part 3 house;
35
(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
similar terms in respect of it.
40
(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
Schedule 5 (time when period for appealing expires without an appeal being
45
made or when decision to vary is confirmed on appeal).

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Part 3 — Selective licensing of other residential accommodation
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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
(5) under paragraph 35 of Schedule 5 on the assumption that paragraph 35
applied—
5
(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
(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
10
paragraph 33(2) of the Schedule.
(7)
The power to revoke a licence under this section is exercisable by the authority
either—
(a)
on an application made by the licence holder or a relevant person, or
(b)
on the authority’s own initiative.
15
(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
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
20
fall within paragraph (a)), or
(c)
on whom any restriction or obligation is imposed by the licence in
accordance with section 87(5).
Procedure and appeals
91
Procedural requirements and appeals against licence decisions
25
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.
Enforcement
92
Offences in relation to licensing of houses under this Part
30
(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 82(1)) but is
not so licensed.
(2)
A person commits an offence if—
(a)
he is a licence holder or a person on whom restrictions or obligations
35
under a licence are imposed in accordance with section 87(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
defence that, at the material time—
(a)
a notification had been duly given in respect of the house under section
40
61(1) or 83(1), or
(b)
an application for a licence had been duly made in respect of the house
under section 84,

Housing Bill
Part 3 — Selective licensing of other residential accommodation
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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
5
(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
10
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
15
of the notification or application, or
(b)
if they have decided not to do so, one of the conditions set out in
subsection (8) is met.
(8)
The conditions are—
(a)
that the period for appealing against the decision of the authority not to
20
serve or grant such a notice or licence (or against any relevant decision
of a residential property tribunal) has not expired, or
(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.
25
(9)
In subsection (8) “relevant decision” means a decision which is given on an
appeal to the tribunal and confirms the authority’s decision (with or without
variation).
93
Further sanctions relating to unlicensed Part 3 houses
(1)
Subsection (2) applies to any period during which an offence is being
30
committed under section 92(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
a person who occupies the house under a tenancy or licence is to be so
35
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.
(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.
40
(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.

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Part 3 — Selective licensing of other residential accommodation
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(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
94
Meaning of “house” etc.
5
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;
10
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).
95
Index of defined expressions: Part 3
The following table shows where expressions used in this Part are defined or
15
otherwise explained.

Expression
Provision of this Act

Anti-social behaviour
Section 56(5)

Appropriate national authority
Section 218(1)

Category 1 hazard
Section 2(1)

20

Category 2 hazard
Section 2(1)

District of local housing authority
Section 218(6)

Dwelling
Section 94

House
Section 94

Licence and licence holder
Section 82(5)

25

Licence (to occupy premises)
Section 219(9)

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

Occupier (and related expressions)
Section 219(6)

Part 3 house
Section 82(5), together

with section 76(2)

30

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

(and see also section

86(7))

Person having estate or interest
Section 219(8)

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

Person managing
Section 220(3)

Person involved in management
Section 220(5)

Residential property tribunal
Section 190

Tenant
Section 219(1) to (5).

5

Part 4
Additional control provisions in relation to residential accommodation
Introductory
96
Interim and final management orders: introductory
(1)
Sections 97 to 122 deal with the making by a local housing authority of—
10
(a)
an interim management order (see section 97), or
(b)
a final management order (see section 107),
in respect of an HMO or a Part 3 house.
(2)
Section 98 deals with the making of an interim management order in respect of
a house to which that section applies.
15
(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
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
20
occupying or having an estate or interest in any premises in the vicinity,
and
(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
25
management order in respect of it (or, if appropriate, the revocation of
the interim management order).
(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
30
contained in the order.
(5)
The appropriate national authority may by regulations provide for—
(a)
any provision of this Part, or
(b)
section 220(1) or (2) (in its operation for the purposes of any such
provision),
35

to have effect in relation to a section 215 HMO with such modifications as are
prescribed by the regulations.

A “section 215 HMO” is an HMO which is a converted block of flats to which
section 215 applies.
(6)
In this Part—
40

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation
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“HMO” means a house in multiple occupation as defined by sections 213
to 217,

“Part 3 house” means a house to which Part 3 of this Act applies (see
section 76(2)),
and any reference to an HMO or Part 3 house includes (where the context
5
permits) a reference to any yard, garden, outhouses and appurtenances
belonging to, or usually enjoyed with, it (or any part of it).
(7)
In this Part any reference to “the house”, in relation to an interim or final
management order (other than an order under section 97(7)), is a reference to
the HMO or Part 3 house to which the order relates.
10
(8)
Subsection (7) has effect subject to sections 97(8) and 107(7) (exclusion of part
occupied by resident landlord).
Interim management orders: making and operation of orders
97
Making of interim management orders
(1)
A local housing authority—
15
(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
(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
20
if—
(a)
it is an HMO or a Part 3 house which is required to be licensed under
Part 2 or Part 3 (see section 60(1) or 82(1)) but is not so licensed, and
(b)
they consider either—
(i)
that there is no reasonable prospect of its being so licensed in
25
the near future, or
(ii)
that the health and safety condition is satisfied (see section 99).
(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
30
Part 2 or Part 3 and is so licensed,
(b)
they have revoked the licence concerned but the revocation is not yet in
force, and
(c)
they consider either—
(i)
that, on the revocation coming into force, there will be no
35
reasonable prospect of the house being so licensed in the near
future, or
(ii)
that, on the revocation coming into force, the health and safety
condition will be satisfied (see section 99).
(4)
The authority may make an interim management order in respect of a house
40
if—
(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 residential property tribunal, the
tribunal by order authorises them to make such an order;
45