House of Commons portcullis
House of Commons
Session 2003 - 04
Internet Publications
Other Bills before Parliament

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).

 

 

Housing Bill
Part 3 — Selective licensing of other residential accommodation

62

 

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

63

 

   

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.

 

 

Housing Bill
Part 3 — Selective licensing of other residential accommodation

64

 

(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)

 
 

 

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

65

 
 

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

66

 

   

“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

 

 

 
previous section contents continue
 
House of Commons home page Houses of Parliament home page House of Lords home page search page enquiries

© Parliamentary copyright 2004
Revised 1 March 2004