Housing Bill

House of Commons

Session 2003 - 04
Internet Publications
Other Bills before Parliament

Housing Bill

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation
67

and the authority may make such an order despite any pending appeal against
the order of the tribunal (but this is without prejudice to any order that may be
made on the disposal of any such appeal).
(5)
The tribunal may only authorise the authority to make an interim management
order under subsection (4) if it considers that the health and safety condition is
5
satisfied (see section 99).
(6)
In determining whether to authorise the authority to make an interim
management order in respect of an HMO under subsection (4), the tribunal
must have regard to the extent to which any applicable code of practice
approved under section 193 has been complied with in respect of the HMO in
10
the past.
(7)
The authority may make an interim management order in respect of a house
if—
(a)
it is a house to which section 98 (special interim management orders)
applies, and
15
(b)
on an application by the authority to a residential property tribunal, the
tribunal by order authorises them to make such an order;

and the authority may make such an order despite any pending appeal against
the order of the tribunal (but this is without prejudice to any order that may be
made on the disposal of any such appeal).
20
Subsections (2) to (6) of section 98 apply in relation to the power of a residential
property tribunal to authorise the making of an interim management order
under this subsection.
(8)
The authority may make an interim management order which is expressed not
to apply to a part of the house that is occupied by a person who has an estate
25
or interest in the whole of the house.

In relation to such an order, a reference in this Part to “the house” does not
include the part so excluded (unless the context requires otherwise, such as
where the reference is to the house as an HMO or a Part 3 house).
(9)
Nothing in this section requires or authorises the making of an interim
30
management order in respect of a house if—
(a)
an interim management order has been previously made in respect of
it, and
(b)
the authority have not exercised any relevant function in respect of the
house at any time after the making of the interim management order.
35
(10)
In subsection (9) “relevant function” means the function of—
(a)
granting a licence under Part 2 or 3,
(b)
serving a temporary exemption notice under section 61 or section 83, or
(c)
making a final management order under section 107.
98
Special interim management orders
40
(1)
This section applies to a house if the whole of it is occupied either—
(a)
under a single tenancy or licence that is not an exempt tenancy or
licence under section 76(3) or (4), or
(b)
under two or more tenancies or licences in respect of different
dwellings contained in it, none of which is an exempt tenancy or licence
45
under section 76(3) or (4).

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation
68

(2)
A residential property tribunal may only authorise the authority to make an
interim management order in respect of such a house under section 97(7) if it
considers that both of the following conditions are satisfied.
(3)
The first condition is that the circumstances relating to the house fall within
any category of circumstances prescribed for the purposes of this subsection by
5
an order under subsection (5).
(4)
The second condition is that the making of the order is necessary for the
purpose of protecting the health, safety or welfare of persons occupying,
visiting or otherwise engaging in lawful activities in the locality of the house.
(5)
The appropriate national authority may by order—
10
(a)
prescribe categories of circumstances for the purposes of subsection (3),
(b)
provide for any of the provisions of this Act to apply in relation to
houses to which this section applies, or interim management orders
made in respect of them, with any modifications specified in the order.
(6)
The categories prescribed by an order under subsection (5) are to reflect one or
15
more of the following—
(a)
the first or second set of general conditions mentioned in subsection (3)
or (6) of section 77, or
(b)
any additional set of conditions specified under subsection (7) of that
section,
20

but (in each case) with such modifications as the appropriate national authority
considers appropriate to adapt them to the circumstances of a single house.
(7)
In this section “house” has the same meaning as in Part 3 (see section 94).
(8)
In this Part—
(a)
any reference to “the house”, in relation to an interim management
25
order under section 97(7), is a reference to the house to which the order
relates, and
(b)
any such reference includes (where the context permits) a reference to
any yard, garden, outhouses and appurtenances belonging to, or
usually enjoyed with, it (or any part of it).
30
99
The health and safety condition
(1)
This section explains what “the health and safety condition” is for the purposes
of section 97.
(2)
The health and safety condition is that the making of an interim management
order is necessary for the purpose of protecting the health, safety or welfare of
35
persons occupying the house, or persons occupying or having an estate or
interest in any premises in the vicinity.
(3)
A threat to evict persons occupying a house in order to avoid the house being
required to be licensed under Part 2 may constitute a threat to the welfare of
those persons for the purposes of subsection (2).
40

This does not affect the generality of that subsection.
(4)
The health and safety condition is not to be regarded as satisfied for the
purposes of section 97(2)(b)(ii) or (3)(c)(ii) where both of the conditions in
subsections (5) and (6) are satisfied.
(5)
The first condition is that the local housing authority either—
45

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation
69

(a)
(in a case within section 97(2)(b)(ii)) are required by section 5 (general
duty to take enforcement action in respect of category 1 hazards) to take
a course of action within subsection (2) of that section in relation to the
house, or
(b)
(in a case within section 97(3)(c)(ii)) consider that on the revocation
5
coming into force they will be required to take such a course of action.
(6)
The second condition is that the local housing authority consider that the
health, safety or welfare of the persons in question would be adequately
protected by taking that course of action.
100
Operation of interim management orders
10
(1)
This section deals with the time when an interim management order comes
into force or ceases to have effect.
(2)
The order comes into force when it is made, unless it is made under section
97(3).
(3)
If the order is made under section 97(3), it comes into force when the revocation
15
of the licence comes into force.
(4)
The order ceases to have effect at the end of the period of 12 months beginning
with the date on which it is made, unless it ceases to have effect at some other
time as mentioned below.
(5)
If the order provides that it is to cease to have effect on a date falling before the
20
end of that period, it accordingly ceases to have effect on that date.
(6)
If the order is made under section 97(3)—
(a)
it must include a provision for determining the date on which it will
cease to have effect, and
(b)
it accordingly ceases to have effect on the date so determined.
25
(7)
That date must be no later than 12 months after the date on which the order
comes into force.
(8)
Subsections (9) and (10) apply where—
(a)
a final management order (“the FMO”) has been made under section
107 so as to replace the order (“the IMO”), but
30
(b)
the FMO has not come into force because of an appeal to a residential
property tribunal under paragraph 24 of Schedule 6 against the making
of the FMO.
(9)
If—
(a)
the house would (but for the IMO being in force) be required to be
35
licensed under Part 2 or 3 of this Act (see section 60(1) or 82(1)), and
(b)
the date on which—
(i)
the FMO,
(ii)
any licence under Part 2 or 3, or
(iii)
another interim management order,
40

comes into force in relation to the house (or part of it) following the
disposal of the appeal is later than the date on which the IMO would
cease to have effect apart from this subsection,

the IMO continues in force until that later date.

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation
70

(10)
If—
(a)
the house is an HMO other than one to which Part 2 of this Act applies,
and
(b)
on the application of the authority, the tribunal makes an order
providing for the IMO to continue in force, pending the disposal of the
5
appeal, until a date later than that on which the IMO would cease to
have effect apart from this subsection,

the IMO accordingly continues in force until that later date.
(11)
This section has effect subject to sections 105 and 106 (variation or revocation
of orders by authority) and to the power of revocation exercisable by a
10
residential property tribunal on an appeal made under paragraph 24 or 28 of
Schedule 6.
101
Local housing authority’s duties once interim management order in force
(1)
A local housing authority who have made an interim management order in
respect of a house must comply with the following provisions as soon as
15
practicable after the order has come into force.
(2)
The authority must first take any immediate steps which they consider to be
necessary for the purpose of protecting the health, safety or welfare of persons
occupying the house, or persons occupying or having an estate or interest in
any premises in the vicinity.
20
(3)
The authority must also take such other steps as they consider appropriate
with a view to the proper management of the house pending—
(a)
the grant of a licence or the making of a final management order in
respect of the house as mentioned in subsection (4) or (5), or
(b)
the revocation of the interim management order as mentioned in
25
subsection (5).
(4)
If the house would (but for the order being in force) be required to be licensed
under Part 2 or 3 of this Act (see section 60(1) or 82(1)), the authority must, after
considering all the circumstances of the case, decide to take one of the
following courses of action—
30
(a)
to grant a licence under that Part in respect of the house, or
(b)
to make a final management order in respect of it under section 107(1).
(5)
If the house is an HMO other than one to which Part 2 of this Act applies, the
authority must, after considering all the circumstances of the case, decide to
take one of the following courses of action—
35
(a)
to make a final management order in respect of the house under section
107(3), or
(b)
to revoke the order under section 106 without taking any further action.
(6)
In the following provisions, namely—
(a)
subsections (3) and (4), and
40
(b)
section 96(3)(b),

the reference to the grant of a licence under Part 2 or 3 in respect of the house
includes a reference to serving a temporary exemption notice under section 61
or section 83 in respect of it (whether or not a notification is given under
subsection (1) of that section).
45

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation
71

(7)
For the avoidance of doubt, the authority’s duty under subsection (3) includes
taking such steps as are necessary to ensure that, while the order is in force,
reasonable provision is made for insurance of the house against destruction or
damage by fire or other causes.
102
General effect of interim management orders
5
(1)
This section applies while an interim management order is in force in relation
to a house.
(2)
The rights and powers conferred by subsection (3) are exercisable by the
authority in performing their duties under section 101(1) to (3) in respect of the
house.
10
(3)
The authority—
(a)
have the right to possession of the house (subject to the rights of
existing occupiers preserved by section 116(2));
(b)
have the right to do (and authorise a manager or other person to do) in
relation to the house anything which a person having an estate or
15
interest in the house would (but for the order) be entitled to do;
(c)
may create one or more of the following—
(i)
an interest in the house which, as far as possible, has all the
incidents of a leasehold, or
(ii)
a right in the nature of a licence to occupy part of the house.
20
(4)
But the authority may not under subsection (3)(c) create any interest or right in
the nature of a lease or licence unless consent in writing has been given by the
person who (but for the order) would have power to create the lease or licence
in question.
(5)
The authority—
25
(a)
do not under this section acquire any estate or interest in the house, and
(b)
accordingly are not entitled by virtue of this section to sell, lease, charge
or make any other disposition of any such estate or interest;

but, where the immediate landlord of the house or part of it (within the
meaning of section 103) is a lessee under a lease of the house or part, the
30
authority is to be treated (subject to paragraph (a)) as if they were the lessee
instead.
(6)
Any enactment or rule of law relating to landlords and tenants or leases applies
in relation to—
(a)
an interest created by the authority under subsection (3)(c),
35
(b)
a lease in relation to which the authority are to be treated as the lessee
under subsection (5), or
(c)
a lease to which the authority become a party under section 116(3),

as if the authority were the legal owner of the premises (but this is subject to
section 116(5) to (7)).
40
(7)
None of the following, namely—
(a)
the authority, or
(b)
any person authorised under subsection (3)(b)

is liable to any person having an estate or interest in the house for anything
done or omitted to be done in the performance (or intended performance) of
45

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation
72

the authority’s duties under section 101(1) to (3) unless the act or omission is
due to the negligence of the authority or any such person.
(8)
References in any enactment to housing accommodation provided or managed
by a local housing authority do not include a house in relation to which an
interim management order is in force.
5
(9)
An interim management order which has come into force is a local land charge.
(10)
In this section “enactment” includes an enactment comprised in subordinate
legislation (within the meaning of the Interpretation Act 1978 (c. 30)).
103
General effect of interim management orders: immediate landlords,
mortgagees etc.
10
(1)
This section applies in relation to—
(a)
immediate landlords, and
(b)
other persons with an estate or interest in the house,

while an interim management order is in force in relation to a house.
(2)
A person who is an immediate landlord of the house or a part of it—
15
(a)
is not entitled to receive—
(i)
any rents or other payments from persons occupying the house
or part which are payable to the local housing authority by
virtue of section 116(3), or
(ii)
any rents or other payments from persons occupying the house
20
or part which are payable to the authority by virtue of any
interest or right created by them under section 102(3)(c),
(b)
may not exercise any rights or powers with respect to the management
of the house or part; and
(c)
may not create any of the following—
25
(i)
any leasehold interest in the house or part (other than a lease of
a reversion), or
(ii)
any licence or other right to occupy it.
(3)
However (subject to subsection (2)(c)) nothing in section 102 or this section
affects the ability of a person having an estate or interest in the house to make
30
any disposition of that estate or interest.
(4)
Nothing in section 102 or this section affects—
(a)
the validity of any mortgage relating to the house or any rights or
remedies available to the mortgagee under such a mortgage, or
(b)
the validity of any lease of the house or part of it under which the
35
immediate landlord is a lessee, or any superior lease, or (subject to
section 102(5)) any rights or remedies available to the lessor under such
a lease;

and in proceedings for the enforcement of any such rights or remedies the
court may make such order as it thinks fit as regards the operation of the
40
interim management order (including an order quashing it).
(5)
For the purposes of this Part, as it applies in relation to an interim management
order, a person is an “immediate landlord” of the house or a part of it if—
(a)
he is an owner or lessee of the house or part, and

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation
73

(b)
(but for the order) he would be entitled to receive the rents or other
payments from persons occupying the house or part which are payable
to the local housing authority by virtue of section 116(3).
(6)
For the purposes of this Part “mortgage” includes a charge or lien, and
“mortgagee” is to be read accordingly.
5
104
Financial arrangements while order is in force
(1)
This section applies to relevant expenditure of a local housing authority who
have made an interim management order.
(2)
“Relevant expenditure” means expenditure reasonably incurred by the
authority in connection with performing their duties under section 101(1) to (3)
10
in respect of the house (including any premiums paid for insurance of the
premises).
(3)
Rent or other payments which the authority have collected or recovered, by
virtue of this Part, from persons occupying the house may be used by the
authority to meet relevant expenditure.
15
(4)
The authority must pay to such relevant landlord, or to such relevant landlords
in such proportions, as they consider appropriate—
(a)
any amount of rent or other payments collected or recovered as
mentioned in subsection (3) that remains after deductions to meet
relevant expenditure, and
20
(b)
(where appropriate) interest on that amount at a reasonable rate fixed
by the authority,

and such payments are to be made at such intervals as the authority consider
appropriate.
(5)
The authority must—
25
(a)
keep full accounts of their income and expenditure in respect of the
house; and
(b)
afford to each relevant landlord, and to any other person who has an
estate or interest in the house, all reasonable facilities for inspecting,
taking copies of and verifying those accounts.
30
(6)
A relevant landlord may apply to a residential property tribunal for an order—
(a)
declaring that an amount shown in the accounts as expenditure of the
authority does not constitute expenditure reasonably incurred by the
authority as mentioned in subsection (2);
(b)
requiring the authority to make such financial adjustments (in the
35
accounts and otherwise) as are necessary to reflect the tribunal’s
declaration.
(7)
In this section—

“expenditure” includes administrative costs;

“relevant landlord” means any person who is an immediate landlord of
40
the house or part of it;

“rent or other payments” means rents or other payments payable under
leases or licences or in respect of furniture within section 118(1).