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
81


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

“rent or other payments” means rent or other payments—
(a)
which are payable under leases or licences or in respect of
furniture within section 118(1), and
5
(b)
which the authority have collected or recovered by virtue of this
Part.
(9)
In the provisions of this Part relating to varying, revoking or appealing against
decisions relating to a final management order, any reference to such an order
includes (where the context permits) a reference to the management scheme
10
contained in it.
Final management orders: variation and revocation
113
Variation of final management orders
(1)
The local housing authority may vary a final management order if they
consider it appropriate to do so.
15
(2)
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 31 of Schedule 6 (time
when period for appealing expires without an appeal being made or when
decision to vary is confirmed on appeal).
(3)
The power to vary an order under this section is exercisable by the authority
20
either—
(a)
on an application made by a relevant person, or
(b)
on the authority’s own initiative.
(4)
In this section “relevant person” means—
(a)
any person who has an estate or interest in the house or part of it (but
25
is not a tenant under a lease with an unexpired term of 3 years or less),
or
(b)
any other person who (but for the order) would be a person managing
or having control of the house or part of it.
114
Revocation of final management orders
30
(1)
The local housing authority may revoke a final management order in the
following cases—
(a)
if the order was made under section 107(2) or (5) and the house has
ceased to be an HMO to which Part 2 applies or a Part 3 house (as the
case may be);
35
(b)
if the order was made under section 107(2) or (5) and a licence granted
by them in respect of the house is due to come into force under Part 2
or Part 3 as from the revocation of the order;
(c)
if a further final management order has been made by them in respect
of the house so as to replace the order;
40
(d)
if in any other circumstances the authority consider it appropriate to
revoke the order.
(2)
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 31 of Schedule 6 (time

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation
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when period for appealing expires without an appeal being made or when
decision to vary is confirmed on appeal).
(3)
The power to revoke an order under this section is exercisable by the authority
either—
(a)
on an application made by a relevant person, or
5
(b)
on the authority’s own initiative.
(4)
In this section “relevant person” means—
(a)
any person who has an estate or interest in the house or part of it (but
is not a tenant under a lease with an unexpired term of 3 years or less),
or
10
(b)
any person who (but for the order) would be a person managing or
having control of the house or part of it.
Interim and final management orders: procedure and appeals
115
Procedural requirements and appeals
Schedule 6 (which deals with procedural requirements relating to the making,
15
variation or revocation of interim and final management orders and with
appeals against decisions relating to such orders) has effect.
Interim and final management orders: other general provisions
116
Effect of management orders: occupiers
(1)
In this section—
20

“existing occupier” means a person who, at the time when an interim or
final management order comes into force, is one of the following—
(a)
(in the case of an HMO or Part 3 house) a person who is
occupying part of the house and does not have an estate or
interest in the whole of the house, or
25
(b)
(in the case of a Part 3 house) a person who is occupying the
whole of the house; and

“new occupier” means a person who is occupying the whole or part of a
house under an agreement in the nature of a lease or licence created
under section 102(3)(c) or 110(3)(c).
30
(2)
Sections 102 and 110 do not affect the rights or liabilities of an existing occupier
under a lease or licence (whether in writing or not) under which he is
occupying the whole or part of the house at the commencement date.
(3)
Where the lessor or licensor under such a lease or licence—
(a)
has an estate or interest in the house, and
35
(b)
is not an existing occupier,

the lease or licence has effect while the order is in force as if the local housing
authority were substituted in it for the lessor or licensor.
(4)
Such a lease continues to have effect, as far as possible, as a lease despite the
fact that the rights of the local housing authority, as substituted for the lessor,
40
do not amount to an estate in law in the premises.

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Part 4 — Additional control provisions in relation to residential accommodation
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(5)
The provisions which exclude local authority lettings from the Rent Acts,
namely—
(a)
sections 14 to 16 of the Rent Act 1977 (c. 42), and
(b)
those sections as applied by Schedule 2 to the Rent (Agriculture) Act
1976 (c. 80) and section 5(2) to (4) of that Act,
5

do not apply to a lease or agreement under which an existing or new occupier
is occupying the whole or part of the house.
(6)
Section 1(2) of, and paragraph 12 of Part 1 of Schedule 1 to, the Housing Act
1988 (which exclude local authority lettings from Part 1 of that Act) do not
apply to a lease or agreement under which an existing or new occupier is
10
occupying the whole or part of the house.
(7)
Nothing in section 102(6) or 110(6) or this section has the result that the
authority are to be treated as the legal owner of any premises for the purposes
of—
(a)
section 80 of the Housing Act 1985 (c. 68) (the landlord condition for
15
secure tenancies); or
(b)
section 124 of the Housing Act 1996 (c. 52) (introductory tenancies).
(8)
If, immediately before the coming into force of an interim or final management
order, an existing occupier was occupying the whole or part of the house
under—
20
(a)
a protected or statutory tenancy within the meaning of the Rent Act
1977,
(b)
a protected or statutory tenancy within the meaning of the Rent
(Agriculture) Act 1976, or
(c)
an assured tenancy or assured agricultural occupancy within the
25
meaning of Part 1 of the Housing Act 1988 (c. 50),

nothing in this Part prevents the continuance of that tenancy or occupancy or
affects the continued operation of any of those Acts in relation to the tenancy
or occupancy after the coming into force of the order.
(9)
In this section “the commencement date” means the date on which the order
30
came into force (or, if that order was preceded by one or more orders under this
Part, the date when the first order came into force).
117
Effect of management orders: agreements and legal proceedings
(1)
An agreement or instrument within subsection (2) has effect, while an interim
or final management order is in force, as if any rights or liabilities of the
35
immediate landlord under the agreement or instrument were instead rights or
liabilities of the local housing authority.
(2)
An agreement or instrument is within this subsection if—
(a)
it is effective on the commencement date,
(b)
one of the parties to it is a person who is the immediate landlord of the
40
house or a part of the house (“the relevant premises”),
(c)
it relates to the house, whether in connection with—
(i)
any management activities with respect to the relevant
premises, or
(ii)
the provision of any services or facilities for persons occupying
45
those premises,

or otherwise,

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(d)
it is specified for the purposes of this subsection in the order or falls
within a description of agreements or instruments so specified, and
(e)
the authority serve a notice in writing on all the parties to it stating that
subsection (1) is to apply to it.
(3)
An agreement or instrument is not within subsection (2) if—
5
(a)
it is a lease within section 102(5) or 110(5), or
(b)
it relates to any disposition by the immediate landlord which is not
precluded by section 103(2) or 111(2), or
(c)
it is within section 116(3).
(4)
Proceedings in respect of any cause of action within subsection (5) may, while
10
an interim or final management order is in force, be instituted or continued by
or against the local housing authority instead of by or against the immediate
landlord.
(5)
A cause of action is within this subsection if—
(a)
it is a cause of action (of any nature) which accrued to or against the
15
immediate landlord of the house or a part of the house before the
commencement date,
(b)
it relates to the house as mentioned in subsection (2)(c),
(c)
it is specified for the purposes of this subsection in the order or falls
within a description of causes of action so specified, and
20
(d)
the authority serve a notice in writing on all interested parties stating
that subsection (4) is to apply to it.
(6)
If, by virtue of this section, the authority become subject to any liability to pay
damages in respect of anything done (or omitted to be done) before the
commencement date by or on behalf of the immediate landlord of the house or
25
a part of it, the immediate landlord is liable to reimburse to the authority an
amount equal to the amount of the damages paid by them.
(7)
In this section—

“agreement” includes arrangement;

“the commencement date” means the date on which the order comes into
30
force (or, if that order was preceded by one or more orders under this
Part, the date when the first order came into force);

“management activities” includes repair, maintenance, improvement and
insurance.
118
Effect of management orders: furniture
35
(1)
Subsection (2) applies where, on the date on which an interim or final
management order comes into force, there is furniture in the house which a
person occupying the house has the right to use in consideration of periodical
payments to a person who is an immediate landlord of the house or a part of it
(whether the payments are included in the rent payable by the occupier or not).
40
(2)
The right to possession of the furniture against all persons other than the
occupier vests in the local housing authority on that date and remains vested
in the authority while the order is in force.
(3)
The local housing authority may renounce the right to possession of the
furniture conferred by subsection (2) if—
45

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(a)
an application in writing has been made to them for the purpose by the
person owning the furniture, and
(b)
they renounce the right by notice in writing served on that person not
less than two weeks before the notice takes effect.
(4)
If the authority’s right to possession of furniture conferred by subsection (2) is
5
a right exercisable against more than one person interested in the furniture, any
of those persons may apply to a residential property tribunal for an adjustment
of their respective rights and liabilities as regards the furniture.
(5)
On such an application the tribunal may make an order for such an adjustment
of rights and liabilities, either unconditionally or subject to such terms and
10
conditions, as it considers appropriate.
(6)
The terms and conditions may, in particular, include terms and conditions
about the payment of money by a party to the proceedings to another party to
the proceedings by way of compensation, damages or otherwise.
(7)
In this section “furniture” includes fittings and other articles.
15
119
Management orders: power to supply furniture
(1)
The local housing authority may supply the house to which an interim or final
management order relates with such furniture as they consider to be required.
(2)
For the purposes of section 104 or a management scheme under section 112,
any expenditure incurred by the authority under this section constitutes
20
expenditure incurred by the authority in connection with performing their
duty under section 101(3) or 109(2).
(3)
In this section “furniture” includes fittings and other articles.
120
Termination of management orders: financial arrangements
(1)
This section applies where—
25
(a)
an interim or final management order ceases to have effect for any
reason, and
(b)
the order is not immediately followed by a further order under this
Part.
(2)
If, on the termination date for an interim management order, the total amount
30
of rent or other payments collected or recovered as mentioned in section 104(3)
exceeds the total amount of the authority’s relevant expenditure, the local
housing authority must pay the balance—
(a)
to such relevant landlord, or
(b)
to such relevant landlords in such proportions,
35

as they consider appropriate; and the balance is to be paid by them as soon as
practicable after the termination date.
This subsection does not apply if the management scheme contained in a final
management order so provides.
(3)
If, on the termination date for an interim management order, the total amount
40
of rent or other payments collected or recovered as mentioned in section 104(3)
is less than the total amount of the authority’s relevant expenditure, the
difference is recoverable by the authority—
(a)
from such relevant landlord, or

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(b)
from such relevant landlords in such proportions,

as they consider appropriate.
(4)
If, on the termination date for a final management order, any amount is
payable to any relevant landlord in accordance with the management scheme
under section 112, that amount must be paid to that person by the local housing
5
authority in the manner provided by the scheme.
(5)
If, on the termination date for a final management order, any amount is
payable to the local housing authority in accordance with the management
scheme, that amount is recoverable by local housing authority—
(a)
from such relevant landlord, or
10
(b)
from such relevant landlords in such proportions,

as is provided by the scheme.
(6)
Any sum recoverable by the authority under subsection (3) or (5) is, until
recovered, a charge on the house.
(7)
For the purpose of enforcing the charge the authority have the same powers
15
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.
(8)
The power of appointing a receiver is exercisable at any time after the end of
the period of one month beginning with the date on which the charge takes
20
effect.
(9)
If the order is to be followed by a licence granted under Part 2 or 3 in respect of
the house, the conditions contained in the licence may include a condition
requiring the licence holder—
(a)
to repay to the authority any amount recoverable by them under
25
subsection (3) or (5), and
(b)
to do so in such instalments as are specified in the licence.
(10)
In this section—

“relevant expenditure” has the same meaning as in section 104;

“relevant landlord” means a person who was the immediate landlord of
30
the house or part of it immediately before the termination date or his
successor in title for the time being;

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

“the termination date” means the date on which the order ceases to have
35
effect.
121
Termination of management orders: leases, agreements and proceedings
(1)
This section applies where—
(a)
an interim or final management order ceases to have effect for any
reason, and
40
(b)
the order is not immediately followed by a further order under this
Part.
(2)
As from the termination date—
(a)
a lease or licence in which the local housing authority was substituted
for another party by virtue of section 116(3) has effect with the
45

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substitution of the original party, or his successor in title, for the
authority; and
(b)
an agreement in the nature of a lease or licence created by the authority
under section 102 or 110 has effect with the substitution of the relevant
landlord for the authority.
5
(3)
If the relevant landlord is a lessee, nothing in a superior lease imposes liability
on him or any superior lessee in respect of anything done in pursuance of the
terms of an agreement to which subsection (2)(b) applies.
(4)
If the condition in subsection (5) is met, any other agreement entered into by
the authority in the performance of their duties under section 101(1) to (3) or
10
109(2) in respect of the house has effect, as from the termination date, with the
substitution of the relevant landlord for the authority.
(5)
The condition is that the authority serve a notice on the other party or parties
to the agreement stating that subsection (4) applies to the agreement.
(6)
If the condition in subsection (7) is met—
15
(a)
any rights or liabilities that were rights or liabilities of the authority
immediately before that date by virtue of any provision of this Part or
under any agreement to which subsection (4) applies are rights or
liabilities of the relevant landlord instead, and
(b)
any proceedings instituted or continued by or against the authority by
20
virtue of any such provision or agreement may be continued by or
against the relevant landlord instead,
as from the termination date.
(7)
The condition is that the authority serve a notice on all interested parties
stating that subsection (4) applies to the rights or liabilities or (as the case may
25
be) the proceedings.
(8)
If by virtue of this section a relevant landlord becomes subject to any liability
to pay damages in respect of anything done (or omitted to be done) before the
termination date by or on behalf of the authority, the authority are liable to
reimburse to the relevant landlord an amount equal to the amount of the
30
damages paid by him.
(9)
Where two or more persons are relevant landlords in relation to different parts
of the house any reference in this section to “the relevant landlord” is to be
taken to refer to such one or more of them as is determined by agreement
between them or (in default of agreement) by a residential property tribunal on
35
an application made by any of them.
(10)
In this section—
(a)
“agreement” includes arrangement;
(b)
“relevant landlord” means a person who was the immediate landlord
of the house immediately before the termination date or his successor
40
in title for the time being;
(c)
“the termination date” means the date on which the order ceases to
have effect.