(15-19)

House of Commons

Session 2002 - 03
Internet Publications
Other Bills before Parliament

(  15  )

otherwise as if they were mortgagees by deed having powers of sale and

lease, and of accepting surrenders of leases and of appointing a receiver.

(11)
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 effect.

(12)
If the authority subsequently grant a licence under Part 2 or this Part in

respect of the house to the appropriate person or any person acting on his

behalf, the conditions contained in the licence may include a condition

requiring the licence holder—

(a)
to pay to the authority any amount payable to them under the rent

repayment order and not so far recovered by them; and

(b)
to do so in such instalments as are specified in the licence.

(13)
If the authority subsequently make a management order under Chapter 1

of Part 4 in respect of the house, the order may contain such provisions as

the authority consider appropriate for the recovery of any amount payable

to them under the rent repayment order and not so far recovered by them.

(14)
Any amount payable to an occupier by virtue of a rent repayment order is

recoverable by the occupier as a debt due to him from the appropriate

person.

(15)
The appropriate national authority may by regulations make such

provision as it considers appropriate for supplementing the provisions of

this section and section (Other consequences of operating unlicensed houses:

rent repayment orders), and in particular—

(a)
for securing that persons are not unfairly prejudiced by rent

repayment orders (whether in cases where there have been over-

payments of housing benefit or otherwise);

(b)
for requiring or authorising amounts received by local housing

authorities by virtue of rent repayment orders to be dealt with in

such manner as is specified in the regulations.

(16)
Section (Other consequences of operating unlicensed houses: rent repayment

orders)(10) and (11) apply for the purposes of this section as they apply for

the purposes of section (Other consequences of operating unlicensed houses:

rent repayment orders).”
53
Insert the following new Clause—

(  16  )

“Other consequences of operating unlicensed houses: restriction on terminating

tenancies

(1)
No section 21 notice may be given in relation to a shorthold tenancy of the

whole or part of an unlicensed house so long as it remains such a house.

(2)
In this section—


a “section 21 notice” means a notice under section 21(1)(b) or (4)(a) of

the Housing Act 1988 (c. 50) (recovery of possession on termination

of shorthold tenancy);


a “shorthold tenancy” means an assured shorthold tenancy within the

meaning of Chapter 2 of Part 1 of that Act;


“unlicensed house” has the same meaning as in section (Other

consequences of operating unlicensed houses: rent repayment orders) of

this Act.”
Clause 96
54
Page 66, line 7, leave out subsections (5) and (6)
55
Page 66, line 26, at end insert—

“(9)
In this Chapter “third party”, in relation to a house, means any person who

has an estate or interest in the house (other than an immediate landlord and

any person who is a tenant under a lease or licence granted under section

102(3)(c) or 110(3)(c)).”
Clause 97
56
Page 67, line 16, at end insert “, either in the terms of a draft order submitted by

them or in those terms as varied by the tribunal”
57
Page 67, line 33, at end insert “, either in the terms of a draft order submitted by

them or in those terms as varied by the tribunal”
Clause 98
58
Page 68, line 22, leave out “locality” and insert “vicinity”
Clause 102
59
Page 72, line 3, leave out paragraph (a)
60
Page 72, line 19, at end insert—

“( )
The authority may apply to the Chief Land Registrar for the entry of an

appropriate restriction in the register of title in respect of such an order.”
After Clause 102
61
Insert the following new Clause—

(  17  )

“General effect of interim management orders: leases and licences granted by

authority

(1)
This section applies in relation to any interest or right created by the

authority under section 102(3)(c).

(2)
For the purposes of any enactment or rule of law—

(a)
any interest created by the authority under section 102(3)(c)(i) is to

be treated as if it were a legal lease, and

(b)
any right created by the authority under section 102(3)(c)(ii) is to be

treated as if it were a licence to occupy granted by the legal owner

of the premises,


despite the fact that the authority have no legal estate in the premises (see

section 102(5)(a)).

(3)
Any enactment or rule of law relating to landlords and tenants or leases

accordingly applies in relation to any interest created by the authority

under section 102(3)(c)(i) as if the authority were the legal owner of the

premises.

(4)
References to leases and licences—

(a)
in this Part, and

(b)
in any other enactment,


accordingly include (where the context permits) interests and rights

created by the authority under section 102(3)(c).

(5)
The preceding provisions of this section have effect subject to—

(a)
section 116(5) to (7), and

(b)
any provision to the contrary contained in an order made by the

appropriate national authority.

(6)
In section 102(5)(b) the reference to leasing does not include the creation of

interests under section 102(3)(c)(i).

(7)
In this section—


“enactment” has the meaning given by section 102(10);


“legal lease” means a term of years absolute (within section 1(1)(b) of

the Law of Property Act 1925 (c. 20)).”
Clause 103
62
Page 72, line 35, leave out “interest or right created” and insert “leases or licences

granted”
63
Page 73, line 7, leave out “and in” and insert—


“except to the extent that any of those rights or remedies would prevent the

local housing authority from exercising their power under section

102(3)(c).

( )
In”
64
Page 73, line 16, leave out subsection (6)
Clause 104
65
Page 73, line 27, leave out “relevant expenditure.” and insert—

“( )
relevant expenditure, and

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( )
any amounts of compensation payable to a third party by virtue of

a decision of the authority under section (Compensation).”
66
Page 73, line 32, after “expenditure” insert “and any amounts of compensation

payable as mentioned in that subsection”
Clause 110
67
Page 78, line 8, leave out “occupiers preserved by section 116(2))” and insert “and

other occupiers preserved by section 116(2) and (4A))”
68
Page 78, line 39, leave out paragraph (a)
69
Page 79, line 8, at end insert—

“( )
The authority may apply to the Chief Land Registrar for the entry of an

appropriate restriction in the register in respect of such an order.”
After Clause 110
70
Insert the following new Clause—

“General effect of final management orders: leases and licences granted by

authority

(1)
This section applies in relation to any interest or right created by the

authority under section 110(3)(c).

(2)
For the purposes of any enactment or rule of law—

(a)
any interest created by the authority under section 110(3)(c)(i) is to

be treated as if it were a legal lease, and

(b)
any right created by the authority under section 110(3)(c)(ii) is to be

treated as if it were a licence to occupy granted by the legal owner

of the premises,


despite the fact that the authority have no legal estate in the premises (see

section 110(5)(a)).

(3)
Any enactment or rule of law relating to landlords and tenants or leases

accordingly applies in relation to any interest created by the authority

under section 110(3)(c)(i) as if the authority were the legal owner of the

premises.

(4)
References to leases and licences—

(a)
in this Part, and

(b)
in any other enactment,


accordingly include (where the context permits) interests and rights

created by the authority under section 110(3)(c).

(5)
The preceding provisions of this section have effect subject to—

(a)
section 116(5) to (7), and

(b)
any provision to the contrary contained in an order made by the

appropriate national authority.

(  19  )

(6)
In section 110(5)(b) the reference to leasing does not include the creation of

interests under section 110(3)(c)(i).

(7)
In this section—


“enactment” has the meaning given by section 110(10);


“legal lease” means a term of years absolute (within section 1(1)(b) of

the Law of Property Act 1925 (c. 20)).”
Clause 111
71
Page 79, leave out line 24 and insert “leases or licences granted by them under

section 102(3)(c) or 110(3)(c),”
72
Page 79, line 41, leave out “and in” and insert—


“except to the extent that any of those rights or remedies would prevent the

local housing authority from exercising their power under section

110(3)(c).

( )
In”
Clause 112
73
Page 80, line 18, at end insert—

“(ca)
the amount of any compensation that is payable to a third party by

virtue of a decision of the authority under section (Compensation) in

respect of any interference in consequence of the final management

order with the rights of that person;

(cb)
provision as to the payment of any such compensation;”
74
Page 80, line 21, leave out “relevant expenditure;” and insert—

“( )
relevant expenditure, and

( )
any amounts of compensation payable as mentioned in

paragraph (ca);”
75
Page 80, line 22, at beginning insert “provision”
76
Page 80, leave out line 25 and insert—

“( )
relevant expenditure, and

( )
any amounts of compensation payable as mentioned in

paragraph (ca);

( )
provision as to the manner in which the authority are to pay, on the

termination of the final management order, any outstanding

balance of compensation payable to a third party.”
77
Page 80, line 30, leave out “(4)(c) and (d)” and insert “(4)(d) and (e)”
78
Page 80, line 32, leave out “is not to apply in respect of an interim” and insert “or

(4) is not to apply in relation to an interim or (as the case may be) final”
79
Page 80, line 34, after “balance” insert “or amount”
80
Page 80, line 35, after “meet” insert “—

(i)”
81
Page 80, line 36, after “order” insert “, and

“(ii)
any compensation that may become payable to a third

party”