(57-63)

House of Commons

Session 2002 - 03
Internet Publications
Other Bills before Parliament

(  57  )
241
Page 171, line 15, leave out “186” and insert “(Protected sites to include sites for

gypsies) to (Suspension of eviction orders)”
242
Page 171, line 15, after “189,” insert “(Rights of pre-emption in connection with assured

tenancies),”
243
Page 171, line 16, at end insert—

“( )
Schedule (New Schedule 5A to the Housing Act 1985: initial demolition

notices),”
244
Page 171, line 26, after “171,” insert “(Tenancy deposit schemes) to (Sanctions for non-

compliance),”
245
Page 171, line 26, after “190,” insert “(Extension of right to acquire),”
246
Page 171, line 26, after “190,” insert “(Allocation of housing accommodation by local

authorities),”
247
Page 171, line 26, after “190,” insert “(Duties of local housing authorities:

accommodation needs of gypsies and travellers), (Guidance in relation to section (Duties of

local housing authorities: accommodation needs of gypsies and travellers)),”
248
Page 171, line 26, after “206,” insert “(Authorisations for enforcement purposes etc.),”
249
Page 171, line 27, at end insert—

“( )
Schedule (Provisions relating to tenancy deposit schemes),”
Schedule 2
250
Page 179, line 32, leave out “entitled or”
251
Page 180, line 8, leave out “entitled or”
252
Page 184, line 5, leave out “entitled or”
Schedule 4
253
Page 189, line 34, leave out “keep smoke alarms in the house” and insert “ensure

that smoke alarms are installed in the house and to keep them”
Schedule 6
254
Page 199, line 37, leave out “an” and insert “any such”
255
Page 203, line 9, leave out “This” and insert “Except to the extent that an appeal

may be made in accordance with sub-paragraphs (3) and (4), sub-paragraph (1)”
256
Page 203, line 31, leave out “may” and insert “must”
257
Page 203, line 32, leave out “7(2)” and insert “7(5)”
258
Page 206, line 2, at end insert—

“Right to appeal against decision in respect of compensation payable to third parties

31A       (1)
This paragraph applies where a local housing authority have made a

decision under section (Compensation) as to whether compensation

should be paid to a third party in respect of any interference with his

rights in consequence of an interim or final management order.

      (2)
The third party may appeal to a residential property tribunal against—

(  58  )

(a)
a decision by the authority not to pay compensation to him, or

(b)
a decision of the authority so far as relating to the amount of

compensation that should be paid.

Time limits for appeals under paragraph 31A

31B       (1)
This paragraph applies in relation to an appeal under paragraph 31A

against a decision of a local housing authority not to pay compensation

to a third party or as to the amount of compensation to be paid.

      (2)
Any such appeal must be made within the period of 28 days beginning

with the date the authority notifies the third party under section

(Compensation)(2).

      (3)
A residential property tribunal may allow an appeal to be made to it

after the end of the period mentioned in sub-paragraph (2) if it is

satisfied that there is good reason for the failure to appeal before the end

of that period (and for any delay since then in applying for permission

to appeal out of time).

Powers of residential property tribunal on appeal under paragraph 31A

31C       (1)
This paragraph applies in relation to an appeal under paragraph 31A

against a decision of a local housing authority not to pay compensation

to a third party or as to the amount of compensation to be paid.

      (1)
The appeal—

(a)
is to be by way of re-hearing, but

(b)
may be determined having regard to matters of which the

authority were unaware.

      (2)
The tribunal may confirm, reverse or vary the decision of the local

housing authority.

      (3)
Where the tribunal reverses or varies a decision of the authority in

respect of a final management order, it must make an order varying the

management scheme contained in the final management order

accordingly.”
Before Schedule 7
259
Insert the following new Schedule—

“Further provisions regarding empty dwelling management orders

Part 1

Interim EDMOs

Operation of interim EDMOs

1     (1)
This paragraph deals with the time when an interim EDMO comes into

force or ceases to have effect.

      (2)
The order comes into force when it is made.

      (3)
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.

(  59  )

      (4)
If the order provides that it is to cease to have effect on a date falling

before the end of that period, it accordingly ceases to have effect on that

date.

      (5)
Sub-paragraphs (6) and (7) apply where—

(a)
a final EDMO (“the final EDMO”) has been made under section

(Making of final EDMOs) so as to replace the order (“the interim

EDMO”), but

(b)
the final EDMO has not come into force because of an appeal to

a residential property tribunal under paragraph 26 against the

making of the final EDMO.

      (6)
If the date on which the final EDMO comes into force in relation to the

dwelling following the disposal of the appeal is later than the date on

which the interim EDMO would cease to have effect apart from this sub-

paragraph, the interim EDMO continues in force until that later date.

      (7)
If, on the application of the authority, the tribunal makes an order

providing for the interim EDMO to continue in force, pending the

disposal of the appeal, until a date later than that on which the interim

EDMO would cease to have effect apart from this sub-paragraph, the

interim EDMO accordingly continues in force until that later date.

      (8)
This paragraph has effect subject to paragraphs 6 and 7 (variation or

revocation of orders by authority) and to the power of revocation

exercisable by a residential property tribunal on an appeal made under

paragraph 30.

General effect of interim EDMOs

2     (1)
This paragraph applies while an interim EDMO is in force in relation to

a dwelling.

      (2)
The rights and powers conferred by sub-paragraph (3) are exercisable by

the authority in performing their duties under section (Local housing

authority’s duties once interim EDMO in force)(1) to (3) in respect of the

dwelling.

      (3)
The authority—

(a)
have the right to possession of the dwelling (subject to the rights

of existing occupiers preserved by paragraph 18(3));

(b)
have the right to do (and authorise a manager or other person to

do) in relation to the dwelling anything which the relevant

proprietor of the dwelling would (but for the order) be entitled to

do;

(c)
may create one or more of the following—

(i)
an interest in the dwelling 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

dwelling;

(d)
may apply to a residential property tribunal for an order under

paragraph 22 determining a lease or licence of the dwelling.

      (4)
But the authority may not under sub-paragraph (3)(c) create any interest

or right in the nature of a lease or licence unless—

(a)
consent in writing has been given by the relevant proprietor of

the dwelling, and

(  60  )

(b)
where the relevant proprietor is a lessee under a lease of the

dwelling, the interest or right is created for a term that is less than

the term of that lease.

      (5)
The authority—

(a)
do not under this paragraph acquire any estate or interest in the

dwelling, and

(b)
accordingly are not entitled by virtue of this paragraph to sell,

lease, charge or make any other disposition of any such estate or

interest.

      (6)
But, where the relevant proprietor of the dwelling is a lessee under a

lease of the dwelling, the authority are to be treated (subject to sub-

paragraph (5)(a)) as if they were the lessee instead.

      (7)
Any enactment or rule of law relating to landlords and tenants or leases

applies in relation to—

(a)
a lease in relation to which the authority are to be treated as the

lessee under sub-paragraph (6), or

(b)
a lease to which the authority become a party under paragraph

4(2),


as if the authority were the legal owner of the premises (but this is subject

to paragraph 4(4) to (6)).

      (8)
None of the following, namely—

(a)
the authority, or

(b)
any person authorised under sub-paragraph (3)(b),


is liable to any person having an estate or interest in the dwelling for

anything done or omitted to be done in the performance (or intended

performance) of the authority’s duties under section (Local housing

authority’s duties once interim EDMO in force)(1) to (3) unless the act or

omission is due to negligence of the authority or any such person.

      (9)
An interim EDMO which has come into force is a local land charge.

     (10)
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.

     (11)
In this paragraph “enactment” includes an enactment comprised in

subordinate legislation (within the meaning of the Interpretation Act

1978 (c. 30)).

General effect of interim EDMOs: leases and licences granted by authority

3     (1)
This paragraph applies in relation to any interest or right created by the

authority under paragraph 2(3)(c).

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

(a)
any interest created by the authority under paragraph 2(3)(c)(i) is

to be treated as if it were a legal lease, and

(b)
any right created by the authority under paragraph 2(3)(c)(ii) is

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

owner of the dwelling,


despite the fact that the authority have no legal estate in the dwelling

(see paragraph 2(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 paragraph 2(3)(c)(i) as if the authority were the legal owner of the

dwelling.

(  61  )

      (4)
References to leases and licences—

(a)
in this Chapter, and

(b)
in any other enactment,


accordingly include (where the context permits) interests and rights

created by the authority under paragraph 2(3)(c).

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

(a)
paragraph 4(4) to (6), and

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

appropriate national authority.

      (6)
In paragraph 2(5)(b) the reference to leasing does not include the

creation of interests under paragraph 2(3)(c)(i).

      (7)
In this paragraph—


“enactment” has the meaning given by paragraph 2(11);


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

of the Law of Property Act 1925 (c. 20)).

General effect of interim EDMOs: relevant proprietor, mortgagees etc.

4     (1)
This paragraph applies in relation to—

(a)
the relevant proprietor, and

(b)
other persons with an estate or interest in the dwelling,


while an interim EDMO is in force in relation to a dwelling.

      (2)
Where the relevant proprietor is a lessor or licensor under a lease or

licence of the dwelling, 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.

      (3)
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, do not amount to an estate in law in the dwelling.

      (4)
The provisions mentioned in sub-paragraph (5) do not apply to a lease

or licence within sub-paragraph (2).

      (5)
The provisions are—

(a)
the provisions which exclude local authority lettings from the

Rent Acts, namely—

(i)
sections 14 to 16 of the Rent Act 1977 (c. 42), and

(ii)
those sections as applied by Schedule 2 to the Rent

(Agriculture) Act 1976 (c. 80) and section 5(2) to (4) of that

Act; and

(b)
section 1(2) of, and paragraph 12 of Part 1 of Schedule 1 to, the

Housing Act 1988 (c. 50) (which exclude local authority lettings

from Part 1 of that Act).

      (6)
Nothing in this Chapter 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 secure tenancies); or

(b)
section 124 of the Housing Act 1996 (c. 52) (introductory

tenancies).

      (7)
The relevant proprietor of the dwelling—

(a)
is not entitled to receive any rents or other payments made in

respect of occupation of the dwelling;

(  62  )

(b)
may not exercise any rights or powers with respect to the

management of the dwelling; and

(c)
may not create any of the following—

(i)
any leasehold interest in the dwelling or a part of it (other

than a lease of a reversion), or

(ii)
any licence or other right to occupy it.

      (8)
However (subject to sub-paragraph (7)(c)) nothing in paragraph 2 or this

paragraph affects the ability of a person having an estate or interest in

the dwelling to make any disposition of that estate or interest.

      (9)
Nothing in paragraph 2 or this paragraph affects—

(a)
the validity of any mortgage relating to the dwelling or any

rights or remedies available to the mortgagee under such a

mortgage, or

(b)
the validity of any lease of the dwelling under which the relevant

proprietor is a lessee, or any superior lease, or (subject to

paragraph 2(6)) any rights or remedies available to the lessor

under such a lease,


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

the local housing authority from exercising their power under

paragraph 2(3)(c).

     (10)
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

interim EDMO (including an order quashing it).

Financial arrangements while order is in force

5     (1)
This paragraph applies to relevant expenditure of a local housing

authority who have made an interim EDMO.

      (2)
“Relevant expenditure” means—

(a)
expenditure incurred by the authority with the consent of the

relevant proprietor, or

(b)
any other expenditure reasonably incurred by the authority,


in connection with performing their duties under section (Local housing

authority’s duties once interim EDMO in force)(1) to (3) in respect of the

dwelling (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 Chapter, from persons occupying or having the right to

occupy the dwelling may be used by the authority to meet—

(a)
relevant expenditure, and

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

of an order under section (Authorisation to make interim

EDMOs)(4) or (Compensation payable to third parties)(2) or to a

dispossessed landlord or tenant by virtue of an order under

paragraph 22(5).

      (4)
The authority must pay to the relevant proprietor—

(a)
any amount of rent or other payments collected or recovered as

mentioned in sub-paragraph (3) that remains after deductions to

meet relevant expenditure and any amounts of compensation

payable as mentioned in that sub-paragraph, and

(b)
(where appropriate) interest on that amount at a reasonable rate

fixed by the authority,

(  63  )


and such payments are to be made at such intervals as the authority

consider appropriate.

      (5)
The interim EDMO may provide for—

(a)
the rate of interest which is to apply for the purposes of

paragraph (b) of sub-paragraph (4); and

(b)
the intervals at which payments are to be made under that sub-

paragraph.


Paragraph 26(1)(c) enables an appeal to be brought where the order does

not provide for both of those matters.

      (6)
The authority must—

(a)
keep full accounts of their income and expenditure in respect of

the dwelling; and

(b)
afford to the relevant proprietor, and to any other person who

has an estate or interest in the dwelling, all reasonable facilities

for inspecting, taking copies of and verifying those accounts.

      (7)
The relevant proprietor 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 relevant expenditure (see

sub-paragraph (2));

(b)
requiring the authority to make such financial adjustments (in

the accounts and otherwise) as are necessary to reflect the

tribunal’s declaration.

      (8)
In this paragraph—


“dispossessed landlord or tenant” means a person who was a

lessor, lessee, licensor or licensee under a lease or licence

determined by an order under paragraph 22;


“expenditure” includes administrative costs.

Variation or revocation of interim EDMOs

6     (1)
The local housing authority may vary an interim EDMO if they consider

it appropriate to do so.

      (2)
A variation does not come into force until such time, if any, as is the

operative time for the purposes of this sub-paragraph under paragraph

33 (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 paragraph is exercisable by the

authority either—

(a)
on an application made by a relevant person, or

(b)
on the authority’s own initiative.

      (4)
In this paragraph “relevant person” means any person who has an estate

or interest in the dwelling (other than a person who is a tenant under a

lease or licence granted under paragraph 2(3)(c)).

7     (1)
The local housing authority may revoke an interim EDMO in the

following cases—

(a)
where the authority conclude that there are no steps which they

could appropriately take for the purpose of securing that the

dwelling is occupied (see section (Local housing authority’s duties

once interim EDMO in force)(4));

(b)
where the authority are satisfied that—