(85-91)

House of Commons

Session 2002 - 03
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Other Bills before Parliament

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(a)
at the end of the period of 16 weeks beginning with the date of

the decision, if no application for judicial review is made in

respect of the decision within that period, or

(b)
if such an application is so made, at the time when—

(i)
a decision on the application which upholds the relevant

decision becomes final, or

(ii)
the application is abandoned or otherwise ceases to have

effect.

      (5)
A relevant decision within sub-paragraph (3)(b), or a decision within

sub-paragraph (4)(b), becomes final—

(a)
if not appealed against, at the end of the period for bringing an

appeal, or

(b)
if appealed against, at the time when the appeal (or any further

appeal) is disposed of.

      (6)
An appeal is disposed of—

(a)
if it is determined and the period for bringing any further appeal

has ended, or

(b)
if it is abandoned or otherwise ceases to have effect.

      (7)
Where an initial demolition notice ceases to be in force under sub-

paragraph (2), the landlord must, as soon as is reasonably practicable,

serve a notice on the tenant which informs him—

(a)
that the notice has ceased to be in force as from the date in

question, and

(b)
of the reason why it has ceased to be in force.

      (8)
If, while an initial demolition notice is in force in respect of a dwelling-

house, a final demolition notice comes into force under paragraph 13 of

Schedule 5 in respect of that dwelling-house, the initial demolition notice

ceases to be in force as from the date when the final demolition notice

comes into force.

      (9)
In such a case the final demolition notice must state that it is replacing

the initial demolition notice.

Restriction on serving further demolition notices

4     (1)
This paragraph applies where an initial demolition notice (“the relevant

notice”) has (for any reason) ceased to be in force in respect of a dwelling-

house without it being demolished.

      (2)
No further initial demolition notice may be served in respect of the

dwelling-house during the period of 5 years following the time when the

relevant notice ceases to be in force, unless—

(a)
it is served with the consent of the Secretary of State, and

(b)
it states that it is so served.

      (3)
Subject to sub-paragraph (4), no final demolition notice may be served in

respect of the dwelling-house during the period of 5 years following the

time when the relevant notice ceases to be in force, unless—

(a)
it is served with the consent of the Secretary of State, and

(b)
it states that it is so served.

      (4)
Sub-paragraph (3) does not apply to a final demolition notice which is

served at a time when an initial demolition notice served in accordance

with sub-paragraph (2) is in force.

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      (5)
The Secretary of State’s consent under sub-paragraph (2) or (3) may be

given subject to compliance with such conditions as he may specify.

Service of notices

5
Paragraph 15 of Schedule 13 (service of notices) applies in relation to

notices under this Schedule as it applies in relation to notices under

paragraph 13 or 14 of that Schedule.

Interpretation

6     (1)
In this Schedule any reference to the landlord, in the context of a

reference to the demolition or intended demolition of any premises,

includes a reference to a superior landlord.

      (2)
In this Schedule—


“final demolition notice” means a final demolition notice served

under paragraph 13 of Schedule 5;


“premises” means premises of any description;


“scheme” includes arrangements of any description.””
262
Insert the following new Schedule—

“Provisions relating to tenancy deposit schemes

Schemes to be custodial schemes or insurance schemes

1     (1)
A tenancy deposit scheme must be either—

(a)
a custodial scheme, or

(b)
an insurance scheme.

      (2)
A “custodial scheme” is a scheme under which—

(a)
tenancy deposits in connection with shorthold tenancies are paid

to the landlords under the tenancies,

(b)
amounts representing the deposits are then paid by the landlords

into a designated account held by the scheme administrator, and

(c)
those amounts are kept by the scheme administrator in that

account until such time as, in accordance with the scheme, they

fall to be paid (wholly or in part) to the landlords or tenants

under the tenancies.

      (3)
An “insurance scheme” is a scheme under which—

(a)
tenancy deposits in connection with shorthold tenancies are paid

to the landlords under the tenancies,

(b)
such deposits are retained by the landlords on the basis that, at

the end of the tenancies—

(i)
such amounts in respect of the deposits as are agreed

between the tenants and the landlords will be repaid to

the tenants, and

(ii)
such amounts as the tenants request to be repaid to them

and which are not so repaid will, in accordance with

directions given by the scheme administrator, be paid

into a designated account held by the scheme

administrator,

(c)
amounts paid into that account are kept by the scheme

administrator in the account until such time as, in accordance

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with the scheme, they fall to be paid (wholly or in part) to the

landlords or tenants under the tenancies,

(d)
landlords undertake to reimburse the scheme administrator, in

accordance with directions given by him, in respect of any

amounts in respect of the deposits paid to the tenants by the

scheme administrator (other than amounts paid to the tenants as

mentioned in paragraph (c)), and

(e)
insurance is maintained by the scheme administrator in respect

of failures by landlords to comply with such directions.

Provisions applying to custodial and insurance schemes

2     (1)
A custodial scheme must conform with the following provisions—


paragraphs 3 and 4, and


paragraphs 9 and 10.

      (2)
An insurance scheme must conform with the following provisions—


paragraphs 5 to 8, and


paragraphs 9 and 10.

Custodial schemes: general

3     (1)
This paragraph applies to a custodial scheme.

      (2)
The scheme must provide for any landlord who receives a tenancy

deposit in connection with a shorthold tenancy to pay an amount equal

to the deposit into a designated account held by the scheme

administrator.

      (3)
The designated account must not contain anything other than amounts

paid into it as mentioned in sub-paragraph (2) and any interest accruing

on such amounts.

      (4)
Subject to sub-paragraph (5), the scheme administrator may retain any

interest accruing on such amounts.

      (5)
The relevant arrangements under section (Tenancy deposit schemes)(1)

may provide for any amount paid in accordance with paragraph 4 to be

paid with interest—

(a)
in respect of the period during which the relevant amount has

remained in the designated account, and

(b)
at such rate as the appropriate national authority may specify by

order.

      (6)
With the exception of any interest retained in accordance with sub-

paragraph (4), nothing contained in the designated account may be used

to fund the administration of the scheme.

      (7)
In this paragraph “the relevant amount”, in relation to a tenancy deposit,

means the amount paid into the designated account in respect of the

deposit.

Custodial schemes: termination of tenancies

4     (1)
A custodial scheme must make provision—

(a)
for enabling the tenant and the landlord under a shorthold

tenancy in connection with which a tenancy deposit is held in

accordance with the scheme to apply, at any time after the

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tenancy has ended, for the whole or part of the relevant amount

to be paid to him, and

(b)
for such an application to be dealt with by the scheme

administrator in accordance with the following provisions of this

paragraph.

      (2)
Sub-paragraph (3) applies where the tenant and the landlord notify the

scheme administrator that they have agreed that the relevant amount

should be paid—

(a)
wholly to one of them, or

(b)
partly to the one and partly to the other.

      (3)
If, having received such a notification, the scheme administrator is

satisfied that the tenant and the landlord have so agreed, the scheme

administrator must arrange for the relevant amount to be paid, in

accordance with the agreement, within the period of 10 days beginning

with the date on which the notification is received by the scheme

administrator.

      (4)
Sub-paragraph (5) applies where the tenant or the landlord notifies the

scheme administrator—

(a)
that a court has decided that the relevant amount is payable

either wholly to one of them or partly to the one and partly to the

other, and

(b)
that decision has become final.

      (5)
If, having received such a notification, the scheme administrator is

satisfied as to the matters mentioned in sub-paragraph (4)(a) and (b), the

scheme administrator must arrange for the relevant amount to be paid,

in accordance with the decision, within the period of 10 days beginning

with the date on which the notification is received by the scheme

administrator.

      (6)
For the purposes of this Schedule a decision becomes final—

(a)
if not appealed against, at the end of the period for bringing an

appeal, or

(b)
if appealed against, at the time when the appeal (or any further

appeal) is disposed of.

      (7)
An appeal is disposed of—

(a)
if it is determined and the period for bringing any further appeal

has ended, or

(b)
if it is abandoned or otherwise ceases to have effect.

      (8)
In this paragraph “the relevant amount” has the meaning given by

paragraph 3(7).

Insurance schemes: general

5     (1)
This paragraph applies to an insurance scheme.

      (2)
The scheme must provide that any landlord by whom a tenancy deposit

is retained under the scheme must give the scheme administrator an

undertaking that, if the scheme administrator directs the landlord to pay

him any amount in respect of the deposit in accordance with paragraph

6(3) or (7), the landlord will comply with such a direction.

      (3)
The scheme must require the scheme administrator to effect and

maintain in force adequate insurance in respect of failures by landlords

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by whom tenancy deposits are retained under the scheme to comply

with such directions as are mentioned in sub-paragraph (2).

      (4)
If the scheme provides for landlords participating in the scheme to be

members of the scheme, the scheme may provide for a landlord’s

membership to be terminated by the scheme administrator in the event

of any such failure on the part of the landlord.

      (5)
The scheme may provide for landlords participating in the scheme to

pay to the scheme administrator—

(a)
fees in respect of the administration of the scheme, and

(b)
contributions in respect of the cost of the insurance referred to in

sub-paragraph (3).

Insurance schemes: termination of tenancies

6     (1)
An insurance scheme must make provision in accordance with this

paragraph and paragraphs 7 and 8 in relation to the respective

obligations of the landlord and the scheme administrator where—

(a)
a tenancy deposit has been retained by the landlord under the

scheme, and

(b)
the tenancy has ended.

      (2)
Sub-paragraphs (3) to (9) apply where the tenant notifies the scheme

administrator that—

(a)
the tenant has requested the landlord to repay to him the whole

or any part of the deposit, and

(b)
the amount in question (“the outstanding amount”) has not been

repaid to him within the period of 10 days beginning with the

date on which the request was made.

      (3)
On receiving a notification in accordance with sub-paragraph (2), the

scheme administrator must direct the landlord—

(a)
to pay an amount equal to the outstanding amount into a

designated account held by the scheme administrator, and

(b)
to do so within the period of 10 days beginning with the date on

which the direction is received by the landlord.

      (4)
The following sub-paragraphs apply where the tenant or the landlord

notifies the scheme administrator—

(a)
that a court has decided that the outstanding amount is payable

either wholly to one of them or partly to the one and partly to the

other and the decision has become final (see paragraph 4(6) and

(7)), or

(b)
that the tenant and landlord have agreed that such an amount is

to be paid either wholly to one of them or partly to the one and

partly to the other.

      (5)
If the scheme administrator is satisfied as to the matters mentioned in

sub-paragraph (4)(a) or (b) (as the case may be), he must—

(a)
pay to the tenant any amount due to him in accordance with the

decision or agreement (and, to the extent possible, pay that

amount out of any amount held by him by virtue of sub-

paragraph (3)), and

(b)
comply with sub-paragraph (6) or (7), as the case may be.

      (6)
Where any amount held by the scheme administrator by virtue of sub-

paragraph (3) is more than any amount due to the tenant in accordance

(  90  )

with the decision or agreement, the scheme administrator must pay the

balance to the landlord.

      (7)
Where any amount so held by the scheme administrator is less than any

amount so due to the tenant, the scheme administrator must direct the

landlord to pay him the difference within the period of 10 days

beginning with the date on which the direction is received by the

landlord.

      (8)
The scheme administrator must pay any amounts required to be paid to

the tenant or the landlord as mentioned in sub-paragraph (5)(a) or (6)

within 10 days beginning with the date on which the notification is

received by the scheme administrator.

      (9)
The landlord must comply with any direction given in accordance with

sub-paragraph (3) or (7).

7     (1)
The designated account held by the scheme administrator must not

contain anything other than amounts paid into it as mentioned in

paragraph 6(3) and any interest accruing on such amounts.

      (2)
Subject to sub-paragraph (3), the scheme administrator may retain any

interest accruing on such amounts.

      (3)
The relevant arrangements under section (Tenancy deposit schemes)(1)

may provide for any amount paid in accordance with paragraph 6(5)(a)

or (6) to be paid with interest—

(a)
in respect of the period during which the relevant amount has

remained in the designated account, and

(b)
at such rate as the appropriate national authority may specify for

the purposes of paragraph 3(5)(b).

      (4)
With the exception of any interest retained in accordance with sub-

paragraph (2), nothing contained in the designated account may be used

to fund the administration of the scheme.

      (5)
In this paragraph “the relevant amount”, in relation to a tenancy deposit,

means the amount, in respect of the deposit, paid into the designated

account by virtue of a direction given in accordance with paragraph 6(3).

8     (1)
The scheme must make provision for preventing double recovery by a

tenant in respect of the whole or part of the deposit, and may in that

connection make provision—

(a)
for excluding or modifying any requirement imposed by the

scheme in accordance with paragraph 6 or 7, and

(b)
for requiring the repayment of amounts paid to the tenant by the

scheme administrator.

      (2)
In this paragraph “double recovery”, in relation to an amount of a

tenancy deposit, means recovering that amount both from the scheme

administrator and from the landlord.

Notifications to tenants

9     (1)
Every custodial scheme or insurance scheme must provide for the

scheme administrator to respond as soon as is practicable to any request

within sub-paragraph (2) made by the tenant under a shorthold tenancy.

      (2)
A request is within this sub-paragraph if it is a request by the tenant to

receive confirmation that a deposit paid in connection with the tenancy

is being held in accordance with the scheme.

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Dispute resolution procedures

10    (1)
Every custodial scheme or insurance scheme must provide for facilities

to be available for enabling disputes relating to tenancy deposits subject

to the scheme to be resolved without recourse to litigation.

      (2)
The scheme must not, however, make the use of such facilities

compulsory in the event of such a dispute.

Power to amend

11
The appropriate national authority may by order make such

amendments of this Schedule as it considers appropriate.

Interpretation

12
In this Schedule references to tenants under shorthold tenancies include

references to persons who, in accordance with arrangements made with

such tenants, have paid tenancy deposits on behalf of the tenants.”
Schedule 10
263
Page 222, line 22, at end insert “; and

“( )
in the case of applications under section 97(4) or (7) or (Making of

interim EDMOs) (1), requiring the service of copies of the draft

orders submitted with the applications.”
264
Page 223, line 20, leave out paragraph 5 and insert—

“5    (1)
Procedure regulations may include—

(a)
provision relating to the supply of information and documents

by a party to the proceedings, and

(b)
in particular any provision authorised by the following

provisions of this paragraph.

      (2)
The regulations may include provision for requiring, or empowering the

tribunal to require, a party to proceedings before a tribunal—

(a)
to supply to the tribunal information or documents specified, or

of a description specified, in the regulations or in an order made

by the tribunal;

(b)
to supply to any other party copies of any information or

documents supplied to the tribunal;

(c)
to supply any such information, documents or copies by such

time as is specified in or determined in accordance with the

regulations or order.

      (3)
The regulations may also include provision—

(a)
for granting a party to the proceedings such disclosure or

inspection of documents, or such right to further information, as

might be granted by a county court;

(b)
for requiring persons to attend to give evidence and produce

documents;

(c)
for authorising the administration of oaths to witnesses.

      (4)
The regulations may include provision empowering a tribunal to

dismiss, or allow, the whole or part of an appeal or application in a case

where a party to the proceedings has failed to comply with—