House of Commons Public Bill Committee Proceedings

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Session 2007 - 08
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Other Bills before Parliament

Report Stage Proceedings: 31st March 2008
349

Housing and Regeneration Bill, continued

“21
Service charge information

(1)
The appropriate national authority may make regulations about the

provision, by landlords of dwellings to each tenant by whom service

charges are payable, of information about service charges.

(2)
The regulations must, subject to any exceptions provided for in the

regulations, require the landlord to provide information about—

(a)
the service charges of the tenant,

(b)
any associated service charges, and

(c)
relevant costs relating to service charges falling within

paragraph (a) or (b).

(3)
The regulations must, subject to any exceptions provided for in the

regulations, require the landlord to provide the tenant with a report by

a qualified person on information which the landlord is required to

provide by virtue of this section.

(4)
The regulations may make provision about—

(a)
information to be provided by virtue of subsection (2),

(b)
other information to be provided (whether in pursuance of a

requirement or otherwise),

(c)
reports of the kind mentioned in subsection (3),

(d)
the period or periods in relation to which information or

reports are to be provided,

(e)
the times at or by which information or reports are to be

provided,

(f)
the form and manner in which information or reports are to be

provided (including in particular whether information is to be

contained in a statement of account),

(g)
the descriptions of persons who are to be qualified persons for

the purposes of subsection (3).

(5)
Subsections (2) to (4) do not limit the scope of the power conferred by

subsection (1).

(6)
Regulations under this section may—

(a)
make different provision for different cases or descriptions of

case or for different purposes,

(b)
contain such supplementary, incidental, consequential,

transitional, transitory or saving provision as the appropriate

national authority considers appropriate.

(7)
Regulations under this section are to be made by statutory instrument

which—

(a)
in the case of regulations made by the Secretary of State, is to

be subject to annulment in pursuance of a resolution of either

House of Parliament, and

(b)
in the case of regulations made by the Welsh Ministers, is to

be subject to annulment in pursuance of a resolution of the

National Assembly for Wales.

(8)
In this section—

“the appropriate national authority”—

(a)
in relation to England, means the Secretary of State, and

(b)
in relation to Wales, means the Welsh Ministers,

Report Stage Proceedings: 31st March 2008
350

Housing and Regeneration Bill, continued

“associated service charges”, in relation to a tenant by whom a

contribution to relevant costs is payable as a service charge, means

service charges of other tenants so far as relating to the same costs.”

3    (1)
Section 21A (withholding of service charges) is amended as follows.

      (2)
For subsection (1) substitute—

“(1)
A tenant may withhold payment of a service charge if—

(a)
the landlord has not provided him with information or a

report—

(i)
at the time at which, or

(ii)
(as the case may be) by the time by which,


he is required to provide it by virtue of section 21, or

(b)
the form or content of information or a report which the

landlord has provided him with by virtue of that section (at

any time) does not conform exactly or substantially with the

requirements prescribed by regulations under that section.”

      (3)
In subsection (2)—

(a)
in paragraph (a) for “accounting period to which the document”

substitute “period to which the information or report”, and

(b)
for paragraph (b) substitute—

“(b)
amounts standing to the tenant’s credit in relation to

the service charges at the beginning of that period.”

      (4)
In subsection (3)—

(a)
in paragraph (a) for “document concerned has been supplied”

substitute “information or report concerned has been provided”, and

(b)
for paragraph (b) substitute—

“(b)
in a case within paragraph (b) of that subsection, after

information or a report conforming exactly or

substantially with requirements prescribed by

regulations under section 21 has been provided to the

tenant by the landlord by way of replacement of that

previously provided.”

4    (1)
Section 22 (as substituted by section 154 of the Commonhold and Leasehold

Reform Act 2002 (c. 15)) (inspection etc of documents) is amended as follows.

      (2)
In subsection (1)(a) for the words from “the matters” to “under” substitute

“information required to be provided to him by virtue of”.

      (3)
In subsection (3) for “supplied with the statement of account under” substitute

“provided with the information concerned by virtue of”.

      (4)
In subsection (4)—

(a)
for “statement of account”, wherever it appears, substitute

“information”,

(b)
for “supplied”, wherever it appears, substitute “provided”, and

(c)
in paragraph (b) for “21(4)” substitute “21”.

5
In section 23(1) (as substituted by paragraph 1 of Schedule 10 to the

Commonhold and Leasehold Reform Act 2002 (c. 15) (information held by

superior landlord)—

(a)
for “a statement of account which the landlord is required to supply

under” substitute “information which the landlord is required to

provide by virtue of”, and

(b)
after “of the relevant information” insert “which relates to those

matters”.

6
In section 23A(4) (effect of change of landlord)—

Report Stage Proceedings: 31st March 2008
351

Housing and Regeneration Bill, continued

(a)
in paragraph (a) after “23” insert “and any regulations under section

21”, and

(b)
after paragraph (b) insert “and

“(c)
any regulations under section 21 apply subject to any

modifications contained in the regulations.”

7
In section 26(1) (exception: tenants of certain public authorities) for

“statements of account” substitute “service charge information, reports on

such information”.

8
In section 27 (exception: rent registered and not entered as variable) for

“statements of account” substitute “service charge information, reports on

such information”.

9
Omit section 28 (meaning of “qualified accountant”).

10
In section 39 (index of defined expressions) omit the entry in the Table for

“qualified accountant”.

Landlord and Tenant Act 1987 (c. 31)

11
The Landlord and Tenant Act 1987 is amended as follows.

12  (1)
Section 42A (service charge contributions to be held in designated account) is

amended as follows.

      (2)
In subsection (2)—

(a)
for paragraph (b) substitute—

“(b)
any other sums held in the account are sums standing

to the credit of one or more other trust funds,”, and

(b)
for “Secretary of State” substitute “appropriate national authority”.

      (3)
After subsection (2) insert—

“(2A)
The appropriate national authority may by regulations ensure that a

payee who holds more than one trust fund in the same designated

account cannot move any of those funds to another designated account

unless conditions specified in the regulations are met.”

      (4)
In subsection (3)(a)—

(a)
after “subsection (1) is” insert “, or regulations under subsection (2A)

are,”, and

(b)
for “them” substitute “such documents”.

      (5)
In subsections (5), (6), (7) and (8) for “this section” substitute “subsection (3)”.

      (6)
After subsection (9) insert—

“(9A)
Regulations under subsection (2A) may include provision about —

(a)
the circumstances in which a contributing tenant who has

reasonable grounds for believing that the payee has not

complied with a duty imposed on him by the regulations may

withhold payment of a service charge,

(b)
the period for which payment may be so withheld,

(c)
the amount of service charge that may be so withheld;


and the regulations may provide that any provisions of the

contributing tenant’s tenancy relating to non-payment or late payment

of service charge do not have effect in relation to the period for which

the payment is so withheld.”

      (7)
In subsection (10)—

(a)
after “this section” insert “or in regulations under subsection (2A)”,

and

Report Stage Proceedings: 31st March 2008
352

Housing and Regeneration Bill, continued

(b)
for “Secretary of State” substitute “appropriate national authority”.

      (8)
After subsection (10) insert—

“(10A)
Regulations under this section may—

(a)
make different provision for different cases, including

different provision for different areas,

(b)
contain such supplementary, incidental, consequential,

transitional, transitory or saving provision as the appropriate

national authority considers appropriate.

(10B)
Regulations under this section are to be made by statutory instrument

which—

(a)
in the case of regulations made by the Secretary of State, is to

be subject to annulment in pursuance of a resolution of either

House of Parliament, and

(b)
in the case of regulations made by the Welsh Ministers, is to

be subject to annulment in pursuance of a resolution of the

National Assembly for Wales.”

      (9)
In subsection (11)—

(a)
after “section—” insert—

““the appropriate national authority”—

(i)
in relation to England, means the Secretary of State, and

(ii)
in relation to Wales, means the Welsh Ministers,”, and

(b)
in the definition of “relevant financial institution” for “Secretary of

State” substitute “appropriate national authority”.

13  (1)
Section 53 (regulations and orders) is amended as follows.

      (2)
In subsection (2)(b) omit “or 42A”.

      (3)
After subsection (2) insert—

“(3)
This section does not apply to any power to make regulations under

section 42A.”

Leasehold Reform, Housing and Urban Development Act 1993 (c. 28)

14
The Leasehold Reform, Housing and Urban Development Act 1993 is

amended as follows.

15  (1)
Section 78 (management audits) is amended as follows.

      (2)
In subsection (4) for paragraphs (a) and (b), and the “and” following paragraph

(b), substitute—

“(a)
he is—

(i)
a member of a body which is a recognised supervisory

body for the purposes of Part 42 of the Companies

Act 2006;

(ii)
a qualified surveyor; or

(iii)
where the landlord is a relevant landlord, a member of

the Chartered Institute of Public Finance and

Accountancy;

(b)
he is not any of the following—

(i)
an officer, employee or partner of the landlord or,

where the landlord is a company, of an associated

company;

(ii)
a person who is a partner or employee of any such

officer or employee;

Report Stage Proceedings: 31st March 2008
353

Housing and Regeneration Bill, continued

(iii)
an agent of the landlord who is a managing agent for

any premises to which the audit in question relates; or

(iv)
an employee or partner of any such agent; and”.

      (3)
After subsection (5) insert—

“(5A)
For the purposes of subsection (4)(b)(i) above a company is associated

with a landlord company if it is the landlord’s holding company, a

subsidiary of the landlord or another subsidiary of the landlord’s

holding company.

(5B)
Subsection (4)(b)(i) does not apply where the landlord is a relevant

landlord.

(5C)
For the purposes of subsection (4)(b)(iii) above a person is a managing

agent for any premises if he has been appointed to discharge any of the

landlord’s obligations relating to the management by the landlord of

the premises.”

      (4)
After subsection (6) insert—

“(7)
In this section—

“holding company” and “subsidiary” have the meanings given by section

1159 of the Companies Act 2006;

“relevant landlord” means—

(a)
a local authority (within the meaning of the Landlord and Tenant

Act 1985);

(b)
a National Park authority; or

(c)
a new town corporation (within the meaning of the Act of

1985).”

16
In section 79(2)(a) (rights exercisable in connection with management

audits)—

(a)
for the words from “the matters” to “supplied” substitute “information

required to be provided”, and

(b)
for “under” substitute “by virtue of”.’.

Lembit Öpik

Andrew George

Simon Hughes

Not selected  230

Page  135,  line  15  [Schedule  1],  at end insert—

  ‘(3A)
At least one member of the national board shall be a person who is on the

London HCA board, with knowledge and experience of London, and

representing London local authorities.’.

Lembit Öpik

Andrew George

Simon Hughes

Not called  233

Page  138,  line  13  [Schedule  1],  after ‘year’, insert ‘, including how it has

Report Stage Proceedings: 31st March 2008
354

Housing and Regeneration Bill, continued

contributed to the achievement of sustainable development,’.

Secretary Hazel Blears

Agreed to  27

Page  175,  line  12  [Schedule  7],  at end insert—

‘Greater London Authority Act 1999 (c. 29)

8A
The Greater London Authority Act 1999 is amended as follows.

8B  (1)
Section 333A (the London housing strategy) is amended as follows.

      (2)
In subsection (3)—

(a)
in paragraph (a) for “Housing Corporation for the purpose of making

housing grant” substitute “Homes and Communities Agency”, and

(b)
in paragraph (b)—

(i)
for “Housing Corporation”, in the first place where it appears,

substitute “Homes and Communities Agency”,

(ii)
for “making housing grant” substitute “giving housing

financial assistance”, and

(iii)
omit the words from “(and see also” to the end of the

paragraph.

      (3)
In subsection (4)—

(a)
in paragraph (a)—

(i)
for “grant”, in both places where it appears, substitute

“housing financial assistance”,

(ii)
for “made” substitute “given”, and

(iii)
for “payable” substitute “given”, and

(b)
in paragraph (b) for “grant” substitute “housing financial assistance”.

      (4)
In subsection (8)(a) for “Housing Corporation” substitute “Homes and

Communities Agency”.

      (5)
In subsection (10)—

(a)
for the definition of “housing grant” substitute—

““housing financial assistance” means financial assistance given

under section 22 of the Housing and Regeneration Act 2008 in

connection with the provision of housing accommodation;”,

(b)
after the definition of “local housing authority” insert—

““provide”, in relation to houses or housing accommodation,

includes—

(i)
provide by way of acquisition, construction, conversion,

improvement or repair; and

(ii)
provide indirectly;”, and

(c)
omit the words from “and the reference” to the end.

8C
In section 333D (duty to have regard to the London housing strategy)—

(a)
in the heading for “Housing Corporation” substitute “Homes and

Communities Agency”, and

(b)
in subsection (1) for the words from “under” to “Corporation”

substitute “relating to Greater London and conferred by or under Part

1 of the Housing and Regeneration Act 2008 (other than any function

Report Stage Proceedings: 31st March 2008
355

Housing and Regeneration Bill, continued

conferred by virtue of section 13 or 14 of that Act), the Homes and

Communities Agency”.’.

Secretary Hazel Blears

Agreed to  51

Page  189,  line  44  [Schedule  11],  column 2, at beginning insert—

‘In section 85(3)(a), the words from “or payments” to

“profits),”.’.

Secretary Hazel Blears

Agreed to  7

Page  189,  line  50  [Schedule  11],  at end insert—

‘Housing Associations Act 1985
Section 33A.’.

(c. 69)

Secretary Hazel Blears

Agreed to  52

Page  189,  line  50  [Schedule  11],  at end insert—

‘Landlord and Tenant Act 1985
Section 28.

(c. 70)

In section 39, the entry in the Table for “qualified

accountant”.

Landlord and Tenant Act 1987
In section 53(2)(b), the words “or 42A”.

(c. 31)

In Schedule 2, paragraph 9 and the italic heading

before it.’.

Secretary Hazel Blears

Agreed to  53

Page  189,  line  51  [Schedule  11],  column 2, at beginning insert—

‘In section 9(3), the words from “or payments” to

“profits)”.’.

Secretary Hazel Blears

Agreed to  8

Page  190,  line  2  [Schedule  11],  at end insert—

‘In Schedule 6, paragraph 24.’.