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Status of possession order and other court orders

20 (1) The possession order in pursuance of which the original tenancy ended is to be treated, so far as practicable, as if it applies to the new tenancy.

(2) Any court orders made before the commencement date which—

(a) relate to the occupation of the dwelling-house, and

(b) were made in contemplation of, in consequence of or otherwise in connection with the possession order,

are to be treated, so far as practicable, as if they apply to the new tenancy.

Continuity of tenancies

21 (1) The new tenancy and the original tenancy are to be treated for the relevant purposes as—

(a) the same tenancy, and

(b) a tenancy which continued uninterrupted throughout the termination period.

(2) The relevant purposes are—

(a) determining whether the ex-tenant is a successor in relation to the new tenancy,

(b) calculating on or after the commencement date the period qualifying, or the aggregate of such periods, under Schedule 4 to the Housing Act 1985 (c. 68) (qualifying period for right to buy and discount),

(c) determining on or after the commencement date whether the condition set out in paragraph (b) of Ground 8 of Schedule 2 to that Act is met, and

(d) any other purposes specified by the appropriate national authority by order.

(3) In proceedings on a relevant claim the court concerned may order that the new tenancy and the original tenancy are to be treated for the purposes of the claim as—

(a) the same tenancy, and

(b) a tenancy which continued uninterrupted throughout the termination period.

(4) The following are relevant claims—

(a) a claim by the ex-tenant or the ex-landlord against the other for breach of a term or condition of the original tenancy—

(i) in respect of which proceedings are brought on or after the commencement date, or

(ii) in respect of which proceedings were brought, but were not finally determined, before that date,

(b) a claim by the ex-tenant against the ex-landlord for breach of statutory duty in respect of which proceedings are or were brought as mentioned in paragraph (a)(i) or (ii), and

(c) any other claim of a description specified by the appropriate national authority by order.

(5) For the purposes of sub-paragraph (4)(a) proceedings must be treated as finally determined if—

(a) they are withdrawn,

(b) any appeal is abandoned, or

(c) the time for appealing has expired without an appeal being brought.

Compliance with consultation requirements

22 (1) The fact that—

(a) the views of the ex-tenant during the termination period were not sought or taken into account when they should have been sought or taken into account, or

(b) the views of the ex-tenant during that period were sought or taken into account when they should not have been sought or taken into account,

is not to be taken to mean that the consultation requirements were not complied with.

(2) The consultation requirements are—

(a) the requirements under—


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(i) section 105(1) of the Housing Act 1985 (c. 68),

(ii) paragraphs 3 and 4 of Schedule 3A to that Act,

(iii) regulations made under section 27AB of that Act which relate to arranging for ballots or polls with respect to a proposal to enter into a management agreement, and

(iv) section 137(2) of the Housing Act 1996 (c. 52), and

(b) any other requirements specified by the appropriate national authority by order.

Joint tenancies

23 (1) In the application of this Part of this Schedule in relation to an original tenancy which was a joint tenancy, a reference to the dwelling-house being the only or principal home of the ex-tenant is to be treated as a reference to the dwelling-house being the only or principal home of at least one of the ex-tenants of the joint tenancy.

(2) The appropriate national authority may by order provide for this Part of this Schedule to apply in relation to an original tenancy which was a joint tenancy subject to such additional modifications as may be specified in the order.

Supplementary

24 In determining for the purposes of this Part of this Schedule whether a tenancy has ended, any ending which was temporary because the tenancy was restored in consequence of a court order is to be ignored.

25 In this Part of this Schedule—

“appropriate national authority” means—

(a) in relation to England, the Secretary of State, and(b) in relation to Wales, the Welsh Ministers,

“assured shorthold tenancy” and “assured tenancy” have the same meanings as in Part 1 of the Housing Act 1988 (c. 50) but do not include a demoted tenancy to which section 20B of that Act applies,

“the commencement date” means the day on which section (Possession orders relating to certain tenancies) comes into force,

“demoted tenancy” means a tenancy to which section 20B of the Act of 1988 or section 143A of the Housing Act 1996 (c. 52) applies,

“dwelling-house”—

(a) in relation to an assured tenancy, or a tenancy to which section 20B of the Act of 1988 applies, has the same meaning as in Part 1 of that Act,(b) in relation to a tenancy to which section 143A of the Act of 1996 applies, has the same meaning as in Chapter 1A of Part 5 of that Act,(c) in relation to an introductory tenancy, has the meaning given by section 139 of the Act of 1996, and(d) in relation to a secure tenancy, has the meaning given by section 112 of the Housing Act 1985 (c. 68),

“ex-landlord”, means the person who was the landlord under an original tenancy,

“ex-tenant” means the person who was the tenant under an original tenancy,

“introductory tenancy” has the same meaning as in Chapter 1 of Part 5 of the Act of 1996,

“modification” includes omission,

“new tenancy” means a tenancy which is treated as arising by virtue of paragraph 16,

“original tenancy” has the meaning given by paragraph 15,

“possession order”, in relation to a tenancy, means a court order for the possession of the dwelling-house,


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“secure tenancy” has the same meaning as in Part 4 of the Act of 1985,

“successor”—

(a) in relation to a new tenancy which is an assured tenancy, has the same meaning as in section 17 of the Act of 1988,(b) in relation to a new tenancy which is a demoted tenancy to which section 143A of the Act of 1996 applies, has the meaning given by section 143J of that Act,(c) in relation to a new tenancy which is an introductory tenancy, has the same meaning as in section 132 of the Act of 1996, and(d) in relation to a new tenancy which is a secure tenancy, has the same meaning as in section 88 of the Act of 1985.

“termination period” has the meaning given by paragraph 16(3).’.— [Liz Blackman.]

Brought up, read the first time, and added to the Bill.

New Schedule 3


Service charges: provision of information and designated accounts

Landlord and Tenant Act 1985 (c. 70)

1 The Landlord and Tenant Act 1985 is amended as follows.

2 For section 21 (as substituted by section 152 of the Commonhold and Leasehold Reform Act 2002 (c. 15)) (regular statements of account) substitute—

“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.


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(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,

“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
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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)—

(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

(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,


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(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;

(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;


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