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Housing Bill


Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation

68

 

(b)   

the authority have not exercised any relevant function in respect of the

house at any time after the making of the interim management order.

(10)   

In subsection (9) “relevant function” means the function of—

(a)   

granting a licence under Part 2 or 3,

(b)   

serving a temporary exemption notice under section 61 or section 83, or

5

(c)   

making a final management order under section 107.

98      

Special interim management orders

(1)   

This section applies to a house if the whole of it is occupied either—

(a)   

under a single tenancy or licence that is not an exempt tenancy or

licence under section 76(3) or (4), or

10

(b)   

under two or more tenancies or licences in respect of different

dwellings contained in it, none of which is an exempt tenancy or licence

under section 76(3) or (4).

(2)   

A residential property tribunal may only authorise the authority to make an

interim management order in respect of such a house under section 97(7) if it

15

considers that both of the following conditions are satisfied.

(3)   

The first condition is that the circumstances relating to the house fall within

any category of circumstances prescribed for the purposes of this subsection by

an order under subsection (5).

(4)   

The second condition is that the making of the order is necessary for the

20

purpose of protecting the health, safety or welfare of persons occupying,

visiting or otherwise engaging in lawful activities in the locality of the house.

(5)   

The appropriate national authority may by order—

(a)   

prescribe categories of circumstances for the purposes of subsection (3),

(b)   

provide for any of the provisions of this Act to apply in relation to

25

houses to which this section applies, or interim or final management

orders made in respect of them, with any modifications specified in the

order.

(6)   

The categories prescribed by an order under subsection (5) are to reflect one or

more of the following—

30

(a)   

the first or second set of general conditions mentioned in subsection (3)

or (6) of section 77, or

(b)   

any additional set of conditions specified under subsection (7) of that

section,

   

but (in each case) with such modifications as the appropriate national authority

35

considers appropriate to adapt them to the circumstances of a single house.

(7)   

In this section “house” has the same meaning as in Part 3 (see section 94).

(8)   

In this Part—

(a)   

any reference to “the house”, in relation to an interim management

order under section 97(7), is a reference to the house to which the order

40

relates, and

(b)   

any such reference includes (where the context permits) a reference to

any yard, garden, outhouses and appurtenances belonging to, or

usually enjoyed with, it (or any part of it).

 

 

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation

69

 

99      

The health and safety condition

(1)   

This section explains what “the health and safety condition” is for the purposes

of section 97.

(2)   

The health and safety condition is that the making of an interim management

order is necessary for the purpose of protecting the health, safety or welfare of

5

persons occupying the house, or persons occupying or having an estate or

interest in any premises in the vicinity.

(3)   

A threat to evict persons occupying a house in order to avoid the house being

required to be licensed under Part 2 may constitute a threat to the welfare of

those persons for the purposes of subsection (2).

10

   

This does not affect the generality of that subsection.

(4)   

The health and safety condition is not to be regarded as satisfied for the

purposes of section 97(2)(b)(ii) or (3)(c)(ii) where both of the conditions in

subsections (5) and (6) are satisfied.

(5)   

The first condition is that the local housing authority either—

15

(a)   

(in a case within section 97(2)(b)(ii)) are required by section 5 (general

duty to take enforcement action in respect of category 1 hazards) to take

a course of action within subsection (2) of that section in relation to the

house, or

(b)   

(in a case within section 97(3)(c)(ii)) consider that on the revocation

20

coming into force they will be required to take such a course of action.

(6)   

The second condition is that the local housing authority consider that the

health, safety or welfare of the persons in question would be adequately

protected by taking that course of action.

100     

Operation of interim management orders

25

(1)   

This section deals with the time when an interim management order comes

into force or ceases to have effect.

(2)   

The order comes into force when it is made, unless it is made under section

97(3).

(3)   

If the order is made under section 97(3), it comes into force when the revocation

30

of the licence comes into force.

(4)   

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.

(5)   

If the order provides that it is to cease to have effect on a date falling before the

35

end of that period, it accordingly ceases to have effect on that date.

(6)   

If the order is made under section 97(3)—

(a)   

it must include a provision for determining the date on which it will

cease to have effect, and

(b)   

it accordingly ceases to have effect on the date so determined.

40

(7)   

That date must be no later than 12 months after the date on which the order

comes into force.

(8)   

Subsections (9) and (10) apply where—

 

 

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation

70

 

(a)   

a final management order (“the FMO”) has been made under section

107 so as to replace the order (“the IMO”), but

(b)   

the FMO has not come into force because of an appeal to a residential

property tribunal under paragraph 24 of Schedule 6 against the making

of the FMO.

5

(9)   

If—

(a)   

the house would (but for the IMO being in force) be required to be

licensed under Part 2 or 3 of this Act (see section 60(1) or 82(1)), and

(b)   

the date on which—

(i)   

the FMO,

10

(ii)   

any licence under Part 2 or 3, or

(iii)   

another interim management order,

   

comes into force in relation to the house (or part of it) following the

disposal of the appeal is later than the date on which the IMO would

cease to have effect apart from this subsection,

15

   

the IMO continues in force until that later date.

(10)   

If, on the application of the authority, the tribunal makes an order providing

for the IMO to continue in force, pending the disposal of the appeal, until a date

later than that on which the IMO would cease to have effect apart from this

subsection, the IMO accordingly continues in force until that later date.

20

(11)   

This section has effect subject to sections 105 and 106 (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 24 or 28 of

Schedule 6.

101     

Local housing authority’s duties once interim management order in force

25

(1)   

A local housing authority who have made an interim management order in

respect of a house must comply with the following provisions as soon as

practicable after the order has come into force.

(2)   

The authority must first take any immediate steps which they consider to be

necessary for the purpose of protecting the health, safety or welfare of persons

30

occupying the house, or persons occupying or having an estate or interest in

any premises in the vicinity.

(3)   

The authority must also take such other steps as they consider appropriate

with a view to the proper management of the house pending—

(a)   

the grant of a licence or the making of a final management order in

35

respect of the house as mentioned in subsection (4) or (5), or

(b)   

the revocation of the interim management order as mentioned in

subsection (5).

(4)   

If the house would (but for the order being in force) be required to be licensed

under Part 2 or 3 of this Act (see section 60(1) or 82(1)), the authority must, after

40

considering all the circumstances of the case, decide to take one of the

following courses of action—

(a)   

to grant a licence under that Part in respect of the house, or

(b)   

to make a final management order in respect of it under section 107(1).

 

 

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation

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(5)   

If subsection (4) does not apply to the house, the authority must, after

considering all the circumstances of the case, decide to take one of the

following courses of action—

(a)   

to make a final management order in respect of the house under section

107(3), or

5

(b)   

to revoke the order under section 106 without taking any further action.

(6)   

In the following provisions, namely—

(a)   

subsections (3) and (4), and

(b)   

section 96(3)(b),

   

the reference to the grant of a licence under Part 2 or 3 in respect of the house

10

includes a reference to serving a temporary exemption notice under section 61

or section 83 in respect of it (whether or not a notification is given under

subsection (1) of that section).

(7)   

For the avoidance of doubt, the authority’s duty under subsection (3) includes

taking such steps as are necessary to ensure that, while the order is in force,

15

reasonable provision is made for insurance of the house against destruction or

damage by fire or other causes.

102     

General effect of interim management orders

(1)   

This section applies while an interim management order is in force in relation

to a house.

20

(2)   

The rights and powers conferred by subsection (3) are exercisable by the

authority in performing their duties under section 101(1) to (3) in respect of the

house.

(3)   

The authority—

(a)   

have the right to possession of the house (subject to the rights of

25

existing occupiers preserved by section 116(2));

(b)   

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

relation to the house anything which a person having an estate or

interest in the house would (but for the order) be entitled to do;

(c)   

may create one or more of the following—

30

(i)   

an interest in the house 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 house.

(4)   

But the authority may not under subsection (3)(c) create any interest or right in

the nature of a lease or licence unless consent in writing has been given by the

35

person who (but for the order) would have power to create the lease or licence

in question.

(5)   

The authority—

(a)   

do not under this section acquire any estate or interest in the house, and

(b)   

accordingly are not entitled by virtue of this section to sell, lease, charge

40

or make any other disposition of any such estate or interest;

   

but, where the immediate landlord of the house or part of it (within the

meaning of section 103) is a lessee under a lease of the house or part, the

authority is to be treated (subject to paragraph (a)) as if they were the lessee

instead.

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Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation

72

 

(6)   

Any enactment or rule of law relating to landlords and tenants or leases applies

in relation to—

(a)   

an interest created by the authority under subsection (3)(c),

(b)   

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

under subsection (5), or

5

(c)   

a lease to which the authority become a party under section 116(3),

   

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

section 116(5) to (7)).

(7)   

None of the following, namely—

(a)   

the authority, or

10

(b)   

any person authorised under subsection (3)(b)

   

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

done or omitted to be done in the performance (or intended performance) of

the authority’s duties under section 101(1) to (3) unless the act or omission is

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

15

(8)   

References in any enactment to housing accommodation provided or managed

by a local housing authority do not include a house in relation to which an

interim management order is in force.

(9)   

An interim management order which has come into force is a local land charge.

(10)   

In this section “enactment” includes an enactment comprised in subordinate

20

legislation (within the meaning of the Interpretation Act 1978 (c. 30)).

103     

General effect of interim management orders: immediate landlords,

mortgagees etc.

(1)   

This section applies in relation to—

(a)   

immediate landlords, and

25

(b)   

other persons with an estate or interest in the house,

   

while an interim management order is in force in relation to a house.

(2)   

A person who is an immediate landlord of the house or a part of it—

(a)   

is not entitled to receive—

(i)   

any rents or other payments from persons occupying the house

30

or part which are payable to the local housing authority by

virtue of section 116(3), or

(ii)   

any rents or other payments from persons occupying the house

or part which are payable to the authority by virtue of any

interest or right created by them under section 102(3)(c),

35

(b)   

may not exercise any rights or powers with respect to the management

of the house or part; and

(c)   

may not create any of the following—

(i)   

any leasehold interest in the house or part (other than a lease of

a reversion), or

40

(ii)   

any licence or other right to occupy it.

(3)   

However (subject to subsection (2)(c)) nothing in section 102 or this section

affects the ability of a person having an estate or interest in the house to make

any disposition of that estate or interest.

(4)   

Nothing in section 102 or this section affects—

45

 

 

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation

73

 

(a)   

the validity of any mortgage relating to the house or any rights or

remedies available to the mortgagee under such a mortgage, or

(b)   

the validity of any lease of the house or part of it under which the

immediate landlord is a lessee, or any superior lease, or (subject to

section 102(5)) any rights or remedies available to the lessor under such

5

a lease;

   

and 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 management order (including an order quashing it).

(5)   

For the purposes of this Part, as it applies in relation to an interim management

10

order, a person is an “immediate landlord” of the house or a part of it if—

(a)   

he is an owner or lessee of the house or part, and

(b)   

(but for the order) he would be entitled to receive the rents or other

payments from persons occupying the house or part which are payable

to the local housing authority by virtue of section 116(3).

15

(6)   

For the purposes of this Part “mortgage” includes a charge or lien, and

“mortgagee” is to be read accordingly.

104     

Financial arrangements while order is in force

(1)   

This section applies to relevant expenditure of a local housing authority who

have made an interim management order.

20

(2)   

“Relevant expenditure” means expenditure reasonably incurred by the

authority in connection with performing their duties under section 101(1) to (3)

in respect of the house (including any premiums paid for insurance of the

premises).

(3)   

Rent or other payments which the authority have collected or recovered, by

25

virtue of this Part, from persons occupying the house may be used by the

authority to meet relevant expenditure.

(4)   

The authority must pay to such relevant landlord, or to such relevant landlords

in such proportions, as they consider appropriate—

(a)   

any amount of rent or other payments collected or recovered as

30

mentioned in subsection (3) that remains after deductions to meet

relevant expenditure, and

(b)   

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

by the authority,

   

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

35

appropriate.

(5)   

The interim management order may provide for—

(a)   

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

of subsection (4); and

(b)   

the intervals at which payments are to be made under that subsection.

40

   

Paragraph 24(3) of Schedule 6 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

house; and

45

 

 

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation

74

 

(b)   

afford to each relevant landlord, and to any other person who has an

estate or interest in the house, all reasonable facilities for inspecting,

taking copies of and verifying those accounts.

(7)   

A relevant landlord may apply to a residential property tribunal for an order—

(a)   

declaring that an amount shown in the accounts as expenditure of the

5

authority does not constitute expenditure reasonably incurred by the

authority as mentioned in subsection (2);

(b)   

requiring the authority to make such financial adjustments (in the

accounts and otherwise) as are necessary to reflect the tribunal’s

declaration.

10

(8)   

In this section—

   

“expenditure” includes administrative costs;

   

“relevant landlord” means any person who is an immediate landlord of

the house or part of it;

   

“rent or other payments” means rents or other payments payable under

15

leases or licences or in respect of furniture within section 118(1).

Interim management orders: variation and revocation

105     

Variation of interim management orders

(1)   

The local housing authority may vary an interim management order if they

consider it appropriate to do so.

20

(2)   

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

time for the purposes of this subsection under paragraph 31 of Schedule 6 (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 section is exercisable by the authority

25

either—

(a)   

on an application made by a relevant person, or

(b)   

on the authority’s own initiative.

(4)   

In this section “relevant person” means—

(a)   

any person who has an estate or interest in the house or part of it (but

30

is not a tenant under a lease with an unexpired term of 3 years or less),

or

(b)   

any other person who (but for the order) would be a person managing

or having control of the house or part of it.

106     

Revocation of interim management orders

35

(1)   

The local housing authority may revoke an interim management order in the

following cases—

(a)   

if the order was made under section 97(2) or (3) and the house has

ceased to be an HMO to which Part 2 applies or a Part 3 house (as the

case may be);

40

(b)   

if the order was made under section 97(2) or (3) and a licence granted

by them in respect of the house is due to come into force under Part 2

or Part 3 on the revocation of the order;

 

 

 
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