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Housing Bill


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

82

 

114     

Revocation of final management orders

(1)   

The local housing authority may revoke a final management order in the

following cases—

(a)   

if the order was made under section 107(2) or (5) and the house has

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

5

case may be);

(b)   

if the order was made under section 107(2) or (5) and a licence granted

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

or Part 3 as from the revocation of the order;

(c)   

if a further final management order has been made by them in respect

10

of the house so as to replace the order;

(d)   

if in any other circumstances the authority consider it appropriate to

revoke the order.

(2)   

A revocation 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

15

when period for appealing expires without an appeal being made or when

decision to vary is confirmed on appeal).

(3)   

The power to revoke an order under this section is exercisable by the authority

either—

(a)   

on an application made by a relevant person, or

20

(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

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

or

25

(b)   

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

having control of the house or part of it.

Interim and final management orders: procedure and appeals

115     

Procedural requirements and appeals

Schedule 6 (which deals with procedural requirements relating to the making,

30

variation or revocation of interim and final management orders and with

appeals against decisions relating to such orders) has effect.

Interim and final management orders: other general provisions

116     

Effect of management orders: occupiers

(1)   

In this section—

35

   

“existing occupier” means a person who, at the time when an interim or

final management order comes into force, is one of the following—

(a)   

(in the case of an HMO or Part 3 house) a person who is

occupying part of the house and does not have an estate or

interest in the whole of the house, or

40

(b)   

(in the case of a Part 3 house) a person who is occupying the

whole of the house; and

 

 

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

83

 

   

“new occupier” means a person who is occupying the whole or part of a

house under an agreement in the nature of a lease or licence created

under section 102(3)(c) or 110(3)(c).

(2)   

Sections 102 and 110 do not affect the rights or liabilities of an existing occupier

under a lease or licence (whether in writing or not) under which he is

5

occupying the whole or part of the house at the commencement date.

(3)   

Where the lessor or licensor under such a lease or licence—

(a)   

has an estate or interest in the house, and

(b)   

is not an existing occupier,

   

the lease or licence has effect while the order is in force as if the local housing

10

authority were substituted in it for the lessor or licensor.

(4)   

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 premises.

(5)   

The provisions which exclude local authority lettings from the Rent Acts,

15

namely—

(a)   

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

(b)   

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

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

   

do not apply to a lease or agreement under which an existing or new occupier

20

is occupying the whole or part of the house.

(6)   

Section 1(2) of, and paragraph 12 of Part 1 of Schedule 1 to, the Housing Act

1988 (which exclude local authority lettings from Part 1 of that Act) do not

apply to a lease or agreement under which an existing or new occupier is

occupying the whole or part of the house.

25

(7)   

Nothing in section 102(6) or 110(6) or this section 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

30

(b)   

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

(8)   

If, immediately before the coming into force of an interim or final management

order, an existing occupier was occupying the whole or part of the house

under—

(a)   

a protected or statutory tenancy within the meaning of the Rent Act

35

1977,

(b)   

a protected or statutory tenancy within the meaning of the Rent

(Agriculture) Act 1976, or

(c)   

an assured tenancy or assured agricultural occupancy within the

meaning of Part 1 of the Housing Act 1988 (c. 50),

40

   

nothing in this Part prevents the continuance of that tenancy or occupancy or

affects the continued operation of any of those Acts in relation to the tenancy

or occupancy after the coming into force of the order.

(9)   

In this section “the commencement date” means the date on which the order

came into force (or, if that order was preceded by one or more orders under this

45

Part, the date when the first order came into force).

 

 

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

84

 

117     

Effect of management orders: agreements and legal proceedings

(1)   

An agreement or instrument within subsection (2) has effect, while an interim

or final management order is in force, as if any rights or liabilities of the

immediate landlord under the agreement or instrument were instead rights or

liabilities of the local housing authority.

5

(2)   

An agreement or instrument is within this subsection if—

(a)   

it is effective on the commencement date,

(b)   

one of the parties to it is a person who is the immediate landlord of the

house or a part of the house (“the relevant premises”),

(c)   

it relates to the house, whether in connection with—

10

(i)   

any management activities with respect to the relevant

premises, or

(ii)   

the provision of any services or facilities for persons occupying

those premises,

   

or otherwise,

15

(d)   

it is specified for the purposes of this subsection in the order or falls

within a description of agreements or instruments so specified, and

(e)   

the authority serve a notice in writing on all the parties to it stating that

subsection (1) is to apply to it.

(3)   

An agreement or instrument is not within subsection (2) if—

20

(a)   

it is a lease within section 102(5) or 110(5), or

(b)   

it relates to any disposition by the immediate landlord which is not

precluded by section 103(2) or 111(2), or

(c)   

it is within section 116(3).

(4)   

Proceedings in respect of any cause of action within subsection (5) may, while

25

an interim or final management order is in force, be instituted or continued by

or against the local housing authority instead of by or against the immediate

landlord.

(5)   

A cause of action is within this subsection if—

(a)   

it is a cause of action (of any nature) which accrued to or against the

30

immediate landlord of the house or a part of the house before the

commencement date,

(b)   

it relates to the house as mentioned in subsection (2)(c),

(c)   

it is specified for the purposes of this subsection in the order or falls

within a description of causes of action so specified, and

35

(d)   

the authority serve a notice in writing on all interested parties stating

that subsection (4) is to apply to it.

(6)   

If, by virtue of this section, the authority become subject to any liability to pay

damages in respect of anything done (or omitted to be done) before the

commencement date by or on behalf of the immediate landlord of the house or

40

a part of it, the immediate landlord is liable to reimburse to the authority an

amount equal to the amount of the damages paid by them.

(7)   

In this section—

   

“agreement” includes arrangement;

   

“the commencement date” means the date on which the order comes into

45

force (or, if that order was preceded by one or more orders under this

Part, the date when the first order came into force);

 

 

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

85

 

   

“management activities” includes repair, maintenance, improvement and

insurance.

118     

Effect of management orders: furniture

(1)   

Subsection (2) applies where, on the date on which an interim or final

management order comes into force, there is furniture in the house which a

5

person occupying the house has the right to use in consideration of periodical

payments to a person who is an immediate landlord of the house or a part of it

(whether the payments are included in the rent payable by the occupier or not).

(2)   

The right to possession of the furniture against all persons other than the

occupier vests in the local housing authority on that date and remains vested

10

in the authority while the order is in force.

(3)   

The local housing authority may renounce the right to possession of the

furniture conferred by subsection (2) if—

(a)   

an application in writing has been made to them for the purpose by the

person owning the furniture, and

15

(b)   

they renounce the right by notice in writing served on that person not

less than two weeks before the notice takes effect.

(4)   

If the authority’s right to possession of furniture conferred by subsection (2) is

a right exercisable against more than one person interested in the furniture, any

of those persons may apply to a residential property tribunal for an adjustment

20

of their respective rights and liabilities as regards the furniture.

(5)   

On such an application the tribunal may make an order for such an adjustment

of rights and liabilities, either unconditionally or subject to such terms and

conditions, as it considers appropriate.

(6)   

The terms and conditions may, in particular, include terms and conditions

25

about the payment of money by a party to the proceedings to another party to

the proceedings by way of compensation, damages or otherwise.

(7)   

In this section “furniture” includes fittings and other articles.

119     

Management orders: power to supply furniture

(1)   

The local housing authority may supply the house to which an interim or final

30

management order relates with such furniture as they consider to be required.

(2)   

For the purposes of section 104 or a management scheme under section 112,

any expenditure incurred by the authority under this section constitutes

expenditure incurred by the authority in connection with performing their

duty under section 101(3) or 109(2).

35

(3)   

In this section “furniture” includes fittings and other articles.

120     

Termination of management orders: financial arrangements

(1)   

This section applies where—

(a)   

an interim or final management order ceases to have effect for any

reason, and

40

(b)   

the order is not immediately followed by a further order under this

Part.

 

 

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

86

 

(2)   

If, on the termination date for an interim management order, the total amount

of rent or other payments collected or recovered as mentioned in section 104(3)

exceeds the total amount of the authority’s relevant expenditure, the local

housing authority must pay the balance—

(a)   

to such relevant landlord, or

5

(b)   

to such relevant landlords in such proportions,

   

as they consider appropriate; and the balance is to be paid by them as soon as

practicable after the termination date.

This subsection does not apply if the management scheme contained in a final

management order so provides.

10

(3)   

If, on the termination date for an interim management order, the total amount

of rent or other payments collected or recovered as mentioned in section 104(3)

is less than the total amount of the authority’s relevant expenditure, the

difference is recoverable by the authority—

(a)   

from such relevant landlord, or

15

(b)   

from such relevant landlords in such proportions,

   

as they consider appropriate.

(4)   

If, on the termination date for a final management order, any amount is

payable to any relevant landlord in accordance with the management scheme

under section 112, that amount must be paid to that person by the local housing

20

authority in the manner provided by the scheme.

(5)   

If, on the termination date for a final management order, any amount is

payable to the local housing authority in accordance with the management

scheme, that amount is recoverable by local housing authority—

(a)   

from such relevant landlord, or

25

(b)   

from such relevant landlords in such proportions,

   

as is provided by the scheme.

(6)   

Any sum recoverable by the authority under subsection (3) or (5) is, until

recovered, a charge on the house.

(7)   

For the purpose of enforcing the charge the authority have the same powers

30

and remedies under the Law of Property Act 1925 (c. 20) and otherwise as if

they were mortgagees by deed having powers of sale and lease, of accepting

surrenders of leases and of appointing a receiver.

(8)   

The power of appointing a receiver is exercisable at any time after the end of

the period of one month beginning with the date on which the charge takes

35

effect.

(9)   

If the order is to be followed by a licence granted under Part 2 or 3 in respect of

the house, the conditions contained in the licence may include a condition

requiring the licence holder—

(a)   

to repay to the authority any amount recoverable by them under

40

subsection (3) or (5), and

(b)   

to do so in such instalments as are specified in the licence.

(10)   

In this section—

   

“relevant expenditure” has the same meaning as in section 104;

   

“relevant landlord” means a person who was the immediate landlord of

45

the house or part of it immediately before the termination date or his

successor in title for the time being;

 

 

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

87

 

   

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

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

   

“the termination date” means the date on which the order ceases to have

effect.

121     

Termination of management orders: leases, agreements and proceedings

5

(1)   

This section applies where—

(a)   

an interim or final management order ceases to have effect for any

reason, and

(b)   

the order is not immediately followed by a further order under this

Part.

10

(2)   

As from the termination date—

(a)   

a lease or licence in which the local housing authority was substituted

for another party by virtue of section 116(3) has effect with the

substitution of the original party, or his successor in title, for the

authority; and

15

(b)   

an agreement in the nature of a lease or licence created by the authority

under section 102 or 110 has effect with the substitution of the relevant

landlord for the authority.

(3)   

If the relevant landlord is a lessee, nothing in a superior lease imposes liability

on him or any superior lessee in respect of anything done in pursuance of the

20

terms of an agreement to which subsection (2)(b) applies.

(4)   

If the condition in subsection (5) is met, any other agreement entered into by

the authority in the performance of their duties under section 101(1) to (3) or

109(2) in respect of the house has effect, as from the termination date, with the

substitution of the relevant landlord for the authority.

25

(5)   

The condition is that the authority serve a notice on the other party or parties

to the agreement stating that subsection (4) applies to the agreement.

(6)   

If the condition in subsection (7) is met—

(a)   

any rights or liabilities that were rights or liabilities of the authority

immediately before that date by virtue of any provision of this Part or

30

under any agreement to which subsection (4) applies are rights or

liabilities of the relevant landlord instead, and

(b)   

any proceedings instituted or continued by or against the authority by

virtue of any such provision or agreement may be continued by or

against the relevant landlord instead,

35

as from the termination date.

(7)   

The condition is that the authority serve a notice on all interested parties

stating that subsection (4) applies to the rights or liabilities or (as the case may

be) the proceedings.

(8)   

If by virtue of this section a relevant landlord becomes subject to any liability

40

to pay damages in respect of anything done (or omitted to be done) before the

termination date by or on behalf of the authority, the authority are liable to

reimburse to the relevant landlord an amount equal to the amount of the

damages paid by him.

(9)   

Where two or more persons are relevant landlords in relation to different parts

45

of the house any reference in this section to “the relevant landlord” is to be

 

 

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

88

 

taken to refer to such one or more of them as is determined by agreement

between them or (in default of agreement) by a residential property tribunal on

an application made by any of them.

(10)   

In this section—

(a)   

“agreement” includes arrangement;

5

(b)   

“relevant landlord” means a person who was the immediate landlord

of the house immediately before the termination date or his successor

in title for the time being;

(c)   

“the termination date” means the date on which the order ceases to

have effect.

10

122     

Management orders: power of entry to carry out work

(1)   

The right mentioned in subsection (2) is exercisable by the local housing

authority, or any person authorised in writing by them, at any time when an

interim or final management order is in force.

(2)   

That right is the right at all reasonable times to enter any part of the house for

15

the purpose of carrying out works, and is exercisable as against any person

having an estate or interest in the house.

(3)   

Where part of a house is excluded from the provisions of an interim or final

management order under section 97(8) or 107(7), the right conferred by

subsection (1) is exercisable as respects that part so far as is reasonably required

20

for the purpose of carrying out works in the part of the house which is subject

to the order.

(4)   

If, after receiving reasonable notice of the intended action, any occupier of the

whole or part of the house prevents any officer, employee, agent or contractor

of the local housing authority from carrying out work in the house, a

25

magistrates’ court may order him to permit to be done on the premises

anything which the authority consider to be necessary.

(5)   

A person who fails to comply with an order of the court under subsection (4)

commits an offence.

(6)   

A person who commits an offence under subsection (5) is liable on summary

30

conviction to a fine not exceeding level 5 on the standard scale.

Overcrowding notices

123     

Service of overcrowding notices

(1)   

This section applies to any HMO—

(a)   

in relation to which no interim or final management order is in force;

35

and

(b)   

which is not required to be licensed under Part 2.

(2)   

The local housing authority may serve an overcrowding notice on one or more

relevant persons if, having regard to the rooms available, it considers that an

excessive number of persons is being, or is likely to be, accommodated in the

40

HMO concerned.

(3)   

The authority must, at least 7 days before serving an overcrowding notice—

 

 

 
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