Legalize / United Kingdom / Public General Act

Housing Act 1996

Type Public General Act

Publication 1996-07-24

Last updated 2025-12-27

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(a) the reference shall be taken to include a reference to the filing of the copy of the notice, and

(b) in respect of the filing of a copy of a notice of intention to appoint under either of those paragraphs the reference to the applicant shall be taken as a reference to the person giving the notice.

Further notice to be given to the Welsh Ministers.

41

(1) Notice must be given to the Welsh Ministers as soon as may be after any of the steps mentioned below is taken in relation to a registered social landlord.

The person by whom the notice must be given is indicated in the second column.

(2) Where the registered social landlord is a registered society, the steps and the person by whom notice must be given are—

The taking of a step to enforce any security over land held by the landlord.	The person taking the step.
The making of an order for the winding up of the landlord.	The petitioner.
The passing of a resolution for the winding up of the landlord.	The landlord.

(3) Where the registered social landlord is a company (including a registered charity), the steps and the person by whom notice must be given are—

The taking of a step to enforce any security over land held by the landlord.	The person taking the step.
The making of an administration order.	The person who applied for the order.
The making of an order for the winding up of the landlord.	The petitioner.
The passing of a resolution for the winding up of the landlord.	The landlord.

(4) Where the registered social landlord is a registered charity (other than a company ), the steps and the person by whom notice must be given are—

The taking of a step to enforce any security over land held by the landlord.	The person taking the step.

(5) Failure to give notice under this section does not affect the validity of any step taken; but the period of 28 days mentioned in section 43(1) (period after which moratorium on disposal of land, &c. ends) does not begin to run until any requisite notice has been given under this section.

(6) In subsection (3)—

(a) the reference to the making of an administration order includes a reference to appointing an administrator under paragraph 14 or 22 of Schedule B1 to the Insolvency Act 1986 (administration), and

(b) in respect of an appointment under either of those paragraphs the reference to the applicant shall be taken as a reference to the person making the appointment.

Moratorium on disposal of land, &c.

42

(1) Where any of the steps mentioned in section 41 is taken in relation to a registered social landlord, there is a moratorium on the disposal of land held by the landlord.

(2) During the moratorium the consent of the Welsh Ministers under this section is required (except as mentioned below) for any disposal of land held by the landlord, whether by the landlord itself or any person having a power of disposal in relation to the land.

Consent under this section may be given in advance and may be given subject to conditions.

(3) Consent is not required under this section for a letting of land under an occupation contract.

(4) A disposal made without the consent required by this section is void.

(5) Nothing in this section prevents a liquidator from disclaiming any land held by the landlord as onerous property.

(6) The provisions of this section apply in relation to any existing or future interest of the landlord in rent or other receipts arising from land as they apply to an interest in land.

Period of moratorium.

43

(1) The moratorium in consequence of the taking of any step as mentioned in section 41—

(a) begins when the step is taken, and

(b) ends at the end of the period of 28 days beginning with the day on which notice of its having been taken was given to the Welsh Ministers under that section,

subject to the following provisions.

(2) The taking of any further step as mentioned in section 41 at a time when a moratorium is already in force does not start a further moratorium or affect the duration of the existing one.

(3) A moratorium may be extended from time to time with the consent of all the landlord’s secured creditors.

Notice of any such extension shall be given by the Welsh Ministers to—

(a) the landlord, and

(b) any liquidator, administrative receiver, receiver or administrator appointed in respect of the landlord or any land held by it.

(4) If during a moratorium the Welsh Ministers considers that the proper management of the landlord’s land can be secured without making proposals under section 44 (proposals as to ownership and management of landlord’s land), the Welsh Ministers may direct that the moratorium shall cease to have effect.

Before making any such direction the Welsh Ministers shall consult the person who took the step which brought about the moratorium.

(5) When a moratorium comes to an end, or ceases to have effect under subsection (4), the Welsh Ministers shall give notice of that fact to the landlord and the landlord’s secured creditors.

(6) When a moratorium comes to an end (but not when it ceases to have effect under subsection (4)), the following provisions of this section apply.

The Relevant Authority’s notice shall, in such a case, inform the landlord and the landlord’s secured creditors of the effect of those provisions.

(7) If any further step as mentioned in section 41 is taken within the period of three years after the end of the original period of the moratorium, the moratorium may be renewed with the consent of all the landlord’s secured creditors (which may be given before or after the step is taken).

Notice of any such renewal shall be given by the Welsh Ministers to the persons to whom notice of an extension is required to be given under subsection (3).

(8) If a moratorium ends without any proposals being agreed, then, for a period of three years the taking of any further step as mentioned in section 41 does not start a further moratorium except with the consent of the landlord’s secured creditors as mentioned in subsection (7) above.

Appointment of interim manager

43A

(1) During a moratorium the Welsh Ministers may appoint an interim manager of the registered social landlord.

(2) An appointment may relate to the registered social landlord's affairs generally or to affairs specified in the appointment.

(3) But an appointment may not relate to affairs relating only to the provision of housing in England.

(4) Appointment is to be on terms and conditions (including as to remuneration and expenses) specified in, or determined in accordance with, the appointment.

(5) An interim manager has—

(a) any power specified in the appointment, and

(b) any other power in relation to the registered social landlord's affairs required by the manager for the purposes specified in the appointment (including the power to enter into agreements and take other action on behalf of the landlord).

(6) But an interim manager may not—

(a) dispose of land, or

(b) grant security over land.

(7) The Welsh Ministers may give the interim manager general or specific directions.

(8) The Welsh Ministers may revoke or amend any directions given.

(9) An appointment under this section comes to an end with the earliest of the following—

(a) the end of the moratorium,

(b) the agreement of proposals made under section 44, or

(10) If a person ceases to be an interim manager before the appointment has come to an end, the Welsh Ministers may appoint a new interim manager in place of that person.

Proposals as to ownership and management of landlord’s land.

44

(1) During the moratorium (see sections 42 and 43) the Welsh Ministers may make proposals as to the future ownership and management of the land held by the registered social landlord, designed to secure the continued proper management of the landlord’s land by a registered social landlord.

(2) In drawing up its proposals the Welsh Ministers—

(a) shall consult the landlord and, so far as is practicable, its tenants, and

(b) shall have regard to the interests of all the landlord’s creditors, both secured and unsecured.

(3) The Relevant Authority shall also consult—

(a) where the landlord is a registered society, the appropriate registrar, and

(b) where the landlord is a registered charity, the Charity Commission .

(4) No proposals shall be made under which—

(a) a preferential debt of the landlord is to be paid otherwise than in priority to debts which are not preferential debts, ...

(aa) an ordinary preferential debt of the landlord is to be paid otherwise than in priority to any secondary preferential debts that the landlord may have,

(b) a preferential creditor is to be paid a smaller proportion of an ordinary preferential debt than another preferential creditor, except with the concurrence of the creditor concerned ...

(c) a preferential creditor is to be paid a smaller proportion of a secondary preferential debt than another preferential creditor, except with the concurrence of the creditor concerned. or

(d) if the landlord is a relevant financial institution—

(i) an ordinary non-preferential debt of the landlord is to be paid otherwise than in priority to any secondary non-preferential debts of the landlord,

(ii) a secondary non-preferential debt of the landlord is to be paid otherwise than in priority to any tertiary non-preferential debts of the landlord, or

(iii) a secondary non-preferential creditor is to be paid a smaller proportion of a secondary non-preferential debt of the landlord than another secondary non-preferential creditor, except with the concurrence of the creditor concerned.

In this subsection references to preferential debts , ordinary preferential debts, secondary preferential debts , ordinary non-preferential debts, secondary non-preferential debts, tertiary non-preferential debts, relevant financial institution and preferential creditors have the same meaning as in the Insolvency Act 1986.

(5) So far as practicable no proposals shall be made which have the effect that unsecured creditors of the landlord are in a worse position than they would otherwise be.

(6) Where the landlord is a charity the proposals shall not require the landlord to act outside the terms of its trusts, and any disposal of housing accommodation occupied under a tenancy or licence from the landlord must be to another charity whose objects appear to the Welsh Ministers to be, as nearly as practicable, akin to those of the landlord.

(7) The Relevant Authority shall serve a copy of its proposals on—

(a) the landlord and its officers,

(b) the secured creditors of the landlord, and

and it shall make such arrangements as it considers appropriate to see that the members, tenants and unsecured creditors of the landlord are informed of the proposals.

Effect of agreed proposals.

45

(1) The following provisions apply if proposals made by the Welsh Ministers under section 44 are agreed, with or without modifications, by all the secured creditors of the registered social landlord.

(2) Once agreed the proposals are binding on the Welsh Ministers, the landlord, all the landlord’s creditors (whether secured or unsecured) and any liquidator, administrator, administrative receiver or receiver appointed in respect of the landlord or its land.

(3) It is the duty of—

(a) the members of the committee where the landlord is a registered society,

(b) the directors where the landlord is a company (including a company that is a registered charity) , and

to co-operate in the implementation of the proposals.

This does not mean that they have to do anything contrary to any fiduciary or other duty owed by them.

(4) The Relevant Authority shall serve a copy of the agreed proposals on—

(a) the landlord and its officers,

(b) the secured creditors of the landlord, and

(c) any liquidator, administrator, administrative receiver or receiver appointed in respect of the landlord or its land, and

(d) where the landlord is a registered society or registered charity, the Financial Conduct Authority or the Charity Commission , as the case may be;

and it shall make such arrangements as it considers appropriate to see that the members, tenants and unsecured creditors of the landlord are informed of the proposals.

(5) The proposals may subsequently be amended with the consent of the Relevant Authority and all the landlord’s secured creditors.

Section 44(2) to (7) and subsections (2) to (4) above apply in relation to the amended proposals as in relation to the original proposals.

Appointment of manager to implement agreed proposals.

46

(1) Where proposals agreed as mentioned in section 45 so provide, the Welsh Ministers may by order . . . appoint a manager to implement the proposals or such of them as are specified in the order.

(2) If the landlord is a registered charity, the Welsh Ministers shall give notice to the Charity Commission of the appointment.

(3) Where proposals make provision for the appointment of a manager, they shall also provide for the payment of his reasonable remuneration and expenses.

(4) The Relevant Authority may give the manager directions in relation to the carrying out of his functions.

(4A) The Welsh Ministers may amend or revoke any directions given by them.

(5) The manager may apply to the High Court for directions in relation to any particular matter arising in connection with the carrying out of his functions.

A direction of the court supersedes any direction of the Welsh Ministers in respect of the same matter.

(6) If a vacancy occurs by death, resignation or otherwise in the office of manager, the Welsh Ministers may by further order . . . fill the vacancy.

(7) An order under this section—

(a) if made by the Housing Corporation, shall be made under its seal, and

(b) An order made by the Welsh Ministers , under this section shall be made in writing.

Powers of the manager.

47

(1) An order under section 46(1) shall confer on the manager power generally to do all such things as are necessary for carrying out his functions.

(2) The order may include the following specific powers—

(1) Power to take possession of the land held by the landlord and for that purpose to take any legal proceedings which seem to him expedient.

(2) Power to sell or otherwise dispose of the land by public auction or private contract.

(3) Power to raise or borrow money and for that purpose to grant security over the land.

(4) Power to appoint a solicitor or accountant or other professionally qualified person to assist him in the performance of his functions.

(5) Power to bring or defend legal proceedings relating to the land in the name and on behalf of the landlord.

(6) Power to refer to arbitration any question affecting the land.

(7) Power to effect and maintain insurance in respect of the land.

(8) Power where the landlord is a body corporate to use the seal of the body corporate for purposes relating to the land.

(9) Power to do all acts and to execute in the name and on behalf of the landlord any deed, receipt or other document relating to the land.

(10) Power to appoint an agent to do anything which he is unable to do for himself or which can more conveniently be done by an agent, and power to employ and dismiss any employees.

(11) Power to do all such things (including the carrying out of works) as may be necessary in connection with the management or transfer of the land.

(12) Power to make any payment which is necessary or incidental to the performance of his functions.

(13) Power to carry on the business of the landlord so far as relating to the management or transfer of the land.

(14) Power to grant or accept a surrender of a lease or tenancy of any of the land, and to take a lease or tenancy of any property required or convenient for the landlord’s housing activities.

(15) Power to make any arrangement or compromise on behalf of the landlord in relation to the management or transfer of the land.

(16) Power to do all other things incidental to the exercise of any of the above powers.

(3) In carrying out his functions the manager acts as the landlord’s agent and he is not personally liable on a contract which he enters into as manager.

(4) A person dealing with the manager in good faith and for value is not concerned to inquire whether the manager is acting within his powers.

(5) The manager shall, so far as practicable, consult the landlord’s tenants about any exercise of his powers which is likely to affect them and inform them about any such exercise of his powers.

Powers of the manager: transfer of engagements.

48

(1) An order under section 46(1) may, where the landlord is a registered society, give the manager power to make and execute on behalf of the society an instrument transferring the engagements of the society.

(2) Any such instrument has the same effect as a transfer of engagements under section 110 or 112 of the Co-operative and Community Benefit Societies Act 2014 (transfer of engagements by special resolution to another society or a company).

In particular, it does not prejudice any right of a creditor of the society.

(3) A copy of the instrument, signed by the manager, shall be sent to the Financial Conduct Authority and registered by it; and until that copy is so registered the instrument shall not take effect.

(4) It is the duty of the manager to send a copy for registration within 14 days from the day on which the instrument is executed; but this does not invalidate registration after that time.

Assistance by the Welsh Ministers.

49

(1) The Relevant Authority may give such assistance as it thinks fit—

(a) to the landlord, for the purpose of preserving the position pending the making of and agreement to proposals;

(b) to the landlord or a manager appointed under section 46, for the purpose of carrying out any agreed proposals.

(2) The Relevant Authority may, in particular—

(a) lend staff;

(b) pay or secure payment of the manager’s reasonable remuneration and expenses;

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Application to court to secure compliance with agreed proposals.

50

(1) The landlord or any creditor of the landlord may apply to the High Court on the ground that an action of the manager appointed under section 46 is not in accordance with the agreed proposals.

On such an application the court may confirm, reverse or modify any act or decision of the manager, give him directions or make such other order as it thinks fit.

(2) The Relevant Authority or any other person bound by agreed proposals may apply to the High Court on the ground that any action, or proposed action, by another person bound by the proposals is not in accordance with those proposals.

On such an application the court may—

(a) declare any such action to be ineffective, and

(b) grant such relief by way of injunction, damages or otherwise as appears to the court appropriate.

CHAPTER 4A — ENFORCEMENT POWERS

General

Application of Chapter 4A

50A

This Chapter does not apply in relation to a registered social landlord's provision of housing in England.

Exercise of enforcement powers

50B

(1) This section applies where the Welsh Ministers are deciding—

(a) whether to exercise an enforcement power,

(b) which enforcement power to exercise, or

(2) The Welsh Ministers must consider—

(a) the desirability of registered social landlords being free to choose how to provide services and conduct business;

(b) whether the failure or other problem concerned is serious or trivial;

(d) the speed with which the failure or other problem needs to be addressed.

(3) In subsection (1), an “enforcement power” means a power exercisable under any of the following provisions—

this Chapter,

paragraphs 4, 6 to 8, 14 to 15B, 15D, 15F and 15H of Part 2 of Schedule 1,

paragraphs 20 to 27 of Part 4 of Schedule 1.

Enforcement notice

Grounds for giving notice

50C

(1) The Welsh Ministers may give an enforcement notice to a registered social landlord if they are satisfied that—

(a) any of the following cases applies, and

(b) giving an enforcement notice is appropriate (whether it is likely to be sufficient in itself or a prelude to further action).

(2) Case 1 is where the registered social landlord has failed to meet a standard applicable to it under section 33A.

(3) Case 2 is where the registered social landlord has failed to comply with a requirement imposed by or under an enactment.

(4) Case 3 is where the registered social landlord has failed to comply with an earlier enforcement notice.

(5) Case 4 is where the registered social landlord has failed to publish information in accordance with a requirement under section 50I(3) or 50Q(3).

(6) Case 5 is where the interests of tenants of the registered social landlord require protection.

(7) Case 6 is where the registered social landlord's assets require protection.

(8) Case 7 is where the registered social landlord has given an undertaking under section 6A and failed to comply with it.

(9) Case 8 is where an offence under this Part has been committed by the registered social landlord.

(10) Case 9 is where the registered social landlord has failed to implement a recommendation made by the Public Services Ombudsman for Wales in a report prepared under section 16 of the Public Services Ombudsman (Wales) Act 2005 or section 23 of the Public Services Ombudsman (Wales) Act 2019.

(10A) But Case 2 is not to be treated as applying if any of the other cases listed in this section applies.

(11) Where the Welsh Ministers are satisfied that an offence under this Part has been committed in respect of a registered social landlord but by another person (such as a member, employee or agent of the registered social landlord)—

(a) Case 8 applies,

(b) the Welsh Ministers may give an enforcement notice to the other person, and

(c) this Chapter applies with the substitution of references to that other person for references to the registered social landlord.

Content

50D

(1) An enforcement notice must—

(a) specify the grounds on which it is given,

(b) specify the action the Welsh Ministers want the registered social landlord to take in response to the notice,

(d) explain the effect of sections 50E to 50G.

(2) The action specified in an enforcement notice may include publishing the notice in a specified manner.

Appeal

50E

A registered social landlord who is given an enforcement notice may appeal to the High Court.

Withdrawal

50F

The Welsh Ministers may withdraw an enforcement notice by notice to the registered social landlord.

Sanction

50G

(1) In the case of an enforcement notice given to a person other than the registered social landlord by virtue of section 50C(11), the Welsh Ministers may only—

(a) exercise the power to issue a penalty notice to the person in accordance with the next group of sections, or

(b) take steps to have the person prosecuted for the offence by reference to which the enforcement notice was given.

(2) A person to whom an enforcement notice is given on the ground in Case 8 of section 50C may not be prosecuted for the offence by reference to which the enforcement notice was given unless the person fails to comply with the enforcement notice.

Penalty

Grounds for imposition

50H

(1) The Welsh Ministers may require a registered social landlord to pay a penalty if they are satisfied that—

(a) any of the following cases applies, and

(b) the imposition of a penalty is appropriate (whether or not as part of a response including other action).

(2) Case 1 is where the registered social landlord has failed to meet a standard under section 33A.

(3) Case 2 is where the registered social landlord has failed to comply with a requirement imposed by or under an enactment.

(4) Case 3 is where the registered social landlord has failed to comply with an enforcement notice.

(5) Case 4 is where the registered social landlord has given an undertaking under section 6A and failed to comply with it.

(6) Case 5 is where an offence under this Part has been committed by the registered social landlord.

(6A) But Case 2 is not to be treated as applying if any of the other cases listed in this section applies.

(7) Where the Welsh Ministers are satisfied that an offence under this Part has been committed in respect of a registered social landlord but by another person (such as a member, employee or agent of the registered social landlord)—

(a) Case 5 applies,

(b) the Welsh Ministers may require the other person to pay a penalty, and

(c) this Chapter applies with the substitution of references to that other person for references to the registered social landlord.

(8) In order to rely on Case 5 the Welsh Ministers must be satisfied beyond reasonable doubt that it applies.

Imposition

50I

(1) A penalty is imposed by the Welsh Ministers giving notice (a “penalty notice”) to the registered social landlord.

(2) The notice must specify—

(a) the grounds on which the penalty is imposed,

(b) the amount of the penalty,

(d) a period within which it must be paid, and

(e) any interest or additional penalty which, by virtue of section 50M, is payable in the event of late payment.

(3) The notice may require the registered social landlord to publish information about the penalty in a specified manner.

(4) The notice must explain the effect of sections 50M(1), (3) and (5) and 50N.

Amount

50J

(1) The amount of a penalty imposed on the ground specified in Case 5 of section 50H may not exceed the maximum amount (if any) of fine that a magistrates' court could impose for the relevant offence.

(2) The amount of a penalty imposed on the ground specified in any other Case of that section may not exceed £5,000.

(3) The Welsh Ministers may by order amend the amount specified in subsection (2).

(4) An order under subsection (3) is to be made by statutory instrument and must not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the National Assembly for Wales.

Warning

50K

(1) Before giving a penalty notice to a registered social landlord the Welsh Ministers must give the landlord a notice (a “pre-penalty warning”)—

(a) specifying grounds on which the Welsh Ministers think a penalty could be imposed,

(b) warning the landlord that the Welsh Ministers are considering imposing a penalty,

(d) explaining the effect of sections 50L, 50M(1), (3) and (5) and 50N.

(2) The Welsh Ministers must send a copy of a pre-penalty warning to any person they think appropriate (having regard, in particular, to any person who provided information as a result of which the pre-penalty warning is given).

(3) A pre-penalty warning must—

(a) refer to section 6A, and

(b) indicate whether or to what extent the Welsh Ministers would accept a voluntary undertaking instead of, or in mitigation of, a penalty.

(4) A pre-penalty warning may be combined with notice under one or more of the following—

(a) section 50S,

(b) paragraphs 15C, 15E and 15G of Schedule 1.

Representations

50L

(1) A pre-penalty warning must specify a period during which the registered social landlord may make representations to the Welsh Ministers.

(2) The period must—

(a) be a period of at least 28 days, and

(b) begin with the date on which the registered social landlord receives the pre-penalty warning.

(3) Representations may address—

(a) whether a penalty should be imposed;

(b) the amount of any penalty that may be imposed.

(4) After the end of the period specified under subsection (1) the Welsh Ministers must—

(a) consider any representations made, and

(b) decide whether to impose a penalty.

Enforcement

50M

(1) A penalty is to be treated as a debt owed to the Welsh Ministers.

(2) The Welsh Ministers may—

(a) charge interest on a penalty not paid during the period specified under section 50I(2)(d);

(b) impose one or more additional penalties where a penalty is not paid during that period.

(3) Interest and additional penalty are to be treated as penalty (and may have the effect of increasing the penalty above a limit set by section 50J).

(4) A penalty notice may include provision allowing a discount if the penalty is paid on or before a date specified in the notice (falling within the period specified under section 50I(2)(d)).

(5) A person to whom a penalty notice is given on the ground in Case 5 of section 50H may not be prosecuted for the offence by reference to which the penalty notice was given.

Appeal

50N

A registered social landlord who is given a penalty notice may appeal to the High Court against—

(a) the imposition of the penalty,

(b) its amount, or

Compensation

Grounds for award

50O

(1) The Welsh Ministers may require a registered social landlord to pay compensation if they are satisfied that—

(a) either of the following cases applies, and

(b) the award of compensation is appropriate (whether or not as part of a response including other action).

(2) Case 1 is where the registered social landlord has failed to meet a standard under section 33A.

(3) Case 2 is where the registered social landlord has given an undertaking under section 6A and failed to comply with it.

Persons to whom compensation may be awarded

50P

Compensation in respect of a failure may be awarded to one or more persons who have suffered as a result of the failure.

Award

50Q

(1) Compensation is awarded by the Welsh Ministers giving notice (a “compensation notice”) to—

(a) the registered social landlord, and

(b) the person to be compensated.

(2) The notice must specify—

(a) the grounds on which the compensation is awarded,

(b) the amount of the compensation,

(d) a period within which it must be paid, and

(e) any interest or additional compensation which, by virtue of section 50U(2), is payable in the event of late payment.

(3) The notice may require the registered social landlord to publish information about the compensation award in a specified manner.

(4) The notice must explain the effect of sections 50U(1) and (3) and 50V.

Impact

50R

(1) This section applies when the Welsh Ministers are considering—

(a) whether to award compensation, or

(b) the amount of compensation to award.

(2) The Welsh Ministers must take account of any information available to them about the financial situation of the registered social landlord.

(3) The Welsh Ministers must consider the likely impact of the compensation on the registered social landlord's ability to provide services.

(4) In particular, the Welsh Minsters must aim to avoid—

(a) jeopardising the financial viability of the registered social landlord,

(b) preventing the registered social landlord from honouring financial commitments, or

(c) preventing the registered social landlord from taking action to remedy the matters on the grounds of which the compensation might be awarded.

Warning

50S

(1) Before giving a compensation notice to a registered social landlord the Welsh Ministers must give the landlord a notice (a “pre-compensation warning”)—

(a) specifying grounds on which the Welsh Ministers think compensation could be awarded,

(b) warning the landlord that the Welsh Ministers are considering awarding compensation to a specified person,

(d) explaining the effect of sections 50T, 50U(1) and (3) and 50V.

(2) Before giving a pre-compensation warning the Welsh Ministers must consult the Public Services Ombudsman for Wales.

(3) The Welsh Ministers must send a copy of a pre-compensation warning to any person they think appropriate (having regard, in particular, to any person who provided information as a result of which the pre-compensation warning is given).

(4) A pre-compensation warning must—

(a) refer to section 6A, and

(b) indicate whether or to what extent the Welsh Ministers would accept a voluntary undertaking instead of, or in mitigation of, awarding compensation.

(5) A pre-compensation warning may be combined with notice under one or more of the following—

(a) section 50K,

(b) paragraphs 15C, 15E and 15G of Schedule 1.

Representations

50T

(1) A pre-compensation warning must specify a period during which the registered social landlord may make representations to the Welsh Ministers.

(2) The period must—

(a) be a period of at least 28 days, and

(b) begin with the date on which the registered social landlord receives the pre-compensation warning.

(3) Representations may address—

(a) whether compensation should be awarded;

(b) the amount of any compensation that may be awarded.

(4) After the end of the period specified under subsection (1) the Welsh Ministers must—

(a) consider any representations made, and

(b) decide whether to award compensation.

Enforcement

50U

(1) Compensation is to be treated as a debt owed to the person to whom it is awarded.

(2) The Welsh Ministers may —

(a) award interest on compensation not paid during the period specified under section 50Q(2)(d);

(b) award additional compensation where compensation is not paid during that period.

(3) Interest and additional compensation are to be treated as compensation.

Appeal

50V

A registered social landlord who is given a compensation notice may appeal to the High Court against—

(a) the award of compensation,

(b) its amount, or

Chapter V — Miscellaneous and general provisions

Housing ombudsman

Schemes for investigation of complaints.

51

(1) The provisions of Schedule 2 have effect for the purpose of enabling tenants and other individuals to have complaints against social landlords investigated by a housing ombudsman in accordance with a scheme approved by the Secretary of State.

(2) For the purposes of that Schedule a “social landlord” means—

(za) a local authority in England which is a registered provider of social housing,

(a) a private registered provider of social housing,

(b) a transferee of housing pursuant to —

(i) a large scale disposal, within the meaning of section 34 of the Housing Act 1985, for which consent was required under section 32 or 43 of that Act; or

(ii) a qualifying disposal that was made under section 135 of the Leasehold Reform, Housing and Urban Development Act 1993;

(d) any other body which was at any time registered with the Regulator of Social Housing or the Housing Corporation, or with Housing for Wales, and which owns or manages publicly-funded dwellings.

(3) In subsection (2)(d) a “publicly-funded dwelling” means a dwelling which was—

(a) provided by means of a grant under—

section 19 of the Housing and Regeneration Act 2008 (financial assistance) where the grant was made on condition that the recipient provides social housing ...,

section 18 of this Act (social housing grant), or

section 50 of the Housing Act 1988, section 41 of the Housing Associations Act 1985, or section 29 or 29A of the Housing Act 1974 (housing association grant), or a grant from the Greater London Authority which was a grant made on condition that the recipient provides social housing; or ...

(b) acquired on a disposal by a public sector landlord.

(3A) In subsection (3) “provides social housing” has the same meaning as in Part 1 of the Housing and Regeneration Act 2008.

(4) The Secretary of State may by order add to or amend the descriptions of landlords who are to be treated as social landlords for the purposes of Schedule 2.

(5) Before making any such order the Secretary of State shall consult such persons as he considers appropriate.

(6) Any such order shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(7) This section shall not apply in relation to social landlords in Wales (within the meaning given by section 78 of the Public Services Ombudsman (Wales) Act 2019).

(7) Section 52 shall apply to an order under subsection (4) (with any necessary modifications).

Power of housing ombudsman to issue guidance to scheme members

51ZA

(1) This section applies where a scheme is approved by the Secretary of State under Schedule 2.

(2) The housing ombudsman may issue to the members of the scheme guidance as to good practice in the carrying on of housing activities covered by the scheme.

(3) Before issuing, revising or replacing guidance under this section, the housing ombudsman must consult—

(a) the Regulator of Social Housing,

(b) members of the scheme, and

(4) If the housing ombudsman issues, revises or replaces guidance under this section, the housing ombudsman must publish the guidance, the revised guidance or (as the case may be) the replacement guidance.

(5) Subsection (7) applies if—

(a) an individual makes a complaint against a member of the scheme,

(b) the complaint is made under the scheme or the conditions in subsection (6) are met in relation to the complaint, and

(c) it appears to the housing ombudsman that the complaint relates to a matter to which guidance issued by the ombudsman under this section relates.

(6) The conditions referred to in subsection (5)(b) are that—

(a) the complaint is made to the member of the scheme,

(b) the complaint is one that the individual could subsequently make under the scheme, and

(7) The housing ombudsman may order the member of the scheme to—

(a) assess whether the member’s policies and practices in relation to the matter mentioned in subsection (5)(c) are consistent with the guidance issued by the ombudsman under this section in relation to that matter, and

(b) within a period specified in the order, submit to the ombudsman a written statement of the results of the assessment.

(8) If a member of the scheme fails to comply with an order under subsection (7) within the period specified in the order, the housing ombudsman may order the member to publish in such manner as the ombudsman sees fit a statement that the member has failed to comply with the order.

(9) If a member of the scheme fails to comply with an order under subsection (8), the housing ombudsman may—

(a) take such steps as the ombudsman considers appropriate to publish what the member ought to have published, and

(b) recover from the member the costs of doing so.

(10) In this section, “the housing ombudsman” means the housing ombudsman appointed in accordance with the scheme.

51A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Investigation of complaints

51B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

51C

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Orders and determinations

General provisions as to orders.

52

(1) The following provisions apply to any power of the Welsh Ministers under section 2, 7J, 17, 27A, 39, 50J, 51 or 55 or Schedule 2 to make an order.

(2) An order may make different provision for different cases or descriptions of case.

This includes power to make different provision for different bodies or descriptions of body, different provision for different housing activities and different provision for different areas.

(3) An order may contain such supplementary, incidental, consequential or transitional provisions and savings as the Welsh Ministers consider appropriate.

General provisions as to determinations.

53

(1) The following provisions apply to determinations of ... the Welsh Ministers this Part.

(2) A determination may make different provision for different cases or descriptions of case.

This includes power to make—

(a) different provision for different registered social landlords or descriptions of registered social landlord, and

(b) different provision for different housing activities and different provision for different areas;

and for the purposes of paragraph (b) descriptions may be framed by reference to any matters whatever, including in particular, in the case of housing activities, the manner in which they are financed.

(3) In this Part a general determination means a determination which does not relate solely to a particular case.

(4) Before making a general determination, ... the Welsh Ministers shall consult such bodies appearing to them to be representative of registered social landlords as they consider appropriate.

(5) After making a general determination, ... the Welsh Ministers shall publish the determination in such manner as they consider appropriate for bringing the determination to the notice of the landlords concerned.

Determinations of the Housing Corporation requiring approval.

54

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Minor and consequential amendments

Minor and consequential amendments: Part I.

55

(1) The enactments mentioned in Schedule 3 have effect with the minor amendments specified there.

(2) The Welsh Ministers may by order make such amendments or repeals of any enactment as appear to them necessary or expedient in consequence of the provisions of this Part.

(3) Any such order shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the National Assembly for Wales .

Interpretation

Meaning of “the Welsh Ministers”.

56

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Definitions relating to registered societies.

57

(1) In this Part, in relation to a registered society—

. . .

“committee” means the committee of management or other directing body of the society; and

“co-opted member”, in relation to the committee, includes any person co-opted to serve on the committee, whether he is a member of the society or not.

(2) Any reference in this Part to a member of the committee of a registered society includes a co-opted member.

Definitions relating to charities.

58

(1) In this Part—

(a) “trusts”, in relation to a charity, has the same meaning as in the Charities Act 2011 and “trustee” means a charitable trustee within the meaning of that Act, and

(b) “registered charity” means a charity which is registered in accordance with section 30 of that Act.

(1A) For the purposes of this Part a registered charity has received public assistance if at least one of the following conditions is satisfied—

(a) the charity has received financial assistance under section 24 of the Local Government Act 1988 (assistance for privately let housing accommodation);

(b) the charity has received financial assistance under section 19 of the Housing and Regeneration Act 2008 (financial assistance);

(i) a large scale disposal, within the meaning of section 34 of the Housing Act 1985, for which consent was required under section 32 or 43 of that Act, or

(ii) a qualifying disposal that was made under section 135 of the Leasehold Reform, Housing and Urban Development Act 1993;

(d) the charity has received a grant or loan under—

(i) section 18 (social housing grants),

(ii) section 22 (assistance from local authorities),

(iii) section 58 of the Housing Associations Act 1985 (grants or loans by local authorities),

(iv) section 50 of the Housing Act 1980, section 41 of the Housing Associations Act 1985 or any enactment replaced by that section (housing association grant),

(v) section 51 of the Housing Act 1988 or sections 54 or 55 of the Housing Associations Act 1985 (revenue deficit grant or hostel deficit grant),

(vi) section 79 of the Housing Associations Act 1985 (loans by Housing Corporation),

(vii) section 31 of the Housing Act 1974 (management grants), or

(viii) any enactment mentioned in paragraph 2 or 3 of Schedule 1 to the Housing Associations Act 1985 (pre-1974 grants and certain loans).

(2) References in this Part to a company do not include a company which is a registered charity, except where otherwise provided.

59

(1) References in this Part to an officer of a registered social landlord are—

(a) in the case of a registered charity which is not a company , to any trustee, secretary or treasurer of the charity;

(b) in the case of a registered society, to any officer of the society as defined in section 149 of the Co-operative and Community Benefit Societies Act 2014; and

(c) in the case of a company (including a company that is a registered charity) , to any director or other officer of the company within the meaning of the Companies Acts (see sections 250 and 1173(1) of the Companies Act 2006) .

(2) Any such reference includes, in the case of a registered society, a co-opted member of the committee of the society.

Meaning of “subsidiary”.

60

(1) In this Part “subsidiary”, in relation to a registered social landlord, means a company with respect to which one of the following conditions is fulfilled—

(a) the landlord is a member of the company and controls the composition of the board of directors;

(b) the landlord holds more than half in nominal value of the company’s equity share capital; or

(c) the company is a subsidiary, within the meaning of the Companies Acts (see section 1159 of the Companies Act 2006) or Part 7 of the Co-operative and Community Benefit Societies Act 2014, of another company which, by virtue of paragraph (a) or paragraph (b), is itself a subsidiary of the landlord.

(2) For the purposes of subsection (1)(a), the composition of a company’s board of directors shall be deemed to be controlled by a registered social landlord if, but only if, the landlord, by the exercise of some power exercisable by him without the consent or concurrence of any other person, can appoint or remove the holders of all or a majority of the directorships.

(3) In relation to a company which is a registered society—

(a) any reference in this section to the board of directors is a reference to the committee of management of the society; and

(b) the reference in subsection (2) to the holders of all or a majority of the directorships is a reference—

(i) to all or a majority of the members of the committee, or

(ii) if the landlord is himself a member of the committee, such number as together with him would constitute a majority.

(4) In the case of a registered social landlord which is a body of trustees, references in this section to the landlord are to the trustees acting as such.

Meaning of “associate”.

61

(1) In this Part “associate”, in relation to a registered social landlord, means—

(a) any body of which the landlord is a subsidiary, and

(b) any other subsidiary of such a body.

(2) In this section “subsidiary” has the same meaning as in the Companies Acts (see section 1159 of the Companies Act 2006) or Part 7 of the Co-operative and Community Benefit Societies Act 2014 or, in the case of a body which is itself a registered social landlord, has the meaning given by section 60.

Members of a person’s family: Part I.

62

(1) A person is a member of another’s family within the meaning of this Part if—

(a) he is the spouse or civil partner of that person, or he and that person live together as if they were a married couple or civil partners, or

(b) he is that person’s parent, grandparent, child, grandchild, brother, sister, uncle, aunt, nephew or niece.

(2) For the purpose of subsection (1)(b)—

(a) a relationship by marriage or civil partnership shall be treated as a relationship by blood,

(b) a relationship of the half-blood shall be treated as a relationship of the whole blood, and

Minor definitions: Part I.

63

(1) In this Part—

“action” includes inaction, proposed action and decision;

“company” means a company registered under the Companies Act 2006;

“dwelling” means a building or part of a building occupied or intended to be occupied as a separate dwelling, together with any yard, garden, outhouses and appurtenances belonging to it or usually enjoyed with it;

“fully mutual”, in relation to a housing association, and “co-operative housing association” have the same meaning as in the Housing Associations Act 1985 (see section 1(2) of that Act);

“hostel” means a building in which is provided for persons generally or for a class or classes of persons—residential accommodation otherwise than in separate and self-contained premises, andeither board or facilities for the preparation of food adequate to the needs of those persons, or both;

“house” includes—any part of a building occupied or intended to be occupied as a separate dwelling, andany yard, garden, outhouses and appurtenances belonging to it or usually enjoyed with it;

“housing accommodation” includes flats, lodging-houses and hostels;

“housing activities” means, in relation to a registered social landlord, all its activities in pursuance of the purposes, objects and powers mentioned in or specified under section 2;

“information” includes accounts, estimates and returns;

“local authority” has the same meaning as in the Housing Associations Act 1985;

“long tenancy” has the same meaning as in Part V of the Housing Act 1985;

“misconduct” includes any failure to comply with the requirements of this Part of this Act;

“modifications” includes additions, alterations and omissions and cognate expressions shall be construed accordingly;

“notice” means notice in writing;

notify” means notify in writing;

“public sector landlord” means any of the authorities or bodies within section 80(1) of the Housing Act 1985 (the landlord condition for secure tenancies);

“registrar of companies” has the same meaning as in the Companies Acts (see section 1060 of the Companies Act 2006) ;

“representations” means representations in writing;

“statutory tenancy” has the same meaning as in the Housing Act 1985.

(2) References in this Part to the provision of a dwelling or house include the provision of a dwelling or house—

(a) by erecting the dwelling or house, or converting a building into dwellings or a house, or

(b) by altering, enlarging, repairing or improving an existing dwelling or house;

and references to a dwelling or house provided by means of a grant or other financial assistance are to its being so provided directly or indirectly.

Index of defined expressions: Part I.

64

The following Table shows provisions defining or otherwise explaining expressions used in this Part (other than provisions defining or explaining an expression used in the same section)—

Part II — Houses in multiple occupation

Registration schemes

Making and approval of registration schemes.

65

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Registration schemes: control provisions.

66

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Registration schemes: special control provisions.

67

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Offences in connection with registration schemes.

68

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Information requirements in connection with registration schemes.

69

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Existing registration schemes.

70

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other amendments of Part XI of the Housing Act 1985

Restriction on notices requiring execution of works.

71

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Recovery of expenses of notice requiring execution of works.

72

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duty to keep premises fit for number of occupants.

73

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 354 direction to be local land charge.

74

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Means of escape from fire.

75

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Works notices: improvement of enforcement procedures.

76

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Codes of practice.

77

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Increase of fines, &c.

78

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Minor amendments.

79

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Common lodging houses

Repeal of Part XII of the Housing Act 1985.

80

(1) Part XII of the Housing Act 1985 (common lodging houses) is hereby repealed.

(2) In consequence of the above repeal—

(a) in section 619(2) of the Housing Act 1985, for “The other provisions of this Act” substitute “ The provisions of Parts I to XI and XIII to XVIII of this Act ”; and

(b) in section 65(2)(a) of the Housing Act 1988, for “XII” substitute “ XI ”.

(3) The Secretary of State may by order make such consequential amendments or repeals in any local Act as he considers necessary or expedient.

Any such order shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Part III — Landlord and Tenant

Chapter I — TENANTS’ RIGHTS

Forfeiture

Restriction on termination of tenancy for failure to pay service charge.

81

(1) A landlord may not, in relation to premises let as a dwelling, exercise a right of re-entry or forfeiture for failure by a tenant to pay a service charge or administration charge unless—

(a) it is finally determined by (or on appeal from) the appropriate tribunal or by a court, or by an arbitral tribunal in proceedings pursuant to a post-dispute arbitration agreement, that the amount of the service charge or administration charge is payable by him, or

(b) the tenant has admitted that it is so payable.

(2) The landlord may not exercise a right of re-entry or forfeiture by virtue of subsection (1)(a) until after the end of the period of 14 days beginning with the day after that on which the final determination is made.

(3) For the purposes of this section it is finally determined that the amount of a service charge or administration charge is payable—

(a) if a decision that it is payable is not appealed against or otherwise challenged, at the end of the time for bringing an appeal or other challenge, or

(b) if such a decision is appealed against or otherwise challenged and not set aside in consequence of the appeal or other challenge, at the time specified in subsection (3A).

(3A) The time referred to in subsection (3)(b) is the time when the appeal or other challenge is disposed of—

(a) by the determination of the appeal or other challenge and the expiry of the time for bringing a subsequent appeal (if any), or

(b) by its being abandoned or otherwise ceasing to have effect.

(4) The reference in subsection (1) to premises let as a dwelling does not include premises let on—

(a) a tenancy to which Part II of the Landlord and Tenant Act 1954 applies (business tenancies),

(b) a tenancy of an agricultural holding within the meaning of the Agricultural Holdings Act 1986 in relation to which that Act applies, or

(4A) References in this section to the exercise of a right of re-entry or forfeiture include the service of a notice under section 146(1) of the Law of Property Act 1925 (restriction on re-entry or forfeiture).

(5) In this section

(a) “administration charge” has the meaning given by Part 1 of Schedule 11 to the Commonhold and Leasehold Reform Act 2002,

(b) “arbitration agreement” and “arbitral tribunal” have the same meaning as in Part 1 of the Arbitration Act 1996 (c. 23) and “post-dispute arbitration agreement”, in relation to any matter, means an arbitration agreement made after a dispute about the matter has arisen,

“service charge” means a service charge within the meaning of section 18(1) of the Landlord and Tenant Act 1985, other than one excluded from that section by section 27 of that Act (rent of dwelling registered and not entered as variable).

(5A) Any order of a court to give effect to a determination of the appropriate tribunal shall be treated as a determination by the court for the purposes of this section.

(6) Nothing in this section affects the exercise of a right of re-entry or forfeiture on other grounds.

(7) For the purposes of this section, “appropriate tribunal” means—

(a) in relation to premises in England, the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal; and

(b) in relation to premises in Wales, a leasehold valuation tribunal.

Notice under s.146 of the Law of Property Act 1925.

82

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Service charges

Determination of reasonableness of service charges.

83

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) In the Schedule to the Landlord and Tenant Act 1985, for paragraph 8 (right to challenge landlord’s choice of insurers) substitute—

(8) (1) This paragraph applies where a tenancy of a dwelling requires the tenant to insure the dwelling with an insurer nominated by the landlord. (2) The tenant or landlord may apply to a county court or leasehold valuation tribunal for a determination whether— (a) the insurance which is available from the nominated insurer for insuring the tenant’s dwelling is unsatisfactory in any respect, or (b) the premiums payable in respect of any such insurance are excessive. (3) No such application may be made in respect of a matter which— (a) has been agreed or admitted by the tenant, (b) under an arbitration agreement to which the tenant is a party is to be referred to arbitration, or (c) has been the subject of determination by a court or arbitral tribunal. (4) On an application under this paragraph the court or tribunal may make— (a) an order requiring the landlord to nominate such other insurer as is specified in the order, or (b) an order requiring him to nominate another insurer who satisfies such requirements in relation to the insurance of the dwelling as are specified in the order. (5) Any such order of a leasehold valuation tribunal may, with the leave of the court, be enforced in the same way as an order of a county court to the same effect. (6) An agreement by the tenant of a dwelling (other than an arbitration agreement) is void in so far as it purports to provide for a determination in a particular manner, or on particular evidence, of any question which may be the subject of an application under this paragraph.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) For section 20C of the Landlord and Tenant Act 1985 (limitation of service charges: costs of court proceedings) substitute—

(20C) (1) A tenant may make an application for an order that all or any of the costs incurred, or to be incurred, by the landlord in connection with proceedings before a court or leasehold valuation tribunal, or the Lands Tribunal, or in connection with arbitration proceedings, are not to be regarded as relevant costs to be taken into account in determining the amount of any service charge payable by the tenant or any other person or persons specified in the application. (2) The application shall be made— (a) in the case of court proceedings, to the court before which the proceedings are taking place or, if the application is made after the proceedings are concluded, to a county court; (b) in the case of proceedings before a leasehold valuation tribunal, to the tribunal before which the proceedings are taking place or, if the application is made after the proceedings are concluded, to any leasehold valuation tribunal; (c) in the case of proceedings before the Lands Tribunal, to the tribunal; (d) in the case of arbitration proceedings, to the arbitral tribunal or, if the application is made after the proceedings are concluded, to a county court. (3) The court or tribunal to which the application is made may make such order on the application as it considers just and equitable in the circumstances.

(5) In section 38 of the Landlord and Tenant Act 1985 (minor definitions), at the appropriate place insert—

“arbitration agreement”, “arbitration proceedings” and “arbitral tribunal” have the same meaning as in Part I of the Arbitration Act 1996;

(6) In section 39 of that Act (index of defined expressions), at the appropriate place insert—

arbitration agreement, arbitration proceedings and arbitral tribunal	section 38

Right to appoint surveyor to advise on matters relating to service charges.

84

(1) A recognised tenants’ association may appoint a surveyor for the purposes of this section to advise on any matters relating to, or which may give rise to, service charges payable to a landlord by one or more members of the association.

The provisions of Schedule 4 have effect for conferring on a surveyor so appointed rights of access to documents and premises.

(2) A person shall not be so appointed unless he is a qualified surveyor.

For this purpose “qualified surveyor” has the same meaning as in section 78(4)(a) of the Leasehold Reform, Housing and Urban Development Act 1993 (persons qualified for appointment to carry out management audit).

(3) The appointment shall take effect for the purposes of this section upon notice in writing being given to the landlord by the association stating the name and address of the surveyor, the duration of his appointment and the matters in respect of which he is appointed.

(4) An appointment shall cease to have effect for the purposes of this section if the association gives notice in writing to the landlord to that effect or if the association ceases to exist.

(5) A notice is duly given under this section to a landlord of any tenants if it is given to a person who receives on behalf of the landlord the rent payable by those tenants; and a person to whom such a notice is so given shall forward it as soon as may be to the landlord.

(6) In this section—

“recognised tenants’ association” has the same meaning as in the provisions of the Landlord and Tenant Act 1985 relating to service charges (see section 29 of that Act); and

“service charge” means a service charge within the meaning of section 18(1) of that Act, other than one excluded from that section by section 27 of that Act (rent of dwelling registered and not entered as variable).

Appointment of manager

Appointment of manager by the court.

85

(1) Section 24 of the Landlord and Tenant Act 1987 (appointment of manager by the court) is amended as follows.

(2) In subsection (2) (circumstances in which order may be made), in paragraph (a) (breach of obligation by landlord), omit sub-paragraph (ii) (requirement that circumstances likely to continue).

(3) In that subsection, after paragraph (a), and before the word “or” following that paragraph, insert—

(ab) where the court is satisfied— (i) that unreasonable service charges have been made, or are proposed or likely to be made, and (ii) that it is just and convenient to make the order in all the circumstances of the case; (ac) where the court is satisfied— (i) that the landlord has failed to comply with any relevant provision of a code of practice approved by the Secretary of State under section 87 of the Leasehold Reform, Housing and Urban Development Act 1993 (codes of management practice), and (ii) that it is just and convenient to make the order in all the circumstances of the case;

(4) After that subsection insert—

(2A) For the purposes of subsection (2)(ab) a service charge shall be taken to be unreasonable— (a) if the amount is unreasonable having regard to the items for which it is payable, (b) if the items for which it is payable are of an unnecessarily high standard, or (c) if the items for which it is payable are of an insufficient standard with the result that additional service charges are or may be incurred. In that provision and this subsection “service charge” means a service charge within the meaning of section 18(1) of the Landlord and Tenant Act 1985, other than one excluded from that section by section 27 of that Act (rent of dwelling registered and not entered as variable).

(5) The above amendments apply to applications for an order under section 24 of the Landlord and Tenant Act 1987 which are made after this section comes into force.

In relation to any such application the reference in the inserted subsection (2)(ab) to service charges which have been made includes services charges made before that date.

(6) After subsection (9) insert—

(9A) The court shall not vary or discharge an order under subsection (9) on a landlord’s application unless it is satisfied— (a) that the variation or discharge of the order will not result in a recurrence of the circumstances which led to the order being made, and (b) that it is just and convenient in all the circumstances of the case to vary or discharge the order.

Appointment of manager: transfer of jurisdiction to leasehold valuation tribunal.

86

(1) Part II of the Landlord and Tenant Act 1987 (appointment of managers by the court) is amended as follows for the purpose of transferring to a leasehold valuation tribunal the jurisdiction of the court under that Part.

(2) In the following contexts for “the court”, in the first (or only) place where it occurs, substitute “a leasehold valuation tribunal”: section 21(1), section 22(2)(b), section 22(3), section 23(1), section 24(1), (2), (9) and (10); and in every other context in those sections, except section 21(6), for “the court” substitute “the tribunal”.

(3) In section 21(6) (exclusion of application under inherent jurisdiction of court) for “any jurisdiction existing apart from this Act” substitute “any jurisdiction”.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) In section 52 of the Landlord and Tenant Act 1987 (jurisdiction of county courts), in subsection (2)(a) for “Parts I to IV” substitute “Parts I, III and IV”.

Text of Part II of the Landlord and Tenant Act 1987, as amended.

87

The text of Part II of the Landlord and Tenant Act 1987 as amended by this Act is set out in Schedule 5.

Period after which acquisition order may be made.

88

In Part III of the Landlord and Tenant Act 1987 (compulsory acquisition by tenants of their landlord’s interest), in section 29(3) (conditions for making acquisition orders: period since appointment of manager under Part II) for “three years” substitute “ two years ”.

Right of first refusal

Application of right of first refusal in relation to contracts.

89

(1) After section 4 of the Landlord and Tenant Act 1987 (relevant disposals) insert—

(4A) (1) The provisions of this Part apply to a contract to create or transfer an estate or interest in land, whether conditional or unconditional and whether or not enforceable by specific performance, as they apply in relation to a disposal consisting of the creation or transfer of such an estate or interest. As they so apply— (a) references to a disposal of any description shall be construed as references to a contract to make such a disposal; (b) references to making a disposal of any description shall be construed as references to entering into a contract to make such a disposal; and (c) references to the transferee under the disposal shall be construed as references to the other party to the contract and include a reference to any other person to whom an estate or interest is to be granted or transferred in pursuance of the contract. (2) The provisions of this Part apply to an assignment of rights under such a contract as is mentioned in subsection (1) as they apply in relation to a disposal consisting of the transfer of an estate or interest in land. As they so apply— (a) references to a disposal of any description shall be construed as references to an assignment of rights under a contract to make such a disposal; (b) references to making a disposal of any description shall be construed as references to making an assignment of rights under a contract to make such a disposal; (c) references to the landlord shall be construed as references to the assignor; and (d) references to the transferee under the disposal shall be construed as references to the assignee of such rights. (3) The provisions of this Part apply to a contract to make such an assignment as is mentioned in subsection (2) as they apply (in accordance with subsection (1)) to a contract to create or transfer an estate or interest in land. (4) Nothing in this section affects the operation of the provisions of this Part relating to options or rights of pre-emption.

(2) In section 4(2) of the Landlord and Tenant Act 1987 (relevant disposals: excluded disposals), for paragraph (i) (certain disposals in pursuance of existing obligations) substitute—

(i) a disposal in pursuance of a contract, option or right of pre-emption binding on the landlord (except as provided by section 8D (application of sections 11 to 17 to disposal in pursuance of option or right of pre-emption));

(3) In section 20(1) (interpretation), in the definition of “disposal” for “has the meaning given by section 4(3)” substitute “ shall be construed in accordance with section 4(3) and section 4A (application of provisions to contracts) ”.

Notice required to be given by landlord making disposal.

90

(1) In section 4(2) of the Landlord and Tenant Act 1987 (disposals which are not relevant disposals for the purposes of Part I of that Act), for paragraph (l) substitute—

(l) a disposal by a body corporate to a company which has been an associated company of that body for at least two years.

(2) The above amendment does not apply to a disposal made in pursuance of an obligation entered into before the commencement of this section.

Offence of failure to comply with requirements of Part I.

91

(1) After section 10 of the Landlord and Tenant Act 1987 insert—

(10A) (1) A landlord commits an offence if, without reasonable excuse, he makes a relevant disposal affecting premises to which this Part applies— (a) without having first complied with the requirements of section 5 as regards the service of notices on the qualifying tenants of flats contained in the premises, or (b) in contravention of any prohibition or restriction imposed by sections 6 to 10. (2) A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 5 on the standard scale. (3) Where an offence under this section committed by a body corporate is proved— (a) to have been committed with the consent or connivance of a director, manager, secretary or other similar officer of the body corporate, or a person purporting to act in such a capacity, or (b) to be due to any neglect on the part of such an officer or person, he, as well as the body corporate, is guilty of the offence and liable to be proceeded against and punished accordingly. Where the affairs of a body corporate are managed by its members, the above provision applies in relation to the acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate. (4) Proceedings for an offence under this section may be brought by a local housing authority (within the meaning of section 1 of the Housing Act 1985). (5) Nothing in this section affects the validity of the disposal.

(2) The above amendment does not apply to a disposal made in pursuance of an obligation entered into before the commencement of this section.

Procedure for exercise of rights of first refusal.

92

(1) Part I of the Landlord and Tenant Act 1987 (tenants’ rights of first refusal) is amended in accordance with Schedule 6.

(2) The amendments restate the principal provisions of that Part so as to—

(a) simplify the procedures for the exercise of the rights conferred on tenants, and

(b) apply those procedures in relation to contracts and certain special cases.

(3) In Schedule 6—

Part I sets out provisions replacing sections 5 to 10 of the Act (rights of first refusal),

Part II sets out provisions replacing sections 11 to 15 of the Act (enforcement by tenants of rights against purchaser),

Part III sets out provisions replacing sections 16 and 17 of the Act (enforcement of rights against subsequent purchasers and termination of rights), and

Part IV contains consequential amendments.

Duty of new landlord to inform tenant of rights.

93

(1) In the Landlord and Tenant Act 1985, after section 3 (duty to inform tenant of assignment of landlord’s interest) insert—

(3A) (1) Where a new landlord is required by section 3(1) to give notice to a tenant of an assignment to him, then if— (a) the tenant is a qualifying tenant within the meaning of Part I of the Landlord and Tenant Act 1987 (tenants’ rights of first refusal), and (b) the assignment was a relevant disposal within the meaning of that Part affecting premises to which at the time of the disposal that Part applied, the landlord shall give also notice in writing to the tenant to the following effect. (2) The notice shall state— (a) that the disposal to the landlord was one to which Part I of the Landlord and Tenant Act 1987 applied; (b) that the tenant (together with other qualifying tenants) may have the right under that Part— (i) to obtain information about the disposal, and (ii) to acquire the landlord’s interest in the whole or part of the premises in which the tenant’s flat is situated; and (c) the time within which any such right must be exercised, and the fact that the time would run from the date of receipt of notice under this section by the requisite majority of qualifying tenants (within the meaning of that Part). (3) A person who is required to give notice under this section and who fails, without reasonable excuse, to do so within the time allowed for giving notice under section 3(1) commits a summary offence and is liable on conviction to a fine not exceeding level 4 on the standard scale.

(2) In section 32(1) of the Landlord and Tenant Act 1985 (provisions not applying to tenancies within Part II of the Landlord and Tenant Act 1954), for “sections 1 to 3” substitute “ sections 1 to 3A ”.

General advice etc.

Provision of general advice etc. about residential tenancies.

94

(1) The Secretary of State may give financial assistance to any person in relation to the provision by that person of information, training or general advice about, or a dispute resolution service in connection with —

(a) any aspect of the law of landlord and tenant, so far as relating to residential tenancies,

(aa) any other matter relating to residential tenancies,

(b) any matter relating to Chapter IV of Part I of the Leasehold Reform, Housing and Urban Development Act 1993 (estate management schemes in connection with enfranchisement).

(2) Financial assistance under this section may be given in such form and on such terms as the Secretary of State considers appropriate.

(3) The terms on which financial assistance under this section may be given may, in particular, include provision as to the circumstances in which the assistance must be repaid or otherwise made good to the Secretary of State and the manner in which that is to be done.

Supplementary

Jurisdiction of county courts.

95

(1) Any jurisdiction expressed by a provision to which this section applies to be conferred on the court shall be exercised by the county court.

(2) There shall also be brought in the county court any proceedings for determining any question arising under or by virtue of any provision to which this section applies.

(3) Where, however, other proceedings are properly brought in the High Court, that court has jurisdiction to hear and determine proceedings to which subsection (1) or (2) applies which are joined with those proceedings.

(4) Where proceedings are brought in the county court by virtue of subsection (1) or (2), that court has jurisdiction to hear and determine other proceedings joined with those proceedings despite the fact that they would otherwise be outside its jurisdiction.

(5) The provisions to which this section applies are—

(a) section 81 (restriction on termination of tenancy for failure to pay service charge), and

(b) section 84 (right to appoint surveyor to advise on matters relating to service charges) and Schedule 4 (rights exercisable by surveyor appointed by tenants’ association).

Chapter II — Assured tenancies

Assured shorthold tenancies

Tenancies which are assured shorthold tenancies.

96

(1) In Chapter II of Part I of the Housing Act 1988 (assured shorthold tenancies) there shall be inserted at the beginning—

(19A) An assured tenancy which— (a) is entered into on or after the day on which section 96 of the Housing Act 1996 comes into force (otherwise than pursuant to a contract made before that day), or (b) comes into being by virtue of section 5 above on the coming to an end of an assured tenancy within paragraph (a) above, is an assured shorthold tenancy unless it falls within any paragraph in Schedule 2A to this Act.

(2) After Schedule 2 to that Act there shall be inserted the Schedule set out in Schedule 7 to this Act.

Duty of landlord to provide statement of terms of assured shorthold tenancy.

97

After section 20 of the Housing Act 1988 there shall be inserted—

(20A) (1) Subject to subsection (3) below, a tenant under an assured shorthold tenancy to which section 19A above applies may, by notice in writing, require the landlord under that tenancy to provide him with a written statement of any term of the tenancy which— (a) falls within subsection (2) below, and (b) is not evidenced in writing. (2) The following terms of a tenancy fall within this subsection, namely— (a) the date on which the tenancy began or, if it is a statutory periodic tenancy or a tenancy to which section 39(7) below applies, the date on which the tenancy came into being, (b) the rent payable under the tenancy and the dates on which that rent is payable, (c) any term providing for a review of the rent payable under the tenancy, and (d) in the case of a fixed term tenancy, the length of the fixed term. (3) No notice may be given under subsection (1) above in relation to a term of the tenancy if— (a) the landlord under the tenancy has provided a statement of that term in response to an earlier notice under that subsection given by the tenant under the tenancy, and (b) the term has not been varied since the provision of the statement referred to in paragraph (a) above. (4) A landlord who fails, without reasonable excuse, to comply with a notice under subsection (1) above within the period of 28 days beginning with the date on which he received the notice is liable on summary conviction to a fine not exceeding level 4 on the standard scale. (5) A statement provided for the purposes of subsection (1) above shall not be regarded as conclusive evidence of what was agreed by the parties to the tenancy in question. (6) Where— (a) a term of a statutory periodic tenancy is one which has effect by virtue of section 5(3)(e) above, or (b) a term of a tenancy to which subsection (7) of section 39 below applies is one which has effect by virtue of subsection (6)(e) of that section, subsection (1) above shall have effect in relation to it as if paragraph (b) related to the term of the tenancy from which it derives. (7) In subsections (1) and (3) above— (a) references to the tenant under the tenancy shall, in the case of joint tenants, be taken to be references to any of the tenants, and (b) references to the landlord under the tenancy shall, in the case of joint landlords, be taken to be references to any of the landlords.

Form of notices under s. 21 of the Housing Act 1988.

98

(1) Section 21 of the Housing Act 1988 (recovery of possession on expiry or termination of assured shorthold tenancy) shall be amended as follows.

(2) In subsection (1)(b) (which requires the landlord under a fixed term tenancy to give two months’ notice to recover possession), after “notice” there shall be inserted “ in writing ”.

(3) In subsection (4)(a) (corresponding provision for periodic tenancies), after “notice”, where it first occurs, there shall be inserted “ in writing ”.

Restriction on recovery of possession on expiry or termination.

99

In section 21 of the Housing Act 1988 there shall be inserted at the end—

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Housing Act 1996

Further notice to be given to the Welsh Ministers.

41

Moratorium on disposal of land, &c.

42

Period of moratorium.

43

Appointment of interim manager

43A

Proposals as to ownership and management of landlord’s land.

44

Effect of agreed proposals.

45

Appointment of manager to implement agreed proposals.

46

Powers of the manager.

47

Powers of the manager: transfer of engagements.

48

Assistance by the Welsh Ministers.

49

Application to court to secure compliance with agreed proposals.

50

CHAPTER 4A — ENFORCEMENT POWERS

General

Application of Chapter 4A

50A

Exercise of enforcement powers

50B

Enforcement notice

Grounds for giving notice

50C

Content

50D

Appeal

50E

Withdrawal

50F

Sanction

50G

Penalty

Grounds for imposition

50H

Imposition

50I

Amount

50J

Warning

50K

Representations

50L

Enforcement

50M

Appeal

50N

Compensation

Grounds for award

50O

Persons to whom compensation may be awarded

50P

Award

50Q

Impact

50R

Warning

50S

Representations

50T

Enforcement

50U

Appeal

50V

Chapter V — Miscellaneous and general provisions

Housing ombudsman

Schemes for investigation of complaints.

51

Power of housing ombudsman to issue guidance to scheme members

51ZA

Social Housing Ombudsman for Wales

51A