Housing and Planning Act 2016
- (1) Rent regulations may include provision for the purpose of ensuring that where a requirement imposed under section 80(1) ceases to apply, the rent is changed to what it would have been if the requirement had never applied.
- (2) Rent regulations may include provision for the purpose of ensuring that where—
- (a) a local housing authority is required by section 82(2) to charge the maximum rent because of a tenant's failure to provide information or evidence, and
- (b) the tenant subsequently provides the necessary information or evidence,
the rent is changed to what it would have been if section 82(2) had never applied.
Power to change rents and procedure for changing rents
85
- (1) Rent regulations may give a local housing authority power to change the rent payable under a tenancy for the purpose of complying with the regulations.
- (2) Rent regulations may make provision about the procedure for changing rent to comply with the regulations (whether the change is made using a power given by regulations under subsection (1) or otherwise).
- (3) Regulations made in reliance on subsection (2) may, in particular—
- (a) make provision about the review of decisions to increase rent;
- (b) give rights of appeal to the First-tier Tribunal and amend existing rights of appeal.
- (4) Regulations under this section may amend any provision made by or under an Act passed before this Act or in the same Session.
Payment by local authority of increased income to Secretary of State
86
- (1) Rent regulations may require a local housing authority to make a payment or payments to the Secretary of State in respect of any estimated increase in rental income because of the regulations.
- (2) The amount of a payment is to be calculated in accordance with the regulations.
- (3) The regulations may provide for deductions to be made to reflect the administrative costs of local authorities in implementing the regulations.
- (4) The regulations may provide for interest to be charged in the event of late payment.
- (5) The regulations may provide for assumptions to be made in making a calculation, whether or not those assumptions are, or are likely to be, borne out by events.
- (6) The regulations may make provision about how and when payments are to be made including, in particular, provision for payments by instalment.
Provision of information to Secretary of State
87
Rent regulations may give the Secretary of State a power to require a local housing authority to provide information in connection with the regulations.
Interaction with other legislation and consequential amendments
88
- (1) The Secretary of State must use the power in section 24(5) of the Welfare Reform and Work Act 2016 to provide that section 23 of that Act does not apply to a high income tenant of social housing to whom rent regulations apply.
- (2) In section 24 of the Housing Act 1985 (rent), after subsection (5) insert—
(5A) See also Chapter 3 of Part 4 of the Housing and Planning Act 2016 (rents for high income social tenants in England).
- (3) In Part 2 of Schedule 4 to the Local Government and Housing Act 1989 (the keeping of the Housing Revenue Account: debits), after item 10 insert—
Item 11: payments under section 86 of the Housing and Planning Act 2016 Any sums payable for the year to the Secretary of State under regulations made in reliance on section 86 of the Housing and Planning Act 2016 (rents for high income social tenants: payment by local authority of increased income to Secretary of State).
Private registered providers: rent policies for high income tenants
Private providers: policies for high income social tenants
89
- (1) A private registered provider of social housing that has a policy about levels of rent for high income social tenants in England must publish that policy.
- (2) The policy must include provision for requesting reviews of, or appealing, decisions under the policy.
HMRC information for private registered providers
90
- (1) HMRC may disclose information for the purpose of enabling a private registered provider of social housing to apply any relevant policy about levels of rent for high income social tenants in England.
- (2) The information may only be disclosed to—
- (a) the private registered provider of social housing,
- (b) the Secretary of State for the purposes of passing the information to registered providers,
- (c) a public body that has been given the function of passing information between HMRC and registered providers by regulations under subsection (3), or
- (d) a body with which the Secretary of State has made arrangements for the passing of information between HMRC and registered providers.
- (3) The Secretary of State may by regulations—
- (a) give a public body the function mentioned in subsection (2)(c), and
- (b) make provision about the carrying out of that function.
- (4) The Secretary of State must obtain HMRC's consent before making—
- (a) arrangements under subsection (2)(d), or
- (b) regulations under subsection (3).
- (5) Information disclosed under this section to the Secretary of State or to a body mentioned in subsection (2)(c) or (d) may be passed on to a registered provider for which it is intended.
- (6) Information disclosed under this section may not otherwise be further disclosed without authorisation from HMRC.
- (7) Where a person contravenes subsection (6) by disclosing any revenue and customs information relating to a person whose identity—
- (a) is specified in the disclosure, or
- (b) can be deduced from it,
section 19 of the Commissioners for Revenue and Customs Act 2005 (wrongful disclosure) applies in relation to that disclosure as it applies in relation to a disclosure of such information in contravention of section 20(9) of that Act.
- (8) In this section—
- “HMRC” means the Commissioners for Her Majesty's Revenue and Customs;
- “relevant”, in relation to a private registered provider's policy about levels of rent for high income social tenants in England, means a policy that—has been published as required by section 89, andcomplies with any requirements imposed under subsection (2) of that section;
- “revenue and customs information relating to a person” has the meaning given by section 19(2) of the Commissioners for Revenue and Customs Act 2005;
- “tenant” includes prospective tenant.
Interpretation
Interpretation of Chapter
91
In this Chapter—
- “high income” has the meaning given by regulations under section 81;
- “local housing authority” has the meaning given by section 1 of the Housing Act 1985;
- “rent” includes payments under a licence to occupy;
- “rent regulations” has the meaning given by section 80;
- “social housing” has the same meaning as in Part 2 of the Housing and Regeneration Act 2008 (see sections 68 and 72 of that Act);
- “tenancy” includes a licence to occupy;
- “tenant” includes a person who has a licence to occupy.
CHAPTER 4 — Reducing regulation of social housing etc
Reducing social housing regulation
92
Schedule 4 contains amendments to reduce the regulation of social housing.
Reducing local authority influence over private registered providers
93
- (1) The Secretary of State may by regulations make provision for the purpose of limiting or removing the ability of local authorities to exert influence over private registered providers through—
- (a) appointing or removing officers of private registered providers;
- (b) exercising or controlling voting rights.
- (2) The regulations may in particular—
- (a) limit the number of officers that a local authority may appoint;
- (b) prohibit a local authority from appointing officers;
- (c) confer power on a private registered provider to remove officers appointed by a local authority;
- (d) prohibit a local authority from doing things that would result in it obtaining voting rights in a private registered provider;
- (e) require a local authority to take steps to reduce or get rid of any voting rights that it has in a private registered provider.
- (3) Regulations under this section may override or modify any contractual or other rights (whenever created) or anything in a private registered provider's constitution.
- (4) Regulations under this section may—
- (a) confer a power to amend the constitution of a private registered provider in consequence of provision made by the regulations;
- (b) make provision about the procedure for exercising that power.
- (5) In this section—
- “appointing”, in relation to an officer, includes nominating or otherwise influencing the selection of the officer;
- “constitution” includes rules;
- “local authority” has the meaning given by section 106 of the Housing Associations Act 1985;
- “officer”, in relation to a private registered provider, has the meaning given by section 270 of the Housing and Regeneration Act 2008;
- “private registered provider” means a private registered provider of social housing.
Recovery of social housing assistance: successors in title
94
- (1) Section 33 of the Housing and Regeneration Act 2008 (recovery of social housing assistance: interest and successors in title) is amended as follows.
- (2) In subsection (6)(b), after “another person” insert “ (“the successor”) ”.
- (3) After subsection (6) insert—
(6A) But subsection (7) does not apply if— (a) the successor is a person other than a registered provider of social housing, and (b) at any time since the social housing assistance was given— (i) a person has enforced a security over the social housing, or (ii) the social housing has been disposed of by a body while it is being wound up or is in administration (which, for this purpose, includes housing administration under Chapter 5 of Part 4 of the Housing and Planning Act 2016).”
- (4) In subsection (7) for “that other person” substitute “ the successor ”.
CHAPTER 5 — Insolvency of registered providers of social housing
Housing administration
Housing administration order: providers of social housing in England
95
- (1) In this Chapter “housing administration order” means an order which—
- (a) is made by the court in relation to a private registered provider of social housing that is—
- (i) a company,
- (ii) a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014, or
- (iii) a charitable incorporated organisation within the meaning of Part 11 of the Charities Act 2011, and
- (b) directs that, while the order is in force, the provider's affairs, business and property are to be managed by a person appointed by the court.
- (2) The person appointed for the purposes of the housing administration order is referred to in this Chapter as the “housing administrator”.
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Objectives of housing administration
96
- (1) A housing administrator has two objectives—
- (a) Objective 1: normal administration (see section 97), and
- (b) Objective 2: keeping social housing in the regulated sector (see section 98).
- (2) Objective 1 takes priority over Objective 2 (but the housing administrator must, so far as possible, work towards both objectives).
- (3) It follows that, in pursuing Objective 2, the housing administrator must not do anything that would result in a worse distribution to creditors than would be the case if the administrator did not need to pursue Objective 2.
- (4) A reference in this Chapter to the objectives of a housing administration is to the objectives to be pursued by the housing administrator.
Objective 1: normal administration
97
- (1) Objective 1 is to—
- (a) rescue the registered provider as a going concern,
- (b) achieve a better result for the registered provider's creditors as a whole than would be likely if the registered provider were wound up (without first being in housing administration), or
- (c) realise property in order to make a distribution to one or more secured or preferential creditors.
- (2) The housing administrator must aim to achieve Objective 1(a) unless the housing administrator thinks—
- (a) that it is not reasonably practicable to achieve it, or
- (b) that Objective 1(b) would achieve a better result for the registered provider's creditors as a whole.
- (3) The housing administrator may aim to achieve Objective 1(c) only if—
- (a) the housing administrator thinks that it is not reasonably practicable to achieve Objective 1(a) or (b), and
- (b) the housing administrator does not unnecessarily harm the interests of the registered provider's creditors as a whole.
- (4) In pursuing Objective 1(a), (b) or (c) the housing administrator must act in the interests of the registered provider's creditors as a whole so far as consistent with that Objective.
Objective 2: keeping social housing in the regulated sector
98
- (1) Objective 2 is to ensure that the registered provider's social housing remains in the regulated housing sector.
- (2) For this purpose, social housing remains in the regulated housing sector for so long as it is owned by a private registered provider.
Applications for housing administration orders
99
- (1) An application for a housing administration order may be made only—
- (a) by the Secretary of State, or
- (b) with the consent of the Secretary of State, by the Regulator of Social Housing.
- (2) The applicant for a housing administration order in relation to a registered provider must give notice of the application to—
- (a) every person who has appointed an administrative receiver of the provider,
- (b) every person who is or may be entitled to appoint an administrative receiver of the registered provider,
- (c) every person who is or may be entitled to make an appointment in relation to the registered provider under paragraph 14 of Schedule B1 to the Insolvency Act 1986 (appointment of administrators by holders of floating charges), and
- (d) any other persons specified by housing administration rules.
- (3) The notice must be given as soon as possible after the making of the application.
- (4) In this section “administrative receiver” has
- (a) the meaning given by section 251 of the Insolvency Act 1986 for the purposes of Parts 1 to 7 of that Act, ...
- (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Powers of court
100
- (1) On hearing an application for a housing administration order, the court has the following powers—
- (a) it may make the order,
- (b) it may dismiss the application,
- (c) it may adjourn the hearing conditionally or unconditionally,
- (d) it may make an interim order,
- (e) it may treat the application as a winding-up petition and make any order the court could make under section 125 of the Insolvency Act 1986 (power of court on hearing winding-up petition), and
- (f) it may make any other order which it thinks appropriate.
- (2) The court may make a housing administration order in relation to a registered provider only if it is satisfied—
- (a) that the registered provider is unable, or is likely to be unable, to pay its debts, or
- (b) that, on a petition by the Secretary of State under section 124A of the Insolvency Act 1986, it would be just and equitable (disregarding the objectives of the housing administration) to wind up the registered provider in the public interest.
- (3) The court may not make a housing administration order on the ground set out in subsection (2)(b) unless the Secretary of State has certified to the court that the case is one in which the Secretary of State considers (disregarding the objectives of the housing administration) that it would be appropriate to petition under section 124A of the Insolvency Act 1986.
- (4) The court has no power to make a housing administration order in relation to a registered provider which—
- (a) is in administration under Schedule B1 to the Insolvency Act 1986, or
- (b) has gone into liquidation (within the meaning of section 247(2) of the Insolvency Act 1986).
- (5) A housing administration order comes into force—
- (a) at the time appointed by the court, or
- (b) if no time is appointed by the court, when the order is made.
- (6) An interim order under subsection (1)(d) may, in particular—
- (a) restrict the exercise of a power of the registered provider or of its relevant officers, or
- (b) make provision conferring a discretion on a person qualified to act as an insolvency practitioner in relation to the registered provider.
- (7) In subsection (6)(a) “relevant officer”—
- (a) in relation to a company, means a director,
- (b) in relation to a registered society, means a member of the management committee or other directing body of the society, and
- (c) in relation to a charitable incorporated organisation, means a charity trustee (as defined by section 177 of the Charities Act 2011).
- (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (9) For the purposes of this section a registered provider is unable to pay its debts if—
- (a) it is deemed to be unable to pay its debts under section 123 of the Insolvency Act 1986, or
- (b) it is an unregistered company which is deemed, as a result of any of sections 222 to 224 of the Insolvency Act 1986, to be so unable for the purposes of section 221 of that Act, or which would be so deemed if it were an unregistered company for the purposes of those sections.
Housing administrators
101
- (1) The housing administrator of a registered provider—
- (a) is an officer of the court, and
- (b) in carrying out functions in relation to the registered provider, is the registered provider's agent.
- (2) The housing administrator of a registered provider must aim to achieve the objectives of the housing administration as quickly and as efficiently as is reasonably practicable.
- (3) A person is not to be the housing administrator of a registered provider unless qualified to act as an insolvency practitioner in relation to the registered provider.
- (4) If the court appoints two or more persons as the housing administrator of a registered provider, the appointment must set out—
- (a) which (if any) of the functions of a housing administrator are to be carried out only by the appointees acting jointly,
- (b) the circumstances (if any) in which functions of a housing administrator are to be carried out by one of the appointees, or by particular appointees, acting alone, and
- (c) the circumstances (if any) in which things done in relation to one of the appointees, or in relation to particular appointees, are to be treated as done in relation to all of them.
Conduct of administration etc
102
- (1) Schedule 5 contains provision applying the provisions of Schedule B1 to the Insolvency Act 1986, and certain other legislation, to housing administration orders in relation to companies.
- (2) The Secretary of State may by regulations provide for any provision of Schedule B1 to the Insolvency Act 1986 or any other insolvency legislation to apply, with or without modifications, to cases where a housing administration order is made in relation a limited liability partnership, to a registered society or a charitable incorporated organisation.
- (3) The Secretary of State may by regulations modify any insolvency legislation as it applies in relation a limited liability partnership, to a registered society or a charitable incorporated organisation if the Secretary State considers the modifications are appropriate in connection with any provision made by or under this Chapter.
- (4) In subsection (3) “insolvency legislation” means—
- (a) the Insolvency Act 1986, or
- (b) any other legislation (whenever passed or made) that relates to insolvency or makes provision by reference to anything that is or may be done under the Insolvency Act 1986.
- (5) The power to make rules under section 411 of the Insolvency Act 1986 is to apply for the purpose of giving effect to this Chapter as it applies for the purpose of giving effect to Parts 1 to 7 of that Act (and, accordingly, as if references in that section to those Parts included references to this Chapter).
- (6) Section 413(2) of the Insolvency Act 1986 (duty to consult Insolvency Rules Committee about rules) does not apply to rules made under section 411 of that Act as a result of this section.
Housing administrator may sell land free from planning obligations
103
- (1) If the housing administrator of a registered provider disposes of land that is the subject of a planning obligation that contains relevant terms, the relevant terms are not binding on the person to whom the land is disposed of or any successor in title.
- (2) In this section—
- “disposes of”, in relation to land, means sells a freehold or leasehold interest in the land or grants a lease of the land;
- “planning obligation” means a planning obligation under section 106 of the Town and Country Planning Act 1990 (whether entered into before or after this section comes into force);
- “relevant terms” in relation to a planning obligation, means any restrictions or requirements imposed by the planning obligation that are expressed not to apply in the event that the land is disposed of by a mortgagee.
Restrictions on other insolvency procedures
Winding-up orders
104
- (1) This section applies if a person other than the Secretary of State petitions for the winding-up of a registered provider that is—
- (a) a company,
- (aa) a limited liability partnership,
- (b) a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014, or
- (c) a charitable incorporated organisation within the meaning of Part 11 of the Charities Act 2011.
- (2) The court may not exercise its powers on a winding-up petition unless—
- (a) notice of the petition has been given to the Regulator of Social Housing and a period of at least 28 days has elapsed since that notice was given, or
- (b) the Regulator of Social Housing has waived the notice requirement in paragraph (a).
- (2A) A notice under subsection (2) must—
- (a) be given in writing,
- (b) be signed by, or on behalf of, the petitioner,
- (c) specify the date the petition was presented, and
- (d) contain a copy of the petition.
- (2B) Subsection (2C) applies if a person gives a notice purporting to be a notice under subsection (2) but which does not meet the requirements of any (or all) of paragraphs (b), (c) or (d) of subsection (2A).
- (2C) The Regulator of Social Housing may, by notice in writing to the petitioner, treat the purported notice as notice given under subsection (2)(a) (and a purported notice so treated will be taken as having been given at the time the purported notice was given).
- (3) If an application for a housing administration order in relation to the registered provider is made to the court in accordance with section 99 before a winding-up order is made on the petition, the court may exercise its powers under section 100 (instead of exercising its powers on the petition).
- (4) The Regulator of Social Housing must give the Secretary of State a copy of any notice given under subsection (2)(a).
- (5) The Regulator of Social Housing may waive the notice requirement under subsection (2)(a) only with the consent of the Secretary of State.
- (6) References in this section to the court's powers on a winding-up petition are to—
- (a) its powers under section 125 of the Insolvency Act 1986 (other than its power of adjournment), and
- (b) its powers under section 135 of the Insolvency Act 1986.
Voluntary winding up
105
- (1) This section applies to a private registered provider that is—
- (a) a company,
- (aa) a limited liability partnership,
- (b) a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014, or
- (c) a charitable incorporated organisation within the meaning of Part 11 of the Charities Act 2011.
- (2) The registered provider has no power to pass a resolution for voluntary winding up without the permission of the court.
- (3) Permission may be granted by the court only on an application made by the registered provider.
- (4) The court may not grant permission unless—
- (a) notice of the application has been given to the Regulator of Social Housing and a period of at least 28 days has elapsed since that notice was given, or
- (b) the Regulator of Social Housing has waived the notice requirement in paragraph (a).
- (4A) A notice under subsection (4) must—
- (a) be given in writing,
- (b) be signed by, or on behalf of, the registered provider,
- (c) specify the date the application was made, and
- (d) contain a copy of the application.
- (4B) Subsection (4C) applies if a person gives a notice purporting to be a notice under subsection (4) but which does not meet the requirements of any (or all) of paragraphs (b), (c) or (d) of subsection (4A).
- (4C) The Regulator of Social Housing may, by notice in writing to the registered provider, treat the purported notice as notice given under subsection (4)(a) (and a purported notice so treated will be taken as having been given at the time the purported notice was given).
- (5) If an application for a housing administration order in relation to the registered provider is made to the court in accordance with section 99 after an application for permission under this section has been made and before it is granted, the court may exercise its powers under section 100.
- (6) The Regulator of Social Housing must give the Secretary of State a copy of any notice given under subsection (4)(a).
- (7) The Regulator of Social Housing may waive the notice requirement under subsection (4)(a) only with the consent of the Secretary of State.
- (8) In this section “a resolution for voluntary winding up” has the same meaning as in the Insolvency Act 1986.
Making of ordinary administration orders
106
- (1) This section applies if a person other than the Secretary of State makes an ordinary administration application in relation to a private registered provider that is—
- (a) a company, ...
- (aa) a limited liability partnership, or
- (b) a charitable incorporated organisation within the meaning of Part 11 of the Charities Act 2011.
- (2) The court must dismiss the application if—
- (a) a housing administration order is in force in relation to the registered provider, or
- (b) a housing administration order has been made in relation to the registered provider but is not yet in force.
- (3) If subsection (2) does not apply, the court, on hearing the application, must not exercise its powers under paragraph 13 of Schedule B1 to the Insolvency Act 1986 (other than its power of adjournment) unless—
- (a) either—
- (i) notice of the application has been given to the Regulator of Social Housing and a period of at least 28 days has elapsed since that notice was given, or
- (ii) the Regulator of Social Housing has waived the notice requirement in sub-paragraph (i), and
- (b) there is no application for a housing administration order which is outstanding.
- (3A) A notice under subsection (3) must—
- (a) be given in writing,
- (b) be signed by, or on behalf of, the person who made the ordinary administration application,
- (c) specify the date the application was made, and
- (d) contain a copy of the application.
- (3B) Subsection (3C) applies if a person gives a notice purporting to be a notice under subsection (3) but which does not meet the requirements of any (or all) of paragraphs (b), (c) or (d) of subsection (3A).
- (3C) The Regulator of Social Housing may, by notice in writing to the person who made the ordinary administration application, treat the purported notice as notice given under subsection (3)(a)(i) (and a purported notice so treated will be taken as having been given at the time the purported notice was given).
- (4) The Regulator of Social Housing must give the Secretary of State a copy of any notice given under subsection (3)(a).
- (5) Paragraph 44 of Schedule B1 to the Insolvency Act 1986 (interim moratorium) does not prevent, or require the permission of the court for, the making of an application for a housing administration order.
- (6) On the making of a housing administration order in relation to a registered provider, the court must dismiss any ordinary administration application made in relation to the registered provider which is outstanding.
- (7) The Regulator of Social Housing may waive the notice requirement under subsection (3)(a)(i) only with the consent of the Secretary of State.
- (8) In this section “ordinary administration application” means an application in accordance with paragraph 12 of Schedule B1 to the Insolvency Act 1986.
Administrator appointments by creditors
107
- (1) Subsections (2) to (4) make provision about appointments under paragraph 14 or 22 of Schedule B1 to the Insolvency Act 1986 (powers to appoint administrators) in relation to a private registered provider that is—
- (a) a company, ...
- (aa) a limited liability partnership, or
- (b) a charitable incorporated organisation within the meaning of Part 11 of the Charities Act 2011.
- (2) If in any case—
- (a) a housing administration order is in force in relation to the registered provider,
- (b) a housing administration order has been made in relation to the registered provider but is not yet in force, or
- (c) an application for a housing administration order in relation to the registered provider is outstanding,
a person may not take any step to make an appointment.
- (3) In any other case, an appointment takes effect only if each of the following conditions are met.
- (4) The conditions are—
- (a) either—
- (i) that notice of the appointment has been given to the Regulator of Social Housing ... and that a period of 28 days has elapsed since that notice was given, or
- (ii) that the Regulator of Social Housing has waived the notice requirement in sub-paragraph (i),
- (b) that there is no outstanding application to the court for a housing administration order in relation to the registered provider, and
- (c) that the making of an application for a housing administration order in relation to the registered provider has not resulted in the making of a housing administration order which is in force or is still to come into force.
- (4A) A notice under subsection (4) must—
- (a) be given in writing,
- (b) be signed by, or on behalf of, the person making the appointment,
- (c) specify the date the appointment was made, and
- (d) contain copies of every document in relation to the appointment that is filed or lodged with the court in accordance with paragraph 18 or 29 of Schedule B1 to the Insolvency Act 1986.
- (4B) Subsection (4C) applies if a person gives a notice purporting to be a notice under subsection (4) but which does not meet the requirements of any (or all) of paragraphs (b), (c) or (d) of subsection (4A).
- (4C) The Regulator of Social Housing may, by notice in writing to the person making the appointment, treat the purported notice as notice given under subsection (4)(a)(i) (and a purported notice so treated will be taken as having been given at the time the purported notice was given).
- (5) The Regulator of Social Housing must give the Secretary of State a copy of any notice given under subsection (4)(a) ....
- (6) The Regulator of Social Housing may waive the notice requirement under subsection (4)(a)(i) only with the consent of the Secretary of State.
- (7) Paragraph 44 of Schedule B1 to the Insolvency Act 1986 (interim moratorium) does not prevent, or require the permission of the court for, the making of an application for a housing administration order at any time before the appointment takes effect.
Enforcement of security
108
- (1) This section applies in relation to a private registered provider ...
- (2) A person may not take any step to enforce a security over property of the registered provider unless—
- (a) notice of the intention to do so has been given to the Regulator of Social Housing and a period of at least 28 days has elapsed since the notice was given, or
- (b) the Regulator of Social Housing has waived the notice requirement in paragraph (a).
- (2A) A notice under subsection (2) must—
- (a) be given in writing, and
- (b) be signed by, or on behalf of, the person intending to enforce the security.
- (2B) Subsection (2C) applies if a person gives a notice purporting to be a notice under subsection (2) but which does not meet the requirement of paragraph (b) of subsection (2A).
- (2C) The Regulator of Social Housing may, by notice in writing to the person intending to enforce the security, treat the purported notice as notice given under subsection (2)(a) (and a purported notice so treated will be taken as having been given at the time the purported notice was given).
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3A) In the case of a registered provider that is a charity registered under the Charities Act 2011 which is not a body corporate, the reference to the property of the registered provider is to the property held on the trusts of the charity (and for this purpose “trusts” has the same meaning as in the Charities Act 2011, see section 353 of that Act).
- (4) The Regulator of Social Housing must give the Secretary of State a copy of any notice given under subsection (2)(a).
- (5) The Regulator of Social Housing may waive the notice requirement under subsection (2)(a) only with the consent of the Secretary of State.
Financial support for registered providers in housing administration
Grants and loans where housing administration order is made
109
- (1) If a housing administration order has been made in relation to a registered provider, the Secretary of State may make grants or loans to the registered provider of such amounts as appear to the Secretary of State appropriate for achieving the objectives of the housing administration.
- (2) A grant under this section may be made on any terms and conditions the Secretary of State considers appropriate (including provision for repayment, with or without interest).
Indemnities where housing administration order is made
110
- (1) If a housing administration order has been made in relation to a registered provider, the Secretary of State may agree to indemnify persons in respect of one or both of the following—
- (a) liabilities incurred in connection with the carrying out of functions by the housing administrator, and
- (b) loss or damage sustained in that connection.
- (2) The agreement may be made in whatever manner, and on whatever terms, the Secretary of State considers appropriate.
- (3) As soon as practicable after agreeing to indemnify persons under this section, the Secretary of State must lay a statement of the agreement before Parliament.
- (4) For repayment of sums paid by the Secretary of State in consequence of an indemnity agreed to under this section, see section 111.
- (5) The power of the Secretary of State to agree to indemnify persons—
- (a) is confined to a power to agree to indemnify persons in respect of liabilities, loss and damage incurred or sustained by them as relevant persons, but
- (b) includes power to agree to indemnify persons (whether or not they are identified or identifiable at the time of the agreement) who subsequently become relevant persons.
- (6) The following are relevant persons for the purposes of this section—
- (a) the housing administrator,
- (b) an employee of the housing administrator,
- (c) a partner or employee of a firm of which the housing administrator is a partner,
- (d) a partner or employee of a firm of which the housing administrator is an employee,
- (e) a partner of a firm of which the housing administrator was an employee or partner at a time when the order was in force,
- (f) a body corporate which is the employer of the housing administrator,
- (g) an officer, employee or member of such a body corporate, and
- (h) a Scottish firm which is the employer of the housing administrator or of which the housing administrator is a partner.
- (7) For the purposes of subsection (6)—
- (a) references to the housing administrator are to be read, where two or more persons are appointed as the housing administrator, as references to any one or more of them, and
- (b) references to a firm of which a person was a partner or employee at a particular time include a firm which holds itself out to be the successor of a firm of which the person was a partner or employee at that time.
Indemnities: repayment by registered provider etc
111
- (1) This section applies where a sum is paid out by the Secretary of State in consequence of an indemnity agreed to under section 110 in relation to the housing administrator of a registered provider.
- (2) The registered provider must pay the Secretary of State—
- (a) such amounts in or towards the repayment to the Secretary of State of that sum as the Secretary of State may direct, and
- (b) interest on amounts outstanding under this subsection at such rates as the Secretary of State may direct.
- (3) The payments must be made by the registered provider at such times and in such manner as the Secretary of State may determine.
- (4) Subsection (2) does not apply in the case of a sum paid by the Secretary of State for indemnifying a person in respect of a liability to the registered provider.
- (5) The Secretary of State must lay before Parliament a statement, relating to the sum paid out in consequence of the indemnity—
- (a) as soon as practicable after the end of the financial year in which the sum is paid out, and
- (b) if subsection (2) applies to the sum, as soon as practicable after the end of each subsequent financial year in relation to which the repayment condition has not been met.
- (6) The repayment condition is met in relation to a financial year if—
- (a) the whole of the sum has been repaid to the Secretary of State before the beginning of the year, and
- (b) the registered provider was not at any time during the year liable to pay interest on amounts that became due in respect of the sum.
Guarantees where housing administration order is made
112
- (1) If a housing administration order has been made in relation to a registered provider the Secretary of State may guarantee—
- (a) the repayment of any sum borrowed by the registered provider while that order is in force,
- (b) the payment of interest on any sum borrowed by the registered provider while that order is in force, and
- (c) the discharge of any other financial obligation of the registered provider in connection with the borrowing of any sum while that order is in force.
- (2) The Secretary of State may give the guarantees in whatever manner, and on whatever terms, the Secretary of State considers appropriate.
- (3) As soon as practicable after giving a guarantee under this section, the Secretary of State must lay a statement of the guarantee before Parliament.
- (4) For repayment of sums paid by the Secretary of State under a guarantee given under this section, see section 113.
Guarantees: repayment by registered provider etc
113
- (1) This section applies where a sum is paid out by the Secretary of State under a guarantee given by the Secretary of State under section 112 in relation to a registered provider.
- (2) The registered provider must pay the Secretary of State—
- (a) such amounts in or towards the repayment to the Secretary of State of that sum as the Secretary of State may direct, and
- (b) interest on amounts outstanding under this subsection at such rates as the Secretary of State may direct.
- (3) The payments must be made by the registered provider at such times, and in such manner, as the Secretary of State may from time to time direct.
- (4) The Secretary of State must lay before Parliament a statement, relating to the sum paid out under the guarantee—
- (a) as soon as practicable after the end of the financial year in which the sum is paid out, and
- (b) as soon as practicable after the end of each subsequent financial year in relation to which the repayment condition has not been met.
- (5) The repayment condition is met in relation to a financial year if—
- (a) the whole of the sum has been repaid to the Secretary of State before the beginning of the year, and
- (b) the registered provider was not at any time during the year liable to pay interest on amounts that became due in respect of the sum.
Supplementary provisions
Modification of this Chapter under the Enterprise Act 2002
114
- (1) The power to modify or apply enactments conferred on the Secretary of State by each of the sections of the Enterprise Act 2002 mentioned in subsection (2) includes power to make such consequential modifications of this Chapter as the Secretary of State considers appropriate in connection with any other provision made under that section.
- (2) Those sections are—
- (a) sections 248 and 277 of the Enterprise Act 2002 (amendments consequential on that Act), and
- (b) section 254 of the Enterprise Act 2002 (power to apply insolvency law to foreign companies).
Amendments to housing moratorium and consequential amendments
115
Schedule 6 contains amendments to do with this Chapter.
Interpretation of Chapter
116
- (1) In this Chapter—
- “business”, “member”, “property” and “security” have the same meaning as in the Insolvency Act 1986;
- “charitable incorporated organisation” means a charitable incorporated organisation within the meaning of Part 11 of the Charities Act 2011;
- “company” means—a company registered under the Companies Act 2006, oran unregistered company;
- “the court”, in relation to a company , limited liability partnership or registered society, means the court having jurisdiction to wind up the company , limited liability partnership or registered society;
- ...
- “housing administration order” has the meaning given by section 95;
- “housing administration rules” means rules made under section 411 of the Insolvency Act 1986 as a result of section 102 above;
- “housing administrator” has the meaning given by section 95 and is to be read in accordance with subsection (2) below;
- “financial year” means a period of 12 months ending with 31 March;
- “legislation” includes provision made by or under—an Act,an Act of the Scottish Parliament,Northern Ireland legislation, ora Measure or Act of the National Assembly for Wales;
- “objectives of the housing administration” is to be read in accordance with section 96(4);
- “private registered provider” means a private registered provider of social housing (see section 80 of the Housing and Regeneration Act 2008);
- “registered provider” means a registered provider of social housing (see section 80 of the Housing and Regeneration Act 2008);
- “registered society” has the same meaning as in the Co-operative and Community Benefit Societies Act 2014;
- “Regulator of Social Housing” has the meaning given by section 92A of the Housing and Regeneration Act 2008;
- “Scottish firm” means a firm constituted under the law of Scotland;
- ...
- “unregistered company” means a company that is not registered under the Companies Act 2006.
- (2) In this Chapter references to the housing administrator of a registered provider—
- (a) include a person appointed under paragraph 91 or 103 of Schedule B1 to the Insolvency Act 1986, as applied by Part 1 of Schedule 5 to this Act or regulations under section 102, to be the housing administrator of the registered provider, and
- (b) if two or more persons are appointed as the housing administrator of the registered provider, are to be read in accordance with the provision made under section 101.
- (3) References in this Chapter to a person qualified to act as an insolvency practitioner in relation to a registered provider are to be read in accordance with Part 13 of the Insolvency Act 1986, but as if references in that Part to a company included a company registered under the Companies Act 2006 in Northern Ireland.
- (4) For the purposes of this Chapter an application made to the court is outstanding if it—
- (a) has not yet been granted or dismissed, and
- (b) has not been withdrawn.
- (5) An application is not to be taken as having been dismissed if an appeal against the dismissal of the application, or a subsequent appeal, is pending.
- (6) An appeal is to be treated as pending for this purpose if—
- (a) an appeal has been brought and has not been determined or withdrawn,
- (b) an application for permission to appeal has been made but has not been determined or withdrawn, or
- (c) no appeal has been brought and the period for bringing one is still running.
- (7) References in this Chapter to a provision of the Insolvency Act 1986 (except the references in subsection (2) above)—
- (a) in relation to a company, are to that provision without the modifications made by Part 1 of Schedule 5 to this Act,
- (aa) in relation to a limited liability partnership, are to that provision as it applies to limited liability partnerships otherwise than by virtue of regulations under section 102 (if at all),
- (b) in relation to a registered society, are to that provision as it applies to registered societies otherwise than by virtue of regulations under section 102 (if at all), and
- (c) in relation to a charitable incorporated organisation, are to that provision as it applies to charitable incorporated organisations otherwise than by virtue of regulations under section 102 (if at all).
Application of Part to Northern Ireland
117
- (1) This section makes provision about the application of this Chapter to Northern Ireland.
- (2) Any reference to any provision of the Insolvency Act 1986 is to have effect as a reference to the corresponding provision of the Insolvency (Northern Ireland) Order 1989.
- (3) Section 116(3) is to have effect as if the reference to Northern Ireland were to England and Wales or Scotland.
CHAPTER 6 — Secure tenancies etc.
Secure tenancies etc: phasing out of tenancies for life
118
Schedule 7 changes the law about secure tenancies, introductory tenancies and demoted tenancies to phase out tenancies for life.
Termination of fixed-term secure tenancies without need to forfeit
119
- (1) The Housing Act 1985 is amended as follows.
- (2) In section 82 (security of tenure)—
- (a) before subsection (1) insert—
(A1) A fixed-term secure tenancy of a dwelling-house in England that is granted on or after the day on which paragraph 4 of Schedule 7 to the Housing and Planning Act 2016 comes fully into force cannot be brought to an end by the landlord except by— (a) obtaining— (i) an order of the court for the possession of the dwelling-house, and (ii) the execution of the order, or (b) obtaining a demotion order under section 82A. (A2) A secure tenancy can be brought to an end by the landlord as mentioned in subsection (A1)(a) whether or not the tenancy contains terms for it to be brought to an end.
- (b) in subsection (1)(b), for “but” substitute “ , other than one to which subsection (A1) applies, that is ”;
- (c) in subsection (2), after “subsection” insert “ (A1)(a) or ”.
- (3) In section 83 (proceedings for possession), in subsection (A1), for “82(1A)” substitute “ 82(A1) or (1A) ”.
Succession to secure tenancies and related tenancies
120
Schedule 8 changes the law about succession to secure tenancies, introductory tenancies and demoted tenancies.
Secure and assured tenancies: transfer of tenancy
121
- (1) The Localism Act 2011 is amended as follows.
- (2) In section 158 of the Localism Act 2011 (secure and assured tenancies: transfer of tenancy)—
- (a) in subsection (3)(a), for “not a flexible tenancy” substitute “ an old-style secure tenancy ”;
- (b) in subsection (4)(a), for “is a flexible tenancy” substitute “ is not an old-style secure tenancy ”;
- (c) omit subsection (6);
- (d) in subsection (7), for “fifth” substitute “ fourth ”;
- (e) for subsections (8) and (9) substitute—
(8) The new tenancy is to be granted on whatever terms the landlord determines. (9) A landlord must, on request by a relevant tenant, inform the tenant of the terms on which a new tenancy will be granted to that tenant. (9A) Subsection (9B) applies in a case where— (a) the request was made before section 121 of the Housing and Planning Act 2016 came into force, and (b) one or more of the landlords had not yet complied with the request when that section came into force. (9B) In that case any new tenancy granted in pursuance of this section to a relevant tenant whose existing tenancy is an old-style secure tenancy, or an assured tenancy that is not an assured shorthold tenancy, must be— (a) an old-style secure tenancy, or (b) an assured tenancy that is not an assured shorthold tenancy, according to the landlord's capacity to grant a tenancy of either kind.
- (3) In section 159 (interpretation of section 158 etc), in subsection (6), omit paragraph (b).
PART 5 — Housing, estate agents and rentcharges: other changes
Electrical safety standards
Electrical safety standards for properties let by private landlords
122
- (1) The Secretary of State may by regulations impose duties on a ... landlord of residential premises in England to whom this section applies for the purposes of ensuring that electrical safety standards are met during any period when the premises are occupied under a tenancy.
- (1A) This section applies to a landlord who is—
- (a) a private landlord, or
- (b) a registered provider of social housing.
- (2) “Electrical safety standards” means standards specified in, or determined in accordance with, the regulations in relation to—
- (a) the installations in the premises for the supply of electricity, or
- (b) electrical fixtures, fittings or appliances provided by the landlord.
- (3) The duties imposed on the landlord may include duties to ensure that a qualified person has checked that the electrical safety standards are met.
- (4) The regulations may make provision about—
- (a) how and when checks are carried out;
- (b) who is qualified to carry out checks.
- (5) The regulations may require the landlord—
- (a) to obtain a certificate from the qualified person confirming that electrical safety standards are met, and
- (b) to give a copy of a certificate to the tenant, or a prospective tenant, or any other person specified in the regulations.
- (6) In this section—
- “premises” includes land, buildings, moveable structures, vehicles and vessels;
- “private landlord” means a landlord who is not within section 80(1) of the Housing Act 1985 (the landlord condition for secure tenancies);
- “residential premises” means premises all or part of which comprise a dwelling;
- “tenancy” includes a licence to occupy (and “landlord” is to be read accordingly).
Electrical safety standards: enforcement
123
- (1) Regulations under section 122 may provide for covenants to be implied into a tenancy.
- (2) Regulations under that section—
- (a) may make provision about the enforcement of a duty imposed by the regulations;
- (b) may confer functions on a local housing authority in England.
- (3) The provision that may be made about enforcement includes provision—
- (a) requiring a landlord who fails to comply with a duty imposed by the regulations to pay a financial penalty (or more than one penalty in the event of a continuing failure);
- (b) conferring power on a local housing authority to arrange for a person to enter on the premises, with the consent of the tenant, to remedy any failure by the landlord to comply with a duty imposed by the regulations.
- (4) The provision that may be made in reliance on subsection (3)(a) includes provision—
- (a) about the procedure to be followed in imposing penalties;
- (b) about the amount of penalties;
- (c) conferring rights of appeal against penalties;
- (d) for the enforcement of penalties;
- (e) about the application of sums paid by way of penalties (and such provision may permit or require the payment of sums into the Consolidated Fund).
- (5) The provision that may be made in reliance on subsection (3)(b) includes provision—
- (a) about procedural matters;
- (b) enabling a local housing authority to recover from the landlord any costs incurred by it in remedying the failure;
- (c) about the application of costs recovered (and such provision may permit or require the payment of sums into the Consolidated Fund).
- (6) In this section “local housing authority” has the meaning given by section 1 of the Housing Act 1985.
Accommodation needs in England
Assessment of accommodation needs
124
- (1) In section 8 of the Housing Act 1985 (periodical review of housing needs), after subsection (2) insert—
(3) In the case of a local housing authority in England, the duty under subsection (1) includes a duty to consider the needs of people residing in or resorting to their district with respect to the provision of— (a) sites on which caravans can be stationed, or (b) places on inland waterways where houseboats can be moored. (4) In subsection (3)— - “caravan” has the meaning given by section 29 of the Caravan Sites and Control of Development Act 1960; - “houseboat” means a boat or similar structure designed or adapted for use as a place to live.
- (2) In the Housing Act 2004 omit sections 225 and 226 (accommodation needs of gypsies and travellers).
Housing regulation in England
Licences for HMO and other rented accommodation: additional tests
125
- (1) The Housing Act 2004 is amended as follows.
- (2) In section 63 (application for licences: houses in multiple occupation), in subsection (6)(c), after “information” insert “ or evidence ”.
- (3) In section 66 (tests for fitness and satisfactory management arrangements: houses in multiple occupation)—
- (a) after subsection (1) insert—
(1A) A local housing authority in England must also have regard to any evidence within subsection (3A) or (3B).
;
- (b) in subsection (2), in paragraph (c), after “tenant law” insert “ (including Part 3 of the Immigration Act 2014) ”;
- (c) after subsection (3) insert—
(3A) Evidence is within this subsection if it shows that P— (a) requires leave to enter or remain in the United Kingdom but does not have it; or (b) is insolvent or an undischarged bankrupt. (3B) Evidence is within this subsection if— (a) it shows that any person associated or formerly associated with P (whether on a personal, work or other basis) is a person to whom subsection (3A)(a) or (b) applies; and (b) it appears to the authority that the evidence is relevant to the question whether P is a fit and proper person to be the licence holder or (as the case may be) the manager of the house.
- (4) In section 70 (revocation of licences), in subsection (2), in the words after paragraph (c)—
- (a) for “Section 66(1) applies” substitute “ Section 66(1) and (1A) apply ”;
- (b) for “it applies” substitute “ they apply ”.
- (5) In section 87 (application for licences: certain other houses), in subsection (6)(c) after “information” insert “ or evidence ”.
- (6) In section 89 (tests for fitness and satisfactory management arrangements: certain other houses)—
- (a) after subsection (1) insert—
(1A) A local housing authority in England must also have regard to any evidence within subsection (3A) or (3B).
;
- (b) in subsection (2), in paragraph (c), after “tenant law” insert “ (including Part 3 of the Immigration Act 2014) ”;
- (c) after subsection (3) insert—
(3A) Evidence is within this subsection if it shows that P— (a) requires leave to enter or remain in the United Kingdom but does not have it; or (b) is insolvent or an undischarged bankrupt. (3B) Evidence is within this subsection if— (a) it shows that any person associated or formerly associated with P (whether on a personal, work or other basis) is a person to whom subsection (3A)(a) or (b) applies; and (b) it appears to the authority that the evidence is relevant to the question whether P is a fit and proper person to be the licence holder or (as the case may be) the manager of the house.
- (7) In section 93, in subsection (2), in the words after paragraph (c)—
- (a) for “Section 89(1) applies” substitute “ Section 89(1) and (1A) apply ”;
- (b) for “it applies” substitute “ they apply ”.
Financial penalty as alternative to prosecution under Housing Act 2004
126
Schedule 9 amends the Housing Act 2004 to allow financial penalties to be imposed as an alternative to prosecution for certain offences.
Offence of contravening an overcrowding notice: level of fine
127
- (1) Section 139 of the Housing Act 2004 (overcrowding notices) is amended as follows.
- (2) In subsection (7), omit “and is liable on summary conviction to a fine not exceeding level 4 on the standard scale”.
- (3) After subsection (7) insert—
(7A) A person who commits an offence under subsection (7) in relation to premises in England is liable on summary conviction to a fine. (7B) A person who commits an offence under subsection (7) in relation to premises in Wales is liable on summary conviction to a fine not exceeding level 4 on the standard scale.
Housing information in England
Tenancy deposit information
128
- (1) The Housing Act 2004 is amended as follows.
- (2) In section 212 (tenancy deposit schemes), after subsection (6) insert—
(6A) For further provision about what must be included in the arrangements, see section 212A.
- (3) After section 212 insert—
(212A) (1) Arrangements under section 212(1) made by the Secretary of State must require the scheme administrator— (a) to give a local housing authority in England any specified information that they request, or (b) to provide facilities for the sharing of specified information with a local housing authority in England. (2) In subsection (1) “specified information” means information, of a description specified in the arrangements, that relates to a tenancy of premises in the local housing authority's area. (3) Arrangements made by virtue of this section may make the requirement to provide information or facilities to a local housing authority conditional on the payment of a fee. (4) Arrangements made by virtue of this section may include supplementary provision, for example about— (a) the form or manner in which any information is to be provided, (b) the time or times at which it is to be provided, and (c) the notification of anyone to whom the information relates. (5) Information obtained by a local housing authority by virtue of this section may be used only— (a) for a purpose connected with the exercise of the authority's functions under any of Parts 1 to 4 in relation to any premises, or (b) for the purpose of investigating whether an offence has been committed under any of those Parts in relation to any premises. (6) Information obtained by a local housing authority by virtue of this section may be supplied to a person providing services to the authority for a purpose listed in subsection (5). (7) The Secretary of State may by regulations amend the list of purposes in subsection (5).
- (4) In section 250(6) (affirmative instruments), after paragraph (b) insert—
(ba) regulations under section 212A,
.
Use of information obtained for certain other statutory purposes
129
- (1) The Housing Act 2004 is amended as follows.
- (2) In section 237 (use of information obtained for certain other statutory purposes) after subsection (2) insert—
(3) The Secretary of State may by regulations amend this section so as to change the list of purposes for which a local housing authority in England may use information to which it applies.
- (3) In section 250(6) (affirmative instruments), after paragraph (c) insert—
(ca) regulations under section 237,
.
Tenants’ associations: power to request information about tenants
130
After section 29 of the Landlord and Tenant Act 1985 insert—
(29A) (1) The Secretary of State may by regulations impose duties on a landlord to provide the secretary of a relevant tenants' association with information about relevant qualifying tenants. (2) The regulations may— (a) make provision about the tenants about whom information must be provided and what information must be provided; (b) require a landlord to seek the consent of a tenant to the provision of information about that tenant; (c) require a landlord to identify how many tenants have not consented. (3) The regulations may— (a) authorise a landlord to charge costs specified in or determined in accordance with the regulations; (b) impose time limits on a landlord for the taking of any steps under the regulations; (c) make provision about the form or content of any notices under the regulations (including provision permitting or requiring a person to design the form of a notice); (d) make other provision as to the procedure in connection with anything authorised or required by the regulations. (4) The regulations may confer power on a court or tribunal to make an order remedying a failure by a landlord to comply with the regulations. (5) The regulations may include supplementary, incidental, transitional or saving provision. (6) Regulations under this section are to be made by statutory instrument. (7) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of either House of Parliament. (8) In this section— - “relevant tenants' association”, in relation to a landlord, means an association of tenants of the landlord at least one of whom is a qualifying tenant of a dwelling in England; - “relevant qualifying tenant” means— 1. a person who is a qualifying tenant of a dwelling in England and a member of the relevant tenants' association, or 2. a person who is a qualifying tenant of a dwelling in England by virtue of being required to contribute to the same costs as a qualifying tenant who is a member of the relevant tenants' association; - “qualifying tenant” means a tenant who, under the terms of the lease, is required to contribute to the same costs as another tenant by the payment of a service charge.
Administration charges
Limitation of administration charges: costs of proceedings
131
In Schedule 11 to the Commonhold and Leasehold Reform Act 2002 (administration charges), after paragraph 5 insert—
(5A) (1) A tenant of a dwelling in England may apply to the relevant court or tribunal for an order reducing or extinguishing the tenant's liability to pay a particular administration charge in respect of litigation costs. (2) The relevant court or tribunal may make whatever order on the application it considers to be just and equitable. (3) In this paragraph— (a) “litigation costs” means costs incurred, or to be incurred, by the landlord in connection with proceedings of a kind mentioned in the table, and (b) “the relevant court or tribunal” means the court or tribunal mentioned in the table in relation to those proceedings.
| Proceedings to which costs relate | “The relevant court or tribunal” |
|---|---|
| Court proceedings | The court before which the proceedings are taking place or, if the application is made after the proceedings are concluded, the county court |
| First-tier Tribunal proceedings | The First-tier Tribunal |
| Upper Tribunal proceedings | The Upper Tribunal |
| Arbitration proceedings | The arbitral tribunal or, if the application is made after the proceedings are concluded, the county court. |
Enforcement of estate agents legislation
Estate agents: lead enforcement authority
132
- (1) Before section 25 of the Estate Agents Act 1979 insert—
(24A) (1) In this Act “the lead enforcement authority” means— (a) the Secretary of State, or (b) a person whom the Secretary of State has arranged to be the lead enforcement authority in accordance with subsection (2). (2) The Secretary of State may make arrangements for one of the following to be the lead enforcement authority for the purposes of this Act (for the whole of the United Kingdom) instead of the Secretary of State— (a) a local weights and measures authority in Great Britain, or (b) the Department of Enterprise, Trade and Investment in Northern Ireland. (3) The arrangements— (a) may include provision for payments by the Secretary of State; (b) may include provision about bringing the arrangements to an end. (4) The Secretary of State may by regulations made by statutory instrument make transitional provision for when there is a change in the lead enforcement authority. (5) The regulations may relate to a specific change in the lead enforcement authority or to changes that might arise from time to time.
- (2) In section 26(1) of that Act (enforcement authorities), in paragraph (c), for “Department of Commerce for Northern Ireland” substitute “ Department of Enterprise, Trade and Investment in Northern Ireland ”.
- (3) In section 33(1) of that Act (general interpretation), for the definition of “the lead enforcement authority” substitute—
“the lead enforcement authority” has the meaning given by section 24A;
.
- (4) In paragraph 13(9) of Schedule 5 to the Consumer Rights Act 2015 (powers under Part 3 of that Schedule to be exercisable for the purposes of certain functions of the lead enforcement authority) after “Great Britain” insert “ , the Department of Enterprise, Trade and Investment in Northern Ireland or the Secretary of State ”.
Client money protection schemes for property agents
Power to require property agents to join client money protection schemes
133
- (1) The Secretary of State may by regulations require a property agent to be a member of—
- (a) a client money protection scheme approved by the Secretary of State for the purpose of the regulations, or
- (b) a government administered client money protection scheme that is designated by the Secretary of State for the purpose of the regulations.
- (2) The regulations may impose requirements about the nature of the membership that a property agent must obtain (for example, by requiring a property agent to obtain membership that results in a particular level of compensation being available).
- (3) The regulations shall—
- (a) require a property agent to obtain a certificate confirming the property agent's membership of the scheme;
- (b) require the property agent to display or publish the certificate in accordance with the regulations;
- (c) require the property agent to produce a copy of the certificate, on request, in accordance with the regulations.
- (4) In this section—
- “client money protection scheme” means a scheme which enables a person on whose behalf a property agent holds money to be compensated if all or part of that money is not repaid in circumstances in which the scheme applies;
- “government administered client money protection scheme” means a client money protection scheme that is administered by or on behalf of the Secretary of State;
- “property agent” means—a person who engages in English letting agency work within the meaning of section 54, ora person who engages in English property management work within the meaning of section 55,other than a person who engages in that work in the course of the person's employment under a contract of employment.
Client money protection schemes: approval or designation
134
- (1) The Secretary of State may by regulations make provision about the approval or designation of client money protection schemes for the purposes of regulations under section 133.
- (2) The regulations may, in particular, make provision about—
- (a) the making of applications for approval,
- (b) conditions which must be satisfied before approval may be given or a scheme may be designated;
- (c) conditions which must be complied with by administrators of approved or designated client money protection schemes (including conditions requiring the issue of certificates for the purposes of regulations under section 133(3) and about the form of those certificates);
- (d) the withdrawal of approval or revocation of a designation.
- (3) Regulations under this section may confer a discretion on the Secretary of State in connection with—
- (a) the approval or designation of a client money protection scheme,
- (b) conditions which must be complied with by the administrator of such a scheme,
- (c) the amendment of such a scheme, or
- (d) the withdrawal of approval or revocation of designation of such a scheme.
Enforcement of client money protection scheme regulations
135
- (1) The Secretary of State may by regulations make provision about the enforcement of a duty imposed by regulations under section 133.
- (2) The regulations may—
- (a) confer functions on a local authority in England;
- (b) require a property agent who fails to comply with a duty imposed by regulations under 133 to pay a financial penalty (or more than one penalty in the event of a continuing failure).
- (3) The provision that may be made under subsection (2)(a) includes provision requiring a local authority in England, when carrying out functions under the regulations, to have regard to guidance given by the Secretary of State or the lead enforcement authority (if not the Secretary of State).
- (4) The provision that may be made under subsection (2)(b) includes provision—
- (a) about the procedure to be followed in imposing penalties;
- (b) about the amount of penalties;
- (c) conferring rights of appeal against penalties;
- (d) for the enforcement of penalties;
- (e) authorising a local authority in England to use sums paid by way of penalties for the purposes of any of its functions (whether or not the function is expressed to be a function of a local weights and measures authority).
- (5) In this section “local authority in England” means a local weights and measures authority in England.
- (6) For provisions about enforcement of regulations under section 133 or 134 or under this section by the lead enforcement authority, see sections 24 to 26 of the Tenant Fees Act 2019.
- (7) In this section “lead enforcement authority” has the meaning given by section 24(1) of the Tenant Fees Act 2019.
Enfranchisement and extension of long leaseholds
Enfranchisement and extension of long leaseholds: calculations
136
Schedule 10 changes the method of calculating certain amounts under—
- (a) the Leasehold Reform Act 1967, and
- (b) the Leasehold Reform, Housing and Urban Development Act 1993.
Rentcharges
Redemption price for rentcharges
137
- (1) The Rentcharges Act 1977 is amended as follows.
- (2) In section 9(4)(a), after “in accordance with” insert “ regulations under ”.
- (3) In section 10, for subsection (1) substitute—
(1) For the purposes of section 9 above, the redemption price for a rentcharge is to be calculated in accordance with regulations made by the Secretary of State.
- (4) In section 12(2), after “such” insert “ transitional, ”.
- (5) The amendments made by this section apply in relation to cases where—
- (a) an application for a redemption certificate is made under section 8 of the Rentcharges Act 1977 before this Act is passed, but
- (b) the instructions for redemption have not been served on the applicant under section 9(4) of the Rentcharges Act 1977 before this Act is passed,
as well as to cases involving an application for a redemption certificate made after this Act is passed.
Procedure for redeeming English rentcharges
138
- (1) The Rentcharges Act 1977 is amended in accordance with subsections (2) to (5).
- (2) Before section 8 (but after the italic heading before section 8) insert—
(7A) (1) The Secretary of State may by regulations make provision allowing the owner of land in England affected by a rentcharge to redeem it. (2) Regulations under subsection (1) may not make provision in relation to— (a) a rentcharge that could be redeemed by making an application under section 8(1A), (b) a rentcharge of a kind mentioned in section 2(3) or section 3(3)(a), (c) a rentcharge in respect of which the period for which it is payable cannot be ascertained, or (d) a variable rentcharge. (3) For the purposes of subsection (2)(d) a rentcharge is variable if the amount of the rentcharge will, or may, vary in the future in accordance with the provisions of the instrument under which it is payable. (4) Regulations under subsection (1) may, in particular— (a) provide for the owner of land affected by a rentcharge to be able to redeem a rentcharge by taking specified steps, including making payments determined in accordance with the regulations; (b) require a rent owner or other person to take specified steps to facilitate the redemption of a rentcharge, such as providing information or executing a deed of release; (c) where the documents of title of the owner of land affected by a rentcharge are in the custody of a mortgagee, require the mortgagee to make those documents or copies of those documents available in accordance with the regulations; (d) permit or require a person specified in the regulations to design the form of any document to be used in connection with the redemption of rentcharges under the regulations; (e) provide for a court or tribunal to— (i) determine disputes about or in relation to the redemption of a rentcharge; (ii) make orders about the redemption of a rentcharge; (iii) issue a redemption certificate; (f) make provision corresponding to any of the provisions of section 10(2) to (4). (5) Nothing in this section prevents the redemption of a rentcharge otherwise than in accordance with regulations under subsection (1).
- (3) In section 8—
- (a) in subsection (1)—
- (i) after “land” insert “ in Wales ”;
- (ii) for the words from “a certificate” to the end substitute “ a redemption certificate ”;
- (b) after subsection (1) insert—
(1A) The owner of any land in England affected by a rentcharge which has been apportioned to that land by an apportionment order with a condition under— (a) section 7(2) above, or (b) section 20(1) of the Landlord and Tenant Act 1927, may apply to the Secretary of State, in accordance with this section, for a redemption certificate.
- (4) In section 12—
- (a) in subsection (1), after “this Act” insert “ , apart from regulations under section 7A, ”;
- (b) after subsection (1) insert—
(1A) Regulations under section 7A are to be made by statutory instrument. (1B) A statutory instrument containing regulations under section 7A may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.
- (5) In section 13(1), in the definition of “redemption certificate”, for the words from “has” to the end substitute “ means a certificate certifying that a rentcharge has been redeemed ”.
- (6) The Leasehold Reform Act 1967 is amended in accordance with subsections (7) and (8).
- (7) In section 8(4)(b), for “8” substitute “ 7A ”.
- (8) In section 11—
- (a) in subsection (6), after “1977” insert “ or the amount that would have to be paid to secure the redemption of that rentcharge in accordance with regulations made under section 7A of that Act ”;
- (b) in subsection (7)(a), after “specified” insert “ or required ”;
- (c) in subsection (8), for “8” substitute “ 7A ”.
PART 6 — Planning in England
Neighbourhood planning
Designation of neighbourhood areas
139
In section 61G of the Town and Country Planning Act 1990 (meaning of “neighbourhood area”), after subsection (11) insert—
(12) Regulations under subsection (11) may provide that where an application under this section— (a) meets prescribed criteria, or (b) has not been determined within a prescribed period, the local planning authority must, except in prescribed cases or circumstances, exercise their powers under this section to designate the specified area as a neighbourhood area. (13) The reference in subsection (12) to the designation of an area as a neighbourhood area includes the modification under subsection (6) of a designation already made.
Timetable in relation to neighbourhood development orders and plans
140
- (1) In Schedule 4B to the Town and Country Planning Act 1990 (process for making of neighbourhood development orders), after paragraph 13 insert—
(13A) Regulations may make provision— (a) requiring any prescribed action falling to be taken by the local planning authority under paragraph 12 or 13 to be taken by a prescribed date; (b) imposing time limits for the submission of representations invited under paragraph 13(1).
- (2) In section 61E of that Act (neighbourhood development orders), in subsection (4)(b), after “as soon as reasonably practicable after the referendum is held” insert “ and, in any event, by such date as may be prescribed ”.
- (3) In section 38A of the Planning and Compulsory Purchase Act 2004 (meaning of “neighbourhood development plan”), in subsection (4)(b), after “as soon as reasonably practicable after the referendum is held” insert “ and, in any event, by such date as may be prescribed ”.
Making neighbourhood development orders and plans: intervention powers
141
- (1) In Schedule 4B to the Town and Country Planning Act 1990, before paragraph 14 insert—
(13B) (1) This paragraph applies where the qualifying body requests the Secretary of State to intervene under this paragraph and— (a) the local planning authority have failed, by the applicable date prescribed under paragraph 13A, to take a decision as to whether a referendum is (or referendums are) to be held on the making of a neighbourhood development order, (b) a recommendation made under paragraph 10(2) is not followed by the authority, or (c) the authority make any modification under paragraph 12(5) that is not— (i) a modification recommended under paragraph 10(2)(b), (ii) a modification that the authority consider needs to be made to secure that the draft order does not breach, and is otherwise compatible with, EU obligations, (iii) a modification that the authority consider needs to be made to secure that the draft order is compatible with the Convention rights, or (iv) a modification for the purpose of correcting an error. (2) The Secretary of State may exercise functions of the local planning authority under paragraph 12(2) and (3) and— (a) if satisfied that paragraph (a) or (b) of paragraph 12(4) applies, may direct the authority to make arrangements for a referendum (or referendums) to be held on the making of a neighbourhood development order; (b) if not so satisfied, may direct the authority to refuse the proposal. (3) The Secretary of State may direct the authority to take the actions referred to in paragraph 12(8) and (9). (4) If by reason (wholly or partly) of new evidence or a new fact, or a different view taken by the Secretary of State as to a particular fact, the Secretary of State proposes to direct the local planning authority to act in a way that is not in accordance with what was recommended by the examiner— (a) the Secretary of State may require the authority to notify prescribed persons of the proposed direction (and the reason for it) and invite representations; (b) the Secretary of State may also require them to refer the issue to independent examination. (5) The order on which a referendum is (or referendums are) to be held by virtue of sub-paragraph (2)(a) is the draft order subject to such modification (if any) as the Secretary of State or the local planning authority consider appropriate. (6) The only modifications the local planning authority may make under sub-paragraph (5) are— (a) modifications that the authority consider need to be made to secure that the draft order does not breach, and is otherwise compatible with, EU obligations, (b) modifications that the authority consider need to be made to secure that the draft order is compatible with the Convention rights, and (c) modifications for the purpose of correcting errors. (13C) Regulations may make provision supplementing that made by paragraph 13B; and the regulations may in particular— (a) prescribe the form and content of a request by the qualifying body under paragraph 13B(1) and the date by which it must be made; (b) confer power on the Secretary of State to direct a local planning authority to refrain from taking any action specified in the direction that they would otherwise be required or entitled to take under paragraph 12 or 13; (c) make provision under which decisions falling to be made by the Secretary of State under paragraph 13B may be made instead by a person appointed by the Secretary of State for the purpose (an “inspector”); (d) prescribe matters that the Secretary of State or an inspector must take into account in making a decision; (e) require a local planning authority to provide prescribed information to the Secretary of State or to an inspector; (f) make provision about examinations carried out by virtue of paragraph 13B(4)(b) (including any provision of a kind mentioned in paragraph 11(2)); (g) make provision (in addition to that made by paragraph 13B(4)(b)) for the holding of an examination, and for the payment by a local planning authority of remuneration and expenses of the examiner; (h) provide for the Secretary of State, or a local planning authority on the direction of the Secretary of State, to notify to prescribed persons and to publish— (i) prescribed decisions made by the Secretary of State under paragraph 13B, (ii) the reasons for making those decisions, and (iii) other prescribed matters relating to those decisions.
- (2) In paragraph 14 of that Schedule (referendum), in sub-paragraph (1), after “as a result of paragraph 12(4)” insert “ or a direction under paragraph 13B(2)(a) ”.
- (3) In section 61N of that Act (legal challenges in relation to neighbourhood development orders), in subsection (2), before “only if” insert “ or paragraph 13B of that Schedule (intervention powers of Secretary of State) ”.
Local planning authority to notify neighbourhood forum of applications
142
In Schedule 1 to the Town and Country Planning Act 1990 (local planning authorities: distribution of functions), after paragraph 8 insert—
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