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Housing and Planning Act 2016

Type Public General Act

Publication 2016-05-12

Last updated 2026-03-11

State In force

Department Statute Law Database

Source legislation.gov.uk

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(a) the claimant's interest in some or all of the land is acquired by another person, or (b) the claimant creates an interest in some or all of the land in favour of a person other than the acquiring authority, the amount of the advance payment together with any amount paid under section 52A shall be set off against any sum payable by the authority to that other person in respect of the compulsory acquisition of the interest acquired or the compulsory acquisition or release of the interest created.

(5) After section 52 insert—

(52AZA) (1) Where the amount or aggregate amount of any payments under section 52 made on the basis of the acquiring authority's estimate of the compensation exceeds the compensation as finally determined or agreed, the excess is to be repaid. (2) If after any payment under section 52 has been made to any person it is discovered that the person was not entitled to it, the person must repay it. (3) If the notice to treat relating to an interest in land in relation to which an acquiring authority have made a payment to a claimant under section 52 is withdrawn or has ceased to have effect before the authority take possession of the land, the authority may by notice require the claimant to pay them an amount equal to the amount of the payment, unless another person has acquired the whole of the claimant's interest in the land. (4) Subsection (5) applies where— (a) a payment made to a claimant has been registered as a local land charge in accordance with section 52(8A), (b) the whole of the claimant's interest in land has subsequently been acquired by another person (a “successor”), (c) any notice to treat given in relation to the interest is withdrawn or ceases to have effect before the acquiring authority take possession of the land, and (d) the authority notify the successor that they are not going to give the successor a notice to treat (or a further notice to treat) for the interest. (5) The authority may by notice require the successor to pay them an amount equal to the amount of any payment made to the claimant under section 52. (6) A notice under subsection (3) or (5) must specify the date by which the claimant or successor must pay the amount. (7) The date mentioned in subsection (6) must be after the period of two months beginning with the day on which the authority give the notice under subsection (3) or (5). (8) Neither subsection (3) nor subsection (5) affects a right to compensation under section 31(3) or (3A) of the Land Compensation Act 1961 or section 5(2C)(b) of the Compulsory Purchase Act 1965.

Repayment of payment to mortgagee if land not acquired

198

In the Land Compensation Act 1973, after section 52ZD (inserted by section 194 above) insert—

(52ZE) (1) Where an acquiring authority have made a payment to a mortgagee under section 52ZA or 52ZB in relation to an interest in land and notify the claimant that the notice to treat relating to the interest is withdrawn or has ceased to have effect before the authority take possession of the land, the authority may by notice require the claimant to pay them an amount equal to the amount of the payment, unless another person has acquired the whole of the claimant's interest in the land. (2) Subsection (3) applies where— (a) a payment under section 52ZA or 52ZB has been registered as a local land charge in accordance with section 52(8A), (b) the whole of a claimant's interest in land has subsequently been acquired by another person (a “successor”), (c) any notice to treat given in relation to the interest is withdrawn or ceases to have effect before the authority take possession of the land, and (d) the acquiring authority notify the successor that they are not going to give the successor a notice to treat (or a further notice to treat) in relation to the interest. (3) The authority may by notice require the successor to pay them an amount equal to the amount of the payment. (4) A notice under subsection (1) or (3) must specify the date by which the claimant or successor must pay the amount. (5) The date mentioned in subsection (4) must be after the period of two months beginning with the day on which the authority give the notice under subsection (1) or (3). (6) Neither subsection (1) nor subsection (3) affects a right to compensation under section 31(3) or (3A) of the Land Compensation Act 1961 or section 5(2C)(b) of the Compulsory Purchase Act 1965.

Disputes

Objection to division of land

199

(1) Schedule 17 contains amendments about objecting to the division of land following a notice to treat under section 5 of the Compulsory Purchase Act 1965.

(2) Schedule 18 contains amendments about objecting to the division of land following a general vesting declaration under section 4 of the Compulsory Purchase (Vesting Declarations) Act 1981.

Objection to division of land: blight notices

200

(1) The Town and Country Planning Act 1990 is amended as follows.

(2) In section 153 (reference of objection to Upper Tribunal), after subsection (4) insert—

(4A) Where the effect of a blight notice would be a compulsory purchase to which Part 1 of the Compulsory Purchase Act 1965 applies, the Upper Tribunal may uphold an objection on the grounds mentioned in section 151(4)(c) only if it is satisfied that the part of the hereditament or affected area proposed to be acquired in the counter-notice— (a) in the case of a house, building or factory, can be taken without material detriment to the house, building or factory, or (b) in the case of a park or garden belonging to a house, can be taken without seriously affecting the amenity or convenience of the house.

(3) In section 166 (saving for claimant's right to sell whole hereditament etc.)—

(a) in subsection (1) omit paragraph (b) (and the “or” before it);

(b) omit subsection (2).

Power to quash decision to confirm compulsory purchase order

201

In section 24 of the Acquisition of Land Act 1981 (powers of the court), after subsection (2) insert—

(3) If the court has power under subsection (2) to quash a compulsory purchase order it may instead quash the decision to confirm the order either generally or in so far as it affects any property of the applicant.

Extension of compulsory purchase time limit during challenge

202

(1) After section 4 of the Compulsory Purchase Act 1965 (time limit for giving notice to treat) insert—

(4A) (1) If an application is made under section 23 of the Acquisition of Land Act 1981 (application to High Court in respect of compulsory purchase order), the three year period mentioned in section 4 is to be extended by— (a) a period equivalent to the period beginning with the day the application is made and ending on the day it is withdrawn or finally determined, or (b) if shorter, one year. (2) An application is not finally determined for the purposes of subsection (1)(a) if an appeal in respect of the application— (a) could be brought (ignoring any possibility of an appeal out of time with permission), or (b) has been made and not withdrawn or finally determined.

(2) After section 5A of the Compulsory Purchase (Vesting Declarations) Act 1981 (time limit for general vesting declaration) insert—

(5B) (1) If an application is made under section 23 of the Acquisition of Land Act 1981 (application to High Court in respect of compulsory purchase order), the three year period mentioned in section 5A is to be extended by— (a) a period equivalent to the period beginning with the day the application is made and ending on the day it is withdrawn or finally determined, or (b) if shorter, one year. (2) An application is not finally determined for the purposes of subsection (1)(a) if an appeal in respect of the application— (a) could be brought (ignoring any possibility of an appeal out of time with permission), or (b) has been made and not withdrawn or finally determined.

Power to override easements and other rights

203

(1) A person may carry out building or maintenance work to which this subsection applies even if it involves—

(a) interfering with a relevant right or interest, or

(b) breaching

(i) a restriction as to the user of land arising by virtue of a contract , or

(ii) an obligation under a conservation covenant.

(2) Subsection (1) applies to building or maintenance work where—

(a) there is planning consent for the building or maintenance work,

(b) the work is carried out on land that has at any time on or after the relevant day —

(i) become vested in or acquired by a specified authority or a specified company acting on behalf of a specified authority, or

(ii) been appropriated by a local authority for planning purposes as defined by section 246(1) of the Town and Country Planning Act 1990,

(d) the building or maintenance work is for purposes related to the purposes for which the land was vested, acquired or appropriated as mentioned in paragraph (b).

(3) Subsection (1) also applies to building or maintenance work where—

(a) there is planning consent for the building or maintenance work,

(b) the work is carried out on other qualifying land,

(c) the qualifying authority in relation to the land could acquire the land compulsorily for the purposes of the building or maintenance work, and

(d) the building or maintenance work is for purposes related to the purposes for which the land was vested in, or acquired or appropriated by, the qualifying authority in relation to the land.

(4) A person may use land in a case to which this subsection applies even if the use involves—

(a) interfering with a relevant right or interest, or

(b) breaching

(i) a restriction as to the user of land arising by virtue of a contract , or

(ii) an obligation under a conservation covenant.

(5) Subsection (4) applies to the use of land in a case where—

(a) there is planning consent for that use of the land,

(b) the land has at any time on or after the relevant day —

(i) become vested in or acquired by a specified authority or a specified company acting on behalf of a specified authority , or

(ii) been appropriated by a local authority for planning purposes as defined by section 246(1) of the Town and Country Planning Act 1990,

(c) the authority could acquire the land compulsorily for the purposes of erecting or constructing any building, or carrying out any works, for that use, and

(d) the use is for purposes related to the purposes for which the land was vested, acquired or appropriated as mentioned in paragraph (b).

(6) Subsection (4) also applies to the use of land in a case where—

(a) there is planning consent for that use of the land,

(b) the land is other qualifying land, and

(c) the qualifying authority in relation to the land could acquire the land compulsorily for the purposes of erecting or constructing any building, or carrying out any works, for that use, and

(d) the use is for purposes related to the purposes for which the land was vested in, or acquired or appropriated by, the qualifying authority in relation to the land.

(7) Land currently owned by a specified authority is to be treated for the purposes of subsection (2)(c) or (5)(c) as if it were not currently owned by the authority.

(8) Land currently owned by a qualifying authority is to be treated for the purposes of subsection (3)(c) or (6)(c) as if it were not currently owned by the authority.

(9) Nothing in this section authorises an interference with—

(a) a right of way on, under or over land that is a protected right, or

(b) a right of laying down, erecting, continuing or maintaining apparatus on, under or over land if it is a protected right.

(10) Nothing in this section authorises—

(a) an interference with a relevant right or interest annexed to land belonging to the National Trust which is held by the National Trust inalienably, ...

(b) a breach of a restriction as to the user of land which does not belong to the National Trust—

(i) arising by virtue of a contract to which the National Trust is a party, or

(ii) benefiting land which does belong to the National Trust , or

(11) For the purposes of subsection (10)—

(a) “National Trust” means the National Trust for Places of Historic Interest or Natural Beauty incorporated by the National Trust Act 1907, and

(b) land is held by the National Trust “inalienably” if it is inalienable under section 21 of the National Trust Act 1907 or section 8 of the National Trust Act 1939.

Compensation for overridden easements etc

204

(1) A person is liable to pay compensation for any interference with a relevant right or interest or breach of a restriction that is authorised by section 203 (1)(a) or (b)(i) or (4)(a) or (b)(i).

(1A) But a person is not liable to pay compensation under this section for breaching an obligation under a conservation covenant.

(2) The compensation is to be calculated on the same basis as compensation payable under sections 7 and 10 of the Compulsory Purchase Act 1965.

(3) Where a person other than a specified or qualifying authority is liable to pay compensation under this section but has not paid—

(a) the liability is enforceable against the authority, but

(b) the authority may recover from that person any amount it pays out.

(4) The authority against which a liability is enforceable by virtue of subsection (3)(a) is—

(a) where the land to which the compensation relates was vested in or acquired by a company through which the Greater London Authority exercises or has exercised functions in relation to housing or regeneration, the Greater London Authority,

(b) where the land was vested in or acquired by a company through which Transport for London exercises or has exercised any of its functions, Transport for London, or

(c) in all other cases, the specified or qualifying authority in which the land was vested, or by which the land was acquired or appropriated.

(5) Any dispute about compensation payable under this section may be referred to and determined by the Upper Tribunal.

Interpretation of sections 203 and 204

205

(1) In sections 203 and 204—

“building or maintenance work” means the erection, construction, carrying out or maintenance of any building or work;

“obligation under a conservation covenant” has the same meaning as in Part 7 of the Environment Act 2021;

“other qualifying land” means land in England and Wales that has at any time before 13 July 2016 been—acquired by the National Assembly for Wales or the Welsh Ministers under section 21A of the Welsh Development Agency Act 1975;vested in or acquired by an urban development corporation or a local highway authority for the purposes of Part 16 of the Local Government, Planning and Land Act 1980;acquired by a development corporation or a local highway authority for the purposes of the New Towns Act 1981;vested in or acquired by a housing action trust for the purposes of Part 3 of the Housing Act 1988;acquired or appropriated by a local authority for planning purposes as defined by section 246(1) of the Town and Country Planning Act 1990;vested in or acquired by the Homes and Communities Agency, apart from land the freehold interest in which was disposed of by the Agency before 12 April 2015;vested in or acquired by the Greater London Authority for the purposes of housing or regeneration, or vested in or acquired by a company or body through which the Greater London Authority exercises functions in relation to housing or regeneration, apart from land the freehold interest in which was disposed of before 12 April 2015—by the Authority, other than to a company or body through which it exercises functions in relation to housing or regeneration, orby such a company or body;vested in or acquired by a Mayoral development corporation (established under section 198(2) of the Localism Act 2011), apart from land the freehold interest in which was disposed of by the corporation before 12 April 2015;

“planning consent” means—permission under Part 3 of the Town and Country Planning Act 1990 or section 293A of that Act Parts 3 or 13 of the Town and Country Planning Act 1990, ...development consent under the Planning Act 2008; , or infrastructure consent under the Infrastructure (Wales) Act 2024

“protected right” means—a right vested in, or belonging to, a statutory undertaker for the purpose of carrying on its statutory undertaking, ora right conferred by, or in accordance with, the electronic communications code on the operator of an electronic communications code network (and expressions used in this paragraph have the meaning given by paragraph 1(1) of Schedule 17 to the Communications Act 2003);

“qualifying authority” in relation to other qualifying land means the person in whom the land was vested, or who acquired or appropriated the land, as mentioned in the definition of “other qualifying land (but, for the purposes of section 203(3)(c) and (6)(c), where that person is a company or body through which the Greater London Authority exercises functions in relation to housing or regeneration, the qualifying authority is the Greater London Authority);

“relevant day” means—in relation to a specified company which is a company or body through which Transport for London exercises any of its functions, 19th July 2017, andin all other cases, 13 July 2016.

“relevant right or interest” means any easement, liberty, privilege, right or advantage annexed to land and adversely affecting other land (including any natural right to support);

“specified authority” means—a Minister of the Crown or the Welsh Ministers or a government department,a local authority as defined by section 7 of the Acquisition of Land Act 1981,a body established by or under an Act,a body established by or under an Act or Measure of the National Assembly for Wales, ora statutory undertaker;

“specified company” means—a company or body through which the Greater London Authority exercises functions in relation to housing or regeneration, ora company or body through which Transport for London exercises any of its functions;

“statutory undertaker” means—a person who is, or who is deemed to be, a statutory undertaker for the purposes of any provision of Part 11 of the Town and Country Planning Act 1990, ora person in relation to whom the electronic communications code is applied by a direction under section 106(3)(a) of the Communications Act 2003;

“statutory undertaking” is to be read in accordance with section 262 of the Town and Country Planning Act 1990 (meaning of “statutory undertakers”).

(2) The Secretary of State may by regulations amend the definition of “specified authority” in subsection (1).

Amendments to do with sections 203 and 204

206

Schedule 19 gets rid of legislation replaced by sections 203 and 204.

PART 8 — Public authority land

Engagement with public authorities in relation to proposals to dispose of land

207

(1) A Minister of the Crown must, in developing proposals for the disposal of the Minister's interest in any land, engage on an ongoing basis with—

(a) each local authority in whose area the land is situated, and

(b) each public authority that is specified, or of a description specified, in regulations.

(2) A relevant public authority must, in developing proposals for the disposal of the authority's interest in any land, engage on an ongoing basis with other relevant public authorities.

(3) In subsection (2), “relevant public authority” means a public authority that is specified, or of a description specified, in regulations.

(4) A person who is subject to a duty under subsection (1) or (2) must have regard to any guidance given by the Minister for the Cabinet Office about how the duty is to be complied with.

(5) Subsections (1) and (2) do not apply in relation to proposals in respect of land that is specified, or of a description specified, in regulations.

(6) Regulations under subsection (3) may not be made so as to require a public authority to carry out engagement under subsection (2)—

(a) in relation to proposals for the disposal of an interest in land in Scotland, unless the authority is—

(i) a body to which paragraph 3 of Part 3 of Schedule 5 to the Scotland Act 1998 applies, or

(ii) Her Majesty's Revenue and Customs, ...

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6A) Regulations under subsection (3) may not be made so to require a devolved Welsh authority to carry out engagement under subsection (2).

(7) In this section—

“interest” means a freehold or leasehold interest;

“local authority” means—a county council,a county borough council,a district council,a London borough council,a combined authority established under section 103 of the Local Democracy, Economic Development and Construction Act 2009,the Common Council of the City of London (in its capacity as a local authority),the Council of the Isles of Scilly, orthe council for a local government area in Scotland;

“Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975 (see section 8(1) of that Act);

“public authority” means a person with functions of a public nature;

“regulations” means regulations made by the Minister for the Cabinet Office.

“devolved Welsh authority” has the same meaning as in the Government of Wales Act 2006 (see section 157A of that Act).

Duty of public authorities to prepare report of surplus land holdings

208

(1) A relevant public authority must, in respect of each reporting period, prepare and publish a report containing details of surplus land in England and Wales.

(2) A relevant public authority must, in respect of each reporting period, prepare and publish a report containing details of surplus land in Scotland.

(3) For the purposes of this section, land is “surplus land” in relation to a relevant public authority if—

(a) the authority owns an interest in the land,

(b) the authority has determined that the land is surplus to its requirements, and

(i) in the case of land used wholly or mainly for residential purposes, at any time before the beginning of the period of 6 months ending with the last day of the reporting period, and

(ii) in the case of other land, at any time before the beginning of the period of two years ending with that day.

(4) In this section, “relevant public authority” means—

(a) a Minister of the Crown (within the meaning of the Ministers of the Crown Act 1975), or

(b) a public authority that is specified, or of a description specified, in regulations.

(5) In determining whether land is surplus to its requirements, and in carrying out its other functions under this section, a relevant public authority must have regard to guidance given by the Secretary of State.

(6) A report prepared by a relevant public authority must explain why the authority has not disposed of surplus land.

(7) Regulations may provide that the definition of “surplus land” in subsection (3) applies in relation to public authorities that are specified, or of a description specified, in the regulations as if subsection (3)(c) were omitted.

(8) Regulations may provide that the duty under subsection (1) or (2) does not apply in respect of specified land or descriptions of land.

(9) Regulations may make further provision about reports under this section, including—

(a) provision about their form and timing,

(b) provision specifying information to be included in reports, and

(10) Regulations may not specify a devolved Welsh authority for the purposes of subsection (1).

(11) Regulations may not specify a public authority for the purposes of subsection (2) unless it is—

(a) a body to which paragraph 3 of Part 3 of Schedule 5 to the Scotland Act 1998 applies, or

(b) Her Majesty's Revenue and Customs.

(12) In this section—

“interest” means a freehold or leasehold interest;

“public authority” means a person with functions of a public nature;

“regulations” means regulations made by the Secretary of State;

“reporting period” means the period (not exceeding 12 months) specified by or determined in accordance with regulations.

“devolved Welsh authority” has the same meaning as in the Government of Wales Act 2006 (see section 157A of that Act).

Power to direct bodies to dispose of land

209

(1) Section 98 of the Local Government, Planning and Land Act 1980 (disposal of land at direction of Secretary of State) is amended as follows.

(2) Before subsection (1) insert—

(A1) Where a body to which this Part applies is a relevant public authority, the Secretary of State may in specified circumstances direct the body to take steps for the disposal of the body's freehold or leasehold interest in any land or any lesser interest in the land. (B1) In subsection (A1)— (a) “relevant public authority” has the same meaning as in section 208 of the Housing and Planning Act 2016; (b) “specified” means specified by the Secretary of State in regulations made by statutory instrument; (c) the reference to steps for the disposal of an interest in land is a reference to steps which it is necessary to take to dispose of the interest and which it is in the body's power to take.

(3) After subsection (9) insert—

(10) A statutory instrument containing regulations made by virtue of subsection (A1) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

Reports on improving efficiency and sustainability of buildings owned by local authorities

210

(1) Each authority listed in Schedule 20 must prepare, in respect of each year (beginning with 2017), a report containing a buildings efficiency and sustainability assessment.

(2) A “buildings efficiency and sustainability assessment” is an assessment of the progress made by the authority, in the year to which the report relates, towards improving the efficiency and contribution to sustainability of buildings that are part of the authority's estate.

(3) A report must, in particular, include an assessment of the progress made by the authority, in the year to which the report relates, towards—

(a) reducing the size of the authority's estate, and

(b) ensuring that buildings that become part of the authority's estate fall within the top quartile of energy performance.

(4) If a building that does not fall within the top quartile of energy performance becomes part of the authority's estate in the year to which the report relates, the report must explain why the building has nevertheless become part of the authority's estate.

(5) A report under this section must be published not later than 1 June in the year following the year to which it relates.

(6) In carrying out its functions under this section, an authority must have regard to guidance given by the Minister for the Cabinet Office.

(7) For the purposes of this section, a building is part of an authority's estate if—

(a) the building is situated in the authority's area, and

(b) the authority has a freehold or leasehold interest in the building.

(8) The Minister for the Cabinet Office may by regulations provide for buildings of a specified description to be treated as being, or as not being, part of an authority's estate for the purposes of this section.

(9) In this section, “building” means a building that uses energy for heating or cooling the whole or any part of its interior.

Reports on improving efficiency and sustainability of buildings in military estate

211

(1) Section 86 of the Climate Change Act 2008 (report on the civil estate) is amended as follows.

(2) In subsection (1)—

(a) the text from “buildings” to the end becomes paragraph (a), and

(b) after that paragraph insert

, and (b) buildings that are part of the military estate.

(3) In subsection (2)—

(a) in paragraph (a), after “estate” insert “ and the military estate ”, and

(b) in paragraph (b), after “estate” insert “ or the military estate ”.

(4) In subsection (3)—

(a) after “estate”, in the first place it occurs, insert “ or the military estate ”, and

(b) for “civil estate”, in the second place it occurs, insert “ the estate in question ”.

(5) After subsection (7) insert—

(7A) For the purposes of this section, a building is part of the military estate if— (a) it is not part of the civil estate, (b) the Secretary of State has a freehold or leasehold interest in the building, and (c) it is used by or for the purposes of Her Majesty's armed forces. (7B) The Minister for the Cabinet Office may by order provide for buildings of a specified description to be treated as being, or as not being, part of the military estate for the purposes of this section.

(6) In subsection (8), for “Any such order” substitute “ An order under subsection (7) or (7B) ”.

(7) In the heading, after “estate” insert “ and the military estate ”.

PART 9 — General

Power to make transitional provision

212

The Secretary of State may by regulations make transitional, transitory or saving provision in connection with the coming into force of any provision of this Act.

Power to make consequential provision

213

(1) The Secretary of State may by regulations make provision that is consequential on any provision made by this Act.

(2) Regulations under this section may amend, repeal or revoke any provision made by or under an Act passed or made before this Act or in the same Session.

Regulations: general

214

(1) Regulations under this Act are to be made by statutory instrument.

(2) A statutory instrument containing—

(a) regulations under section 2, 3(6), 4 or 5,

(b) regulations under section 14,

(d) regulations under section 74(9),

(e) the first regulations under section 80,

(f) regulations under section 85 that amend or repeal a provision of an Act,

(g) regulations under section 93,

(h) regulations under section 102 or paragraph 45 of Schedule 5,

(i) regulations under section 122,

(j) regulations under section 133, 134, or 135,

(k) regulations under section 154(1),

(l) regulations under section 161 that make provision of the kind referred to in section 161(3), (5), (6) or (12)(b), section 163 or section 164,

(m) regulations under section 205(2),

(n) regulations under section 213 that amend or repeal a provision of an Act, or

(o) regulations under paragraph 8 of Schedule 15 that amend or repeal a provision of an Act,

(whether alone or together with other provision) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

(3) Any other statutory instrument containing regulations under this Act is subject to annulment in pursuance of a resolution of either House of Parliament.

(4) Subsection (3) does not apply to a statutory instrument that only contains regulations under section 212 or 216.

(5) If a draft of regulations under section 69(8), 154 or 161 would, apart from this subsection, be treated as a hybrid instrument for the purposes of the Standing Orders of either House of Parliament, it is to proceed in that House as if it were not a hybrid instrument.

(6) Regulations under this Act may make—

(a) consequential, supplementary, incidental, transitional or saving provision;

(b) different provision for different purposes.

Extent

215

(1) An amendment or repeal made by this Act has the same extent as the provision amended or repealed.

(2) Chapter 5 of Part 4 and this Part extend to—

(a) England and Wales,

(b) Scotland, and

(3) Sections 207 and 208 extend to—

(a) England and Wales, and

(b) Scotland.

(4) Subject to that, this Act extends to England and Wales only.

Commencement

216

(1) The following come into force on the day on which this Act is passed—

(a) this Part;

(b) Chapter 2 of Part 4;

(d) sections 139, 140, 149, 151, 152(1) and 157;

(e) sections 161 to 168.

(2) The following come into force at the end of the period of two months beginning with the day on which this Act is passed—

(a) section 124;

(b) section 130;

(3) The other provisions of this Act come into force on such day as the Secretary of State may by regulations appoint.

(4) Different days may be appointed for different purposes.

(5) In respect of sections 181 and 183, and Schedule 15, different days may be appointed for different areas.

Short title

217

This Act may be cited as the Housing and Planning Act 2016.

SCHEDULE 1

Notice of intent

1

Before imposing a financial penalty on a person under section 23 a local housing authority must give the person notice of its proposal to do so (a “notice of intent”).

2

(1) The notice of intent must be given before the end of the period of 6 months beginning with the first day on which the authority has sufficient evidence of the conduct to which the financial penalty relates.

(2) But if the person is continuing to engage in the conduct on that day, and the conduct continues beyond the end of that day, the notice of intent may be given—

(a) at any time when the conduct is continuing, or

(b) within the period of 6 months beginning with the last day on which the conduct occurs.

3

The notice of intent must set out—

(a) the amount of the proposed financial penalty,

(b) the reasons for proposing to impose the financial penalty, and

Right to make representations

4

(1) A person who is given a notice of intent may make written representations to the local housing authority about the proposal to impose a financial penalty.

(2) Any representations must be made within the period of 28 days beginning with the day after that on which the notice was given (“the period for representations”).

Final notice

5

After the end of the period for representations the local housing authority must—

(a) decide whether to impose a financial penalty on the person, and

(b) if it decides to impose a financial penalty, decide the amount of the penalty.

6

If the authority decides to impose a financial penalty on the person, it must give the person a notice (a “final notice”) imposing that penalty.

7

The final notice must require the penalty to be paid within the period of 28 days beginning with the day after that on which the notice was given.

8

The final notice must set out—

(a) the amount of the financial penalty,

(b) the reasons for imposing the penalty,

(d) the period for payment of the penalty,

(e) information about rights of appeal, and

(f) the consequences of failure to comply with the notice.

Withdrawal or amendment of notice

9

(1) A local housing authority may at any time—

(a) withdraw a notice of intent or final notice, or

(b) reduce the amount specified in a notice of intent or final notice.

(2) The power in sub-paragraph (1) is to be exercised by giving notice in writing to the person to whom the notice was given.

Appeals

10

(1) A person to whom a final notice is given may appeal to the First-tier Tribunal against—

(a) the decision to impose the penalty, or

(b) the amount of the penalty.

(2) An appeal under this paragraph must be brought within the period of 28 days beginning with the day after that on which the final notice was sent.

(3) If a person appeals under this paragraph, the final notice is suspended until the appeal is finally determined or withdrawn.

(4) An appeal under this paragraph—

(a) is to be a re-hearing of the local housing authority's decision, but

(b) may be determined having regard to matters of which the authority was unaware.

(5) On an appeal under this paragraph the First-tier Tribunal may confirm, vary or cancel the final notice.

(6) The final notice may not be varied under sub-paragraph (5) so as to make it impose a financial penalty of more than the local housing authority could have imposed.

Recovery of financial penalty

11

(1) This paragraph applies if a person fails to pay the whole or any part of a financial penalty which, in accordance with this Schedule, the person is liable to pay.

(2) The local housing authority which imposed the financial penalty may recover the penalty or part on the order of the county court as if it were payable under an order of that court.

(3) In proceedings before the county court for the recovery of a financial penalty or part of a financial penalty, a certificate which is—

(a) signed by the chief finance officer of the local housing authority which imposed the penalty, and

(b) states that the amount due has not been received by a date specified in the certificate,

is conclusive evidence of that fact.

(4) A certificate to that effect and purporting to be so signed is to be treated as being so signed unless the contrary is proved.

(5) In this paragraph “chief finance officer” has the same meaning as in section 5 of the Local Government and Housing Act 1989.

SCHEDULE 2

1

The Housing Act 2004 is amended as follows.

2

In section 64 (grant or refusal of HMO licence), in subsection (3), after paragraph (a) insert—

(aa) that no banning order under section 16 of the Housing and Planning Act 2016 is in force against a person who— (i) owns an estate or interest in the house or part of it, and (ii) is a lessor or licensor of the house or part;

3

In section 66 (HMO licence: tests for fitness etc), after subsection (3) insert—

(3C) A person is not a fit and proper person for the purposes of section 64(3)(b) or (d) if a banning order under section 16 of the Housing and Planning Act 2016 is in force against the person.

4

In section 68 (licences: general requirements and duration), in subsection (3)(b), after “section 70” insert “ or 70A ”.

5

For the heading of section 70 substitute “ Power to revoke licences ”.

6

After section 70 insert—

(70A) (1) The local housing authority must revoke a licence if a banning order is made against the licence holder. (2) The local housing authority must revoke a licence if a banning order is made against a person who— (a) owns an estate or interest in the house or part of it, and (b) is a lessor or licensor of the house or part. (3) The notice served by the local housing authority under paragraph 24 of Schedule 5 must specify when the revocation takes effect. (4) The revocation must not take effect earlier than the end of the period of 7 days beginning with the day on which the notice is served. (5) In this section “banning order” means a banning order under section 16 of the Housing and Planning Act 2016.

7

In section 88 (grant or refusal of Part 3 licence), in subsection (3), after paragraph (a) insert—

(aa) that no banning order under section 16 of the Housing and Planning Act 2016 is in force against a person who— (i) owns an estate or interest in the house or part of it, and (ii) is a lessor or licensor of the house or part;

8

In section 89 (Part 3 licences: tests for fitness etc), after subsection (3) insert—

(3C) A person is not a fit and proper person for the purposes of section 88(3)(a) or (c) if a banning order under section 16 of the Housing and Planning Act 2016 is in force against the person.

9

In section 91 (licences: general requirements and duration), in subsection (3)(b), after “section 93” insert “ or 93A ”.

10

For the heading of section 93 substitute “ Power to revoke licences ”.

11

After section 93 insert—

(93A) (1) The local housing authority must revoke a licence if a banning order is made against the licence holder. (2) The local housing authority must revoke a licence if a banning order is made against a person who— (a) owns an estate or interest in the house or part of it, and (b) is a lessor or licensor of the house or part. (3) The notice served by the local housing authority under paragraph 24 of Schedule 5 must specify when the revocation takes effect. (4) The revocation must not take effect earlier than the end of the period of 7 days beginning with the day on which the notice is served. (5) In this section “banning order” means a banning order under section 16 of the Housing and Planning Act 2016.

12

(1) Schedule 5 (licences under Parts 2 and 3: procedure and appeals) is amended as follows.

(2) After paragraph 11 insert—

(11A) The requirements of paragraph 5 do not apply where the refusal to grant the licence was because of section 66(3C) or 89(3C) (person with banning order not a fit and proper person).

(3) After paragraph 25 insert—

(25A) The requirements of paragraph 22 do not apply if the revocation is required by section 70A or 93A (duty to revoke licence in banning order cases).

(4) After paragraph 32 insert—

(32A) (1) The right of appeal under paragraph 31(1)(a) does not apply where a licence is refused because of section 66(3C) or 89(3C) (person with banning order not a fit and proper person). (2) The right of appeal under paragraph 32(1)(a) does not apply in relation to the revocation of a licence required by section 70A or 93A (duty to revoke licence in banning order cases).

SCHEDULE 3

1

The Housing Act 2004 is amended as follows.

2

(1) Section 101 (interim and final management orders) is amended as follows.

(2) In subsection (1), at the end insert “ or property let in breach of a banning order under section 16 of the Housing and Planning Act 2016 ”.

(3) In subsection (3)(b), omit “the grant of a licence under Part 2 or 3 in respect of the house or”.

(4) In subsection (5), after “section 102(7)” insert “ or (7A) ”.

(5) After subsection (6) insert—

(6A) In this Chapter any reference to “the house”, in relation to an interim or final management order that relates to property let in breach of a banning order under section 16 of the Housing and Planning Act 2016, means the property let in breach of that order. (6B) In this Chapter any reference to property that is let in breach of a banning order under section 16 of the Housing and Planning Act 2016 includes property in respect of which a breach is (or would be) caused by a licence to occupy. (6C) When determining for the purposes of this Chapter whether property is let in breach of a banning order disregard any exception included in the banning order in reliance on section 17 of the Housing and Planning Act 2016.

3

(1) Section 102 (making of interim management orders) is amended as follows.

(2) In subsection (1)(b), for “or (7)” substitute “ , (7) or (7A) ”.

(3) After subsection (7) insert—

(7A) The authority may make an interim management order in respect of any property let in breach of a banning order under section 16 of the Housing and Planning Act 2016.

(4) In subsection (9), after “the making of an interim management order” insert “ under subsection (2), (3), (4) or (7) ”.

4

(1) Section 105 (operation of interim management orders) is amended as follows.

(2) After subsection (7) insert—

(7A) An order under section 102(7A) ceases to have effect (if it has not already ceased to have effect) when the ban on letting housing in England ceases to have effect. (7B) In subsection (7A) “the ban on letting housing in England” means the ban on letting contained in the banning order mentioned in section 102(7A).

(3) In subsection (8), for “and” substitute “ to ”.

(4) After subsection (9) insert—

(9A) If— (a) the IMO was made under section 102(7A), and (b) the date on which the FMO or another interim management order comes into force in relation to the house (or part of it) following the disposal of the appeal is later than the date on which the IMO would cease to have effect apart from this subsection, the IMO continues in force until that later date.

5

(1) Section 110 (financial arrangements while order is in force) is amended as follows.

(2) In subsection (4), at the beginning insert “ If the interim management order is not made under section 102(7A), ”.

(3) After subsection (5) insert—

(5A) The Secretary of State may by regulations make provision about how local authorities are to deal with any surplus in a case where the interim management order was made under section 102(7A). (5B) In subsection (5A) “surplus” means any amount of rent or other payments collected or recovered as mentioned in subsection (3) that remains after deductions to meet relevant expenditure and any amounts of compensation payable as mentioned in that subsection.

6

In section 112 (revocation of interim management orders), after subsection (2) insert—

(2A) An interim management order may not be revoked under this section if— (a) the immediate landlord is subject to a banning order under section 16 of the Housing and Planning Act 2016, (b) there is in force an agreement which, under section 108, has effect as a lease or licence granted by the authority, and (c) revoking the interim management order would cause the immediate landlord to breach the banning order because of the effect of section 130(2)(b).

7

(1) Section 113 (making of final management orders) is amended as follows.

(2) In subsection (1), for “section 102” substitute “ any provision of section 102 other than subsection (7A) of that section ”.

(3) After subsection (3) insert—

(3A) A local housing authority who have made an interim management order under section 102(7A) may make a final management order so as to replace the interim management order as from its expiry date if the authority consider that making the final management order is necessary for the purpose of protecting, on a long-term basis, the health, safety or welfare of persons occupying the house, or persons occupying or having an estate or interest in any premises in the vicinity.

(4) In subsection (4), after “under” insert “ subsection (2), (3), (5) or (6) of ”.

(5) After subsection (6) insert—

(6A) A local housing authority who have made a final management order in respect of a house under subsection (3A) or this subsection (“the existing order”) may make a new final management order so as to replace the existing order as from its expiry date if the authority consider that making the new order is necessary for the purpose of protecting, on a long-term basis, the health, safety or welfare of persons occupying the house, or persons occupying or having an estate or interest in any premises in the vicinity.

8

(1) Section 114 (operation of final management orders) is amended as follows.

(2) After subsection (4) insert—

(4A) An order under section 113(3A) or (6A) ceases to have effect (if it has not already ceased to have effect) when the relevant ban on letting housing in England ceases to have effect. (4B) In subsection (4A) “the relevant ban on letting housing in England” means the ban on letting contained in the banning order mentioned in section 102(7A).

(3) In subsection (5), for “and” substitute “ to ”.

(4) After subsection (6) insert—

(6A) If— (a) the existing order was made under section 113(3A) or (6A), and (b) the date on which the new order comes into force in relation to the house (or part of it) following the disposal of the appeal is later than the date on which the existing order would cease to have effect apart from this subsection, the existing order continues in force until that later date.

9

In section 119 (management schemes and accounts), after subsection (4) insert—

(4A) Subsection (4)(f) and (g) does not apply in a case where the final management order was made under section 113(3A) or (6A). (4B) The Secretary of State may by regulations make provision about how local authorities are to deal with any surplus in a case where the final management order was made under section 113(3A) or (6A). (4C) In subsection (4B) “surplus” means any amount of rent or other payments that the authority have collected or recovered, by virtue of this Chapter, that remains after deductions to meet relevant expenditure and any amounts of compensation payable as mentioned in subsection (2)(d).

10

In section 122 (revocation of final management orders), after subsection (2) insert—

(2A) A final management order may not be revoked under this section at a time when— (a) the immediate landlord is subject to a banning order under section 16 of the Housing and Planning Act 2016, (b) there is in force an agreement which, under section 117, has effect as a lease or licence granted by the authority, and (c) revoking the final management order would cause the immediate landlord to breach the banning order because of the effect of section 130(2)(b).

11

In section 129 (termination of management orders: financial arrangements), in subsection (2), after “order” insert “ that is not made under section 102(7A) ”.

12

(1) Schedule 6 (management orders: procedure and appeals) is amended as follows.

(2) In paragraph 7(4)(c), for “section 105(4) and (5) or 114(3) and (4)” substitute “ section 105(4), (5) or (7A) or 114(3), (4) or (4A) ”.

(3) In paragraph 26, after sub-paragraph (4) insert—

(4A) An interim management order may not be revoked under this paragraph if— (a) the immediate landlord is subject to a banning order under section 16 of the Housing and Planning Act 2016, (b) there is in force an agreement which, under section 108, has effect as a lease or licence granted by the authority, and (c) revoking the interim management order specified in the order would cause the immediate landlord to breach the banning order because of the effect of section 130(2)(b). (4B) In a case where sub-paragraph (4A) would otherwise prevent the tribunal from revoking the order with effect from a particular date, the tribunal may require the local housing authority to exercise any power it has to bring an agreement mentioned in that sub-paragraph to an end.

(4) In paragraph 30, after sub-paragraph (4) insert—

(5) In a case where subsection (2A) of section 112 or 122 would otherwise prevent the tribunal from revoking the order with effect from a particular date, the tribunal may require the local housing authority to exercise any power it has to bring an agreement mentioned in that subsection to an end.

SCHEDULE 4

Housing Act 1985 (c. 68)

1

(1) Section 171D of the Housing Act 1985 (consent to certain disposals of housing obtained subject to the preserved right to buy) is amended as follows.

(2) After subsection (2) insert—

(2ZA) Subsection (2) does not apply to a disposal of land by a private registered provider of social housing.

(3) In subsection (2A)—

(a) omit paragraph (a);

(b) in paragraph (b), for “any other” substitute “ a ”.

Housing Act 1988 (c. 50)

2

The Housing Act 1988 is amended as follows.

3

(1) Section 81 (consent to certain disposals of housing obtained from housing action trusts) is amended as follows.

(2) In subsection (1), for “section 79(2)(za) or (a)” substitute “ section 79(2)(a) ”.

(3) In subsection (3A)—

(a) omit paragraph (a);

(b) in paragraph (b), for “any other” substitute “ a ”.

(4) In subsection (7), omit “section 148 or 172 of the Housing and Regeneration Act 2008,”.

4

(1) Section 133 (consent to certain disposals of housing obtained from local authorities) is amended as follows.

(2) In subsection (1ZA)—

(a) omit paragraph (a);

(b) in paragraph (b), for “any other” substitute “ a ”.

(3) For subsection (1B) substitute—

(1B) This section does not apply if the original disposal was made to a private registered provider of social housing.

(4) In subsection (7), omit “section 148 or 172 of the Housing and Regeneration Act 2008,”.

Local Government and Housing Act 1989 (c. 42)

5

(1) Section 173 of the Local Government and Housing Act 1989 (consent to certain disposals of housing obtained from new town corporations) is amended as follows.

(2) After subsection (1) insert—

(1ZA) Subsection (1) does not apply to a disposal of land by a private registered provider of social housing.

(3) In subsection (1A)—

(a) omit paragraph (a);

(b) in paragraph (b), for “any other” substitute “ a ”.

(4) In subsection (7), omit “section 148 or 172 of the Housing and Regeneration Act 2008,”.

Leasehold Reform, Housing and Urban Development Act 1993 (c. 28)

6

In Schedule 10 to the Leasehold Reform, Housing and Urban Development Act 1993 (acquisition of Interests from Local Authorities etc), in paragraph 1(2)(b), for “sections 148 and 172” substitute “ section 148 ”.

Housing and Regeneration Act 2008

7

The Housing and Regeneration Act 2008 is amended as follows.

8

In section 60 (structural overview), in subsection (4), in the final column of the entry relating to Chapter 5 of Part 2 of the Act—

(a) for paragraph (b) (Regulator's consent) substitute—

(b) Notification of regulator

;

(b) omit paragraphs (c), (d) and (g).

9

After section 74 insert—

(74A) (1) A dwelling ceases to be social housing if a private registered provider of social housing owns the freehold or a leasehold interest and transfers it to a person who is not a registered provider of social housing. (2) Subsection (1) does not apply if and for so long as the private registered provider has a right to have the interest transferred back to it. (3) Subsection (1) does not apply where low cost home ownership accommodation is transferred to— (a) the “buyer” under equity percentage arrangements (see section 70(5)), or (b) the trustees under a shared ownership trust (see section 70(6)). (4) See section 73 for circumstances when low cost home ownership accommodation ceases to be social housing.

10

(1) Section 75 (leaving the social housing stock) is amended as follows.

(2) Omit subsection (1).

(3) In subsections (2) and (3), for “Subsections 1 and (1A) do” substitute “ Subsection (1A) does ”.

(4) In the heading, after “stock:” insert “ local authority ”.

11

In section 119 (de-registration: voluntary), in subsection (5), omit paragraph (a) and the “and” at the end of that paragraph.

12

In section 149 (moratorium: exempted disposals)—

(a) omit subsection (6);

(b) in subsection (7), for “6” substitute “ 5 ”;

13

In section 171 (power to dispose), in subsection (3), omit “(which include provisions requiring the regulator's consent for certain disposals)”.

14

For the italic heading above section 172 substitute— “ Notification of regulator ”.

15

Omit sections 172 to 175 (disposal consents).

16

For section 176 substitute—

(176) (1) If a private registered provider disposes of a dwelling that is social housing it must notify the regulator. (2) If a non-profit registered provider disposes of land other than a dwelling it must notify the regulator. (3) Subsection (1) continues to apply to any land of a private registered provider even if it has ceased to be a dwelling. (4) The regulator may give directions about— (a) the period within which notifications under subsection (1) or (2) must be given; (b) the content of those notifications. (5) The regulator may give directions dispensing with the notification requirement in subsection (1) or (2). (6) A direction under this section may be— (a) general, or (b) specific (whether as to particular registered providers, as to particular property, as to particular forms of disposal or in any other way). (7) A direction dispensing with a notification requirement— (a) may be expressed by reference to a policy for disposals submitted by a registered provider; (b) may include conditions. (8) The regulator must make arrangements for bringing a direction under this section to the attention of every registered provider to which it applies.

17

Omit section 179 and the italic heading before it (application of provisions of the Housing Act 1996 that have a connection with disposal consents.)

18

In section 186 (former registered providers), for “to 175” substitute “ and 176 (apart from section 176(2)) ”.

19

Omit section 187 (change of use, etc).

20

Omit section 190 (consent to disposals under other legislation).

21

In section 278A (power to nominate for consultation purposes), for paragraph (b) substitute—

(b) section 176;

22

The Housing and Regeneration Act 2008 is amended as follows.

23

In section 115 (profit-making and non-profit organisations), in subsection (9), after “non-profit organisation” insert “ or vice versa ”.

24

For section 160 substitute—

(160) (1) This section applies to a non-profit registered provider which is a registered company. (2) The registered provider must notify the regulator of any voluntary arrangement under Part 1 of the Insolvency Act 1986. (3) The registered provider must notify the regulator of any order under section 899 of the Companies Act 2006 (court sanction for compromise or arrangement). (4) An order under section 899 of Companies Act 2006 does not take effect until the registered provider has confirmed to the registrar of companies that the regulator has been notified. (5) The registered provider must notify the regulator of any order under section 900 of the Companies Act 2006 (powers of court to facilitate reconstruction or amalgamation). (6) The requirement in section 900(6) of the Companies Act 2006 (sending copy of order to registrar) is satisfied only if the copy is accompanied by confirmation that the regulator has been notified.

25

For section 161 substitute—

(161) (1) This section applies to a non-profit registered provider which is a registered company. (2) The registered provider must notify the regulator of any resolution under section 115 of the Co-operative and Community Benefit Societies Act 2014 for converting the registered provider into a registered society. (3) The registrar of companies may register a resolution under that section only if the registered provider has confirmed to the registrar that the regulator has been notified. (4) The regulator must decide whether the new body is eligible for registration under section 112. (5) If the new body is eligible for registration, the regulator must register it and designate it as a non-profit organisation. (6) If the new body is not eligible for registration, the regulator must notify it of that fact. (7) Pending registration, or notification that it is not eligible for registration, the new body is to be treated as if it were registered and designated as a non-profit organisation.

26

For section 163 substitute—

(163) (1) This section applies to a non-profit registered provider which is a registered society. (2) The registered provider must notify the regulator of any resolution passed by the society for the purposes of the restructuring provisions listed in subsection (4). (3) The Financial Conduct Authority may register the resolution only if the registered provider has confirmed to the Financial Conduct Authority that the regulator has been notified. (4) The following provisions of the Co-operative and Community Benefit Societies Act 2014 are the restructuring provisions— (a) section 109 (amalgamation of societies); (b) section 110 (transfer of engagements between societies); (c) section 112 (conversion of society into a company etc). (5) The regulator must decide whether the body created or to whom engagements are transferred (“the new body”) is eligible for registration under section 112. (6) If the new body is eligible for registration, the regulator must register it and designate it as a non-profit organisation. (7) If the new body is not eligible for registration, the regulator must notify it of that fact. (8) Pending registration, or notification that it is not eligible for registration, the new body is to be treated as if it were registered and designated as a non-profit organisation.

27

In section 165 (registered society: dissolution), for subsection (2) substitute—

(2) The registered provider must notify the regulator. (3) The Financial Conduct Authority may register the instrument under section 121 of that Act, or cause notice of the dissolution to be advertised under section 122 of that Act, only if the registered provider has confirmed to the Financial Conduct Authority that the regulator has been notified.

28

Omit section 166 (winding up petition by regulator).

29

After section 169 insert—

(169A) A non-profit registered provider that is a registered society must notify the regulator of any change to the society's rules. (169B) The trustees of a registered charity that is a non-profit registered provider must notify the regulator of any amendment to the charity's objects. (169C) A non-profit registered provider that is a registered company must notify the regulator of— (a) any amendment of the company's articles of association, (b) any change to its name or registered office.” (169D) (1) The regulator may give directions about— (a) the period within which notifications under sections 160 to 165 or 169A to 169C must be given by private registered providers; (b) the content of those notifications. (2) The regulator may give directions dispensing with notification requirements imposed by sections 160 to 165 or 169A to 169C. (3) A direction under this section may be— (a) general, or (b) specific (whether as to particular registered providers, particular kinds of notification requirement or in any other way). (4) A direction dispensing with a notification requirement may include conditions. (5) The regulator must make arrangements for bringing a direction under this section to the attention of every registered provider to which it applies.

30

In section 192 (overview), omit paragraph (c).

31

Omit sections 211 to 214 and the italic heading before section 211 (constitutional changes to non-profit providers).

PART 3 — Abolition of disposal proceeds fund

32

The Housing and Regeneration Act 2008 is amended as follows.

33

Omit—

(a) sections 177 and 178;

(b) the italic heading before section 177.

34

(1) Section 181 (meaning of “publicly funded” for purposes of provisions about right to acquire) is amended as follows.

(2) After subsection (2) insert—

(2A) Condition 2 is that— (a) the dwelling was provided wholly or partly by a person using an amount for purposes for which the amount was required to be used by an HCA direction under section 32(4), and (b) before giving the direction the HCA notified the person that any dwelling so provided would be regarded as publicly funded.

(3) In subsection (3), for “2” substitute “ 3 ”.

(4) After subsection (3) insert—

(3A) In relation to a private registered provider, the reference in subsection (3) to its disposal proceeds fund is to its disposal proceeds fund before the abolition of that fund by Part 3 of Schedule 4 to the Housing and Planning Act 2016.

(5) In subsections (4) and (5), for “3” substitute “ 4 ”.

(6) In subsection (6), for “4” substitute “ 5 ”.

35

Regulations under section 213 in connection with the coming into force of paragraph 33 may, in particular, include provision to preserve the effect of sections 177 and 178 of the Housing and Regeneration Act 2008 for a period in relation to sums in a private registered provider's disposal proceeds fund immediately before that paragraph comes into force (including later interest added under section 177(7) of that Act).

PART 4 — Enforcement Powers

36

The Housing and Regeneration Act 2008 is amended as follows.

37

In section 269 (appointment of new officers of non-profit registered providers) in subsection (1)(c), for “proper management of the body's affairs” substitute “ to ensure that the registered provider's affairs are managed in accordance with legal requirements (imposed by or under an Act or otherwise) ”.

38

In section 275 (interpretation), for the definition of “mismanagement” substitute—

“mismanagement”, in relation to the affairs of a registered provider, means managed in breach of any legal requirements (imposed by or under an Act or otherwise);

SCHEDULE 5

PART 1 — Modifications of Schedule B1 to the Insolvency Act 1986

Introductory

1

(1) The applicable provisions of Schedule B1 to the Insolvency Act 1986 are to have effect in relation to a housing administration order that applies to a company as they have effect in relation to an administration order under that Schedule applies to a company, but with the modifications set out in this Part of this Schedule.

(2) The applicable provisions of Schedule B1 to the Insolvency Act 1986 are—

(a) paragraphs 1, 40 to 49, 54, 59 to 68, 70 to 79, 83 to 91, 98 to 107, 109 to 111 and 112 to 116, and

(b) paragraph 50 (until the repeal of that paragraph by Schedule 10 to the Small Business, Enterprise and Employment Act 2015 comes into force).

General modifications of the applicable provisions

2

Those paragraphs are to have effect as if—

(a) for “administration application”, in each place, there were substituted “ housing administration application ”,

(b) for “administration order”, in each place, there were substituted “ housing administration order ”,

(d) for “enters administration”, in each place, there were substituted “ enters housing administration ”,

(e) for “in administration”, in each place, there were substituted “ in housing administration ”, and

(f) for “purpose of administration”, in each place (other than in paragraph 111(1)), there were substituted “ objectives of the housing administration ”.

Specific modifications

3

Paragraph 1 (administration) is to have effect as if—

(a) for sub-paragraph (1) there were substituted—

(1) In this Schedule “housing administrator”, in relation to a company, means a person appointed by the court for the purposes of a housing administration order to manage its affairs, business and property.

, and

(b) in sub-paragraph (2), for “Act” there were substituted “ Schedule ”.

4

Paragraph 40 (dismissal of pending winding-up petition) is to have effect as if sub-paragraphs (1)(b), (2) and (3) were omitted.

5

Paragraph 42 (moratorium on insolvency proceedings) is to have effect as if sub-paragraphs (4) and (5) were omitted.

6

Paragraph 44 (interim moratorium) is to have effect as if sub-paragraphs (2) to (4), (6) and (7)(a) to (c) were omitted.

7

Paragraph 46(6) (date for notifying administrator's appointment) is to have effect as if for paragraphs (a) to (c) there were substituted “ the date on which the housing administration order comes into force ”.

8

Paragraph 49 (administrator's proposals) is to have effect as if—

(a) in sub-paragraph (2)(b) for “objective mentioned in paragraph 3(1)(a) or (b) cannot be achieved” there were substituted “ objectives of the housing administration should be achieved by means other than just a rescue of the company as a going concern ”, and

(b) in sub-paragraph (4), after paragraph (a) there were inserted—

(aa) to the Secretary of State and the Regulator of Social Housing,

9

Paragraph 54 is to have effect as if the following were substituted for it—

(54) (1) The housing administrator of a company may on one or more occasions revise the proposals included in the statement made under paragraph 49 in relation to the company. (2) If the housing administrator thinks that a revision is substantial, the housing administrator must send a copy of the revised proposals— (a) to the registrar of companies, (b) to the Secretary of State and the Regulator of Social Housing, (c) to every creditor of the company, other than an opted-out creditor, of whose claim and address the housing administrator is aware, and (d) to every member of the company of whose address the housing administrator is aware. (3) A copy sent in accordance with sub-paragraph (2) must be sent within the prescribed period. (4) The housing administrator is to be taken to have complied with sub-paragraph (2)(d) if the housing administrator publishes, in the prescribed manner, a notice undertaking to provide a copy of the revised proposals free of charge to any member of the company who applies in writing to a specified address. (5) A housing administrator who fails without reasonable excuse to comply with this paragraph commits an offence.

10

Paragraph 60 (powers of an administrator) has effect as if after that sub-paragraph (2) there were inserted—

(3) The housing administrator of a company has the power to act on behalf of the company for the purposes of provision contained in any legislation which confers a power on the company or imposes a duty on it. (4) In sub-paragraph (2) “legislation” has the same meaning as in the Chapter 5 of Part 4 of the Housing and Planning Act 2016.

11

Paragraph 68 (management duties of an administrator) is to have effect as if—

(a) in sub-paragraph (1), for paragraphs (a) to (c) there were substituted

the proposals as— (a) set out in the statement made under paragraph 49 in relation to the company, and (b) from time to time revised under paragraph 54, for achieving the objectives of the housing administration.

, and

(b) in sub-paragraph (3), for paragraphs (a) to (d) there were substituted “ the directions are consistent with the achievement of the objectives of the housing administration ”.

12

Paragraph 73(3) (protection for secured or preferential creditor) is to have effect as if for “or modified” there were substituted “ under paragraph 54 ”.

13

Paragraph 74 (challenge to administrator's conduct) is to have effect as if—

(a) for sub-paragraph (2) there were substituted—

(2) If a company is in housing administration, a person mentioned in sub-paragraph (2A) may apply to the court claiming that the housing administrator is acting in a manner preventing the achievement of the objectives of the housing administration as quickly and efficiently as is reasonably practicable. (2A) The persons who may apply to the court are— (a) the Secretary of State; (b) with the consent of the Secretary of State, the Regulator of Social Housing; (c) a creditor or member of the company.

(b) in sub-paragraph (6)—

(i) at the end of paragraph (b) there were inserted “or”, and

(ii) paragraph (c) (and the “or” before it) were omitted, and

(7) In the case of a claim made otherwise than by the Secretary of State or the Regulator of Social Housing, the court may grant a remedy or relief or make an order under this paragraph only if it has given the Secretary of State or the Regulator a reasonable opportunity of making representations about the claim and the proposed remedy, relief or order. (8) The court may grant a remedy or relief or make an order on an application under this paragraph only if it is satisfied, in relation to the matters that are the subject of the application, that the housing administrator— (a) is acting, (b) has acted, or (c) is proposing to act, in a way that is inconsistent with the achievement of the objectives of the housing administration as quickly and as efficiently as is reasonably practicable. (9) Before the making of an order of the kind mentioned in sub-paragraph (4)(d)— (a) the court must notify the housing administrator of the proposed order and of a period during which the housing administrator is to have the opportunity of taking steps falling within sub-paragraphs (10) to (12), and (b) the period notified must have expired without the taking of such of those steps as the court thinks should have been taken, and that period must be a reasonable period. (10) In the case of a claim under sub-paragraph (1)(a), the steps referred to in sub-paragraph (9) are— (a) ceasing to act in a manner that unfairly harms the interests to which the claim relates, (b) remedying any harm unfairly caused to those interests, and (c) steps for ensuring that there is no repetition of conduct unfairly causing harm to those interests. (11) In the case of a claim under sub-paragraph (1)(b), the steps referred to in sub-paragraph (9) are steps for ensuring that the interests to which the claim relates are not unfairly harmed. (12) In the case of a claim under sub-paragraph (2), the steps referred to in sub-paragraph (9) are— (a) ceasing to act in a manner preventing the achievement of the objectives of the housing administration as quickly and as efficiently as is reasonably practicable, (b) remedying the consequences of the housing administrator having acted in such a manner, and (c) steps for ensuring that there is no repetition of conduct preventing the achievement of the objectives of the housing administration as quickly and as efficiently as is reasonably practicable.

14

Paragraph 75(2) (misfeasance) is to have effect as if after paragraph (b) there were inserted—

(ba) a person appointed as an administrator of the company under the provisions of this Act, as they have effect in relation to administrators other than housing administrators,

15

Paragraph 78 (consent to extension of administrator's term of office) is to have effect as if sub-paragraph (2) were omitted.

16

Paragraph 79 (end of administration) is to have effect as if—

(a) for sub-paragraphs (1) and (2) there were substituted—

(1) On an application made by a person mentioned in sub-paragraph (2), the court may provide for the appointment of a housing administrator of a company to cease to have effect from a specified time. (2) An application may be made to the court under this paragraph— (a) by the Secretary of State, (b) with the consent of the Secretary of State, by the Regulator of Social Housing, or (c) with the consent of the Secretary of State, by the housing administrator.

, and

(b) sub-paragraph (3) were omitted.

17

Paragraph 83(3) (notice to registrar when moving to voluntary liquidation) is to have effect as if after “may” there were inserted “ , with the consent of the Secretary of State or of the Regulator of Social Housing, ”.

18

Paragraph 84 (notice to registrar when moving to dissolution) is to have effect as if—

(a) in sub-paragraph (1), for “to the registrar of companies” there were substituted—

(a) to the Secretary of State and the Regulator of Social Housing, and (b) if directed to do so by either the Secretary of State or the Regulator of Social Housing, to the registrar of companies.

(b) sub-paragraph (2) were omitted, and

19

Paragraph 87(2) (resignation of administrator) is to have effect as if for paragraphs (a) to (d) there were substituted “ by notice in writing to the court ”.

20

Paragraph 89(2) (administrator ceasing to be qualified) is to have effect as if for paragraphs (a) to (d) there were substituted “ to the court ”.

21

Paragraph 90 (filling vacancy in office of administrator) is to have effect as if for “Paragraphs 91 to 95 apply” there were substituted “ Paragraph 91 applies ”.

22

Paragraph 91 (vacancies in court appointments) is to have effect as if—

(a) for sub-paragraph (1) there were substituted—

(1) The court may replace the housing administrator on an application made— (a) by the Secretary of State, (b) with the consent of the Secretary of State, by the Regulator of Social Housing, or (c) where more than one person was appointed to act jointly as the housing administrator, by any of those persons who remains in office.

(b) sub-paragraph (2) were omitted.

23

Paragraph 98 (discharge from liability on vacation of office) is to have effect as if sub-paragraphs (2)(b) and (ba), (3) and (3A) were omitted.

24

Paragraph 99 (charges and liabilities upon vacation of office by administrator) is to have effect as if—

(a) in sub-paragraph (4), for the words from the beginning to “cessation”, in the first place, there were substituted “ A sum falling within sub-paragraph (4A) ”,

(b) after that sub-paragraph there were inserted—

(4A) A sum falls within this sub-paragraph if it is— (a) a sum payable in respect of a debt or other liability arising out of a contract that was entered into before cessation by the former housing administrator or a predecessor, (b) a sum that must be repaid by the company in respect of a grant that was made under section 109 of the Housing and Planning Act 2016 before cessation, (c) a sum that must be repaid by the company in respect of a loan made under that section before cessation or that must be paid by the company in respect of interest payable on such a loan, (d) a sum payable by the company under section 111 of that Act in respect of an agreement to indemnify made before cessation, or (e) a sum payable by the company under section 113 of that Act in respect of a guarantee given before cessation.”, and

25

Paragraph 100 (joint and concurrent administrators) is to have effect as if sub-paragraph (2) were omitted.

26

Paragraph 101(3) (joint administrators) is to have effect as if after “87 to” there were inserted “ 91, 98 and ”.

27

Paragraph 103 (appointment of additional administrators) is to have effect as if—

(a) in sub-paragraph (2) the words from the beginning to “order” were omitted and for paragraph (a) there were substituted—

(a) the Secretary of State, (aa) the Regulator of Social Housing, or

(b) after that sub-paragraph there were inserted—

(2A) The consent of the Secretary of State is required for an application by the Regulator of Social Housing for the purposes of sub-paragraph (2).

, and

28

Paragraph 106(2) (penalties) is to have effect as if paragraphs (a), (b), (f), (g), (i) and (l) to (n) were omitted.

29

Paragraph 109 (references to extended periods) is to have effect as if “or 108” were omitted.

30

Paragraph 111 (interpretation) is to have effect as if—

(a) in sub-paragraph (1), the definitions of “correspondence”, “holder of a qualifying floating charge”, “the purpose of administration” and “unable to pay its debts” were omitted,

(b) in that sub-paragraph, at the appropriate places there were inserted—

“company” and “court” have the same meaning as in Chapter 5 of Part 4 of the Housing and Planning Act 2016,

“housing administration application” means an application to the court for a housing administration order under Chapter 5 of Part 4 of the Housing and Planning Act 2016;

“housing administration order” has the same meaning as in Chapter 5 of Part 4 of the Housing and Planning Act 2016;

“objectives”, in relation to a housing administration, is to be read in accordance with section 96(4) of the Housing and Planning Act 2016;

, and

“prescribed” means prescribed by housing administration rules within the meaning of Chapter 5 of Part 4 of the Housing and Planning Act 2016.

(d) after sub-paragraph (3) there were inserted—

(4) For the purposes of this Schedule a reference to a housing administration order includes a reference to an appointment under paragraph 91 or 103.

PART 2 — Further modifications of Schedule B1 to Insolvency Act 1986: foreign companies

Introductory

31

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32

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

Modifications

33

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

34

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

35

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

36

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

37

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

38

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

PART 3 — Other modifications

General modifications

39

(1) References within sub-paragraph (2) which are contained—

(a) in the Insolvency Act 1986 (other than Schedule B1 to that Act), or

(b) in other legislation passed or made before this Act,

include references to whatever corresponds to them for the purposes of this paragraph.

(2) The references are those (however expressed) which are or include references to—

(a) an administrator appointed by an administration order,

(b) an administration order,

(d) a company in administration,

(e) entering into administration, and

(f) Schedule B1 to the Insolvency Act 1986 or a provision of that Schedule.

(3) For the purposes of this paragraph—

(a) a housing administrator of a company corresponds to an administrator appointed by an administration order,

(b) a housing administration order in relation to a company corresponds to an administration order,

(c) an application for a housing administration order in relation to a company corresponds to an application for an administration order,

(d) a company in housing administration corresponds to a company in administration,

(e) entering into housing administration in relation to a company corresponds to entering into administration, and

(f) what corresponds to Schedule B1 to the Insolvency Act 1986 or a provision of that Schedule is that Schedule or that provision as applied by Part 1 of this Schedule.

40

(1) Paragraph 39, in its application to section 1(3) of the Insolvency Act 1986, does not entitle the housing administrator of an unregistered company to make a proposal under Part 1 of the Insolvency Act 1986 (company voluntary arrangements).

(2) Paragraph 39 does not confer any right under section 7(4) of the Insolvency Act 1986 (implementation of voluntary arrangements) for a supervisor of voluntary arrangements to apply for a housing administration order in relation to a company that is a private registered provider.

(3) Paragraph 39 does not apply to section 359 of the Financial Services and Markets Act 2000 (administration order).

Modifications of the Insolvency Act 1986

41

The following provisions of the Insolvency Act 1986 are to have effect in the case of any housing administration with the following modifications.

42

Section 5 (effect of approval of voluntary arrangements) is to have effect as if after subsection (4) there were inserted—

(4A) Where the company is in housing administration, the court must not make an order or give a direction under subsection (3) unless— (a) the court has given the Secretary of State or the Regulator of Social Housing a reasonable opportunity of making representations to it about the proposed order or direction, and (b) the order or direction is consistent with the objectives of the housing administration. (4B) In subsection (4A) “in housing administration” and “objectives of the housing administration” are to be read in accordance with Schedule B1 to this Act, as applied by Part 1 of Schedule 5 to the Housing and Planning Act 2016.

43

Section 6 (challenge of decisions in relation to voluntary arrangements) is to have effect as if—

(a) in subsection (2), for “this section” there were substituted “ subsection (1) ”,

(b) after that subsection there were inserted—

(2AA) Subject to this section, where a voluntary arrangement in relation to a company in housing administration is approved at the meetings summoned under section 3, an application to the court may be made— (a) by the Secretary of State, or (b) with the consent of the Secretary of State, by the Regulator of Social Housing, on the ground that the voluntary arrangement is not consistent with the achievement of the objectives of the housing administration.

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