32 provisions
Title and introductory text
Leasehold and Freehold Reform Act 2024
2024 Chapter 22
An Act to prohibit the grant or assignment of certain new long residential leases of houses, to amend the rights of tenants under long residential leases to acquire the freeholds of their houses, to extend the leases of their houses or flats, and to collectively enfranchise or manage the buildings containing their flats, to give such tenants the right to reduce the rent payable under their leases to a peppercorn, to regulate the relationship between residential landlords and tenants, to regulate residential estate management, to regulate rentcharges and to amend the Building Safety Act 2022 in connection with the remediation of building defects and the insolvency of persons who have repairing obligations relating to certain kinds of buildings.
[24th May 2024]
Be it enacted by the King’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Propose a change27 Removal of qualifying period before enfranchisement and extension claims
(1) In section 1 of the Leasehold Reform Act 1967 (“the LRA 1967”) (tenants entitled to enfranchisement or extension)—
(a) in subsection (1), omit paragraph (b) and the “and” preceding it;
(b) in subsection (1ZC), in the words before paragraph (a), for “(1)(a) and (b)” substitute “(1)”.
(2) In section 39 of the Leasehold Reform, Housing and Urban Development Act 1993 (“the LRHUDA 1993”) (right of qualifying tenant of flat to acquire new lease)—
(a) in subsection (1)—
(i) after “conferring on a” insert “qualifying”;
(ii) omit “, in the circumstances mentioned in subsection (2),”;
(b) omit subsection (2) (requirement to have been a qualifying tenant for last two years);
(c) omit subsection (3A) (right of personal representatives).
(3) Omit section 42(4A) of the LRHUDA 1993 (notices given by personal representatives).
Propose a change49 Change of non-residential limit on right to manage claims
In Schedule 6 to the Commonhold and Leasehold Reform Act 2002 (“the CLRA 2002”), in paragraph 1(1) (non-residential limit on right to manage claims), for “25 per cent.” substitute “50%”.
Propose a change50 Costs of right to manage claims
(1) The CLRA 2002 is amended as follows.
(2) In section 82 (right to obtain information before right to manage claim)—
(a) in subsection (2)(b), omit “on payment of a reasonable fee”;
(b) after subsection (3) insert—
(4) The RTM company is liable for the reasonable costs incurred by a person in complying (in accordance with this section) with a notice under this section.
(5) Any question arising in relation to the amount of the costs payable by the RTM company is, in default of agreement, to be determined by the appropriate tribunal.
(3) After section 87 insert—
Costs: general
87A (1) An RTM company and a member of an RTM company are not liable for any costs incurred by any other person in consequence of a claim notice given by the company in relation to any premises, except as set out in this section.
(2) A lease, transfer, contract or other arrangement is accordingly of no effect to the extent it would provide to the contrary.
(3) An RTM company is liable to a member of the company in respect of costs incurred by the member to the extent agreed between the company and the member.
(4) A member of an RTM company—
(a) is liable to the company in respect of costs incurred by the company to the extent agreed between the member and the company;
(b) is liable to another member of the company in respect of costs incurred by that other member to the extent agreed between the two members.
(5) An RTM company or a member of an RTM company are liable for costs incurred by another person in connection with proceedings before a court or tribunal if—
(a) the court or tribunal has power under another enactment to order that they pay those costs, and
(b) the court or tribunal makes such an order.
(6) An RTM company and a member of an RTM company are liable for costs incurred by another person in the circumstances referred to in section 87B.
(7) For the purposes of this section, “member”, in relation to an RTM company, means each person who is or has been a member of the RTM company.
(8) See also sections 20CA and 20J of the Landlord and Tenant Act 1985, which prevent costs in connection with a claim under this Chapter being recovered by way of a variable service charge (within the meaning of section 18 of that Act).
Power of tribunal to order costs where claim ceases
87B (1) The appropriate tribunal may, on the application of a person (“the applicant”) that incurs costs in consequence of a claim notice given by an RTM company, order that the RTM company is liable to the applicant for the costs if all of the conditions in subsection (2) are met.
(2) The conditions are—
(a) the claim notice—
(i) is at any time withdrawn or deemed to be withdrawn by virtue of any provision of this Chapter, or
(ii) at any time ceases to have effect by reason of any other provision of this Chapter;
(b) the RTM company acts unreasonably in—
(i) giving the claim notice, or
(ii) not withdrawing it, causing it to be deemed withdrawn, or causing it to cease to have effect sooner;
(c) the applicant is—
(i) a landlord under a lease of the whole or any part of the premises,
(ii) party to such a lease otherwise than as landlord or tenant, or
(iii) a manager appointed under Part 2 of the 1987 Act to act in relation to the premises, or any premises containing or contained in the premises;
(d) the costs are incurred before the claim notice is withdrawn, is deemed withdrawn, or ceases to have effect;
(e) the costs are incurred other than in connection with proceedings before a court or tribunal;
(f) the costs are reasonably incurred.
(3) Where the appropriate tribunal orders that an RTM company is liable under subsection (1), each person who is or has been a member of the RTM company is also liable (jointly and severally with the RTM company and each other such person).
(4) But a person is not liable if—
(a) the lease by virtue of which they were a qualifying tenant has been assigned to another person, and
(b) that other person has become a member of the RTM company.
(5) The reference in subsection (4) to an assignment includes—
(a) an assent by personal representatives, and
(b) assignment by operation of law where the assignment is to a trustee in bankruptcy or to a mortgagee under section 89(2) of the Law of Property Act 1925 (foreclosure of leasehold mortgage).
(4) Omit sections 88 and 89 (costs of right to manage claims).
Propose a change51 Compliance with obligations arising under Chapter 1 of Part 2 of the CLRA 2002
(1) Section 107 of the CLRA 2002 (enforcement of obligations) is amended as follows.
(2) In subsection (1), for “county court” substitute “appropriate tribunal”.
(3) After subsection (2) insert—
(3) Where an order other than an order to pay a sum of money has been made under subsection (1) by the appropriate tribunal—
(a) a person may apply to the county court for enforcement of the order;
(b) the appropriate tribunal may by order transfer proceedings to the county court for enforcement of the order;
and the order is to be enforceable by the court in the same way as an order of the court.
(4) See section 176C for general provision about the enforcement of tribunal decisions and section 27 of the Tribunals, Courts and Enforcement Act 2007 for provision about the enforcement of an order to pay a sum of money.
(4) For the heading substitute “Power of tribunal to order compliance”.
Propose a change52 No first-instance applications to the High Court in tribunal matters
(1) Where jurisdiction in respect of a matter is conferred on the appropriate tribunal under Chapter 1 of Part 2 of the CLRA 2002, a person may not apply to the High Court in respect of that matter.
(2) Subsection (1) has no effect in relation to any proceedings that may be brought in the High Court for the purpose of challenging a decision, declaration, direction or order of the appropriate tribunal.
(3) In subsection (1) “appropriate tribunal” has the same meaning as in the Chapter mentioned in that subsection.
Propose a change54 Notice of future service charge demands
In section 20B of the LTA 1985 (time limit on making service charge demands), in subsection (2), for the words from “notified in writing” to the end substitute “given a future demand notice in respect of those costs.
(3) A “future demand notice” is a notice in writing that—
(a) relevant costs have been incurred, and
(b) the tenant will subsequently be required under the terms of the lease to contribute to the costs by the payment of a variable service charge.
(4) A future demand notice must—
(a) be in the specified form,
(b) contain the specified information, and
(c) be given to the tenant in a specified manner.
“Specified” means specified in regulations made by the appropriate authority.
(5) The regulations may, among other things, specify as information to be contained in a future demand notice—
(a) an amount estimated as the amount of the costs incurred (an “estimated costs amount”);
(b) an amount which the tenant is expected to be required to contribute to the costs (an “expected contribution”);
(c) a date on or before which it is expected that payment of the variable service charge will be demanded (an “expected demand date”).
(6) Regulations that include provision by virtue of subsection (5) may also provide for a relevant rule to apply in a case where—
(a) the tenant has been given a future demand notice in respect of relevant costs, and
(b) a demand for payment of a variable service charge as a contribution to those costs is served on the tenant more than 18 months after the costs were incurred.
(7) The relevant rules are—
(a) in a case where a future demand notice is required to contain an estimated costs amount, that the tenant is liable to pay the service charge only to the extent it reflects relevant costs that do not exceed the estimated costs amount;
(b) in a case where a future demand notice is required to contain an expected contribution, that the tenant is liable to pay the service charge only to the extent it does not exceed the expected contribution;
(c) in a case where a future demand notice is required to contain an expected demand date, that, if the demand is served after the expected demand date, the tenant is not liable to pay the service charge to the extent it reflects any of the costs.
(8) Regulations that provide for the relevant rule in subsection (7)(c) to apply may also provide that, in a case set out in the regulations, the rule is to apply as if, for the expected demand date, there were substituted a later date determined in accordance with the regulations.
(9) Regulations under this section—
(a) are to be made by statutory instrument;
(b) may make provision generally or only in relation to specific cases;
(c) may make different provision for different purposes;
(d) may include supplementary, incidental, transitional or saving provision.
(10) A statutory instrument containing regulations under this section is subject to the negative procedure.
Propose a change55 Service charge demands
(1) The LTA 1985 is amended in accordance with subsections (2) and (3).
(2) Omit the following sections—
(a) section 21 (request for summary of relevant costs);
(b) section 21A (withholding of service charges);
(c) section 21B (notice to accompany demands for service charges).
(3) Before section 22 insert—
Service charge demands
21C (1) A landlord may not demand the payment of a service charge unless the demand—
(a) is in the specified form,
(b) contains the specified information, and
(c) is provided to the tenant in a specified manner.
“Specified” means specified in regulations made by the appropriate authority.
(2) Accordingly, where a demand for payment of a service charge does not comply with subsection (1), a provision of the lease relating to non-payment or late payment of service charges does not have effect in relation to the service charge.
(3) The appropriate authority may by regulations provide for exceptions from subsection (1) by reference to—
(a) descriptions of landlord;
(b) descriptions of service charge;
(c) any other matter.
(4) Regulations under this section—
(a) are to be made by statutory instrument;
(b) may make provision generally or only in relation to specific cases;
(c) may make different provision for different purposes;
(d) may include supplementary, incidental, transitional or saving provision.
(5) A statutory instrument containing regulations under this section is subject to the negative procedure.
(4) In the LTA 1987—
(a) in section 47 (landlord’s name and address to be contained in demands for rent etc), after subsection (3) insert—
(3A) Subsections (2) and (3) do not apply in relation to a written demand for payment of a service charge if section 21C of the Landlord and Tenant Act 1985 requires the demand to include information which subsection (1) also requires the demand to include.
;
(b) in section 47A (building safety information to be contained in demands for rent etc), after subsection (3) insert—
(3A) Subsections (2) and (3) do not apply in relation to a written demand for payment of a service charge if section 21C of the Landlord and Tenant Act 1985 requires the demand to include information which subsection (1) also requires the demand to include.
Propose a change56 Accounts and annual reports
(1) The LTA 1985 is amended as follows.
(2) After section 21C (as inserted by section 55) insert—
Service charge accounts
21D (1) This section applies in relation to a lease of a dwelling if—
(a) a variable service charge is or may be payable under the lease, and
(b) any of the relevant costs which are or may be taken into account in determining the amount of that variable service charge are or may be taken into account in determining the amount of variable service charges payable by the tenants of three or more other dwellings (“connected tenants”).
(2) The following terms are implied into the lease—
(a) that, on or before the account date for each accounting period, the landlord must provide the tenant with a written statement of account in a specified form and manner setting out—
(i) the variable service charges arising in the period which are payable by the tenant and each connected tenant,
(ii) the relevant costs relating to those service charges, and
(iii) any other specified matters;
(b) that, on or before the account date for an accounting period in respect of which a statement of account is provided, the landlord must provide the tenant with a written report about the statement prepared by a qualified accountant, which—
(i) is prepared in accordance with specified standards for the review of financial information, and
(ii) includes a statement by the accountant, in a specified form and manner, that the report is a faithful representation of what it purports to represent;
(c) that the landlord must provide adequate accounts, receipts or other documents or explanations to the accountant to enable them to provide the report;
(d) that, if the landlord incurs costs in obtaining the report, the tenant must pay the landlord a fair and reasonable contribution to those costs.
“Specified” means specified in regulations made by the appropriate authority.
(3) An “accounting period” is—
(a) a period of 12 months specified in the lease as an accounting period, or
(b) if no such period is specified in the lease, a period of 12 months beginning with 1 April.
(4) The “account date” for an accounting period is the final day of the period of six months beginning with the day after the final day of the accounting period.
(5) An amount payable under the term implied by subsection (2)(d)—
(a) is a variable service charge for the purposes of section 18, and the provisions of this Act relating to service charges apply accordingly;
(b) is payable irrespective of whether a lease, contract or other arrangement provides for it to be payable as a service charge.
(6) The appropriate authority may by regulations provide for circumstances in which a term in subsection (2)—
(a) is not to be implied into a lease, or
(b) is to be implied into a lease in a modified form.
(7) Regulations under this section—
(a) are to be made by statutory instrument;
(b) may make provision generally or only in relation to specific cases;
(c) may make different provision for different purposes;
(d) may include supplementary, incidental, transitional or saving provision.
(8) A statutory instrument containing regulations under this section is subject to the negative procedure.
Annual reports
21E (1) A landlord must, on or before the report date for an accounting period, provide the tenant with a report in respect of service charges arising in that period.
(2) The appropriate authority may by regulations make provision as to—
(a) the information to be contained in the report in respect of those service charges;
(b) the form of the report;
(c) the manner in which the report is to be provided.
(3) The appropriate authority may by regulations also make provision requiring information to be contained in the report in respect of other matters which the appropriate authority considers are likely to be of interest to a tenant, whether or not they directly relate to service charges or to service charges arising in the period.
(4) An “accounting period” is—
(a) a period of 12 months specified in the lease as an accounting period, or
(b) if no such period is specified in the lease, a period of 12 months beginning with 1 April.
(5) The “report date” for an accounting period is the final day of the period of one month beginning with the day after the final day of the accounting period.
(6) The appropriate authority may by regulations provide for exceptions from the duty in subsection (1) by reference to—
(a) descriptions of landlord;
(b) descriptions of service charge;
(c) any other matter.
(7) Regulations under this section—
(a) are to be made by statutory instrument;
(b) may make provision generally or only in relation to specific cases;
(c) may make different provision for different purposes;
(d) may include supplementary, incidental, transitional or saving provision.
(8) A statutory instrument containing regulations under this section is subject to the negative procedure.
(3) In section 28 (meaning of “qualified accountant”)—
(a) in subsection (1), for the words from “in section” to “person” substitute “in section 21D(2)(b) (report on service charge account) is to a person”;
(b) for subsection (2) substitute—
(2) A person has the necessary qualification if the person—
(a) is eligible for appointment as a statutory auditor under Part 42 of the Companies Act 2006, or
(b) satisfies such other requirement or requirements as may be specified in regulations made by the appropriate authority.
;
(c) in subsection (4)(d), for the words from “covered” to the end substitute “covered by the statement of account in question relate”;
(d) after subsection (6) insert—
(7) Regulations under this section—
(a) are to be made by statutory instrument;
(b) may make provision generally or only in relation to specific cases;
(c) may make different provision for different purposes;
(d) may include supplementary, incidental, transitional or saving provision.
(8) A statutory instrument containing regulations under this section (whether alone or with other provision) is subject to the affirmative procedure.
(4) In section 39 (index of defined expressions), in the entry for “qualified accountant”, for “section 21(6)” substitute “section 21D(2)(b)”.
Propose a change57 Right to obtain information on request
(1) The LTA 1985 is amended as follows.
(2) After section 21E (as inserted by section 56) insert—
Right to obtain information on request
21F (1) A tenant may require the landlord to provide information specified in regulations made by the appropriate authority.
(2) The appropriate authority may specify information for the purposes of subsection (1) only if it relates to—
(a) service charges, or
(b) services, repairs, maintenance, improvements, insurance, or management of dwellings.
(3) The landlord must provide the tenant with any of the information requested that is within the landlord’s possession.
(4) The landlord must request information from another person if—
(a) the information has been requested from the landlord under subsection (1),
(b) the landlord does not possess the information when the request is made, and
(c) the landlord believes that the other person possesses the information.
(5) That person must provide the landlord with any of the information requested that is within that person’s possession.
(6) A person (“A”) must request information from another person (“B”) if—
(a) the information has been requested from A under subsection (4) or this subsection,
(b) A does not possess the information when the request is made, and
(c) A believes that B possesses the information.
(7) B must provide A with any of the information requested that is within B’s possession.
(8) The appropriate authority may by regulations—
(a) provide for how a request is to be made under this section;
(b) provide that a request under this section may not be made until the end of a particular period, or until another condition is met;
(c) make provision as to the period within which a request under subsection (4) or (6) must be made;
(d) provide for circumstances in which a duty to comply with a request under this section does not apply.
(9) Section 21G makes further provision about requests under this section.
(10) For the purposes of this section—
(a) “information” includes a document containing information, and a copy of such a document;
(b) references to a tenant include the secretary of a recognised tenants’ association representing the tenant, in circumstances where the tenant has consented to the association acting on the tenant’s behalf for the purposes of this section.
(11) Regulations under this section—
(a) are to be made by statutory instrument;
(b) may make provision generally or only in relation to specific cases;
(c) may make different provision for different purposes;
(d) may include supplementary, incidental, transitional or saving provision.
(12) A statutory instrument containing regulations under this section is subject to the negative procedure.
Requests under section 21F: further provision
21G (1) Subsections (2) to (6) apply where a person (“R”) requests information under section 21F from another person (“P”).
(2) R may request that P provide the information to R by allowing R access to premises where R may inspect the information and make and remove a copy of the information.
(3) P must provide information which P is required to provide under section 21F—
(a) before the end of a specified period beginning with the day the request is made, and
(b) if R has made a request under subsection (2), by allowing R the access requested during a specified period.
“Specified” means specified in regulations made by the appropriate authority.
(4) P may charge R for the costs of doing anything required under section 21F or this section.
(5) But, if P is a landlord, P may not charge the tenant for the costs of allowing the tenant access to premises to inspect information (but may charge for the making of copies).
(6) The costs referred to in subsection (4) may be relevant costs for the purposes of a variable service charge (whether charged to the tenant making the request under section 21F(1) or another tenant).
(7) Regulations under subsection (3) may provide for circumstances in which a specified period is to be extended.
(8) The appropriate authority may by regulations make further provision as to how information requested under section 21F is to be provided.
(9) Regulations under this section—
(a) are to be made by statutory instrument;
(b) may make provision generally or only in relation to specific cases;
(c) may make different provision for different purposes;
(d) may include supplementary, incidental, transitional or saving provision.
(10) A statutory instrument containing regulations under this section is subject to the negative procedure.
Effect of assignment on requests under section 21F
21H (1) The assignment of a tenancy does not affect an obligation arising as a result of a request made under section 21F before the assignment.
(2) But, in the circumstances of such an assignment, a person is not obliged to provide the same information more than once in respect of the same dwelling.
(3) Omit the following sections—
(a) section 22 (request to inspect supporting accounts);
(b) section 23 (request relating to information held by superior landlord);
(c) section 24 (effect of assignment on request).
Propose a change59 Limitation on ability of landlord to charge insurance costs
After section 20F of the LTA 1985 insert—
Limitation of variable service charges: insurance costs
20G (1) Excluded insurance costs are not to be regarded as relevant costs to be taken into account in determining the amount of any variable service charge payable by a tenant.
(2) “Excluded insurance costs” are any costs (whether or not they are expressed as forming part of an insurance premium) that—
(a) are attributable to payments made, or to be made, to arrange or manage insurance, and
(b) are not attributable to a permitted insurance payment.
(3) Payments made to arrange or manage insurance include payments made—
(a) for the purpose of providing an incentive to enter into, or arrange for another person to enter into, a particular contract of insurance;
(b) as remuneration for any work done, however described, in relation to—
(i) a contract of insurance before or after it has been entered into, or
(ii) insurance generally without a particular contract of insurance in contemplation.
(4) A “permitted insurance payment” is a payment of a description specified in regulations made by the appropriate authority.
(5) The regulations may provide that a payment is a permitted insurance payment by reference to—
(a) the kind of person to or in respect of which the payment is made;
(b) the circumstances in which the payment is made;
(c) the method by which the amount of the payment is calculated (which may be a method specified in the regulations);
(d) the nature of its connection with work done, costs incurred or time spent;
(e) any other matter.
(6) In this section, a reference to a payment includes—
(a) a non-monetary benefit;
(b) a right to retain money or a non-monetary benefit instead of paying or giving it to another person.
(7) Regulations under this section—
(a) are to be made by statutory instrument;
(b) may make provision generally or only in relation to specific cases;
(c) may make different provision for different purposes;
(d) may include supplementary, incidental, transitional or saving provision.
(8) A statutory instrument containing regulations under this section (whether alone or with other provision) is subject to the affirmative procedure.
Right to claim where excluded insurance costs charged
20H (1) This section applies if, despite section 20G(1), a tenant pays a prohibited amount to any person.
(2) For the purposes of this section, a “prohibited amount” is an amount that is—
(a) demanded as a variable service charge, and
(b) attributable to excluded insurance costs.
(3) The appropriate tribunal may, on the application of the tenant—
(a) order the person to which the prohibited amount was paid to return all or any part of the amount to the tenant;
(b) order—
(i) the tenant’s landlord,
(ii) a person that benefited from the payment of the prohibited amount, or
(iii) a person that benefited from a payment to which the excluded insurance costs are attributable,
to pay damages to the tenant.
(4) Damages under subsection (3)(b) must—
(a) equal or exceed the prohibited amount paid;
(b) not exceed an amount that is three times the prohibited amount paid.
(5) If the appropriate tribunal orders that more than one person is to pay damages to the tenant under subsection (3)(b)—
(a) the tribunal may order that those persons are to be jointly, severally, or jointly and severally liable to pay the damages, and
(b) the references in subsection (4) and paragraph (a) to the damages are to the damages payable by all of those persons taken together.
Right of landlord to obtain costs attributable to permitted insurance payments
20I (1) It is an implied term of a lease under which a service charge is payable that, if the landlord incurs costs attributable to a permitted insurance payment, the tenant must pay the landlord the amount of those costs.
(2) Such an amount—
(a) is a variable service charge for the purposes of section 18, and the provisions of this Act relating to service charges apply accordingly;
(b) is payable irrespective of whether a lease, contract or other arrangement provides for it to be payable as a service charge.
(3) A lease, contract or other arrangement is of no effect to the extent it would limit the amount payable by the tenant under this section.
Propose a change60 Duty to provide information about insurance to tenants
(1) The Schedule to the LTA 1985 (rights in relation to insurance) is amended as follows.
(2) After paragraph 1 insert—
Duty to provide information
1A (1) Sub-paragraph (2) applies where a service charge payable by a tenant of a dwelling consists of or includes an amount payable directly or indirectly for insurance.
(2) The landlord must—
(a) obtain specified information about the insurance, including by requesting the information from another person, and
(b) within a specified period after insurance is effected in relation to the dwelling, provide that information to the tenant.
“Specified” means specified in regulations made by the appropriate authority.
(3) Regulations under sub-paragraph (2) may provide for circumstances in which a specified period is to be extended.
(4) Paragraph 1B makes further provision about requests by the landlord under sub-paragraph (2)(a).
(5) The appropriate authority may by regulations make provision as to the form and manner in which the information is to be provided.
(6) For the purposes of this paragraph, insurance is “effected” in relation to a dwelling whenever an insurance policy is purchased or renewed in relation to the dwelling.
(7) The landlord may charge the tenant for the costs of complying with the duty in sub-paragraph (2).
(8) The appropriate authority may by regulations provide for exceptions to the duty in sub-paragraph (2) by reference to—
(a) descriptions of landlord;
(b) descriptions of insurance;
(c) any other matter.
(9) In this paragraph, “information” includes a document containing information and a copy of such a document.
(10) Regulations under this paragraph—
(a) are to be made by statutory instrument;
(b) may make provision generally or only in relation to specific cases;
(c) may make different provision for different purposes;
(d) may include supplementary, incidental, transitional or saving provision.
(11) A statutory instrument containing regulations under this paragraph is subject to the negative procedure.
Requests by landlord under paragraph 1A: further provision
1B (1) Sub-paragraph (2) applies where a landlord requests information from another person under paragraph 1A(2)(a).
(2) That person must provide the landlord with any of the information requested that is within the person’s possession.
(3) A person (“A”) must request information from another person (“B”) if—
(a) the information has been requested from A under paragraph 1A(2)(a) or this sub-paragraph,
(b) A does not possess the information when the request is made, and
(c) A believes that B possesses the information.
(4) B must provide A with any of the information requested that is within B’s possession.
(5) A person must provide information they are required to provide under this paragraph before the end of a specified period beginning with the day on which a request for the information is made.
(6) In this paragraph, “specified” means specified in regulations made by the appropriate authority.
(7) A person who provides information to another person under this paragraph may charge that person for the costs of doing so.
(8) The appropriate authority may by regulations—
(a) provide for how a request is to be made under paragraph 1A(2)(a) or this paragraph;
(b) provide that a request may not be made until the end of a particular period, or until another condition is met;
(c) make provision as to the period within which a request under sub-paragraph (3) must be made;
(d) provide for circumstances in which a duty to comply with a request under paragraph 1A(2)(a) or this paragraph does not apply;
(e) make provision as to how information requested is to be provided.
(9) Regulations under this paragraph—
(a) are to be made by statutory instrument;
(b) may make provision generally or only in relation to specific cases;
(c) may make different provision for different purposes;
(d) may include supplementary, incidental, transitional or saving provision.
(10) A statutory instrument containing regulations under this paragraph is subject to the negative procedure.
Enforcement of duty to provide information
1C (1) A tenant may make an application to the appropriate tribunal on the ground that the landlord failed to comply with a requirement under paragraph 1A.
(2) On an application made under sub-paragraph (1), the tribunal may make one or both of the following orders—
(a) an order that the landlord comply with the requirement before the end of a period specified in regulations made by the appropriate authority;
(b) an order that the landlord pay damages to the tenant for the failure.
(3) A person (“C”) may make an application to the appropriate tribunal on the ground that another person (“D”) failed to comply with a requirement under paragraph 1B.
(4) On an application made under sub-paragraph (3), the tribunal may make one or both of the following orders—
(a) an order that D comply with the requirement before the end of a period specified in regulations made by the appropriate authority;
(b) an order that D pay damages to C for the failure.
(5) Damages under this paragraph may not exceed £5,000.
(6) The appropriate authority may by regulations amend the amount in sub-paragraph (5) if the appropriate authority considers it expedient to do so to reflect changes in the value of money.
(7) Regulations under this paragraph—
(a) are to be made by statutory instrument;
(b) may make provision generally or only in relation to specific cases;
(c) may make different provision for different purposes;
(d) may include supplementary, incidental, transitional or saving provision.
(8) A statutory instrument containing regulations under this paragraph is subject to the negative procedure.
(3) Omit paragraphs 2 to 6.
(4) In paragraph 9(1)—
(a) for “Paragraphs 2 to 8” substitute “Paragraphs 1A to 8”;
(b) for the words from “in which case” to “does not”, substitute “in which case paragraphs 1A, 1B, 7 and 8 apply but paragraph 1C does not.”
Propose a change61 Duty of landlords to publish administration charge schedules
In Schedule 11 to the CLRA 2002 (administration charges)—
(a) omit paragraph 4 (notice in connection with demands for administration charges);
(b) before paragraph 5 insert—
Duty to publish administration charge schedules
4A (1) A person must produce and publish an administration charge schedule in relation to a building if the person is the landlord of the tenants of one or more dwellings in that building.
(2) An “administration charge schedule” is a document setting out—
(a) the administration charges which the landlord considers may be payable by one or more of those tenants, and
(b) for each charge—
(i) its amount, or
(ii) if it is not possible to determine its amount before it becomes payable, how its amount will be determined if it becomes payable.
(3) The landlord—
(a) may revise a published administration charge schedule, and
(b) must publish a revised schedule.
(4) The landlord must provide each tenant with the administration charge schedule for the time being published in relation to the building.
(5) The appropriate national authority may by regulations make provision as to—
(a) the meaning of “building” for the purposes of this paragraph;
(b) the form of an administration charge schedule;
(c) the content of an administration charge schedule;
(d) how an administration charge schedule must be published;
(e) how an administration charge schedule is to be provided to a tenant.
(6) An administration charge is payable by a tenant only if—
(a) its amount appeared for the required period on a published administration charge schedule, or
(b) its amount was determined in accordance with a method that appeared for the required period on a published administration charge schedule.
(7) “The required period” is the period of 28 days ending with the day on which the administration charge is demanded to be paid.
(8) This paragraph does not apply in relation to an administration charge that may be payable by a tenant of—
(a) a local authority;
(b) a National Park authority;
(c) a new town corporation,
unless the tenancy is a long tenancy.
(9) Subsections (2) and (3) of section 26 of the 1985 Act apply for the purposes of sub-paragraph (8) as they apply for the purposes of subsection (1) of that section.
(10) In this paragraph, “local authority” and “new town corporation” have the same meanings as in the 1985 Act (see section 38 of that Act).
Enforcement of duty to publish administration charge schedules
4B (1) A tenant may make an application to the appropriate tribunal on the ground that the landlord has failed to comply with paragraph 4A or regulations made under it.
(2) The tribunal may make one or both of the following orders—
(a) an order that the landlord comply with that paragraph or regulations made under it before the end of the period of 14 days beginning with the day after the date of the order;
(b) an order that the landlord pay damages to the tenant for the failure.
(3) Damages under sub-paragraph (2)(b) may not exceed £1,000.
(4) The appropriate national authority may by regulations amend the amount in sub-paragraph (3) if the appropriate national authority considers it expedient to do so to reflect changes in the value of money.
(5) The appropriate tribunal may not make an order under this paragraph if the landlord is—
(a) a local authority;
(b) a National Park authority;
(c) a new town corporation.
(6) In this paragraph, “local authority” and “new town corporation” have the same meanings as in the 1985 Act (see section 38 of that Act).
Propose a change62 Limits on rights of landlords to claim litigation costs from tenants
(1) The LTA 1985 is amended in accordance with subsections (2) and (3).
(2) Omit section 20C (limitation of service charges: costs of proceedings).
(3) Before section 20D insert—
Limitation of variable service charges: litigation costs
20CA (1) A landlord’s litigation costs are not to be regarded as relevant costs to be taken into account in determining the amount of a variable service charge, whether or not the charge is payable—
(a) by a party to the lease which the relevant proceedings concern, or
(b) to a person that is party to the relevant proceedings.
(2) But the relevant court or tribunal may, on an application by a landlord, order that subsection (1) does not apply to any or all of the landlord’s litigation costs in relation to a variable service charge payable by a person specified in the application.
(3) An order may be made only in respect of litigation costs—
(a) that would, but for subsection (1), be taken into account in determining the amount of the variable service charge;
(b) that are not incurred, or to be incurred, in connection with relevant proceedings arising under—
(i) Part 1 of the Leasehold Reform Act 1967 (enfranchisement and extension of leases of houses),
(ii) Chapter 1 or 2 of Part 1 of the Leasehold Reform, Housing and Urban Development Act 1993 (enfranchisement and extension of leases of flats), or
(iii) Chapter 1 of Part 2 of the Commonhold and Leasehold Reform Act 2002 (right to manage).
(4) The relevant court or tribunal may make such order on the application as it considers just and equitable in the circumstances.
(5) The relevant court or tribunal must, in deciding whether to make an order, take into account any matters specified in regulations made by the appropriate authority.
(6) The appropriate authority may by regulations make provision about—
(a) how an application is to be made;
(b) whether and how notice of an application is to be given to—
(i) a person specified in the application;
(ii) a person not specified in the application;
(c) the effect of—
(i) giving notice of an application;
(ii) failing to give notice of an application;
(d) circumstances in which a person not specified in an application is to be treated as having been specified.
(7) See section 20CB for powers of the appropriate authority to provide for other exceptions to subsection (1).
(8) A lease, contract or other arrangement is of no effect to the extent it makes provision contrary to this section, regulations made under this section or an order made under this section.
(9) In this section—
“litigation costs” means any costs incurred, or to be incurred, by a person in connection with relevant proceedings to which they are party;
“relevant proceedings” means proceedings—
that are before a court, residential property tribunal, leasehold valuation tribunal, the First-tier Tribunal or the Upper Tribunal, or are arbitration proceedings,
to which a landlord and a tenant are party, and
that concern a lease of a dwelling to which that landlord and that tenant are party;
“the relevant court or tribunal” means—
where the relevant proceedings are 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;
where the relevant proceedings are before a residential property tribunal, a leasehold valuation tribunal;
where the relevant proceedings are before a leasehold valuation tribunal, the tribunal before which the proceedings are taking place or, if the application is made after the proceedings are concluded, any leasehold valuation tribunal;
where the relevant proceedings are before the First-tier Tribunal, the Tribunal;
where the relevant proceedings are before the Upper Tribunal, the Tribunal;
where the relevant proceedings are arbitration proceedings, the arbitral tribunal or, if the application is made after the proceedings are concluded, the county court.
(10) A reference in this section to proceedings concerning a lease includes—
(a) proceedings concerning any matter arising out of—
(i) the existence of the lease,
(ii) any term of the lease, or
(iii) any agreement or arrangement entered into in connection with the lease;
(b) proceedings concerning any enactment relevant to—
(i) the lease, or
(ii) any agreement or arrangement entered into in connection with the lease;
(c) proceedings that otherwise have a connection with the lease.
(11) Regulations under this section—
(a) are to be made by statutory instrument;
(b) may make provision generally or only in relation to specific cases;
(c) may make different provision for different purposes;
(d) may include supplementary, incidental, transitional or saving provision.
(12) A statutory instrument containing regulations under this section is subject to the negative procedure.
Section 20CA: powers to provide for exceptions
20CB (1) The appropriate authority may by regulations provide for circumstances in which—
(a) section 20CA(1) does not apply, or
(b) the effect of section 20CA(1) is to be suspended until an event of a specified description occurs.
(2) The circumstances may include, among other things, that—
(a) the litigation costs,
(b) the relevant proceedings, or
(c) the landlord,
are of a specified description.
(3) Where, by virtue of regulations under subsection (1)(b), the effect of section 20CA(1) is suspended until an event of a specified description occurs—
(a) section 20CA(1) does not have effect before the event, but
(b) section 20CA(1) does have effect on or after the event in relation to a variable service charge paid or payable before the event.
(4) Accordingly, if—
(a) a variable service charge was paid before the event, and
(b) the landlord’s litigation costs were regarded as relevant costs to be taken into account in determining the amount of that charge until the event because the effect of section 20CA(1) was suspended,
the landlord may retain the amount of those costs after the event only if the relevant court or tribunal makes an order under section 20CA(2) in relation to that charge.
(5) In this section—
“litigation costs”, “relevant proceedings” and “the relevant court or tribunal” have the same meaning as in section 20CA;
“specified” means specified in regulations under this section.
(6) Regulations under this section—
(a) are to be made by statutory instrument;
(b) may make provision generally or only in relation to specific cases;
(c) may make different provision for different purposes;
(d) may include supplementary, incidental, transitional or saving provision.
(7) A statutory instrument containing regulations under this section (whether alone or with other provision) is subject to the affirmative procedure.
(4) The CLRA 2002 is amended in accordance with subsections (5) to (7).
(5) In section 172(1) (application of provision to the Crown)—
(a) omit the “and” at the end of paragraph (g);
(b) in paragraph (h), at the end insert
, and
(i) Schedule 12 (leasehold valuation tribunals), as it applies in relation to paragraph 5B of Schedule 11.
(6) In section 178(4) (orders and regulations), after “171” insert “, paragraph 5C of Schedule 11”.
(7) In Schedule 11 (administration charges)—
(a) omit paragraph 5A (limitation of administration charges: costs of proceedings);
(b) before paragraph 6 insert—
Limitation of administration charges: litigation costs
5B (1) No administration charge is payable by a tenant of a dwelling in respect of the landlord’s litigation costs.
(2) But the relevant court or tribunal may, on an application by a landlord, order that sub-paragraph (1) does not apply to an administration charge in respect of all or any of the landlord’s litigation costs.
(3) An order may be made only in respect of an administration charge—
(a) that would, but for sub-paragraph (1), be payable by the tenant;
(b) that is for litigation costs that are not incurred, or to be incurred, in connection with relevant proceedings arising under—
(i) Part 1 of the 1967 Act (enfranchisement and extension of leases of houses),
(ii) Chapter 1 or 2 of Part 1 of the 1993 Act (enfranchisement and extension of leases of flats), or
(iii) Chapter 1 of Part 2 of this Act (right to manage).
(4) The relevant court or tribunal may make such order on the application as it considers just and equitable in the circumstances.
(5) The relevant court or tribunal must, in deciding whether to make an order, take into account any matters specified in regulations made by the appropriate national authority.
(6) See paragraph 5C for powers of the appropriate national authority to provide for other exceptions to sub-paragraph (1).
(7) A lease, contract or other arrangement is of no effect to the extent it makes provision contrary to this paragraph, regulations made under this paragraph, or an order made under this paragraph.
(8) In this paragraph—
“litigation costs” means any costs incurred, or to be incurred, by a person in connection with relevant proceedings to which they are party;
“relevant proceedings” means proceedings—
that are before a court, residential property tribunal, leasehold valuation tribunal, the First-tier Tribunal or the Upper Tribunal, or are arbitration proceedings,
to which a landlord and a tenant are party, and
that concern a lease to which that landlord and that tenant are party;
“the relevant court or tribunal” means—
where the relevant proceedings are 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;
where the relevant proceedings are before a residential property tribunal, a leasehold valuation tribunal;
where the relevant proceedings are before a leasehold valuation tribunal, the tribunal before which the proceedings are taking place or, if the application is made after the proceedings are concluded, any leasehold valuation tribunal;
where the relevant proceedings are before the First-tier Tribunal, the Tribunal;
where the relevant proceedings are before the Upper Tribunal, the Tribunal;
where the relevant proceedings are arbitration proceedings, the arbitral tribunal or, if the application is made after the proceedings are concluded, the county court.
(9) The reference in the definition of “relevant proceedings” to proceedings concerning a lease includes—
(a) proceedings concerning any matter arising out of—
(i) the existence of the lease,
(ii) any term of the lease, or
(iii) any agreement or arrangement entered into in connection with the lease;
(b) proceedings concerning any enactment relevant to—
(i) the lease, or
(ii) any agreement or arrangement entered into in connection with the lease;
(c) proceedings that otherwise have a connection with the lease.
Paragraph 5B: powers to provide for exceptions
5C (1) The appropriate national authority may by regulations provide for circumstances in which—
(a) paragraph 5B(1) does not apply, or
(b) the effect of paragraph 5B(1) is to be suspended until an event of a specified description occurs.
(2) The circumstances may include, among other things, that—
(a) the litigation costs,
(b) the relevant proceedings, or
(c) the landlord,
are of a specified description.
(3) Where, by virtue of regulations under sub-paragraph (1)(b), the effect of paragraph 5B(1) is suspended until an event of a specified description occurs—
(a) paragraph 5B(1) does not have effect before the event, but
(b) paragraph 5B(1) does have effect on or after the event in relation to an administration charge paid or payable before the event.
(4) Accordingly, if an administration charge was paid before the event in respect of the landlord’s litigation costs because the effect of paragraph 5B(1) was suspended, the landlord may retain the amount of that charge after the event only if the relevant court or tribunal makes an order under paragraph 5B(2) in relation to that charge.
(5) In this paragraph—
“litigation costs”, “relevant proceedings” and “the relevant court or tribunal” have the same meaning as in paragraph 5B;
“specified” means specified in regulations under this paragraph.
Propose a change63 Right of tenants to claim litigation costs from landlords
After section 30I of the LTA 1985 insert—
Right of tenants to claim litigation costs from landlords
Right of tenants to claim litigation costs from landlords
30J (1) It is an implied term of a lease that if—
(a) there are relevant proceedings concerning the lease, and
(b) the relevant court or tribunal orders, on an application by the tenant, that the landlord pay an amount in respect of all or any of the tenant’s litigation costs in connection with the proceedings,
the landlord must pay the tenant the amount ordered.
(2) The relevant court or tribunal may make such order on the application as it considers just and equitable in the circumstances.
(3) The relevant court or tribunal must, in deciding whether to make an order, take into account any matters specified in regulations made by the appropriate authority.
(4) Costs incurred by a landlord—
(a) in connection with an application for an order,
(b) in compliance with the implied term, or
(c) otherwise in connection with the implied term or an order (for example, in connection with appeal proceedings or proceedings to enforce the implied term),
are litigation costs of the landlord (and section 20CA of this Act and paragraph 5B of Schedule 11 to the Commonhold and Leasehold Reform Act 2002 apply accordingly).
(5) A lease, contract or other arrangement is of no effect to the extent it makes provision contrary to this section, regulations made under this section or an order made under this section.
(6) In this section—
“landlord” and “tenant” have the same meanings as in the provisions relating to service charges (see section 30);
“litigation costs” means any costs incurred, or to be incurred, by a person in connection with relevant proceedings to which they are party;
“relevant proceedings” means proceedings—
that are before a court, residential property tribunal, leasehold valuation tribunal, the First-tier Tribunal or the Upper Tribunal, or are arbitration proceedings,
to which a landlord and a tenant are party,
that concern a lease of a dwelling to which that landlord and that tenant are party, and
that relate to a matter of a description specified in regulations made by the appropriate authority;
“the relevant court or tribunal” means—
where the relevant proceedings are 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;
where the relevant proceedings are before a residential property tribunal, a leasehold valuation tribunal;
where the relevant proceedings are before a leasehold valuation tribunal, the tribunal before which the proceedings are taking place or, if the application is made after the proceedings are concluded, any leasehold valuation tribunal;
where the relevant proceedings are before the First-tier Tribunal, the tribunal;
where the relevant proceedings are before the Upper Tribunal, the tribunal;
where the relevant proceedings are arbitration proceedings, the arbitral tribunal or, if the application is made after the proceedings are concluded, the county court.
(7) A reference in this section to proceedings concerning a lease includes—
(a) proceedings concerning any matter arising out of—
(i) the existence of the lease,
(ii) any term of the lease, or
(iii) any agreement or arrangement entered into in connection with the lease;
(b) proceedings concerning any enactment relevant to—
(i) the lease, or
(ii) any agreement or arrangement entered into in connection with the lease;
(c) proceedings that otherwise have a connection with the lease.
(8) Regulations under this section—
(a) are to be made by statutory instrument;
(b) may make provision generally or only in relation to specific cases;
(c) may make different provision for different purposes;
(d) may include supplementary, incidental, transitional or saving provision.
(9) A statutory instrument containing regulations under this section is subject to the negative procedure.
Propose a change64 Restriction on recovery of non-litigation costs of enfranchisement, extension and right to manage
After section 20I of the LTA 1985 (as inserted by section 59) insert—
Limitation of variable service charges: non-litigation costs of enfranchisement etc
20J (1) Non-litigation costs incurred, or to be incurred, by a landlord in connection with a relevant claim are not to be regarded as relevant costs to be taken into account in determining the amount of a variable service charge payable by a tenant who is a non-participating tenant in relation to that claim.
(2) A lease, contract or other arrangement is of no effect to the extent it makes provision to the contrary.
(3) In this section and section 20K—
“the 1967 Act” means the Leasehold Reform Act 1967;
“the 1993 Act” means the Leasehold Reform, Housing and Urban Development Act 1993;
“the 2002 Act” means the Commonhold and Leasehold Reform Act 2002;
“non-litigation costs” means costs incurred, or to be incurred, other than in connection with proceedings before a court or tribunal;
“non-participating tenant”, in relation to a relevant claim, means a tenant who is not a participating tenant;
“participating tenant”, in relation to a relevant claim, means a tenant who—
in the case of a claim under Part 1 of the 1967 Act or Chapter 1 or 2 of Part 1 of the 1993 Act, is making the claim;
in the case of a claim under Chapter 1 of Part 2 of the 2002 Act, is or has been a member of the RTM company making the claim;
“relevant claim” means—
a claim under Part 1 of the 1967 Act (enfranchisement and extension of leases of houses);
a claim under Chapter 1 or 2 of Part 1 of the 1993 Act (enfranchisement and extension of leases of flats);
a claim under Chapter 1 of Part 2 of the 2002 Act (right to manage);
“RTM company” has the same meaning as in Chapter 1 of Part 2 of the 2002 Act (see section 71 of that Act).
(4) For provision about when a participating tenant is and is not liable in respect of non-litigation costs in relation to a relevant claim, see—
(a) section 19A of the 1967 Act;
(b) section 89A of the 1993 Act;
(c) section 87A of the 2002 Act.
Right to claim where non-litigation costs charged contrary to section 20J
20K (1) This section applies if, despite section 20J(1), a non-participating tenant in relation to a relevant claim pays a prohibited amount to any person.
(2) For the purposes of this section, a “prohibited amount” is an amount that is—
(a) demanded as a variable service charge, and
(b) attributable to non-litigation costs incurred, or to be incurred, in connection with the claim.
(3) The appropriate tribunal may, on the application of the tenant, order the person to which the prohibited amount was paid to return all or any part of the amount to the tenant.
Propose a change68 Regulations under the LTA 1985: procedure and appropriate authority
(1) The LTA 1985 is amended as follows.
(2) After section 37 insert—
Procedure applicable to statutory instruments
37A (1) In this Act, if a statutory instrument is “subject to the affirmative procedure” it may not be made unless—
(a) where it contains (whether alone or with other provision) regulations or an order made by the Secretary of State, a draft of the instrument has been laid before and approved by a resolution of each House of Parliament;
(b) where it contains (whether alone or with other provision) regulations or an order made by the Welsh Ministers, a draft of the instrument has been laid before and approved by a resolution of Senedd Cymru.
(2) In this Act, if a statutory instrument is “subject to the negative procedure” it is—
(a) where it contains regulations or an order made by the Secretary of State, subject to annulment in pursuance of a resolution of either House of Parliament;
(b) where it contains regulations or an order made by the Welsh Ministers, subject to annulment in pursuance of a resolution of Senedd Cymru.
(3) In section 38 (minor definitions), after the definition of “address” insert—
“the appropriate authority”—
in relation to England, means the Secretary of State;
in relation to Wales, means the Welsh Ministers;
.
(4) In section 39 (index of defined expressions), after the entry for “address” insert—
the appropriate authority | section 38
.
Propose a change70 Part 4: consequential amendments
Schedule 11 contains amendments that are consequential on this Part.
Propose a change113 Regulation of remedies for arrears of rentcharges
(1) The Law of Property Act 1925 is amended in accordance with this section.
(2) Before section 121 insert—
Interpretation
120A (1) For the purposes of sections 120B to 122 a rentcharge is “regulated” if it is of a kind that could not be created in accordance with section 2 of the Rentcharges Act 1977.
(2) In sections 120B to 120D—
“charged land” means the land which is, or the land the income of which is, charged by the rentcharge;
“demand for payment” means a notice under section 120B(1)(a) demanding payment of regulated rentcharge arrears;
“landowner”, in relation to a sum that is charged by rentcharge, means the person who holds the charged land;
“regulated rentcharge arrears” means a sum charged by a regulated rentcharge that is unpaid after the time appointed for its payment;
“rent owner”, in relation to a sum that is charged by rentcharge, means the person who holds title to the rentcharge.
Regulated rentcharges: notice of arrears before enforcement
120B (1) No action to recover or compel payment of regulated rentcharge arrears may be taken unless—
(a) the rent owner has served the landowner with notice demanding payment of those arrears,
(b) the demand for payment complies with the requirements of subsection (2),
(c) the demand for payment either—
(i) complies with the requirements of subsection (3), or
(ii) does not need to comply with those requirements (see subsection (5)), and
(d) the period of 30 days, beginning with the day on which the demand for payment is served, has ended.
(2) The demand for payment must set out—
(a) the name of the rent owner;
(b) the address of the rent owner and, if that address is not in England and Wales, an address in England and Wales at which notices (including notices in proceedings) may be served on the rent owner by the landowner;
(c) the amount of the regulated rentcharge arrears;
(d) how that amount has been calculated;
(e) details of how to pay that amount.
(3) The demand for payment must set out, or be served with—
(a) a copy of the instrument creating the regulated rentcharge;
(b) proof that title to the regulated rentcharge is held by the rent owner.
(4) The demand for payment is to be taken to comply with the requirement in subsection (3)(b) if—
(a) in a case where the rent owner’s title to the regulated rentcharge is registered at the Land Registry, the demand includes a copy of that registered title; or
(b) in a case where title to the regulated rentcharge is not registered at the Land Registry, the demand includes copies of the instruments by which title to the rentcharge has passed to the rent owner.
(5) A demand for payment served by a rent owner on a landowner in relation to a regulated rentcharge does not need to comply with subsection (3) if—
(a) a previous demand for payment that has been served by that rent owner on that landowner in relation to that rentcharge complied with that subsection, and
(b) since the service of that previous demand, there has been no material change in the matters to which subsection (3) relates.
(6) No sum is payable by the landowner in respect of the preparation or service of a demand for payment (including obtaining or preparing documents or copies in order to comply with subsection (3)).
(7) This section applies to action to recover or compel payment of rentcharge arrears whether the action is authorised by this Act or is otherwise available (and includes bringing proceedings).
Service of notice under section 120B: additional requirement
120C (1) This section applies if—
(a) notice under section 120B demanding the payment of rentcharge arrears is served in compliance with the requirements of section 196(3) or (4), but
(b) the place of abode or business at which the notice is left, or to which the notice is sent, in compliance with those requirements is not the charged land.
(2) The notice is sufficiently served only if (in addition to complying with the requirements of section 196(3) or (4))—
(a) it is affixed or left for the landowner on the charged land, or
(b) it is sent by post in a registered letter addressed to the landowner, by name, at the charged land, and if that letter is not returned by the postal operator (within the meaning of Part 3 of the Postal Services Act 2011) concerned undelivered; and that service shall be deemed to be made at the time at which the registered letter would in the ordinary course be delivered.
Regulated rentcharge arrears: administration charges
120D (1) The Secretary of State may by regulations limit the amounts payable by landowners, directly or indirectly, in respect of action to recover or compel payment of regulated rentcharge arrears.
(2) Regulations under this section may (in particular) provide that no amount is to be payable by landowners in respect of particular descriptions of action to recover or compel payment of regulated rentcharge arrears.
(3) Regulations under this section may make—
(a) different provision for different cases;
(b) transitional or saving provision.
(4) Regulations under this section are to be made by statutory instrument.
(5) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of either House of Parliament.
(3) In section 121 (remedies for the recovery of annual sums charged on land) after subsection (1) insert—
(1A) But where such a sum is charged by way of a regulated rentcharge, the rent owner does not have any of those remedies for recovering and compelling payment of the sum on and after 27 November 2023.
(4) In section 122 (creation of rentcharges charged on another rentcharge and remedies for recovery thereof), after subsection (1) insert—
(1A) But on and after 27 November 2023 such a rentcharge or other annual sum may not be granted, reserved, charged or created out of or on another rentcharge if it is a regulated rentcharge.
(5) The amendments made by subsections (1) to (4) have effect in relation to rentcharge arrears arising before or after the coming into force of this section.
(6) After section 122 insert—
Contrary provision of no effect
122A An instrument creating a rentcharge, or a contract or any other arrangement, (whenever entered into) is of no effect to the extent that it makes provision that is contrary to—
(a) section 120B, 120C, 121(1A) or 122(1A), or
(b) regulations under section 120D.
Propose a change114 Steps relating to remediation of defects
(1) The BSA 2022 is amended as follows.
(2) In the heading of section 120 (meaning of “relevant defect”), at the end insert “and “relevant steps””.
(3) In section 120, after subsection (4) insert—
(4A) “Relevant steps”, in relation to a relevant defect, means steps which have as their purpose—
(a) preventing or reducing the likelihood of a fire or collapse of the building (or any part of it) occurring as a result of the relevant defect,
(b) reducing the severity of any such incident, or
(c) preventing or reducing harm to people in or about the building that could result from such an incident.
(4) In Schedule 8 (remediation costs under qualifying leases etc), in paragraph 1(1)—
(a) omit the definitions of “building safety risk” and “relevant risk”;
(b) for the definition of “relevant measure” substitute—
“relevant measure”, in relation to a relevant defect, means—
a measure taken to remedy the relevant defect, or
a relevant step taken in relation to the relevant defect;
“relevant step”: see section 120;
.
Propose a change115 Remediation orders
(1) Section 123 of the BSA 2022 (remediation orders) is amended in accordance with subsections (2) to (4).
(2) In subsection (2), for “remedy specified relevant defects in a specified relevant building by a specified time” substitute
do one or both of the following by a specified time—
(a) remedy specified relevant defects in a specified relevant building;
(b) take specified relevant steps in relation to a specified relevant defect in a specified relevant building.
(3) For subsection (6) substitute—
(6) In this section—
“relevant building”: see section 117;
“relevant defect”: see section 120;
“relevant steps”: see section 120;
“specified” means specified in the order.
(4) After subsection (7) insert—
(8) In proceedings for a remediation order, a direction given by the First-tier Tribunal requiring a relevant landlord to provide or produce an expert report is to be regarded as a decision for the purposes of subsection (7).
(9) In subsection (8), “expert report” means an expert report or survey relating to—
(a) relevant defects, or potential relevant defects, in a relevant building;
(b) relevant steps taken or that might be taken in relation to a relevant defect in a relevant building.
(5) The amendments made by this section apply in relation to proceedings for a remediation order as mentioned in section 123 of the BSA 2022 which are pending on the day on which those amendments come into force (as well as proceedings for such an order which are commenced on or after that day).
Propose a change116 Remediation contribution orders
(1) Section 124 of the BSA 2022 (remediation contribution orders) is amended in accordance with subsections (2) to (6).
(2) In subsection (2), after “remedying” insert “, or otherwise in connection with,”.
(3) After subsection (2) insert—
(2A) The following descriptions of costs, among others, fall within subsection (2)—
(a) costs incurred or to be incurred in taking relevant steps in relation to a relevant defect in the relevant building;
(b) costs incurred or to be incurred in obtaining an expert report relating to the relevant building;
(c) temporary accommodation costs incurred or to be incurred in connection with a decant from the relevant building (or from part of it) that took place or is to take place—
(i) to avoid an imminent threat to life or of personal injury arising from a relevant defect in the building,
(ii) (in the case of a decant from a dwelling) because works relating to the building created or are expected to create circumstances in which those occupying the dwelling cannot reasonably be expected to live, or
(iii) for any other reason connected with relevant defects in the building, or works relating to the building, that is prescribed by regulations made by the Secretary of State.
(2B) The Secretary of State may make regulations for the purposes of this section specifying descriptions of costs which are, or are not, to be regarded as falling within subsection (2).
(4) In subsection (3), after “specified” insert “as a person required to make payments”.
(5) In subsection (4)—
(a) in paragraph (a), omit from “or payments” to the end;
(b) after paragraph (a) insert—
(aa) if it does not require the making of payments of a specified amount, determine that a specified body corporate or partnership is liable for the reasonable costs of specified things done or to be done;
.
(6) In subsection (5)—
(a) after the definition of “developer” insert—
“expert report” has the meaning given by section 123(9);
;
(b) after the definition of “relevant defect” insert—
“relevant steps”: see section 120;
;
(c) after the definition of “specified” insert—
“temporary accommodation costs”, in relation to a decant from a relevant building, means—
the costs of the temporary accommodation, and
other costs resulting from the decant, including removal costs, storage costs and reasonable travel costs;
“works” means works—
to remedy a relevant defect in a relevant building, or
in connection with the taking of relevant steps in relation to such a defect.
(7) The amendments made by this section apply—
(a) in relation to proceedings for a remediation contribution order under section 124 of the BSA 2022 which are pending on the day on which those amendments come into force (as well as proceedings for such an order which are commenced on or after that day);
(b) in relation to costs incurred before as well as after those amendments come into force.
Propose a change117 Recovery of legal costs etc through service charge
(1) Schedule 8 to the BSA 2022 (remediation costs under qualifying leases etc) is amended in accordance with subsections (2) and (3).
(2) After paragraph 9(1) insert—
(1A) Sub-paragraph (1) does not apply to the extent that the service charge is payable to a management company in respect of legal or other professional services provided to the company in connection with an application or possible application by the company for or relating to a remediation contribution order under section 124.
(3) After paragraph 9(2) insert—
(3) In sub-paragraph (1A) “management company” means—
(a) a resident management company, or
(b) an RTM company within the meaning of Chapter 1 of Part 2 of the Commonhold and Leasehold Reform Act 2002 (right to manage).
(4) “Resident management company” means a body corporate which is party to a lease of a building where—
(a) the body corporate is limited by guarantee and the members of that body are tenants under leases of dwellings in the building (“leaseholders”), or
(b) the majority of the shares of the body corporate are held by leaseholders.
(4) The amendments made by this section do not apply in relation to legal or other professional services provided before this section comes into force.
Propose a change118 Repeal of section 125 of the BSA 2022
(1) Omit section 125 of the BSA 2022 (meeting remediation costs of insolvent landlord).
(2) In consequence of that repeal—
(a) in section 116(1), for “125” substitute “124”;
(b) omit section 116(2)(e);
(c) in section 117(1), for “125” substitute “124”;
(d) in section 119(1), for “125” substitute “124”;
(e) in section 119A(9), for “125” substitute “124”;
(f) in section 120(1), for “125” substitute “124”;
(g) in section 121(1), for “125” substitute “124”;
(h) in section 164(1)(c), for “125” substitute “124”.
Propose a change119 Higher-risk and relevant buildings: notifications in connection with insolvency
Before section 126 of the BSA 2022 (and the italic heading before it) insert—
Insolvency of certain persons with an interest in higher-risk and relevant buildings
Notifications by insolvency practitioners
125A (1) This section applies if an insolvency practitioner is appointed in relation to a responsible person for a higher-risk building or a relevant building.
(2) For the purposes of this section, a person is “a responsible person” for a building if—
(a) in the case of a higher-risk building, the person is an accountable person for the building (see section 72 for the meaning of “accountable person” for a higher-risk building);
(b) in the case of a relevant building that is not a higher-risk building, the person would be an accountable person for the building if section 72 were read as applying to such a building (and as if the reference in that section to a residential unit were a reference to a dwelling).
(3) The insolvency practitioner must give the information in subsection (6) (“the required information”) to—
(a) the local authority for the area in which the building for which the person is a responsible person is situated, or (if applicable) each local authority in whose area a building for which the person is a responsible person is situated, and
(b) the fire and rescue authority for the area in which the building for which the person is a responsible person is situated, or (if applicable) each fire and rescue authority in whose area a building for which the person is a responsible person is situated.
(4) If the insolvency practitioner is appointed in relation to an accountable person for a higher-risk building, the practitioner must also give the required information to the regulator.
(5) The required information must be provided within the period of 14 days beginning with the day on which the insolvency practitioner is appointed.
(6) The information is as follows—
(a) the name and address of the person in relation to whom the insolvency practitioner is appointed;
(b) the address of each higher-risk building or relevant building for which the person is a responsible person (but see subsection (7));
(c) an official copy of the register of title and title plan relating to each registered estate or interest the person holds in such a building, if any (but see subsection (7));
(d) the nature of the practitioner’s appointment;
(e) the practitioner’s name, address, telephone number and email address (if any);
(f) so much of the information set out in the table in rule 1.6 of the Insolvency (England and Wales) Rules 2016 (S.I. 2016/1024) as is known to the practitioner.
(7) A local authority or fire and rescue authority need only be notified about buildings, or registered estates or interests in buildings, in their area.
(8) In this section “insolvency practitioner” means—
(a) an administrator;
(b) an administrative receiver;
(c) a receiver appointed by the courts or by a mortgagee;
(d) a liquidator;
(e) a trustee in bankruptcy.
(9) In this section—
“fire and rescue authority” has the meaning given by section 30;
“higher-risk building” has the same meaning as in Part 4 (see section 65);
“local authority” has the meaning given by section 30;
“register of title” means the register kept under section 1 of the Land Registration Act 2002;
“the regulator” has the meaning given by section 2;
“relevant building” has the meaning given by section 117;
“title plan” means a plan based on the Ordnance Survey map and referred to in the register of title.
Propose a change120 Interpretation of references to other Acts
In this Act—
“the BSA 2022” means the Building Safety Act 2022;
“the CLRA 2002” means the Commonhold and Leasehold Reform Act 2002;
“the LRA 1967” means the Leasehold Reform Act 1967;
“the LRHUDA 1993” means the Leasehold Reform, Housing and Urban Development Act 1993;
“the LR(GR)A 2022” means the Leasehold Reform (Ground Rent) Act 2022;
“the LTA 1985” means the Landlord and Tenant Act 1985;
“the LTA 1987” means the Landlord and Tenant Act 1987;
“the RA 1977” means the Rentcharges Act 1977.
Propose a change121 Power to make consequential provision
(1) The Secretary of State may by regulations make provision that is consequential on this Act.
(2) Regulations under this section may amend, repeal or revoke provision made by or under—
(a) an Act of Parliament passed before, or in the same Session as, this Act, or
(b) this Act.
(3) A statutory instrument containing (whether alone or with other provision) regulations under this section that amend or repeal provision made by an Act of Parliament is subject to the affirmative procedure.
(4) Any other statutory instrument containing regulations under this section is subject to the negative procedure.
Propose a change122 Regulations
(1) A power to make regulations under any provision of this Act includes power to make—
(a) consequential, supplementary, incidental, transitional or saving provision;
(b) different provision for different purposes.
(2) A power to make regulations under Part 6 also includes power to make different provision for different areas.
(3) Regulations under this Act are to be made by statutory instrument.
(4) In this Act, if a statutory instrument is “subject to the affirmative procedure” it may not be made unless—
(a) where it contains (whether alone or with other provision) regulations made by the Secretary of State, a draft of the instrument has been laid before and approved by a resolution of each House of Parliament;
(b) where it contains (whether alone or with other provision) regulations made by the Welsh Ministers, a draft of the instrument has been laid before and approved by a resolution of Senedd Cymru.
(5) In this Act, if a statutory instrument is “subject to the negative procedure” it is—
(a) where it contains regulations made by the Secretary of State, subject to annulment in pursuance of a resolution of either House of Parliament;
(b) where it contains regulations made by the Welsh Ministers, subject to annulment in pursuance of a resolution of Senedd Cymru.
(6) If a draft of a statutory instrument containing regulations under Part 6 would, apart from this subsection, be treated for the purposes of the standing orders of either House of Parliament as a hybrid instrument, it is to proceed in that House as if it were not a hybrid instrument.
(7) This section does not apply to regulations under section 124.
Propose a change123 Extent
(1) This Act extends to England and Wales only, subject to subsection (2).
(2) Section 23(5) extends to England and Wales, Scotland and Northern Ireland.
Propose a change124 Commencement
(1) This Part comes into force on the day on which this Act is passed.
(2) The following provisions come into force at the end of the period of two months beginning with the day on which this Act is passed—
(a) section 113 (regulation of remedies for rentcharge arrears);
(b) section 117 (recovery of legal costs etc through service charge);
(c) section 118 (repeal of section 125 of the BSA 2022);
(d) section 119 (higher-risk and relevant buildings: notifications in connection with insolvency).
(3) The other provisions of this Act come into force on such day or days as the Secretary of State may by regulations appoint.
(4) The Secretary of State may by regulations make transitional or saving provision in connection with the coming into force of any provision of this Act.
(5) The power to make regulations under this section includes power to make different provision for different purposes.
(6) Regulations under this section are to be made by statutory instrument.
Propose a change125 Short title
This Act may be cited as the Leasehold and Freehold Reform Act 2024.
Propose a changeSchedule 11 Part 4: consequential amendments
Section 70
Part 1 Amendments consequential on section 68
1 The LTA 1985 is amended in accordance with paragraphs 2 to 13.
2 In section 5 (information to be contained in rent books)—
(a) in subsection (3)—
(i) in the words before paragraph (a), for “Secretary of State” substitute “appropriate authority”;
(ii) in paragraph (b), omit the words from “which shall” to the end;
(b) after subsection (3) insert—
(4) A statutory instrument containing regulations under this section is subject to the negative procedure.
3 In section 10B(8) (regulations under section 10A), for the words from “may not be made” to the end substitute “is subject to the affirmative procedure”.
4 In section 20 (consultation requirements)—
(a) in subsection (4), for “Secretary of State” substitute “appropriate authority”;
(b) in subsection (5), for “Secretary of State” substitute “appropriate authority”.
5 In section 20ZA (consultation requirements: supplementary)—
(a) in subsection (3), for “Secretary of State” substitute “appropriate authority”;
(b) in subsection (4), for “Secretary of State” substitute “appropriate authority”;
(c) in subsection (7), omit the words from “which shall” to the end;
(d) after subsection (7) insert—
(8) A statutory instrument containing regulations under section 20 or this section is subject to the negative procedure.
6 In section 20E(4) (regulations under section 20D) for the words from “annulment” to the end substitute “the negative procedure”.
7 In section 20F(7) (limitation of service charges: excluded costs for higher risk buildings), for the words from “annulment” to the end substitute “the negative procedure”.
8 In section 29 (meaning of “recognised tenants’ association”)—
(a) in subsection (5), for “Secretary of State” substitute “appropriate authority”;
(b) in subsection (6)(b), omit the words from “which shall” to the end;
(c) after subsection (6) insert—
(7) A statutory instrument containing regulations under subsection (5) is subject to the negative procedure.
9 In section 29A (tenants’ associations: power to request information about tenants), in subsection (7), for the words from “annulment” to the end substitute “the negative procedure”.
10 In section 30D(9) (liability for building safety costs), for the words from “may not be made” to the end substitute “is subject to the affirmative procedure”.
11 In section 31 (reserve power to limit rents)—
(a) in subsection (1), for “Secretary of State” substitute “appropriate authority”;
(b) in subsection (4), omit the words from “which shall” to the end;
(c) after subsection (4) insert—
(5) A statutory instrument containing an order under this section is subject to the negative procedure.
12 In section 35 (application to Isles of Scilly)—
(a) in subsection (2), omit the words from “which shall” to the end;
(b) after subsection (2) insert—
(3) A statutory instrument containing an order under this section is subject to the negative procedure.
13 In paragraph 7(5) of the Schedule (right to notify insurers of possible claim), for “Secretary of State” substitute “appropriate authority”.
Propose a change