76 Transitional arrangements relating to introduction and termination of licensing
(1) Subsection (2) applies where—
(a) an order under section 55(3) which prescribes a particular description of HMOs comes into force; or
(b) a designation under section 56 comes into force in relation to HMOs of a particular description.
(2) This Part applies in relation to the occupation by persons or households of such HMOs on or after the coming into force of the order or designation even if their occupation began before, or in pursuance of a contract made before, it came into force.
This is subject to subsections (3) to (5).
(3) Subsection (4) applies where—
(a) an HMO which is licensed under this Part, or a part of such an HMO, is occupied by more households or persons than the number permitted by the licence; and
(b) the occupation of all or any of those households or persons began before, or in pursuance of a contract made before, the licence came into force.
(4) In proceedings against a person for an offence under section 72(2) it is a defence that at the material time he was taking all reasonable steps to try to reduce the number of households or persons occupying the house to the number permitted by the licence.
(5) Subsection (4) does not apply if the licence came into force immediately after a previous licence in respect of the same HMO unless the occupation in question began before, or in pursuance of a contract made before, the coming into force of the original licence.
(6) An order under section 270 may make provision as regards the licensing under this Part of HMOs—
(a) which are registered immediately before the appointed day under a scheme to which section 347 (schemes containing control provisions) or 348B (schemes containing special control provisions) of the Housing Act 1985 (c. 68) applies, or
(b) in respect of which applications for registration under such a scheme are then pending.
(7) In subsection (6) “the appointed day” means the day appointed for the coming into force of section 61.
In this Part—
(a) “HMO” means a house in multiple occupation as defined by sections 254 to 259, and
(b) references to an HMO include (where the context permits) any yard, garden, outhouses and appurtenances belonging to, or usually enjoyed with, it (or any part of it).
The following table shows where expressions used in this Part are defined or otherwise explained.
Expression | Provision of this Act
Anti-social behaviour | Section 57(5)
Appropriate national authority | Section 261(1)
Category 1 hazard | Section 2(1)
Category 2 hazard | Section 2(1)
District of local housing authority | Section 261(6)
HMO | Section 77
HMO to which this Part applies | Section 55(2)
Licence and licence holder | Section 61(6)
Licence (to occupy premises) | Section 262(9)
Local housing authority | Section 261(2) to (5)
Modifications | Section 250(7)
Occupier (and related expressions) | Section 262(6)
Person having control | Section 263(1) and (2) (and see also section 66(7))
Person having estate or interest | Section 262(8)
Person managing | Section 263(3)
Person involved in management | Section 263(5)
Residential property tribunal | Section 229
Tenant | Section 262(1) to (5).
(1) This Part provides for houses to be licensed by local housing authorities where—
(a) they are houses to which this Part applies (see subsection (2)), and
(b) they are required to be licensed under this Part (see section 85(1)).
(2) This Part applies to a house if—
(a) it is in an area that is for the time being designated under section 80 as subject to selective licensing, and
(b) the whole of it is occupied either—
(i) under a single tenancy or licence that is not an exempt tenancy or licence under subsection (3) or (4), or
(ii) under two or more tenancies or licences in respect of different dwellings contained in it, none of which is an exempt tenancy or licence under subsection (3) or (4).
(3) A tenancy or licence is an exempt tenancy or licence if—
(a) it is granted by a non-profit registered provider of social housing,
(b) it is granted by a profit-making registered provider of social housing in respect of social housing (within the meaning of Part 2 of the Housing and Regeneration Act 2008), or
(c) it is granted by a body which is registered as a social landlord under Part 1 of the Housing Act 1996 (c. 52).
(4) In addition, the appropriate national authority may by order provide for a tenancy or licence to be an exempt tenancy or licence—
(a) if it falls within any description of tenancy or licence specified in the order; or
(b) in any other circumstances so specified.
(5) Every local housing authority have the following general duties—
(a) to make such arrangements as are necessary to secure the effective implementation in their district of the licensing regime provided for by this Part; and
(b) to ensure that all applications for licences and other issues falling to be determined by them under this Part are determined within a reasonable time.
(1) A local housing authority may designate either—
(a) the area of their district, or
(b) an area in their district,
as subject to selective licensing, if the requirements of subsections (2) and (9) are met.
(2) The authority must consider that—
(a) the first or second set of general conditions mentioned in subsection (3) or (6), or
(b) any conditions specified in an order under subsection (7) as an additional set of conditions,
are satisfied in relation to the area.
(3) The first set of general conditions are—
(a) that the area is, or is likely to become, an area of low housing demand; and
(b) that making a designation will, when combined with other measures taken in the area by the local housing authority, or by other persons together with the local housing authority, contribute to the improvement of the social or economic conditions in the area.
(4) In deciding whether an area is, or is likely to become, an area of low housing demand a local housing authority must take into account (among other matters)—
(a) the value of residential premises in the area, in comparison to the value of similar premises in other areas which the authority consider to be comparable (whether in terms of types of housing, local amenities, availability of transport or otherwise);
(b) the turnover of occupiers of residential premises;
(c) the number of residential premises which are available to buy or rent and the length of time for which they remain unoccupied.
(5) The appropriate national authority may by order amend subsection (4) by adding new matters to those for the time being mentioned in that subsection.
(6) The second set of general conditions are—
(a) that the area is experiencing a significant and persistent problem caused by anti-social behaviour;
(b) that some or all of the private sector landlords who have let premises in the area (whether under leases or licences) are failing to take action to combat the problem that it would be appropriate for them to take; and
(c) that making a designation will, when combined with other measures taken in the area by the local housing authority, or by other persons together with the local housing authority, lead to a reduction in, or the elimination of, the problem.
“Private sector landlord” does not include a non-profit registered provider of social housing or a registered social landlord within the meaning of Part 1 of the Housing Act 1996 (c. 52).
(7) The appropriate national authority may by order provide for any conditions specified in the order to apply as an additional set of conditions for the purposes of subsection (2).
(8) The conditions that may be specified include, in particular, conditions intended to permit a local housing authority to make a designation for the purpose of dealing with one or more specified problems affecting persons occupying Part 3 houses in the area.
“Specified” means specified in an order under subsection (7).
(9) Before making a designation the local housing authority must—
(a) take reasonable steps to consult persons who are likely to be affected by the designation; and
(b) consider any representations made in accordance with the consultation and not withdrawn.
(10) Section 81 applies for the purposes of this section.
81 Designations under section 80: further considerations
(1) This section applies to the power of a local housing authority to make designations under section 80.
(2) The authority must ensure that any exercise of the power is consistent with the authority’s overall housing strategy.
(3) The authority must also seek to adopt a co-ordinated approach in connection with dealing with homelessness, empty properties and anti-social behaviour, both—
(a) as regards combining licensing under this Part with other courses of action available to them, and
(b) as regards combining such licensing with measures taken by other persons.
(4) The authority must not make a particular designation under section 80 unless—
(a) they have considered whether there are any other courses of action available to them (of whatever nature) that might provide an effective method of achieving the objective or objectives that the designation would be intended to achieve, and
(b) they consider that making the designation will significantly assist them to achieve the objective or objectives (whether or not they take any other course of action as well).
82 Designation needs confirmation or general approval to be effective
(1) A designation of an area as subject to selective licensing cannot come into force unless—
(a) it has been confirmed by the appropriate national authority; or
(b) it falls within a description of designations in relation to which that authority has given a general approval in accordance with subsection (6).
(2) The appropriate national authority may either confirm, or refuse to confirm, a designation as it considers appropriate.
(3) If the appropriate national authority confirms a designation, the designation comes into force on a date specified for this purpose by that authority.
(4) That date must be no earlier than three months after the date on which the designation is confirmed.
(5) A general approval may be given in relation to a description of designations framed by reference to any matters or circumstances.
(6) Accordingly a general approval may (in particular) be given in relation to—
(a) designations made by a specified local housing authority;
(b) designations made by a local housing authority falling within a specified description of such authorities;
(c) designations relating to Part 3 houses of a specified description.
“Specified” means specified by the appropriate national authority in the approval.
(7) If, by virtue of a general approval, a designation does not need to be confirmed before it comes into force, the designation comes into force on the date specified for this purpose in the designation.
(8) That date must be no earlier than three months after the date on which the designation is made.
(9) Where a designation comes into force, this Part applies in relation to the occupation by persons of houses in the area on or after the coming into force of the designation even if their occupation began before, or in pursuance of a contract made before, it came into force.
83 Notification requirements relating to designations
(1) This section applies to a designation—
(a) when it is confirmed under section 82, or
(b) (if it is not required to be so confirmed) when it is made by the local housing authority.
(2) As soon as the designation is confirmed or made, the authority must publish in the prescribed manner a notice stating—
(a) that the designation has been made,
(b) whether or not the designation was required to be confirmed and either that it has been confirmed or that a general approval under section 82 applied to it (giving details of the approval in question),
(c) the date on which the designation is to come into force, and
(d) any other information which may be prescribed.
(3) After publication of a notice under subsection (2), and for as long as the designation is in force, the local housing authority must make available to the public in accordance with any prescribed requirements—
(a) copies of the designation, and
(b) such information relating to the designation as is prescribed.
(4) In this section “prescribed” means prescribed by regulations made by the appropriate national authority.
84 Duration, review and revocation of designations
(1) Unless previously revoked under subsection (4), a designation ceases to have effect at the time that is specified for this purpose in the designation.
(2) That time must be no later than five years after the date on which the designation comes into force.
(3) A local housing authority must from time to time review the operation of any designation made by them.
(4) If following a review they consider it appropriate to do so, the authority may revoke the designation.
(5) If they do revoke the designation, the designation ceases to have effect on the date that is specified by the authority for this purpose.
(6) On revoking a designation, the authority must publish notice of the revocation in such manner as is prescribed by regulations made by the appropriate national authority.
(1) Every Part 3 house must be licensed under this Part unless—
(a) it is an HMO to which Part 2 applies (see section 55(2)), or
(b) a temporary exemption notice is in force in relation to it under section 86, or
(c) a management order is in force in relation to it under Chapter 1 or 2 of Part 4.
(2) A licence under this Part is a licence authorising occupation of the house concerned under one or more tenancies or licences within section 79(2)(b).
(3) Sections 87 to 90 deal with applications for licences, the granting or refusal of licences and the imposition of licence conditions.
(4) The local housing authority must take all reasonable steps to secure that applications for licences are made to them in respect of houses in their area which are required to be licensed under this Part but are not so licensed.
(5) In this Part, unless the context otherwise requires—
(a) references to a Part 3 house are to a house to which this Part applies (see section 79(2)),
(b) references to a licence are to a licence under this Part,
(c) references to a licence holder are to be read accordingly, and
(d) references to a house being (or not being) licensed under this Part are to its being (or not being) a house in respect of which a licence is in force under this Part.
(1) This section applies where a person having control of or managing a Part 3 house which is required to be licensed under this Part (see section 85(1)) but is not so licensed, notifies the local housing authority of his intention to take particular steps with a view to securing that the house is no longer required to be licensed.
(2) The authority may, if they think fit, serve on that person a notice under this section (“a temporary exemption notice”) in respect of the house.
(3) If a temporary exemption notice is served under this section, the house is (in accordance with section 85(1)) not required to be licensed under this Part during the period for which the notice is in force.
(4) A temporary exemption notice under this section is in force—
(a) for the period of 3 months beginning with the date on which it is served, or
(b) (in the case of a notice served by virtue of subsection (5)) for the period of 3 months after the date when the first notice ceases to be in force.
(5) If the authority—
(a) receive a further notification under subsection (1), and
(b) consider that there are exceptional circumstances that justify the service of a second temporary exemption notice in respect of the house that would take effect from the end of the period of 3 months applying to the first notice,
the authority may serve a second such notice on the person having control of or managing the house (but no further notice may be served by virtue of this subsection).
(6) If the authority decide not to serve a temporary exemption notice in response to a notification under subsection (1), they must without delay serve on the person concerned a notice informing him of—
(a) the decision,
(b) the reasons for it and the date on which it was made,
(c) the right to appeal against the decision under subsection (7), and
(d) the period within which an appeal may be made under that subsection.
(7) The person concerned may appeal to the appropriate tribunal against the decision within the period of 28 days beginning with the date specified under subsection (6) as the date on which it was made.
(8) Such an appeal—
(a) is to be by way of a re-hearing, but
(b) may be determined having regard to matters of which the authority were unaware.
(9) The tribunal—
(a) may confirm or reverse the decision of the authority, and
(b) if it reverses the decision, must direct the authority to issue a temporary exemption notice with effect from such date as the tribunal directs.
(1) An application for a licence must be made to the local housing authority.
(2) The application must be made in accordance with such requirements as the authority may specify.
(3) The authority may, in particular, require the application to be accompanied by a fee fixed by the authority.
(4) The power of the authority to specify requirements under this section is subject to any regulations made under subsection (5).
(5) The appropriate national authority may by regulations make provision about the making of applications under this section.
(6) Such regulations may, in particular—
(a) specify the manner and form in which applications are to be made;
(b) require the applicant to give copies of the application, or information about it, to particular persons;
(c) specify the information which is to be supplied in connection with applications;
(d) specify the maximum fees which may be charged (whether by specifying amounts or methods for calculating amounts);
(e) specify cases in which no fees are to be charged or fees are to be refunded.
(7) When fixing fees under this section, the local housing authority may (subject to any regulations made under subsection (5)) take into account—
(a) all costs incurred by the authority in carrying out their functions under this Part, and
(b) all costs incurred by them in carrying out their functions under Chapter 1 of Part 4 in relation to Part 3 houses (so far as they are not recoverable under or by virtue of any provision of that Chapter).
(1) Where an application in respect of a house is made to the local housing authority under section 87, the authority must either—
(a) grant a licence in accordance with subsection (2), or
(b) refuse to grant a licence.
(2) If the authority are satisfied as to the matters mentioned in subsection (3), they may grant a licence either—
(a) to the applicant, or
(b) to some other person, if both he and the applicant agree.
(3) The matters are—
(a) that the proposed licence holder—
(i) is a fit and proper person to be the licence holder, and
(ii) is, out of all the persons reasonably available to be the licence holder in respect of the house, the most appropriate person to be the licence holder;
(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;
(b) that the proposed manager of the house is either—
(i) the person having control of the house, or
(ii) a person who is an agent or employee of the person having control of the house;
(c) that the proposed manager of the house is a fit and proper person to be the manager of the house; and
(d) that the proposed management arrangements for the house are otherwise satisfactory.
(4) Section 89 applies for the purposes of this section.
89 Tests for fitness etc. and satisfactory management arrangements
(1) In deciding for the purposes of section 88(3)(a) or (c) whether a person (“P”) is a fit and proper person to be the licence holder or (as the case may be) the manager of the house, the local housing authority must have regard (among other things) to any evidence within subsection (2) or (3).
(2) Evidence is within this subsection if it shows that P has—
(a) committed any offence involving fraud or other dishonesty, or violence or drugs, or any offence listed in Schedule 3 to the Sexual Offences Act 2003 (c. 42) (offences attracting notification requirements);
(b) practised unlawful discrimination on grounds of sex, colour, race, ethnic or national origins or disability in, or in connection with, the carrying on of any business; or
(c) contravened any provision of the law relating to housing or of landlord and tenant law.
(3) Evidence is within this subsection if—
(a) it shows that any person associated or formerly associated with P (whether on a personal, work or other basis) has done any of the things set out in subsection (2)(a) to (c), and
(b) it appears to the authority that the evidence is relevant to the question whether P is a fit and proper person to be the licence holder or (as the case may be) the manager of the house.
(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.
(4) For the purposes of section 88(3)(a) the local housing authority must assume, unless the contrary is shown, that the person having control of the house is a more appropriate person to be the licence holder than a person not having control of it.
(5) In deciding for the purposes of section 88(3)(d) whether the proposed management arrangements for the house are otherwise satisfactory, the local housing authority must have regard (among other things) to the considerations mentioned in subsection (6).
(6) The considerations are—
(a) whether any person proposed to be involved in the management of the house has a sufficient level of competence to be so involved;
(b) whether any person proposed to be involved in the management of the house (other than the manager) is a fit and proper person to be so involved; and
(c) whether any proposed management structures and funding arrangements are suitable.
(7) Any reference in section 88(3)(b)(i) or (ii) or subsection (4) above to a person having control of the house, or to being a person of any other description, includes a reference to a person who is proposing to have control of the house, or (as the case may be) to be a person of that description, at the time when the licence would come into force.
(1) A licence may include such conditions as the local housing authority consider appropriate for regulating the management, use or occupation of the house concerned.
(2) Those conditions may, in particular, include (so far as appropriate in the circumstances)—
(a) conditions imposing restrictions or prohibitions on the use or occupation of particular parts of the house by persons occupying it;
(b) conditions requiring the taking of reasonable and practicable steps to prevent or reduce anti-social behaviour by persons occupying or visiting the house.
(3) A licence may also include—
(a) conditions requiring facilities and equipment to be made available in the house for the purpose of meeting standards prescribed for the purposes of this section by regulations made by the appropriate national authority;
(b) conditions requiring such facilities and equipment to be kept in repair and proper working order;
(c) conditions requiring, in the case of any works needed in order for any such facilities or equipment to be made available or to meet any such standards, that the works are carried out within such period or periods as may be specified in, or determined under, the licence.
(4) A licence must include the conditions required by Schedule 4.
(5) As regards the relationship between the authority’s power to impose conditions under this section and functions exercisable by them under or for the purposes of Part 1 (“Part 1 functions”)—
(a) the authority must proceed on the basis that, in general, they should seek to identify, remove or reduce category 1 or category 2 hazards in the house by the exercise of Part 1 functions and not by means of licence conditions;
(b) this does not, however, prevent the authority from imposing (in accordance with subsection (3)) licence conditions relating to the installation or maintenance of facilities or equipment within subsection (3)(a) above, even if the same result could be achieved by the exercise of Part 1 functions;
(c) the fact that licence conditions are imposed for a particular purpose that could be achieved by the exercise of Part 1 functions does not affect the way in which Part 1 functions can be subsequently exercised by the authority.
(6) A licence may not include conditions imposing restrictions or obligations on a particular person other than the licence holder unless that person has consented to the imposition of the restrictions or obligations.
(7) A licence may not include conditions requiring (or intended to secure) any alteration in the terms of any tenancy or licence under which any person occupies the house.
(1) A licence may not relate to more than one Part 3 house.
(2) A licence may be granted before the time when it is required by virtue of this Part but, if so, the licence cannot come into force until that time.
(3) A licence—
(a) comes into force at the time that is specified in or determined under the licence for this purpose, and
(b) unless previously terminated by subsection (7) or revoked under section 93 or 93A , continues in force for the period that is so specified or determined.
(4) That period must not end more than 5 years after—
(a) the date on which the licence was granted, or
(b) if the licence was granted as mentioned in subsection (2), the date when the licence comes into force.
(5) Subsection (3)(b) applies even if, at any time during that period, the house concerned subsequently ceases to be a Part 3 house or becomes an HMO to which Part 2 applies (see section 55(2)).
(6) A licence may not be transferred to another person.
(7) If the holder of the licence dies while the licence is in force, the licence ceases to be in force on his death.
(8) However, during the period of 3 months beginning with the date of the licence holder’s death, the house is to be treated for the purposes of this Part as if on that date a temporary exemption notice had been served in respect of the house under section 86.
(9) If, at any time during that period (“the initial period”), the personal representatives of the licence holder request the local housing authority to do so, the authority may serve on them a notice which, during the period of 3 months after the date on which the initial period ends, has the same effect as a temporary exemption notice under section 86.
(10) Subsections (6) to (8) of section 86 apply (with any necessary modifications) in relation to a decision by the authority not to serve such a notice as they apply in relation to a decision not to serve a temporary exemption notice.
(1) The local housing authority may vary a licence—
(a) if they do so with the agreement of the licence holder, or
(b) if they consider that there has been a change of circumstances since the time when the licence was granted.
For this purpose “change of circumstances” includes any discovery of new information.
(2) A variation made with the agreement of the licence holder takes effect at the time when it is made.
(3) Otherwise, a variation does not come into force until such time, if any, as is the operative time for the purposes of this subsection under paragraph 35 of Schedule 5 (time when period for appealing expires without an appeal being made or when decision to vary is confirmed on appeal).
(4) The power to vary a licence under this section is exercisable by the authority either—
(a) on an application made by the licence holder or a relevant person, or
(b) on the authority’s own initiative.
(5) In subsection (4) “relevant person” means any person (other than the licence holder)—
(a) who has an estate or interest in the house concerned (but is not a tenant under a lease with an unexpired term of 3 years or less), or
(b) who is a person managing or having control of the house (and does not fall within paragraph (a)), or
(c) on whom any restriction or obligation is imposed by the licence in accordance with section 90(6).
(1) The local housing authority may revoke a licence—
(a) if they do so with the agreement of the licence holder,
(b) in any of the cases mentioned in subsection (2) (circumstances relating to licence holder or other person),
(c) in any of the cases mentioned in subsection (3) (circumstances relating to house concerned), or
(d) in any other circumstances prescribed by regulations made by the appropriate national authority.
(2) The cases referred to in subsection (1)(b) are as follows—
(a) where the authority consider that the licence holder or any other person has committed a serious breach of a condition of the licence or repeated breaches of such a condition;
(b) where the authority no longer consider that the licence holder is a fit and proper person to be the licence holder; and
(c) where the authority no longer consider that the management of the house is being carried on by persons who are in each case fit and proper persons to be involved in its management.
Section 89(1) applies in relation to paragraph (b) or (c) above as it applies in relation to section 88(3)(a) or (c).
(3) The cases referred to in subsection (1)(c) are as follows—
(a) where the house to which the licence relates ceases to be a Part 3 house;
(b) where a licence has been granted under Part 2 in respect of the house;
(c) where the authority consider at any time that, were the licence to expire at that time, they would, for a particular reason relating to the structure of the house, refuse to grant a new licence to the licence holder on similar terms in respect of it.
(4) A revocation made with the agreement of the licence holder takes effect at the time when it is made.
(5) Otherwise, a revocation does not come into force until such time, if any, as is the operative time for the purposes of this subsection under paragraph 35 of Schedule 5 (time when period for appealing expires without an appeal being made or when decision to vary is confirmed on appeal).
This is subject to subsection (6).
(6) A revocation made in a case within subsection (3)(b) cannot come into force before such time as would be the operative time for the purposes of subsection (5) under paragraph 35 of Schedule 5 on the assumption that paragraph 35 applied—
(a) to an appeal against the Part 2 licence under paragraph 31 of the Schedule as it applies to an appeal under paragraph 32 of the Schedule, and
(b) to the period for appealing against the Part 2 licence mentioned in paragraph 33(1) of the Schedule as it applies to the period mentioned in paragraph 33(2) of the Schedule.
(7) The power to revoke a licence under this section is exercisable by the authority either—
(a) on an application made by the licence holder or a relevant person, or
(b) on the authority’s own initiative.
(8) In subsection (7) “relevant person” means any person (other than the licence holder)—
(a) who has an estate or interest in the house concerned (but is not a tenant under a lease with an unexpired term of 3 years or less), or
(b) who is a person managing or having control of the house (and does not fall within paragraph (a)), or
(c) on whom any restriction or obligation is imposed by the licence in accordance with section 90(6).
(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.
94 Procedural requirements and appeals against licence decisions
Schedule 5 (which deals with procedural requirements relating to the grant, refusal, variation or revocation of licences and with appeals against licence decisions) has effect for the purposes of this Part.
95 Offences in relation to licensing of houses under this Part
(1) If a house is required to be licensed under this Part (see section 85(1)) but is not so licensed, an offence is committed by—
(a) any person within subsection (1A), and
(b) any person who as landlord under a tenancy or licensor under a licence to occupy has an estate or interest in, or a right in relation to, the house that is superior (whether directly or indirectly) to the estate, interest or right of any person within subsection (1A).
(1A) The following are within this subsection—
(a) any person having control of or managing the house;
(b) any person who is the landlord or licensor in relation to a person occupying the house under a tenancy or licence.
(2) A person commits an offence if—
(a) he is a licence holder or a person on whom restrictions or obligations under a licence are imposed in accordance with section 90(6), and
(b) he fails to comply with any condition of the licence.
(3) In proceedings against a person for an offence under subsection (1) it is a defence that, at the material time—
(a) a notification had been duly given in respect of the house under section 62(1) or 86(1), or
(b) an application for a licence had been duly made in respect of the house under section 87,
and that notification or application was still effective (see subsection (7)).
(3A) In proceedings against a person for an offence under subsection (1)(a) it is a defence for them to prove that they had a reasonable excuse—
(a) for having control of or managing the house, or
(b) for being the landlord or licensor in relation to a person occupying the house under a tenancy or licence,
in circumstances in which the house was required to be licensed under this Part but was not so licensed.
(3B) In proceedings against a person for an offence under subsection (1)(b) it is a defence for them to prove that they—
(a) did not know, and had a reasonable excuse for not knowing, that the house was one to which this Part applies,
(b) took all reasonably practicable steps to ensure that the house was licensed under this Part, or
(c) had some other reasonable excuse for failing to ensure that the house was so licensed.
(3C) For the purposes of subsection (3B), a term in the tenancy agreement or licence to occupy relating to the occupation of the house does not on its own constitute a defence under any of paragraphs (a) to (c) of that subsection.
(4) In proceedings against a person for an offence under subsection (2) it is a defence that he had a reasonable excuse for failing to comply with the condition.
(5) A person who commits an offence under subsection (1) is liable on summary conviction to a fine.
(6) A person who commits an offence under subsection (2) is liable on summary conviction to a fine not exceeding level 5 on the standard scale.
(6A) See also section 249A (financial penalties as alternative to prosecution for certain housing offences in England).
(6B) If a local housing authority has imposed a financial penalty on a person under section 249A in respect of conduct amounting to an offence under this section the person may not be convicted of an offence under this section in respect of the conduct.
(7) For the purposes of subsection (3) a notification or application is “effective” at a particular time if at that time it has not been withdrawn, and either—
(a) the authority have not decided whether to serve a temporary exemption notice, or (as the case may be) grant a licence, in pursuance of the notification or application, or
(b) if they have decided not to do so, one of the conditions set out in subsection (8) is met.
(8) The conditions are—
(a) that the period for appealing against the decision of the authority not to serve or grant such a notice or licence (or against any relevant decision of the appropriate tribunal) has not expired, or
(b) that an appeal has been brought against the authority’s decision (or against any relevant decision of such a tribunal) and the appeal has not been determined or withdrawn.
(9) In subsection (8) “relevant decision” means a decision which is given on an appeal to the tribunal and confirms the authority’s decision (with or without variation).
96 Other consequences of operating unlicensed houses: rent repayment orders
(1) For the purposes of this section a house is an “unlicensed house” if—
(a) it is required to be licensed under this Part but is not so licensed, and
(b) neither of the conditions in subsection (2) is satisfied.
(2) The conditions are—
(a) that a notification has been duly given in respect of the house under section 62(1) or 86(1) and that notification is still effective (as defined by section 95(7));
(b) that an application for a licence has been duly made in respect of the house under section 87 and that application is still effective (as so defined).
(3) No rule of law relating to the validity or enforceability of contracts in circumstances involving illegality is to affect the validity or enforceability of—
(a) any provision requiring the payment of rent or the making of any other periodical payment in connection with any tenancy or licence of the whole or a part of an unlicensed house, or
(b) any other provision of such a tenancy or licence.
(4) But amounts paid in respect of rent or other periodical payments payable in connection with such a tenancy or licence may be recovered in accordance with subsection (5) and section 97 (in the case of a house in Wales) or in accordance with Chapter 4 of Part 2 of the Housing and Planning Act 2016 (in the case of a house in England) .
(5) If—
(a) an application in respect of a house in Wales is made to the appropriate tribunal by the local housing authority or an occupier of the whole or part of the house, and
(b) the tribunal is satisfied as to the matters mentioned in subsection (6) or (8),
the tribunal may make an order (a “rent repayment order”) requiring the appropriate person to pay to the applicant such amount in respect of the relevant award or awards of universal credit or the housing benefit paid as mentioned in subsection (6)(b), or (as the case may be) the periodical payments paid as mentioned in subsection (8)(b), as is specified in the order (see section 97(2) to (8)).
(6) If the application is made by the local housing authority, the tribunal must be satisfied as to the following matters—
(a) that, at any time within the period of 12 months ending with the date of the notice of intended proceedings required by subsection (7), the appropriate person has committed an offence under section 95(1) in relation to the house (whether or not he has been charged or convicted),
(b) that—
(i) one or more relevant awards of universal credit have been paid (to any person); or
(ii) housing benefit has been paid (to any person) in respect of periodical payments payable in connection with the occupation of the whole or any part or parts of the house,
during any period during which it appears to the tribunal that such an offence was being committed,
(c) that the requirements of subsection (7) have been complied with in relation to the application.
(6A) In subsection (6)(b)(i), “relevant award of universal credit” means an award of universal credit the calculation of which included an amount under section 11 of the Welfare Reform Act 2012, calculated in accordance with Schedule 4 to the Universal Credit Regulations 2013 (housing costs element for renters) ( S.I. 2013/376 ) or any corresponding provision replacing that Schedule, in respect of periodical payments payable in connection with the occupation of the whole or any part or parts of the house.
(7) Those requirements are as follows—
(a) the authority must have served on the appropriate person a notice (a “notice of intended proceedings”)—
(i) informing him that the authority are proposing to make an application under subsection (5),
(ii) setting out the reasons why they propose to do so,
(iii) stating the amount that they will seek to recover under that subsection and how that amount is calculated, and
(iv) inviting him to make representations to them within a period specified in the notice of not less than 28 days;
(b) that period must have expired; and
(c) the authority must have considered any representations made to them within that period by the appropriate person.
(8) If the application is made by an occupier of the whole or part of the house, the tribunal must be satisfied as to the following matters—
(a) that the appropriate person has been convicted of an offence under section 95(1) in relation to the house, or has been required by a rent repayment order to make a payment in respect of
(i) one or more relevant awards of universal credit, or
(ii) housing benefit paid in connection with occupation of the whole or any part or parts of the house,
(b) that the occupier paid, to a person having control of or managing the house, periodical payments in respect of occupation of the whole or part of the house during any period during which it appears to the tribunal that such an offence was being committed in relation to the house, and
(c) that the application is made within the period of 12 months beginning with—
(i) the date of the conviction or order, or
(ii) if such a conviction was followed by such an order (or vice versa), the date of the later of them.
(9) Where a local housing authority serve a notice of intended proceedings on any person under this section, they must ensure—
(a) that a copy of the notice is received by the department of the authority responsible for administering the housing benefit to which the proceedings would relate; and
(b) that that department is subsequently kept informed of any matters relating to the proceedings that are likely to be of interest to it in connection with the administration of housing benefit.
(10) In this section—
“ the appropriate person ”, in relation to any payment of universal credit or housing benefit or periodical payment payable in connection with occupation of the whole or a part of a house, means the person who at the time of the payment was entitled to receive on his own account periodical payments payable in connection with such occupation;
“ housing benefit ” means housing benefit provided by virtue of a scheme under section 123 of the Social Security Contributions and Benefits Act 1992 (c. 4);
“ occupier ”, in relation to any periodical payment, means a person who was an occupier at the time of the payment, whether under a tenancy or licence (and “ occupation ” has a corresponding meaning);
“periodical payments” means—
payments in respect of which an amount under section 11 of the Welfare Reform Act 2012 may be included in the calculation of an award of universal credit, as referred to in paragraph 3 of Schedule 4 to the Universal Credit Regulations 2013 (“relevant payments”) ( S.I. 2013/376 ) or any corresponding provision replacing that paragraph; and
periodical payments in respect of which housing benefit may be paid by virtue of regulation 12 of the Housing Benefit Regulations 2006 or any corresponding provision replacing that regulation;
(11) For the purposes of this section an amount which—
(a) is not actually paid by an occupier but is used by him to discharge the whole or part of his liability in respect of a periodical payment (for example, by offsetting the amount against any such liability), and
(b) is not an amount of universal credit or housing benefit,
is to be regarded as an amount paid by the occupier in respect of that periodical payment.
(1) This section applies in relation to orders made by residential property tribunals under section 96(5).
(2) Where, on an application by the local housing authority, the tribunal is satisfied—
(a) that a person has been convicted of an offence under section 95(1) in relation to the house, and
(b) that—
(i) one or more relevant awards of universal credit (as defined in section 96(6A)) were paid (whether or not to the appropriate person), or
(ii) housing benefit was paid (whether or not to the appropriate person) in respect of periodical payments payable in connection with occupation of the whole or any part or parts of the house,
during any period during which it appears to the tribunal that such an offence was being committed in relation to the house,
the tribunal must make a rent repayment order requiring the appropriate person to pay to the authority the amount mentioned in subsection (2A).
This is subject to subsections (3), (4) and (8).
(2A) The amount referred to in subsection (2) is—
(a) an amount equal to—
(i) where one relevant award of universal credit was paid as mentioned in subsection (2)(b)(i), the amount included in the calculation of that award under section 11 of the Welfare Reform Act 2012, calculated in accordance with Schedule 4 to the Universal Credit Regulations 2013 (housing costs element for renters) ( S.I. 2013/376 ) or any corresponding provision replacing that Schedule, or the amount of the award if less; or
(ii) if more than one such award was paid as mentioned in subsection (2)(b)(i), the sum of the amounts included in the calculation of those awards as referred to in sub-paragraph (i), or the sum of the amounts of those awards if less, or
(b) an amount equal to the total amount of housing benefit paid as mentioned in subsection (2)(b)(ii),
(as the case may be).
(3) If the total of the amounts received by the appropriate person in respect of periodical payments payable as mentioned in paragraph (b) of subsection (2) (“the rent total”) is less than the amount mentioned in subsection (2A), the amount required to be paid by virtue of a rent repayment order made in accordance with that subsection is limited to the rent total.
(4) A rent repayment order made in accordance with subsection (2) may not require the payment of any amount which the tribunal is satisfied that, by reason of any exceptional circumstances, it would be unreasonable for that person to be required to pay.
(5) In a case where subsection (2) does not apply, the amount required to be paid by virtue of a rent repayment order under section 96(5) is to be such amount as the tribunal considers reasonable in the circumstances.
This is subject to subsections (6) to (8).
(6) In such a case the tribunal must, in particular, take into account the following matters—
(a) the total amount of relevant payments paid in connection with occupation of the house during any period during which it appears to the tribunal that an offence was being committed by the appropriate person in relation to the house under section 95(1);
(b) the extent to which that total amount—
(i) consisted of, or derived from, payments of relevant awards of universal credit or housing benefit, and
(ii) was actually received by the appropriate person;
(c) whether the appropriate person has at any time been convicted of an offence under section 95(1) in relation to the house;
(d) the conduct and financial circumstances of the appropriate person; and
(e) where the application is made by an occupier, the conduct of the occupier.
(7) In subsection (6) “relevant payments” means—
(a) in relation to an application by a local housing authority, payments of relevant awards of universal credit housing benefit or periodical payments payable by occupiers;
(b) in relation to an application by an occupier, periodical payments payable by the occupier, less
(i) where one or more relevant awards of relevant universal credit were payable during the period in question, the amount mentioned in subsection (2A)(a) in respect of the award or awards that related to the occupation of the part of the HMO occupied by him during that period; or
(ii) any amount of housing benefit payable in respect of the occupation of the part of the HMO occupied by him during the period in question .
(8) A rent repayment order may not require the payment of an amount which—
(a) (where the application is made by a local housing authority) is in respect of any time falling outside the period of 12 months mentioned in section 96(6)(a); or
(b) (where the application is made by an occupier) is in respect of any time falling outside the period of 12 months ending with the date of the occupier’s application under section 96(5);
and the period to be taken into account under subsection (6)(a) above is restricted accordingly.
(9) Any amount payable to a local housing authority under a rent repayment order—
(a) does not, when recovered by the authority, constitute an amount of universal credit or housing benefit recovered by them, and
(b) is, until recovered by them, a legal charge on the house which is a local land charge.
(10) For the purpose of enforcing that charge the authority have the same powers and remedies under the Law of Property Act 1925 (c. 20) and otherwise as if they were mortgagees by deed having powers of sale and lease, and of accepting surrenders of leases and of appointing a receiver.
(11) The power of appointing a receiver is exercisable at any time after the end of the period of one month beginning with the date on which the charge takes effect.
(12) If the authority subsequently grant a licence under Part 2 or this Part in respect of the house to the appropriate person or any person acting on his behalf, the conditions contained in the licence may include a condition requiring the licence holder—
(a) to pay to the authority any amount payable to them under the rent repayment order and not so far recovered by them; and
(b) to do so in such instalments as are specified in the licence.
(13) If the authority subsequently make a management order under Chapter 1 of Part 4 in respect of the house, the order may contain such provisions as the authority consider appropriate for the recovery of any amount payable to them under the rent repayment order and not so far recovered by them.
(14) Any amount payable to an occupier by virtue of a rent repayment order is recoverable by the occupier as a debt due to him from the appropriate person.
(15) The appropriate national authority may by regulations make such provision as it considers appropriate for supplementing the provisions of this section and section 96, and in particular—
(a) for securing that persons are not unfairly prejudiced by rent repayment orders (whether in cases where there have been over-payments of universal credit or housing benefit or otherwise);
(b) for requiring or authorising amounts received by local housing authorities by virtue of rent repayment orders to be dealt with in such manner as is specified in the regulations.
(16) Section 96(10) and (11) apply for the purposes of this section as they apply for the purposes of section 96.
98 Other consequences of operating unlicensed houses: restriction on terminating tenancies (England)
(1) No section 21 notice may be given in relation to a shorthold tenancy of the whole or part of an unlicensed house so long as it remains such a house.
(2) In this section—
a “section 21 notice” means a notice under section 21(1)(b) or (4)(a) of the Housing Act 1988 (c. 50) (recovery of possession on termination of shorthold tenancy);
a “shorthold tenancy” means an assured shorthold tenancy within the meaning of Chapter 2 of Part 1 of that Act;
“unlicensed house” has the same meaning as in section 96 of this Act.
98A Other consequences of operating unlicensed houses: restriction on terminating tenancies (Wales)
(1) No section 173 notice, no section 186 notice, no paragraph 25B of Schedule 12 notice and no section 194 notice may be given in relation to a standard contract of the whole or part of an unlicensed house as long as it remains such a house.
(2) In this section—
“2016 Act” means the Renting Homes (Wales) Act 2016 (anaw 1);
“paragraph 25B of Schedule 12 notice” means a notice under paragraph 25B of Schedule 12 to the 2016 Act (termination of contract by landlord);
“section 173 notice” means a notice under section 173 of the 2016 Act (landlord’s notice);
“section 186 notice” means a notice under section 186 of the 2016 Act (landlord’s notice in connection with end of term of contract within Schedule 9B);
“section 194 notice” means a notice under section 194 of the 2016 Act (landlord’s break clause);
“standard contract” has the same meaning as in the 2016 Act (see section 8 of the 2016 Act);
“unlicensed house” has the same meaning as in section 96 of this Act.
In this Part—
“dwelling” means a building or part of a building occupied or intended to be occupied as a separate dwelling;
“house” means a building or part of a building consisting of one or more dwellings;
and references to a house include (where the context permits) any yard, garden, outhouses and appurtenances belonging to, or usually enjoyed with, it (or any part of it).
The following table shows where expressions used in this Part are defined or otherwise explained.
Expression | Provision of this Act
Anti-social behaviour | Section 57(5)
Appropriate national authority | Section 261(1)
Category 1 hazard | Section 2(1)
Category 2 hazard | Section 2(1)
District of local housing authority | Section 261(6)
Dwelling | Section 99
House | Section 99
Licence and licence holder | Section 85(5)
Licence (to occupy premises) | Section 262(9)
Local housing authority | Section 261(2) to (5)
Occupier (and related expressions) | Section 262(6)
Part 3 house | Section 85(5), together with section 79(2)
Person having control | Section 263(1) and (2) (and see also section 89(7))
Person having estate or interest | Section 262(8)
Person managing | Section 263(3)
Person involved in management | Section 263(5)
Residential property tribunal | Section 229
Tenant | Section 262(1) to (5).
101 Interim and final management orders: introductory
(1) This Chapter deals with the making by a local housing authority of—
(a) an interim management order (see section 102), or
(b) a final management order (see section 113),
in respect of an HMO or a Part 3 house or property let in breach of a banning order under section 16 of the Housing and Planning Act 2016.
(2) Section 103 deals with the making of an interim management order in respect of a house to which that section applies.
(3) An interim management order is an order (expiring not more than 12 months after it is made) which is made for the purpose of securing that the following steps are taken in relation to the house—
(a) any immediate steps which the authority consider necessary to protect 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, and
(b) any other steps which the authority think appropriate with a view to the proper management of the house pending ... the making of a final management order in respect of it (or, if appropriate, the revocation of the interim management order).
(4) A final management order is an order (expiring not more than 5 years after it is made) which is made for the purpose of securing the proper management of the house on a long-term basis in accordance with a management scheme contained in the order.
(5) In this Chapter any reference to “the house”, in relation to an interim or final management order (other than an order under section 102(7) or (7A)), is a reference to the HMO or Part 3 house to which the order relates.
(6) Subsection (5) has effect subject to sections 102(8) and 113(7) (exclusion of part occupied by resident landlord).
(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.
(7) In this Chapter “third party”, in relation to a house, means any person who has an estate or interest in the house (other than an immediate landlord and any person who is a tenant under a lease granted under section 107(3)(c) or 116(3)(c)).
(1) A local housing authority—
(a) are under a duty to make an interim management order in respect of a house in a case within subsection (2) or (3), and
(b) have power to make an interim management order in respect of a house in a case within subsection (4) , (7) or (7A).
(2) The authority must make an interim management order in respect of a house if—
(a) it is an HMO or a Part 3 house which is required to be licensed under Part 2 or Part 3 (see section 61(1) or 85(1)) but is not so licensed, and
(b) they consider either—
(i) that there is no reasonable prospect of its being so licensed in the near future, or
(ii) that the health and safety condition is satisfied (see section 104).
(3) The authority must make an interim management order in respect of a house if—
(a) it is an HMO or a Part 3 house which is required to be licensed under Part 2 or Part 3 and is so licensed,
(b) they have revoked the licence concerned but the revocation is not yet in force, and
(c) they consider either—
(i) that, on the revocation coming into force, there will be no reasonable prospect of the house being so licensed in the near future, or
(ii) that, on the revocation coming into force, the health and safety condition will be satisfied (see section 104).
(4) The authority may make an interim management order in respect of a house if—
(a) it is an HMO other than one that is required to be licensed under Part 2, and
(b) on an application by the authority to the appropriate tribunal, the tribunal by order authorises them to make such an order, either in the terms of a draft order submitted by them or in those terms as varied by the tribunal;
and the authority may make such an order despite any pending appeal against the order of the tribunal (but this is without prejudice to any order that may be made on the disposal of any such appeal).
(5) The tribunal may only authorise the authority to make an interim management order under subsection (4) if it considers that the health and safety condition is satisfied (see section 104).
(6) In determining whether to authorise the authority to make an interim management order in respect of an HMO under subsection (4), the tribunal must have regard to the extent to which any applicable code of practice approved under section 233 has been complied with in respect of the HMO in the past.
(7) The authority may make an interim management order in respect of a house if—
(a) it is a house to which section 103 (special interim management orders) applies, and
(b) on an application by the authority to a residential property tribunal, the tribunal by order authorises them to make such an order, either in the terms of a draft order submitted by them or in those terms as varied by the tribunal;
and the authority may make such an order despite any pending appeal against the order of the tribunal (but this is without prejudice to any order that may be made on the disposal of any such appeal).
Subsections (2) to (6) of section 103 apply in relation to the power of the appropriate tribunal to authorise the making of an interim management order under this subsection.
(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.
(8) The authority may make an interim management order which is expressed not to apply to a part of the house that is occupied by a person who has an estate or interest in the whole of the house.
In relation to such an order, a reference in this Chapter to “the house” does not include the part so excluded (unless the context requires otherwise, such as where the reference is to the house as an HMO or a Part 3 house).
(9) Nothing in this section requires or authorises the making of an interim management order under subsection (2), (3), (4) or (7) in respect of a house if—
(a) an interim management order has been previously made in respect of it, and
(b) the authority have not exercised any relevant function in respect of the house at any time after the making of the interim management order.
(10) In subsection (9) “relevant function” means the function of—
(a) granting a licence under Part 2 or 3,
(b) serving a temporary exemption notice under section 62 or section 86, or
(c) making a final management order under section 113.
(1) This section applies to a house if the whole of it is occupied either—
(a) under a single tenancy or licence that is not an exempt tenancy or licence under section 79(3) or (4), or
(b) under two or more tenancies or licences in respect of different dwellings contained in it, none of which is an exempt tenancy or licence under section 79(3) or (4).
(2) The appropriate tribunal may only authorise the authority to make an interim management order in respect of such a house under section 102(7) if it considers that both of the following conditions are satisfied.
(3) The first condition is that the circumstances relating to the house fall within any category of circumstances prescribed for the purposes of this subsection by an order under subsection (5).
(4) The second condition is that the making of the order is necessary for the purpose of protecting the health, safety or welfare of persons occupying, visiting or otherwise engaging in lawful activities in the vicinity of the house.
(5) The appropriate national authority may by order—
(a) prescribe categories of circumstances for the purposes of subsection (3),
(b) provide for any of the provisions of this Act to apply in relation to houses to which this section applies, or interim or final management orders made in respect of them, with any modifications specified in the order.
(6) The categories prescribed by an order under subsection (5) are to reflect one or more of the following—
(a) the first or second set of general conditions mentioned in subsection (3) or (6) of section 80, or
(b) any additional set of conditions specified under subsection (7) of that section,
but (in each case) with such modifications as the appropriate national authority considers appropriate to adapt them to the circumstances of a single house.
(7) In this section “house” has the same meaning as in Part 3 (see section 99).
(8) In this Chapter—
(a) any reference to “the house”, in relation to an interim management order under section 102(7), is a reference to the house to which the order relates, and
(b) any such reference includes (where the context permits) a reference to any yard, garden, outhouses and appurtenances belonging to, or usually enjoyed with, it (or any part of it).
(1) This section explains what “the health and safety condition” is for the purposes of section 102.
(2) The health and safety condition is that the making of an interim management order is necessary for the purpose of protecting 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.
(3) A threat to evict persons occupying a house in order to avoid the house being required to be licensed under Part 2 may constitute a threat to the welfare of those persons for the purposes of subsection (2).
This does not affect the generality of that subsection.
(4) The health and safety condition is not to be regarded as satisfied for the purposes of section 102(2)(b)(ii) or (3)(c)(ii) where both of the conditions in subsections (5) and (6) are satisfied.
(5) The first condition is that the local housing authority either—
(a) (in a case within section 102(2)(b)(ii)) are required by section 5 (general duty to take enforcement action in respect of category 1 hazards) to take a course of action within subsection (2) of that section in relation to the house, or
(b) (in a case within section 102(3)(c)(ii)) consider that on the revocation coming into force they will be required to take such a course of action.
(6) The second condition is that the local housing authority consider that the health, safety or welfare of the persons in question would be adequately protected by taking that course of action.
(1) This section deals with the time when an interim management order comes into force or ceases to have effect.
(2) The order comes into force when it is made, unless it is made under section 102(3).
(3) If the order is made under section 102(3), it comes into force when the revocation of the licence comes into force.
(4) The order ceases to have effect at the end of the period of 12 months beginning with the date on which it is made, unless it ceases to have effect at some other time as mentioned below.
(5) If the order provides that it is to cease to have effect on a date falling before the end of that period, it accordingly ceases to have effect on that date.
(6) If the order is made under section 102(3)—
(a) it must include a provision for determining the date on which it will cease to have effect, and
(b) it accordingly ceases to have effect on the date so determined.
(7) That date must be no later than 12 months after the date on which the order comes into force.
(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).
(8) Subsections (9) to (10) apply where—
(a) a final management order (“the FMO”) has been made under section 113 so as to replace the order (“the IMO”), but
(b) the FMO has not come into force because of an appeal to the appropriate tribunal under paragraph 24 of Schedule 6 against the making of the FMO.
(9) If—
(a) the house would (but for the IMO being in force) be required to be licensed under Part 2 or 3 of this Act (see section 61(1) or 85(1)), and
(b) the date on which—
(i) the FMO,
(ii) any licence under Part 2 or 3, or
(iii) 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.
(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.
(10) If, on the application of the authority, the tribunal makes an order providing for the IMO to continue in force, pending the disposal of the appeal, until a date later than that on which the IMO would cease to have effect apart from this subsection, the IMO accordingly continues in force until that later date.
(11) This section has effect subject to sections 111 and 112 (variation or revocation of orders by authority) and to the power of revocation exercisable by the appropriate tribunal on an appeal made under paragraph 24 or 28 of Schedule 6.
106 Local housing authority’s duties once interim management order in force
(1) A local housing authority who have made an interim management order in respect of a house must comply with the following provisions as soon as practicable after the order has come into force.
(2) The authority must first take any immediate steps which they consider to be necessary for the purpose of protecting 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.
(3) The authority must also take such other steps as they consider appropriate with a view to the proper management of the house pending—
(a) the grant of a licence or the making of a final management order in respect of the house as mentioned in subsection (4) or (5), or
(b) the revocation of the interim management order as mentioned in subsection (5).
(4) If the house would (but for the order being in force) be required to be licensed under Part 2 or 3 of this Act (see section 61(1) or 85(1)), the authority must, after considering all the circumstances of the case, decide to take one of the following courses of action—
(a) to grant a licence under that Part in respect of the house, or
(b) to make a final management order in respect of it under section 113(1).
(5) If subsection (4) does not apply to the house, the authority must, after considering all the circumstances of the case, decide to take one of the following courses of action—
(a) to make a final management order in respect of the house under section 113(3), or
(b) to revoke the order under section 112 without taking any further action.
(6) In the following provisions, namely—
(a) subsections (3) and (4), and
(b) section 101(3)(b),
the reference to the grant of a licence under Part 2 or 3 in respect of the house includes a reference to serving a temporary exemption notice under section 62 or section 86 in respect of it (whether or not a notification is given under subsection (1) of that section).
(7) For the avoidance of doubt, the authority’s duty under subsection (3) includes taking such steps as are necessary to ensure that, while the order is in force, reasonable provision is made for insurance of the house against destruction or damage by fire or other causes.
(1) This section applies while an interim management order is in force in relation to a house.
(2) The rights and powers conferred by subsection (3) are exercisable by the authority in performing their duties under section 106(1) to (3) in respect of the house.
(3) The authority—
(a) have the right to possession of the house (subject to the rights of existing occupiers preserved by section 124(3));
(b) have the right to do (and authorise a manager or other person to do) in relation to the house anything which a person having an estate or interest in the house would (but for the order) be entitled to do;
(c) may create one or more of the following—
(i) an interest in the house which, as far as possible, has all the incidents of a leasehold, or
(ii) a right in the nature of a licence to occupy part of the house.
(4) But the authority may not under subsection (3)(c) create any interest or right in the nature of a lease or licence unless consent in writing has been given by the person who (but for the order) would have power to create the lease or licence in question.
(5) The authority—
(a) do not under this section acquire any estate or interest in the house, and
(b) accordingly are not entitled by virtue of this section to sell, lease, charge or make any other disposition of any such estate or interest;
but, where the immediate landlord of the house or part of it (within the meaning of section 109) is a lessee under a lease of the house or part, the authority is to be treated (subject to paragraph (a)) as if they were the lessee instead.
(6) Any enactment or rule of law relating to landlords and tenants or leases applies in relation to—
(a) a lease in relation to which the authority are to be treated as the lessee under subsection (5), or
(b) a lease to which the authority become a party under section 124(4),
as if the authority were the legal owner of the premises (but this is subject to section 124(7) to (9)).
(7) None of the following, namely—
(a) the authority, or
(b) any person authorised under subsection (3)(b),
is liable to any person having an estate or interest in the house for anything done or omitted to be done in the performance (or intended performance) of the authority’s duties under section 106(1) to (3) unless the act or omission is due to the negligence of the authority or any such person.
(8) References in any enactment to housing accommodation provided or managed by a local housing authority do not include a house in relation to which an interim management order is in force.
(9) An interim management order which has come into force is a local land charge.
(10) The authority may apply to the Chief Land Registrar for the entry of an appropriate restriction in the register of title in respect of such an order.
(11) In this section “enactment” includes an enactment comprised in subordinate legislation (within the meaning of the Interpretation Act 1978 (c. 30)).
108 General effect of interim management orders: leases and licences granted by authority
(1) This section applies in relation to any interest or right created by the authority under section 107(3)(c).
(2) For the purposes of any enactment or rule of law—
(a) any interest created by the authority under section 107(3)(c)(i) is to be treated as if it were a legal lease, and
(b) any right created by the authority under section 107(3)(c)(ii) is to be treated as if it were a licence to occupy granted by the legal owner of the premises,
despite the fact that the authority have no legal estate in the premises (see section 107(5)(a)).
(3) Any enactment or rule of law relating to landlords and tenants or leases accordingly applies in relation to any interest created by the authority under section 107(3)(c)(i) as if the authority were the legal owner of the premises.
(4) References to leases and licences—
(a) in this Chapter, and
(b) in any other enactment,
accordingly include (where the context permits) interests and rights created by the authority under section 107(3)(c).
(5) The preceding provisions of this section have effect subject to—
(a) section 124(7) to (9), and
(b) any provision to the contrary contained in an order made by the appropriate national authority.
(6) In section 107(5)(b) the reference to leasing does not include the creation of interests under section 107(3)(c)(i).
(7) In this section—
“enactment” has the meaning given by section 107(11);
“legal lease” means a term of years absolute (within section 1(1)(b) of the Law of Property Act 1925 (c. 20)).
109 General effect of interim management orders: immediate landlords, mortgagees etc.
(1) This section applies in relation to—
(a) immediate landlords, and
(b) other persons with an estate or interest in the house,
while an interim management order is in force in relation to a house.
(2) A person who is an immediate landlord of the house or a part of it—
(a) is not entitled to receive—
(i) any rents or other payments from persons occupying the house or part which are payable to the local housing authority by virtue of section 124(4), or
(ii) any rents or other payments from persons occupying the house or part which are payable to the authority by virtue of any leases or licences granted by them under section 107(3)(c);
(b) may not exercise any rights or powers with respect to the management of the house or part; and
(c) may not create any of the following—
(i) any leasehold interest in the house or part (other than a lease of a reversion), or
(ii) any licence or other right to occupy it.
(3) However (subject to subsection (2)(c)) nothing in section 107 or this section affects the ability of a person having an estate or interest in the house to make any disposition of that estate or interest.
(4) Nothing in section 107 or this section affects—
(a) the validity of any mortgage relating to the house or any rights or remedies available to the mortgagee under such a mortgage, or
(b) the validity of any lease of the house or part of it under which the immediate landlord is a lessee, or any superior lease, or (subject to section 107(5)) any rights or remedies available to the lessor under such a lease,
except to the extent that any of those rights or remedies would prevent the local housing authority from exercising their power under section 107(3)(c).
(5) In proceedings for the enforcement of any such rights or remedies the court may make such order as it thinks fit as regards the operation of the interim management order (including an order quashing it).
(6) For the purposes of this Chapter, as it applies in relation to an interim management order, a person is an “immediate landlord” of the house or a part of it if—
(a) he is an owner or lessee of the house or part, and
(b) (but for the order) he would be entitled to receive the rents or other payments from persons occupying the house or part which are payable to the local housing authority by virtue of section 124(4).
110 Financial arrangements while order is in force
(1) This section applies to relevant expenditure of a local housing authority who have made an interim management order.
(2) “Relevant expenditure” means expenditure reasonably incurred by the authority in connection with performing their duties under section 106(1) to (3) in respect of the house (including any premiums paid for insurance of the premises).
(3) Rent or other payments which the authority have collected or recovered, by virtue of this Chapter, from persons occupying the house may be used by the authority to meet—
(a) relevant expenditure, and
(b) any amounts of compensation payable to a third party by virtue of a decision of the authority under section 128.
(4) If the interim management order is not made under section 102(7A), the authority must pay to such relevant landlord, or to such relevant landlords in such proportions, as they consider appropriate—
(a) 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, and
(b) (where appropriate) interest on that amount at a reasonable rate fixed by the authority,
and such payments are to be made at such intervals as the authority consider appropriate.
(5) The interim management order may provide for—
(a) the rate of interest which is to apply for the purposes of paragraph (b) of subsection (4); and
(b) the intervals at which payments are to be made under that subsection.
Paragraph 24(3) of Schedule 6 enables an appeal to be brought where the order does not provide for both of those matters.
(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) The authority must—
(a) keep full accounts of their income and expenditure in respect of the house; and
(b) afford to each relevant landlord, and to any other person who has an estate or interest in the house, all reasonable facilities for inspecting, taking copies of and verifying those accounts.
(7) A relevant landlord may apply to the appropriate tribunal for an order—
(a) declaring that an amount shown in the accounts as expenditure of the authority does not constitute expenditure reasonably incurred by the authority as mentioned in subsection (2);
(b) requiring the authority to make such financial adjustments (in the accounts and otherwise) as are necessary to reflect the tribunal’s declaration.
(8) In this section—
“expenditure” includes administrative costs;
“relevant landlord” means any person who is an immediate landlord of the house or part of it;
“rent or other payments” means rents or other payments payable under leases or licences or in respect of furniture within section 126(1).
(1) The local housing authority may vary an interim management order if they consider it appropriate to do so.
(2) A variation does not come into force until such time, if any, as is the operative time for the purposes of this subsection under paragraph 31 of Schedule 6 (time when period for appealing expires without an appeal being made or when decision to vary is confirmed on appeal).
(3) The power to vary an order under this section is exercisable by the authority either—
(a) on an application made by a relevant person, or
(b) on the authority’s own initiative.
(4) In this section “relevant person” means—
(a) any person who has an estate or interest in the house or part of it (but is not a tenant under a lease with an unexpired term of 3 years or less), or
(b) any other person who (but for the order) would be a person managing or having control of the house or part of it.
(1) The local housing authority may revoke an interim management order in the following cases—
(a) if the order was made under section 102(2) or (3) and the house has ceased to be an HMO to which Part 2 applies or a Part 3 house (as the case may be);
(b) if the order was made under section 102(2) or (3) and a licence granted by them in respect of the house is due to come into force under Part 2 or Part 3 on the revocation of the order;
(c) if a final management order has been made by them in respect of the house so as to replace the order;
(d) if in any other circumstances the authority consider it appropriate to revoke the order.
(2) A revocation does not come into force until such time, if any, as is the operative time for the purposes of this subsection under paragraph 31 of Schedule 6 (time when period for appealing expires without an appeal being made or when decision to revoke is confirmed on appeal).
(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).
(3) The power to revoke an order under this section is exercisable by the authority either—
(a) on an application made by a relevant person, or
(b) on the authority’s own initiative.
(4) In this section “relevant person” means—
(a) any person who has an estate or interest in the house or part of it (but is not a tenant under a lease with an unexpired term of 3 years or less), or
(b) any other person who (but for the order) would be a person managing or having control of the house or part of it.
(1) A local housing authority who have made an interim management order in respect of a house under any provision of section 102 other than subsection (7A) of that section (“the IMO”)—
(a) have a duty to make a final management order in respect of the house in a case within subsection (2), and
(b) have power to make such an order in a case within subsection (3).
(2) The authority must make a final management order so as to replace the IMO as from its expiry date if—
(a) on that date the house would be required to be licensed under Part 2 or 3 of this Act (see section 61(1) or 85(1)), and
(b) the authority consider that they are unable to grant a licence under Part 2 or 3 in respect of the house that would replace the IMO as from that date.
(3) The authority may make a final management order so as to replace the IMO as from its expiry date if—
(a) on that date the house will not be one that would be required to be licensed as mentioned in subsection (2)(a), and
(b) 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.
(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) A local housing authority who have made a final management order in respect of a house under subsection (2), (3), (5) or (6) of this section (“the existing order”)—
(a) have a duty to make a final management order in respect of the house in a case within subsection (5), and
(b) have power to make such an order in a case within subsection (6).
(5) The authority must make a new final management order so as to replace the existing order as from its expiry date if—
(a) on that date the condition in subsection (2)(a) will be satisfied in relation to the house, and
(b) the authority consider that they are unable to grant a licence under Part 2 or 3 in respect of the house that would replace the existing order as from that date.
(6) The authority may make a new final management order so as to replace the existing order as from its expiry date if—
(a) on that date the condition in subsection (3)(a) will be satisfied in relation to the house, and
(b) 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 within subsection (3)(b).
(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.
(7) The authority may make a final management order which is expressed not to apply to a part of the house that is occupied by a person who has an estate or interest in the whole of the house.
In relation to such an order, a reference in this Chapter to “the house” does not include the part so excluded (unless the context requires otherwise, such as where the reference is to the house as an HMO or a Part 3 house).
(8) In this section “expiry date”, in relation to an interim or final management order, means—
(a) where the order is revoked, the date as from which it is revoked, and
(b) otherwise the date on which the order ceases to have effect under section 105 or 114;
and nothing in this section applies in relation to an interim or final management order which has been revoked on an appeal under Part 3 of Schedule 6.