Part I Social rented sector

Chapter I Registered social landlords

Registration

1 The register of social landlords

(1) The Corporation shall maintain a register of social landlords which shall be open to inspection at all reasonable times at the head office of the Corporation.

(2) On the commencement of this section every housing association which immediately before commencement was registered in the register kept by the Corporation under Part I of the [1985 c. 69.] Housing Associations Act 1985 shall be registered as a social landlord.

2 Eligibility for registration

(1) A body is eligible for registration as a social landlord if it is—

(a) a registered charity which is a housing association,

(b) a society registered under the [1965 c. 12.] Industrial and Provident Societies Act 1965 which satisfies the conditions in subsection (2), or

(c) a company registered under the [1985 c. 6.] Companies Act 1985 which satisfies those conditions.

(2) The conditions are that the body is non-profit-making and is established for the purpose of, or has among its objects or powers, the provision, construction, improvement or management of—

(a) houses to be kept available for letting,

(b) houses for occupation by members of the body, where the rules of the body restrict membership to persons entitled or prospectively entitled (as tenants or otherwise) to occupy a house provided or managed by the body, or

(c) hostels,

and that any additional purposes or objects are among those specified in subsection (4).

(3) For the purposes of this section a body is non-profit-making if—

(a) it does not trade for profit, or

(b) its constitution or rules prohibit the issue of capital with interest or dividend exceeding the rate prescribed by the Treasury for the purposes of section 1(1)(b) of the [1985 c. 69.] Housing Associations Act 1985.

(4) The permissible additional purposes or objects are—

(a) providing land, amenities or services, or providing, constructing, repairing or improving buildings, for its residents, either exclusively or together with other persons;

(b) acquiring, or repairing and improving, or creating by the conversion of houses or other property, houses to be disposed of on sale, on lease or on shared ownership terms;

(c) constructing houses to be disposed of on shared ownership terms;

(d) managing houses held on leases or other lettings (not being houses within subsection (2)(a) or (b)) or blocks of flats;

(e) providing services of any description for owners or occupiers of houses in arranging or carrying out works of maintenance, repair or improvement, or encouraging or facilitating the carrying out of such works;

(f) encouraging and giving advice on the forming of housing associations or providing services for, and giving advice on the running of, such associations and other voluntary organisations concerned with housing, or matters connected with housing.

(5) A body is not ineligible for registration as a social landlord by reason only that its powers include power—

(a) to acquire commercial premises or businesses as an incidental part of a project or series of projects undertaken for purposes or objects falling within subsection (2) or (4);

(b) to repair, improve or convert commercial premises acquired as mentioned in paragraph (a) or to carry on for a limited period any business so acquired;

(c) to repair or improve houses, or buildings in which houses are situated, after a disposal of the houses by the body by way of sale or lease or on shared ownership terms.

(6) In this section—

• “block of flats” means a building containing two or more flats which are held on leases or other lettings and which are occupied or intended to be occupied wholly or mainly for residential purposes;

• “disposed of on shared ownership terms” means disposed of on a lease—

  (a)

  granted on a payment of a premium calculated by reference to a percentage of the value of the house or of the cost of providing it, or

  (b)

  under which the tenant (or his personal representatives) will or may be entitled to a sum calculated by reference directly or indirectly to the value of the house;

• “letting” includes the grant of a licence to occupy;

• “residents”, in relation to a body, means persons occupying a house or hostel provided or managed by the body; and

• “voluntary organisation” means an organisation whose activities are not carried on for profit.

(7) The Secretary of State may by order specify permissible purposes, objects or powers additional to those specified in subsections (4) and (5).

The order may (without prejudice to the inclusion of other incidental or supplementary provisions) contain such provision as the Secretary of State thinks fit with respect to the priority of mortgages entered into in pursuance of any additional purposes, objects or powers.

(8) An order under subsection (7) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

3 Registration

(1) The Corporation may register as a social landlord any body which is eligible for such registration.

(2) An application for registration shall be made in such manner, and shall be accompanied by such fee (if any), as the Corporation may determine.

(3) As soon as may be after registering a body as a social landlord the Corporation shall give notice of the registration—

(a) in the case of a registered charity, to the Charity Commissioners,

(b) in the case of an industrial and provident society, to the appropriate registrar, and

(c) in the case of a company registered under the [1985 c. 6.] Companies Act 1985 (including such a company which is also a registered charity), to the registrar of companies,

who shall record the registration.

(4) A body which at any time is, or was, registered as a social landlord shall, for all purposes other than rectification of the register, be conclusively presumed to be, or to have been, at that time a body eligible for registration as a social landlord.

4 Removal from the register

(1) A body which has been registered as a social landlord shall not be removed from the register except in accordance with this section.

(2) If it appears to the Corporation that a body which is on the register of social landlords—

(a) is no longer a body eligible for such registration, or

(b) has ceased to exist or does not operate,

the Corporation shall, after giving the body at least 14 days' notice, remove it from the register.

(3) In the case of a body which appears to the Corporation to have ceased to exist or not to operate, notice under subsection (2) shall be deemed to be given to the body if it is served at the address last known to the Corporation to be the principal place of business of the body.

(4) A body which is registered as a social landlord may request the Corporation to remove it from the register and the Corporation may do so, subject to the following provisions.

(5) Before removing a body from the register of social landlords under subsection (4) the Corporation shall consult the local authorities in whose area the body operates; and the Corporation shall also inform those authorities of its decision.

(6) As soon as may be after removing a body from the register of social landlords the Corporation shall give notice of the removal—

(a) in the case of a registered charity, to the Charity Commissioners,

(b) in the case of an industrial and provident society, to the appropriate registrar, and

(c) in the case of a company registered under the [1985 c. 6.] Companies Act 1985 (including such a company which is also a registered charity), to the registrar of companies,

who shall record the removal.

5 Criteria for registration or removal from register

(1) The Corporation shall establish (and may from time to time vary) criteria which should be satisfied by a body seeking registration as a social landlord; and in deciding whether to register a body the Corporation shall have regard to whether those criteria are met.

(2) The Corporation shall establish (and may from time to time vary) criteria which should be satisfied where such a body seeks to be removed from the register of social landlords; and in deciding whether to remove a body from the register the Corporation shall have regard to whether those criteria are met.

(3) Before establishing or varying any such criteria the Corporation shall consult such bodies representative of registered social landlords, and such bodies representative of local authorities, as it thinks fit.

(4) The Corporation shall publish the criteria for registration and the criteria for removal from the register in such manner as the Corporation considers appropriate for bringing the criteria to the notice of bodies representative of registered social landlords and bodies representative of local authorities.

6 Appeal against decision on removal

(1) A body which is aggrieved by a decision of the Corporation—

(a) not to register it as a social landlord, or

(b) to remove or not to remove it from the register of social landlords,

may appeal against the decision to the High Court.

(2) If an appeal is brought against a decision relating to the removal of a body from the register, the Corporation shall not remove the body from the register until the appeal has been finally determined or is withdrawn.

(3) As soon as may be after an appeal is brought against a decision relating to the removal of a body from the register, the Corporation shall give notice of the appeal—

(a) in the case of a registered charity, to the Charity Commissioners,

(b) in the case of an industrial and provident society, to the appropriate registrar, and

(c) in the case of a company registered under the [1985 c. 6.] Companies Act 1985 (including such a company which is also a registered charity), to the registrar of companies.

Regulation of registered social landlords

7 Regulation of registered social landlords

Schedule 1 has effect for the regulation of registered social landlords.

• Part I relates to the control of payments to members and similar matters.

• Part II relates to the constitution, change of rules, amalgamation or dissolution of a registered social landlord.

• Part III relates to accounts and audit.

• Part IV relates to inquiries into the affairs of a registered social landlord.

Chapter II Disposal of land and related matters

Power of registered social landlord to dispose of land

8 Power of registered social landlord to dispose of land

(1) A registered social landlord has power by virtue of this section and not otherwise to dispose, in such manner as it thinks fit, of land held by it.

(2) Section 39 of the [1925 c. 18.] Settled Land Act 1925 (disposal of land by trustees) does not apply to the disposal of land by a registered social landlord; and accordingly the disposal need not be for the best consideration in money that can reasonably be obtained.

Nothing in this subsection shall be taken to authorise any action on the part of a charity which would conflict with the trusts of the charity.

(3) This section has effect subject to section 9 (control by Corporation of land transactions).

Control by Corporation of land transactions

9 Consent required for disposal of land by registered social landlord

(1) The consent of the Corporation, given by order under the seal of the Corporation, is required for any disposal of land by a registered social landlord under section 8.

(2) The consent of the Corporation may be so given—

(a) generally to all registered social landlords or to a particular landlord or description of landlords;

(b) in relation to particular land or in relation to a particular description of land,

and may be given subject to conditions.

(3) Before giving any consent other than a consent in relation to a particular landlord or particular land, the Corporation shall consult such bodies representative of registered social landlords as it thinks fit.

(4) A disposal of a house by a registered social landlord made without the consent required by this section is void unless—

(a) the disposal is to an individual (or to two or more individuals),

(b) the disposal does not extend to any other house, and

(c) the landlord reasonably believes that the individual or individuals intend to use the house as their principal dwelling.

(5) Any other disposal by a registered social landlord which requires consent under this section is valid in favour of a person claiming under the landlord notwithstanding that that consent has not been given; and a person dealing with a registered social landlord, or with a person claiming under such a landlord, shall not be concerned to see or inquire whether any such consent has been given.

(6) Where at the time of its removal from the register of social landlords a body owns land, this section continues to apply to that land after the removal as if the body concerned continued to be a registered social landlord.

(7) For the purposes of this section“disposal” means sale, lease, mortgage, charge or any other disposition.

(8) This section has effect subject to section 10 (lettings and other disposals not requiring consent of Corporation).

10 Lettings and other disposals not requiring consent of Corporation

(1) A letting by a registered social landlord does not require consent under section 9 if it is—

(a) a letting of land under an assured tenancy or an assured agricultural occupancy, or what would be an assured tenancy or an assured agricultural occupancy but for any of paragraphs 4 to 8, or paragraph 12(1)(h), of Schedule 1 to the [1988 c. 50.] Housing Act 1988, or

(b) a letting of land under a secure tenancy or what would be a secure tenancy but for any of paragraphs 2 to 12 of Schedule 1 to the [1985 c. 68.] Housing Act 1985.

(2) Consent under section 9 is not required in the case of a disposal to which section 81 or 133 of the Housing Act 1988 applies (certain disposals for which the consent of the Secretary of State is required).

(3) Consent under section 9 is not required for a disposal under Part V of the Housing Act 1985 (the right to buy) or under the right conferred by section 16 below (the right to acquire).

11 Covenant for repayment of discount on disposal

(1) Where on a disposal of a house by a registered social landlord, in accordance with a consent given by the Corporation under section 9, a discount has been given to the purchaser, and the consent does not provide otherwise, the conveyance, grant or assignment shall contain a covenant binding on the purchaser and his successors in title to the following effect.

(2) The covenant shall be to pay to the landlord on demand, if within a period of three years there is a relevant disposal which is not an exempted disposal (but if there is more than one such disposal then only on the first of them), an amount equal to the discount reduced by one-third for each complete year which has elapsed after the conveyance, grant or assignment and before the further disposal.

(3) The liability that may arise under the covenant is a charge on the house, taking effect as if it had been created by deed expressed to be by way of legal mortgage.

(4) A charge taking effect by virtue of this section is a land charge for the purposes of section 59 of the [1925 c. 21.] Land Registration Act 1925 notwithstanding subsection (5) of that section (exclusion of mortgages), and subsection (2) of that section applies accordingly with respect to its protection and realisation.

(5) Where there is a relevant disposal which is an exempted disposal by virtue of section 15(4)(d) or (e) (compulsory disposal or disposal of yard, garden, &c.)—

(a) the covenant required by this section is not binding on the person to whom the disposal is made or any successor in title of his, and

(b) the covenant and the charge taking effect by virtue of this section ceases to apply in relation to the property disposed of.

12 Priority of charge for repayment of discount

(1) The charge taking effect by virtue of section 11 (charge for repayment of discount) has priority immediately after any legal charge securing an amount—

(a) left outstanding by the purchaser, or

(b) advanced to him by an approved lending institution for the purpose of enabling him to acquire the interest disposed of on the first disposal,

subject to the following provisions.

(2) An advance which is made for a purpose other than that mentioned in subsection (1)(b) and which is secured by a legal charge having priority to the charge taking effect by virtue of section 11, and any further advance which is so secured, shall rank in priority to that charge if, and only if, the registered social landlord by notice served on the institution concerned gives consent.

The landlord shall give consent if the purpose of the advance or further advance is an approved purpose.

(3) The registered social landlord may at any time by notice served on an approved lending institution postpone the charge taking effect by virtue of section 11 to an advance or further advance which—

(a) is made to the purchaser by that institution, and

(b) is secured by a legal charge not having priority to that charge;

and the landlord shall serve such a notice if the purpose of the advance or further advance is an approved purpose.

(4) The covenant required by section 11 does not, by virtue of its binding successors in title of the purchaser, bind a person exercising rights under a charge having priority over the charge taking effect by virtue of that section, or a person deriving title under him.

A provision of the conveyance, grant or assignment, or of a collateral agreement, is void in so far as it purports to authorise a forfeiture, or to impose a penalty or disability, in the event of any such person failing to comply with that covenant.

(5) In this section“approved lending institution” means—

(a) a building society, bank, insurance company or friendly society,

(b) the Corporation, or

(c) any body specified, or of a class or description specified, in an order made under section 156 of the [1985 c. 68.] Housing Act 1985 (which makes corresponding provision in relation to disposals in pursuance of the right to buy).

(6) The following are“approved purposes” for the purposes of this section—

(a) to enable the purchaser to defray, or to defray on his behalf, any of the following—

(i) the cost of any works to the house,

(ii) any service charge payable in respect of the house for works, whether or not to the house, and

(iii) any service charge or other amount payable in respect of the house for insurance, whether or not of the house, and

(b) to enable the purchaser to discharge, or to discharge on his behalf, any of the following—

(i) so much as is still outstanding of any advance or further advance which ranks in priority to the charge taking effect by virtue of section 11,

(ii) any arrears of interest on such an advance or further advance, and

(iii) any costs and expenses incurred in enforcing payment of any such interest, or repayment (in whole or in part) of any such advance or further advance.

In this subsection“service charge” has the meaning given by section 621A of the Housing Act 1985.

(7) Where different parts of an advance or further advance are made for different purposes, each of those parts shall be regarded as a separate advance or further advance for the purposes of this section.

13 Restriction on disposal of houses in National Parks, &c

(1) On the disposal by a registered social landlord, in accordance with a consent given by the Corporation under section 9, of a house situated in—

(a) a National Park,

(b) an area designated under section 87 of the National Parks and Access to the [1949 c. 97.] Countryside Act 1949 as an area of outstanding natural beauty, or

(c) an area designated as a rural area by order under section 157 of the [1985 c. 68.] Housing Act 1985,

the conveyance, grant or assignment may (unless it contains a condition of a kind mentioned in section 33(2)(b) or (c) of the Housing Act 1985 (right of pre-emption or restriction on assignment)) contain a covenant to the following effect limiting the freedom of the purchaser (including any successor in title of his and any person deriving title under him or such a successor) to dispose of the house.

(2) The limitation is that until such time (if any) as may be notified in writing by the registered social landlord to the purchaser or a successor in title of his, there will be no relevant disposal which is not an exempted disposal without the written consent of the landlord.

(3) That consent shall not be withheld if the person to whom the disposal is made (or, if it is made to more than one person, at least one of them) has, throughout the period of three years immediately preceding the application for consent—

(a) had his place of work in a region designated by order under section 157(3) of the Housing Act 1985 which, or part of which, is comprised in the National Park or area concerned, or

(b) had his only or principal home in such a region,

or if he has had the one in part or parts of that period and the other in the remainder.

The region need not have been the same throughout the period.

(4) A disposal in breach of such a covenant as is mentioned above is void.

(5) The limitation imposed by such a covenant is a local land charge and, if the land is registered under the [1925 c. 21.] Land Registration Act 1925, the Chief Land Registrar shall enter the appropriate restriction on the register of title as if an application to that effect had been made under section 58 of that Act.

(6) In this section“purchaser” means the person acquiring the interest disposed of by the first disposal.

(7) Where there is a relevant disposal which is an exempted disposal by virtue of section 15(4)(d) or (e) (compulsory disposal or disposal of yard, garden, &c.), any such covenant as is mentioned in this section ceases to apply in relation to the property disposed of.

14 Treatment of options

(1) For the purposes of sections 9 to 13 the grant of an option enabling a person to call for a relevant disposal which is not an exempted disposal shall be treated as such a disposal made to him.

(2) For the purposes of section 13(2) (requirement of consent to disposal of house in National Park, &c.) consent to such a grant shall be treated as consent to a disposal made in pursuance of the option.

15 Relevant and exempted disposals

(1) In sections 11 to 14 the expression“relevant disposal which is not an exempted disposal” shall be construed as follows.

(2) A disposal, whether of the whole or part of the house, is a relevant disposal if it is—

(a) a conveyance of the freehold or an assignment of the lease, or

(b) the grant of a lease or sub-lease (other than a mortgage term) for a term of more than 21 years otherwise than at a rack-rent.

(3) For the purposes of subsection (2)(b) it shall be assumed—

(a) that any option to renew or extend a lease or sub-lease, whether or not forming part of a series of options, is exercised, and

(b) that any option to terminate a lease or sub-lease is not exercised.

(4) A disposal is an exempted disposal if—

(a) it is a disposal of the whole of the house and a conveyance of the freehold or an assignment of the lease and the person or each of the persons to whom it is made is a qualifying person (as defined in subsection (5));

(b) it is a vesting of the whole of the house in a person taking under a will or on an intestacy;

(c) it is a disposal of the whole of the house in pursuance of any such order as is mentioned in subsection (6);

(d) it is a compulsory disposal (as defined in subsection (7));

(e) the property disposed of is a yard, garden, outhouses or appurtenances belonging to a house or usually enjoyed with it.

(5) For the purposes of subsection (4)(a) a person is a qualifying person in relation to a disposal if—

(a) he is the person or one of the persons by whom the disposal is made,

(b) he is the spouse or a former spouse of that person or one of those persons, or

(c) he is a member of the family of that person or one of those persons and has resided with him throughout the period of twelve months ending with the disposal.

(6) The orders referred to in subsection (4)(c) are orders under—

(a) section 24 or 24A of the [1973 c. 18.] Matrimonial Causes Act 1973 (property adjustment orders or orders for the sale of property in connection with matrimonial proceedings);

(b) section 2 of the [1975 c. 63.] Inheritance (Provision for Family and Dependants) Act 1975 (orders as to financial provision to be made from estate);

(c) section 17 of the [1984 c. 42.] Matrimonial and Family Proceedings Act 1984 (property adjustment orders or orders for the sale of property after overseas divorce, &c.); or

(d) paragraph 1 of Schedule 1 to the [1989 c. 41.] Children Act 1989 (orders for financial relief against parents).

(7) For the purposes of subsection (4)(d) a compulsory disposal is a disposal of property which is acquired compulsorily, or is acquired by a person who has made or would have made, or for whom another person has made or would have made, a compulsory purchase order authorising its compulsory purchase for the purposes for which it is acquired.

Right of tenant to acquire dwelling

16 Right of tenant to acquire dwelling

(1) A tenant of a registered social landlord has the right to acquire the dwelling of which he is a tenant if—

(a) he is a tenant under an assured tenancy, other than an assured shorthold tenancy or a long tenancy, or under a secure tenancy,

(b) the dwelling was provided with public money and has remained in the social rented sector, and

(c) he satisfies any further qualifying conditions applicable under Part V of the [1985 c. 68.] Housing Act 1985 (the right to buy) as it applies in relation to the right conferred by this section.

(2) For this purpose a dwelling shall be regarded as provided with public money if—

(a) it was provided or acquired wholly or in part by means of a grant under section 18 (social housing grant),

(b) it was provided or acquired wholly or in part by applying or appropriating sums standing in the disposal proceeds fund of a registered social landlord (see section 25), or

(c) it was acquired by a registered social landlord after the commencement of this paragraph on a disposal by a public sector landlord at a time when it was capable of being let as a separate dwelling.

(3) A dwelling shall be regarded for the purposes of this section as having remained within the social rented sector if, since it was so provided or acquired—

(a) the person holding the freehold interest in the dwelling has been either a registered social landlord or a public sector landlord; and

(b) any person holding an interest as lessee (otherwise than as mortgagee) in the dwelling has been—

(i) an individual holding otherwise than under a long tenancy; or

(ii) a registered social landlord or a public sector landlord.

(4) A dwelling shall be regarded for the purposes of this section as provided by means of a grant under section 18 (social housing grant) if, and only if, the Corporation when making the grant notified the recipient that the dwelling was to be so regarded.

The Corporation shall before making the grant inform the applicant that it proposes to give such a notice and allow him an opportunity to withdraw his application within a specified time.

17 Right of tenant to acquire dwelling: supplementary provisions

(1) The Secretary of State may by order—

(a) specify the amount or rate of discount to be given on the exercise of the right conferred by section 16; and

(b) designate rural areas in relation to dwellings in which the right conferred by that section does not arise.

(2) The provisions of Part V of the Housing Act 1985 apply in relation to the right to acquire under section 16—

(a) subject to any order under subsection (1) above, and

(b) subject to such other exceptions, adaptations and other modifications as may be specified by regulations made by the Secretary of State.

(3) The regulations may provide—

(a) that the powers of the Secretary of State under sections 164 to 170 of that Act (powers to intervene, give directions or assist) do not apply,

(b) that paragraphs 1 and 3 (exceptions for charities and certain housing associations), and paragraph 11 (right of appeal to Secretary of State), of Schedule 5 to that Act do not apply,

(c) that the provisions of Part V of that Act relating to the right to acquire on rent to mortgage terms do not apply,

(d) that the provisions of that Part relating to restrictions on disposals in National Parks, &c. do not apply, and

(e) that the provisions of that Part relating to the preserved right to buy do not apply.

Nothing in this subsection affects the generality of the power conferred by subsection (2).

(4) The specified exceptions, adaptations and other modifications shall take the form of textual amendments of the provisions of Part V of that Act as they apply in relation to the right to buy under that Part; and the first regulations, and any subsequent consolidating regulations, shall set out the provisions of Part V as they so apply.

(5) An order or regulations under this section—

(a) may make different provision for different cases or classes of case including different areas, and

(b) may contain such incidental, supplementary and transitional provisions as the Secretary of State considers appropriate.

(6) Before making an order which would have the effect that an area ceased to be designated under subsection (1)(b), the Secretary of State shall consult—

(a) the local housing authority or authorities in whose district the area or any part of it is situated or, if the order is general in its effect, local housing authorities in general, and

(b) such bodies appearing to him to be representative of registered social landlords as he considers appropriate.

(7) An order or regulations under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Chapter III Grants and other financial matters

Grants and other financial assistance

18 Social housing grants

(1) The Corporation may make grants to registered social landlords in respect of expenditure incurred or to be incurred by them in connection with their housing activities.

(2) The Corporation, acting in accordance with such principles as it may from time to time determine, shall specify in relation to grants under this section—

(a) the procedure to be followed in relation to applications for grant,

(b) the circumstances in which grant is or is not to be payable,

(c) the method for calculating, and any limitations on, the amount of grant, and

(d) the manner in which, and time or times at which, grant is to be paid.

(3) In making a grant under this section, the Corporation may provide that the grant is conditional on compliance by the landlord with such conditions as the Corporation may specify.

(4) The Corporation may, with the agreement of a local housing authority, appoint the authority to act as its agent in connection with the assessment and payment of grant under this section.

(5) The appointment shall be on such terms as the Corporation may, with the approval of the Secretary of State given with the consent of the Treasury, specify; and the authority shall act in accordance with those terms.

(6) Where—

(a) a grant under this section is payable to a registered social landlord, and

(b) at any time property to which the grant relates becomes vested in, or is leased for a term of years to, or reverts to, another registered social landlord, or trustees for another such landlord,

this section (including this subsection) shall have effect after that time as if the grant, or such proportion of it as is specified or determined under subsection (7), were payable to the other landlord.

(7) The proportion mentioned in subsection (6) is that which, in the circumstances of the particular case—

(a) the Corporation, acting in accordance with such principles as it may from time to time determine, may specify as being appropriate, or

(b) the Corporation may determine to be appropriate.

(8) Where one of the landlords mentioned in subsection (6) is registered by the Housing Corporation and another is registered by Housing for Wales, the determination mentioned in subsection (7) shall be such as shall be agreed between the two Corporations.

19 Land subject to housing management agreement

A registered social landlord is not entitled to a grant under section 18 (social housing grant) in respect of land comprised in a management agreement within the meaning of the [1985 c. 68.] Housing Act 1985 (see sections 27(2) and 27B(4) of that Act: delegation of housing management functions by certain authorities).

20 Purchase grant where right to acquire exercised

(1) The Corporation shall make grants to registered social landlords in respect of discounts given by them to persons exercising the right to acquire conferred by section 16.

(2) The amount of the grant for any year shall be the aggregate value of the discounts given in that year.

(3) The Corporation, acting in accordance with such principles as it may from time to time determine, shall specify in relation to grants under this section—

(a) the procedure to be followed in relation to applications for grant,

(b) the manner in which, and time or times at which, grant is to be paid.

(4) In making a grant the Corporation may provide that the grant is conditional on compliance by the registered social landlord with such conditions as the Corporation may specify.

21 Purchase grant in respect of other disposals

(1) The Corporation may make grants to registered social landlords in respect of discounts on disposals by them of dwellings to tenants otherwise than in pursuance of the right conferred by section 16.

(2) The Corporation shall make such a grant if the tenant was entitled to exercise the right conferred by section 16 in relation to another dwelling of the landlord's.

The amount of the grant in such a case shall not exceed the amount of the discount to which the tenant would have been entitled in respect of the other dwelling.

(3) The Corporation, acting in accordance with such principles as it may from time to time determine, shall specify in relation to grants under this section—

(a) the procedure to be followed in relation to applications for grant;

(b) the circumstances in which grant is or is not to be payable;

(c) the method for calculating, and any limitations on, the amount of grant; and

(d) the manner in which, and time or times at which, grant is to be paid.

(4) In making a grant under this section, the Corporation may provide that the grant is conditional on compliance by the registered social landlord with such conditions as the Corporation may specify.

22 Assistance from local authorities

(1) A local authority may promote—

(a) the formation of bodies to act as registered social landlords, and

(b) the extension of the objects or activities of registered social landlords.

(2) A local authority may for the assistance of any registered social landlord subscribe for share or loan capital of the landlord.

(3) A local authority may for the assistance of a registered social landlord—

(a) make grants or loans to the landlord, or

(b) guarantee or join in guaranteeing the payment of the principal of, and interest on, money borrowed by the landlord (including money borrowed by the issue of loan capital) or of interest on share capital issued by the landlord.

(4) A local housing authority may sell or supply under a hire-purchase agreement furniture to the occupants of houses provided by a registered social landlord, and may buy furniture for that purpose.

In this subsection“hire-purchase agreement” means a hire-purchase agreement or conditional sale agreement within the meaning of the [1974 c. 39.] Consumer Credit Act 1974.

23 Loans by Public Works Loans Commissioners

(1) The Public Works Loans Commissioners may lend money to a registered social landlord—

(a) for the purpose of constructing or improving, or facilitating or encouraging the construction or improvement, of dwellings,

(b) for the purchase of dwellings which the landlord desires to purchase with a view to their improvement, and

(c) for the purchase and development of land.

(2) A loan for any of those purposes, and interest on the loan, shall be secured by a mortgage of—

(a) the land in respect of which that purpose is to be carried out, and

(b) such other lands (if any) as may be offered as security for the loan;

and the money lent shall not exceed three-quarters (or, if the payment of the principal of, and interest on, the loan is guaranteed by a local authority, nine-tenths) of the value, to be ascertained to the satisfaction of the Public Works Commissioners, of the estate or interest in the land proposed to be so mortgaged.

(3) Loans may be made by instalments as the building of dwellings or other work on the land mortgaged under subsection (2) progresses (so, however, that the total amount lent does not at any time exceed the amount specified in that subsection); and a mortgage may accordingly be made to secure such loans to be so made.

(4) If the loan exceeds two-thirds of the value referred to in subsection (2), and is not guaranteed as to principal and interest by a local authority, the Public Works Loans Commissioners shall require, in addition to such a mortgage as is mentioned in that subsection, such further security as they think fit.

(5) Subject to subsection (6), the period for repayment of a loan under this section shall not exceed 40 years, and no money shall be lent on mortgage of any land unless the estate proposed to be mortgaged is either an estate in fee simple absolute in possession or an estate for a term of years absolute of which not less than 50 years are unexpired at the date of the loan.

(6) Where a loan under this section is made for the purpose of carrying out a scheme for the provision of houses approved by the Secretary of State, the maximum period for the repayment of the loan is 50 instead of 40 years, and money may be lent on the mortgage of an estate for a term of years absolute of which a period of not less than ten years in excess of the period fixed for the repayment of the sums advanced remains unexpired at the date of the loan.

Treatment of disposal proceeds

24 The disposal proceeds fund

(1) A registered social landlord shall show separately in its accounts for any period ending after the coming into force of this section its net disposal proceeds.

(2) The net disposal proceeds of a registered social landlord are—

(a) the net proceeds of sale received by it in respect of any disposal of land to a tenant—

(i) in pursuance of the right conferred by section 16 (right of tenant to acquire dwelling), or

(ii) in respect of which a grant was made under section 21 (purchase grant in respect of other disposals);

(b) payments of grant received by it under section 20 or 21 (purchase grant);

(c) where any such grant has been paid to it, any repayments of discount in respect of which the grant was given; and

(d) such other proceeds of sale or payments of grant (if any) as the Corporation may from time to time determine.

(3) The net proceeds of sale means the proceeds of sale less an amount calculated in accordance with a determination by the Corporation.

(4) The disposal proceeds shall be shown in a fund to be known as a disposal proceeds fund.

(5) The method of constituting the fund and showing it in the landlord’s accounts shall be as required by determination of the Corporation under paragraph 16 of Schedule 1 (general requirements as to accounts).

(6) Interest shall be added to the fund in accordance with a determination made by the Corporation.

(7) Where this section applies in relation to the proceeds of sale arising on a disposal, section 27 below (recovery, &c. of social housing grants) and section 52 of the [1988 c. 50.] Housing Act 1988 (recovery, &c. of grants under that Act and earlier enactments) do not apply.

25 Application or appropriation of disposal proceeds

(1) The sums standing in the disposal proceeds account of a registered social landlord (“disposal proceeds”) may only be applied or appropriated by it for such purposes and in such manner as the Corporation may determine.

(2) If any disposal proceeds are not applied or appropriated as mentioned in subsection (1) within such time as is specified by determination of the Corporation, the Corporation may direct that the whole or part of them shall be paid to it.

26 Disposal proceeds: power to require information

(1) The Corporation may give notice—

(a) to all registered social landlords,

(b) to registered social landlords of a particular description, or

(c) to particular registered social landlords,

requiring them to furnish it with such information as it may reasonably require in connection with the exercise of its functions under sections 24 and 25 (treatment of disposal proceeds).

(2) A notice under subsection (1)(a) or (b) may be given by publication in such manner as the Corporation considers appropriate for bringing it to the attention of the landlords concerned.

Recovery, &c. of social housing grants

27 Recovery, &c. of social housing grants

(1) Where a registered social landlord has received a grant under section 18 (social housing grant), the following powers are exercisable in such events as the Corporation may from time to time determine.

(2) The Corporation may, acting in accordance with such principles as it has determined—

(a) reduce any grant payable by it, or suspend or cancel any instalment of any such grant, or

(b) direct the registered social landlord to apply or appropriate for such purposes as the Corporation may specify, or to pay to the Corporation, such amount as the Corporation may specify.

(3) A direction by the Corporation under subsection (2)(b) may require the application, appropriation or payment of an amount with interest.

(4) Any such direction shall specify—

(a) the rate or rates of interest (whether fixed or variable) which is or are applicable,

(b) the date from which interest is payable, and

(c) any provision for suspended or reduced interest which is applicable.

The date from which interest is payable must not be earlier than the date of the event giving rise to the exercise of the Corporation’s powers under this section.

(5) In subsection (4)(c)—

(a) provision for suspended interest means provision to the effect that if the principal amount is applied, appropriated or paid before a date specified in the direction, no interest will be payable for any period after the date of the direction; and

(b) provision for reduced interest means provision to the effect that if the principal amount is so applied, appropriated or paid, any interest payable will be payable at a rate or rates lower than the rate or rates which would otherwise be applicable.

(6) Where—

(a) a registered social landlord has received a payment in respect of a grant under section 18, and

(b) at any time property to which the grant relates becomes vested in, or is leased for a term of years to, or reverts to, some other registered social landlord,

this section (including this subsection) shall have effect in relation to periods after that time as if the grant, or such proportion of it as may be determined by the Corporation to be appropriate, had been made to that other registered social landlord.

(7) The matters specified in a direction under subsection (4)(a) to (c), and the proportion mentioned in subsection (6), shall be—

(a) such as the Corporation, acting in accordance with such principles as it may from time to time determine, may specify as being appropriate, or

(b) such as the Corporation may determine to be appropriate in the particular case.

Grants, &c. under earlier enactments

28 Grants under ss.50 to 55 of the Housing Act 1988

(1) No application for a grant under section 50 of the [1988 c. 50.] Housing Act 1988 (housing association grant) may be made after the commencement of this subsection.

(2) No application for a grant under section 51 of that Act (revenue deficit grant) may be made after the commencement of this subsection except by an association which had such a deficit as is mentioned in that section for any of the years beginning 1st April 1994, 1st April 1995 or 1st April 1996.

(3) Section 52 of that Act (recovery, &c. of grants) is amended as follows—

(a) in subsection (2)(c), for “to pay to it” substitute “to apply or appropriate for such purposes as the Corporation may specify, or to pay to the Corporation,”;

(b) in the closing words of subsection (2), for the words from “requiring” to “interest on that amount” substitute “may require the application, appropriation or payment of an amount with interest”;

(c) in subsection (7), for the words from “requiring” to “to the Corporation” substitute “requiring the application, appropriation or payment of an amount with interest”;

(d) in subsection (8)(a), for the words from “the amount” to “is paid” substitute “the principal amount is applied, appropriated or paid”;

(e) in subsection (8)(b), for “that amount is so paid” substitute “the principal amount is so applied, appropriated or paid”.

(4) In section 53 of that Act (determinations by Corporation), for subsection (2) (requirement of approval of Secretary of State and, in the case of a general determination, consent of the Treasury) substitute—

“(2) The Corporation shall not make a general determination under the foregoing provisions of this Part except with the approval of the Secretary of State.”

(5) In section 55(1) of that Act (surplus rental income: cases in which section applies), omit paragraph (a).

(6) Any reference in sections 50 to 55 of that Act to registration as a housing association shall be construed after the commencement of section 1 of this Act (the register of social landlords) as a reference to registration as a social landlord.

29 Commutation of payments of special residual subsidy

(1) The Secretary of State may, after consultation with a housing association, determine to commute any payments of special residual subsidy payable to the association under paragraph 2 of Part I of Schedule 5 to the [1985 c. 69.] Housing Associations Act 1985 for the financial year 1998-99 and subsequent years.

(2) Where the Secretary of State makes such a determination the payments of special residual subsidy payable to a housing association shall be commuted into a single sum calculated in such manner, and payable on such date, as the Secretary of State may consider appropriate.

(3) If after a commuted payment has been made to a housing association it appears to the Secretary of State that the payment was smaller or greater than it should have been, the Secretary of State may make a further payment to the association or require the association to repay to him such sum as he may direct.

(4) The Secretary of State may delegate to the Housing Corporation, to such extent and subject to such conditions as he may specify, any of his functions under this section and, where he does so, references to him in this section shall be construed accordingly.

Chapter IV General powers of the Corporation

Information

30 General power to obtain information

(1) The Corporation may for any purpose connected with the discharge of any of its functions in relation to registered social landlords serve a notice on a person requiring him—

(a) to give to the Corporation, at a time and place and in the form and manner specified in the notice, such information relating to the affairs of a registered social landlord as may be specified or described in the notice, or

(b) to produce to the Corporation or a person authorised by the Corporation, at a time and place specified in the notice, any documents relating to the affairs of the registered social landlord which are specified or described in the notice and are in his custody or under his control.

(2) A notice under this section may be served on—

(a) a registered social landlord,

(b) any person who is, or has been, an officer, member, employee or agent of a registered social landlord,

(c) a subsidiary or associate of a registered social landlord,

(d) any person who is, or has been, an officer, member, employee or agent of a subsidiary or associate of a registered social landlord, or

(e) any other person whom the Corporation has reason to believe is or may be in possession of relevant information.

In this section“agent” includes banker, solicitor and auditor.

(3) No notice shall be served on a person within paragraphs (b) to (e) of subsection (2) unless—

(a) a notice has been served on the registered social landlord and has not been complied with, or

(b) the Corporation believes that the information or documents in question are not in the possession of the landlord.

(4) Nothing in this section authorises the Corporation to require—

(a) the disclosure of anything which a person would be entitled to refuse to disclose on grounds of legal professional privilege in proceedings in the High Court, or

(b) the disclosure by a banker of anything in breach of any duty of confidentiality owed by him to a person other than a registered social landlord or a subsidiary or associate of a registered social landlord.

(5) A notice under this section shall be given under the seal of the Corporation.

(6) References in this section to a document are to anything in which information of any description is recorded; and in relation to a document in which information is recorded otherwise than in legible form, references to producing it are to producing it in legible form.

(7) Where by virtue of this section documents are produced to any person, he may take copies of or make extracts from them.

31 Enforcement of notice to provide information, &c

(1) A person who without reasonable excuse fails to do anything required of him by a notice under section 30 commits an offence and is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(2) A person who intentionally alters, suppresses or destroys a document which he has been required by a notice under section 30 to produce commits an offence and is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum,

(b) on conviction on indictment, to a fine.

(3) Proceedings for an offence under subsection (1) or (2) may be brought only by or with the consent of the Corporation or the Director of Public Prosecutions.

(4) If a person makes default in complying with a notice under section 30, the High Court may, on the application of the Corporation, make such order as the court thinks fit for requiring the default to be made good.

Any such order may provide that all the costs or expenses of and incidental to the application shall be borne by the person in default or by any officers of a body who are responsible for its default.

32 Disclosure of information to the Corporation

(1) A body or person to whom this section applies may, subject to the following provisions, disclose to the Corporation, for the purpose of enabling the Corporation to discharge any of its functions relating to registered social landlords, any information received by that body or person under or for the purposes of any enactment.

(2) This section applies to the following bodies and persons—

(a) any government department (including a Northern Ireland department);

(b) any local authority;

(c) any constable; and

(d) any other body or person discharging functions of a public nature (including a body or person discharging regulatory functions in relation to any description of activities).

(3) This section has effect subject to any express restriction on disclosure imposed by or under any other enactment.

(4) Nothing in this section shall be construed as affecting any power of disclosure exercisable apart from this section.

33 Disclosure of information by the Corporation

(1) The Corporation may disclose to a body or person to whom this section applies any information received by it relating to a registered social landlord—

(a) for any purpose connected with the discharge of the functions of the Corporation in relation to such landlords, or

(b) for the purpose of enabling or assisting that body or person to discharge any of its or his functions.

(2) This section applies to the following bodies and persons—

(a) any government department (including a Northern Ireland department);

(b) any local authority;

(c) any constable; and

(d) any other body or person discharging functions of a public nature (including a body or person discharging regulatory functions in relation to any description of activities).

Paragraph (d) extends to any such body or person in a country or territory outside the United Kingdom.

(3) Where any information disclosed to the Corporation under section 32 is so disclosed subject to any express restriction on the further disclosure of the information, the Corporation’s power of disclosure under this section is exercisable subject to that restriction.

A person who discloses information in contravention of any such restriction commits an offence and is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(4) Any information disclosed by the Corporation under this section may be subject by the Corporation to any express restriction on the further disclosure of the information.

(5) A person who discloses information in contravention of any such restriction commits an offence and is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

Proceedings for such an offence may be brought only by or with the consent of the Corporation or the Director of Public Prosecutions.

(6) Nothing in this section shall be construed as affecting any power of disclosure exercisable apart from this section.

Standards of performance

34 Standards of performance

The Corporation may, after consultation with persons or bodies appearing to it to be representative of registered social landlords, from time to time—

(a) determine such standards of performance in connection with the provision of housing as, in its opinion, ought to be achieved by such landlords, and

(b) arrange for the publication, in such form and in such manner as it considers appropriate, of the standards so determined.

35 Information as to levels of performance

(1) The Corporation shall from time to time collect information as to the levels of performance achieved by registered social landlords in connection with the provision of housing.

(2) On or before such date in each year as may be specified in a direction given by the Corporation, each registered social landlord shall provide the Corporation, as respects each standard determined under section 34, with such information as to the level of performance achieved by him as may be so specified.

(3) A registered social landlord who without reasonable excuse fails to do anything required of him by a direction under subsection (2) commits an offence and is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

Proceedings for such an offence may be brought only by or with the consent of the Corporation or the Director of Public Prosecutions.

(4) The Corporation shall at least once in every year arrange for the publication, in such form and in such manner as it considers appropriate, of such of the information collected by or provided to it under this section as appears to it expedient to give to tenants or potential tenants of registered social landlords.

(5) In arranging for the publication of any such information the Corporation shall have regard to the need for excluding, so far as that is practicable—

(a) any matter which relates to the affairs of an individual, where publication of that matter would or might, in the opinion of the Corporation, seriously and prejudicially affect the interests of that individual; and

(b) any matter which relates specifically to the affairs of a particular body of persons, whether corporate or unincorporate, where publication of that matter would or might, in the opinion of the Corporation, seriously and prejudicially affect the interests of that body.

Housing management

36 Issue of guidance by the Corporation

(1) The Corporation may issue guidance with respect to the management of housing accommodation by registered social landlords.

(2) Guidance under this section may, in particular, be issued with respect to—

(a) the housing demands for which provision should be made and the means of meeting those demands;

(b) the allocation of housing accommodation between individuals;

(c) the terms of tenancies and the principles upon which levels of rent should be determined;

(d) standards of maintenance and repair and the means of achieving those standards;

(e) the services to be provided to tenants;

(f) the procedures to be adopted to deal with complaints by tenants against a landlord;

(g) consultation and communication with tenants;

(h) the devolution to tenants of decisions concerning the management of housing accommodation.

(3) Before issuing any guidance under this section the Corporation shall—

(a) consult such bodies appearing to it to be representative of registered social landlords as it considers appropriate, and

(b) submit a draft of the proposed guidance to the Secretary of State for his approval.

(4) If the Secretary of State gives his approval to the draft submitted to him, the Corporation shall issue the guidance in such manner as the Corporation considers appropriate for bringing it to the notice of the landlords concerned.

(5) Guidance issued under this section may be revised or withdrawn; and subsections (3) and (4) apply in relation to the revision of guidance as in relation to its issue.

(6) Guidance under this section may make different provision in relation to different cases and, in particular, in relation to different areas, different descriptions of housing accommodation and different descriptions of registered social landlord.

(7) In considering whether action needs to be taken to secure the proper management of the affairs of a registered social landlord or whether there has been mismanagement, the Corporation may have regard (among other matters) to the extent to which any guidance under this section is being or has been followed.

37 Powers of entry

(1) This section applies where it appears to the Corporation that a registered social landlord may be failing to maintain or repair any premises in accordance with guidance issued under section 36.

(2) A person authorised by the Corporation may at any reasonable time, on giving not less than 28 days' notice of his intention to the landlord concerned, enter any such premises for the purpose of survey and examination.

(3) Where such notice is given to the landlord, the landlord shall give the occupier or occupiers of the premises not less than seven days' notice of the proposed survey and examination.

A landlord who fails to do so commits an offence and is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(4) Proceedings for an offence under subsection (3) may be brought only by or with the consent of the Corporation or the Director of Public Prosecutions.

(5) An authorisation for the purposes of this section shall be in writing stating the particular purpose or purposes for which the entry is authorised and shall, if so required, be produced for inspection by the occupier or anyone acting on his behalf.

(6) The Corporation shall give a copy of any survey carried out in exercise of the powers conferred by this section to the landlord concerned.

(7) The Corporation may require the landlord concerned to pay to it such amount as the Corporation may determine towards the costs of carrying out any survey under this section.

38 Penalty for obstruction of person exercising power of entry

(1) It is an offence for a registered social landlord or any of its officers or employees to obstruct a person authorised under section 37 (powers of entry) to enter premises in the performance of anything which he is authorised by that section to do.

(2) A person who commits such an offence is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(3) Proceedings for such an offence may be brought only by or with the consent of the Corporation or the Director of Public Prosecutions.

Insolvency, &c. of registered social landlord

39 Insolvency, &c. of registered social landlord: scheme of provisions

(1) The following sections make provision—

(a) for notice to be given to the Corporation of any proposal to take certain steps in relation to a registered social landlord (section 40), and for further notice to be given when any such step is taken (section 41),

(b) for a moratorium on the disposal of land, and certain other assets, held by the registered social landlord (sections 42 and 43),

(c) for proposals by the Corporation as to the future ownership and management of the land held by the landlord (section 44), which are binding if agreed (section 45),

(d) for the appointment of a manager to implement agreed proposals (section 46) and as to the powers of such a manager (sections 47 and 48),

(e) for the giving of assistance by the Corporation (section 49), and

(f) for application to the court to secure compliance with the agreed proposals (section 50).

(2) In those sections—

• “disposal” means sale, lease, mortgage, charge or any other disposition, and includes the grant of an option;

• “secured creditor” means a creditor who holds a mortgage or charge (including a floating charge) over land held by the landlord or any existing or future interest of the landlord in rents or other receipts from land; and

• “security” means any mortgage, charge or other security.

(3) The Secretary of State may make provision by order defining for the purposes of those sections what is meant by a step to enforce security over land.

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

40 Initial notice to be given to the Corporation

(1) Notice must be given to the Corporation before any of the steps mentioned below is taken in relation to a registered social landlord.

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

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

(3) Where the registered social landlord is a company registered under the [1985 c. 6.] Companies Act 1985 (including a registered charity), the steps and the person by whom notice must be given are—

(4) Where the registered social landlord is a registered charity (other than a company registered under the Companies Act 1985), the steps and the person by whom notice must be given are—

(5) Notice need not be given under this section in relation to a resolution for voluntary winding up where the consent of the Corporation is required (see paragraphs 12(4) and 13(6) of Schedule 1).

(6) Any step purportedly taken without the requisite notice being given under this section is ineffective.

41 Further notice to be given to the Corporation

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

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

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

(3) Where the registered social landlord is a company registered under the [1985 c. 6.] Companies Act 1985 (including a registered charity), the steps and the person by whom notice must be given are—

(4) Where the registered social landlord is a registered charity (other than a company registered under the Companies Act 1985), the steps and the person by whom notice must be given are—

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

42 Moratorium on disposal of land, &c

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

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

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

(3) Consent is not required under this section for any such disposal as is mentioned in section 10(1), (2) or (3) (lettings and other disposals not requiring consent under section 9).

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

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

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

43 Period of moratorium

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

(a) begins when the step is taken, and

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

subject to the following provisions.

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

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

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

(a) the landlord, and

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

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

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

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

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

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

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

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

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

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

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

(2) In drawing up its proposals the Corporation—

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

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

(3) The Corporation shall also consult—

(a) where the landlord is an industrial and provident society, the appropriate registrar, and

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

(4) No proposals shall be made under which—

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

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

In this subsection references to preferential debts and preferential creditors have the same meaning as in the [1986 c. 45.] Insolvency Act 1986.

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

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

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

(a) the landlord and its officers,

(b) the secured creditors of the landlord, and

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

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

45 Effect of agreed proposals

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

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

(3) It is the duty of—

(a) the members of the committee where the landlord is an industrial and provident society,

(b) the directors where the landlord is a company registered under the [1985 c. 6.] Companies Act 1985 (including a company which is a registered charity), and

(c) the trustees where the landlord is a charitable trust,

to co-operate in the implementation of the proposals.

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

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

(a) the landlord and its officers,

(b) the secured creditors of the landlord, and

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

(d) where the landlord is an industrial and provident society or registered charity, the appropriate registrar or the Charity Commissioners, as the case may be;

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

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

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

46 Appointment of manager to implement agreed proposals

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

(2) If the landlord is a registered charity, the Corporation shall give notice to the Charity Commissioners of the appointment.

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

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

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

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

(6) If a vacancy occurs by death, resignation or otherwise in the office of manager, the Corporation may by further order under its seal fill the vacancy.

47 Powers of the manager

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

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

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

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

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

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

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

Power to refer to arbitration any question affecting the land.

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

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

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

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

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

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

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

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

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

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

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

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

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

48 Powers of the manager: transfer of engagements

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

(2) Any such instrument has the same effect as a transfer of engagements under section 51 or 52 of the [1965 c. 12.] Industrial and Provident Societies Act 1965 (transfer of engagements by special resolution to another society or a company).

In particular, its effect is subject to section 54 of that Act (saving for rights of creditors).

(3) A copy of the instrument, signed by the manager, shall be sent to the appropriate registrar and registered by him; and until that copy is so registered the instrument shall not take effect.

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

49 Assistance by the Corporation

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

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

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

(2) The Corporation may, in particular—

(a) lend staff;

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

(c) give such financial assistance as appears to the Corporation to be appropriate.

(3) The following forms of assistance require the consent of the Secretary of State—

(a) making grants or loans;

(b) agreeing to indemnify the manager in respect of liabilities incurred or loss or damage sustained by him in connection with his functions;

(c) paying or guaranteeing the repayment of the principal of, the payment of interest on and the discharge of any other financial obligation in connection with any sum borrowed (before or after the making of the order) and secured on any land disposed of.

50 Application to court to secure compliance with agreed proposals

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

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

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

On such an application the court may—

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

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

Chapter V Miscellaneous and general provisions

Housing complaints

51 Schemes for investigation of complaints

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

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

(a) a registered social landlord;

(b) a transferee of housing pursuant to a qualifying disposal under section 135 of the [1993 c. 28.] Leasehold Reform, Housing and Urban Development Act 1993;

(c) a body which has acquired dwellings under Part IV of the [1988 c. 50.] Housing Act 1988 (change of landlord: secure tenants); or

(d) any other body which was at any time registered with the Corporation and which owns or manages publicly-funded dwellings.

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

(a) provided by means of a grant under—

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

• section 50 of the Housing Act 1988, section 41 of the [1985 c. 69.] Housing Associations Act 1985, or section 29 or 29A of the [1974 c. 44.] Housing Act 1974 (housing association grant); or

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

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

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

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

Orders and determinations

52 General provisions as to orders

(1) The following provisions apply to any power of the Secretary of State under this Part to make an order.

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

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

(3) An order may contain such supplementary, incidental, consequential or transitional provisions and savings as the Secretary of State considers appropriate.

53 General provisions as to determinations

(1) The following provisions apply to determinations of the Corporation or the Secretary of State under this Part.

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

This includes power to make—

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

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

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

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

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

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

54 Determinations of the Corporation requiring approval

The Corporation shall not make—

(a) a general determination under paragraph 16 of Schedule 1 (accounting and audit requirements for registered social landlords) or section 18 (social housing grant), or

(b) any determination under section 27 (recovery, &c. of social housing grants),

except with the approval of the Secretary of State.

Minor and consequential amendments

55 Minor and consequential amendments: Part I

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

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

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

Interpretation

56 Meaning of “the Corporation”

(1) In this Part “the Corporation” means the Housing Corporation or Housing for Wales, as follows.

(2) In relation to a registered social landlord, or a body applying for such registration, which is—

(a) a registered charity which has its address for the purposes of registration by the Charity Commissioners in Wales,

(b) an industrial and provident society which has its registered office for the purposes of the [1965 c. 12.] Industrial and Provident Societies Act 1965 in Wales, or

(c) a company registered under the [1985 c. 6.] Companies Act 1985 which has its registered office for the purposes of that Act in Wales,

• “the Corporation” means Housing for Wales.

(3) In relation to any other registered social landlord or body applying for such registration, “the Corporation” means the Housing Corporation.

(4) Nothing in this Part shall be construed as requiring the Housing Corporation and Housing for Wales to establish the same criteria for registration as a social landlord, or otherwise to act on the same principles in respect of any matter in relation to which they have functions under this Part.

57 Definitions relating to industrial and provident societies

(1) In this Part, in relation to an industrial and provident society—

• “appropriate registrar” has the same meaning as in the Industrial and Provident Societies Act 1965 (where it is defined in section 73(1)(c) by reference to the situation of the society’s registered office);

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

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

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

58 Definitions relating to charities

(1) In this Part—

(a) “charity” and “trusts”, in relation to a charity, have the same meaning as in the [1993 c. 10.] Charities Act 1993, and “trustee” means a charitable trustee within the meaning of that Act; and

(b) “registered charity” means a charity which is registered under section 3 of that Act and is not an exempt charity within the meaning of that Act.

(2) References in this Part to a company registered under the [1985 c. 6.] Companies Act 1985 do not include a company which is a registered charity, except where otherwise provided.

59 Meaning of “officer” of registered social landlord

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

(a) in the case of a registered charity which is not a company registered under the Companies Act 1985, to any trustee, secretary or treasurer of the charity;

(b) in the case of an industrial and provident society, to any officer of the society as defined in section 74 of the [1965 c. 12.] Industrial and Provident Societies Act 1965; and

(c) in the case of a company registered under the Companies Act 1985 (including such a company which is also a registered charity), to any director or other officer of the company within the meaning of that Act.

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

60 Meaning of “subsidiary”

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

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

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

(c) the company is a subsidiary, within the meaning of the Companies Act 1985 or the [1968 c. 55.] Friendly and Industrial and Provident Societies Act 1968, of another company which, by virtue of paragraph (a) or paragraph (b), is itself a subsidiary of the landlord.

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

(3) In relation to a company which is an industrial and provident society—

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

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

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

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

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

61 Meaning of “associate”

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

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

(b) any other subsidiary of such a body.

(2) In this section “subsidiary” has the same meaning as in the [1985 c. 6.] Companies Act 1985 or the [1968 c. 55.] Friendly and Industrial and Provident Societies Act 1968 or, in the case of a body which is itself a registered social landlord, has the meaning given by section 60.

62 Members of a person’s family: Part I

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

(a) he is the spouse of that person, or he and that person live together as husband and wife, or

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

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

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

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

(c) the stepchild of a person shall be treated as his child.

63 Minor definitions: Part I

(1) In this Part—

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

• “fully mutual”, in relation to a housing association, and “co-operative housing association” have the same meaning as in the [1985 c. 69.] Housing Associations Act 1985 (see section 1(2) of that Act);

• “hostel” means a building in which is provided for persons generally or for a class or classes of persons—

  (a)

  residential accommodation otherwise than in separate and self-contained premises, and

  (b)

  either board or facilities for the preparation of food adequate to the needs of those persons, or both;

• “house” includes—

  (a)

  any part of a building occupied or intended to be occupied as a separate dwelling, and

  (b)

  any yard, garden, outhouses and appurtenances belonging to it or usually enjoyed with it;

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

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

• “information” includes accounts, estimates and returns;

• “local authority” has the same meaning as in the [1985 c. 69.] Housing Associations Act 1985;

• “long tenancy” has the same meaning as in Part V of the [1985 c. 68.] Housing Act 1985;

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

• “notice” means notice in writing;

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

• “registrar of companies” has the same meaning as in the [1985 c. 6.] Companies Act 1985;

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

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

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

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

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

64 Index of defined expressions: Part I

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

Part II Houses in multiple occupation

Registration schemes

65 Making and approval of registration schemes

(1) In Part XI of the [1985 c. 68.] Housing Act 1985 (houses in multiple occupation), for section 346 (registration schemes) substitute—

“346 Registration schemes

(1) A local housing authority may make a registration scheme authorising the authority to compile and maintain a register for their district of houses in multiple occupation.

(2) A registration scheme need not be for the whole of the authority’s district and need not apply to every description of house in multiple occupation.

(3) A registration scheme may vary or revoke a previous registration scheme; and the local housing authority may at any time by order revoke a registration scheme.

346A Contents of registration scheme

(1) A registration scheme shall make it the duty of such person as may be specified by the scheme to register a house to which the scheme applies and to renew the registration as and when required by the scheme.

(2) A registration scheme shall provide that registration under the scheme—

(a) shall be for a period of five years from the date of first registration, and

(b) may on application be renewed, subject to such conditions as are specified in the scheme, for further periods of five years at a time.

(3) A registration scheme may—

(a) specify the particulars to be inserted in the register,

(b) make it the duty of such persons as may be specified by the scheme to give the authority as regards a house all or any of the particulars specified in the scheme,

(c) make it the duty of such persons as may be specified by the scheme to notify the authority of any change which makes it necessary to alter the particulars inserted in the register as regards a house.

(4) A registration scheme shall, subject to subsection (5)—

(a) require the payment on first registration of a reasonable fee of an amount determined by the local housing authority, and

(b) require the payment on any renewal of registration of half the fee which would then have been payable on a first registration of the house.

(5) The Secretary of State may by order make provision as to the fee payable on registration—

(a) specifying the maximum permissible fee (whether by specifying an amount or a method for calculating an amount), and

(b) specifying cases in which no fee is payable.

(6) An order under subsection (5)—

(a) may make different provision with respect to different cases or descriptions of case (including different provision for different areas), and

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

346B Model schemes and confirmation of schemes

(1) The Secretary of State may prepare model registration schemes.

(2) Model registration schemes may be prepared with or without control provisions (see section 347) or special control provisions (see section 348B); and different model schemes may be prepared for different descriptions of authorities and for different areas.

(3) A registration scheme which conforms to a model scheme—

(a) does not require confirmation by the Secretary of State, and

(b) comes into force on such date (at least one month after the making of the scheme) as may be specified in the scheme.

(4) Any other registration scheme does not come into force unless and until confirmed by the Secretary of State.

(5) The Secretary of State may if he thinks fit confirm such a scheme with or without modifications.

(6) A scheme requiring confirmation shall not come into force before it has been confirmed but, subject to that, comes into force on such date as may be specified in the scheme or, if no date is specified, one month after it is confirmed.”

(2) In section 351(1) of the [1985 c. 68.] Housing Act 1985 (proof of matters relating to registration scheme), in paragraph (c) at the beginning insert “that the scheme did not require confirmation by the Secretary of State or”.

66 Registration schemes: control provisions

In Part XI of the Housing Act 1985 (houses in multiple occupation), for sections 347 and 348 (registration schemes: control provisions) substitute—

“347 Control provisions

(1) A registration scheme may contain control provisions, that is to say, provisions for preventing multiple occupation of a house unless—

(a) the house is registered, and

(b) the number of households or persons occupying it does not exceed the number registered for it.

(2) Control provisions may prohibit persons from permitting others to take up residence in a house or part of a house but shall not prohibit a person from taking up or remaining in residence in the house.

(3) Control provisions shall not prevent the occupation of a house by a greater number of households or persons than the number registered for it if all of those households or persons have been in occupation of the house without interruption since before the number was first registered.

348 Control provisions: decisions on applications and appeals

(1) Control provisions may enable the local housing authority, on an application for first registration of a house or a renewal or variation of registration—

(a) to refuse the application on the ground that the house is unsuitable and incapable of being made suitable for such occupation as would be permitted if the application were granted;

(b) to refuse the application on the ground that the person having control of the house or the person intended to be the person managing the house is not a fit and proper person;

(c) to require as a condition of granting the application that such works as will make the house suitable for such occupation as would be permitted if the application were granted are executed within such time as the authority may determine;

(d) to impose such conditions relating to the management of the house during the period of registration as the authority may determine.

(2) Control provisions shall provide that the local housing authority shall give an applicant a written statement of their reasons where they—

(a) refuse to grant his application for first registration or for a renewal or variation of registration,

(b) require the execution of works as a condition of granting such an application, or

(c) impose conditions relating to the management of the house.

(3) Where the local housing authority—

(a) notify an applicant that they refuse to grant his application for first registration or for the renewal or variation of a registration,

(b) notify an applicant that they require the execution of works as a condition of granting such an application,

(c) notify an applicant that they intend to impose conditions relating to the management of the house, or

(d) do not within five weeks of receiving the application, or such longer period as may be agreed in writing between the authority and the applicant, register the house or vary or renew the registration in accordance with the application,

the applicant may, within 21 days of being so notified or of the end of the period mentioned in paragraph (d), or such longer period as the authority may in writing allow, appeal to the county court.

(4) On appeal the court may confirm, reverse or vary the decision of the authority.

(5) Where the decision of the authority was a refusal—

(a) to grant an application for first registration of a house, or

(b) for the renewal or variation of the registration,

the court may direct the authority to grant the application as made or as varied in such manner as the court may direct.

(6) For the purposes of subsections (4) and (5) an appeal under subsection (3)(d) shall be treated as an appeal against a decision of the authority to refuse the application.

(7) Where the decision of the authority was to impose conditions relating to the management of the house, the court may direct the authority to grant the application without imposing the conditions or to impose the conditions as varied in such manner as the court may direct.

348A Control provisions: other decisions and appeals

(1) Control provisions may enable the local housing authority at any time during a period of registration (whether or not an application has been made)—

(a) to alter the number of households or persons for which a house is registered or revoke the registration on the ground that the house is unsuitable and incapable of being made suitable for such occupation as is permitted by virtue of the registration; or

(b) to alter the number of households or persons for which a house is registered or revoke the registration unless such works are executed within a specified time as will make the house in question suitable for such occupation as is permitted by virtue of the registration.

(2) Control provisions which confer on a local housing authority any such power as is mentioned in subsection (1) shall provide that the authority shall, in deciding whether to exercise the power, apply the same standards in relation to the circumstances existing at the time of the decision as were applied at the beginning of the period of registration.

(3) Control provisions may enable the local housing authority to revoke a registration if they consider that—

(a) the person having control of the house or the person managing it is not a fit and proper person, or

(b) there has been a breach of conditions relating to the management of the house.

(4) Control provisions shall also provide that the local housing authority shall—

(a) notify the person having control of a house and the person managing it of any decision by the authority to exercise a power mentioned in subsection (1) or (3) in relation to the house, and

(b) at the same time give them a written statement of the authority’s reasons.

(5) A person who has been so notified may within 21 days of being so notified, or such longer period as the authority may in writing allow, appeal to the county court.

(6) On appeal the court may confirm, reverse or vary the decision of the authority.”

67 Registration schemes: special control provisions

(1) In Part XI of the [1985 c. 68.] Housing Act 1985 (houses in multiple occupation), after section 348A (as inserted by section 66 above) insert—

“348B Special control provisions

(1) A registration scheme which contains control provisions may also contain special control provisions, that is, provisions for preventing houses in multiple occupation, by reason of their existence or the behaviour of their residents, from adversely affecting the amenity or character of the area in which they are situated.

(2) Special control provisions may provide for the refusal or revocation of registration, for reducing the number of households or persons for which a house is registered and for imposing conditions of registration.

(3) The conditions of registration may include conditions relating to the management of the house or the behaviour of its occupants.

(4) Special control provisions may authorise the revocation of registration in the case of—

(a) occupation of the house by more households or persons than the registration permits, or

(b) a breach of any condition imposed in pursuance of the special control provisions,

which is due to a relevant management failure.

(5) Special control provisions shall not authorise the refusal of—

(a) an application for first registration of a house which has been in operation as a house in multiple occupation since before the introduction by the local housing authority of a registration scheme with special control provisions, or

(b) any application for renewal of registration of a house previously registered under such a scheme,

unless there has been a relevant management failure.

(6) Special control provisions may provide that in any other case where an application is made for first registration of a house the local housing authority may take into account the number of houses in multiple occupation in the vicinity in deciding whether to permit or refuse registration.

348C Special control provisions: general provisions as to decisions and appeals

(1) Special control provisions shall provide that the local housing authority shall give a written statement of their reasons to the applicant where they refuse to grant his application for first registration, or for a renewal or variation of a registration, or impose conditions of registration on such an application.

(2) Special control provisions shall provide that the authority shall give written notice to the person having control of the house and the person managing it of any decision by the authority—

(a) to vary the conditions of registration (otherwise than on an application to which subsection (1) applies), or

(b) to revoke the registration of the house,

and at the same time give them a written statement of the authority’s reasons.

(3) Where in accordance with special control provisions the local housing authority—

(a) notify an applicant that they refuse to grant his application for first registration or for the renewal or variation of a registration,

(b) notify such an applicant of the imposition of conditions of registration, or

(c) give notice to the person having control or the person managing the house of any such decision as is mentioned in subsection (2),

that person may, within 21 days of being so notified, or such longer period as the authority may in writing allow, appeal to the county court.

(4) If on appeal it appears to the court—

(a) that there has been any informality, defect or error in, or in connection with, the authority’s decision, or

(b) that the authority acted unreasonably,

the court may reverse or vary the decision of the authority.

(5) In so far as an appeal is based on the ground mentioned in subsection (4)(a), the court shall dismiss the appeal if it is satisfied that the informality, defect or error was not a material one.

(6) Where the decision of the authority was a refusal—

(a) to grant an application for first registration of a house, or

(b) for the renewal or variation of the registration,

the court may direct the authority to grant the application as made or as varied in such manner as the court may direct.

(7) Where the decision of the authority was to impose conditions of registration, the court may direct the authority to grant the application without imposing the conditions or to impose the conditions as varied in such manner as the court may direct.

348D Special control provisions: occupancy directions

(1) Special control provisions may provide that where the local housing authority decide that the registration of a house should be revoked the authority may direct that the level of occupation of the house be reduced, within such period of not less than 28 days as they may direct, to a level such that the registration scheme does not apply.

Such a direction is referred to in this Part as an “occupancy direction”.

(2) Special control provisions shall provide that the authority shall only make an occupancy direction if it appears to the authority that there has been a relevant management failure resulting in a serious adverse effect on the amenity or character of the area in which the house is situated.

(3) In considering whether to make an occupancy direction the authority shall take into account the interests of the occupants of the house and the person having control of the house as well as the interests of local residents and businesses.

(4) Special control provisions may require the person having control of the house, and the person managing it, to take all reasonably practicable steps to comply with an occupancy direction.

(5) Nothing in Part I of the [1988 c. 50.] Housing Act 1988 prevents possession being obtained by any person in order to comply with an occupancy direction.

(6) Nothing in this section affects any liability in respect of any other contravention or failure to comply with control provisions or special control provisions.

348E Special control provisions: decisions and appeals relating to occupancy directions

(1) Special control provisions shall provide that where the local housing authority make an occupancy direction in respect of a house they shall give written notice of the direction to the person having control of the house and the person managing it and at the same time give them a written statement of the authority’s reasons.

(2) A person aggrieved by an occupancy direction may, within 21 days after the date of the service of notice as mentioned in subsection (1), appeal to the county court.

(3) If on appeal it appears to the court—

(a) that there has been any informality, defect or error in, or in connection with, the authority’s decision, or

(b) that the authority acted unreasonably,

the court may make such order either confirming, quashing or varying the notice as it thinks fit.

(4) In so far as an appeal is based on the ground mentioned in subsection (3)(a), the court shall dismiss the appeal if it is satisfied that the informality, defect or error was not a material one.

(5) If an appeal is brought the direction does not become operative until—

(a) a decision on the appeal confirming the direction (with or without variation) is given and the period within which an appeal to the Court of Appeal may be brought expires without any such appeal having been brought, or

(b) if a further appeal to the Court of Appeal is brought, a decision on that appeal is given confirming the direction (with or without variation).

(6) For this purpose the withdrawal of an appeal has the same effect as a decision confirming the direction or decision appealed against.

348F Special control provisions: “relevant management failure”

A “relevant management failure” for the purposes of sections 348B to 348E (special control provisions) means a failure on the part of the person having control of, or the person managing, a house in multiple occupation to take such steps as are reasonably practicable to prevent the existence of the house or the behaviour of its residents from adversely affecting the amenity or character of the area in which the house is situated, or to reduce any such adverse effect.”

(2) In section 400 of the [1985 c. 68.] Housing Act 1985 (index of defined expressions: Part XI), at the appropriate places insert—

68 Offences in connection with registration schemes

(1) In Part XI of the Housing Act 1985, after section 348F (as inserted by section 67 above) insert—

“348G Offences in connection with registration schemes

(1) A person who contravenes or fails to comply with a provision of a registration scheme commits an offence.

(2) A person who commits an offence under this section consisting of a contravention of so much of control provisions as relates—

(a) to occupation to a greater extent than permitted under those provisions of a house which is not registered, or

(b) to occupation of a house which is registered by more households or persons than the registration permits,

is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(3) A person who commits an offence under this section consisting of a contravention of so much of special control provisions as requires all reasonably practicable steps to be taken to comply with an occupancy direction is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(4) A person who commits any other offence under this section is liable on summary conviction to a fine not exceeding level 4 on the standard scale.”

(2) In section 395(2) of the [1985 c. 68.] Housing Act 1985 (power of entry to ascertain if offence being committed), for “section 346(6)” substitute “section 348G”.

69 Information requirements in connection with registration schemes

(1) In Part XI of the Housing Act 1985 (houses in multiple occupation), for section 349 (steps required to inform public about registration schemes) substitute—

“349 Steps required to inform public about schemes

(1) Where a local housing authority intend to make a registration scheme which does not require confirmation by the Secretary of State, they shall publish notice of their intention at least one month before the scheme is made.

As soon as the scheme is made, the local housing authority shall publish a notice stating—

(a) that a registration scheme which does not require confirmation has been made, and

(b) the date on which the scheme is to come into force.

(2) Where a local housing authority intend to submit to the Secretary of State a registration scheme which requires his confirmation, they shall publish notice of their intention at least one month before the scheme is submitted.

As soon as the scheme is confirmed, the local housing authority shall publish a notice stating—

(a) that a registration scheme has been confirmed, and

(b) the date on which the scheme is to come into force.

(3) A notice under subsection (1) or (2) of the authority’s intention to make a scheme or submit a scheme for confirmation shall—

(a) describe any steps which will have to be taken under the scheme by those concerned with registrable houses (other than steps which have only to be taken after a notice from the authority), and

(b) name a place where a copy of the scheme may be seen at all reasonable hours.

(4) After publication of notice under subsection (1) or (2) that a registration scheme has been made or confirmed, and for as long as the scheme is in force, the local housing authority—

(a) shall keep a copy of the scheme, and of the register, available for public inspection at the offices of the authority free of charge at all reasonable hours, and

(b) on request, and on payment of such reasonable fee as the authority may require, shall supply a copy of the scheme or the register, or of any entry in the register, to any person.

(5) If the local housing authority revoke a registration scheme by order they shall publish notice of the order.

(6) In this section “publish” means publish in one or more newspapers circulating in the district of the local housing authority concerned.”

(2) In section 350(1) of the [1985 c. 68.] Housing Act 1985 (power to require information for purposes of scheme) for the words “a person” substitute “the person having control of the house or the person managing the house or any person”.

70 Existing registration schemes

(1) The amendments made by sections 65 to 69 do not apply to registration schemes in force immediately before the coming into force of those sections.

(2) The unamended provisions of Part XI of the Housing Act 1985 continue to apply to such schemes, subject as follows.

(3) Any such scheme may be revoked—

(a) by a new scheme complying with the provisions of that Part as amended, or

(b) by order of the local housing authority.

(4) If not so revoked any such scheme shall cease to have effect at the end of the period of two years beginning with the date on which the amendments come into force.

Other amendments of Part XI of the Housing Act 1985

71 Restriction on notices requiring execution of works

(1) In section 352 of the Housing Act 1985 (power to require execution of works to render premises fit for number of occupants), at end insert—

“(7) Where a local housing authority serve a notice under this section in respect of any of the requirements specified in subsection (1A), and the works specified in the notice are carried out, whether by the person on whom the notice was served or by the local housing authority under section 375, the authority shall not, within the period of five years from the service of the notice, serve another notice under this section in respect of the same requirement unless they consider that there has been a change of circumstances in relation to the premises.

(8) Such a change may, in particular, relate to the condition of the premises or the availability or use of the facilities mentioned in subsection (1A).”

(2) The above amendment does not apply in relation to a notice served under section 352 of the [1985 c. 68.] Housing Act 1985 before this section comes into force.

72 Recovery of expenses of notice requiring execution of works

(1) After section 352 of the Housing Act 1985 insert—

“352A Recovery of expenses of notice under s.352

(1) A local housing authority may, as a means of recovering certain administrative and other expenses incurred by them in serving a notice under section 352, make such reasonable charge as they consider appropriate.

(2) The expenses are the expenses incurred in—

(a) determining whether to serve a notice under that section,

(b) identifying the works to be specified in the notice, and

(c) serving the notice.

(3) The amount of the charge shall not exceed such amount as is specified by order of the Secretary of State.

(4) A charge under this section may be recovered by the authority from any person on whom the notice under section 352 is served.

(5) The provisions of Schedule 10 apply to the recovery by the authority of a charge under this section as they apply to the recovery of expenses incurred by the authority under section 375 (expenses of carrying out works required by notice).

(6) An order under this section—

(a) may make different provision with respect to different cases or descriptions of case (including different provision for different areas), and

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

(7) This section has effect subject to any order under section 353(6) (power of court on appeal against s.352 notice).”

(2) In section 353 of that Act (appeal against notice under section 352), after subsection (5) insert—

“(6) Where the court allows an appeal under this section or makes an order under subsection (5), it may make such order as it thinks fit reducing, quashing or requiring the repayment of any charge under section 352A made in respect of the notice to which the appeal relates.”

(3) The above amendments do not apply in relation to a notice served under section 352 of the [1985 c. 68.] Housing Act 1985 before this section comes into force.

73 Duty to keep premises fit for number of occupants

(1) After section 353 of the Housing Act 1985 insert—

“353A Duty to keep premises fit for number of occupants

(1) It is the duty of the person having control of a house in multiple occupation, and of the person managing it, to take such steps as are reasonably practicable to prevent the occurrence of a state of affairs calling for the service of a notice or further notice under section 352 (notice requiring execution of works to render house fit for number of occupants).

(2) A breach of that duty is actionable in damages at the suit of any tenant or other occupant of the premises, or any other person who suffers loss, damage or personal injury in consequence of the breach.

(3) A person who fails to comply with the duty imposed on him by subsection (1) commits a summary offence and is liable on conviction to a fine not exceeding level 5 on the standard scale.”

(2) In section 395(2) of the Housing Act 1985 (power of entry to ascertain whether offence being committed), after the entry for section 346(6) insert—

• “section 353A (failure to keep premises fit for number of occupants),”

74 Section 354 direction to be local land charge

In section 354 of the Housing Act 1985 (power to limit number of occupants of house), at the end insert—

“(8) A direction under this section is a local land charge.”

75 Means of escape from fire

(1) Section 365 of the Housing Act 1985 (means of escape from fire: general provisions as to exercise of powers) is amended as follows.

(2) In subsection (1)(b) (ground for exercise of additional powers) after “paragraph (d)” insert “or (e)”.

(3) For subsection (3) (consultation requirements) substitute—

“(3) The local housing authority shall consult with the fire authority concerned before exercising any of the powers mentioned in subsection (2)—

(a) where they are under a duty to exercise those powers, or

(b) where they are not under such a duty but may exercise those powers and the house is of such description or is occupied in such manner as the Secretary of State may specify by order for the purposes of this subsection.”

(4) In subsection (4) (orders) for “or (2A)” substitute “, (2A) or (3)”.

(5) In subsection (5) (other powers unaffected) omit “and (e)”.

76 Works notices: improvement of enforcement procedures

After section 377 of the [1985 c. 68.] Housing Act 1985 insert—

“377A Works notices: improvement of enforcement procedures

(1) The Secretary of State may by order provide that a local housing authority shall act as specified in the order before serving a works notice.

In this section a “works notice” means a notice under section 352 or 372 (notices requiring the execution of works).

(2) An order under this section may provide that the authority—

(a) shall as soon as practicable give to the person on whom the works notice is to be served a written notice which satisfies the requirements of subsection (3); and

(b) shall not serve the works notice until after the end of such period beginning with the giving of a notice which satisfies the requirements of subsection (3) as may be determined by or under the order.

(3) A notice satisfies the requirements of this subsection if it—

(a) states the works which in the authority’s opinion should be undertaken, and explains why and within what period;

(b) explains the grounds on which it appears to the authority that the works notice might be served;

(c) states the type of works notice which is to be served, the consequences of serving it and whether there is a right to make representations before, or a right of appeal against, the serving of it.

(4) An order under this section may also provide that, before the authority serves the works notice on any person, they—

(a) shall give to that person a written notice stating—

(i) that they are considering serving the works notice and the reasons why they are considering serving the notice; and

(ii) that the person may, within a period specified in the written notice, make written representations to them or, if the person so requests, make oral representations to them in the presence of a person determined by or under the order; and

(b) shall consider any representations which are duly made and not withdrawn.

(5) An order under this section may in particular—

(a) make provision as to the consequences of any failure to comply with a provision made by the order;

(b) contain such consequential, incidental, supplementary or transitional provisions and savings as the Secretary of State considers appropriate (including provisions modifying enactments relating to the periods within which proceedings must be brought).

(6) An order under this section—

(a) may make different provision with respect to different cases or descriptions of case (including different provision for different areas), and

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

(7) Nothing in any order under this section shall—

(a) preclude a local housing authority from serving a works notice on any person, or from requiring any person to take immediate remedial action to avoid a works notice being served on him, in any case where it appears to them to be necessary to serve such a notice or impose such a requirement; or

(b) require such an authority to disclose any information the disclosure of which would be contrary to the public interest.”

77 Codes of practice

After section 395 of the [1985 c. 68.] Housing Act 1985 insert—

“395A Codes of practice

(1) The Secretary of State may by order—

(a) approve any code of practice (whether prepared by him or another person) which, in his opinion, gives suitable guidance to any person in relation to any matter arising under this Part;

(b) approve any modification of such a code; or

(c) withdraw such a code or modification.

(2) The Secretary of State shall only approve a code of practice or a modification of a code if he is satisfied that—

(a) the code or modification has been published (whether by him or by another person) in such manner as he considers appropriate for the purpose of bringing the code or modification to the notice of those likely to be affected by it; or

(b) arrangements have been made for the code or modification to be so published.

(3) The Secretary of State may approve—

(a) more than one code of practice in relation to the same matter;

(b) a code of practice which makes different provision with respect to different cases or descriptions of case (including different provision for different areas).

(4) A failure to comply with a code of practice for the time being approved under this section shall not of itself render a person liable to any civil or criminal proceedings; but in any civil or criminal proceedings—

(a) any code of practice approved under this section shall be admissible in evidence, and

(b) any provision of any such code which appears to the court to be relevant to any question arising in the proceedings shall be taken into account in determining that question.

(5) An order under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(6) In this section references to a code of practice include references to a part of a code of practice.”

78 Increase of fines, &c

(1) In section 350(2) of the [1985 c. 68.] Housing Act 1985 (information in relation to registration schemes)—

(a) in paragraph (a) (failure to give information) for “level 2” substitute “level 3”, and

(b) in paragraph (b) (mis-statement) for “level 3” substitute “level 5”.

(2) In section 355(2) of that Act (failure to comply with occupancy restrictions) for “level 4” substitute “level 5”.

(3) In section 356(2) of that Act (information in relation to occupation of house) for “level 2” substitute “level 3”.

(4) In section 364(2) of that Act (information in relation to overcrowding) for “level 2 on the standard scale” substitute “, in the case of such failure, level 3 on the standard scale and, in the case of furnishing such a statement, level 5 on the standard scale”.

(5) In section 368(3) of that Act (use of house in contravention of undertaking) omit from “and if” to the end.

(6) In section 369(5) of that Act (failure to comply with management code) for “level 3” substitute “level 5”.

(7) In section 376(1) and (2) of that Act (penalties for failures to execute works) for “level 4” substitute in each case “level 5”.

(8) In section 377(3) of that Act (failure to permit execution of works) for the words from “level 3” to the end substitute “level 5 on the standard scale”.

(9) In section 387(5) of that Act (failure to permit carrying out of works) for the words from “level 3” to the end substitute “level 5 on the standard scale”.

(10) In section 396(2) of that Act (penalty for obstruction) for the words “level 3” substitute “level 4”.

79 Minor amendments

(1) In section 355(1) of the [1985 c. 68.] Housing Act 1985 (effect of direction limiting number of occupants) for the words from “the number” to the end substitute “any individual to take up residence in that house or part unless the number of individuals or households then occupying the house or part would not exceed the limit specified in the direction.”.

(2) In section 398 of the Housing Act 1985 for subsection (6) (meaning of “person managing”) substitute—

“(6) “Person managing”—

(a) means the person who, being an owner or lessee of the premises—

(i) receives, directly or through an agent or trustee, rents or other payments from persons who are tenants of parts of the premises, or who are lodgers, or

(ii) would so receive those rents or other payments but for having entered into an arrangement (whether in pursuance of a court order or otherwise) with another person who is not an owner or lessee of the premises by virtue of which that other person receives the rents or other payments, and

(b) includes, where those rents or other payments are received through another person as agent or trustee, that other person.”

(3) In Part IV of Schedule 13 to the Housing Act 1985 (control order followed by compulsory purchase order), in paragraph 22 (application of provisions where compulsory purchase order is made within 28 days of a control order), for “28 days” substitute “eight weeks”.

Common lodging houses

80 Repeal of Part XII of the Housing Act 1985

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

(2) In consequence of the above repeal—

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

(b) in section 65(2)(a) of the [1988 c. 50.] Housing Act 1988, for “XII” substitute “XI”.

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

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

Part III Landlord and tenant

Chapter I Tenants' rights

Forfeiture

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

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

(a) is agreed or admitted by the tenant, or

(b) has been the subject of determination by a court or by an arbitral tribunal in proceedings pursuant to an arbitration agreement (within the meaning of Part I of the [1996 c. 23.] Arbitration Act 1996).

(2) Where the amount is the subject of determination, the landlord may not exercise any such right of re-entry or forfeiture until after the end of the period of 14 days beginning with the day after that on which the decision of the court or arbitral tribunal is given.

(3) For the purposes of this section the amount of a service charge shall be taken to be determined when the decision of the court or arbitral tribunal is given, notwithstanding the possibility of an appeal or other legal challenge to the decision.

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

(a) a tenancy to which Part II of the [1954 c. 56.] Landlord and Tenant Act 1954 applies (business tenancies),

(b) a tenancy of an agricultural holding within the meaning of the [1986 c. 5.] Agricultural Holdings Act 1986 in relation to which that Act applies, or

(c) a farm business tenancy within the meaning of the [1995 c. 8.] Agricultural Tenancies Act 1995.

(5) In this section “service charge” means a service charge within the meaning of section 18(1) of the [1985 c. 70.] Landlord and Tenant Act 1985, other than one excluded from that section by section 27 of that Act (rent of dwelling registered and not entered as variable).

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

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

(1) Nothing in section 81 (restriction on termination of tenancy for failure to pay service charge) affects the power of a landlord to serve a notice under section 146(1) of the [1925 c. 20.] Law of Property Act 1925 (restrictions on and relief against forfeiture: notice of breach of covenant or condition).

(2) But such a notice in respect of premises let as a dwelling and failure to pay a service charge is ineffective unless it complies with the following requirements.

(3) It must state that section 81 applies and set out the effect of subsection (1) of that section.

The Secretary of State may by regulations prescribe a form of words to be used for that purpose.

(4) The information or words required must be in characters not less conspicuous than those used in the notice—

(a) to indicate that the tenancy may be forfeited, or

(b) to specify the breach complained of,

whichever is the more conspicuous.

(5) In this section “premises let as a dwelling” and “service charge” have the same meaning as in section 81.

(6) Regulations under this section—

(a) shall be made by statutory instrument, and

(b) may make different provision for different cases or classes of case including different areas.

Service charges

83 Determination of reasonableness of service charges

(1) In section 19 of the [1985 c. 70.] Landlord and Tenant Act 1985 (limitation of service charges: reasonableness), after subsection (2) insert—

“(2A) A tenant by whom, or a landlord to whom, a service charge is alleged to be payable may apply to a leasehold valuation tribunal for a determination—

(a) whether costs incurred for services, repairs, maintenance, insurance or management were reasonably incurred,

(b) whether services or works for which costs were incurred are of a reasonable standard, or

(c) whether an amount payable before costs are incurred is reasonable.

(2B) An application may also be made to a leasehold valuation tribunal by a tenant by whom, or landlord to whom, a service charge may be payable for a determination—

(a) whether if costs were incurred for services, repairs, maintenance, insurance or management of any specified description they would be reasonable,

(b) whether services provided or works carried out to a particular specification would be of a reasonable standard, or

(c) what amount payable before costs are incurred would be reasonable.

(2C) No application under subsection (2A) or (2B) may be made in respect of a matter which—

(a) has been agreed or admitted by the tenant,

(b) under an arbitration agreement to which the tenant is a party is to be referred to arbitration, or

(c) has been the subject of determination by a court or arbitral tribunal.”

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

“8 (1) This paragraph applies where a tenancy of a dwelling requires the tenant to insure the dwelling with an insurer nominated by the landlord.

(2) The tenant or landlord may apply to a county court or leasehold valuation tribunal for a determination whether—

(a) the insurance which is available from the nominated insurer for insuring the tenant’s dwelling is unsatisfactory in any respect, or

(b) the premiums payable in respect of any such insurance are excessive.

(3) No such application may be made in respect of a matter which—

(a) has been agreed or admitted by the tenant,

(b) under an arbitration agreement to which the tenant is a party is to be referred to arbitration, or

(c) has been the subject of determination by a court or arbitral tribunal.

(4) On an application under this paragraph the court or tribunal may make—

(a) an order requiring the landlord to nominate such other insurer as is specified in the order, or

(b) an order requiring him to nominate another insurer who satisfies such requirements in relation to the insurance of the dwelling as are specified in the order.

(5) Any such order of a leasehold valuation tribunal may, with the leave of the court, be enforced in the same way as an order of a county court to the same effect.

(6) An agreement by the tenant of a dwelling (other than an arbitration agreement) is void in so far as it purports to provide for a determination in a particular manner, or on particular evidence, of any question which may be the subject of an application under this paragraph.”

(3) In the [1985 c. 70.] Landlord and Tenant Act 1985 before section 32 under the heading “Supplementary provisions” insert—

“31A Jurisdiction of leasehold valuation tribunal

(1) The jurisdiction conferred by this Act on a leasehold valuation tribunal is exercisable by a rent assessment committee constituted in accordance with Schedule 10 to the [1977 c. 42.] Rent Act 1977 which when so constituted for the purposes of exercising any such jurisdiction shall be known as a leasehold valuation tribunal.

(2) The power to make regulations under section 74(1)(b) of the Rent Act 1977 (procedure of rent assessment committees) extends to prescribing the procedure to be followed in connection with any proceedings before a leasehold valuation tribunal under this Act.

(3) Such regulations may, in particular, make provision—

(a) for securing consistency where numerous applications under this Act are or may be brought in respect of the same or substantially the same matters; and

(b) empowering a leasehold valuation tribunal to dismiss an application, in whole or in part, on the ground that it is frivolous or vexatious or otherwise an abuse of the process of the tribunal.”

(4) No costs incurred by a party in connection with proceedings under this Act before a leasehold valuation tribunal shall be recoverable by order of any court.

(5) Paragraphs 2, 3 and 7 of Schedule 22 to the [1980 c. 51.] Housing Act 1980 (supplementary provisions relating to leasehold valuation tribunals: appeals and provision of information) apply to a leasehold valuation tribunal constituted for the purposes of this section.

(6) No appeal shall lie to the Lands Tribunal from a decision of a leasehold valuation tribunal under this Act without the leave of the leasehold valuation tribunal concerned or the Lands Tribunal.

(7) On any such appeal—

(a) the Lands Tribunal may exercise any power available to the leasehold valuation tribunal in relation to the original matter, and

(b) an order of the Lands Tribunal may be enforced in the same way as an order of the leasehold valuation tribunal.

31B Leasehold valuation tribunal: applications and fees

(1) The Secretary of State may make provision by order as to the form of, or the particulars to be contained in, an application made to a leasehold valuation tribunal under this Act.

(2) The Secretary of State may make provision by order—

(a) requiring the payment of fees in respect of any such application, or in respect of any proceedings before, a leasehold valuation tribunal under this Act; and

(b) empowering a leasehold valuation tribunal to require a party to proceedings before it to reimburse any other party the whole or part of any fees paid by him.

(3) The fees payable shall be such as may be specified in or determined in accordance with the order subject to this limit, that the fees payable in respect of any one application or reference by the court together with any proceedings before the tribunal arising out of that application or reference shall not exceed £500 or such other amount as may be specified by order of the Secretary of State.

(4) An order under this section may make different provision for different cases or classes of case or for different areas.

(5) An order may in particular—

(a) make different provision in relation to proceedings transferred to the tribunal from that applicable where an application was made to the tribunal, and

(b) provide for the reduction or waiver of fees by reference to the financial resources of the party by whom they are to be paid or met.

(6) In the latter case the order may apply, subject to such modifications as may be specified in the order, any other statutory means-testing regime as it has effect from time to time.

(7) An order under this section shall be made by statutory instrument.

(8) No order altering the limit under subsection (3) shall be made unless a draft of the order has been laid before and approved by a resolution of each House of Parliament.

(9) Any other order under this section, unless it contains only such provision as is mentioned in subsection (1), shall be subject to annulment in pursuance of a resolution of either House of Parliament.

31C Transfer of cases from county court

(1) Where in any proceedings before a court there falls for determination a question falling within the jurisdiction of a leasehold valuation tribunal under this Act, the court—

(a) may by order transfer to such a tribunal so much of the proceedings as relate to the determination of that question, and

(b) may then dispose of all or any remaining proceedings, or adjourn the disposal of all or any of such proceedings, pending the determination of that question by the tribunal, as it thinks fit.

(2) When the tribunal has determined the question, the court may give effect to the determination in an order of the court.

(3) Any such order shall be treated as a determination by the court for the purposes of section 81 of the Housing Act 1996 (restriction on termination of tenancy for failure to pay service charge).

(4) Rules of court may prescribe the procedure to be followed in the court in connection with or in consequence of a transfer under this section.

(4) For section 20C of the [1985 c. 70.] Landlord and Tenant Act 1985 (limitation of service charges: costs of court proceedings) substitute—

“20C Limitation of service charges: costs of proceedings

(1) A tenant may make an application for an order that all or any of the costs incurred, or to be incurred, by the landlord in connection with proceedings before a court or leasehold valuation tribunal, or the Lands Tribunal, or in connection with arbitration proceedings, are not to be regarded as relevant costs to be taken into account in determining the amount of any service charge payable by the tenant or any other person or persons specified in the application.

(2) The application shall be made—

(a) in the case of court proceedings, to the court before which the proceedings are taking place or, if the application is made after the proceedings are concluded, to a county court;

(b) in the case of proceedings before a leasehold valuation tribunal, to the tribunal before which the proceedings are taking place or, if the application is made after the proceedings are concluded, to any leasehold valuation tribunal;

(c) in the case of proceedings before the Lands Tribunal, to the tribunal;

(d) in the case of arbitration proceedings, to the arbitral tribunal or, if the application is made after the proceedings are concluded, to a county court.

(3) The court or tribunal to which the application is made may make such order on the application as it considers just and equitable in the circumstances.”

(5) In section 38 of the [1985 c. 70.] Landlord and Tenant Act 1985 (minor definitions), at the appropriate place insert—

““arbitration agreement”, “arbitration proceedings” and “arbitral tribunal” have the same meaning as in Part I of the [1996 c. 23.] Arbitration Act 1996;”

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

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

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

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

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

For this purpose “qualified surveyor” has the same meaning as in section 78(4)(a) of the [1993 c. 28.] Leasehold Reform, Housing and Urban Development Act 1993 (persons qualified for appointment to carry out management audit).

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

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

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

(6) In this section—

• “recognised tenants' association” has the same meaning as in the provisions of the [1985 c. 70.] Landlord and Tenant Act 1985 relating to service charges (see section 29 of that Act); and

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

Appointment of manager

85 Appointment of manager by the court

(1) Section 24 of the [1987 c. 31.] Landlord and Tenant Act 1987 (appointment of manager by the court) is amended as follows.

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

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

“(ab) where the court is satisfied—

(i) that unreasonable service charges have been made, or are proposed or likely to be made, and

(ii) that it is just and convenient to make the order in all the circumstances of the case;

(ac) where the court is satisfied—

(i) that the landlord has failed to comply with any relevant provision of a code of practice approved by the Secretary of State under section 87 of the [1993 c. 28.] Leasehold Reform, Housing and Urban Development Act 1993 (codes of management practice), and

(ii) that it is just and convenient to make the order in all the circumstances of the case;”

(4) After that subsection insert—

“(2A) For the purposes of subsection (2)(ab) a service charge shall be taken to be unreasonable—

(a) if the amount is unreasonable having regard to the items for which it is payable,

(b) if the items for which it is payable are of an unnecessarily high standard, or

(c) if the items for which it is payable are of an insufficient standard with the result that additional service charges are or may be incurred.

In that provision and this subsection “service charge” means a service charge within the meaning of section 18(1) of the [1985 c. 70.] Landlord and Tenant Act 1985, other than one excluded from that section by section 27 of that Act (rent of dwelling registered and not entered as variable).”

(5) The above amendments apply to applications for an order under section 24 of the [1987 c. 31.] Landlord and Tenant Act 1987 which are made after this section comes into force.

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

(6) After subsection (9) insert—

“(9A) The court shall not vary or discharge an order under subsection (9) on a landlord’s application unless it is satisfied—

(a) that the variation or discharge of the order will not result in a recurrence of the circumstances which led to the order being made, and

(b) that it is just and convenient in all the circumstances of the case to vary or discharge the order.”

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

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

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

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

(4) In section 23(2)—

(a) for “Rules of court” substitute “Procedure regulations”, and

(b) in paragraph (a), for “rules” substitute “regulations”.

(5) After section 24 insert—

“24A Jurisdiction of leasehold valuation tribunal

(1) The jurisdiction conferred by this Part on a leasehold valuation tribunal is exercisable by a rent assessment committee constituted in accordance with Schedule 10 to the [1977 c. 42.] Rent Act 1977 which when so constituted for the purposes of exercising any such jurisdiction shall be known as a leasehold valuation tribunal.

(2) The power to make regulations under section 74(1)(b) of the Rent Act 1977 (procedure of rent assessment committees) extends to prescribing the procedure to be followed in connection with any proceedings before a leasehold valuation tribunal under this Part.

Such regulations are referred to in this Part as “procedure regulations”.

(3) Procedure regulations may, in particular, make provision—

(a) for securing consistency where numerous applications under this Part are or may be brought in respect of the same or substantially the same matters; and

(b) empowering a leasehold valuation tribunal to dismiss an application, in whole or in part, on the ground that it is frivolous or vexatious or otherwise an abuse of the process of the tribunal.

(4) Any order made by a leasehold valuation tribunal under this Part may, with the leave of the court, be enforced in the same way as an order of the county court.

(5) No costs incurred by a party in connection with proceedings under this Part before a leasehold valuation tribunal shall be recoverable by order of any court.

(6) Paragraphs 2, 3 and 7 of Schedule 22 to the [1980 c. 51.] Housing Act 1980 (supplementary provisions relating to leasehold valuation tribunals: appeals and provision of information) apply to a leasehold valuation tribunal constituted for the purposes of this section.

(7) No appeal shall lie to the Lands Tribunal from a decision of a leasehold valuation tribunal under this Part without the leave of the leasehold valuation tribunal concerned or the Lands Tribunal.

(8) On an appeal to the Lands Tribunal from a decision of a leasehold valuation tribunal under this Part—

(a) the Lands Tribunal may exercise any power available to the leasehold valuation tribunal in relation to the original matter, and

(b) an order of the Lands Tribunal may be enforced in the same way as an order of the leasehold valuation tribunal.

24B Leasehold valuation tribunal: applications and fees

(1) The Secretary of State may make provision by order as to the form of, or the particulars to be contained in, an application made to a leasehold valuation tribunal under this Part.

(2) The Secretary of State may make provision by order—

(a) requiring the payment of fees in respect of any such application, or in respect of any proceedings before, a leasehold valuation tribunal under this Part; and

(b) empowering a leasehold valuation tribunal to require a party to proceedings before it to reimburse any other party the whole or part of any fees paid by him.

(3) The fees payable shall be such as may be specified in or determined in accordance with the order subject to this limit, that the fees payable in respect of any one application or reference by the court together with any proceedings before the tribunal arising out of that application or reference shall not exceed £500 or such other amount as may be specified by order of the Secretary of State.

(4) An order under this section may make different provision for different cases or classes of case or for different areas.

(5) An order may, in particular, provide for the reduction or waiver of fees by reference to the financial resources of the party by whom they are to be paid or met.

Any such order may apply, subject to such modifications as may be specified in the order, any other statutory means-testing regime as it has effect from time to time.

(6) An order under this section shall be made by statutory instrument.

(7) No order altering the limit under subsection (3) shall be made unless a draft of the order has been laid before and approved by a resolution of each House of Parliament.

(8) Any other order under this section, unless it contains only such provision as is mentioned in subsection (1), shall be subject to annulment in pursuance of a resolution of either House of Parliament.”

(6) In section 52 of the [1987 c. 31.] Landlord and Tenant Act 1987 (jurisdiction of county courts), in subsection (2)(a) for “Parts I to IV” substitute “Parts I, III and IV”.

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

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

88 Period after which acquisition order may be made

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

Right of first refusal

89 Application of right of first refusal in relation to contracts

(1) After section 4 of the [1987 c. 31.] Landlord and Tenant Act 1987 (relevant disposals) insert—

“4A Application of provisions to contracts

(1) The provisions of this Part apply to a contract to create or transfer an estate or interest in land, whether conditional or unconditional and whether or not enforceable by specific performance, as they apply in relation to a disposal consisting of the creation or transfer of such an estate or interest.

As they so apply—

(a) references to a disposal of any description shall be construed as references to a contract to make such a disposal;

(b) references to making a disposal of any description shall be construed as references to entering into a contract to make such a disposal; and

(c) references to the transferee under the disposal shall be construed as references to the other party to the contract and include a reference to any other person to whom an estate or interest is to be granted or transferred in pursuance of the contract.

(2) The provisions of this Part apply to an assignment of rights under such a contract as is mentioned in subsection (1) as they apply in relation to a disposal consisting of the transfer of an estate or interest in land.

As they so apply—

(a) references to a disposal of any description shall be construed as references to an assignment of rights under a contract to make such a disposal;

(b) references to making a disposal of any description shall be construed as references to making an assignment of rights under a contract to make such a disposal;

(c) references to the landlord shall be construed as references to the assignor; and

(d) references to the transferee under the disposal shall be construed as references to the assignee of such rights.

(3) The provisions of this Part apply to a contract to make such an assignment as is mentioned in subsection (2) as they apply (in accordance with subsection (1)) to a contract to create or transfer an estate or interest in land.

(4) Nothing in this section affects the operation of the provisions of this Part relating to options or rights of pre-emption.”

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

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

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

90 Notice required to be given by landlord making disposal

(1) In section 4(2) of the [1987 c. 31.] Landlord and Tenant Act 1987 (disposals which are not relevant disposals for the purposes of Part I of that Act), for paragraph (l) substitute—

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

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

91 Offence of failure to comply with requirements of Part I

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

“10A Offence of failure to comply with requirements of Part I

(1) A landlord commits an offence if, without reasonable excuse, he makes a relevant disposal affecting premises to which this Part applies—

(a) without having first complied with the requirements of section 5 as regards the service of notices on the qualifying tenants of flats contained in the premises, or

(b) in contravention of any prohibition or restriction imposed by sections 6 to 10.

(2) A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(3) Where an offence under this section committed by a body corporate is proved—

(a) to have been committed with the consent or connivance of a director, manager, secretary or other similar officer of the body corporate, or a person purporting to act in such a capacity, or

(b) to be due to any neglect on the part of such an officer or person,

he, as well as the body corporate, is guilty of the offence and liable to be proceeded against and punished accordingly.

Where the affairs of a body corporate are managed by its members, the above provision applies in relation to the acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.

(4) Proceedings for an offence under this section may be brought by a local housing authority (within the meaning of section 1 of the [1985 c. 68.] Housing Act 1985).

(5) Nothing in this section affects the validity of the disposal.”

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

92 Procedure for exercise of rights of first refusal

(1) Part I of the [1987 c. 31.] Landlord and Tenant Act 1987 (tenants' rights of first refusal) is amended in accordance with Schedule 6.

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

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

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

(3) In Schedule 6—

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

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

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

• Part IV contains consequential amendments.

93 Duty of new landlord to inform tenant of rights

(1) In the [1985 c. 70.] Landlord and Tenant Act 1985, after section 3 (duty to inform tenant of assignment of landlord’s interest) insert—

“3A Duty to inform tenant of possible right to acquire landlord’s interest

(1) Where a new landlord is required by section 3(1) to give notice to a tenant of an assignment to him, then if—

(a) the tenant is a qualifying tenant within the meaning of Part I of the Landlord and Tenant Act 1987 (tenants' rights of first refusal), and

(b) the assignment was a relevant disposal within the meaning of that Part affecting premises to which at the time of the disposal that Part applied,

the landlord shall give also notice in writing to the tenant to the following effect.

(2) The notice shall state—

(a) that the disposal to the landlord was one to which Part I of the Landlord and Tenant Act 1987 applied;

(b) that the tenant (together with other qualifying tenants) may have the right under that Part—

(i) to obtain information about the disposal, and

(ii) to acquire the landlord’s interest in the whole or part of the premises in which the tenant’s flat is situated; and

(c) the time within which any such right must be exercised, and the fact that the time would run from the date of receipt of notice under this section by the requisite majority of qualifying tenants (within the meaning of that Part).

(3) A person who is required to give notice under this section and who fails, without reasonable excuse, to do so within the time allowed for giving notice under section 3(1) commits a summary offence and is liable on conviction to a fine not exceeding level 4 on the standard scale.”

(2) In section 32(1) of the [1985 c. 70.] Landlord and Tenant Act 1985 (provisions not applying to tenancies within Part II of the [1954 c. 56.] Landlord and Tenant Act 1954), for “sections 1 to 3” substitute “sections 1 to 3A”.

General legal advice

94 Provision of general legal advice about residential tenancies

(1) The Secretary of State may give financial assistance to any person in relation to the provision by that person of general advice about—

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

(b) Chapter IV of Part I of the [1993 c. 28.] Leasehold Reform, Housing and Urban Development Act 1993 (estate management schemes in connection with enfranchisement).

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

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

Supplementary

95 Jurisdiction of county courts

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

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

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

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

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

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

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

Chapter II Assured tenancies

Assured shorthold tenancies

96 Tenancies which are assured shorthold tenancies

(1) In Chapter II of Part I of the [1988 c. 50.] Housing Act 1988 (assured shorthold tenancies) there shall be inserted at the beginning—

“19A Assured shorthold tenancies: post-Housing Act 1996 tenancies

An assured tenancy which—

(a) is entered into on or after the day on which section 96 of the Housing Act 1996 comes into force (otherwise than pursuant to a contract made before that day), or

(b) comes into being by virtue of section 5 above on the coming to an end of an assured tenancy within paragraph (a) above,

is an assured shorthold tenancy unless it falls within any paragraph in Schedule 2A to this Act.”

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

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

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

“20A Post-Housing Act 1996 tenancies: duty of landlord to provide statement as to terms of tenancy

(1) Subject to subsection (3) below, a tenant under an assured shorthold tenancy to which section 19A above applies may, by notice in writing, require the landlord under that tenancy to provide him with a written statement of any term of the tenancy which—

(a) falls within subsection (2) below, and

(b) is not evidenced in writing.

(2) The following terms of a tenancy fall within this subsection, namely—

(a) the date on which the tenancy began or, if it is a statutory periodic tenancy or a tenancy to which section 39(7) below applies, the date on which the tenancy came into being,

(b) the rent payable under the tenancy and the dates on which that rent is payable,

(c) any term providing for a review of the rent payable under the tenancy, and

(d) in the case of a fixed term tenancy, the length of the fixed term.

(3) No notice may be given under subsection (1) above in relation to a term of the tenancy if—

(a) the landlord under the tenancy has provided a statement of that term in response to an earlier notice under that subsection given by the tenant under the tenancy, and

(b) the term has not been varied since the provision of the statement referred to in paragraph (a) above.

(4) A landlord who fails, without reasonable excuse, to comply with a notice under subsection (1) above within the period of 28 days beginning with the date on which he received the notice is liable on summary conviction to a fine not exceeding level 4 on the standard scale.

(5) A statement provided for the purposes of subsection (1) above shall not be regarded as conclusive evidence of what was agreed by the parties to the tenancy in question.

(6) Where—

(a) a term of a statutory periodic tenancy is one which has effect by virtue of section 5(3)(e) above, or

(b) a term of a tenancy to which subsection (7) of section 39 below applies is one which has effect by virtue of subsection (6)(e) of that section,

subsection (1) above shall have effect in relation to it as if paragraph (b) related to the term of the tenancy from which it derives.

(7) In subsections (1) and (3) above—

(a) references to the tenant under the tenancy shall, in the case of joint tenants, be taken to be references to any of the tenants, and

(b) references to the landlord under the tenancy shall, in the case of joint landlords, be taken to be references to any of the landlords.”

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

(1) Section 21 of the [1988 c. 50.] Housing Act 1988 (recovery of possession on expiry or termination of assured shorthold tenancy) shall be amended as follows.

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

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

99 Restriction on recovery of possession on expiry or termination

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

“(5) Where an order for possession under subsection (1) or (4) above is made in relation to a dwelling-house let on a tenancy to which section 19A above applies, the order may not be made so as to take effect earlier than—

(a) in the case of a tenancy which is not a replacement tenancy, six months after the beginning of the tenancy, and

(b) in the case of a replacement tenancy, six months after the beginning of the original tenancy.

(6) In subsection (5)(b) above, the reference to the original tenancy is—

(a) where the replacement tenancy came into being on the coming to an end of a tenancy which was not a replacement tenancy, to the immediately preceding tenancy, and

(b) where there have been successive replacement tenancies, to the tenancy immediately preceding the first in the succession of replacement tenancies.

(7) For the purposes of this section, a replacement tenancy is a tenancy—

(a) which comes into being on the coming to an end of an assured shorthold tenancy, and

(b) under which, on its coming into being—

(i) the landlord and tenant are the same as under the earlier tenancy as at its coming to an end, and

(ii) the premises let are the same or substantially the same as those let under the earlier tenancy as at that time.”

100 Applications for determination of rent: time limit

(1) Section 22 of the [1988 c. 50.] Housing Act 1988 (reference of excessive rents to rent assessment committee) shall be amended as follows.

(2) In subsection (2) (circumstances in which no application under the section may be made) after paragraph (a) there shall be inserted—

“(aa) the tenancy is one to which section 19A above applies and more than six months have elapsed since the beginning of the tenancy or, in the case of a replacement tenancy, since the beginning of the original tenancy; or”

(3) At the end there shall be inserted—

“(6) In subsection (2)(aa) above, the references to the original tenancy and to a replacement tenancy shall be construed in accordance with subsections (6) and (7) respectively of section 21 above.”

Grounds for possession

101 Mandatory possession for non-payment of rent: reduction in arrears required

In Part I of Schedule 2 to the Housing Act 1988 (grounds on which court must order possession) in Ground 8 (rent unpaid for certain periods)—

(a) in paragraph (a) (rent payable weekly or fortnightly) for “thirteen weeks”' there shall be substituted “eight weeks”', and

(b) in paragraph (b) (rent payable monthly) for “three months”' there shall be substituted “two months”'.

102 Recovery of possession where grant induced by false statement

In Part II of Schedule 2 to the Housing Act 1988 (grounds on which court may order possession) there shall be inserted at the end—

“Ground 17

The tenant is the person, or one of the persons, to whom the tenancy was granted and the landlord was induced to grant the tenancy by a false statement made knowingly or recklessly by—

(a) the tenant, or

(b) a person acting at the tenant’s instigation.”

Assured agricultural occupancies

103 Assured agricultural occupancies: exclusion of tenancies of agricultural holdings and farm business tenancies

(1) Section 24 of the [1988 c. 50.] Housing Act 1988 (assured agricultural occupancies) shall be amended as follows.

(2) In subsection (2)(b) (under which a tenancy is an assured agricultural occupancy if it would be an assured tenancy, but for paragraph 7 of Schedule 1 to that Act) there shall be inserted at the end “and is not an excepted tenancy”.

(3) After subsection (2) there shall be inserted—

“(2A) For the purposes of subsection (2)(b) above, a tenancy is an excepted tenancy if it is—

(a) a tenancy of an agricultural holding within the meaning of the [1986 c. 5.] Agricultural Holdings Act 1986 in relation to which that Act applies, or

(b) a farm business tenancy within the meaning of the [1995 c. 8.] Agricultural Tenancies Act 1995.”

Consequential amendments

104 Consequential amendments: assured tenancies

The enactments mentioned in Schedule 8 have effect with the amendments specified there which are consequential on the provisions of this Chapter.

Chapter III Leasehold Reform

Scope of rights

105 Low rent test: nil rateable values

(1) In section 4(1) of the