Legalize / United Kingdom / Public General Act

Housing Act 2004

Type Public General Act

Publication 2004-11-18

Last updated 2025-12-27

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

“occupying tenant”, in relation to any premises, means a person (other than an owner-occupier) who—occupies or is entitled to occupy the premises as a lessee;is a statutory tenant of the premises;occupies the premises under a restricted contract;is a protected occupier within the meaning of the Rent (Agriculture) Act 1976 (c. 80); oris a licensee under an assured agricultural occupancy;

“owner-occupier”, in relation to any premises, means the person who occupies or is entitled to occupy the premises as owner or lessee under a long tenancy (within the meaning of Part 1 of the Leasehold Reform Act 1967 (c. 88)).

Expenses of taking action by agreement

2

Any action taken by the local housing authority under paragraph 1 is to be taken at the expense of the person on whom the notice is served.

Part 2 — Power to take action without agreement

Power to take action without agreement

3

(1) The local housing authority may themselves take the action required to be taken in relation to a hazard by an improvement notice if sub-paragraph (2) or (3) applies.

(2) This sub-paragraph applies if the notice is not complied with in relation to that hazard.

(3) This sub-paragraph applies if, before the end of the period which under section 30(2) is appropriate for completion of the action specified in the notice in relation to the hazard, they consider that reasonable progress is not being made towards compliance with the notice in relation to the hazard.

(4) Any person authorised in writing by the authority may enter any part of the specified premises for the purposes of the taking of any action which the authority are authorised to take under this paragraph.

(5) The right of entry conferred by sub-paragraph (4) may be exercised at any reasonable time.

(6) Any reference in this Part of this Schedule (of whatever nature) to a local housing authority entering any premises under this paragraph is a reference to their doing so in accordance with sub-paragraph (4).

(7) In this paragraph “improvement notice” means an improvement notice which has become operative under Chapter 2 of Part 1 of this Act.

Notice requirements in relation to taking action without agreement

4

(1) The local housing authority must serve a notice under this paragraph before they enter any premises under paragraph 3 for the purpose of taking action in relation to a hazard.

(2) The notice must identify the improvement notice to which it relates and state—

(a) the premises and hazard concerned;

(b) that the authority intend to enter the premises;

(d) the power under which the authority intend to enter the premises and take the action.

(3) The notice must be served on the person on whom the improvement notice was served, and a copy of the notice must be served on any other person who is an occupier of the premises.

(4) The notice and any such copy must be served sufficiently in advance of the time when the authority intend to enter the premises as to give the recipients reasonable notice of the intended entry.

(5) A copy of the notice may also be served on any owner of the premises.

Obstruction of action taken without agreement

5

(1) If, at any relevant time—

(a) the person on whom the notice under paragraph 4 was served is on the premises for the purpose of carrying out any works, or

(b) any workman employed by that person, or by any contractor employed by that person, is on the premises for such a purpose,

that person is to be taken to have committed an offence under section 241(1).

(2) In proceedings for such an offence it is a defence that there was an urgent necessity to carry out the works in order to prevent danger to persons occupying the premises.

(3) In sub-paragraph (1) “relevant time” means any time—

(a) after the end of the period of 7 days beginning with the date of service of the notice under paragraph 4, and

(b) when any workman or contractor employed by the local housing authority is taking action on the premises which has been mentioned in the notice in accordance with paragraph 4(2)(c).

Expenses in relation to taking action without agreement

6

(1) Part 3 of this Schedule applies with respect to the recovery by the local housing authority of expenses incurred by them in taking action under paragraph 3.

(2) Sub-paragraph (3) applies where, after a local housing authority have given notice under paragraph 4 of their intention to enter premises and take action, the action is in fact taken by the person on whom the improvement notice is served.

(3) Any administrative and other expenses incurred by the authority with a view to themselves taking the action are to be treated for the purposes of Part 3 of this Schedule as expenses incurred by them in taking action under paragraph 3.

Part 3 — Recovery of certain expenses

Introductory

7

This Part of this Schedule applies for the purpose of enabling a local housing authority to recover expenses reasonably incurred by them in taking action under paragraph 3.

Recovery of expenses

8

(1) The expenses are recoverable by the local housing authority from the person on whom the improvement notice was served (“the relevant person”).

(2) Where the relevant person receives the rent of the premises as agent or trustee for another person, the expenses are also recoverable by the local housing authority from the other person, or partly from him and partly from the relevant person.

(3) Sub-paragraph (4) applies where the relevant person proves in connection with a demand under paragraph 9—

(a) that sub-paragraph (2) applies, and

(b) that he has not, and since the date of the service on him of the demand has not had, in his hands on behalf of the other person sufficient money to discharge the whole demand of the local housing authority.

(4) The liability of the relevant person is limited to the total amount of the money which he has, or has had, in his hands as mentioned in sub-paragraph (3)(b).

(5) Expenses are not recoverable under this paragraph so far as they are, by any direction given by the appropriate tribunal on an appeal to the tribunal under paragraph 11, recoverable under an order of the tribunal.

Service of demand

9

(1) A demand for expenses recoverable under paragraph 8, together with interest in accordance with paragraph 10, must be served on each person from whom the local housing authority are seeking to recover them.

(2) If no appeal is brought, the demand becomes operative at the end of the period of 21 days beginning with the date of service of the demand.

(3) A demand which becomes operative under sub-paragraph (2) is final and conclusive as to matters which could have been raised on an appeal.

(4) Paragraph 11 deals with appeals against demands.

Interest

10

Expenses in respect of which a demand is served carry interest, at such reasonable rate as the local housing authority may determine, from the date of service until payment of all sums due under the demand.

Appeals

11

(1) A person on whom a demand for the recovery of expenses has been served may appeal to the appropriate tribunal against the demand.

(2) An appeal must be made within the period of 21 days beginning with the date of service of the demand or copy of it under paragraph 9.

(3) The appropriate tribunal may allow an appeal to be made to it after the end of the period mentioned in sub-paragraph (2) if it is satisfied that there is a good reason for the failure to appeal before the end of that period (and for any delay since then in applying for permission to appeal out of time).

(4) Where the demand relates to action taken by virtue of paragraph 3(3), an appeal may be brought on the ground that reasonable progress was being made towards compliance with the improvement notice when the local housing authority gave notice under paragraph 4 of their intention to enter and take the action.

This does not affect the generality of sub-paragraph (1).

(5) The tribunal may, on an appeal, make such order confirming, quashing or varying the demand as it considers appropriate.

(6) A demand against which an appeal is brought becomes operative as follows—

(a) if a decision is given on the appeal which confirms the demand and the period within which an appeal to the Upper Tribunal may be brought expires without such an appeal having been brought, the demand becomes operative at end of that period;

(b) if an appeal to the Upper Tribunal is brought and a decision is given on the appeal which confirms the demand, the demand becomes operative at the time of that decision.

(7) For the purposes of sub-paragraph (6)—

(a) the withdrawal of an appeal has the same effect as a decision which confirms the demand, and

(b) references to a decision which confirms the demand are to a decision which confirms it with or without variation.

(8) No question may be raised on appeal under this paragraph which might have been raised on an appeal against the improvement notice.

Expenses and interest recoverable from occupiers

12

(1) Where a demand becomes operative by virtue of paragraph 9(2) or 11(6), the local housing authority may serve a recovery notice on any person—

(a) who occupies the premises concerned, or part of those premises, as the tenant or licensee of the person on whom the demand was served under paragraph 9(1); and

(b) who, by virtue of his tenancy or licence, pays rent or any sum in the nature of rent to the person on whom the demand was served.

(2) A recovery notice is a notice—

(a) stating the amount of expenses recoverable by the local housing authority; and

(b) requiring all future payments by the tenant or licensee of rent or sums in the nature of rent (whether already accrued due or not) to be made direct to the authority until the expenses recoverable by the authority, together with any accrued interest on them, have been duly paid.

(3) In the case of a demand which was served on any person as agent or trustee for another person (“the principal”), sub-paragraph (1) has effect as if the references in paragraphs (a) and (b) to the person on whom the demand was served were references to that person or the principal.

(4) The effect of a recovery notice, once served under sub-paragraph (1), is to transfer to the local housing authority the right to recover, receive and give a discharge for the rent or sums in the nature of rent.

(5) This is subject to any direction to the contrary contained in a further notice served by the local housing authority on the tenant or licensee.

(6) In addition, the right to recover, receive and give a discharge for any rent or sums in the nature of rent is postponed to any right in respect of that rent or those sums which may at any time be vested in a superior landlord by virtue of a notice under section 6 of the Law of Distress Amendment Act 1908 (c. 53).

Expenses and interest to be a charge on the premises

13

(1) Until recovered, the expenses recoverable by the local housing authority, together with any accrued interest on them, are a charge on the premises to which the improvement notice related.

(2) The charge takes effect when the demand for the expenses and interest becomes operative by virtue of paragraph 9(2) or 11(6).

(3) For the purpose of enforcing the charge, the local housing authority have the same powers and remedies, under the Law of Property Act 1925 (c. 20) and otherwise, as if they were mortgagees by deed having powers of sale and lease, of accepting surrenders of leases and of appointing a receiver.

(4) The power of appointing a receiver is exercisable at any time after the end of one month beginning with the date when the charge takes effect.

Recovery of expenses and interest from other persons profiting from taking of action

14

(1) Sub-paragraph (2) applies if, on an application to the appropriate tribunal, the local housing authority satisfy the tribunal that—

(a) the expenses and interest have not been and are unlikely to be recovered; and

(b) a person is profiting by the taking of the action under paragraph 3 in respect of which the expenses were incurred in that he is obtaining rents or other payments which would not have been obtainable if the number of persons living in the premises was limited to that appropriate for the premises in their state before the action was taken.

(2) The tribunal may, if satisfied that the person concerned has had proper notice of the application, order him to make such payments to the local housing authority as the tribunal considers to be just.

SCHEDULE 4

Conditions to be included in licences under Part 2 or 3

1

(1) A licence under Part 2 or 3 must include the following conditions.

(2) Conditions requiring the licence holder, if gas is supplied to the house, to produce to the local housing authority annually for their inspection a gas safety certificate obtained in respect of the house within the last 12 months.

(3) Conditions requiring the licence holder—

(a) to keep electrical appliances and furniture made available by him in the house in a safe condition;

(b) to supply the authority, on demand, with a declaration by him as to the safety of such appliances and furniture;

(i) to ensure that every electrical installation in the house is in proper working order and safe for continued use; and

(ii) to supply the authority, on demand, with a declaration by him as to the safety of such installations;

(d) for the purposes of paragraph (c) “electrical installation” has the meaning given in regulation 2(1) of the Building Regulations 2010.

(4) Conditions requiring the licence holder—

(za) where the house is in England—

(i) to ensure that a smoke alarm is installed on each storey of the house on which there is a room used wholly or partly as living accommodation, and

(ii) to keep each such alarm in proper working order;

(a) where the house is in Wales, to ensure that smoke alarms are installed in the house and to keep them in proper working order;

(b) in either case, to supply the authority, on demand, with a declaration by him as to the condition and positioning of such alarms.

(4A) Where the house is in England, conditions requiring the licence holder—

(a) to ensure that a carbon monoxide alarm is installed in any room in the house which is used wholly or partly as living accommodation and contains a fixed combustion appliance other than a gas cooker;

(b) to keep any such alarm in proper working order; and

(5) Conditions requiring the licence holder to supply to the occupiers of the house a written statement of the terms on which they occupy it.

(6) In sub-paragraph (4A) “room” includes a hall or landing.

(7) For the purposes of sub-paragraphs (4) and (4A), a bathroom or lavatory is to be treated as a room used as living accommodation.

Additional conditions to be included in licences under Part 3

2

A licence under Part 3 must include conditions requiring the licence holder to demand references from persons who wish to occupy the house.

Power to prescribe conditions

3

The appropriate national authority may by regulations amend this Schedule so as to alter (by the addition or removal of conditions) the conditions which must be included—

(a) in a licence under Part 2 or 3, or

(b) only in a licence under one of those Parts.

Interpretation

4

In this Schedule “the house” means the HMO or Part 3 house in respect of which the licence is granted.

SCHEDULE 5

Part 1 — Procedure relating to grant or refusal of licences

Requirements before grant of licence

1

Before granting a licence, the local housing authority must—

(a) serve a notice under this paragraph, together with a copy of the proposed licence, on the applicant for the licence and each relevant person, and

(b) consider any representations made in accordance with the notice and not withdrawn.

2

The notice under paragraph 1 must state that the authority are proposing to grant the licence and set out—

(a) the reasons for granting the licence,

(b) the main terms of the licence, and

3

(1) This paragraph applies if, having considered representations made in accordance with a notice under paragraph 1 or this paragraph, the local housing authority propose to grant a licence with modifications.

(2) Before granting the licence the authority must—

(a) serve a notice under this paragraph on the applicant for the licence and each relevant person, and

(b) consider any representations made in accordance with the notice and not withdrawn.

4

The notice under paragraph 3 must set out—

(a) the proposed modifications,

(b) the reasons for them, and

Requirements before refusal to grant licence

5

Before refusing to grant a licence, the local housing authority must—

(a) serve a notice under this paragraph on the applicant for the licence and each relevant person, and

(b) consider any representations made in accordance with the notice and not withdrawn.

6

The notice under paragraph 5 must state that the local housing authority are proposing to refuse to grant the licence and set out—

(a) the reasons for refusing to grant the licence, and

(b) the end of the consultation period.

Requirements following grant or refusal of licence

7

(1) This paragraph applies where the local housing authority decide to grant a licence.

(2) The local housing authority must serve on the applicant for the licence (and, if different, the licence holder) and each relevant person—

(a) a copy of the licence, and

(b) a notice setting out—

(i) the reasons for deciding to grant the licence and the date on which the decision was made,

(ii) the right of appeal against the decision under Part 3 of this Schedule, and

(iii) the period within which an appeal may be made (see paragraph 33(1)).

(3) The documents required to be served under sub-paragraph (2) must be served within the period of seven days beginning with the day on which the decision is made.

8

(1) This paragraph applies where the local housing authority refuse to grant a licence.

(2) The local housing authority must serve on the applicant for the licence and each relevant person a notice setting out—

(a) the authority’s decision not to grant the licence,

(b) the reasons for the decision and the date on which it was made,

(d) the period within which an appeal may be made (see paragraph 33(1)).

(3) The notices required to be served under sub-paragraph (2) must be served within the period of seven days beginning with the day on which the decision is made.

Exceptions from requirements in relation to grant or refusal of licences

9

The requirements of paragraph 3 (and those of paragraph 1) do not apply if the local housing authority—

(a) have already served a notice under paragraph 1 but not paragraph 3 in relation to the proposed licence, and

(b) consider that the modifications which are now being proposed are not material in any respect.

10

The requirements of paragraph 3 (and those of paragraph 1) do not apply if the local housing authority—

(a) have already served notices under paragraphs 1 and 3 in relation to the matter concerned, and

(b) consider that the further modifications which are now being proposed do not differ in any material respect from the modifications in relation to which a notice was last served under paragraph 3.

11

Paragraphs 5, 6 and 8 do not apply to a refusal to grant a licence on particular terms if the local housing authority are proposing to grant the licence on different terms.

Meaning of “the end of the consultation period”

12

(1) In this Part of this Schedule “the end of the consultation period” means the last day for making representations in respect of the matter in question.

(2) The end of the consultation period must be—

(a) in the case of a notice under paragraph 1 or 5, a day which is at least 14 days after the date of service of the notice; and

(b) in the case of a notice under paragraph 3, a day which is at least 7 days after the date of service of the notice.

(3) In sub-paragraph (2) “the date of service”of a notice means, in a case where more than one notice is served, the date on which the last of the notices is served.

Meaning of “licence” and “relevant person”

13

(1) In this Part of this Schedule “licence” means a licence under Part 2 or 3 of this Act.

(2) In this Part of this Schedule “relevant person”, in relation to a licence under Part 2 or 3 of this Act, means any person (other than a person excluded by sub-paragraph (3))—

(a) who, to the knowledge of the local housing authority concerned, is—

(i) a person having an estate or interest in the HMO or Part 3 house in question, or

(ii) a person managing or having control of that HMO or Part 3 house (and not falling within sub-paragraph (i)), or

(b) on whom any restriction or obligation is or is to be imposed by the licence in accordance with section 67(5) or 90(6).

(3) The persons excluded by this sub-paragraph are—

(a) the applicant for the licence and (if different) the licence holder, and

(b) any tenant under a lease with an unexpired term of 3 years or less.

Part 2 — Procedure relating to variation or revocation of licences

Variation of licences

14

Before varying a licence, the local housing authority must—

(a) serve a notice under this paragraph on the licence holder and each relevant person, and

(b) consider any representations made in accordance with the notice and not withdrawn.

15

The notice under paragraph 14 must state that the local housing authority are proposing to make the variation and set out—

(a) the effect of the variation,

(b) the reasons for the variation, and

16

(1) This paragraph applies where the local housing authority decide to vary a licence.

(2) The local housing authority must serve on the licence holder and each relevant person—

(a) a copy of the authority’s decision to vary the licence, and

(b) a notice setting out—

(i) the reasons for the decision and the date on which it was made,

(ii) the right of appeal against the decision under Part 3 of this Schedule, and

(iii) the period within which an appeal may be made (see paragraph 33(2)).

(3) The documents required to be served under sub-paragraph (2) must be served within the period of seven days beginning with the day on which the decision is made.

Exceptions from requirements of paragraph 14

17

The requirements of paragraph 14 do not apply if—

(a) the local housing authority consider that the variation is not material, or

(b) the variation is agreed by the licence holder and the local housing authority consider that it would not be appropriate to comply with the requirements of that paragraph.

18

The requirements of paragraph 14 do not apply if the local housing authority—

(a) have already served a notice under that paragraph in relation to a proposed variation, and

(b) consider that the variation which is now being proposed is not materially different from the previous proposed variation.

Refusal to vary a licence

19

Before refusing to vary a licence, the local housing authority must—

(a) serve a notice under this paragraph on the licence holder and each relevant person, and

(b) consider any representations made in accordance with the notice and not withdrawn.

20

The notice under paragraph 19 must state that the authority are proposing to refuse to vary the licence and set out—

(a) the reasons for refusing to vary the licence, and

(b) the end of the consultation period.

21

(1) This paragraph applies where the local housing authority refuse to vary a licence.

(2) The authority must serve on the licence holder and each relevant person a notice setting out—

(a) the authority’s decision not to vary the licence,

(b) the reasons for the decision and the date on which it was made,

(d) the period within which an appeal may be made (see paragraph 33(2)).

(3) The documents required to be served under sub-paragraph (2) must be served within the period of seven days beginning with the day on which the decision is made.

Revocation of licences

22

Before revoking a licence, the local housing authority must—

(a) serve a notice on the licence holder under this paragraph and each relevant person, and

(b) consider any representations made in accordance with the notice and not withdrawn.

23

The notice under paragraph 22 must state that the authority are proposing to revoke the licence and set out—

(a) the reasons for the revocation, and

(b) the end of the consultation period.

24

(1) This paragraph applies where the local housing authority decide to revoke a licence.

(2) The authority must serve on the licence holder and each relevant person—

(a) a copy of the authority’s decision to revoke the licence, and

(b) a notice setting out—

(i) the reasons for the decision and the date on which it was made,

(ii) the right of appeal against the decision under Part 3 of this Schedule, and

(iii) the period within which an appeal may be made (see paragraph 33(2)).

(3) The documents required to be served under sub-paragraph (2) must be served within the period of seven days beginning with the day on which the decision is made.

Exception from requirements of paragraph 22

25

The requirements of paragraph 22 do not apply if the revocation is agreed by the licence holder and the local housing authority consider that it would not be appropriate to comply with the requirements of that paragraph.

Refusal to revoke a licence

26

Before refusing to revoke a licence, the local housing authority must—

(a) serve a notice under this paragraph on the licence holder and each relevant person, and

(b) consider any representations made in accordance with the notice and not withdrawn.

27

The notice under paragraph 26 must state that the authority are proposing to refuse to revoke the licence and set out—

(a) the reasons for refusing to revoke the licence, and

(b) the end of the consultation period.

28

(1) This paragraph applies where the local housing authority refuse to revoke a licence.

(2) The authority must serve on the licence holder and each relevant person a notice setting out—

(a) the authority’s decision not to revoke the licence,

(b) the reasons for the decision and the date on which it was made,

(d) the period within which an appeal may be made (see paragraph 33(2)).

(3) The notices required to be served under sub-paragraph (2) must be served within the period of seven days beginning with the day on which the decision is made.

Meaning of “the end of the consultation period”

29

(1) In this Part of this Schedule “the end of the consultation period” means the last day on which representations may be made in respect of the matter in question.

(2) That date must be at least 14 days after the date of service of the notice in question.

(3) In sub-paragraph (2) “the date of service”of a notice means, in a case where more than one notice is served, the date on which the last of the notices is served.

Meaning of “licence” and “relevant person”

30

(1) In this Part of this Schedule “licence” means a licence under Part 2 or 3 of this Act.

(2) In this Part of this Schedule “relevant person”, in relation to a licence under Part 2 or 3 of this Act, means any person (other than a person excluded by sub-paragraph (3))—

(a) who, to the knowledge of the local housing authority concerned, is—

(i) a person having an estate or interest in the HMO or Part 3 house in question, or

(ii) a person managing or having control of that HMO or Part 3 house (and not falling within sub-paragraph (i)), or

(b) on whom any restriction or obligation is or is to be imposed by the licence in accordance with section 67(5) or 90(6).

(3) The persons excluded by this sub-paragraph are—

(a) the licence holder, and

(b) any tenant under a lease with an unexpired term of 3 years or less.

Part 3 — Appeals against licence decisions

Right to appeal against refusal or grant of licence

31

(1) The applicant or any relevant person may appeal to the appropriate tribunal against a decision by the local housing authority on an application for a licence—

(a) to refuse to grant the licence, or

(b) to grant the licence.

(2) An appeal under sub-paragraph (1)(b) may, in particular, relate to any of the terms of the licence.

Right to appeal against decision or refusal to vary or revoke licence

32

(1) The licence holder or any relevant person may appeal to the appropriate tribunal against a decision by the local housing authority—

(a) to vary or revoke a licence, or

(b) to refuse to vary or revoke a licence.

(2) But this does not apply to the licence holder in a case where the decision to vary or revoke the licence was made with his agreement.

Time limits for appeals

33

(1) Any appeal under paragraph 31 against a decision to grant, or (as the case may be) to refuse to grant, a licence must be made within the period of 28 days beginning with the date specified in the notice under paragraph 7 or 8 as the date on which the decision was made.

(2) Any appeal under paragraph 32 against a decision to vary or revoke, or (as the case may be) to refuse to vary or revoke, a licence must be made within the period of 28 days beginning with the date specified in the notice under paragraph 16, 21, 24 or 28 as the date on which the decision was made.

(3) The appropriate tribunal may allow an appeal to be made to it after the end of the period mentioned in sub-paragraph (1) or (2) if it is satisfied that there is a good reason for the failure to appeal before the end of that period (and for any delay since then in applying for permission to appeal out of time).

Powers of residential property tribunal hearing appeal

34

(1) This paragraph applies to appeals to the appropriate tribunal under paragraph 31 or 32.

(2) An appeal—

(a) is to be by way of a re-hearing, but

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

(3) The tribunal may confirm, reverse or vary the decision of the local housing authority.

(4) On an appeal under paragraph 31 the tribunal may direct the authority to grant a licence to the applicant for the licence on such terms as the tribunal may direct.

“The operative time” for the purposes of section 69(6), 70(8), 92(3) or 93(5)

35

(1) This paragraph defines “the operative time” for the purposes of—

(a) section 69(6) or 70(8) (variation or revocation of licence under Part 2 of this Act), or

(b) section 92(3) or 93(5) (variation or revocation of licence under Part 3 of this Act).

(2) If the period of 28 days mentioned in paragraph 33(2) has expired without an appeal having been made under paragraph 32, “the operative time”is the end of that period.

(3) If an appeal is made under paragraph 32 within that period and a decision is given on the appeal which confirms the variation or revocation, “the operative time”is as follows—

(a) if the period within which an appeal to the Upper Tribunal may be brought expires without such an appeal having been brought, “the operative time” is the end of that period;

(b) if an appeal to the Upper Tribunal is brought, “the operative time” is the time when a decision is given on the appeal which confirms the variation or revocation.

(4) For the purposes of sub-paragraph (3)—

(a) the withdrawal of an appeal has the same effect as a decision confirming the variation or revocation appealed against; and

(b) references to a decision which confirms a variation are to a decision which confirms it with or without variation.

Meaning of “licence” and “relevant person”

36

(1) In this Part of this Schedule “licence” means a licence under Part 2 or 3 of this Act.

(2) In this Part of this Schedule “relevant person”, in relation to a licence under Part 2 or 3 of this Act, means any person (other than a person excluded by sub-paragraph (3))—

(a) who is—

(i) a person having an estate or interest in the HMO or Part 3 house concerned, or

(ii) a person managing or having control of that HMO or Part 3 house (and not falling within sub-paragraph (i)), or

(b) on whom any restriction or obligation is or is to be imposed by the licence in accordance with section 67(5) or 90(6).

(3) The persons excluded by this sub-paragraph are—

(a) the applicant for the licence and (if different) the licence holder, and

(b) any tenant under a lease with an unexpired term of 3 years or less.

SCHEDULE 6

Part 1 — Procedure relating to making of management orders

Requirements before making final management order

1

Before making a final management order, the local housing authority must—

(a) serve a copy of the proposed order, together with a notice under this paragraph, on each relevant person; and

(b) consider any representations made in accordance with the notice and not withdrawn.

2

The notice under paragraph 1 must state that the authority are proposing to make a final management order and set out—

(a) the reasons for making the order;

(b) the main terms of the proposed order (including those of the management scheme to be contained in it); and

3

(1) This paragraph applies if, having considered representations made in accordance with a notice under paragraph 1 or this paragraph, the local housing authority propose to make a final management order with modifications.

(2) Before making the order, the authority must—

(a) serve a notice under this paragraph on each relevant person; and

(b) consider any representations made in accordance with the notice and not withdrawn.

4

The notice under paragraph 3 must set out—

(a) the proposed modifications;

(b) the reasons for them; and

Exceptions from requirements relating to making of final management order

5

The requirements of paragraph 3 (and those of paragraph 1) do not apply if the local housing authority—

(a) have already served notice under paragraph 1 but not paragraph 3 in relation to the proposed final management order; and

(b) consider that the modifications which are now being proposed are not material in any respect.

6

The requirements of paragraph 3 (and those of paragraph 1) do not apply if the local housing authority—

(a) have already served notices under paragraphs 1 and 3 in relation to the matter concerned; and

(b) consider that the further modifications which are now being proposed do not differ in any material respect from the modifications in relation to which a notice was last served under paragraph 3.

Requirements following making of interim or final management order

7

(1) This paragraph applies where the local housing authority make an interim management order or a final management order.

(2) As soon as practicable after the order is made, the authority must serve on the occupiers of the house—

(a) a copy of the order, and

(b) a notice under this sub-paragraph.

(3) Those documents are to be regarded as having been served on the occupiers if they are fixed to a conspicuous part of the house.

(4) The notice under sub-paragraph (2) must set out—

(a) the reasons for making the order and the date on which it was made,

(b) the general effect of the order, and

(c) the date on which the order is to cease to have effect in accordance with section 105(4), (5) or (7A) or 114(3), (4) or (4A) (or, if applicable, how the date mentioned in section 105(6) is to be determined),

and (if it is a final management order) give a general description of the way in which the house is to be managed by the authority in accordance with the management scheme contained in the order.

(5) The authority must also serve a copy of the order, together with a notice under this sub-paragraph, on each relevant person.

(6) The notice under sub-paragraph (5) must comply with sub-paragraph (4) and also contain information about—

(a) the right of appeal against the order under Part 3 of this Schedule, and

(b) the period within which any such appeal may be made (see paragraph 25(2)).

(7) The documents required to be served on each relevant person under sub-paragraph (5) must be served within the period of seven days beginning with the day on which the order is made.

Meaning of “the end of the consultation period” and “relevant person”

8

(1) In this Part of this Schedule “the end of the consultation period” means the last day for making representations in respect of the matter in question.

(2) The end of the consultation period must be—

(a) in the case of a notice under paragraph 1, a day which is at least 14 days after the date of service of the notice; and

(b) in the case of a notice under paragraph 3, a day which is at least 7 days after the date of service of the notice.

(3) In sub-paragraph (2) “the date of service”of a notice means, in a case where more than one notice is served, the date on which the last of the notices is served.

(4) In this Part of this Schedule “relevant person” means any person who, to the knowledge of the local housing authority, is—

(a) a person having an estate or interest in the house or part of it (but who is not a tenant under a lease with an unexpired term of 3 years or less), or

(b) any other person who (but for the order) would be a person managing or having control of the house or part of it.

Part 2 — Procedure relating to variation or revocation of management orders

Variation of management orders

9

Before varying an interim or final management order, the local housing authority must—

(a) serve a notice under this paragraph on each relevant person, and

(b) consider any representations made in accordance with the notice and not withdrawn.

10

The notice under paragraph 9 must state that the authority are proposing to make the variation and specify—

(a) the effect of the variation,

(b) the reasons for the variation, and

11

(1) This paragraph applies where the local housing authority decide to vary an interim or final management order.

(2) The local housing authority must serve on each relevant person—

(a) a copy of the authority’s decision to vary the order, and

(b) a notice setting out—

(i) the reasons for the decision and the date on which it was made,

(ii) the right of appeal against the decision under Part 3 of this Schedule, and

(iii) the period within which an appeal may be made (see paragraph 29(2)).

(3) The documents required to be served on each relevant person under sub-paragraph (2) must be served within the period of seven days beginning with the day on which the decision is made.

Exceptions from requirements of paragraph 9

12

The requirements of paragraph 9 do not apply if the local housing authority consider that the variation is not material.

13

The requirements of paragraph 9 do not apply if the local housing authority—

(a) have already served a notice under that paragraph in relation to a proposed variation; and

(b) consider that the variation which is now being proposed is not materially different from the previous proposed variation.

Refusal to vary interim or final management order

14

Before refusing to vary an interim or final management order, the local housing authority must—

(a) serve a notice under this paragraph on each relevant person, and

(b) consider any representations made in accordance with the notice and not withdrawn.

15

The notice under paragraph 14 must state that the authority are proposing to refuse to make the variation and set out—

(a) the reasons for refusing to make the variation, and

(b) the end of the consultation period.

16

(1) This paragraph applies where the local housing authority refuse to vary an interim or final management order.

(2) The authority must serve on each relevant person a notice setting out—

(a) the authority’s decision not to vary the order;

(b) the reasons for the decision and the date on which it was made;

(d) the period within which an appeal may be made (see paragraph 29(2)).

(3) The notices required to be served on each relevant person under sub-paragraph (2) must be served within the period of seven days beginning with the day on which the decision is made.

Revocation of management orders

17

Before revoking an interim or final management order, the local housing authority must—

(a) serve a notice under this paragraph on each relevant person, and

(b) consider any representations made in accordance with the notice and not withdrawn.

18

The notice under paragraph 17 must state that the authority are proposing to revoke the order and specify—

(a) the reasons for the revocation, and

(b) the end of the consultation period.

19

(1) This paragraph applies where the local housing authority decide to revoke an interim or final management order.

(2) The authority must serve on each relevant person—

(a) a copy of the authority’s decision to revoke the order; and

(b) a notice setting out—

(i) the reasons for the decision and the date on which it was made;

(ii) the right of appeal against the decision under Part 3 of this Schedule; and

(iii) the period within which an appeal may be made (see paragraph 29(2)).

(3) The documents required to be served on each relevant person under sub-paragraph (2) must be served within the period of seven days beginning with the day on which the decision is made.

Refusal to revoke management order

20

Before refusing to revoke an interim or final management order, the local housing authority must—

(a) serve a notice under this paragraph on each relevant person; and

(b) consider any representations made in accordance with the notice and not withdrawn.

21

The notice under paragraph 20 must state that the authority are proposing to refuse to revoke the order and set out—

(a) the reasons for refusing to revoke the order, and

(b) the end of the consultation period.

22

(1) This paragraph applies where the local housing authority refuse to revoke an interim or final management order.

(2) The authority must serve on each relevant person a notice setting out—

(a) the authority’s decision not to revoke the order;

(b) the reasons for the decision and the date on which it was made;

(d) the period within which an appeal may be made (see paragraph 29(2)).

(3) The notices required to be served on each relevant person under sub-paragraph (2) must be served within the period of seven days beginning with the day on which the decision is made.

Meaning of “the end of the consultation period” and “relevant person”

23

(1) In this Part of this Schedule “the end of the consultation period” means the last day for making representations in respect of the matter in question.

(2) The end of the consultation period must be a day which is at least 14 days after the date of service of the notice.

(3) In sub-paragraph (2) “the date of service”of a notice means, in a case where more than one notice is served, the date on which the last of the notices is served.

(4) In this Part of this Schedule “relevant person” means any person who, to the knowledge of the local housing authority, is—

(a) a person having an estate or interest in the house or part of it (but who is not a tenant under a lease with an unexpired term of 3 years or less), or

(b) any other person who (but for the order) would be a person managing or having control of the house or part of it.

Part 3 — Appeals against decisions relating to management orders

Right to appeal against making of order etc.

24

(1) A relevant person may appeal to the appropriate tribunal against—

(a) a decision of the local housing authority to make an interim or final management order, or

(b) the terms of such an order (including, if it is a final management order, those of the management scheme contained in it).

(2) Except to the extent that an appeal may be made in accordance with sub-paragraphs (3) and (4), sub-paragraph (1) does not apply to an interim management order made under section 102(4) or (7) or in accordance with a direction given under paragraph 26(5).

(3) An appeal may be made under sub-paragraph (1)(b) on the grounds that the terms of an interim management order do not provide for one or both of the matters mentioned in section 110(5)(a) and (b) (which relate to payments of surplus rent etc.).

(4) Where an appeal is made under sub-paragraph (1)(b) only on those grounds—

(a) the appeal may be brought at any time while the order is in force (with the result that nothing in sub-paragraph (5) or paragraph 25 applies in relation to the appeal); and

(b) the powers of the appropriate tribunal under paragraph 26 are limited to determining whether the order should be varied by the tribunal so as to include a term providing for the matter or matters in question, and (if so) what provision should be made by the term.

(5) If no appeal is brought against an interim or final management order under this paragraph within the time allowed by paragraph 25 for making such an appeal, the order is final and conclusive as to the matters which could have been raised on appeal.

Time limits for appeals under paragraph 24

25

(1) This paragraph applies in relation to an appeal under paragraph 24 in respect of an interim or final management order.

(2) Any such appeal must be made within the period of 28 days beginning with the date specified in the notice under paragraph 7(5) as the date on which the order was made.

(3) The appropriate tribunal may allow an appeal to be made to it after the end of the period mentioned in sub-paragraph (2) if it is satisfied that there is a good reason for the failure to appeal before the end of that period (and for any delay since then in applying for permission to appeal out of time).

Powers of residential property tribunal on appeal under paragraph 24

26

(1) This paragraph applies to an appeal to the appropriate tribunal under paragraph 24 in respect of an interim or final management order.

(2) The appeal—

(a) is to be by way of a re-hearing, but

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

(3) The tribunal may confirm or vary the order or revoke it —

(a) (in the case of an interim management order) as from a date specified in the tribunal’s order, or

(b) (in the case of a final management order) as from the date of the tribunal’s order.

(4) If —

(a) the tribunal revokes an interim or final management order,

(b) it appears to the tribunal that, on the revocation of the order, the house will be required to be licensed under Part 2 or 3 of this Act, and

the tribunal must direct the local housing authority to grant such a licence to such person and on such terms as the tribunal may direct.

(4A) An interim management order may not be revoked under this paragraph if—

(a) the immediate landlord is subject to a banning order under section 16 of the Housing and Planning Act 2016,

(b) there is in force an agreement which, under section 108, has effect as a lease or licence granted by the authority, and

(c) revoking the interim management order specified in the order would cause the immediate landlord to breach the banning order because of the effect of section 130(2)(b).

(4B) In a case where sub-paragraph (4A) would otherwise prevent the tribunal from revoking the order with effect from a particular date, the tribunal may require the local housing authority to exercise any power it has to bring an agreement mentioned in that sub-paragraph to an end.

(5) If the tribunal revokes a final management order, the tribunal may direct the local housing authority to make an interim management order in respect of the house or part of it on such terms as the tribunal may direct.

This applies despite section 102(9).

(6) If the tribunal revokes a final management order, the tribunal may direct the local housing authority to serve a temporary exemption notice under section 62 or 86 in respect of the house that comes into force on such date as the tribunal directs.

(7) The revocation of an interimmanagement order by the tribunal does not affect the validity of anything previously done in pursuance of the order.

“The operative time” for the purposes of section 114(2)

27

(1) This paragraph defines “the operative time” for the purposes of section 114(2).

(2) If no appeal is made under paragraph 24 before the end of the period of 28 days mentioned in paragraph 25(2), “the operative time”is the end of that period.

(3) If an appeal is made under paragraph 24 before the end of that period, and a decision is given on the appeal which confirms the order, “the operative time”is as follows—

(a) if the period within which an appeal to the Upper Tribunal may be brought expires without such an appeal having been brought, “the operative time” is the end of that period;

(b) if an appeal to the Upper Tribunal is brought, “the operative time” is the time when a decision is given on the appeal which confirms the order.

(4) For the purposes of sub-paragraph (3)—

(a) the withdrawal of an appeal has the same effect as a decision which confirms the order, and

(b) references to a decision which confirms the order are to a decision which confirms it with or without variation.

Right to appeal against decision or refusal to vary or revoke interim management order

28

A relevant person may appeal to the appropriate tribunal against—

(a) a decision of a local housing authority to vary or revoke an interim or final management order, or

(b) a refusal of a local housing authority to vary or revoke an interim or final management order.

Time limits for appeals under paragraph 28

29

(1) This paragraph applies in relation to an appeal under paragraph 28 against a decision to vary or revoke, or (as the case may be) to refuse to vary or revoke, an interim or final management order.

(2) Any such appeal must be made before the end of the period of 28 days beginning with the date specified in the notice under paragraph 11, 16, 19 or 22 as the date on which the decision concerned was made.

(3) The appropriate tribunal may allow an appeal to be made to it after the end of the period mentioned in sub-paragraph (2) if it is satisfied that there is a good reason for the failure to appeal before the end of that period (and for any delay since then in applying for permission to appeal out of time).

Powers of residential property tribunal on appeal under paragraph 28

30

(1) This paragraph applies to an appeal to the appropriate tribunal under paragraph 28 against a decision to vary or revoke, or (as the case may be) to refuse to vary or revoke, an interim or final management order.

(2) Paragraph 26(2) applies to such an appeal as it applies to an appeal under paragraph 24.

(3) The tribunal may confirm, reverse or vary the decision of the local housing authority.

(4) If the appeal is against a decision of the authority to refuse to revoke the order, the tribunal may make an order revoking the order as from a date specified in its order.

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

“The operative time” for the purposes of section 111(2), 112(2), 121(2) or 122(2)

31

(1) This paragraph defines “the operative time” for the purposes of—

(a) section 111(2) or 112(2) (variation or revocation of interim management order), or

(b) section 121(2) or 122(2) (variation or revocation of final management order).

(2) If no appeal is made under paragraph 28 before the end of the period of 28 days mentioned in paragraph 29(2), “the operative time”is the end of that period.

(3) If an appeal is made under paragraph 28 within that period, and a decision is given on the appeal which confirms the variation or revocation, “the operative time”is as follows—

(a) if the period within which an appeal to the Upper Tribunal may be brought expires without such an appeal having been brought, “the operative time” is the end of that period;

(b) if an appeal to the Upper Tribunal is brought, “the operative time” is the time when a decision is given on the appeal which confirms the variation or revocation.

(4) For the purposes of sub-paragraph (3)—

(a) the withdrawal of an appeal has the same effect as a decision which confirms the variation or revocation appealed against; and

(b) references to a decision which confirms a variation are to a decision which confirms it with or without variation.

Right to appeal against decision in respect of compensation payable to third parties

32

(1) This paragraph applies where a local housing authority have made a decision under section 128 as to whether compensation should be paid to a third party in respect of any interference with his rights in consequence of an interim or final management order.

(2) The third party may appeal to the appropriate tribunal against—

(a) a decision by the authority not to pay compensation to him, or

(b) a decision of the authority so far as relating to the amount of compensation that should be paid.

Time limits for appeals under paragraph 32

33

(1) This paragraph applies in relation to an appeal under paragraph 32 against a decision of a local housing authority not to pay compensation to a third party or as to the amount of compensation to be paid.

(2) Any such appeal must be made within the period of 28 days beginning with the date the authority notifies the third party under section 128(2).

(3) The appropriate tribunal may allow an appeal to be made to it after the end of the period mentioned in sub-paragraph (2) if it is satisfied that there is good reason for the failure to appeal before the end of that period (and for any delay since then in applying for permission to appeal out of time).

Powers of residential property tribunal on appeal under paragraph 32

34

(1) This paragraph applies in relation to an appeal under paragraph 32 against a decision of a local housing authority not to pay compensation to a third party or as to the amount of compensation to be paid.

(2) The appeal—

(a) is to be by way of re-hearing, but

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

(3) The tribunal may confirm, reverse or vary the decision of the local housing authority.

(4) Where the tribunal reverses or varies a decision of the authority in respect of a final management order, it must make an order varying the management scheme contained in the final management order accordingly.

Meaning of “relevant person”

35

In this Part of this Schedule “relevant person” means—

(a) any person who has an estate or interest in the house or part of it (but is not a tenant under a lease with an unexpired term of 3 years or less), or

(b) any other person who (but for the order) would be a person managing or having control of the house or part of it.

SCHEDULE 7

Part 1 — Interim EDMOs

Operation of interim EDMOs

1

(1) This paragraph deals with the time when an interim EDMO comes into force or ceases to have effect.

(2) The order comes into force when it is made.

(3) The order ceases to have effect at the end of the period of 12 months beginning with the date on which it is made, unless it ceases to have effect at some other time as mentioned below.

(4) If the order provides that it is to cease to have effect on a date falling before the end of that period, it accordingly ceases to have effect on that date.

(5) Sub-paragraphs (6) and (7) apply where—

(a) a final EDMO (“the final EDMO”) has been made under section 136 so as to replace the order (“the interim EDMO”), but

(b) the final EDMO has not come into force because of an appeal to the appropriate tribunal under paragraph 26 against the making of the final EDMO.

(6) If the date on which the final EDMO comes into force in relation to the dwelling following the disposal of the appeal is later than the date on which the interim EDMO would cease to have effect apart from this sub-paragraph, the interim EDMO continues in force until that later date.

(7) If, on the application of the authority, the tribunal makes an order providing for the interim EDMO to continue in force, pending the disposal of the appeal, until a date later than that on which the interim EDMO would cease to have effect apart from this sub-paragraph, the interim EDMO accordingly continues in force until that later date.

(8) This paragraph has effect subject to paragraphs 6 and 7 (variation or revocation of orders by authority) and to the power of revocation exercisable by a residential property tribunal on an appeal made under paragraph 30.

General effect of interim EDMOs

2

(1) This paragraph applies while an interim EDMO is in force in relation to a dwelling.

(2) The rights and powers conferred by sub-paragraph (3) are exercisable by the authority in performing their duties under section 135(1) to (3) in respect of the dwelling.

(3) The authority—

(a) have the right to possession of the dwelling (subject to the rights of existing occupiers preserved by paragraph 18(3));

(b) have the right to do (and authorise a manager or other person to do) in relation to the dwelling anything which the relevant proprietor of the dwelling would (but for the order) be entitled to do;

(i) an interest in the dwelling which, as far as possible, has all the incidents of a leasehold, or

(ii) a right in the nature of a licence to occupy part of the dwelling;

(d) may apply to the appropriate tribunal for an order under paragraph 22 determining a lease or licence of the dwelling.

(4) But the authority may not under sub-paragraph (3)(c) create any interest or right in the nature of a lease or licence unless—

(a) consent in writing has been given by the relevant proprietor of the dwelling, and

(b) where the relevant proprietor is a lessee under a lease of the dwelling, the interest or right is created for a term that is less than the term of that lease.

(5) The authority—

(a) do not under this paragraph acquire any estate or interest in the dwelling, and

(b) accordingly are not entitled by virtue of this paragraph to sell, lease, charge or make any other disposition of any such estate or interest.

(6) But, where the relevant proprietor of the dwelling is a lessee under a lease of the dwelling, the authority are to be treated (subject to sub-paragraph (5)(a)) as if they were the lessee instead.

(7) Any enactment or rule of law relating to landlords and tenants or leases applies in relation to—

(a) a lease in relation to which the authority are to be treated as the lessee under sub-paragraph (6), or

(b) a lease to which the authority become a party under paragraph 4(2),

as if the authority were the legal owner of the premises (but this is subject to paragraph 4(4) to (6)).

(8) None of the following, namely—

(a) the authority, or

(b) any person authorised under sub-paragraph (3)(b),

is liable to any person having an estate or interest in the dwelling for anything done or omitted to be done in the performance (or intended performance) of the authority’s duties under section 135(1) to (3) unless the act or omission is due to negligence of the authority or any such person.

(9) An interim EDMO which has come into force is a local land charge.

(10) The authority may apply to the Chief Land Registrar for the entry of an appropriate restriction in the register of title in respect of such an order.

(11) In this paragraph “enactment” includes an enactment comprised in subordinate legislation (within the meaning of the Interpretation Act 1978 (c. 30)).

General effect of interim EDMOs: leases and licences granted by authority

3

(1) This paragraph applies in relation to any interest or right created by the authority under paragraph 2(3)(c).

(2) For the purposes of any enactment or rule of law—

(a) any interest created by the authority under paragraph 2(3)(c)(i) is to be treated as if it were a legal lease, and

(b) any right created by the authority under paragraph 2(3)(c)(ii) is to be treated as if it were a licence to occupy granted by the legal owner of the dwelling,

despite the fact that the authority have no legal estate in the dwelling (see paragraph 2(5)(a)).

(3) Any enactment or rule of law relating to landlords and tenants or leases accordingly applies in relation to any interest created by the authority under paragraph 2(3)(c)(i) as if the authority were the legal owner of the dwelling.

(4) References to leases and licences—

(a) in this Chapter, and

(b) in any other enactment,

accordingly include (where the context permits) interests and rights created by the authority under paragraph 2(3)(c).

(5) The preceding provisions of this paragraph have effect subject to—

(a) paragraph 4(4) to (6), and

(b) any provision to the contrary contained in an order made by the appropriate national authority.

(6) In paragraph 2(5)(b) the reference to leasing does not include the creation of interests under paragraph 2(3)(c)(i).

(7) In this paragraph—

“enactment” has the meaning given by paragraph 2(11);

“legal lease” means a term of years absolute (within section 1(1)(b) of the Law of Property Act 1925 (c. 20)).

General effect of interim EDMOs: relevant proprietor, mortgagees etc.

4

(1) This paragraph applies in relation to—

(a) the relevant proprietor, and

(b) other persons with an estate or interest in the dwelling,

while an interim EDMO is in force in relation to a dwelling.

(2) Where the relevant proprietor is a lessor or licensor under a lease or licence of the dwelling, the lease or licence has effect while the order is in force as if the local housing authority were substituted in it for the lessor or licensor.

(3) Such a lease continues to have effect, as far as possible, as a lease despite the fact that the rights of the local housing authority, as substituted for the lessor, do not amount to an estate in law in the dwelling.

(4) The provisions mentioned in sub-paragraph (5) do not apply to a lease or licence within sub-paragraph (2).

(5) The provisions are—

(a) the provisions which exclude local authority lettings from the Rent Acts, namely—

(i) sections 14 to 16 of the Rent Act 1977 (c. 42), and

(ii) those sections as applied by Schedule 2 to the Rent (Agriculture) Act 1976 (c. 80) and section 5(2) to (4) of that Act; and

(b) section 1(2) of, and paragraph 12 of Part 1 of Schedule 1 to, the Housing Act 1988 (c. 50) (which exclude local authority lettings from Part 1 of that Act).

(6) Nothing in this Chapter has the result that the authority are to be treated as the legal owner of any premises for the purposes of—

(a) section 80 of the Housing Act 1985 (c. 68) (the landlord condition for secure tenancies); or

(b) section 124 of the Housing Act 1996 (c. 52) (introductory tenancies).

(7) The relevant proprietor of the dwelling—

(a) is not entitled to receive any rents or other payments made in respect of occupation of the dwelling;

(b) may not exercise any rights or powers with respect to the management of the dwelling; and

(i) any leasehold interest in the dwelling or a part of it (other than a lease of a reversion), or

(ii) any licence or other right to occupy it.

(8) However (subject to sub-paragraph (7)(c)) nothing in paragraph 2 or this paragraph affects the ability of a person having an estate or interest in the dwelling to make any disposition of that estate or interest.

(9) Nothing in paragraph 2 or this paragraph affects—

(a) the validity of any mortgage relating to the dwelling or any rights or remedies available to the mortgagee under such a mortgage, or

(b) the validity of any lease of the dwelling under which the relevant proprietor is a lessee, or any superior lease, or (subject to paragraph 2(6)) any rights or remedies available to the lessor under such a lease,

except to the extent that any of those rights or remedies would prevent the local housing authority from exercising their power under paragraph 2(3)(c).

(10) In proceedings for the enforcement of any such rights or remedies the court may make such order as it thinks fit as regards the operation of the interim EDMO (including an order quashing it).

Financial arrangements while order is in force

5

(1) This paragraph applies to relevant expenditure of a local housing authority who have made an interim EDMO.

(2) “Relevant expenditure” means—

(a) expenditure incurred by the authority with the consent of the relevant proprietor, or

(b) any other expenditure reasonably incurred by the authority,

in connection with performing their duties under section 135(1) to (3) in respect of the dwelling (including any premiums paid for insurance of the premises).

(3) Rent or other payments which the authority have collected or recovered, by virtue of this Chapter, from persons occupying or having the right to occupy the dwelling may be used by the authority to meet—

(a) relevant expenditure, and

(b) any amounts of compensation payable to a third party by virtue of an order under section 134(4) or 138(2) or to a dispossessed landlord or tenant by virtue of an order under paragraph 22(5).

(4) The authority must pay to the relevant proprietor—

(a) any amount of rent or other payments collected or recovered as mentioned in sub-paragraph (3) that remains after deductions to meet relevant expenditure and any amounts of compensation payable as mentioned in that sub-paragraph, and

(b) (where appropriate) interest on that amount at a reasonable rate fixed by the authority,

and such payments are to be made at such intervals as the authority consider appropriate.

(5) The interim EDMO may provide for—

(a) the rate of interest which is to apply for the purposes of paragraph (b) of sub-paragraph (4); and

(b) the intervals at which payments are to be made under that sub-paragraph.

Paragraph 26(1)(c) enables an appeal to be brought where the order does not provide for both of those matters.

(6) The authority must—

(a) keep full accounts of their income and expenditure in respect of the dwelling; and

(b) afford to the relevant proprietor, and to any other person who has an estate or interest in the dwelling, all reasonable facilities for inspecting, taking copies of and verifying those accounts.

(7) The relevant proprietor may apply to the appropriate tribunal for an order—

(a) declaring that an amount shown in the accounts as expenditure of the authority does not constitute relevant expenditure (see sub-paragraph (2));

(b) requiring the authority to make such financial adjustments (in the accounts and otherwise) as are necessary to reflect the tribunal’s declaration.

(8) In this paragraph—

“dispossessed landlord or tenant” means a person who was a lessor, lessee, licensor or licensee under a lease or licence determined by an order under paragraph 22;

“expenditure” includes administrative costs.

Variation or revocation of interim EDMOs

6

(1) The local housing authority may vary an interim EDMO if they consider it appropriate to do so.

(2) A variation does not come into force until such time, if any, as is the operative time for the purposes of this sub-paragraph under paragraph 33 (time when period for appealing expires without an appeal being made or when decision to vary is confirmed on appeal).

(3) The power to vary an order under this paragraph is exercisable by the authority either—

(a) on an application made by a relevant person, or

(b) on the authority’s own initiative.

(4) In this paragraph “relevant person” means any person who has an estate or interest in the dwelling (other than a person who is a tenant under a lease granted under paragraph 2(3)(c)).

7

(1) The local housing authority may revoke an interim EDMO in the following cases—

(a) where the authority conclude that there are no steps which they could appropriately take for the purpose of securing that the dwelling is occupied (see section 135(4));

(b) where the authority are satisfied that—

(i) the dwelling will either become or continue to be occupied, despite the order being revoked, or

(ii) that the dwelling is to be sold;

(d) where the authority conclude that it would be appropriate to revoke the order in order to prevent or stop interference with the rights of a third party in consequence of the order; and

(e) where in any other circumstances the authority consider it appropriate to revoke the order.

(2) But, in a case where the dwelling is occupied, the local housing authority may not revoke an interim EDMO under sub-paragraph (1)(b), (d) or (e) unless the relevant proprietor consents.

(3) A revocation does not come into force until such time, if any, as is the operative time for the purposes of this sub-paragraph under paragraph 33 (time when period for appealing expires without an appeal being made or when decision to revoke is confirmed on appeal).

(4) The power to revoke an order under this paragraph is exercisable by the authority either—

(a) on an application made by a relevant person, or

(b) on the authority’s own initiative.

(5) Where a relevant person applies to the authority for the revocation of an order under this paragraph, the authority may refuse to revoke the order unless the relevant proprietor (or some other person) agrees to pay to the authority any deficit such as is mentioned in paragraph 23(4).

(6) In this paragraph “relevant person” means any person who has an estate or interest in the dwelling (other than a person who is a tenant under a lease granted under paragraph 2(3)(c)).

8

(1) Part 2 of Schedule 6 applies in relation to the variation or revocation of an interim EDMO as it applies in relation to the variation or revocation of an interim management order.

(2) But Part 2 of that Schedule so applies as if—

(a) references to the right of appeal under Part 3 of the Schedule and to paragraph 29(2) were to the right of appeal under Part 4 of this Schedule and to paragraph 31(2) of this Schedule, and

(b) paragraph 23(4) defined “relevant person”as any person who, to the knowledge of the local housing authority, is a person having an estate or interest in the dwelling (other than a person who is a tenant under a lease granted under paragraph 2(3)(c) of this Schedule).

Part 2 — Final EDMOs

Operation of final EDMOs

9

(1) This paragraph deals with the time when a final EDMO comes into force or ceases to have effect.

(2) The order does not come into force until such time (if any) as is the operative time for the purposes of this sub-paragraph under paragraph 29 (time when period for appealing expires without an appeal being made or when order is confirmed on appeal).

(3) The order ceases to have effect at the end of the period of 7 years beginning with the date on which it comes into force, unless it ceases to have effect at some other time as mentioned below.

(4) If the order provides that it is to cease to have effect on a date falling before the end of that period, it accordingly ceases to have effect on that date.

(5) If—

(a) the order provides that it is to cease to have effect on a date falling after the end of that period, and

(b) the relevant proprietor of the dwelling has consented to that provision,

the order accordingly ceases to have effect on that date.

(6) Sub-paragraphs (7) and (8) apply where—

(a) a new final EDMO (“the new order”) has been made so as to replace the order (“the existing order”), but

(b) the new order has not come into force because of an appeal to the appropriate tribunal under paragraph 26 against the making of that order.

(7) If the date on which the new order comes into force in relation to the dwelling following the disposal of the appeal is later than the date on which the existing order would cease to have effect apart from this sub-paragraph, the existing order continues in force until that later date.

(8) If, on the application of the authority, the tribunal makes an order providing for the existing order to continue in force, pending the disposal of the appeal, until a date later than that on which it would cease to have effect apart from this sub-paragraph, the existing order accordingly continues in force until that later date.

(9) This paragraph has effect subject to paragraphs 15 and 16 (variation or revocation of orders) and to the power of revocation exercisable by the appropriate tribunal on an appeal made under paragraph 26 or 30.

General effect of final EDMOs

10

(1) This paragraph applies while a final EDMO is in force in relation to a dwelling.

(2) The rights and powers conferred by sub-paragraph (3) are exercisable by the authority in performing their duties under section 137(1) to (3) in respect of the dwelling.

(3) The authority—

(a) have the right to possession of the dwelling (subject to the rights of existing and other occupiers preserved by paragraph 18(3) and (4));

(b) have the right to do (and authorise a manager or other person to do) in relation to the dwelling anything which the relevant proprietor of the dwelling would (but for the order) be entitled to do;

(i) an interest in the dwelling which, as far as possible, has all the incidents of a leasehold, or

(ii) a right in the nature of a licence to occupy part of the dwelling;

(d) may apply to the appropriate tribunal for an order under paragraph 22 determining a lease or licence of the dwelling.

(4) The powers of the authority under sub-paragraph (3)(c) are restricted as follows—

(a) they may not create any interest or right in the nature of a lease or licence—

(i) which is for a fixed term expiring after the date on which the order is due to expire, or

(ii) (subject to paragraph (b)) which is terminable by notice to quit, or an equivalent notice, of more than 4 weeks,

unless consent in writing has been given by the relevant proprietor;

(b) they may create an interest in the nature of an assured shorthold tenancy without any such consent so long as it is created before the beginning of the period of 6 months that ends with the date on which the order is due to expire.

(5) The authority—

(a) do not under this paragraph acquire any estate or interest in the dwelling, and

(b) accordingly are not entitled by virtue of this paragraph to sell, lease, charge or make any other disposition of any such estate or interest.

(6) But, where the relevant proprietor of the dwelling is a lessee under a lease of the dwelling, the authority are to be treated (subject to sub-paragraph (5)(a)) as if they were the lessee instead.

(7) Any enactment or rule of law relating to landlords and tenants or leases applies in relation to—

(a) a lease in relation to which the authority are to be treated as the lessee under sub-paragraph (6), or

(b) a lease to which the authority become a party under paragraph 12(2),

as if the authority were the legal owner of the premises (but this is subject to paragraph 12(4) to (6)).

(8) None of the following, namely—

(a) the authority, or

(b) any person authorised under sub-paragraph (3)(b),

is liable to any person having an estate or interest in the dwelling for anything done or omitted to be done in the performance (or intended performance) of the authority’s duties under section 137(1) to (3) unless the act or omission is due to negligence of the authority or any such person.

(9) A final EDMO which has come into force is a local land charge.

(10) The authority may apply to the Chief Land Registrar for the entry of an appropriate restriction in the register in respect of such an order.

(11) In this paragraph “enactment” includes an enactment comprised in subordinate legislation (within the meaning of the Interpretation Act 1978 (c. 30)).

General effect of final EDMOs: leases and licences granted by authority

11

(1) This paragraph applies in relation to any interest or right created by the authority under paragraph 10(3)(c).

(2) For the purposes of any enactment or rule of law—

(a) any interest created by the authority under paragraph 10(3)(c)(i) is to be treated as if it were a legal lease, and

(b) any right created by the authority under paragraph 10(3)(c)(ii) is to be treated as if it were a licence to occupy granted by the legal owner of the dwelling,

despite the fact that the authority have no legal estate in the dwelling (see paragraph 10(5)(a)).

(3) Any enactment or rule of law relating to landlords and tenants or leases accordingly applies in relation to any interest created by the authority under paragraph 10(3)(c)(i) as if the authority were the legal owner of the dwelling.

(4) References to leases and licences—

(a) in this Chapter, and

(b) in any other enactment,

accordingly include (where the context permits) interests and rights created by the authority under paragraph 10(3)(c).

(5) The preceding provisions of this paragraph have effect subject to—

(a) paragraph 12(4) to (6), and

(b) any provision to the contrary contained in an order made by the appropriate national authority.

(6) In paragraph 10(5)(b) the reference to leasing does not include the creation of interests under paragraph 10(3)(c)(i).

(7) In this paragraph—

“enactment” has the meaning given by paragraph 10(11);

“legal lease” means a term of years absolute (within section 1(1)(b) of the Law of Property Act 1925 (c. 20)).

General effect of final EDMOs: relevant proprietor, mortgagees etc.

12

(1) This paragraph applies in relation to—

(a) the relevant proprietor, and

(b) other persons with an estate or interest in the dwelling,

while a final EDMO is in force in relation to a dwelling.

(2) Where the relevant proprietor is a lessor or licensor under a lease or licence of the dwelling, the lease or licence has effect while the order is in force as if the local housing authority were substituted in it for the lessor or licensor.

(3) Such a lease continues to have effect, as far as possible, as a lease despite the fact that the rights of the local housing authority, as substituted for the lessor, do not amount to an estate in law in the dwelling.

(4) The provisions mentioned in sub-paragraph (5) do not apply to a lease or licence within sub-paragraph (2).

(5) The provisions are—

(a) the provisions which exclude local authority lettings from the Rent Acts, namely—

(i) sections 14 to 16 of the Rent Act 1977 (c. 42), and

(ii) those sections as applied by Schedule 2 to the Rent (Agriculture) Act 1976 (c. 80) and section 5(2) to (4) of that Act; and

(b) section 1(2) of, and paragraph 12 of Part 1 of Schedule 1to, the Housing Act 1988 (c. 50) (which exclude local authority lettings from Part 1 of that Act).

(6) Nothing in this Chapter has the result that the authority are to be treated as the legal owner of any premises for the purposes of—

(a) section 80 of the Housing Act 1985 (c. 68) (the landlord condition for secure tenancies); or

(b) section 124 of the Housing Act 1996 (c. 52) (introductory tenancies).

(7) The relevant proprietor of the dwelling—

(a) is not entitled to receive any rents or other payments made in respect of occupation of the dwelling;

(b) may not exercise any rights or powers with respect to the management of the dwelling; and

(i) any leasehold interest in the dwelling or a part of it (other than a lease of a reversion), or

(ii) any licence or other right to occupy it.

(8) However (subject to sub-paragraph (7)(c)) nothing in paragraph 10 or this paragraph affects the ability of a person having an estate or interest in the dwelling to make any disposition of that estate or interest.

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