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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

(9) Nothing in paragraph 10 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 10(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 10(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 final EDMO (including an order quashing it).

Management scheme and accounts

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(1) A final EDMO must contain a management scheme.

(2) A “management scheme”is a scheme setting out how the local housing authority are to carry out their duties under section 137(1) to (3) as respects the dwelling.

(3) The scheme is to contain a plan giving details of the way in which the authority propose to manage the dwelling, which must (in particular) include—

(a) details of any works that the authority intend to carry out in connection with the dwelling;

(b) an estimate of the capital and other expenditure to be incurred by the authority in respect of the dwelling while the order is in force;

(c) the amount of rent which, in the opinion of the authority, the dwelling might reasonably be expected to fetch on the open market at the time the management scheme is made;

(d) the amount of rent or other payments that the authority will seek to obtain;

(e) the amount of any compensation that is payable to a third party by virtue of a decision of the authority under section 136(4) or 138(3) in respect of any interference in consequence of the final EDMO with the rights of that person;

(f) provision as to the payment of any such compensation and of any compensation payable to a dispossessed landlord or tenant by virtue of an order under paragraph 22(5);

(g) where the amount of rent payable to the authority in respect of the dwelling for a period is less than the amount of rent mentioned in paragraph (c) in respect of a period of the same length, provision as to the following—

(i) the deduction from the difference of relevant expenditure and any amounts of compensation payable to a third party or dispossessed landlord or tenant;

(ii) the payment of any remaining amount to the relevant proprietor;

(iii) the deduction from time to time of any remaining amount from any amount that the authority are entitled to recover from the proprietor under paragraph 23(5) or (6);

(h) provision as to the payment by the authority to the relevant proprietor from time to time of amounts of rent or other payments that remain after the deduction of—

(i) relevant expenditure, and

(ii) any amount of compensation payable to a third party or dispossessed landlord or tenant;

(i) provision as to the manner in which the authority are to pay to the relevant proprietor, on the termination of the final EDMO, the balance of any amounts of rent or other payments that remain after the deduction of relevant expenditure and any amounts of compensation payable to a third party or dispossessed landlord or tenant;

(j) provision as to the manner in which the authority are to pay, on the termination of the final EDMO, any outstanding amount of compensation payable to a third party or dispossessed landlord or tenant.

(4) The scheme may also state—

(a) the authority’s intentions as regards the use of rent or other payments to meet relevant expenditure;

(b) the authority’s intentions as regards the payment to the relevant proprietor (where appropriate) of interest on amounts within sub-paragraph (3)(h) and (i);

(c) that paragraph 23(2) or, where the relevant proprietor consents, paragraph 23(3)(c) is not to apply in relation to an interim EDMO or (as the case may be) final EDMO that immediately preceded the final EDMO, and that instead the authority intend to use any balance such as is mentioned in that sub-paragraph to meet—

(i) relevant expenditure incurred during the currency of that final EDMO, and

(ii) any compensation that may become payable to a third party or a dispossessed landlord or tenant;

(d) that paragraph 23(4) to (6) are not to apply in relation to an interim EDMO or, where the relevant proprietor consents, a final EDMO that immediately preceded the final EDMO, and that instead the authority intend to use rent or other payments collected during the currency of that final EDMO to reimburse the authority in respect of any deficit such as is mentioned in paragraph 23(4);

(e) the authority’s intentions as regards the recovery from the relevant proprietor, with or without interest, of any amount of relevant expenditure incurred under a previous interim EDMO or final EDMO that the authority are entitled to recover from the proprietor under paragraph 23(5) or (6).

(5) 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.

(6) 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;

“relevant expenditure” means—expenditure incurred by the authority with the consent of the relevant proprietor, orany other expenditure reasonably incurred by the authority, in connection with performing their duties under section 135(1) to (3) or 137(1) to (3) in respect of the dwelling (including any reasonable administrative costs and any premiums paid for insurance of the premises);

“rent or other payments” means rent or other payments collected or recovered, by virtue of this Chapter, from persons occupying or having the right to occupy the dwelling.

(7) In any provision of this Chapter relating to varying, revoking or appealing against decisions relating to a final EDMO, any reference to such an order includes (where the context permits) a reference to the management scheme contained in it.

Application to residential property tribunal in respect of breach of management scheme

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(1) An affected person may apply to the appropriate tribunal for an order requiring the local housing authority to manage a dwelling in accordance with the management scheme contained in a final EDMO made in respect of the dwelling.

(2) On such an application the tribunal may, if it considers it appropriate to do so, make an order—

(a) requiring the authority to manage the dwelling in accordance with the management scheme, or

(b) revoking the final EDMO as from a date specified in the tribunal’s order.

(3) An order under sub-paragraph (2) may—

(a) set out the steps which the authority are to take to manage the dwelling in accordance with the management scheme,

(b) include provision varying the final EDMO, and

(4) In this paragraph “affected person” means—

(a) the relevant proprietor, and

(b) any third party to whom compensation is payable by virtue of an order under section 134(4) or 138(2) or a decision of the authority under section 136(4) or 138(3) or who was a lessor, lessee, licensor or licensee under a lease or licence determined by an order of the appropriate tribunal under paragraph 22 and to whom compensation is payable by virtue of an order under sub-paragraph (5) of that paragraph.

Variation or revocation of final EDMOs

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(1) The local housing authority may vary a final 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) or 10(3)(c)).

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(1) The local housing authority may revoke a final EDMO in the following cases—

(a) where the authority conclude that there are no steps which they could appropriately take as mentioned in section 137(4)(b) or that keeping the order in force is not necessary as mentioned in section 137(4)(c);

(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 a final 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) or 10(3)(c)).

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(1) Part 2 of Schedule 6 applies in relation to the variation or revocation of a final EDMO as it applies in relation to the variation or revocation of a final 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) or 10(3)(c) of this Schedule).

Part 3 — Interim and final EDMOs: general provisions (other than provisions relating to appeals)

Effect of EDMOs: persons occupying or having a right to occupy the dwelling

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(1) This paragraph applies to existing and new occupiers of a dwelling in relation to which an interim EDMO or final EDMO is in force.

(2) In this paragraph—

“existing occupier” means a person other than the relevant proprietor who, at the time when the order comes into force—has the right to occupy the dwelling, butis not a new occupier within sub-paragraph (4);

“new occupier” means a person who, at a time when the order is in force, is occupying the dwelling under a lease or licence granted under paragraph 2(3)(c) or 10(3)(c).

(3) Paragraphs 2 and 10 do not affect the rights or liabilities of an existing occupier under a lease or licence (whether in writing or not) under which he has the right to occupy the dwelling at the commencement date.

(4) Paragraph 10 does not affect the rights and liabilities of a new occupier who, in the case of a final EDMO, is occupying the dwelling at the time when the order comes into force.

(5) The provisions mentioned in sub-paragraph (6) do not apply to a lease or agreement under which a new occupier has the right to occupy or is occupying the dwelling.

(6) 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, andparagraph 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).

(7) If, immediately before the coming into force of an interim EDMO or final EDMO, an existing occupier had the right to occupy the dwelling under—

(a) a protected or statutory tenancy within the meaning of the Rent Act 1977,

(b) a protected or statutory tenancy within the meaning of the Rent (Agriculture) Act 1976, or

nothing in this Chapter (except an order under paragraph 22 determining a lease or licence) prevents the continuance of that tenancy or occupancy or affects the continued operation of any of those Acts in relation to the tenancy or occupancy after the coming into force of the order.

(8) In this paragraph “the commencement date” means the date on which the order came into force (or, if that order was preceded by one or more orders under this Chapter, the date when the first order came into force).

Effect of EDMOs: agreements and legal proceedings

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(1) An agreement or instrument within sub-paragraph (2) has effect, while an interim EDMO or final EDMO is in force, as if any rights or liabilities of the relevant proprietor under the agreement or instrument were instead rights or liabilities of the local housing authority.

(2) An agreement or instrument is within this sub-paragraph if—

(a) it is effective on the commencement date,

(b) one of the parties to it is the relevant proprietor of the dwelling,

(d) it is specified for the purposes of this sub-paragraph in the order or falls within a description of agreements or instruments so specified, and

(e) the authority serve a notice in writing on all the parties to it stating that sub-paragraph (1) is to apply to it.

(3) An agreement or instrument is not within sub-paragraph (2) if—

(a) it is a lease or licence within paragraph 2(6) or 10(6), or

(b) it relates to any disposition by the relevant proprietor which is not precluded by paragraph 4(7) or 12(7).

(4) Proceedings in respect of any cause of action within sub-paragraph (5) may, while an interim EDMO or final EDMO is in force, be instituted or continued by or against the local housing authority instead of by or against the relevant proprietor.

(5) A cause of action is within this sub-paragraph if—

(a) it is a cause of action (of any nature) which accrued to or against the relevant proprietor of the dwelling before the commencement date,

(b) it relates to the dwelling as mentioned in sub-paragraph (2)(c),

(c) it is specified for the purposes of this sub-paragraph in the order or falls within a description of causes of action so specified, and

(d) the authority serve a notice in writing on all interested parties stating that sub-paragraph (4) is to apply to it.

(6) If, by virtue of this paragraph, the authority become subject to any liability to pay damages in respect of anything done (or omitted to be done) before the commencement date by or on behalf of the relevant proprietor of the dwelling, the relevant proprietor is liable to reimburse to the authority an amount equal to the amount of damages paid by them.

(7) In this paragraph—

“agreement” includes arrangement;

“the commencement date” means the date on which the order comes into force (or, if that order was preceded by one or more orders under this Chapter, the date when the first order came into force);

“management activities” includes repair, maintenance, improvement and insurance.

Effect of EDMOs: furniture

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(1) Sub-paragraph (2) applies where, on the date on which an interim EDMO or final EDMO comes into force, there is furniture owned by the relevant proprietor in the dwelling.

(2) Subject to sub-paragraphs (3) and (4), the right to possession of the furniture against all persons vests in the local housing authority on that date and remains vested in the authority while the order is in force.

(3) The right of the local housing authority under sub-paragraph (2) to possession of the furniture is subject to the rights of any person who, on the date on which the interim EDMO or final EDMO comes into force, has the right to possession of the dwelling.

(4) Where—

(a) the local housing authority have the right to possession of the furniture under sub-paragraph (2), and

(b) they have not granted a right to possession of the furniture to any other person,

they must, on a request by the relevant proprietor, give up possession of the furniture to him.

(5) The local housing authority may renounce the right to possession of the furniture conferred by sub-paragraph (2) by serving notice on the relevant proprietor not less than two weeks before the renunciation is to have effect.

(6) Where the local housing authority renounce the right to possession of the furniture under sub-paragraph (5), they must make appropriate arrangements for storage of the furniture at their own cost.

(7) In this paragraph “furniture” includes fittings and other articles.

EDMOs: power to supply furniture

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(1) The local housing authority may supply the dwelling to which an interim EDMO or final EDMO relates with such furniture as they consider to be required.

(2) For the purposes of paragraph 5 or paragraph 13, any expenditure incurred by the authority under this paragraph constitutes expenditure incurred by the authority in connection with performing their duties under section 135(1) to (3) or 137(1) to (3).

(3) In this paragraph “furniture” includes fittings and other articles.

Power of a residential property tribunal to determine certain leases and licences

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(1) The appropriate tribunal may make an order determining a lease or licence to which this paragraph applies if—

(a) the case falls within sub-paragraph (3) or (4), and

(b) the tribunal are satisfied that the dwelling is not being occupied and that the local housing authority need to have the right to possession of the dwelling in order to secure that the dwelling becomes occupied.

(2) This paragraph applies to the following leases and licences of a dwelling—

(a) a lease of the dwelling in respect of which the relevant proprietor is the lessor,

(b) a sub-lease of any such lease, and

(3) A case falls within this sub-paragraph if—

(a) an interim or final EDMO is in force in respect of the dwelling, and

(b) the local housing authority have applied under paragraph 2(3)(d) or 10(3)(d) for an order determining the lease or licence.

(4) A case falls within this sub-paragraph if—

(a) the local housing authority have applied to the residential property tribunal under section 133 for an order authorising them to make an interim EDMO in respect of the dwelling and an order determining the lease or licence, and

(b) the appropriate tribunal has decided to authorise the authority to make an interim EDMO in respect of the dwelling.

(5) An order under this paragraph may include provision requiring the local housing authority to pay such amount or amounts to one or more of the lessor, lessee, licensor or licensee by way of compensation in respect of the determination of the lease or licence as the tribunal determines.

(6) Where—

(a) a final EDMO is in force in respect of a dwelling, and

(b) the tribunal makes an order requiring the local housing authority to pay an amount of compensation to a lessor, lessee, licensor or licensee in respect of the determination of a lease or licence of the dwelling,

the tribunal must make an order varying the management scheme contained in the final EDMO so as to make provision as to the payment of that compensation.

Termination of EDMOs: financial arrangements

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(1) This paragraph applies where an interim EDMO or final EDMO ceases to have effect for any reason.

(2) If, on the termination date for an interim EDMO, the total amount of rent or other payments collected or recovered as mentioned in paragraph 5(3) exceeds the total amount of—

(a) the authority’s relevant expenditure, and

(b) any amounts of compensation payable to third parties by virtue of orders under section 134(4) or 138(2) or decisions of the authority under section 136(4) or 138(3),

the authority must, as soon as possible after the termination date, pay the balance to the relevant proprietor.

(3) If, on the termination date for a final EDMO, any balance is payable to—

(a) a third party,

(b) a dispossessed landlord or tenant, or

in accordance with the management scheme under paragraph 13, that amount must be paid to that person by the local housing authority in the manner provided by the scheme.

(4) Sub-paragraphs (5) and (6) apply where, on the termination date for an interim EDMO or final EDMO, the total amount of rent or other payments collected or recovered as mentioned in paragraph 5(3) is less than the total amount of the authority’s relevant expenditure together with any such amounts of compensation as are mentioned in sub-paragraph (2)(b) above.

(5) The authority may recover from the relevant proprietor—

(a) the amount of any relevant expenditure (not exceeding the deficit mentioned in sub-paragraph (4)) which he has agreed in writing to pay either as a condition of revocation of the order or otherwise, and

(b) where the relevant proprietor is a tenant under a lease in respect of the dwelling, the amount of any outstanding service charges payable under the lease.

(6) In the case of an interim EDMO ceasing to have effect, the authority may recover the deficit mentioned in sub-paragraph (4) from the relevant proprietor if, in their opinion, he unreasonably refused to consent to the creation of an interest or right as mentioned in paragraph 2(3)(c) while the order was in force.

(7) The provisions of any of sub-paragraphs (2) to (6) do not, however, apply in relation to the order if—

(a) the order is followed by a final EDMO, and

(b) the management scheme contained in that final EDMO provides for those sub-paragraphs not to apply in relation to the order (see paragraph 13(4)(c) and (d)).

(8) Any sum recoverable by the authority under sub-paragraph (5) or (6) is, until recovered, a charge on the dwelling.

(9) The charge takes effect on the termination date for the order as a legal charge which is a local land charge.

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

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

(12) 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;

“relevant expenditure” has the same meaning as in paragraph 5 (in relation to an interim EDMO) or paragraph 13 (in relation to a final EDMO);

“service charge” has the meaning given by section 18 of the Landlord and Tenant Act 1985 (c. 70);

“the termination date” means the date on which the order ceases to have effect.

Termination of EDMOs: leases, agreements and proceedings

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(1) This paragraph applies where—

(a) an interim EDMO or final EDMO ceases to have effect for any reason, and

(b) the order is not immediately followed by a further order under this Chapter.

(2) As from the termination date, an agreement which (in accordance with paragraph 3 or 11) has effect as a lease or licence granted by the authority under paragraph 2 or 10 has effect with the substitution of the relevant proprietor for the authority.

(3) If the relevant proprietor is a lessee, nothing in a superior lease imposes liability on him or any superior lessee in respect of anything done before the termination date in pursuance of the terms of an agreement to which sub-paragraph (2) applies.

(4) If the condition in sub-paragraph (5) is met, any other agreement entered into by the authority in the performance of their duties under section 135(1) to (3) or 137(1) to (3) in respect of the dwelling has effect, as from the termination date, with the substitution of the relevant proprietor for the authority.

(5) The condition is that the authority serve a notice on the other party or parties to the agreement stating that sub-paragraph (4) applies to the agreement.

(6) If the condition in sub-paragraph (7) is met—

(a) any rights or liabilities that were rights or liabilities of the authority immediately before the termination date by virtue of any provision of this Chapter, or under any agreement to which sub-paragraph (4) applies, are rights or liabilities of the relevant proprietor instead, and

(b) any proceedings instituted or continued by or against the authority by virtue of any such provision or agreement may be continued by or against the relevant proprietor instead,

as from the termination date.

(7) The condition is that the authority serve a notice on all interested parties stating that sub-paragraph (6) applies to the rights or liabilities or (as the case may be) the proceedings.

(8) If by virtue of this paragraph a relevant proprietor becomes subject to any liability to pay damages in respect of anything done (or omitted to be done) before the termination date by or on behalf of the authority, the authority are liable to reimburse to the relevant proprietor an amount equal to the amount of the damages paid by him.

(9) This paragraph applies to instruments as it applies to agreements.

(10) In this paragraph—

“agreement” includes arrangement;

“the termination date” means the date on which the order ceases to have effect.

EDMOs: power of entry to carry out work

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(1) The right mentioned in sub-paragraph (2) is exercisable by the local housing authority, or any person authorised in writing by them, at any time when an interim EDMO or final EDMO is in force.

(2) That right is the right at all reasonable times to enter any part of the dwelling for the purpose of carrying out works, and is exercisable as against any person having an estate or interest in the dwelling.

(3) If, after receiving reasonable notice of the intended action, any occupier of the dwelling prevents any officer, employee, agent or contractor of the local housing authority from carrying out work in the dwelling, a magistrates' court may order him to permit to be done on the premises anything which the authority consider to be necessary.

(4) A person who fails to comply with an order of the court under sub-paragraph (3) commits an offence.

(5) A person who commits an offence under sub-paragraph (4) is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

Part 4 — Appeals

Appeals: decisions relating to EDMOs

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

(a) a decision of the local housing authority to make a final EDMO,

(b) the terms of a final EDMO (including the terms of the management scheme contained in it), or

(c) the terms of an interim EDMO on the grounds that they do not provide for one or both of the matters mentioned in paragraph 5(5)(a) and (b) (which relate to payments of surplus rent etc.).

(2) Where an appeal is made under sub-paragraph (1)(c)—

(a) the appeal may be brought at any time while the order is in force (with the result that nothing in sub-paragraph (3) or paragraph 27 applies in relation to the appeal); and

(b) the powers of the appropriate tribunal under paragraph 28 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.

(3) If no appeal is brought under this paragraph in respect of a final EDMO within the time allowed by paragraph 27 for making such an appeal, the order is final and conclusive as to the matters which could have been raised on appeal.

Appeals: time limits for appeals under paragraph 26

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(1) This paragraph applies in relation to an appeal under paragraph 26 in respect of a final EDMO.

(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) of Schedule 6 (as applied by section 136(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).

Appeals: powers of residential property tribunal on appeal under paragraph 26

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(1) This paragraph applies to an appeal to the appropriate tribunal under paragraph 26 in respect of an interim EDMO or a final EDMO.

(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—

(a) in the case of an interim EDMO, vary the order as mentioned in paragraph 26(2)(b), or

(b) in the case of a final EDMO, confirm or vary the order or revoke it as from the date of the tribunal’s order.

“The operative time” for the purposes of paragraph 9(2)

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(1) This paragraph defines “the operative time” for the purposes of paragraph 9(2).

(2) If no appeal is made under paragraph 26 before the end of the period of 28 days mentioned in paragraph 27(2), “the operative time”is the end of that period.

(3) If an appeal is made under paragraph 26 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 EDMO

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A relevant person may appeal to the appropriate tribunal against—

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

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

Time limits for appeals under paragraph 30

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(1) This paragraph applies in relation to an appeal under paragraph 30 against a decision to vary or revoke, or (as the case may be) to refuse to vary or revoke, an interim EDMO or a final EDMO.

(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 of Schedule 6 (as applied by paragraph 8 or 17 of this Schedule (as the case may be)) 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 30

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(1) This paragraph applies to an appeal to the appropriate tribunal under paragraph 30 against a decision to vary or revoke, or (as the case may be) to refuse to vary or revoke, an interim EDMO or final EDMO.

(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, 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.

“The operative time” for the purposes of paragraphs 6, 7, 15 and 16

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

(a) paragraph 6(2) or 7(3) (variation or revocation of interim EDMO), or

(b) paragraph 15(2) or 16(3) (variation or revocation of final EDMO).

(2) If no appeal is made under paragraph 30 before the end of the period of 28 days mentioned in paragraph 31(2), “the operative time”is the end of that period.

(3) If an appeal is made under paragraph 30 before the end of 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

34

(1) This paragraph applies where a local housing authority have made a decision under section 136(4) or 138(3) as to whether compensation should be paid to a third party in respect of any interference with his rights in consequence of a final EDMO.

(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 34

35

(1) This paragraph applies in relation to an appeal under paragraph 34 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—

(a) where the decision is made before the final EDMO is made, within the period of 28 days beginning with the date specified in the notice under paragraph 7(5) of Schedule 6 (as applied by section 136(5)) as the date on which the order was made, or

(b) in any other case, within the period of 28 days beginning with the date the authority notifies the third party under section 138(4).

(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 34

36

(1) This paragraph applies in relation to an appeal under paragraph 34 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 the decision of the authority, it must make an order varying the management scheme contained in the final EDMO accordingly.

Meaning of “relevant person” for the purposes of this Part

37

In this Part of this Schedule “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) or 10(3)(c)).

SCHEDULE 8

1

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3

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4

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5

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6

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8

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9

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10

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11

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SCHEDULE 9

SCHEDULE 10

Schemes to be custodial schemes or insurance schemes

1

(1) A tenancy deposit scheme must be either—

(a) a custodial scheme, or

(b) an insurance scheme.

(2) A “custodial scheme”is a scheme under which—

(a) tenancy deposits in connection with shorthold tenancies are paid to the landlords under the tenancies,

(b) amounts representing the deposits are then paid by the landlords into a designated account held by the scheme administrator, and

(c) those amounts are kept by the scheme administrator in that account until such time as, in accordance with the scheme, they fall to be paid (wholly or in part) to the landlords or tenants under the tenancies.

(3) An “insurance scheme”is a scheme under which—

(a) tenancy deposits in connection with shorthold tenancies are paid to the landlords under the tenancies,

(b) such deposits are retained by the landlords on the basis that, at the end of the tenancies—

(i) such amounts in respect of the deposits as are agreed between the tenants and the landlords will be repaid to the tenants, and

(ii) such amounts as the tenants request to be repaid to them and which are not so repaid will, in accordance with directions given by the scheme administrator, be paid into a designated account held by the scheme administrator,

(c) amounts paid into that account are kept by the scheme administrator in the account until such time as, in accordance with the scheme, they fall to be paid (wholly or in part) to the landlords or tenants under the tenancies,

(d) landlords undertake to reimburse the scheme administrator, in accordance with directions given by him, in respect of any amounts in respect of the deposits paid to the tenants by the scheme administrator (other than amounts paid to the tenants as mentioned in paragraph (c)), and

(e) insurance is maintained by the scheme administrator in respect of failures by landlords to comply with such directions.

Provisions applying to custodial and insurance schemes

2

(1) A custodial scheme must conform with the following provisions—

paragraphs 3 to 4C, and

paragraphs 9 to 10C.

(2) An insurance scheme must conform with the following provisions—

paragraphs 5 to 8, and

paragraphs 9 to 10C.

Custodial schemes: general

3

(1) This paragraph applies to a custodial scheme.

(2) The scheme must provide for any landlord who receives a tenancy deposit in connection with a shorthold tenancy to pay an amount equal to the deposit into a designated account held by the scheme administrator.

(3) The designated account must not contain anything other than amounts paid into it as mentioned in sub-paragraph (2) and any interest accruing on such amounts.

(4) Subject to sub-paragraph (5), the scheme administrator may retain any interest accruing on such amounts.

(5) The relevant arrangements under section 212(1) may provide for any amount paid in accordance with paragraph 4 or 4C to be paid with interest -

(a) in respect of the period during which the relevant amount has remained in the designated account, and

(b) at such rate as the Secretary of State may specify by order.

(6) With the exception of any interest retained in accordance with subparagaph (4), nothing contained in the designated account may be used to fund the administration of the scheme.

(7) In this paragraph "the relevant amount", in relation to a tenancy deposit, means the amount paid into the designated account in respect of the deposit.

Custodial schemes: termination of tenancies

4

(1) A custodial scheme must make provision—

(a) for enabling the tenant and the landlord under a shorthold tenancy in connection with which a tenancy deposit is held in accordance with the scheme to apply, at any time after the tenancy has ended, for the whole or part of the relevant amount to be paid to him, and

(b) for such an application to be dealt with by the scheme administrator in accordance with the following provisions of this paragraph.

(2) Sub-paragraph (3) applies where the tenant and the landlord notify the scheme administrator that they have agreed that the relevant amount should be paid—

(a) wholly to one of them, or

(b) partly to the one and partly to the other.

(3) If, having received such a notification, the scheme administrator is satisfied that the tenant and the landlord have so agreed, the scheme administrator must arrange for the relevant amount to be paid, in accordance with the agreement, within the period of 10 days beginning with the date on which the notification is received by the scheme administrator.

(4) Sub-paragraph (5) applies where the tenant or the landlord notifies the scheme administrator that—

(a) a court has decided that the relevant amount is payable either wholly to one of them or partly to the one and partly to the other, and

(b) that decision has become final.

(4A) Sub-paragraph (5) also applies where the tenant or the landlord notifies the scheme administrator that a person acting as an adjudicator under the provision made under paragraph 10 has made a binding decision that the relevant amount is payable either wholly to one of them or partly to one and partly to the other.

(5) If, having received a notification as mentioned in sub-paragraph (4) or (4A), the scheme administrator is satisfied as to the matters mentioned in that sub-paragraph, the scheme administrator must arrange for the relevant amount to be paid, in accordance with the decision, within the period of 10 days beginning with the date on which the notification is received by the scheme administrator.

(6) For the purposes of this Schedule a decision becomes final—

(a) if not appealed against, at the end of the period for bringing an appeal, or

(b) if appealed against, at the time when the appeal (or any further appeal) is disposed of.

(7) An appeal is disposed of—

(a) if it is determined and the period for bringing any further appeal has ended, or

(b) if it is abandoned or otherwise ceases to have effect.

(8) In this paragraph “the relevant amount” has the meaning given by paragraph 3(7).

Insurance schemes: general

5

(1) This paragraph applies to an insurance scheme.

(1A) The scheme must make provision as to the requirements that fall to be complied with by the landlord or by the scheme administrator where—

(a) a landlord wishes to retain a tenancy deposit under the scheme; or

(b) a landlord retaining a tenancy deposit under the scheme (in relation to a tenancy that has not terminated) gives notice to the scheme administrator that he no longer wishes to retain the deposit under that scheme.

(2) The scheme must provide that any landlord by whom a tenancy deposit is retained under the scheme must give the scheme administrator an undertaking that, if the scheme administrator directs the landlord to pay him any amount in respect of the deposit in accordance with paragraph 6(3) or (7), the landlord will comply with such a direction.

(3) The scheme must require the scheme administrator to effect, and maintain in force, adequate insurance in respect of failures by landlords by whom tenancy deposits are retained under the scheme to comply with such directions as are mentioned in sub-paragraph (2).

(3A) The scheme may make provision enabling the scheme administrator to determine that, by virtue of the landlord's failure to comply with a relevant obligation, a tenancy deposit which has previously been retained by a landlord under the scheme (and which relates to a tenancy which has not ended) is to cease to be retained under the scheme.

(3B) Provision under sub-paragraph (3A) must require the scheme administrator, before making a determination, to give a notice to the landlord stating that the scheme administrator proposes to make such a determination and the reasons for the proposal.

(4) If the scheme provides for landlords participating in the scheme to be members of the scheme, the scheme may provide for a landlord’s membership to be terminated by the scheme administrator in the event of any failure by the landlord to comply with a relevant obligation.

(4A) Provision made under sub-paragraph (4) must require the scheme administrator, before determining that the landlord's membership be terminated, to give a notice to the landlord stating that the scheme administrator proposes to make such a determination and the reasons for the proposal.

(4B) On the termination of a landlord's membership under sub-paragraph (4)—

(a) any tenancy deposits previously retained by the landlord under the scheme (in relation to tenancies which had not ended before the termination) cease to be retained under the scheme; but

(b) the scheme continues to apply to a tenancy deposit retained by the landlord under the scheme in relation to a tenancy which ended before the termination as if the landlord were still a member.

(5) The scheme may provide for landlords participating in the scheme to pay to the scheme administrator—

(a) fees in respect of the administration of the scheme, and

(b) contributions in respect of the cost of the insurance referred to in sub-paragraph (3).

(6) Paragraph 5A makes further provision in relation to the procedure to be followed after a notice of the kind mentioned in sub-paragraph (1A)(b), (3B) or (4A) has been given in accordance with the scheme.

(7) In this paragraph “ relevant obligation ” means—

(a) the duty to comply with a direction mentioned in sub-paragraph (2); or

(b) any obligation under the scheme which is specified in the scheme as a relevant obligation for the purposes of this paragraph.

Insurance schemes: termination of tenancies

6

(1) An insurance scheme must make provision in accordance with this paragraph and paragraphs 6A to 8 in relation to the respective obligations of the landlord and the scheme administrator where—

(a) a tenancy deposit has been retained by the landlord under the scheme, and

(b) the tenancy has ended.

(2) Sub-paragraphs (3) to (9) apply where the tenant notifies the scheme administrator that—

(a) the tenant has requested the landlord to repay to him the whole or any part of the deposit, and

(b) the amount in question (“the outstanding amount”) has not been repaid to him within the period of 10 days beginning with the date on which the request was made.

(2A) When a tenant gives notice under sub-paragraph (2) he must also indicate whether he consents to any dispute as to the amount to be repaid to him being resolved through the use of the dispute resolution service.

(3) On receiving a notification in accordance with sub-paragraph (2), the scheme administrator must direct the landlord—

(a) to pay an amount equal to the outstanding amount into a designated account held by the scheme administrator, and

(b) to do so within the period of 10 days beginning with the date on which the direction is received by the landlord.

(4) The following sub-paragraphs apply where the tenant or the landlord notifies the scheme administrator—

(a) that a court has decided that the outstanding amount is payable either wholly to one of them or partly to the one and partly to the other and the decision has become final (see paragraph 4(6) and (7)), . . .

(b) that the tenant and landlord have agreed that such an amount is to be paid either wholly to one of them or partly to the one and partly to the other. or

(c) that a person acting as an adjudicator under the provision made under paragraph 10 has made a binding decision that the outstanding amount is payable either wholly to one of them or partly to one and partly to the other.

(5) If the scheme administrator is satisfied as to the matters mentioned in sub-paragraph (4)(a) , (b) or (c)(as the case may be), he must—

(a) pay to the tenant any amount due to him in accordance with the decision or agreement (and, to the extent possible, pay that amount out of any amount held by him by virtue of sub-paragraph (3)), and

(b) comply with sub-paragraph (6) or (7), as the case may be.

(6) Where any amount held by the scheme administrator by virtue of sub-paragraph (3) is more than any amount due to the tenant in accordance with the decision or agreement, the scheme administrator must pay the balance to the landlord.

(7) Where any amount so held by the scheme administrator is less than any amount so due to the tenant, the scheme administrator must direct the landlord to pay him the difference within the period of 10 days beginning with the date on which the direction is received by the landlord.

(8) The scheme administrator must pay any amounts required to be paid to the tenant or the landlord as mentioned in sub-paragraph (5)(a) or (6) within 10 days beginning with the date on which the notification is received by the scheme administrator.

(9) The landlord must comply with any direction given in accordance with sub-paragraph (3) or (7).

7

(1) The designated account held by the scheme administrator must not contain anything other than amounts paid into it as mentioned in paragraph 6(3) and any interest accruing on such amounts.

(2) Subject to sub-paragraph (3), the scheme administrator may retain any interest accruing on such amounts.

(3) The relevant arrangements under section 212(1) may provide for any amount paid in accordance with paragraph 6(5)(a) or (6) to be paid with interest—

(a) in respect of the period during which the relevant amount has remained in the designated account, and

(b) at such rate as the Secretary of State may specify for the purposes of paragraph 3(5)(b).

(4) With the exception of any interest retained in accordance with sub-paragraph (2), nothing contained in the designated account may be used to fund the administration of the scheme.

(5) In this paragraph “ the relevant amount ”, in relation to a tenancy deposit, means the amount, in respect of the deposit, paid into the designated account by virtue of a direction given in accordance with paragraph 6(3).

8

(1) The scheme must make provision for preventing double recovery by a tenant in respect of the whole or part of the deposit, and may in that connection make provision—

(a) for excluding or modifying any requirement imposed by the scheme in accordance with paragraph 6 or 7, and

(b) for requiring the repayment of amounts paid to the tenant by the scheme administrator.

(2) In this paragraph “ double recovery ”, in relation to an amount of a tenancy deposit, means recovering that amount both from the scheme administrator and from the landlord.

Notifications to tenants

9

(1) Every custodial scheme or insurance scheme must provide for the scheme administrator to respond as soon as is practicable to any request within sub-paragraph (2) made by the tenant under a shorthold tenancy.

(2) A request is within this sub-paragraph if it is a request by the tenant to receive confirmation that a deposit paid in connection with the tenancy is being held in accordance with the scheme.

Dispute resolution procedures

10

(1) Every custodial scheme or insurance scheme must provide for facilities to be available for enabling disputes relating to tenancy deposits subject to the scheme to be resolved without recourse to litigation.

(2) The scheme must not, however, make the use of such facilities compulsory in the event of such a dispute.

(3) The provision made under this paragraph may confer power on a person acting as an adjudicator in relation to such a dispute to decline to proceed, or continue to proceed, with the case.

(4) In this Schedule, in relation to a custodial scheme or an insurance scheme, “ the dispute resolution service ” means the facilities provided by the scheme in accordance with this paragraph.

Power to amend

11

The Secretary of State may by order make such amendments of this Schedule as it considers appropriate.

Interpretation

12

In this Schedule references to tenants under shorthold tenancies include references to persons who, in accordance with arrangements made with such tenants, have paid tenancy deposits on behalf of the tenants.

SCHEDULE 11

Housing Associations Act 1985 (c. 69)

1

In section 87 of the Housing Associations Act 1985 (financial assistance with respect to formation, management, etc. of certain housing associations) omit—

(a) in subsection (3), the words from “, acting” onwards, and

(b) subsection (6).

Housing Act 1988 (c. 50)

2

The Housing Act 1988 is amended as follows.

3

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4

In section 52(2) (recovery etc. of grants) omit the words from “, acting” to “determine,”.

5

Omit section 55 (surplus rental income).

6

In section 59(1A) (interpretation) for “55” substitute “ 54 ”.

Housing Act 1996 (c. 52)

7

The Housing Act 1996 is amended as follows.

8

In section 18(2) (social housing grants) omit the words from “, acting” to “determine,”.

9

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10

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11

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12

(1) In section 31(2) (offence of intentionally altering etc. document required to be produced under section 30), for paragraph (b) substitute—

(b) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine, or both.

(2) The amendment made by sub-paragraph (1) does not apply in relation to any offence committed before the day on which that sub-paragraph comes into force.

13

(1) Section 36 (issue of guidance by the Relevant Authority) is amended as follows.

(2) In subsection (2) (particular matters with respect to which guidance may be issued under the section) for “this section” substitute “ subsection (1) ”.

(3) After subsection (2) insert—

(2A) The Relevant Authority may also issue guidance with respect to— (a) the governance of bodies that are registered social landlords; (b) the effective management of such bodies; (c) establishing and maintaining the financial viability of such bodies.

(4) In subsection (7) (guidance relevant to whether there has been mismanagement) after “there has been” insert “ misconduct or ”.

14

In paragraph 1(2) of Schedule 1 (payments by way of gift, dividend or bonus) after paragraph (b) insert—

(c) the payment of a sum, in accordance with the constitution or rules of the body, to a registered social landlord which is a subsidiary or associate of the body.

15

(1) Paragraph 15 of Schedule 1 (transfer of net assets on dissolution or winding up) is amended as follows.

(2) In sub-paragraph (1)(b), after “1985” insert “ (including such a company which is also a registered charity) ”.

(3) At the end of sub-paragraph (4) insert— “ And in such a case any registered social landlord specified in a direction under sub-paragraph (2) must be one to which paragraphs (a) and (b) above apply. ”

16

After paragraph 15 insert—

(15A) (1) The Secretary of State may by regulations provide for any provisions of paragraph 15(2) to (6) to apply in relation to a registered social landlord within sub-paragraph (2)— (a) in such circumstances, and (b) with such modifications, as may be specified in the regulations. (2) A registered social landlord is within this sub-paragraph if— (a) it is a registered charity, and (b) it does not fall within sub-paragraph (1) of paragraph 15. (3) Regulations under this paragraph may in particular provide that any provision of the regulations requiring the transfer of any property of the charity is to have effect notwithstanding— (a) anything in the terms of its trusts, or (b) any resolution, order or other thing done for the purposes of, or in connection with, the termination of the charity in any manner specified in the regulations. (4) Any regulations under this paragraph shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

17

(1) Paragraph 16 of Schedule 1 (general requirements as to accounts and audit) is amended as follows.

(2) Omit sub-paragraph (4) (auditor’s report to state whether accounts comply with paragraph 16).

(3) For sub-paragraph (5) substitute—

(5) Every registered social landlord shall furnish to the Relevant Authority— (a) a copy of its accounts, and (b) (subject to sub-paragraph (7)) a copy of the auditor’s report in respect of them, within six months of the end of the period to which they relate. (6) The auditor’s report shall state, in addition to any other matters which it is required to state, whether in the auditor’s opinion the accounts comply with the requirements laid down under this paragraph. (7) The provisions of sub-paragraphs (5)(b) and (6) do not apply where, by virtue of any enactment— (a) any accounts of a registered social landlord are not required to be audited, and (b) instead a report is required to be prepared in respect of them by a person appointed for the purpose (“the reporting accountant”), and sub-paragraph (8) shall apply in place of those provisions. (8) In such a case— (a) the registered social landlord shall furnish to the Relevant Authority a copy of the reporting accountant’s report in respect of the accounts within six months of the end of the period to which they relate; and (b) that report shall state, in addition to any other matters which it is required to state, whether in the reporting accountant’s opinion the accounts comply with the requirements laid down under this paragraph.

18

After paragraph 16 of Schedule 1 insert—

(16A) (1) This paragraph applies to registered social landlords which are companies registered under the Companies Act 1985 (“RSL companies”). (2) In section 249A of the Companies Act 1985 (exemptions from audit)— (a) subsection (2) shall apply in relation to an RSL company which meets the total exemption conditions in respect of a financial year (whether it is a charity or not), and (b) that subsection shall apply in relation to such a company in the same way as it applies in relation to an RSL company which is a charity and meets the report conditions in relation to a financial year; and (c) subsection (1) accordingly does not have effect in relation to an RSL company. (3) In section 249C of that Act (report required for the purposes of section 249A(2)), subsection (3) shall apply in relation to an RSL company within sub-paragraph (2)(a) above as if the reference to satisfying the requirements of section 249A(4) were a reference to meeting the total exemption conditions. (4) The Relevant Authority may, in respect of any relevant financial year of an RSL company, give a direction to the company requiring it— (a) to appoint a qualified auditor to audit its accounts and balance sheet for that year, and (b) to furnish to the Relevant Authority a copy of the auditor’s report by such date as is specified in the direction. (5) For the purposes of sub-paragraph (4), a financial year of an RSL company is a “relevant financial year”if— (a) it precedes that in which the direction is given, and (b) the company met either the total exemption conditions or the report conditions in respect of that year, and (c) its accounts and balance sheet for that year were not audited in accordance with Part 7 of the Companies Act 1985. (6) In this paragraph— (a) “financial year” has the meaning given by section 223 of the Companies Act 1985; (b) “qualified auditor” means a person who is eligible for appointment as auditor of the company under Part 2 of the Companies Act 1989; (c) any reference to a company meeting the report conditions is to be read in accordance with section 249A(4) of the Companies Act 1985; and (d) any reference to a company meeting the total exemption conditions is to be read in accordance with section 249A(3) or section 249A(3) and (3A) of that Act, depending on whether it is a charity.

19

For paragraph 17 of Schedule 1 (appointment of auditors by industrial and provident societies), together with the heading preceding it, substitute—

(17) (1) This paragraph applies to registered social landlords which are industrial and provident societies. (2) Section 9A of the Friendly and Industrial and Provident Societies Act 1968 (duty to obtain accountant’s reports where section 4 applied) shall have effect, in its application to such a landlord, with the omission of subsection (1)(b) (accountant’s report required only where turnover exceeds a specified sum). (3) The Relevant Authority may, in respect of any relevant year of account of such a landlord, give a direction to the landlord requiring it— (a) to appoint a qualified auditor to audit its accounts and balance sheet for that year, and (b) to furnish to the Relevant Authority a copy of the auditor’s report by such date as is specified in the direction. (4) For the purposes of sub-paragraph (3), a year of account of a landlord is a “relevant year of account”if— (a) it precedes that in which the direction is given, and (b) at the end of it there is in force in relation to it a disapplication under section 4A(1) of the Friendly and Industrial and Provident Societies Act 1968. (5) In this paragraph— - “qualified auditor” means a person who is a qualified auditor for the purposes of the Friendly and Industrial and Provident Societies Act 1968; - “year of account” has the meaning given by section 21(1) of that Act.

20

(1) Paragraph 18 of Schedule 1 (accounting and audit requirements for charities) is amended as follows.

(2) In the cross-heading preceding the paragraph, after “and audit” insert “ or reporting ”.

(3) In sub-paragraph (1) (application of provisions to registered social landlord which is a registered charity) omit the words from “(which impose” onwards.

(4) For sub-paragraph (4) substitute—

(4) The charity must appoint a qualified auditor (“the auditor”) to audit the accounts prepared in accordance with sub-paragraph (3) in respect of each period of account in which— (a) the charity’s gross income (within the meaning of the Charities Act 1993) arising in connection with its housing activities, or (b) its total expenditure arising in connection with those activities, exceeds the sum for the time being specified in section 43(1) of the Charities Act 1993 (audit required for charities where gross income or total income exceeds the specified sum). (4A) Where sub-paragraph (4) does not apply in respect of a period of account, the charity must appoint a qualified auditor (“the reporting accountant”) to make such a report as is mentioned in paragraph 18A(1) in respect of the period of account. (4B) In sub-paragraphs (4) and (4A) “qualified auditor” means a person who is eligible for appointment as auditor of the charity under Part 2 of the Companies Act 1989 or who would be so eligible if the charity were a company registered under the Companies Act 1985.

21

After paragraph 18 of Schedule 1 insert—

(18A) (1) The report referred to in paragraph 18(4A) is a report— (a) relating to the charity’s accounts prepared in accordance with paragraph 18(3) in respect of the period of account in question, and (b) complying with sub-paragraphs (2) and (3) below. (2) The report must state whether, in the opinion of the reporting accountant— (a) the revenue account or accounts and the balance sheet are in agreement with the books of account kept by the charity under paragraph 18(2), (b) on the basis of the information contained in those books of account, the revenue account or accounts and the balance sheet comply with the requirements of the Charities Act 1993, and (c) on the basis of the information contained in those books of account, paragraph 18(4A) applied to the charity in respect of the period of account in question. (3) The report must also state the name of the reporting accountant and be signed by him. (4) Paragraph 18(7) applies to the reporting accountant and his functions under this paragraph as it applies to an auditor and his functions under paragraph 18. (5) The Relevant Authority may, in respect of a relevant period of account of a charity, give a direction to the charity requiring it— (a) to appoint a qualified auditor to audit its accounts for that period, and (b) to furnish to the Relevant Authority a copy of the auditor’s report by such date as is specified in the direction; and paragraph 18(5) to (7) apply to an auditor so appointed as they apply to an auditor appointed under paragraph 18. (6) For the purposes of sub-paragraph (5), a period of account of a charity is a relevant period of account if— (a) it precedes that in which the direction is given; and (b) paragraph 18(4A) applied in relation to it. (7) In this paragraph “period of account” and “qualified auditor” have the same meaning as in paragraph 18(4A).

22

(1) Paragraph 19 of Schedule 1 (responsibility for securing compliance with accounting requirements) is amended as follows.

(2) In sub-paragraph (2)—

(a) in paragraph (c), after “and audit” insert “ or reporting ”;

(b) omit paragraph (d) (but not the “or” at the end); and

(3) The amendment made by sub-paragraph (2)(c) does not apply in relation to any offence committed before the day on which that sub-paragraph comes into force.

(4) After sub-paragraph (4) insert—

(5) Where any of paragraphs (a) to (e) of sub-paragraph (2) applies in respect of any default on the part of a registered social landlord, the High Court may, on the application of the Relevant Authority, 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 registered social landlord or by any of its officers who are responsible for the default.

23

After paragraph 19 of Schedule 1 insert—

(19A) (1) A person who is, or has been, an auditor of a registered social landlord does not contravene any duty to which he is subject merely because he gives to the Relevant Authority — (a) information on a matter of which he became aware in his capacity as auditor of the registered social landlord, or (b) his opinion on such a matter, if he is acting in good faith and he reasonably believes that the information or opinion is relevant to any functions of the Relevant Authority. (2) Sub-paragraph (1) applies whether or not the person is responding to a request from the Relevant Authority. (3) This paragraph applies to a person who is, or has been, a reporting accountant as it applies to a person who is, or has been, an auditor. (4) A “reporting accountant” means a person appointed as mentioned in paragraph 16(7)(b).

24

(1) Paragraph 20 of Schedule 1 (inquiry into affairs of registered social landlord) is amended as follows.

(2) After sub-paragraph (4) insert—

(4A) The person or persons conducting the inquiry may determine the procedure to be followed in connection with the inquiry.

(3) At the end of sub-paragraph (7) add “ , and the Relevant Authority may arrange for the whole or part of an interim or final report to be published in such manner as it considers appropriate. ”

(4) After sub-paragraph (7) insert—

(8) A local authority may, if they think fit, contribute to the expenses of the Relevant Authority in connection with any inquiry under this paragraph.

25

After paragraph 20 of Schedule 1 insert—

(20A) (1) For the purposes of an inquiry the person or persons conducting it may serve a notice on an appropriate person directing him to attend at a specified time and place and do either or both of the following, namely— (a) give evidence; (b) produce any specified documents, or documents of a specified description, which are in his custody or under his control and relate to any matter relevant to the inquiry. (2) The person or persons conducting such an inquiry— (a) may take evidence on oath and for that purpose administer oaths, or (b) instead of administering an oath, require the person examined to make and subscribe a declaration of the truth of the matters about which he is examined. (3) In this paragraph— - “appropriate person” means a person listed in section 30(2); - “document” has the same meaning as in section 30; - “inquiry” means an inquiry under paragraph 20. (4) A person may not be required under this paragraph to disclose anything that, by virtue of section 30(4), he could not be required to disclose under section 30. (5) Section 31 (enforcement of notice to provide information, &c) applies in relation to a notice given under this paragraph by the person or persons conducting an inquiry as it applies in relation to a notice given under section 30 by the Relevant Authority, but subject to sub-paragraph (6). (6) A person guilty of an offence under section 31(1) as it applies in accordance with sub-paragraph (5) is liable— (a) on summary conviction, to a fine not exceeding the statutory maximum; (b) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine, or both. (7) Any person who, in purported compliance with a notice given under this paragraph by the person or persons conducting an inquiry, knowingly or recklessly provides any information which is false or misleading in a material particular commits an offence and is liable to the penalties mentioned in sub-paragraph (6). (8) Proceedings for an offence under sub-paragraph (7) may be brought only by or with the consent of the Relevant Authority or the Director of Public Prosecutions.

26

(1) Paragraph 21 of Schedule 1 (power of appointed person to obtain information) is amended as follows.

(2) At the end of sub-paragraph (3) (application of section 31 to notice under paragraph 20) add “ , but subject to sub-paragraph (4). ”

(3) After sub-paragraph (3) add—

(4) A person guilty of an offence under section 31(1) as it applies in accordance with sub-paragraph (3) is liable— (a) on summary conviction, to a fine not exceeding the statutory maximum; (b) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine, or both. (5) Any person who, in purported compliance with a notice given under this paragraph by an appointed person, knowingly or recklessly provides any information which is false or misleading in a material particular commits an offence and is liable to the penalties mentioned in sub-paragraph (4). (6) Proceedings for an offence under sub-paragraph (5) may be brought only by or with the consent of the Relevant Authority or the Director of Public Prosecutions.

(4) The amendments made by this paragraph do not apply in relation to any offence committed or other thing done before the day on which this paragraph comes into force.

SCHEDULE 12

SCHEDULE 13

Procedure regulations

1

(1) The Welsh Ministers may make regulations about the procedure of residential property tribunals.

(2) Nothing in the following provisions of this Schedule affects the generality of sub-paragraph (1).

(3) In those provisions—

“procedure regulations” means regulations under this paragraph;

“tribunal” means a residential property tribunal.

Appeals

2

(1) Procedure regulations may include provision, in relation to applications to tribunals—

(a) about the form of such applications and the particulars to be contained in them,

(b) requiring the service of notices of such applications, and

(c) in the case of applications under section 102(4) or (7) or 133(1), requiring the service of copies of the draft orders submitted with the applications.

(2) Procedure regulations may include provision, in relation to appeals to tribunals—

(a) about the form of notices of appeal and the particulars to be contained in them, and

(b) requiring the service of copies of such notices.

(3) Procedure regulations may include provision dispensing with the service of the notices or copies mentioned in sub-paragraph (1)(b) or (2)(b) in such cases of urgency as are specified in the regulations.

Transfers

3

(1) This paragraph applies where, in any proceedings before a court, there falls for determination a question which a tribunal would have jurisdiction to determine on an application or appeal to the tribunal.

(2) The court—

(a) may by order transfer to the 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 remaining proceedings pending the determination of that question by the tribunal, as it thinks fit.

(3) When the tribunal has determined the question, the court may give effect to the determination in an order of the court.

(4) Rules of court may prescribe the procedure to be followed in a court in connection with or in consequence of a transfer under this paragraph.

(5) Procedure regulations may prescribe the procedure to be followed in a tribunal consequent on a transfer under this paragraph.

(6) Nothing in this Act , the Caravan Sites and Control of Development Act 1960 , the Mobile Homes Act 1983 or the Mobile Homes (Wales) Act 2013 affects any power of a court to make an order that could be made by a tribunal (such as an order quashing a licence granted or order made by a local housing authority) in a case where—

(a) the court has not made a transfer under this paragraph, and

(b) the order is made by the court in connection with disposing of any proceedings before it.

Parties etc.

4

(1) Procedure regulations may include provision enabling persons to be joined as parties to the proceedings.

(2) Procedure regulations may include provision enabling persons who are not parties to proceedings before a tribunal to make oral or written representations to the tribunal.

Information

5

(1) Procedure regulations may include—

(a) provision relating to the supply of information and documents by a party to the proceedings, and

(b) in particular any provision authorised by the following provisions of this paragraph.

(2) The regulations may include provision for requiring, or empowering the tribunal to require, a party to proceedings before a tribunal—

(a) to supply to the tribunal information or documents specified, or of a description specified, in the regulations or in an order made by the tribunal;

(b) to supply to any other party copies of any information or documents supplied to the tribunal;

(c) to supply any such information, documents or copies by such time as is specified in or determined in accordance with the regulations or order.

(3) The regulations may also include provision—

(a) for granting a party to the proceedings such disclosure or inspection of documents, or such right to further information, as might be granted by the county court ;

(b) for requiring persons to attend to give evidence and produce documents;

(4) The regulations may include provision empowering a tribunal to dismiss, or allow, the whole or part of an appeal or application in a case where a party to the proceedings has failed to comply with—

(a) a requirement imposed by regulations made by virtue of this paragraph, or

(b) an order of the tribunal made by virtue of any such regulations.

Pre-trial reviews etc.

6

(1) Procedure regulations may include provision for the holding of a pre-trial review (on the application of a party to the proceedings or on the tribunal’s own initiative).

(2) Procedure regulations may provide for functions of a tribunal in relation to, or at, a pre-trial review to be exercised by a single qualified member of the panel.

(3) Procedure regulations may provide for other functions as to preliminary or incidental matters to be exercised by a single qualified member of the panel.

(4) For the purposes of this paragraph—

(a) a person is a qualified member of the panel if he was appointed to it by the Lord Chancellor; and

(b) “the panel” means the panel provided for in Schedule 10 to the Rent Act 1977 (c. 42).

Interim orders

7

Procedure regulations may include provision empowering tribunals to make orders, on an interim basis—

(a) suspending, in whole or in part, the effect of any decision, notice, order or licence which is the subject matter of proceedings before them;

(b) granting any remedy which they would have had power to grant in their final decisions.

Additional relief

8

(1) Procedure regulations may include provision as to—

(a) any additional relief which tribunals may grant in respect of proceedings before them; and

(b) the grounds on which such relief may be granted.

(2) In this paragraph “additional relief” means relief additional to any relief specifically authorised by any provision of Parts 1 to 4 of this Act , any provision of the Mobile Homes Act 1983 or any provision of the Caravan Sites and Control of Development Act 1960 or of the Mobile Homes (Wales) Act 2013 .

Dismissal

9

Procedure regulations may include provision empowering tribunals to dismiss applications, appeals or transferred proceedings, in whole or in part, on the ground that they are—

(a) frivolous or vexatious, or

(b) otherwise an abuse of process.

Determination without hearing

10

(1) Procedure regulations may include provision for the determination of applications, appeals or transferred proceedings without an oral hearing.

(2) Procedure regulations may include provision enabling a single qualified member of the panel to decide whether an oral hearing is appropriate in a particular case.

(3) Procedure regulations may provide for a single qualified member of the panel to make determinations without an oral hearing.

(4) For the purposes of this paragraph—

(a) a person is a qualified member of the panel if he was appointed to it by the Lord Chancellor; and

(b) “the panel” means the panel provided for in Schedule 10 to the Rent Act 1977 (c. 42).

Fees

11

(1) Procedure regulations may include provision requiring the payment of fees in respect of applications, appeals or transfers of proceedings to, or oral hearings by, tribunals.

(2) The fees payable shall be such as are specified in or determined in accordance with procedure regulations.

(3) But the fee (or, where fees are payable in respect of both an application, appeal or transfer and an oral hearing, the aggregate of the fees) payable by a person in respect of any proceedings must not exceed—

(a) £500, or

(b) such other amount as may be specified in procedure regulations.

(4) Procedure regulations may empower a tribunal to require a party to proceedings before it to reimburse another party to the proceedings the whole or any part of any fees paid by him.

(5) Procedure regulations may 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) If they do so they may apply, subject to such modifications as may be specified in the regulations, any other statutory means-testing regime as it has effect from time to time.

Costs

12

(1) A tribunal may determine that a party to proceedings before it is to pay the costs incurred by another party in connection with the proceedings in any circumstances falling within sub-paragraph (2).

(2) The circumstances are where—

(a) he has failed to comply with an order made by the tribunal;

(b) in accordance with regulations made by virtue of paragraph 5(4), the tribunal dismisses, or allows, the whole or part of an application or appeal by reason of his failure to comply with a requirement imposed by regulations made by virtue of paragraph 5;

(c) in accordance with regulations made by virtue of paragraph 9, the tribunal dismisses the whole or part of an application or appeal made by him to the tribunal; or

(d) he has, in the opinion of the tribunal, acted frivolously, vexatiously, abusively, disruptively or otherwise unreasonably in connection with the proceedings.

(3) The amount which a party to proceedings may be ordered to pay in the proceedings by a determination under this paragraph must not exceed—

(a) £500 or, in the case of an application to a tribunal under the Mobile Homes Act 1983, £5,000, or

(b) such other amount as may be specified in procedure regulations.

(4) A person may not be required to pay costs incurred by another person in connection with proceedings before a tribunal, except—

(a) by a determination under this paragraph, or

(b) in accordance with provision made by any enactment other than this paragraph.

Enforcement

13

Procedure regulations may provide for decisions of tribunals to be enforceable, with the permission of the county court , in the same way as orders of that court.

SCHEDULE 14

Introduction: buildings (or parts) which are not HMOs for purposes of this Act (excludingPart 1)

1

(1) The following paragraphs list buildings which are not houses in multiple occupation for any purposes of this Act other than those of Part 1.

(2) In this Schedule “building” includes a part of a building.

Buildings controlled or managed by public sector bodies etc.

2

(1) A building where the person managing or having control of it is—

(a) a local housing authority,

(aa) a non-profit registered provider of social housing,

(b) a body which is registered as a social landlord under Part 1 of the Housing Act 1996 (c. 52),

(d) the Mayor's Office for Policing and Crime,

(e) a fire and rescue authority, or

(f) a health service body within the meaning of section 9 of the National Health Service Act 2006.

(2) In sub-paragraph (1)(e) “ fire and rescue authority ” means a fire and rescue authority under the Fire and Rescue Services Act 2004 (c. 21).

Buildings regulated otherwise than under this Act

3

Any building whose occupation is regulated otherwise than by or under this Act and which is of a description specified for the purposes of this paragraph in regulations made by the appropriate national authority.

Buildings occupied by students

4

(1) Any building—

(a) which is occupied solely or principally by persons who occupy it for the purpose of undertaking a full-time course of further or higher education at a specified educational establishment or at an educational establishment of a specified description, and

(b) where the person managing or having control of it is the educational establishment in question or a specified person or a person of a specified description.

(2) In sub-paragraph (1) “ specified ” means specified for the purposes of this paragraph in regulations made by the appropriate national authority.

(3) Sub-paragraph (4) applies in connection with any decision by the appropriate national authority as to whether to make, or revoke, any regulations specifying—

(a) a particular educational establishment, or

(b) a particular description of educational establishments.

(4) The appropriate national authority may have regard to the extent to which, in its opinion—

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