The Local Authorities (Rental Auctions) (England) and Town and Country Planning (General Permitted Development) (Amendment) Regulations 2024

• (b) within 5 working days of completion of the schedule of condition to the tenant’s reasonable satisfaction the tenant must supply the landlord with a copy of the schedule of condition.

• (2) Provision that, within 5 working days of receipt of the schedule of condition, the landlord may—

• (a) give the tenant notice that the schedule of condition is final and binding for the purposes of the tenancy (in which case the parties must each sign a counterpart of the schedule of condition recording it and each attach a copy to the tenancy and counterpart), or

• (b) give the tenant notice that the schedule of condition is not agreed as final and binding for the purposes of the tenancy (in which case the parties must follow the procedure provided for under sub-paragraph (4)).

• (3) Provision that, in the event that the landlord fails to give the tenant any notice under sub-paragraph (2) then the schedule of condition will be deemed to be final and binding for the purposes of the tenancy.

• (4) Provision that—

• (a) if the landlord gives the tenant notice in accordance with sub-paragraph (2)(b), the parties must in good faith seek to agree such reasonable variations to the schedule of condition as soon as reasonably practicable within 10 working days (failing which either the landlord or the tenant may instruct the Independent Surveyor to prepare the schedule of condition),

• (b) the schedule of condition prepared by an Independent Surveyor (including a decision as to the costs of the preparation) is final and binding for the purposes of this tenancy, and

• (c) for these purposes, “Independent Surveyor” means an independent surveyor agreed by the landlord and the tenant or (failing agreement) nominated at the request of either party by the president of the Royal Institution of Chartered Surveyors or any person authorised at the relevant time to act on his behalf (either of whose nomination will be binding).

• (5) An undertaking that the landlord and tenant will each provide reasonable assistance to the other to undertake and finalise the schedule of condition.

No implied rights

29

Provision that nothing in the tenancy impliedly grants to the tenant any rights other than those expressly granted by the tenancy.

Exclusion of warranty about use

30

Provision that nothing in the tenancy implies a warranty that the premises may be used for any purpose.

Notices

31

Provision that—

• (a) section 196 of the Law of Property Act 1925[^f00025] applies to all notices and documents relating to the tenancy;

• (b) where the expression “tenant” includes more than one person, service on any one of them is to be treated as service on them all.

Third parties

32

Provision that the parties to the tenancy do not intend any term of the tenancy to be enforceable solely by virtue of the Contracts (Rights of Third Parties) Act 1999[^f00026] by any person who is not a party.

Section 207 of the Act

33

Where the local authority is granting the tenancy in the exercise of its powers under section 207 of the Act, provision that—

• (a) the local authority has entered into the tenancy pursuant to its power set out in section 207(2) of the Act;

• (b) pursuant to section 207(3) of the Act, the parties acknowledge and agree that the tenancy has effect as if it was entered into by the landlord instead of the local authority;

• (c) the local authority is acting under section 204(4) of the Act in its own name but is acting so as to bind the landlord rather than itself;

• (d) notwithstanding any other provisions in the tenancy, the local authority has no liability whatsoever arising out of or in connection with the tenancy or in respect of the performance of the obligations on the part of the landlord contained in the tenancy and the tenant acknowledges that no claims can be made against the local authority for any failures on the part of the landlord.

Signed

Signed by authority of the Secretary of State for Housing, Communities and Local Government

Alex Norris — Parliamentary Under Secretary of State — Department for Housing, Communities and Local Government — 7th November 2024

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

These Regulations are made under the Town and Country Planning Act 1990 (c. 8) and the Levelling-up and Regeneration Act 2023 (c. 55) (“the 2023 Act”). They set out the process to be followed when a local authority exercises the powers given to it in Part 10 of the 2023 Act to arrange for a rental auction to be carried out in respect of qualifying high-street premises. They also amend the Town and Country Planning (General Permitted Development) (England) Order 2015 (S.I. 2015/596) (“the General Permitted Development Order”) to provide for temporary planning permission for a change of use of such premises to a suitable high-street use for the duration of a tenancy granted following a rental auction held under Part 10 of the 2023 Act.

Part 2 of the Regulations make provision for rental auctions. Regulation 3 requires local authorities to consult on any proposal to designate a high street or a town centre for the purposes of section 191 of the 2023 Act, or to vary or withdraw an existing designation. Regulation 4 of, and Schedule 1 to, the Regulations set out the forms to be used for initial letting notices, final letting notices and counter-notices served under sections 195, 198 and 201 respectively of the 2023 Act.

Regulation 5 requires the local authority to carry out a survey of premises before arranging a rental auction in relation to those premises. Regulations 6 to 10 and Schedules 2 and 3 to the Regulations set out the steps which must be taken by the local authority and by the landlord of the premises concerned in weeks one to ten of the auction period, and provide for the terms of the tenancy contract (Schedule 2) and the tenancy (Schedule 3). Regulation 11 provides for who the local authority may accept as the successful bidder, but also gives the local authority power to decide not to accept any bid. Regulation 12 determines when the rental auction is concluded, and regulation 13 makes provision for payment of the costs of the auction process. Regulation 14 provides for the service of any documents required as part of the auction process.

Part 3 of the Regulations amends Part 4 of Schedule 2 to the General Permitted Development Order to provide for planning permission for a temporary change of use in consequence of the grant of a tenancy following a rental auction held under Part 10 of the 2023 Act.

A full impact assessment has not been produced for this instrument, as no, or no significant, impact on the private, voluntary or public sector is foreseen.

Footnotes

[^f00001]: 1990 c. 8. Section 59 has been amended by paragraph 4 of Schedule 1 to the Growth and Infrastructure Act 2013 (c. 27). There are other amendments which are not relevant to these Regulations.

[^f00002]: 2023 c. 55.

[^f00003]: “Qualifying high-street premises” is defined in section 192(2) of the Levelling-up and Regeneration Act 2023 (c. 55) (“the 2023 Act”).

[^f00004]: “Premises” are defined in section 218(3) of the 2023 Act. “rental auction” is defined in section 203(2) of the 2023 Act.

[^f00005]: 1971 c. 80.

[^f00006]: “Local authority” is defined in section 218(2) of the 2023 Act.

[^f00007]: “Landlord” is defined in section 218(6) of the 2023 Act.

[^f00008]: “Mortgagee” is defined in section 218(10) of the 2023 Act.

[^f00009]: “Rental auction” is defined in section 203(2) of the 2023 Act.

[^f00010]: Enquiries of local authorities (2016). A specimen of each of forms CON29, CON29O and CON29DWCom is available on www.gov.uk and may be obtained from the Department for Levelling-up, Housing and Communities, at 2 Marsham Street, London, SW1P 4DF.

[^f00011]: Optional enquiries of local authority (2016).

[^f00012]: Standard commercial drainage and water enquiries (2021).

[^f00013]: “Tenancy contract” is defined in section 204(3) of the Act.

[^f00014]: 2006 c. 46.

[^f00015]: 2000 c. 26. There are amendments to section 125(1) which are not relevant to these Regulations.

[^f00016]: S.I. 2015/596. Class DA was inserted into Part 4 by S.I. 2020/330 and amended by S.I. 2021/814. There are other amendments to Part 4 of Schedule 2 which are not relevant to these Regulations.

[^f00017]: 1954 c. 56. Section 24 was substituted by Schedule 1 to the Law of Property Act 1969 (c. 59) and amended by S.I. 2003/3096. Sections 24A to 24D were inserted by S.I. 2003/3096, and sections 25 and 26 were also amended by S.I. 2003/3096.

[^f00018]: A specimen form of the Standard Commercial Property Conditions (Third Edition – 2018 revision) may be downloaded from https://www.lawsociety.org.uk/topics/property/freehold-forms and a hard copy obtained from the Ministry of Housing, Communities and Local Government, 2 Marsham Street, London SW1P 4DF.

[^f00019]: British Standards are published by the British Standards Institution, a private company originally incorporated by Royal Charter in 1929 as the British Engineering Standards Association.

[^f00020]: 1994 c. 36.

[^f00021]: 2002 c. 9. Schedule 1 was amended by s. 157(7) of the Localism Act 2011 (c. 20).

[^f00022]: 1986 c. 45. Part A1 was inserted by section 1(1) of the Corporate Insolvency and Governance Act 2020 (c. 12). There are amendments to Part A1 which are not relevant to this instrument.

[^f00023]: 1925 c. 20 (15 and 16 Geo 5).

[^f00024]: 1996 c. 23.

[^f00025]: Section 196 was amended by paragraph 75 of Schedule 12 to the Postal Services Act 2011 (c. 5) and S.I. 2001/1149.

[^f00026]: 1999 c. 31.