The Houses in Multiple Occupation (Certain Blocks of Flats) (Modifications to the Housing Act 2004 and Transitional Provisions for section 257 HMOs) (England) Regulations 2007

• Citation: S.I. 2007/1904
• Sections: 13

Section 1 Citation, commencement and application

(1) These Regulations may be cited as the Houses in Multiple Occupation (Certain Blocks of Flats) (Modifications to the Housing Act 2004 and Transitional Provisions for section 257 HMOs ) (England) Regulations 2007 and shall come into force on 1st October 2007.

(2) These Regulations apply to section 257 HMOs in England.

Section 2 Modifications to Part 2 of the Housing Act 2004 (licensing of houses in multiple occupation)

The provisions of Part 2 (licensing of houses in multiple occupation) of the Housing Act 2004 (“ the Act ”) shall have effect in relation to a section 257 HMO , subject to the modifications specified in regulations 3 to 10.

Section 3 Modifications to Part 2 of the Housing Act 2004 (licensing of houses in multiple occupation)

In section 61 (requirement for HMOs to be licensed) after subsection (6) add—

(7) In this Part the “person having control” in respect of a section 257 HMO is—

(a) in relation to an HMO in respect of which no person has been granted a long lease of a flat within the HMO, the person who receives the rack rent for the HMO, whether on his own account or as an agent or trustee of another person;

(b) in relation to an HMO in respect of which a person has been granted a long lease of a flat within the HMO, the person who falls within the first paragraph of subsection (8) to apply, taking paragraph (a) of that subsection first, paragraph (b) next, and so on.

(8) A person falls within this subsection if the person—

(a) has acquired the right to manage the HMO under Part 2 of the Commonhold and Leasehold Reform Act 2002 ;

(b) has been appointed by the Leasehold Valuation Tribunal under section 24 of the Landlord and Tenant Act 1987 ;

(c) is the person who is the lessee of the whole of the HMO under a lease between him and a head lessor or the freeholder, or is the freeholder of the HMO; or

(d) has been appointed to manage the HMO by the freeholder, by a head lessor of the whole of the HMO, or by a person who has acquired the right to manage the HMO under Part 2 of the Commonhold and leasehold Reform Act 2002.

(9) In this section “long lease” means a lease that—

(a) is granted for a term certain exceeding 21 years, whether or not it is (or may become terminable) before the end of that term; or

(b) is for a term fixed by law under a grant with a covenant or obligation for perpetual renewal, other than a lease by sub-demise from one which is not a long lease,

and neither the lease nor any superior lease contains a provision enabling the lessor or superior lessor to terminate the tenancy, other than by forfeiture, before the end of that term.

Section 4 Modifications to Part 2 of the Housing Act 2004 (licensing of houses in multiple occupation)

In section 64 (grant or refusal of a licence) omit subsection (3)(a) and for subsection (4) substitute—

(4) When deciding whether the proposed licence holder is a fit and proper person to be the licence holder the local housing authority must take into consideration whether that person has control of the HMO and the extent to which he has control over it.

Section 5 Modifications to Part 2 of the Housing Act 2004 (licensing of houses in multiple occupation)

In section 65 (tests as to suitability for multiple occupation)—

(a) for subsection (1) substitute—

(1) The local housing authority cannot be satisfied that the house is reasonably suitable for occupation as a section 257 HMO if they consider that—

(a) the common parts of the HMO; or

(b) any flat within the HMO other than a flat let on a long lease,

fail to meet prescribed standards.

(b) after subsection (1) add—

(1A) Where a house becomes a section 257 HMO as a result of conversion works carried out on the house after 1 st October 2007, any flat within the HMO in respect of which a long lease is granted after that date shall be treated for the purpose of subsection (1) as though no such lease has been granted unless—

(a) the local housing authority are satisfied that the appropriate building standards have been met in relation to that flat; or

(b) the local housing authority are satisfied that the lease has been granted by a person other than the freeholder or head lessor of the whole of the HMO.

(c) omit subsection (2);

(d) in paragraph (a) of subsection (4) omit “number,”; and

(e) after subsection (4) add—

(5) In this section “long lease” has the same meaning as in section 61(9).

Section 6 Modifications to Part 2 of the Housing Act 2004 (licensing of houses in multiple occupation)

In section 67 (licence conditions) after subsection (1) insert—

(1A) For the purposes of section 67(1) a licence may not include a condition that regulates the use, occupation or contents of any part of an HMO unless the condition relates to a matter over which it would be reasonable to expect the licence holder, in all the circumstances, to exercise control.

Section 7 Modifications to Part 2 of the Housing Act 2004 (licensing of houses in multiple occupation)

In section 73 (other consequences of operating unlicensed HMOs: rent repayment orders) in subsection (10)—

(a) for the definition of “the appropriate person” substitute—

“the appropriate person”, in relation to any payment of housing benefit or periodical payments payable in connection with occupation of a part of a section 257 HMO means the person who at the time when such benefit or payments were made was the person—

(a) having control of the HMO; and

(b) entitled to receive on his own account periodical payments in connection with such occupation of the part of the HMO in respect of which the payment or housing benefit relates.

(b) after the definition of “periodical payments” insert—

“rent” does not include ground rent, service charges or insurance charges paid under the terms of a lease in respect of a flat within a section 257 HMO .

Section 8 Modifications to Part 2 of the Housing Act 2004 (licensing of houses in multiple occupation)

In section 75 (other consequences of operating unlicensed HMOs: restrictions on terminating tenancies)—

(a) for subsection (1) substitute—

(1) No section 21 notice may be given in relation to a shorthold tenancy of a flat in an unlicensed section 257 HMO by the person having control of the HMO so long as it remains such an HMO.

(b) after subsection (2) insert—

(3) Subsection (1) does not affect the right of any person (other than the person having control of a section 257 HMO) to serve a section 21 notice in respect of a shorthold tenancy of a flat in such an HMO.

Section 9 Modifications to Part 2 of the Housing Act 2004 (licensing of houses in multiple occupation)

In section 78 (index of defined expressions: Part 2) in the entry relating to a person having control for the reference to section 263(1) and (2) substitute a reference to section 61(7).

Section 10 Modifications to Part 2 of the Housing Act 2004 (licensing of houses in multiple occupation)

In Schedule 4—

(a) in paragraph (1) after “conditions” insert “but in the case of a licence under Part 2, this is subject to sub-paragraph (6)”;

(b) after sub-paragraph (5) insert—

(6) The conditions contained in sub-paragraphs (2) to (5) apply only in relation to any part of a section 257 HMO over which the licence holder exercises control, or over which it would be reasonable to expect that he would exercise control.

Section 11 Modification to Part 4 of the Act (additional control provisions in relation to residential accommodation)

Section 139 of the Act (service of overcrowding notices) shall have effect in relation to a section 257 HMO as if at the end of paragraph 1(b) there were inserted—

(1A) This Chapter also applies, in the case of a section 257 HMO which is required to be licensed under Part 2, to any flat within that HMO in respect of which a long lease has been granted and over which the licence holder cannot reasonably be expected to exercise control.

(1B) In subsection (1A) “long lease” means a lease that—

(a) is granted for a term certain exceeding 21 years, whether or not it is (or may become terminable) before the end of that term; or

(b) is for a term fixed by law under a grant with a covenant or obligation for perpetual renewal, other than a lease by sub-demise from one which is not a long lease,

and neither the lease nor any superior lease contains a provision enabling the lessor or superior lessor to terminate the tenancy, other than by forfeiture, before the end of that term.

Section 12 Modification to section 263 of the Act

(1) Section 263 of the Act (meaning of “person having control” and “person managing” etc. ) has effect as if, after subsection (1), there were inserted—

(1A) Subsection (1) does not apply to any reference in Parts 2 or 4 to “person having control” where the reference relates to a person having control of a section 257 HMO.

(1B) Any reference in Part 4 to a person having control in respect of a section 257 HMO has the same meaning as in section 61(7).

Section 13 Repeal of Part 11 of the Housing Act 1985: transitional provisions

(1) During the period beginning on 1st October 2007 and ending on 1st October 2008, the repeal of sections 346, 346A, 346B, 347, 348, 348A to 348G, 350, 351 and 395 to 397 of the Housing Act 1985 (“the 1985 Act ”) shall not have effect in relation to any registration scheme which—

(a) conforms to a model scheme prepared by the Secretary of State under section 346B of the 1985 Act; or

(b) was confirmed by the Secretary of State before 6th April 2006,

in so far as such scheme applies to a relevant converted block of flats that is registered or required to be registered under such scheme.

(2) During the period beginning on 1st October 2007 and ending on 1st October 2008, the maximum permissible fee payable on registration, or re-registration, of a relevant converted block of flats shall be calculated as one fifth of the fee that would normally be chargeable by the local housing authority operating the registration scheme.

(3) During the period beginning on 1st October 2007 and ending on 1st October 2008—

(a) the repeal of sections 352, 352A and 353 of, and Schedule 10 to, the 1985 Act shall not have effect in relation to any notice served before 1st October 2008 under section 352(1) of that Act in relation to a relevant converted block of flats; and

(b) the repeal of sections 354, 355, 356, and 395 to 397 of the 1985 Act shall not have effect in relation to the commission before 1 st October 2008 of any offence concerning a relevant converted block of flats under—

(i) subsection (2) of section or 355 of that Act; or

(ii) subsection (2) of section 356 of that Act,

concerning a relevant converted block of flats.

(4) In relation to an appeal brought under subsection (2) of section 357 of the 1985 Act before 1st October 2007, a decision of a court to vary, or not to revoke, a direction under section 354 of that Act shall not have effect.

(5) During the period beginning on 1st October 2007 and ending on 1st October 2008—

(a) the repeal of sections 369 and 395 to 397 of the 1985 Act shall not have effect in relation to the commission before 1 st October 2007 of any offence under regulations made under section 369 of that Act concerning a relevant converted block of flats;

(b) the repeal of section 372 of the 1985 Act shall not have effect in relation to any notice served under subsection (1) of that section concerning a relevant converted block of flats before that date; and

(c) the repeal of section 373 of the 1985 Act shall not have effect in relation to an appeal made before 1 st October 2007 under subsection (1) of that section concerning a relevant converted block of flats

(6) During the period beginning on 1st October 2007 and ending on 1st October 2009 the repeal of sections 375 to 377A and 378 of, and Schedule 10 to, the 1985 Act shall not have effect in relation to any notice served before 1st October 2007 under section 352 or 372 of that Act concerning a relevant converted block of flats.

(7) In this regulation “relevant converted block of flats” means a building or a part of a building which is—

(a) a converted block of flats to which section 257 of the 2004 Act applies; and

(b) a house in multiple occupation for the purposes of Part 11 of the 1985 Act.