Renting Homes: The Final Report - Law Commission

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MANAGEMENT CODES AND CONSULTATION 14 11.8 The Bill makes provision for a community landlord to negotiate a “management code” with the contract-holders of its properties, dealing with how the landlord intends to exercise its rights or comply with its obligations. Such a code will not come into effect until and unless it is agreed by the contract-holders or their representatives. Once a management code is agreed, it must be taken into account by the court when considering a possession action or the withholding of consent by the landlord. Thus a community landlord can require a court to have regard to its management policies, but only if it is able to get its contract-holders to sign up to them. This approach should provide a modest but significant boost to contract-holder participation. 15 11.9 More generally, community landlords are required to make arrangements for consulting contract-holders on questions of housing management 16 and to publish a statement of those arrangements. 17 These arrangements, already in the existing law, are carried over into the new scheme. TENANCY DEPOSITS 11.10 One issue, with which we have not been directly concerned, but which has been an important background issue during the time we have been engaged on our project has been whether and if so how to regulate tenancy deposits. After much debate, the Housing Act 2004 included provisions 18 that require landlords who take deposits from assured shorthold tenants to secure those deposits in an approved tenancy deposit scheme. It is clear that regulation of the tenancy deposit scheme can be made easier through use of our recommended scheme. 11.11 Our Bill contains provisions dealing with tenancy deposits. The effect of them is to extend the current statutory system for the protection of deposits to all occupation contracts. 19 It is a fundamental term of all occupation contracts that if a deposit 20 is to be paid in connection with an occupation contract, the deposit must be dealt with in accordance with an authorised deposit scheme. 21 The landlord must give the contract-holder and any interested third party sufficient information 22 to enable them to ensure that the requirement has been complied with. 23 14 This is discussed in Part 8 of Renting Homes (2003) Law Com No 284. 15 Cl 211, sch 4 para 6(8) and sch 7 para 8. The appropriate authority has the power to regulate the procedures for obtaining the agreement of contract-holders or their representatives to the management code: cls 211(3) to (5). 16 Cl 212. 17 Cl 213. 18 Ss 212 to 215 and sch 10 to the Act. 19 Part 2, ch 1, cls 36 to 42. 20 Defined to mean money paid as security: cl 37(4). 21 Deposit schemes are defined in cl 38. 22 To be defined in regulations: cl 39. 23 Cl 37. 146
11.12 The contract-holder has the right to apply for a range of orders requiring a landlord who is in breach of the term to remedy the breach. 24 11.13 It is also a fundamental term of all occupation contracts that landlords may not require security to be given in any form other than money or a guarantee. 25 The contract holder has the right to apply to the county court for an order requiring the landlord to return any non-monetary security. 26 11.14 Landlords under a standard contract, who are in breach of the requirements, are unable to claim possession using the landlord’s notice ground. 27 STEVE HUMPHREYS, Chief Executive 7 April 2006 24 Cl 41. 25 Cl 36. 26 Cl 40. (Signed) ROGER TOULSON, Chairman HUGH BEALE STUART BRIDGE JEREMY HORDER KENNETH PARKER 27 Cl 178. The landlord’s notice ground is discussed above, at paras 4.57 to 4.63. 147
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The Law Commission (LAW COM No 297)
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THE LAW COMMISSION RENTING HOMES: T
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Obtaining a contract by deception 3
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Fundamental provisions applying to
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Deception 93 Persons with “home r
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Limits 128 Access 129 Parties to pr
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THE LAW COMMISSION RENTING HOMES: T
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(4) such other aspects of Housing L
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Flexibility 1.17 Finally, and most
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1.26 At present, many landlords do
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1.37 There is also power to define
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1.47 We have heard it suggested tha
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CHANGES IN THE LEGISLATIVE CONTEXT
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1.70 The position would be substant
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(1) the creation of model contracts
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PART 2 THE SCHEME IN OUTLINE 2.1 In
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Fundamental terms 2.12 Fundamental
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2.24 While consent must not be unre
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Obtaining a contract by deception 2
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2.45 We are aware that the current
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2.57 Nevertheless, there have to be
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PART 3 OCCUPATION CONTRACTS INTRODU
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3.9 A number of points about the de
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3.12 To prevent abuse of this rule,
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(b) Where a local housing authority
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Community landlords 3.23 The starti
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(9) Contracts relating to accommoda
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(3) supplementary terms; 84 and (4)
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The detail of these fundamental pro
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Landlords’ own contracts 3.54 The
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Variation 3.58 In addition the Bill
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3.70 Where a fixed term standard co
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PART 4 TERMINATION OF OCCUPATION CO
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4.11 However, reaching this result
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4.19 Similarly, on the death of a j
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Other provisions Death of the landl
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4.38 We noted in Renting Homes that
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TERMINATION BY THE LANDLORD 4.44 Ou
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4.53 In accordance with the “use
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4.62 If the landlord has given a no
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4.70 For social landlords and other
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(2) ground B applies where the prem
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Secure and periodic standard contra
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(3) the joint contract-holder occup
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4.102 At the end of the four week p
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The possession notice 5.6 The court
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Estate management grounds 5.14 Wher
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POWERS OF THE COURT Discretionary g
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Renting Homes: The Final Report - Law Commission

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