Leasehold Reform (Ground Rent) Act 2022

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<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="crossheading-application-of-act"><heading>Application of Act</heading><section eId="section-1"><num>1</num><heading>Regulated leases</heading><subsection eId="section-1-1"><num>(1)</num><intro><p>In this Act a “<term refersTo="#term-regulated-lease" eId="term-regulated-lease">regulated lease</term>” means a lease which meets the following conditions—</p></intro><level class="para1" eId="section-1-1-a"><num>(a)</num><content><p>it is a long lease of a single dwelling,</p></content></level><level class="para1" eId="section-1-1-b"><num>(b)</num><content><p>it is granted for a premium,</p></content></level><level class="para1" eId="section-1-1-c"><num>(c)</num><content><p>it is granted on or after the relevant commencement day, otherwise than in pursuance of a contract made before that day, and</p></content></level><level class="para1" eId="section-1-1-d"><num>(d)</num><content><p>when it is granted, it is not an excepted lease,</p></content></level><wrapUp><p>(but see <ref href="#section-1-5">subsection (5)</ref>).</p></wrapUp></subsection><subsection eId="section-1-2"><num>(2)</num><content><p>The “<term refersTo="#term-relevant-commencement-day" eId="term-relevant-commencement-day">relevant commencement day</term>”, in relation to a lease, is the day on which this Act comes fully into force in relation to leases of that kind (see section 25).</p></content></subsection><subsection eId="section-1-3"><num>(3)</num><content><p>For the purposes of <ref href="#section-1-1">subsection (1)</ref><ref href="#section-1-1-c">(c)</ref> “<term refersTo="#term-contract" eId="term-contract">contract</term>” does not include an option or right of first refusal.</p></content></subsection><subsection eId="section-1-4"><num>(4)</num><content><p>In this Act references to the grant of a lease include the case where, by virtue of any variation of a lease, there is a deemed surrender and regrant.</p></content></subsection><subsection eId="section-1-5"><num>(5)</num><intro><p>Where there is a deemed surrender and regrant by virtue of the variation of a lease which is—</p></intro><level class="para1" eId="section-1-5-a"><num>(a)</num><content><p>a regulated lease, or</p></content></level><level class="para1" eId="section-1-5-b"><num>(b)</num><content><p>a lease granted before the relevant commencement day,</p></content></level><wrapUp><p><ref href="#section-1-1">subsection (1)</ref> applies as if <ref href="#section-1-5-b">paragraph (b)</ref> were omitted.</p></wrapUp></subsection></section><section eId="section-2"><num>2</num><heading>Excepted leases</heading><hcontainer name="P2group"><heading>Business leases</heading><subsection eId="section-2-1"><num>(1)</num><intro><p>A lease is an excepted lease if—</p></intro><level class="para1" eId="section-2-1-a"><num>(a)</num><content><p>the terms of the lease expressly permit premises demised by the lease to be used for purposes which are business purposes (and do not require any further consent from the landlord for such use),</p></content></level><level class="para1" eId="section-2-1-b"><num>(b)</num><content><p>the nature of the business purposes permitted by the lease is such that the use of premises demised by the lease as a dwelling significantly contributes to the business purposes, and</p></content></level><level class="para1" eId="section-2-1-c"><num>(c)</num><content><p>at or before the time the lease is granted, the landlord and tenant (or prospective landlord and tenant) each give the other a written notice to the effect that they intend premises demised (or to be demised) by the lease to be used, and to continue to be used, for the purposes mentioned in paragraph <ref href="#section-2-1-a">(a)</ref>.</p></content></level></subsection><subsection eId="section-2-2"><num>(2)</num><content><p>The Secretary of State may by regulations make further provision about the form and content of notices under <ref href="#section-2-1">subsection (1)</ref><ref href="#section-2-1-c">(c)</ref>.</p></content></subsection><subsection eId="section-2-3"><num>(3)</num><content><p>“<term refersTo="#term-business" eId="term-business">Business</term>” includes a trade, profession or employment, but does not include a home business within the meaning of Part 2 of the Landlord and Tenant Act 1954 (see section 43ZA of that Act).</p></content></subsection></hcontainer><hcontainer name="P2group"><heading>Statutory lease extensions</heading><subsection eId="section-2-4"><num>(4)</num><content><p>A lease is an excepted lease if it is granted under Part 1 of the Leasehold Reform Act 1967 (tenant of leasehold house entitled to extended lease).</p></content></subsection><subsection eId="section-2-5"><num>(5)</num><content><p>A lease is an excepted lease if it is granted under Chapter 2 of Part 1 of the Leasehold Reform, Housing and Urban Development Act 1993 (tenant of flat entitled to extended lease).</p></content></subsection></hcontainer><hcontainer name="P2group"><heading>Community housing leases</heading><subsection eId="section-2-6"><num>(6)</num><intro><p>A lease is an excepted lease if—</p></intro><level class="para1" eId="section-2-6-a"><num>(a)</num><content><p>it is a community housing lease, and</p></content></level><level class="para1" eId="section-2-6-b"><num>(b)</num><content><p>it meets any further conditions specified in regulations made by the relevant authority.</p></content></level></subsection><subsection eId="section-2-7"><num>(7)</num><intro><p>A lease is a community housing lease if—</p></intro><level class="para1" eId="section-2-7-a"><num>(a)</num><content><p>the landlord under the lease is a community land trust <noteRef href="#key-36e4760e89cec946ca828f421c43680f" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>..., or</p></content></level><level class="para1" eId="section-2-7-b"><num>(b)</num><content><p>it is a lease of a dwelling in a building within paragraph 2B of Schedule 14 to the Housing Act 2004 (buildings controlled or managed by co-operative societies), disregarding sub-paragraph (3)(b) of that paragraph.</p></content></level></subsection><subsection eId="section-2-7A"><num><ins class="first" ukl:ChangeId="key-c6b84f37bcb8cee8f01619498e477b2d-1707341393651" ukl:CommentaryRef="key-c6b84f37bcb8cee8f01619498e477b2d"><noteRef uk:name="commentary" href="#key-c6b84f37bcb8cee8f01619498e477b2d" class="commentary"/>(7A)</ins></num><content><p><ins ukl:ChangeId="key-c6b84f37bcb8cee8f01619498e477b2d-1707341393651" ukl:CommentaryRef="key-c6b84f37bcb8cee8f01619498e477b2d">A “</ins><term refersTo="#term-community-land-trust"><ins ukl:ChangeId="key-c6b84f37bcb8cee8f01619498e477b2d-1707341393651" ukl:CommentaryRef="key-c6b84f37bcb8cee8f01619498e477b2d">community land trust</ins></term><ins ukl:ChangeId="key-c6b84f37bcb8cee8f01619498e477b2d-1707341393651" ukl:CommentaryRef="key-c6b84f37bcb8cee8f01619498e477b2d">” means a body corporate which satisfies the conditions in subsection (7B); and in those conditions “</ins><term refersTo="#term-local-community"><ins ukl:ChangeId="key-c6b84f37bcb8cee8f01619498e477b2d-1707341393651" ukl:CommentaryRef="key-c6b84f37bcb8cee8f01619498e477b2d">local community</ins></term><ins ukl:ChangeId="key-c6b84f37bcb8cee8f01619498e477b2d-1707341393651" ukl:CommentaryRef="key-c6b84f37bcb8cee8f01619498e477b2d">” means the individuals who live or work, or want to live or work, in a particular area.</ins></p></content></subsection><subsection eId="section-2-7B"><num><ins ukl:ChangeId="key-c6b84f37bcb8cee8f01619498e477b2d-1707341393651" ukl:CommentaryRef="key-c6b84f37bcb8cee8f01619498e477b2d">(7B)</ins></num><intro><p><ins ukl:ChangeId="key-c6b84f37bcb8cee8f01619498e477b2d-1707341393651" ukl:CommentaryRef="key-c6b84f37bcb8cee8f01619498e477b2d">The conditions are—</ins></p></intro><level class="para1" eId="section-2-7B-a"><num><ins ukl:ChangeId="key-c6b84f37bcb8cee8f01619498e477b2d-1707341393651" ukl:CommentaryRef="key-c6b84f37bcb8cee8f01619498e477b2d">(a)</ins></num><intro><p><ins ukl:ChangeId="key-c6b84f37bcb8cee8f01619498e477b2d-1707341393651" ukl:CommentaryRef="key-c6b84f37bcb8cee8f01619498e477b2d">that the body is established for the express purpose of furthering the social, economic and environmental interests of a local community by acquiring and managing land and other assets in order—</ins></p></intro><level class="para2" eId="section-2-7B-a-i"><num><ins ukl:ChangeId="key-c6b84f37bcb8cee8f01619498e477b2d-1707341393651" ukl:CommentaryRef="key-c6b84f37bcb8cee8f01619498e477b2d">(i)</ins></num><content><p><ins ukl:ChangeId="key-c6b84f37bcb8cee8f01619498e477b2d-1707341393651" ukl:CommentaryRef="key-c6b84f37bcb8cee8f01619498e477b2d">to provide a benefit to the local community, and</ins></p></content></level><level class="para2" eId="section-2-7B-a-ii"><num><ins ukl:ChangeId="key-c6b84f37bcb8cee8f01619498e477b2d-1707341393651" ukl:CommentaryRef="key-c6b84f37bcb8cee8f01619498e477b2d">(ii)</ins></num><content><p><ins ukl:ChangeId="key-c6b84f37bcb8cee8f01619498e477b2d-1707341393651" ukl:CommentaryRef="key-c6b84f37bcb8cee8f01619498e477b2d">to ensure that the assets are not sold or developed except in a manner which the trust’s members think benefits the local community, and</ins></p></content></level></level><level class="para1" eId="section-2-7B-b"><num><ins ukl:ChangeId="key-c6b84f37bcb8cee8f01619498e477b2d-1707341393651" ukl:CommentaryRef="key-c6b84f37bcb8cee8f01619498e477b2d">(b)</ins></num><intro><p><ins ukl:ChangeId="key-c6b84f37bcb8cee8f01619498e477b2d-1707341393651" ukl:CommentaryRef="key-c6b84f37bcb8cee8f01619498e477b2d">that the body is established under arrangements which are expressly designed to ensure that—</ins></p></intro><level class="para2" eId="section-2-7B-b-i"><num><ins ukl:ChangeId="key-c6b84f37bcb8cee8f01619498e477b2d-1707341393651" ukl:CommentaryRef="key-c6b84f37bcb8cee8f01619498e477b2d">(i)</ins></num><content><p><ins ukl:ChangeId="key-c6b84f37bcb8cee8f01619498e477b2d-1707341393651" ukl:CommentaryRef="key-c6b84f37bcb8cee8f01619498e477b2d">any profits from its activities will be used to benefit the local community (otherwise than by being paid directly to members);</ins></p></content></level><level class="para2" eId="section-2-7B-b-ii"><num><ins ukl:ChangeId="key-c6b84f37bcb8cee8f01619498e477b2d-1707341393651" ukl:CommentaryRef="key-c6b84f37bcb8cee8f01619498e477b2d">(ii)</ins></num><content><p><ins ukl:ChangeId="key-c6b84f37bcb8cee8f01619498e477b2d-1707341393651" ukl:CommentaryRef="key-c6b84f37bcb8cee8f01619498e477b2d">individuals who live or work in the particular area have the opportunity to become members of the trust (whether or not others can also become members), and</ins></p></content></level><level class="para2" eId="section-2-7B-b-iii"><num><ins ukl:ChangeId="key-c6b84f37bcb8cee8f01619498e477b2d-1707341393651" ukl:CommentaryRef="key-c6b84f37bcb8cee8f01619498e477b2d">(iii)</ins></num><content><p><ins class="last" ukl:ChangeId="key-c6b84f37bcb8cee8f01619498e477b2d-1707341393651" ukl:CommentaryRef="key-c6b84f37bcb8cee8f01619498e477b2d">the members of the trust control it.</ins></p></content></level></level></subsection></hcontainer><hcontainer name="P2group"><heading>Home finance plan leases</heading><subsection eId="section-2-8"><num>(8)</num><intro><p>A lease is an excepted lease if—</p></intro><level class="para1" eId="section-2-8-a"><num>(a)</num><content><p>it is a home finance plan lease, and</p></content></level><level class="para1" eId="section-2-8-b"><num>(b)</num><content><p>it meets any further conditions specified in regulations made by the Secretary of State.</p></content></level></subsection><subsection eId="section-2-9"><num>(9)</num><intro><p>A lease is a home finance plan lease if—</p></intro><level class="para1" eId="section-2-9-a"><num>(a)</num><content><p>it is granted pursuant to an arrangement which is a regulated home reversion plan for the purposes of Chapter 15A of Part 2 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (<ref eId="c00001" href="http://www.legislation.gov.uk/id/uksi/2001/544">S.I. 2001/544</ref>), or</p></content></level><level class="para1" eId="section-2-9-b"><num>(b)</num><content><p>it is granted by a finance provider to a home buyer pursuant to a rent to buy arrangement.</p></content></level></subsection><subsection eId="section-2-10"><num>(10)</num><intro><p>A “rent to buy arrangement” is an arrangement in relation to which the following conditions are met—</p></intro><level class="para1" eId="section-2-10-a"><num>(a)</num><content><p>a person (the “finance provider”) buys a qualifying interest, or an undivided share of a qualifying interest, in land, and</p></content></level><level class="para1" eId="section-2-10-b"><num>(b)</num><content><p>the arrangement provides for the obligation of another person (the “home buyer”) to buy the interest bought by the finance provider over the course of, or at the end of, a specified period.</p></content></level></subsection><subsection eId="section-2-11"><num>(11)</num><content><p>A “<term refersTo="#term-qualifying-interest-in-land" eId="term-qualifying-interest-in-land">qualifying interest in land</term>” means an estate in fee simple absolute or a term of years absolute, whether subsisting at law or in equity.</p></content></subsection></hcontainer></section></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="crossheading-prohibited-and-permitted-rent"><heading>Prohibited and permitted rent</heading><section eId="section-3"><num>3</num><heading>Prohibited rent</heading><subsection eId="section-3-1"><num>(1)</num><content><p>The landlord under a regulated lease must not require the tenant to make a payment of a prohibited rent.</p></content></subsection><subsection eId="section-3-2"><num>(2)</num><intro><p>For the purposes of subsection <ref href="#section-3-1">(1)</ref>, a landlord requires a tenant to make a payment of a prohibited rent where the landlord, or a person acting on behalf of the landlord, does either or both of the following in relation to the payment—</p></intro><level class="para1" eId="section-3-2-a"><num>(a)</num><content><p>asks the tenant for the payment;</p></content></level><level class="para1" eId="section-3-2-b"><num>(b)</num><content><p>having received the payment, fails to refund it to the tenant before the end of the period of 28 days beginning with the day after its receipt.</p></content></level></subsection><subsection eId="section-3-3"><num>(3)</num><intro><p>In this section—</p></intro><level class="para1" eId="section-3-3-a"><num>(a)</num><content><p>references to a landlord include a person who has ceased to be a landlord, and</p></content></level><level class="para1" eId="section-3-3-b"><num>(b)</num><intro><p>references to a tenant include—</p></intro><level class="para2" eId="section-3-3-b-i"><num>(i)</num><content><p>a person who has ceased to be a tenant;</p></content></level><level class="para2" eId="section-3-3-b-ii"><num>(ii)</num><content><p>a person acting on behalf of a tenant;</p></content></level><level class="para2" eId="section-3-3-b-iii"><num>(iii)</num><content><p>a person who has guaranteed the payment of rent by a tenant.</p></content></level></level></subsection><subsection eId="section-3-4"><num>(4)</num><content><p>In this Act “<term refersTo="#term-prohibited-rent" eId="term-prohibited-rent">prohibited rent</term>” means any rent, to the extent that it exceeds the permitted rent (see <span>sections 4 to 6</span>).</p></content></subsection></section><section eId="section-4"><num>4</num><heading>Permitted rent: general rule</heading><subsection eId="section-4-1"><num>(1)</num><content><p>This section applies to a regulated lease, other than a regulated lease to which section 5 or 6 applies.</p></content></subsection><subsection eId="section-4-2"><num>(2)</num><content><p>The permitted rent is a peppercorn rent.</p></content></subsection><subsection eId="section-4-3"><num>(3)</num><content><p>In this Act a “<term refersTo="#term-peppercorn-rent" eId="term-peppercorn-rent">peppercorn rent</term>” means an annual rent of one peppercorn.</p></content></subsection></section><section eId="section-5"><num>5</num><heading>Permitted rent: shared ownership leases</heading><subsection eId="section-5-1"><num>(1)</num><content><p>This section applies to a regulated lease which is a relevant shared ownership lease.</p></content></subsection><subsection eId="section-5-2"><num>(2)</num><intro><p>The permitted rent is—</p></intro><level class="para1" eId="section-5-2-a"><num>(a)</num><content><p>in respect of the tenant’s share in the demised premises, a peppercorn rent;</p></content></level><level class="para1" eId="section-5-2-b"><num>(b)</num><content><p>in respect of the landlord’s share in the demised premises, any rent.</p></content></level></subsection><subsection eId="section-5-3"><num>(3)</num><intro><p>A shared ownership lease is a lease—</p></intro><level class="para1" eId="section-5-3-a"><num>(a)</num><content><p>granted on payment of a premium calculated by reference to a percentage of the value of the demised premises or the cost of providing them, or</p></content></level><level class="para1" eId="section-5-3-b"><num>(b)</num><content><p>under which the tenant (or the tenant’s personal representatives) will or may be entitled to a sum calculated by reference, directly or indirectly, to the value of those premises.</p></content></level></subsection><subsection eId="section-5-4"><num>(4)</num><content><p>A relevant shared ownership lease is a shared ownership lease where the tenant’s share in the demised premises is less than 100%.</p></content></subsection><subsection eId="section-5-5"><num>(5)</num><content><p>The tenant’s share in the demised premises is the tenant’s initial share in the demised premises, plus any additional share or shares in the demised premises which the tenant has acquired.</p></content></subsection><subsection eId="section-5-6"><num>(6)</num><content><p>The landlord’s share in the demised premises is the share in the demised premises which is not comprised in the tenant’s share.</p></content></subsection><subsection eId="section-5-7"><num>(7)</num><content><p>Where a shared ownership lease does not reserve separate rents in respect of the tenant’s share in the demised premises and the landlord’s share in the demised premises, any rent reserved is to be treated as reserved in respect of the landlord’s share.</p></content></subsection><subsection eId="section-5-8"><num>(8)</num><content><p>This section does not apply to a regulated lease if section 6 applies to it.</p></content></subsection></section><section eId="section-6"><num>6</num><heading>Permitted rent: leases replacing pre-commencement leases</heading><subsection eId="section-6-1"><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1" eId="section-6-1-a"><num>(a)</num><content><p>the tenant under a pre-commencement lease is granted a new lease (a “replacement lease”) of premises which consist of, or include, some or all of the premises demised by the pre-commencement lease,</p></content></level><level class="para1" eId="section-6-1-b"><num>(b)</num><content><p>the term of the replacement lease begins before the end of the term of the pre-commencement lease, and</p></content></level><level class="para1" eId="section-6-1-c"><num>(c)</num><content><p>the replacement lease is a regulated lease.</p></content></level></subsection><subsection eId="section-6-2"><num>(2)</num><intro><p>The permitted rent under the replacement lease is—</p></intro><level class="para1" eId="section-6-2-a"><num>(a)</num><content><p>in respect of the excepted period, a rent not exceeding the rent that would have been payable under the pre-commencement lease in respect of that period;</p></content></level><level class="para1" eId="section-6-2-b"><num>(b)</num><content><p>in respect of the regulated period (if any), a peppercorn rent.</p></content></level></subsection><subsection eId="section-6-3"><num>(3)</num><intro><p>The “excepted period” is the period which—</p></intro><level class="para1" eId="section-6-3-a"><num>(a)</num><content><p>begins with the first day of the term of the replacement lease, and</p></content></level><level class="para1" eId="section-6-3-b"><num>(b)</num><content><p>ends with the last day of the term of the pre-commencement lease.</p></content></level></subsection><subsection eId="section-6-4"><num>(4)</num><intro><p>The “regulated period” is the period which—</p></intro><level class="para1" eId="section-6-4-a"><num>(a)</num><content><p>begins immediately after the excepted period, and</p></content></level><level class="para1" eId="section-6-4-b"><num>(b)</num><content><p>ends with the last day of the term of the replacement lease.</p></content></level></subsection><subsection eId="section-6-5"><num>(5)</num><intro><p>Where—</p></intro><level class="para1" eId="section-6-5-a"><num>(a)</num><content><p>the tenant under a lease to which <ref href="#section-6-2">subsection (2)</ref> applies is granted a new lease of premises which consist of, or include, some or all of the premises demised by that lease,</p></content></level><level class="para1" eId="section-6-5-b"><num>(b)</num><content><p>the term of the new lease begins before the end of the term of the pre-commencement lease, and</p></content></level><level class="para1" eId="section-6-5-c"><num>(c)</num><content><p>the new lease is a regulated lease,</p></content></level><wrapUp><p><span><ref href="#section-6-2">subsections (2)</ref> to <ref href="#section-6-4">(4)</ref></span> apply to the new lease, reading references to the replacement lease as references to the new lease.</p></wrapUp></subsection><subsection eId="section-6-6"><num>(6)</num><content><p><mod>Where the pre-commencement lease is a relevant shared ownership lease, <ref href="#section-6-2">subsection (2)</ref><ref href="#section-6-2-a">(a)</ref> applies as if after “payable” there were inserted <quotedText>“in respect of the tenant’s share in the demised premises”</quotedText>.</mod></p></content></subsection><subsection eId="section-6-7"><num>(7)</num><intro><p>Where a lease to which <ref href="#section-6-2">subsection (2)</ref> applies is a relevant shared ownership lease—</p></intro><level class="para1" eId="section-6-7-a"><num>(a)</num><content><p><mod>that subsection applies as if after “replacement lease” there were inserted <quotedText>“in respect of the tenant’s share in the demised premises”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-6-7-b"><num>(b)</num><content><p>the permitted rent in respect of the landlord’s share in the demised premises is any rent.</p></content></level></subsection><subsection eId="section-6-8"><num>(8)</num><intro><p>In this section—</p></intro><level class="para1" eId="section-6-8-a"><num>(a)</num><content><p>“<term refersTo="#term-pre-commencement-lease" eId="term-pre-commencement-lease">pre-commencement lease</term>” means a long lease of a dwelling which is granted before the day which is the relevant commencement day in relation to the replacement lease;</p></content></level><level class="para1" eId="section-6-8-b"><num>(b)</num><content><p>references to the end of the term of the pre-commencement lease are to what would have been the end of the term of the pre-commencement lease if the replacement lease had not been granted.</p></content></level></subsection><subsection eId="section-6-9"><num>(9)</num><content><p>Section 5<ref href="#section-5-3">(3)</ref> to <ref href="#section-5-7">(7)</ref> applies for the purposes of this section.</p></content></subsection></section></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" name="crossheading" ukl:Name="Pblock" eId="crossheading-effect-of-term-reserving-prohibited-rent"><heading>Effect of term reserving prohibited rent</heading><section eId="section-7"><num>7</num><heading>Term reserving prohibited rent treated as reserving permitted rent</heading><subsection eId="section-7-1"><num>(1)</num><content><p>This section applies where any term of a regulated lease to which a section specified in column 1 of the table applies reserves a prohibited rent.</p></content></subsection><subsection eId="section-7-2"><num>(2)</num><content><p>The term has effect as if, in place of the prohibited rent, it reserved the rent specified in column 2 of the table.</p></content></subsection><subsection eId="section-7-3"><num>(3)</num><content><p>Where the prohibited rent is reserved in respect of a period specified in column 3 of the table, or a share in the demised premises specified in column 4 of the table, or both, the term is treated as reserving the rent specified in column 2 of the table in respect of that period, that share, or that period and that share.</p><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Column 1</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Column 2</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Column 3</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Column 4</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Rent treated as reserved</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Period for which rent reserved</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Share in demised premises</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 4 (general rule)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">peppercorn rent</p></default:td><default:td/><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 5 (shared ownership leases)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">peppercorn rent</p></default:td><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">tenant’s share</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 6 (replacement leases)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">maximum permitted rent</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">excepted period</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">tenant’s share (where section 6<ref href="#section-6-7">(7)</ref> applies)</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 6 (replacement leases)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">peppercorn rent</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">regulated period</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">tenant’s share (where section 6<ref href="#section-6-7">(7)</ref> applies)</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></subsection><subsection eId="section-7-4"><num>(4)</num><content><p>The “<term refersTo="#term-maximum-permitted-rent" eId="term-maximum-permitted-rent">maximum permitted rent</term>” means the maximum rent permitted by section 6<ref href="#section-6-2">(2)</ref><ref href="#section-6-2-a">(a)</ref>.</p></content></subsection><subsection eId="section-7-5"><num>(5)</num><content><p>The other terms of the regulated lease have effect with any modifications necessary because of subsections <span><ref href="#section-7-2">(2)</ref> and <ref href="#section-7-3">(3)</ref></span>.</p></content></subsection><subsection eId="section-7-6"><num>(6)</num><content><p>For the purposes of this section, the terms of a regulated lease include the terms of any contract relating to the lease.</p></content></subsection><subsection eId="section-7-7"><num>(7)</num><content><p>Terms used in this section and in <span>sections 4 to 6</span> have the same meaning in this section as in those sections.</p></content></subsection></section></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="crossheading-enforcement"><heading>Enforcement</heading><section eId="section-8"><num>8</num><heading>Enforcement authorities</heading><subsection eId="section-8-1"><num>(1)</num><intro><p>Every local weights and measures authority in England or Wales—</p></intro><level class="para1" eId="section-8-1-a"><num>(a)</num><content><p>must enforce section 3 in its area, and</p></content></level><level class="para1" eId="section-8-1-b"><num>(b)</num><content><p>may enforce that section elsewhere in England or Wales.</p></content></level></subsection><subsection eId="section-8-2"><num>(2)</num><content><p>A district council that is not a local weights and measures authority may enforce section 3 in England (both inside and outside the council’s district).</p></content></subsection><subsection eId="section-8-3"><num>(3)</num><content><p>For the purposes of <ref href="#section-8-1">subsection (1)</ref><ref href="#section-8-1-a">(a)</ref> a breach of section 3 occurs in the area in which the premises demised by the lease are located (and where the premises are located in more than one area, the breach is taken to have occurred in each of those areas).</p></content></subsection><subsection eId="section-8-4"><num>(4)</num><content><p>The duty imposed and power conferred by this section are subject to section 9<ref href="#section-9-8">(8)</ref>.</p></content></subsection><subsection eId="section-8-5"><num>(5)</num><intro><p>In this Act, “<term refersTo="#term-enforcement-authority" eId="term-enforcement-authority">enforcement authority</term>” means—</p></intro><level class="para1" eId="section-8-5-a"><num>(a)</num><content><p>a local weights and measures authority in England or Wales, or</p></content></level><level class="para1" eId="section-8-5-b"><num>(b)</num><content><p>a district council that is not a local weights and measures authority.</p></content></level></subsection></section><section eId="section-9"><num>9</num><heading>Financial penalties</heading><subsection eId="section-9-1"><num>(1)</num><content><p>An enforcement authority may impose a financial penalty on a person if the authority is satisfied beyond reasonable doubt that the person has breached section 3<ref href="#section-3-1">(1)</ref>.</p></content></subsection><subsection eId="section-9-2"><num>(2)</num><intro><p>The amount of the financial penalty under <ref href="#section-9-1">subsection (1)</ref> is to be such amount as the authority determines but—</p></intro><level class="para1" eId="section-9-2-a"><num>(a)</num><content><p>is not to be less than £500 (the “minimum amount”), and</p></content></level><level class="para1" eId="section-9-2-b"><num>(b)</num><content><p>is not to be more than £30,000 (the “maximum amount”).</p></content></level></subsection><subsection eId="section-9-3"><num>(3)</num><intro><p>Where the same landlord has committed more than one breach of section 3<ref href="#section-3-1">(1)</ref> in relation to the same lease, only one financial penalty may be imposed on the landlord in respect of all of those breaches committed in the period—</p></intro><level class="para1" eId="section-9-3-a"><num>(a)</num><content><p>before the imposition of the penalty, and</p></content></level><level class="para1" eId="section-9-3-b"><num>(b)</num><content><p>where a penalty has previously been imposed on the landlord for a breach of section 3<ref href="#section-3-1">(1)</ref> in relation to the same lease, after the imposition of that earlier penalty.</p></content></level></subsection><subsection eId="section-9-4"><num>(4)</num><content><p>In subsection <ref href="#section-9-3">(3)</ref>, the “<term refersTo="#term-landlord" eId="term-landlord">landlord</term>” includes a person who has ceased to be a landlord.</p></content></subsection><subsection eId="section-9-5"><num>(5)</num><content><p>Where a person has committed one or more breaches of section 3<ref href="#section-3-1">(1)</ref> in relation to two or more leases, an enforcement authority may impose a single financial penalty on the person under subsection <ref href="#section-9-1">(1)</ref> in respect of all of those breaches.</p></content></subsection><subsection eId="section-9-6"><num>(6)</num><intro><p>In such a case, the amount of the penalty—</p></intro><level class="para1" eId="section-9-6-a"><num>(a)</num><content><p>is not to be less than the sum of the penalties that would be imposed if a separate penalty of the minimum amount were imposed on the person for each of the breaches, and</p></content></level><level class="para1" eId="section-9-6-b"><num>(b)</num><content><p>is not to be more than the sum of the penalties that would be imposed if a separate penalty of the maximum amount were imposed on the person for each of the breaches.</p></content></level></subsection><subsection eId="section-9-7"><num>(7)</num><content><p>For the purposes of subsection <ref href="#section-9-6">(6)</ref>, the effect of subsection <ref href="#section-9-3">(3)</ref> is to be taken into account when determining the minimum and maximum amount of the penalty that could be imposed on a person for breaches of section 3<ref href="#section-3-1">(1)</ref> in relation to the same lease.</p></content></subsection><subsection eId="section-9-8"><num>(8)</num><content><p>An enforcement authority may not impose a penalty on a person in respect of a breach of section 3<ref href="#section-3-1">(1)</ref> if another enforcement authority has imposed a penalty on the person in respect of the same breach.</p></content></subsection><subsection eId="section-9-9"><num>(9)</num><content><p>The relevant authority may by regulations amend this section so as to change the minimum amount or the maximum amount.</p></content></subsection><subsection eId="section-9-10"><num>(10)</num><content><p>The power in <ref href="#section-9-9">subsection (9)</ref> may be exercised only where the relevant authority considers it expedient to do so to reflect changes in the value of money.</p></content></subsection></section><section eId="section-10"><num>10</num><heading>Recovery of prohibited rent by enforcement authority</heading><subsection eId="section-10-1"><num>(1)</num><intro><p><ref href="#section-10-2">Subsection (2)</ref> applies where an enforcement authority is satisfied on the balance of probabilities that—</p></intro><level class="para1" eId="section-10-1-a"><num>(a)</num><content><p>a tenant has made a payment of a prohibited rent under a regulated lease, and</p></content></level><level class="para1" eId="section-10-1-b"><num>(b)</num><content><p>in breach of section 3<ref href="#section-3-1">(1)</ref> all or part of the payment has not been refunded.</p></content></level></subsection><subsection eId="section-10-2"><num>(2)</num><intro><p>The enforcement authority may order any one of the following persons to pay to the tenant the amount that has not been refunded—</p></intro><level class="para1" eId="section-10-2-a"><num>(a)</num><content><p>the landlord under the lease at the time the payment was made;</p></content></level><level class="para1" eId="section-10-2-b"><num>(b)</num><content><p>the landlord under the lease at the time the enforcement authority makes the order;</p></content></level><level class="para1" eId="section-10-2-c"><num>(c)</num><content><p>where the payment was made to a person acting on behalf of the landlord under the lease, that person.</p></content></level></subsection><subsection eId="section-10-3"><num>(3)</num><intro><p>Subsection <ref href="#section-10-2">(2)</ref> does not apply if—</p></intro><level class="para1" eId="section-10-3-a"><num>(a)</num><content><p>the tenant has made an application under section 13 for the recovery of the rent;</p></content></level><level class="para1" eId="section-10-3-b"><num>(b)</num><content><p>an enforcement authority has previously made an order under this section in relation to the payment.</p></content></level></subsection><subsection eId="section-10-4"><num>(4)</num><content><p>Where part or all of two or more payments of a prohibited rent made by a tenant under the same lease have not been refunded, the enforcement authority may make a single order under subsection <ref href="#section-10-2">(2)</ref> in respect of all the prohibited rent that has not been refunded.</p></content></subsection></section><section eId="section-11"><num>11</num><heading>Interest on amounts ordered to be paid under section 10</heading><subsection eId="section-11-1"><num>(1)</num><content><p>Where an enforcement authority orders a person to pay an amount under section 10, the authority may include provision in the order for interest to be payable on that amount in accordance with this section.</p></content></subsection><subsection eId="section-11-2"><num>(2)</num><content><p>Where the amount ordered to be paid relates to a single payment of a prohibited rent, interest is payable on the amount from the day on which the payment was made until the day on which the amount is paid.</p></content></subsection><subsection eId="section-11-3"><num>(3)</num><content><p>Where the amount ordered to be paid relates to more than one payment of a prohibited rent, interest is payable on so much of the amount as relates to a particular payment from the day on which that particular payment was made until that part of the amount is paid.</p></content></subsection><subsection eId="section-11-4"><num>(4)</num><content><p>The rate of interest is the rate for the time being specified in section 17 of the Judgments Act 1838.</p></content></subsection><subsection eId="section-11-5"><num>(5)</num><content><p>The total amount of interest payable under provision made under this section must not exceed the amount ordered to be paid under section 10.</p></content></subsection></section><section eId="section-12"><num>12</num><heading>Enforcement authorities: supplementary</heading><subsection eId="section-12-1"><num>(1)</num><intro><p>An enforcement authority must have regard to any guidance issued by—</p></intro><level class="para1" eId="section-12-1-a"><num>(a)</num><content><p>the Secretary of State, about the exercise of its functions under this Act in relation to a lease of premises in England;</p></content></level><level class="para1" eId="section-12-1-b"><num>(b)</num><content><p>the Welsh Ministers, about the exercise of its functions under this Act in relation to a lease of premises in Wales.</p></content></level></subsection><subsection eId="section-12-2"><num>(2)</num><content><p>For the investigatory powers available to an enforcement authority for the purposes of enforcing this Act, see Schedule 5 to the Consumer Rights Act 2015 (investigatory powers of enforcers etc).</p></content></subsection><subsection eId="section-12-3"><num>(3)</num><content><p><mod>In paragraph 10 of Schedule 5 to the Consumer Rights Act 2015 (duties and powers to which Schedule 5 applies), at the appropriate place, insert <quotedText>“section 8 of the Leasehold Reform (Ground Rent) Act 2022;”</quotedText>.</mod></p></content></subsection><subsection eId="section-12-4"><num>(4)</num><intro><p><ref href="#schedule">The Schedule</ref> contains provision about—</p></intro><level class="para1" eId="section-12-4-a"><num>(a)</num><content><p>the procedure for imposing a financial penalty under section 9 or making an order under section 10,</p></content></level><level class="para1" eId="section-12-4-b"><num>(b)</num><content><p>the time limits for doing so,</p></content></level><level class="para1" eId="section-12-4-c"><num>(c)</num><content><p>rights of appeal,</p></content></level><level class="para1" eId="section-12-4-d"><num>(d)</num><content><p>the recovery of a financial penalty imposed or an amount ordered to be paid, and</p></content></level><level class="para1" eId="section-12-4-e"><num>(e)</num><content><p>the retention of sums received.</p></content></level></subsection></section><section eId="section-13"><num>13</num><heading>Recovery of prohibited rent by tenant</heading><subsection eId="section-13-1"><num>(1)</num><intro><p>Subsection <ref href="#section-13-2">(2)</ref> applies where—</p></intro><level class="para1" eId="section-13-1-a"><num>(a)</num><content><p>a tenant has made a payment of a prohibited rent under a regulated lease, and</p></content></level><level class="para1" eId="section-13-1-b"><num>(b)</num><content><p>in breach of section 3<ref href="#section-3-1">(1)</ref> all or part of the payment has not been refunded.</p></content></level></subsection><subsection eId="section-13-2"><num>(2)</num><content><p>The tenant may apply to the appropriate tribunal for an order under this section (a “recovery order”).</p></content></subsection><subsection eId="section-13-3"><num>(3)</num><content><p>A recovery order is an order requiring the person specified in the application to pay to the tenant, before the end of the period of 28 days beginning with the day after that on which the order is made, the amount of prohibited rent that has not been refunded.</p></content></subsection><subsection eId="section-13-4"><num>(4)</num><intro><p>The persons who may be specified in the application are—</p></intro><level class="para1" eId="section-13-4-a"><num>(a)</num><content><p>the landlord under the lease at the time the payment was made,</p></content></level><level class="para1" eId="section-13-4-b"><num>(b)</num><content><p>the landlord under the lease at the time the application is made, or</p></content></level><level class="para1" eId="section-13-4-c"><num>(c)</num><content><p>where the payment was made to a person acting on behalf of the landlord under the lease, that person.</p></content></level></subsection><subsection eId="section-13-5"><num>(5)</num><content><p>Where part or all of two or more payments of a prohibited rent made by a tenant under the same lease have not been refunded, the appropriate tribunal may make a single recovery order in respect of all the prohibited rent that has not been refunded.</p></content></subsection><subsection eId="section-13-6"><num>(6)</num><content><p>The appropriate tribunal may not make a recovery order if an enforcement authority has made an order under section 10 in respect of the prohibited rent that has not been refunded.</p></content></subsection><subsection eId="section-13-7"><num>(7)</num><content><p>This section is without prejudice to any other remedy available to the tenant for recovering a payment of a prohibited rent.</p></content></subsection></section><section eId="section-14"><num>14</num><heading>Interest on amount ordered to be paid under section 13</heading><subsection eId="section-14-1"><num>(1)</num><content><p>Where the appropriate tribunal orders a person to pay an amount under section 13, the appropriate tribunal may include in the order provision for interest to be payable on the amount in accordance with this section.</p></content></subsection><subsection eId="section-14-2"><num>(2)</num><content><p>Where the amount ordered to be paid relates to a single payment of a prohibited rent, interest is payable on the amount from the day on which the payment was made until the day on which the amount is paid.</p></content></subsection><subsection eId="section-14-3"><num>(3)</num><content><p>Where the amount ordered to be paid relates to more than one payment of a prohibited rent, interest is payable on so much of the amount as relates to a particular payment from the day on which that particular payment was made until that part of the amount is paid.</p></content></subsection><subsection eId="section-14-4"><num>(4)</num><content><p>The rate of interest is the rate for the time being specified in section 17 of the Judgments Act 1838.</p></content></subsection><subsection eId="section-14-5"><num>(5)</num><content><p>The total amount of interest payable under provision made under this section must not exceed the amount ordered to be paid under section 13.</p></content></subsection></section><section eId="section-15"><num>15</num><heading>Application to appropriate tribunal as to effect of section 7</heading><subsection eId="section-15-1"><num>(1)</num><content><p>The landlord or tenant under a regulated lease may apply to the appropriate tribunal for a declaration as to the effect of section 7 on the terms of the lease.</p></content></subsection><subsection eId="section-15-2"><num>(2)</num><content><p>If, on an application under subsection <ref href="#section-15-1">(1)</ref>, the appropriate tribunal is satisfied that the terms of the regulated lease include a term for the reservation of a prohibited rent, the appropriate tribunal must make a declaration as to the effect of section 7 on the terms of the lease.</p></content></subsection><subsection eId="section-15-3"><num>(3)</num><intro><p>An application may be made under subsection <ref href="#section-15-1">(1)</ref> in respect of two or more regulated leases where—</p></intro><level class="para1" eId="section-15-3-a"><num>(a)</num><content><p>the landlord under each of the leases is the same person, and</p></content></level><level class="para1" eId="section-15-3-b"><num>(b)</num><intro><p>the application is made by—</p></intro><level class="para2" eId="section-15-3-b-i"><num>(i)</num><content><p>the landlord, or</p></content></level><level class="para2" eId="section-15-3-b-ii"><num>(ii)</num><content><p>the tenant under one of the leases with the consent of the tenant under each of the other leases,</p></content></level></level><wrapUp><p>(and in the case of such an application references in subsections (1) and (2) to the lease are to be read as references to each of the leases in respect of which the application is made).</p></wrapUp></subsection><subsection eId="section-15-4"><num>(4)</num><content><p>For the purposes of this section, the terms of a regulated lease include the terms of any contract relating to the lease.</p></content></subsection><subsection eId="section-15-5"><num>(5)</num><intro><p>Where the tenant is the registered proprietor of the leasehold estate relating to the lease—</p></intro><level class="para1" eId="section-15-5-a"><num>(a)</num><content><p>the landlord must, if the appropriate tribunal so directs, apply to the Chief Land Registrar (and pay the appropriate fee) for the declaration to be entered in the registered title;</p></content></level><level class="para1" eId="section-15-5-b"><num>(b)</num><content><p>the tenant may apply to the Chief Land Registrar (and pay the appropriate fee) for the declaration to be entered in the registered title.</p></content></level></subsection></section><section eId="section-16"><num>16</num><heading>Assistance</heading><subsection eId="section-16-1"><num>(1)</num><intro><p>An enforcement authority may help a tenant—</p></intro><level class="para1" eId="section-16-1-a"><num>(a)</num><content><p>to make an application under section 13 for a recovery order;</p></content></level><level class="para1" eId="section-16-1-b"><num>(b)</num><content><p>to make an application under section 15 for a declaration as to the effect of section 7 on the terms of a regulated lease (within the meaning of those sections);</p></content></level><level class="para1" eId="section-16-1-c"><num>(c)</num><content><p>to recover an amount that the appropriate tribunal orders to be paid under a recovery order.</p></content></level></subsection><subsection eId="section-16-2"><num>(2)</num><content><p>For example, the enforcement authority may help by conducting proceedings or giving advice.</p></content></subsection></section><section eId="section-17"><num>17</num><heading>Interpretation of enforcement provisions</heading><subsection eId="section-17-1"><num>(1)</num><intro><p>For the purposes of <span>sections 13 to 16</span> and <ref href="#schedule">the Schedule</ref>, the “appropriate tribunal” is—</p></intro><level class="para1" eId="section-17-1-a"><num>(a)</num><content><p>in relation to a lease of premises in England, the First-tier Tribunal;</p></content></level><level class="para1" eId="section-17-1-b"><num>(b)</num><content><p>in relation to a lease of premises in Wales, a leasehold valuation tribunal.</p></content></level></subsection><subsection eId="section-17-2"><num>(2)</num><intro><p>In sections 10, 13 and 16, references to a tenant include—</p></intro><level class="para1" eId="section-17-2-a"><num>(a)</num><content><p>a person acting on behalf of a tenant,</p></content></level><level class="para1" eId="section-17-2-b"><num>(b)</num><content><p>except in relation to section 16<ref href="#section-16-1">(1)</ref><ref href="#section-16-1-b">(b)</ref>, a person who has guaranteed the payment of rent by a tenant, and</p></content></level><level class="para1" eId="section-17-2-c"><num>(c)</num><content><p>except in relation to section 16<ref href="#section-16-1">(1)</ref><ref href="#section-16-1-b">(b)</ref>, a person who has ceased to be a tenant.</p></content></level></subsection></section></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="crossheading-administration-charges"><heading>Administration charges</heading><section eId="section-18"><num>18</num><heading>Administration charges for peppercorn rents</heading><subsection eId="section-18-1"><num>(1)</num><content><p>Schedule 11 to the Commonhold and Leasehold Reform Act 2002 (administration charges) is amended as follows.</p></content></subsection><subsection eId="section-18-2"><num>(2)</num><content><p><mod>For the heading of Part 1 substitute <quotedText>“Administration charges”</quotedText>.</mod></p></content></subsection><subsection eId="section-18-3"><num>(3)</num><content><p><mod>After paragraph 2 insert—<quotedStructure startQuote="&#x201C;" endQuote="&#x201D;" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7" eId="d25e1769"><heading>No administration charge payable for certain rents</heading><paragraph eId="d25e1772" class="schProv1"><num>2A</num><subparagraph><num>(1)</num><content><p>No administration charge is payable for, in connection with or in respect of, the payment of a relevant rent.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>A “relevant rent” is a rent (or any part of a rent) which, by virtue of the Leasehold Reform (Ground Rent) Act 2022, is permitted only to be a peppercorn rent.</p></content></subparagraph><subparagraph><num>(3)</num><content><p>“<term refersTo="#term-peppercorn-rent">Peppercorn rent</term>” has the same meaning as in that Act (see section 4<ref href="#section-4-3">(3)</ref> of that Act).</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-18-4"><num>(4)</num><content><p><mod>Before paragraph 3 insert the heading <quotedText>“Application for order varying lease”</quotedText>.</mod></p></content></subsection><subsection eId="section-18-5"><num>(5)</num><intro><p>In paragraph 3(1)—</p></intro><level class="para1" eId="section-18-5-a"><num>(a)</num><content><p>omit the “or” at the end of paragraph (a);</p></content></level><level class="para1" eId="section-18-5-b"><num>(b)</num><content><p><mod>at the end of paragraph (b) insert <quotedText>“, or</quotedText><quotedStructure startQuote="&#x201C;" endQuote="&#x201D;" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>an administration charge specified in the lease is not payable because of paragraph <ref href="#d25e1772">2A</ref>.</p></content></level></quotedStructure></mod></p></content></level></subsection><subsection eId="section-18-6"><num>(6)</num><intro><p>In section 24 of the Landlord and Tenant Act 1987 (appointment of manager by tribunal)—</p></intro><level class="para1" eId="section-18-6-a"><num>(a)</num><content><p><mod>in subsection (2)(aba) after “charges” insert <quotedText>“or prohibited administration charges”</quotedText>;</mod></p></content></level><level class="para1" eId="section-18-6-b"><num>(b)</num><content><p><mod>at the end of subsection (2B) insert <quotedText>“, and “<term refersTo="#term-prohibited-administration-charge" eId="term-prohibited-administration-charge">prohibited administration charge</term>” means an administration charge which is not payable because of paragraph <ref href="#d25e1772">2A</ref> of that Schedule.”</quotedText></mod></p></content></level></subsection></section></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="crossheading-general"><heading>General</heading><section eId="section-19"><num>19</num><heading>Amendments to Housing Act 1985</heading><subsection eId="section-19-1"><num>(1)</num><content><p>Part 5 of the Housing Act 1985 (right to buy) is amended as follows.</p></content></subsection><subsection eId="section-19-2"><num>(2)</num><content><p><mod>In section 127(3)(c) (assumptions to be made on valuation of dwelling) after “£10 per annum” insert <quotedText>“or, if the lease would be a regulated lease within the meaning of the Leasehold Reform (Ground Rent) Act 2022, the rent permitted by that Act”</quotedText>.</mod></p></content></subsection><subsection eId="section-19-3"><num>(3)</num><content><p><mod>In paragraph 11 of Schedule 6 (terms of lease granted pursuant to right to buy) after “£10 per annum” insert <quotedText>“or, if the lease is a regulated lease within the meaning of the Leasehold Reform (Ground Rent) Act 2022, the rent permitted by that Act”</quotedText>.</mod></p></content></subsection></section><section eId="section-20"><num>20</num><heading>Consequential amendments</heading><subsection eId="section-20-1"><num>(1)</num><content><p>The Secretary of State may by regulations make provision that is consequential on this Act.</p></content></subsection><subsection eId="section-20-2"><num>(2)</num><content><p>The provision that may be made by regulations under <ref href="#section-20-1">subsection (1)</ref> includes provision amending an Act (including an Act passed in the same session as this Act).</p></content></subsection></section><section eId="section-21"><num>21</num><heading>Regulations</heading><subsection eId="section-21-1"><num>(1)</num><intro><p>A power to make regulations under any provision of this Act includes power to make—</p></intro><level class="para1" eId="section-21-1-a"><num>(a)</num><content><p>consequential, supplementary, incidental, transitional or saving provision;</p></content></level><level class="para1" eId="section-21-1-b"><num>(b)</num><content><p>different provision for different purposes.</p></content></level></subsection><subsection eId="section-21-2"><num>(2)</num><content><p>Regulations under this Act are to be made by statutory instrument.</p></content></subsection><subsection eId="section-21-3"><num>(3)</num><intro><p>A statutory instrument containing regulations under this Act is subject to annulment in pursuance of a resolution of—</p></intro><level class="para1" eId="section-21-3-a"><num>(a)</num><content><p>either House of Parliament, if the regulations are made by the Secretary of State, or</p></content></level><level class="para1" eId="section-21-3-b"><num>(b)</num><content><p>Senedd Cymru, if the regulations are made by the Welsh Ministers,</p></content></level><wrapUp><p>subject to <ref href="#section-21-4">subsection (4)</ref>.</p></wrapUp></subsection><subsection eId="section-21-4"><num>(4)</num><content><p>A statutory instrument containing (whether alone or with other provision) regulations under section 20 which amend an Act may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.</p></content></subsection><subsection eId="section-21-5"><num>(5)</num><content><p>This section does not apply to regulations under section 25.</p></content></subsection></section><section eId="section-22"><num>22</num><heading>Interpretation</heading><subsection eId="section-22-1"><num>(1)</num><intro><p>In this Act a “<term refersTo="#term-long-lease" eId="term-long-lease">long lease</term>” means—</p></intro><level class="para1" eId="section-22-1-a"><num>(a)</num><content><p>a lease granted for a term certain exceeding 21 years, whether or not it is (or may become) terminable before the end of that term by notice given by or to the tenant or by re-entry or forfeiture or otherwise;</p></content></level><level class="para1" eId="section-22-1-b"><num>(b)</num><content><p>a lease 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;</p></content></level><level class="para1" eId="section-22-1-c"><num>(c)</num><content><p>a lease taking effect under section 149(6) of the Law of Property Act 1925 (leases terminable after a death, marriage or civil partnership).</p></content></level></subsection><subsection eId="section-22-2"><num>(2)</num><intro><p>In this Act—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-dwelling" eId="term-dwelling">dwelling</term>” means a building or part of a building occupied or intended to be occupied as a separate dwelling, together with any yard, garden, outhouses and appurtenances belonging to it or usually enjoyed with it;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-lease" eId="term-lease">lease</term>”—</p></intro><level class="para1"><num>(a)</num><content><p>means a lease at law or in equity (and references to the grant of a lease are to be construed accordingly);</p></content></level><level class="para1"><num>(b)</num><content><p>includes a sub-lease;</p></content></level><level class="para1"><num>(c)</num><content><p>does not include a mortgage term;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-premium" eId="term-premium">premium</term>” means any pecuniary consideration for the grant of a lease, other than rent;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-relevant-authority" eId="term-relevant-authority">relevant authority</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a lease of premises in England, the Secretary of State;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to a lease of premises in Wales, the Welsh Ministers;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-rent" eId="term-rent">rent</term>” includes anything in the nature of rent, whatever it is called.</p></content></hcontainer></subsection><subsection eId="section-22-3"><num>(3)</num><content><p>A sum expressed to be payable in respect of rates, council tax, services, repairs, maintenance, insurance or other ancillary matters is not rent for the purposes of this Act merely because it is reserved as rent in the lease.</p></content></subsection><subsection eId="section-22-4"><num>(4)</num><intro><p>In this Act—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-enforcement-authority" eId="term-enforcement-authority">enforcement authority</term>” has the meaning given by section 8<ref href="#section-8-5">(5)</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-grant" eId="term-grant">grant</term>”, in relation to a lease, is to be read in accordance with section 1<ref href="#section-1-4">(4)</ref> and <ref href="#section-22-2">subsection (2)</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-peppercorn-rent" eId="term-peppercorn-rent">peppercorn rent</term>” has the meaning given by section 4<ref href="#section-4-3">(3)</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-permitted-rent" eId="term-permitted-rent">permitted rent</term>” has the meaning given by sections 4 to 6;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-prohibited-rent" eId="term-prohibited-rent">prohibited rent</term>” has the meaning given by section 3<ref href="#section-3-4">(4)</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-regulated-lease" eId="term-regulated-lease">regulated lease</term>” has the meaning given by section 1<ref href="#section-1-1">(1)</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-commencement-day" eId="term-relevant-commencement-day">relevant commencement day</term>” has the meaning given by section 1<ref href="#section-1-2">(2)</ref>.</p></content></hcontainer></subsection></section><section eId="section-23"><num>23</num><heading>Crown application</heading><subsection eId="section-23-1"><num>(1)</num><content><p>This Act applies to Crown land.</p></content></subsection><subsection eId="section-23-2"><num>(2)</num><intro><p>Land is Crown land if there is or has at any time been an interest or estate in the land—</p></intro><level class="para1" eId="section-23-2-a"><num>(a)</num><content><p>comprised in the Crown Estate,</p></content></level><level class="para1" eId="section-23-2-b"><num>(b)</num><content><p>belonging to Her Majesty in right of the Duchy of Lancaster,</p></content></level><level class="para1" eId="section-23-2-c"><num>(c)</num><content><p>belonging to the Duchy of Cornwall, or</p></content></level><level class="para1" eId="section-23-2-d"><num>(d)</num><content><p>belonging to a government department or held on behalf of Her Majesty for the purposes of a government department.</p></content></level></subsection></section><section eId="section-24"><num>24</num><heading>Extent</heading><content><p>This Act extends to England and Wales.</p></content></section><section eId="section-25"><num>25</num><heading>Commencement</heading><subsection eId="section-25-1"><num>(1)</num><intro><p>The following provisions come into force on the day this Act is passed—</p></intro><level class="para1" eId="section-25-1-a"><num>(a)</num><content><p>sections 2 and 9, but only for the purposes of making regulations;</p></content></level><level class="para1" eId="section-25-1-b"><num>(b)</num><content><p>sections 20 to 26.</p></content></level></subsection><subsection eId="section-25-2"><num>(2)</num><content><p>Except as provided by <ref href="#section-25-1">subsection (1)</ref> this Act comes into force on such day as the Secretary of State may by regulations appoint.</p></content></subsection><subsection eId="section-25-3"><num>(3)</num><content><p>Different days may be appointed for different purposes (including for different kinds of leases).</p></content></subsection><subsection eId="section-25-4"><num>(4)</num><content><p>The day appointed for the coming into force of this Act in relation to leases of retirement homes must be no earlier than 1 April 2023.</p></content></subsection><subsection eId="section-25-5"><num>(5)</num><intro><p>A lease is a lease of a retirement home if—</p></intro><level class="para1" eId="section-25-5-a"><num>(a)</num><content><p>it is a term of the lease that the premises demised by the lease may be occupied only by persons who have attained a minimum age, and</p></content></level><level class="para1" eId="section-25-5-b"><num>(b)</num><content><p>that minimum age is not less than 55.</p></content></level></subsection><subsection eId="section-25-6"><num>(6)</num><content><p>The Secretary of State may by regulations make transitional or saving provision in connection with the coming into force of any provision of this Act.</p></content></subsection><subsection eId="section-25-7"><num>(7)</num><content><p>The power to make regulations under <ref href="#section-25-6">subsection (6)</ref> includes power to make different provision for different purposes (including for different kinds of leases).</p></content></subsection><subsection eId="section-25-8"><num>(8)</num><content><p>Regulations under this section are to be made by statutory instrument.</p></content></subsection></section><section eId="section-26"><num>26</num><heading>Short title</heading><content><p>This Act may be cited as the Leasehold Reform (Ground Rent) Act 2022.</p></content></section></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="schedules"><hcontainer name="schedule" eId="schedule"><num>Schedule<authorialNote class="referenceNote"><p> Section 12 </p></authorialNote></num><heading>Enforcement</heading><hcontainer name="crossheading" class="schGroup7"><heading>Introduction</heading><paragraph eId="schedule-paragraph-1" class="schProv1"><num>1</num><intro><p>This Schedule applies in relation to—</p></intro><level class="para1" eId="schedule-paragraph-1-a"><num>(a)</num><content><p>the imposition by an enforcement authority of a financial penalty under section 9, and</p></content></level><level class="para1" eId="schedule-paragraph-1-b"><num>(b)</num><content><p>the making of an order by an enforcement authority under section 10.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Notice of intent</heading><paragraph eId="schedule-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-paragraph-2-1"><num>(1)</num><content><p>Before imposing a financial penalty on a person, or making an order against a person, the enforcement authority must serve on the person notice of its intention to do so (a “notice of intent”).</p></content></subparagraph><subparagraph eId="schedule-paragraph-2-2"><num>(2)</num><content><p>A single notice of intent may be served on a person in respect of both a penalty and an order.</p></content></subparagraph><subparagraph eId="schedule-paragraph-2-3"><num>(3)</num><intro><p>The notice of intent must set out—</p></intro><level class="para1" eId="schedule-paragraph-2-3-a"><num>(a)</num><content><p>the date on which the notice is served,</p></content></level><level class="para1" eId="schedule-paragraph-2-3-b"><num>(b)</num><content><p>the amount of the proposed financial penalty or the terms of the proposed order,</p></content></level><level class="para1" eId="schedule-paragraph-2-3-c"><num>(c)</num><content><p>the reasons for imposing the penalty or making the order, and</p></content></level><level class="para1" eId="schedule-paragraph-2-3-d"><num>(d)</num><content><p>information about the right to make representations under <ref href="#schedule-paragraph-4">paragraph 4</ref>.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Time limits for serving notice of intent</heading><paragraph eId="schedule-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-paragraph-3-1"><num>(1)</num><intro><p>A notice of intent may not be served in respect of a breach of section 3<ref href="#section-3-1">(1)</ref> after the earlier of the following—</p></intro><level class="para1" eId="schedule-paragraph-3-1-a"><num>(a)</num><content><p>the end of the period of 6 years beginning with the day the breach occurs, and</p></content></level><level class="para1" eId="schedule-paragraph-3-1-b"><num>(b)</num><content><p>the end of the period of 6 months beginning with the day on which evidence comes to the knowledge of the enforcement authority which the authority considers sufficient to justify serving the notice.</p></content></level></subparagraph><subparagraph eId="schedule-paragraph-3-2"><num>(2)</num><intro><p>For the purposes of sub-paragraph <ref href="#schedule-paragraph-3-1">(1)</ref><ref href="#schedule-paragraph-3-1-a">(a)</ref>, a breach of section 3<ref href="#section-3-1">(1)</ref> occurs—</p></intro><level class="para1" eId="schedule-paragraph-3-2-a"><num>(a)</num><content><p>where the breach arises as a result of a request for a payment of a prohibited rent as mentioned in section 3<ref href="#section-3-2">(2)</ref><ref href="#section-3-2-a">(a)</ref> (whether or not a payment is made), on the day of the request;</p></content></level><level class="para1" eId="schedule-paragraph-3-2-b"><num>(b)</num><content><p>where the breach arises as a result of a failure to refund a payment of a prohibited rent as mentioned in section 3<ref href="#section-3-2">(2)</ref><ref href="#section-3-2-b">(b)</ref> in a case where no request for the payment was made, at the end of the period of 28 days beginning with the day after receipt of the payment.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Right to make written representations</heading><paragraph eId="schedule-paragraph-4" class="schProv1"><num>4</num><content><p>A person who receives a notice of intent may, within the period of 28 days beginning with the day on which the notice of intent was served, make written representations about the proposal.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Final notice</heading><paragraph eId="schedule-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-paragraph-5-1"><num>(1)</num><intro><p>After the end of the period mentioned in <ref href="#schedule-paragraph-4">paragraph 4</ref>, the enforcement authority must—</p></intro><level class="para1" eId="schedule-paragraph-5-1-a"><num>(a)</num><content><p>decide whether to impose a financial penalty or make an order, and</p></content></level><level class="para1" eId="schedule-paragraph-5-1-b"><num>(b)</num><content><p>if it decides to do so, decide the amount of the penalty or the terms of the order.</p></content></level></subparagraph><subparagraph eId="schedule-paragraph-5-2"><num>(2)</num><content><p>If the enforcement authority decides to impose a penalty or make an order, it must serve a further notice on the person (a “final notice”) imposing the penalty or making the order.</p></content></subparagraph><subparagraph eId="schedule-paragraph-5-3"><num>(3)</num><content><p>A single final notice may be served on a person in respect of both a penalty and an order.</p></content></subparagraph><subparagraph eId="schedule-paragraph-5-4"><num>(4)</num><content><p>A final notice imposing a penalty or making an order must require the penalty to be paid, or the order to be complied with, before the end of the period of 28 days beginning with the day after that on which the final notice is served.</p></content></subparagraph><subparagraph eId="schedule-paragraph-5-5"><num>(5)</num><intro><p>The final notice must set out—</p></intro><level class="para1" eId="schedule-paragraph-5-5-a"><num>(a)</num><content><p>the date on which the final notice is served,</p></content></level><level class="para1" eId="schedule-paragraph-5-5-b"><num>(b)</num><content><p>the amount of the penalty or the terms of the order,</p></content></level><level class="para1" eId="schedule-paragraph-5-5-c"><num>(c)</num><content><p>the reasons for imposing the penalty or making the order,</p></content></level><level class="para1" eId="schedule-paragraph-5-5-d"><num>(d)</num><content><p>information about how to pay the penalty or comply with the order,</p></content></level><level class="para1" eId="schedule-paragraph-5-5-e"><num>(e)</num><content><p>information about rights of appeal, and</p></content></level><level class="para1" eId="schedule-paragraph-5-5-f"><num>(f)</num><content><p>the consequences of failure to comply with the notice.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Withdrawal or amendment of notice</heading><paragraph eId="schedule-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-paragraph-6-1"><num>(1)</num><intro><p>The enforcement authority may at any time—</p></intro><level class="para1" eId="schedule-paragraph-6-1-a"><num>(a)</num><content><p>withdraw a notice of intent or final notice,</p></content></level><level class="para1" eId="schedule-paragraph-6-1-b"><num>(b)</num><content><p>reduce an amount specified in a notice of intent or final notice, or</p></content></level><level class="para1" eId="schedule-paragraph-6-1-c"><num>(c)</num><intro><p>amend a notice of intent or final notice to remove—</p></intro><level class="para2" eId="schedule-paragraph-6-1-c-i"><num>(i)</num><content><p>the proposal to impose, or the imposition of, a penalty;</p></content></level><level class="para2" eId="schedule-paragraph-6-1-c-ii"><num>(ii)</num><content><p>the proposal to make, or the making of, an order.</p></content></level></level></subparagraph><subparagraph eId="schedule-paragraph-6-2"><num>(2)</num><content><p>The power in <ref href="#schedule-paragraph-6-1">sub-paragraph (1)</ref> is to be exercised by giving notice in writing to the person on whom the notice was served.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Appeals</heading><paragraph eId="schedule-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-paragraph-7-1"><num>(1)</num><intro><p>A person on whom a final notice is served may appeal to the appropriate tribunal against—</p></intro><level class="para1" eId="schedule-paragraph-7-1-a"><num>(a)</num><content><p>the decision to impose the penalty or make the order,</p></content></level><level class="para1" eId="schedule-paragraph-7-1-b"><num>(b)</num><content><p>the amount of the penalty, or</p></content></level><level class="para1" eId="schedule-paragraph-7-1-c"><num>(c)</num><content><p>the terms of the order.</p></content></level></subparagraph><subparagraph eId="schedule-paragraph-7-2"><num>(2)</num><content><p>An appeal under this paragraph must be brought before the end of the period of 28 days beginning with the day after that on which the final notice is served.</p></content></subparagraph><subparagraph eId="schedule-paragraph-7-3"><num>(3)</num><content><p>If an appeal is brought under this paragraph, the final notice is suspended so far as it relates to the matter which is the subject of the appeal until the appeal is finally determined, withdrawn or abandoned.</p></content></subparagraph><subparagraph eId="schedule-paragraph-7-4"><num>(4)</num><intro><p>An appeal under this paragraph—</p></intro><level class="para1" eId="schedule-paragraph-7-4-a"><num>(a)</num><content><p>is to be a re-hearing of the authority’s decision, but</p></content></level><level class="para1" eId="schedule-paragraph-7-4-b"><num>(b)</num><content><p>may be determined having regard to matters of which the authority was unaware.</p></content></level></subparagraph><subparagraph eId="schedule-paragraph-7-5"><num>(5)</num><content><p>On an appeal under this paragraph the appropriate tribunal may quash, confirm or vary the notice.</p></content></subparagraph><subparagraph eId="schedule-paragraph-7-6"><num>(6)</num><content><p>The final notice may not be varied so as to make it impose a financial penalty of less than the minimum financial penalty or more than the maximum financial penalty that could have been imposed in the final notice by the enforcement authority.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Recovery of financial penalty</heading><paragraph eId="schedule-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-paragraph-8-1"><num>(1)</num><content><p>This paragraph applies if a person who is liable to pay a financial penalty under section 9 does not pay the whole or any part of the penalty in accordance with the final notice imposing it.</p></content></subparagraph><subparagraph eId="schedule-paragraph-8-2"><num>(2)</num><content><p>The enforcement authority that imposed the financial penalty may recover the penalty or part on the order of the county court as if it were payable under an order of that court.</p></content></subparagraph><subparagraph eId="schedule-paragraph-8-3"><num>(3)</num><intro><p>In proceedings before the county court for the recovery of a financial penalty or part of a financial penalty, a certificate which is—</p></intro><level class="para1" eId="schedule-paragraph-8-3-a"><num>(a)</num><content><p>signed by the chief finance officer of the authority that imposed the penalty, and</p></content></level><level class="para1" eId="schedule-paragraph-8-3-b"><num>(b)</num><content><p>states that the amount due has not been received by a date specified in the certificate,</p></content></level><wrapUp><p>is evidence of that fact.</p></wrapUp></subparagraph><subparagraph eId="schedule-paragraph-8-4"><num>(4)</num><content><p>A certificate to that effect and purporting to be so signed is to be treated as being so signed unless the contrary is proved.</p></content></subparagraph><subparagraph eId="schedule-paragraph-8-5"><num>(5)</num><content><p>In this paragraph, “<term refersTo="#term-chief-finance-officer" eId="term-chief-finance-officer">chief finance officer</term>” has the same meaning as in section 5 of the Local Government and Housing Act 1989.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Recovery of prohibited rent and interest</heading><paragraph eId="schedule-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-paragraph-9-1"><num>(1)</num><content><p>This paragraph applies if a person who is ordered to pay an amount under section 10 does not pay the whole or any part of that amount, or any interest payable on that amount, in accordance with the final notice making the order.</p></content></subparagraph><subparagraph eId="schedule-paragraph-9-2"><num>(2)</num><content><p>The person to whom the amount or part or interest is payable may recover it on the order of the county court as if it were payable under an order of that court.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Assistance to recover prohibited rent</heading><paragraph eId="schedule-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-paragraph-10-1"><num>(1)</num><content><p>An enforcement authority may help a person to make an application for an order under <ref href="#schedule-paragraph-9">paragraph 9</ref><ref href="#schedule-paragraph-9-2">(2)</ref>.</p></content></subparagraph><subparagraph eId="schedule-paragraph-10-2"><num>(2)</num><content><p>An enforcement authority may, for example, help the person by conducting proceedings or giving advice.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Proceeds of financial penalties</heading><paragraph eId="schedule-paragraph-11" class="schProv1"><num>11</num><content><p>Where an enforcement authority imposes a financial penalty under this Act, it may apply the proceeds towards meeting the costs and expenses (whether administrative or legal) incurred in, or associated with, carrying out its enforcement functions (under this Act or otherwise) in relation to residential leasehold property.</p></content></paragraph><paragraph eId="schedule-paragraph-12" class="schProv1"><num>12</num><intro><p>Any proceeds of a financial penalty imposed under this Act which are not applied in accordance with paragraph <ref href="#schedule-paragraph-11">11</ref> must be paid—</p></intro><level class="para1" eId="schedule-paragraph-12-a"><num>(a)</num><content><p>where the penalty was imposed in relation to a lease of premises in England, to the Secretary of State, and</p></content></level><level class="para1" eId="schedule-paragraph-12-b"><num>(b)</num><content><p>where the penalty was imposed in relation to a lease of premises in Wales, to the Welsh Ministers.</p></content></level></paragraph></hcontainer></hcontainer></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="schedules" eId="schedules"><hcontainer name="schedule" eId="schedule"><num>Schedule<authorialNote class="referenceNote"><p> Section 12 </p></authorialNote></num><heading>Enforcement</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e2337"><heading>Introduction</heading><paragraph eId="schedule-paragraph-1" class="schProv1"><num>1</num><intro><p>This Schedule applies in relation to—</p></intro><level class="para1" eId="schedule-paragraph-1-a"><num>(a)</num><content><p>the imposition by an enforcement authority of a financial penalty under section 9, and</p></content></level><level class="para1" eId="schedule-paragraph-1-b"><num>(b)</num><content><p>the making of an order by an enforcement authority under section 10.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e2361"><heading>Notice of intent</heading><paragraph eId="schedule-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-paragraph-2-1"><num>(1)</num><content><p>Before imposing a financial penalty on a person, or making an order against a person, the enforcement authority must serve on the person notice of its intention to do so (a “notice of intent”).</p></content></subparagraph><subparagraph eId="schedule-paragraph-2-2"><num>(2)</num><content><p>A single notice of intent may be served on a person in respect of both a penalty and an order.</p></content></subparagraph><subparagraph eId="schedule-paragraph-2-3"><num>(3)</num><intro><p>The notice of intent must set out—</p></intro><level class="para1" eId="schedule-paragraph-2-3-a"><num>(a)</num><content><p>the date on which the notice is served,</p></content></level><level class="para1" eId="schedule-paragraph-2-3-b"><num>(b)</num><content><p>the amount of the proposed financial penalty or the terms of the proposed order,</p></content></level><level class="para1" eId="schedule-paragraph-2-3-c"><num>(c)</num><content><p>the reasons for imposing the penalty or making the order, and</p></content></level><level class="para1" eId="schedule-paragraph-2-3-d"><num>(d)</num><content><p>information about the right to make representations under <ref href="#schedule-paragraph-4">paragraph 4</ref>.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e2416"><heading>Time limits for serving notice of intent</heading><paragraph eId="schedule-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-paragraph-3-1"><num>(1)</num><intro><p>A notice of intent may not be served in respect of a breach of section 3<ref href="#section-3-1">(1)</ref> after the earlier of the following—</p></intro><level class="para1" eId="schedule-paragraph-3-1-a"><num>(a)</num><content><p>the end of the period of 6 years beginning with the day the breach occurs, and</p></content></level><level class="para1" eId="schedule-paragraph-3-1-b"><num>(b)</num><content><p>the end of the period of 6 months beginning with the day on which evidence comes to the knowledge of the enforcement authority which the authority considers sufficient to justify serving the notice.</p></content></level></subparagraph><subparagraph eId="schedule-paragraph-3-2"><num>(2)</num><intro><p>For the purposes of sub-paragraph <ref href="#schedule-paragraph-3-1">(1)</ref><ref href="#schedule-paragraph-3-1-a">(a)</ref>, a breach of section 3<ref href="#section-3-1">(1)</ref> occurs—</p></intro><level class="para1" eId="schedule-paragraph-3-2-a"><num>(a)</num><content><p>where the breach arises as a result of a request for a payment of a prohibited rent as mentioned in section 3<ref href="#section-3-2">(2)</ref><ref href="#section-3-2-a">(a)</ref> (whether or not a payment is made), on the day of the request;</p></content></level><level class="para1" eId="schedule-paragraph-3-2-b"><num>(b)</num><content><p>where the breach arises as a result of a failure to refund a payment of a prohibited rent as mentioned in section 3<ref href="#section-3-2">(2)</ref><ref href="#section-3-2-b">(b)</ref> in a case where no request for the payment was made, at the end of the period of 28 days beginning with the day after receipt of the payment.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e2483"><heading>Right to make written representations</heading><paragraph eId="schedule-paragraph-4" class="schProv1"><num>4</num><content><p>A person who receives a notice of intent may, within the period of 28 days beginning with the day on which the notice of intent was served, make written representations about the proposal.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e2495"><heading>Final notice</heading><paragraph eId="schedule-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-paragraph-5-1"><num>(1)</num><intro><p>After the end of the period mentioned in <ref href="#schedule-paragraph-4">paragraph 4</ref>, the enforcement authority must—</p></intro><level class="para1" eId="schedule-paragraph-5-1-a"><num>(a)</num><content><p>decide whether to impose a financial penalty or make an order, and</p></content></level><level class="para1" eId="schedule-paragraph-5-1-b"><num>(b)</num><content><p>if it decides to do so, decide the amount of the penalty or the terms of the order.</p></content></level></subparagraph><subparagraph eId="schedule-paragraph-5-2"><num>(2)</num><content><p>If the enforcement authority decides to impose a penalty or make an order, it must serve a further notice on the person (a “final notice”) imposing the penalty or making the order.</p></content></subparagraph><subparagraph eId="schedule-paragraph-5-3"><num>(3)</num><content><p>A single final notice may be served on a person in respect of both a penalty and an order.</p></content></subparagraph><subparagraph eId="schedule-paragraph-5-4"><num>(4)</num><content><p>A final notice imposing a penalty or making an order must require the penalty to be paid, or the order to be complied with, before the end of the period of 28 days beginning with the day after that on which the final notice is served.</p></content></subparagraph><subparagraph eId="schedule-paragraph-5-5"><num>(5)</num><intro><p>The final notice must set out—</p></intro><level class="para1" eId="schedule-paragraph-5-5-a"><num>(a)</num><content><p>the date on which the final notice is served,</p></content></level><level class="para1" eId="schedule-paragraph-5-5-b"><num>(b)</num><content><p>the amount of the penalty or the terms of the order,</p></content></level><level class="para1" eId="schedule-paragraph-5-5-c"><num>(c)</num><content><p>the reasons for imposing the penalty or making the order,</p></content></level><level class="para1" eId="schedule-paragraph-5-5-d"><num>(d)</num><content><p>information about how to pay the penalty or comply with the order,</p></content></level><level class="para1" eId="schedule-paragraph-5-5-e"><num>(e)</num><content><p>information about rights of appeal, and</p></content></level><level class="para1" eId="schedule-paragraph-5-5-f"><num>(f)</num><content><p>the consequences of failure to comply with the notice.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e2586"><heading>Withdrawal or amendment of notice</heading><paragraph eId="schedule-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-paragraph-6-1"><num>(1)</num><intro><p>The enforcement authority may at any time—</p></intro><level class="para1" eId="schedule-paragraph-6-1-a"><num>(a)</num><content><p>withdraw a notice of intent or final notice,</p></content></level><level class="para1" eId="schedule-paragraph-6-1-b"><num>(b)</num><content><p>reduce an amount specified in a notice of intent or final notice, or</p></content></level><level class="para1" eId="schedule-paragraph-6-1-c"><num>(c)</num><intro><p>amend a notice of intent or final notice to remove—</p></intro><level class="para2" eId="schedule-paragraph-6-1-c-i"><num>(i)</num><content><p>the proposal to impose, or the imposition of, a penalty;</p></content></level><level class="para2" eId="schedule-paragraph-6-1-c-ii"><num>(ii)</num><content><p>the proposal to make, or the making of, an order.</p></content></level></level></subparagraph><subparagraph eId="schedule-paragraph-6-2"><num>(2)</num><content><p>The power in <ref href="#schedule-paragraph-6-1">sub-paragraph (1)</ref> is to be exercised by giving notice in writing to the person on whom the notice was served.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e2641"><heading>Appeals</heading><paragraph eId="schedule-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-paragraph-7-1"><num>(1)</num><intro><p>A person on whom a final notice is served may appeal to the appropriate tribunal against—</p></intro><level class="para1" eId="schedule-paragraph-7-1-a"><num>(a)</num><content><p>the decision to impose the penalty or make the order,</p></content></level><level class="para1" eId="schedule-paragraph-7-1-b"><num>(b)</num><content><p>the amount of the penalty, or</p></content></level><level class="para1" eId="schedule-paragraph-7-1-c"><num>(c)</num><content><p>the terms of the order.</p></content></level></subparagraph><subparagraph eId="schedule-paragraph-7-2"><num>(2)</num><content><p>An appeal under this paragraph must be brought before the end of the period of 28 days beginning with the day after that on which the final notice is served.</p></content></subparagraph><subparagraph eId="schedule-paragraph-7-3"><num>(3)</num><content><p>If an appeal is brought under this paragraph, the final notice is suspended so far as it relates to the matter which is the subject of the appeal until the appeal is finally determined, withdrawn or abandoned.</p></content></subparagraph><subparagraph eId="schedule-paragraph-7-4"><num>(4)</num><intro><p>An appeal under this paragraph—</p></intro><level class="para1" eId="schedule-paragraph-7-4-a"><num>(a)</num><content><p>is to be a re-hearing of the authority’s decision, but</p></content></level><level class="para1" eId="schedule-paragraph-7-4-b"><num>(b)</num><content><p>may be determined having regard to matters of which the authority was unaware.</p></content></level></subparagraph><subparagraph eId="schedule-paragraph-7-5"><num>(5)</num><content><p>On an appeal under this paragraph the appropriate tribunal may quash, confirm or vary the notice.</p></content></subparagraph><subparagraph eId="schedule-paragraph-7-6"><num>(6)</num><content><p>The final notice may not be varied so as to make it impose a financial penalty of less than the minimum financial penalty or more than the maximum financial penalty that could have been imposed in the final notice by the enforcement authority.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e2717"><heading>Recovery of financial penalty</heading><paragraph eId="schedule-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-paragraph-8-1"><num>(1)</num><content><p>This paragraph applies if a person who is liable to pay a financial penalty under section 9 does not pay the whole or any part of the penalty in accordance with the final notice imposing it.</p></content></subparagraph><subparagraph eId="schedule-paragraph-8-2"><num>(2)</num><content><p>The enforcement authority that imposed the financial penalty may recover the penalty or part on the order of the county court as if it were payable under an order of that court.</p></content></subparagraph><subparagraph eId="schedule-paragraph-8-3"><num>(3)</num><intro><p>In proceedings before the county court for the recovery of a financial penalty or part of a financial penalty, a certificate which is—</p></intro><level class="para1" eId="schedule-paragraph-8-3-a"><num>(a)</num><content><p>signed by the chief finance officer of the authority that imposed the penalty, and</p></content></level><level class="para1" eId="schedule-paragraph-8-3-b"><num>(b)</num><content><p>states that the amount due has not been received by a date specified in the certificate,</p></content></level><wrapUp><p>is evidence of that fact.</p></wrapUp></subparagraph><subparagraph eId="schedule-paragraph-8-4"><num>(4)</num><content><p>A certificate to that effect and purporting to be so signed is to be treated as being so signed unless the contrary is proved.</p></content></subparagraph><subparagraph eId="schedule-paragraph-8-5"><num>(5)</num><content><p>In this paragraph, “<term refersTo="#term-chief-finance-officer" eId="term-chief-finance-officer">chief finance officer</term>” has the same meaning as in section 5 of the Local Government and Housing Act 1989.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e2774"><heading>Recovery of prohibited rent and interest</heading><paragraph eId="schedule-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-paragraph-9-1"><num>(1)</num><content><p>This paragraph applies if a person who is ordered to pay an amount under section 10 does not pay the whole or any part of that amount, or any interest payable on that amount, in accordance with the final notice making the order.</p></content></subparagraph><subparagraph eId="schedule-paragraph-9-2"><num>(2)</num><content><p>The person to whom the amount or part or interest is payable may recover it on the order of the county court as if it were payable under an order of that court.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e2796"><heading>Assistance to recover prohibited rent</heading><paragraph eId="schedule-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-paragraph-10-1"><num>(1)</num><content><p>An enforcement authority may help a person to make an application for an order under <ref href="#schedule-paragraph-9">paragraph 9</ref><ref href="#schedule-paragraph-9-2">(2)</ref>.</p></content></subparagraph><subparagraph eId="schedule-paragraph-10-2"><num>(2)</num><content><p>An enforcement authority may, for example, help the person by conducting proceedings or giving advice.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e2823"><heading>Proceeds of financial penalties</heading><paragraph eId="schedule-paragraph-11" class="schProv1"><num>11</num><content><p>Where an enforcement authority imposes a financial penalty under this Act, it may apply the proceeds towards meeting the costs and expenses (whether administrative or legal) incurred in, or associated with, carrying out its enforcement functions (under this Act or otherwise) in relation to residential leasehold property.</p></content></paragraph></hcontainer><paragraph eId="schedule-paragraph-12" class="schProv1"><num>12</num><intro><p>Any proceeds of a financial penalty imposed under this Act which are not applied in accordance with paragraph <ref href="#schedule-paragraph-11">11</ref> must be paid—</p></intro><level class="para1" eId="schedule-paragraph-12-a"><num>(a)</num><content><p>where the penalty was imposed in relation to a lease of premises in England, to the Secretary of State, and</p></content></level><level class="para1" eId="schedule-paragraph-12-b"><num>(b)</num><content><p>where the penalty was imposed in relation to a lease of premises in Wales, to the Welsh Ministers.</p></content></level></paragraph></hcontainer></hcontainer>