Part 10: Letting by Local Authorities of Vacant High-street premises Procedure for letting Section 204: Power to contract for tenancy Effect
Subsection (1) sets out the circumstances in which a local authority can enter into a contract (referred to in Part 10 as the ‘tenancy contract’) with the successful bidder from the auction. This includes a final notice still being in force, the period for any appeal by the landlord having expired (42 days), the rental auction having been carried out by the local authority and no tenancy, licence or agreement having been granted by the landlord with the consent of the local authority.
	Subsection (2) provides that the contract may be entered into with the successful bidder from the auction.
	Subsection (3) describes what is meant by ‘tenancy contract’. This is a contract between the landlord and tenant to grant a ‘short-term tenancy’ (this is a tenancy of at least one year and not exceeding five years, as defined in section 218(8)). The contract can be conditional.
	Subsections (4) and (5) give the local authority the power to enter into the contract as if it was entered into by the landlord.
	Subsection (6) provides for a copy of the completed contract to be sent to the landlord by the local authority.