Part 2: Rogue Landlords and Property Agents in England Chapter 2: Banning Orders Consequences of banning order, including consequences of breach Schedule 3: Management orders following banning order
This Schedule makes changes to provisions in Part 4 of the Housing Act 2004 which deal with the making of interim and final management orders by local authorities. Part 4 enables local authorities to make management orders to allow them to take over control of the running of a property in certain situations, such as where a property is unlicensed and a suitable licence holder cannot be found. The amendments made by this Schedule provide an additional circumstance in which a management order can be made, which is that a property is let in breach of a banning order. In this circumstance a local authority may decide to make a management order for example if there are tenants in a property who cannot be evicted or the local authority does not wish to see evicted.
	Where a management order is made due to a property being let in breach of a banning order, the local authority will receive any rent paid by the tenants instead of the landlord and can use this income to help cover its costs in managing the property. Whereas under the existing management order provisions in the Housing Act 2004 the landlord is entitled to receive any surplus from the local authority at intervals during and at the end of the management order, where a management order is made due to a breach of a banning order, the local authority keeps any surplus and regulations made by the Secretary of State may set out how local authorities are to deal with any surpluses received.