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PART 2Prohibition of certain payments etc.

2Prohibitions applying to landlords

(1)It is an offence for a landlord to require a prohibited payment to be made to the landlord, or any other person—

(a)in consideration of the grant, renewal or continuance of a standard occupation contract, or

(b)pursuant to a term of a standard occupation contract which purports to require the payment to be made.

(2)It is an offence for a landlord to require a person to enter into a contract for services with the landlord, or any other person—

(a)in consideration of the grant, renewal or continuance of a standard occupation contract, or

(b)pursuant to a term of a standard occupation contract which purports to require entry into the contract for services.

(3)But subsection (2) does not apply if the contract for services concerned provides for services to be provided by a person upon whom the standard occupation contract confers, or would confer, the right to occupy a dwelling (whether or not the contract for services also provides for any other person to provide services).

(4)It is an offence for a landlord to require the grant of a loan to the landlord, or any other person—

(a)in consideration of the grant, renewal or continuance of a standard occupation contract, or

(b)pursuant to a term of a standard occupation contract which purports to require the loan to be granted.

(5)A person guilty of an offence under this section is liable on summary conviction to a fine.

(6)The court by which a person (“the offender”) is convicted of an offence under subsection (1) may order the offender to pay the amount of the payment concerned or (in a case where part of the payment has been repaid) the outstanding amount of the payment to the person by whom it was paid.