(1)Section 24 of the M1Landlord and Tenant Act 1987 (appointment of manager by the court) is amended as follows.
(2)In subsection (2) (circumstances in which order may be made), in paragraph (a) (breach of obligation by landlord), omit sub-paragraph (ii) (requirement that circumstances likely to continue).
(3)In that subsection, after paragraph (a), and before the word “or” following that paragraph, insert—
“(ab)where the court is satisfied—
(i)that unreasonable service charges have been made, or are proposed or likely to be made, and
(ii)that it is just and convenient to make the order in all the circumstances of the case;
(ac)where the court is satisfied—
(i)that the landlord has failed to comply with any relevant provision of a code of practice approved by the Secretary of State under section 87 of the M2Leasehold Reform, Housing and Urban Development Act 1993 (codes of management practice), and
(ii)that it is just and convenient to make the order in all the circumstances of the case;”.
(4)After that subsection insert—
“(2A)For the purposes of subsection (2)(ab) a service charge shall be taken to be unreasonable—
(a)if the amount is unreasonable having regard to the items for which it is payable,
(b)if the items for which it is payable are of an unnecessarily high standard, or
(c)if the items for which it is payable are of an insufficient standard with the result that additional service charges are or may be incurred.
In that provision and this subsection “service charge” means a service charge within the meaning of section 18(1) of the M3Landlord and Tenant Act 1985, other than one excluded from that section by section 27 of that Act (rent of dwelling registered and not entered as variable).”.
(5)The above amendments apply to applications for an order under section 24 of the M4Landlord and Tenant Act 1987 which are made after this section comes into force.
In relation to any such application the reference in the inserted subsection (2)(ab) to service charges which have been made includes services charges made before that date.
(6)After subsection (9) insert—
“(9A)The court shall not vary or discharge an order under subsection (9) on a landlord’s application unless it is satisfied—
(a)that the variation or discharge of the order will not result in a recurrence of the circumstances which led to the order being made, and
(b)that it is just and convenient in all the circumstances of the case to vary or discharge the order.”.