Prohibitions etc applying to landlords and letting agents

I11Prohibitions applying to landlords

1

A landlord must not require a relevant person to make a prohibited payment to the landlord in connection with a tenancy of housing in England.

2

A landlord must not require a relevant person to make a prohibited payment to a third party in connection with a tenancy of housing in England.

3

A landlord must not require a relevant person to enter into a contract with a third party in connection with a tenancy of housing in England if that contract is—

a

a contract for the provision of a service, or

b

a contract of insurance.

4

Subsection (3) does not apply if the contract is for—

a

the provision of a utility to the tenant, or

b

the provision of a communication service to the tenant.

5

A landlord must not require a relevant person to make a loan to any person in connection with a tenancy of housing in England.

6

For the purposes of this section, a landlord requires a relevant person to make a payment, enter into a contract or make a loan in connection with a tenancy of housing in England if and only if the landlord—

a

requires the person to do any of those things in consideration of the grant, renewal, continuance, variation, assignment, novation or termination of such a tenancy,

b

requires the person to do any of those things pursuant to a provision of a tenancy agreement relating to such a tenancy which requires or purports to require the person to do any of those things in the event of an act or default of a relevant person,

c

requires the person to do any of those things pursuant to a provision of a tenancy agreement relating to such a tenancy which requires or purports to require the person to do any of those things if the tenancy is varied, assigned, novated or terminated,

d

enters into a tenancy agreement relating to such a tenancy which requires or purports to require the person to do any of those things other than in the circumstances mentioned in paragraph (b) or (c),

e

requires the person to do any of those things—

i

as a result of an act or default of a relevant person relating to such a tenancy or housing let under it, and

ii

otherwise than pursuant to, or for the breach of, a provision of a tenancy agreement, or

f

requires the person to do any of those things in consideration of providing a reference in relation to that person in connection with the person's occupation of housing in England.

7

For the purposes of this section, a landlord does not require a relevant person to make a payment, enter into a contract or make a loan if the landlord gives the person the option of doing any of those things as an alternative to complying with another requirement imposed by the landlord or a letting agent.

8

Subsection (7) does not apply if—

a

the other requirement is prohibited by this section or section 2 (ignoring subsection (7) or section 2(6)), or

b

it would be unreasonable to expect a relevant person to comply with the other requirement.

9

In this Act “relevant person” means—

a

a tenant, or

b

subject to subsection (10), a person acting on behalf of, or who has guaranteed the payment of rent by, a tenant.

10

The reference in subsection (9)(b) to a person does not include—

a

a local housing authority within the meaning of the Housing Act 1985 (see section 1 of that Act),

b

the Greater London Authority, or

c

a person acting on behalf of an authority within paragraph (a) or the Greater London Authority.