Part 10Letting by local authorities of vacant high-street premises

Procedure for letting

I1204Power to contract for tenancy

1

Subsection (2) applies if—

a

a final letting notice served by the authority is in force in relation to the premises,

b

the period of 42 days beginning with the day on which that notice took effect has elapsed,

c

a rental auction has been carried out in respect of qualifying high-street premises, and

d

the condition in section 203(1)(c) is still met.

2

The local authority that served the notice may enter into a tenancy contract with the successful bidder in the auction (as identified in accordance with regulations under section 203).

3

A “tenancy contract” is a contract under which—

a

the landlord of the premises agrees to grant, and

b

the successful bidder agrees to take,

a short-term tenancy of the premises (including a contract under which those things are agreed subject to conditions).

4

A contract entered into under this section has effect as if it was entered into by the landlord of the premises instead of the local authority.

5

A local authority is to act under this section in its own name, but with an indication that it is acting so as to bind the landlord rather than itself.

6

As soon as possible after entering into a contract under this section, the local authority must provide a signed copy of it to the landlord.