The Rent Repayment Orders (Supplementary Provisions) (Wales) Regulations 2008

Explanatory Note

(This note is not part of the Regulations)

These Regulations, which apply in relation to Wales, supplement the provisions of sections 73, 74, 96 and 97 of the Housing Act 2004 (“the Act”). Those sections deal with the consequences of operating unlicensed houses in multiple occupation (“HMOs”) or certain other unlicensed houses. In particular, they deal with the making of rent repayment orders (“RROs”) by a residential property tribunal on the application of a local housing authority.

RROs cannot be made unless the tribunal is satisfied as to a number of matters. The matter that is relevant for the purposes of these Regulations is that housing benefit has been paid by virtue of a scheme under section 123 of the Social Security Contributions and Benefits Act 1992 in respect of periodical payments payable in connection with the occupation of a part or parts of the HMO (section 73(6)(b) of the Act) or the whole or any part or parts of the house (section 96(6)(b) of the Act), during a period during which it appears to the tribunal that an offence under section 72(1) of the Act (for HMOs) or section 95(1) of the Act (for other houses) was being committed.

Where the tribunal is satisfied that a person has been convicted of an offence under section 72(1) or 95(1) of the Act and that housing benefit was paid as mentioned in the previous paragraph, section 74(2) of the Act (for HMOs) and section 97(2) of the Act (for other houses) requires the tribunal to make a RRO. The order must require the person who, at the time that the housing benefit was paid, was entitled to receive the periodical payments in respect of which the housing benefit was paid (“the appropriate person”) to pay to the local housing authority an amount equal to the total amount of housing benefit paid during the period during which it appears to the tribunal that an offence under section 72(1) of the Act (for HMOs) or section 95(1) of the Act (for other houses) was being committed. This is subject to some exceptions, set out in the Act.

In all other cases, the tribunal has a discretion to make a RRO for such an amount as is reasonable in the circumstances.

Regulation 2 of these Regulations permits a local housing authority that has made an application for a RRO to seek leave from the tribunal to amend its application where it believes that there has been an overpayment of housing benefit so that the application is in respect of the amount of housing benefit that the local housing authority believes is properly payable under the Housing Benefit Regulations 2006 or the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006. Paragraph (3) of regulation 2 defines “properly payable”.

Regulation 3 specifies the purposes for which monies received by a local housing authority under a RRO may be applied. There is an exception relating to costs and expenses recovered by other means, for example, court orders or under section 129 of the Act (relating to recovery of costs of management orders).

Regulation 4 requires a local housing authority to pay into the Welsh Consolidated Fund amounts received under a RRO that are not applied for a purpose specified in regulation 3.