Interim Management Order IMO

[edit] Brief intro to Interim Management Orders

An Interim Management Order (IMO) is a power that local councils have under the Housing Act 2004, to effectively take over the role of a landlord that is failing to meet standards required. The implementation of IMOs can also relate to occurrences of anti-social behaviour. When a management order is in place the council steps into the shoes of the landlord and collects rent from the existing tenants, can use this for upkeep and can even create new tenancies during the life of the order, which is up to 12 months.

[edit] The role of Selective licencing schemes

In certain circumstance IMOs can also be applied in the private rented sector, in particular where a council has a Selective licencing scheme (SLS) in place. Such schemes when implemented give local authorities the power to introduce licencing for all privately rented properties in a given area, thus requiring all private landlords to obtain a licence.

[edit] First UK implementation of an private sector IMO

In 2023 Merton Council implemented a selective licencing scheme in four specific wards, and in August 2024 reported that it had issued an Interim Management Order to a private landlord for a number of properties, one of the first actions of its kind in the country.

Following a number of inspections after complaints from tenants, council officers issued several notices to the homeowner, who ignored the orders for months. As there was no reasonable prospect of the private tenancies being licenced as required, the council was able to make an ‘Interim Management Order’ to take control of the properties. As such the council would be taking temporary control of the homes and directing the tenants’ rental income into ensuring the management of the property is to the standard expected for tenants, whilst the owner remains responsible for paying the mortgages.

The Councillor Andrew Judge, Merton Council’s Cabinet Member for Housing and Sustainable Development, said: “Everyone deserves to live in a safe and decent home and the council is committed to improving housing conditions in the private rented sector. While many landlords operate within guidelines, there are also others who do not, often taking advantage of some of the most vulnerable members of our community. This leads to issues affecting health and safety, the wider community, as well as the environment. This action sends a clear message to landlords: if you do not license your property, or act in such a way that the property cannot be licensed, the council can and will use its powers to take over the running of it.”

[edit] Special Interim Management Order SIMO

Where is is not appropriate to make a selective licensing designation to an address isolated individual problems of anti-social behaviour, though ones that may be impacting the local community a Special Interim Management Order (SIMO) may be used.

A Special Interim Management Order (SIMO) acts in the same way as an IMO, transfers the management of a residential property to the local housing authority for a period of up to twelve months and can only be made if approved by the First Tier Tribunal (Residential Property). The tribunal may not authorise a Special Interim Management Order in respect of a property unless, in the case of non-Houses of Multiple Occupation, there is anti-social behaviour emanating from the property, the landlord is failing to take appropriate action to deal with the problem, and it is necessary to make the order to protect the health, safety or welfare of persons occupying, visiting or engaged in lawful activities in the locality of the house.

[edit] References in Housing Act

The housing act itself describes the making of interim management orders thus:

• (1) A local housing authority—
  • (a) are under a duty to make an interim management order in respect of a house in a case within subsection (2) or (3), and
  • (b) have power to make an interim management order in respect of a house in a case within subsection (4) [F1, (7) or (7A)].
• (2) The authority must make an interim management order in respect of a house if—
  • (a )it is an HMO or a Part 3 house which is required to be licensed under Part 2 or Part 3 (see section 61(1) or 85(1)) but is not so licensed, and
  • (b) they consider either—
    • (i)that there is no reasonable prospect of its being so licensed in the near future, or
    • (ii)that the health and safety condition is satisfied (see section 104).
• (3) The authority must make an interim management order in respect of a house if—
  • (a) it is an HMO or a Part 3 house which is required to be licensed under Part 2 or Part 3 and is so licensed,
  • (b)they have revoked the licence concerned but the revocation is not yet in force, and
  • (c)they consider either—
    • (i) that, on the revocation coming into force, there will be no reasonable prospect of the house being so licensed in the near future, or
    • (ii) that, on the revocation coming into force, the health and safety condition will be satisfied (see section 104).
• (4) The authority may make an interim management order in respect of a house if—
  • (a)it is an HMO other than one that is required to be licensed under Part 2, and
  • (b)on an application by the authority to [F2the appropriate tribunal], the tribunal by order authorises them to make such an order, either in the terms of a draft order submitted by them or in those terms as varied by the tribunal; and the authority may make such an order despite any pending appeal against the order of the tribunal (but this is without prejudice to any order that may be made on the disposal of any such appeal).
• (5) The tribunal may only authorise the authority to make an interim management order under subsection (4) if it considers that the health and safety condition is satisfied (see section 104).
• (6 )In determining whether to authorise the authority to make an interim management order in respect of an HMO under subsection (4), the tribunal must have regard to the extent to which any applicable code of practice approved under section 233 has been complied with in respect of the HMO in the past.
• (7) The authority may make an interim management order in respect of a house if—
  • (a) it is a house to which section 103 (special interim management orders) applies, and
  • (b) on an application by the authority to a residential property tribunal, the tribunal by order authorises them to make such an order, either in the terms of a draft order submitted by them or in those terms as varied by the tribunal; and the authority may make such an order despite any pending appeal against the order of the tribunal (but this is without prejudice to any order that may be made on the disposal of any such appeal).
• Subsections (2) to (6) of section 103 apply in relation to the power of [F3 the appropriate tribunal] to authorise the making of an interim management order under this subsection. [F4 (7A)The authority may make an interim management order in respect of any property let in breach of a banning order under section 16 of the Housing and Planning Act 2016.]
• (8) The authority may make an interim management order which is expressed not to apply to a part of the house that is occupied by a person who has an estate or interest in the whole of the house. In relation to such an order, a reference in this Chapter to “the house” does not include the part so excluded (unless the context requires otherwise, such as where the reference is to the house as an HMO or a Part 3 house).
• (9) Nothing in this section requires or authorises the making of an interim management order [F5under subsection (2), (3), (4) or (7)] in respect of a house if—
  • (a)an interim management order has been previously made in respect of it, and
  • (b)the authority have not exercised any relevant function in respect of the house at any time after the making of the interim management order.
• (10) In subsection (9) “relevant function” means the function of—
  • (a)granting a licence under Part 2 or 3,
  • (b)serving a temporary exemption notice under section 62 or section 86, or
  • (c)making a final management order under section 113.

For further information see Licensing and management provisions in the Housing Act 2004: draft guidance.

[edit] Related articles on Designing Buildings

• Agricultural tenancy.
• Break clauses in leases.
• Buy-to-let mortgage.
• Commonhold.
• Derogation from grant.
• Electrical safety in the private rented sector.
• Energy efficiency regulations: The challenges for landlords.
• Failure to notify tenant.
• Freehold.
• Ground rent.
• Homes (Fitness for Human Habitation) Act 2018.
• Housing Act 2004.
• Housing tenure.
• How to evict a tenant.
• Landlord.
• Landlord and Tenant Act.
• Lease negotiations.
• Leasehold.
• Leasehold covenants.
• Licensing buildings.
• Occupier.
• Owner occupier.
• Property guardianship.
• Quiet enjoyment.
• Rent.
• Rent free period.
• Rent review.
• Right to rent.
• Section 13 notice.
• Section 21 notice.
• Tenancy deposit protection.
• Tenant.
• Vacant possession.