Section 204 — Power to contract for tenancy
Extent: E+W
This version in force from 2024-12-02
Snapshot: 2026-08-24
Reproduced from legislation.gov.uk (Crown Copyright, Open Government Licence v3.0). Amendments made after 2026-08-24 may not be reflected — always check the official text .
(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.