Ignoring Fractions of a Day in Housing Law

A recent Upper Tribunal decision, Moh & Ors v Rimal Properties Ltd [2024] UKUT 324 (LC), has significant implications for landlords and agents in England and Wales. The case delves into the common law principle of ignoring fractions of a day and demonstrates how specific statutory wording can impact legal deadlines.

Overview of the Case

In Moh & Ors v Rimal Properties Ltd, tenants sought a Rent Repayment Order (RRO) against their landlord for operating an unlicensed House in Multiple Occupation (HMO). Under Section 72(1) of the Housing Act 2004, it is an offence for a person to manage or have control of an HMO that requires a licence but is not licensed.

Key Facts:

Licence Application: The landlord applied for an HMO licence on May 4, 2022, at 13:44.
RRO Application: The tenants submitted their RRO application on May 4, 2023, at 15:36.

The critical question was whether the tenants' application was made within the permissible time frame. According to Section 41(2)(b) of the Housing and Planning Act 2016:

"A tenant may apply for a rent repayment order only if... the offence was committed in the period of 12 months ending with the day on which the application is made."

The Common Law Rule of Ignoring Fractions of a Day

The court reaffirmed the long-standing common law principle that fractions of a day are generally disregarded in legal calculations. This means that when calculating time periods, the law does not consider the specific time an event occurred within a day; the entire day is treated as a single, indivisible unit.

Application in the Case

Defence Taking Effect: The landlord's defence (having applied for an HMO licence) was considered effective for the entire day of May 4, 2022, even though the application was made in the afternoon.
Offence Duration: Consequently, the last day the landlord was committing the offence was May 3, 2022.

The tenants argued that since the licence application was made partway through the day, the offence was still being committed earlier that day. However, the court held that because fractions of a day are ignored, the landlord had the defence for the whole of May 4, 2022.

Calculating the 12-Month Period

The specific wording of the statute played a crucial role in determining whether the tenants' application was within time.

Statutory Wording:

"Ending with the day on which the application is made"

Court's Interpretation:

The period of 12 months ends with the day the application is made (May 4, 2023) and begins on the day after the last day the offence was committed.
Since the last offence was on May 3, 2022, the 12-month period began on May 5, 2022.
Therefore, the tenants' application was out of time because the offence was not committed within the 12 months ending with the day of the application.

Importance of Specific Statutory Wording

This case highlights how subtle differences in statutory wording can lead to different legal outcomes. How a time period is defined in legislation can determine whether a deadline is met or missed.

Tenancy Deposit Protection Example

Under Section 213(3) of the Housing Act 2004 (England version but similar for Wales):

"Where a landlord receives a tenancy deposit... the initial requirements of an authorised scheme must be complied with by the landlord in relation to the deposit within the period of 30 days beginning with the date on which it is received."

Key Differences:

"Beginning with the date" means that the day the deposit is received is included in the 30-day period.
In contrast, the wording in the Moh case ("ending with the day") had the effect of excluding the starting day.

Practical Implication:

Deposit Received: If a landlord receives a deposit on January 1st, Day 1 is January 1st.
Deadline to Protect Deposit: The landlord must protect the deposit by January 30th (Day 30).
No Extra Day: Unlike in the Moh case, the landlord does not get an extra day because the period begins with the date of receipt.

Importance for Landlords:

This comparison underscores the necessity for landlords to:

Carefully Read Statutes: Understand the exact wording used in legislation to determine obligations accurately.
Act Promptly: Do not assume extra time is available due to the interpretation of time periods; the statutory language dictates the calculation.

Key Takeaways for Landlords and Agents

Understand the Wording: Pay close attention to the specific wording of statutory provisions, as slight differences can significantly affect legal obligations and deadlines.
No Fractions of a Day: The law treats actions as occurring over the entire day, regardless of the specific time they occur.
Act Promptly: Do not wait until the last permissible day to comply with legal requirements, as miscalculations can lead to missed deadlines.
Seek Legal Advice: When in doubt, consult a legal professional to ensure compliance with all statutory obligations.

Acknowledgements

Special thanks to Nearly Legal for their insightful analysis of the case.