Rent Act 1974

Modifications of Rent Act in relation to furnished and other tenancies

1 Extension of protection afforded to furnished tenancies

(1) On and after the commencement date,—

(a) a tenancy of a dwelling-house shall no longer be prevented from being a protected tenancy for the purposes of the Rent Act by reason only that, under the tenancy, the dwelling-house is bona fide let at a rent which includes payments in respect of the use of furniture; and

(b) subject to the following provisions of this Act, references in the Rent Act (and in any other enactment or instrument in which those expressions have the same meaning as in that Act) to a protected tenancy, a statutory tenancy or a regulated tenancy shall be construed accordingly.

(2) Any reference in this Act or the Rent Act to a protected furnished tenancy, a statutory furnished tenancy or a regulated furnished tenancy is a reference to a protected tenancy, a statutory tenancy or a regulated tenancy, as the case may be, under which the rent for the dwelling-house concerned includes such payments in respect of the use of furniture as, apart from subsection (1) above, subsection (4)(a) below and the repeals effected by this Act, would prevent a tenancy of the dwelling-house at that rent from being a protected tenancy.

(3) Notwithstanding anything in section 7(1) of or Schedule 2 to the Rent Act (controlled and regulated tenancies) no protected furnished tenancy or statutory furnished tenancy shall be a controlled tenancy.

(4) In consequence of the provisions of this Act,—

(a) in section 2(1)(b) of the Rent Act (exclusion from protection of tenancies where the rent includes payments in respect of board, attendance or use of furniture) for the words " attendance or use of furniture " there shall be substituted the words " or attendance ";

(b) Schedule 3 to the Rent Act (grounds for possession) shall have effect subject to the modifications in Part I of Schedule 1 to this Act;

(c) Parts IV, VIII and IX of the [1968 c. 23.] Rent Act 1968 shall have effect subject to the amendments in Part II of that Schedule; and

(d) Parts IV, IX and X of the [1971 c. 28.] Rent (Scotland) Act 1971 shall have effect subject to the amendments in Part III of that Schedule.

2 Certain tenancies not to be protected

(1) In subsection (1) of section 2 of the Rent Act (tenancies excepted from definition of " protected tenancy") after paragraph (b) there shall be inserted the following paragraphs:—

“(bb) the tenancy is granted to a person who is pursuing or intends to pursue a course of study provided by a specified educational institution and is so granted either by that institution or by another specified institution or body of persons; or

(bbb) the purpose of the tenancy is to confer on the tenant the right to occupy the dwelling-house for a holiday; or”.

(2) After subsection (3) of section 2 of the Rent Act there shall be added the following subsection:—

“(4) In paragraph (bb) of subsection (1) above " specified " means specified, or of a class specified, for the purposes of that paragraph by regulations made by the Secretary of State by statutory instrument; and a statutory instrument containing any such regulations shall be subject to annulment in pursuance of a resolution of either House of Parliament.”

(3) After section 5 of the Rent Act there shall be inserted the section 5A set out in paragraph 1 or, as the case may require, paragraph 2 of Part I of Schedule 2 to this Act and, accordingly, in section 1(1) of the Rent Act (definition of protected tenancy) at the end of paragraph (c) there shall be added the words— “or

(d) by virtue of section 5A below, the tenancy has at all times since it was granted been precluded from being a protected tenancy”.

(4) Part IX of the [1968 c. 23.] Rent Act 1968 shall have effect subject to the amendments in Part II of Schedule 2 to this Act and Part X of the [1971 c. 28.] Rent (Scotland) Act 1971 shall have effect subject to the amendments in Part III of that Schedule.

3 Recovery of possession of dwelling-houses let on certain tenancies

(1) In Part II of Schedule 3 to the Rent Act 1968 (Cases in which court must order possession of dwelling-house subject to regulated tenancy) the following Cases shall be inserted after Case 10:—

“Case 10A

Where a person (in this Case referred to as " the owner ") who acquired the dwelling-house or any interest therein with a view to occupying it as his residence at such time as he might retire from regular employment let it on a regulated tenancy before he has so retired and—

(a) not later than the relevant date the landlord gave notice in writing to the tenant that possession might be recovered under this Case; and

(b) the dwelling-house has not, since the commencement date, within the meaning of the Rent Act 1974, been let by the owner on a protected tenancy with respect to which the condition mentioned in paragraph (a) above was not satisfied; and

(c) the court is satisfied either that the owner has retired from regular employment and requires the dwelling-house as a residence or that the owner has died and the dwelling-house is required as a residence for a member of his family who was residing with him at the time of his death:

Provided that if the court is of the opinion that, notwithstanding that the condition in paragraph (a) or paragraph (b) above is not complied with, it is just and equitable to make an order for possession of the dwelling-house, the court may dispense with the requirements of either or both of those paragraphs, as the case may require.

Case 10B

Where the dwelling-house is let under a tenancy for a term of years certain not exceeding 8 months and—

(a) not later than the relevant date the landlord gave notice in writing to the tenant that possession might be recovered under this Case; and

(b) the dwelling-house was, at some time within the period of 12 months ending on the relevant date, occupied under a right to occupy it for a holiday ;

and for the purposes of this Case a tenancy shall be treated as being for a term of years certain notwithstanding that it is liable to determination by re-entry or on the happening of any event other than the giving of notice by the landlord to determine the term.

Case 10C

Where the dwelling house is let under a tenancy for a term of years certain not exceeding 12 months and—

(a) not later than the relevant date the landlord gave notice in writing to the tenant that possession might be recovered under this Case; and

(b) at some time within the period of 12 months ending on the relevant date, the dwelling-house was subject to such a tenancy as is referred to in section 2(1)(bb) of this Act;

and for the purposes of this Case a tenancy shall be treated as being for a term of years certain notwithstanding that it is liable to determination by re-entry or on the happening of any event other than the giving of notice by the landlord to determine the term.”

(2) In Part II of Schedule 3 to the [1971 c. 28.] Rent (Scotland) Act 1971 (Cases in which court must order possession of dwelling-house subject to regulated tenancy) the following Cases shall be inserted after Case 11:—

“Case 11A

Where a; person (in this Case referred to as " the owner ") who acquired the dwelling-house or any interest therein with a view to occupying it as his residence at such time as he might retire from regular employment let it on a regulated tenancy before he has so retired and—

(a) not later than the relevant date the landlord gave notice in writing to the tenant that possession might be recovered under this Case; and

(b) the dwelling-house has not, since the commencement date, within the meaning of the Rent Act 1974, been let by the owner on a protected tenancy with respect to which the condition mentioned in paragraph (a) above was not satisfied; and

(c) the court is satisfied either that the owner has retired from regular employment and requires the dwelling-house as a residence or that the owner has died and the dwelling-house is required as a residence for a member of his family who was residing with him at the time of his death:

Provided that if the court is of the opinion that, notwithstanding that the condition in paragraph (a) or paragraph (b) above is not complied with, it is just and equitable to make an order for possession of the dwelling-house, the court may dispense with the requirements of either or both of those paragraphs, as the case may require.

Case 11B

Where the dwelling-house is let under a tenancy for a specified period not exceeding 8 months and—

(a) not later than the relevant date the landlord gave notice in writing to the tenant that possession might be recovered under this Case; and

(b) the dwelling-house was, at some time within the period of 12 months ending on the relevant date, occupied under a right to occupy it for a holiday ;

and for the purposes of this Case a tenancy shall be treated as being for a specified period—

(i) of less than 8 months, if it is determinable at the option of the landlord (other than in the event of an irritancy being incurred) before the expiration of 8 months from the commencement of the period of the tenancy, and

(ii) of 8 months or more, if it confers on the tenant an option for renewal of the tenancy for a period which, together with the original period, amounts to 8 months or more, and it is not determinable as mentioned in paragraph (i) above.

Case 11C

Where the dwelling-house is let under a tenancy for a specified period not exceeding 12 months and—

(a) not later than the relevant date the landlord gave notice in writing to the tenant that possession might be recovered under this Case; and

(b) at some time within the period of 12 months ending on the relevant date the dwelling-house was subject to such a tenancy as is referred to in section 2(1)(bb) of this Act;

and for the purposes of this Case a tenancy shall be treated as being for a specified period—

(i) of less than 12 months, if it is determinable at the option of the landlord (other than in the event of an irritancy being incurred) before the expiration of 12 months from the commencement of the period of the tenancy, and

(ii) of 12 months or more, if it confers on the tenant an option for renewal of the tenancy for a period which, together with the original period, amounts to 12 months or more, and it is not determinable as mentioned in paragraph (i) above.”

(3) At the end of Case 10 in Part II of Schedule 3 to the [1968 c. 23.] Rent Act 1968 and at the end of Case 11 in Part II of Schedule 3 to the [1971 c. 28.] Rent (Scotland) Act 1971 there shall be added the following proviso:—

“Provided that if the court is of the opinion that, notwithstanding that the condition in paragraph (a) or paragraph (b) above is not complied with, it is just and equitable to make an order for possession of the dwelling-house, the court may dispense with the requirements of either or both of those paragraphs, as the case may require”.

4 Advance application for registration of a new rent

(1) At the beginning of subsection (3) of section 44 of the Rent Act 1968 (no application for registration of a new rent until three years after a previous registration) there shall be inserted the words " Subject to subsection (3A) below " and at the end of that subsection there shall be added the following subsection:—

“(3A) Notwithstanding anything in subsection (3) above, an application such as is mentioned in that subsection which is made by the landlord alone and is so made within the last three months of the period of three years referred to in that subsection may be entertained notwithstanding that that period has not expired.”

(2) At the beginning of subsection (1) of section 48 of that Act (effect of registration of rent) there shall be inserted the words " Subject to subsection (1A) below " and at the end of that subsection there shall be added the following subsection:—

“(1A) Where, by virtue of subsection (3A) of section 44 above, an application is made before the expiry of the period of three years referred to hr subsection (3) of that section, subsection (1) above shall have effect as if for the reference to the date of the application there were substituted a reference to the first day after the expiry of that period of three years.”

(3) At the beginning of subsection (3) of section 40 of the [1971 c. 28.] Rent (Scotland) Act 1971 (no application for registration of a new rent until three years after a previous registration) there shall be inserted the words " Subject to subsection (3A) below " and at the end of that subsection there shall be added the following subsection:—

“(3A) An application such as is mentioned in subsection (3) above which is made by the landlord alone and is so made within the last three months of the period of three years referred to in that subsection may be entertained before the expiry of that period, notwithstanding that the application is not made upon any of the grounds mentioned in that subsection.”

(4) At the beginning of subsection (1) of section 44 of the said Act of 1971 (effect of registration of rent) there shall be inserted the words " Subject to subsection (1A) below " and at the end of that subsection there shall be added the following subsection:—

“(1A) Where, by virtue of subsection (3A) of section 40 above, an application is made before the expiry of the period of three years referred to in subsection (3) of that section, subsection (1) above shall have effect as if for the reference to the date of the application there were substituted a reference to the first day after the expiry of that period of three years.”

5 Transitional provisions affecting furnished lettings which become furnished tenancies

(1) In any case where—

(a) immediately before the commencement date a dwelling is subject to a furnished letting and a rent is registered for that dwelling under the relevant Part of the Rent Act, and

(b) on the commencement date that furnished letting becomes a protected furnished tenancy by virtue of section 1 above,

the amount which is so registered under the relevant Part of the Rent Act shall be deemed to be registered under Part IV of that Act as the rent for the dwelling-house which is let on that tenancy, and that registration shall be deemed to take effect on the commencement date.

(2) Section 44(3) of the [1968 c. 23.] Rent Act 1968, or, as the case may require, section 40(3) of the [1971 c. 28.] Rent (Scotland) Act 1971 (no application for registration of a different rent to be made within 3 years of the last registration) shall not apply to an application for the registration under Part IV of the Rent Act of a rent different from that which is deemed to be registered as mentioned in subsection (1) above.

(3) The reference in section 45(1)(b) of the Rent Act 1968 or, as the case may require, section 41(1)(b) of the Rent (Scotland) Act 1971 (certificates of fair rent) to a rent being registered for a dwelling-house does not include a rent which is deemed to be registered as mentioned in subsection (1) above.

(4) In any case where—

(a) before the commencement date a notice to quit had been served in respect of a dwelling to which a furnished letting then related, and

(b) the period at the end of which that notice to quit takes effect had, before the commencement date, been extended under the relevant Part of the Rent Act, and

(c) that period has not expired before the commencement date, and

(d) on the commencement date the furnished letting becomes a protected furnished tenancy by virtue of section 1 above,

the notice to quit shall take effect on the day following the commencement date (whenever it would otherwise take effect) and, accordingly, on that day the protected furnished tenancy shall become a statutory furnished tenancy.

Furnished Lettings (England and Wales)

6 Furnished lettings: increase in rateable value limits

In section 71 of the Rent Act 1968 (dwellings to which Part VI applies) for subsection (1) there shall be substituted the following subsections:—

“(1) Subject to any provision made by an order under subsection (2) below, where the appropriate day in relation to any dwelling fell before 1st April 1973, this Part of this Act applies to the dwelling if—

(a) it had on the appropriate day a rateable value not exceeding, if it is in Greater London, £400, or, if it is elsewhere, £200 ; or

(b) it had on 1st April 1973 a rateable value not exceeding, if it is in Greater London, £1,500, or, if it is elsewhere, £750.

(1A) Subject to any provision made by an order under subsection (2) below, where the appropriate day in relation to any dwelling fell or falls on or after 1st April 1973, this Part of this Act applies to the dwelling if it has or had on the appropriate day a rateable value not exceeding, if it is in Greater London, £1,500, or, if it is elsewhere, £750.”

7 Furnished lettings: amendments relating to control and registration of rents

(1) In section 73(1) of the [1968 c. 23.] Rent Act 1968 (powers of rent tribunals on reference of Part VI contracts) in paragraph (b) (power to reduce the rent to such sum as the tribunal thinks reasonable) after the word "reduce" there shall be inserted the words " or increase " and accordingly the following provisions of that Act shall cease to have effect, namely,—

(a) section 73(3) (under which the tribunal could, in respect of certain long-standing contracts, approve a rent higher than that payable under the contract); and

(b) section 75(2) (under which, on a reference made after a rent had been registered, the tribunal had power to increase the rent payable).

(2) For subsection (5) of section 73 of that Act (the tribunal need not entertain any reference made by a lessee or lessor alone if they are satisfied that the reference is frivolous or vexatious) there shall be substituted the following subsection:—

“(5) Where the rent under a Part VI contract has been registered under section 74 below, a rent tribunal shall not be required to entertain a reference, made otherwise than by the lessor and the lessee jointly, for the registration of a different rent for the dwelling concerned before the expiry of the period of three years beginning on the date on which the rent was last considered by the tribunal, except on the ground that, since that date, there has been such a change in the condition of the dwelling, the furniture or services provided, the terms of the contract or any other circumstances taken into consideration when the rent was last considered as to make the registered rent no longer a reasonable rent.”

(3) In section 74 of that Act (register of rents under Part VI contracts) after subsection (2) there shall be inserted the following subsection:—

“(2A) Where any rates in respect of a dwelling are borne by the lessor or any person having any title superior to that of the lessor, the amount to be entered in the register under this section as the rent payable for the dwelling shall be the same as if the rates were not so borne ; but the fact that they are so borne shall be noted in the register.”

(4) In section 75(1) of that Act (reconsideration of rent after registration) after the words " section 74 above " there shall be inserted the words " then, subject to section 73(5) above " and the words " on the ground of change of circumstances " shall be omitted.

(5) In section 76 of that Act (effect of registration of rent) after subsection (1) there shall be added the following subsection:—

“(1A) Where subsection (2A) of section 74 above applies, the amount entered in the register under that section shall be treated for the purposes of this section as increased for any rental period by the amount of the rates for that period, ascertained in accordance with Schedule 4 to this Act.”

(6) In section 84(1) of that Act (interpretation of Part VI) after the definition of " register" there shall be inserted the following definition:—

• “' rental period ' means a period in respect of which a payment of rent falls to be made”.

8 Furnished lettings: amendments relating to security of tenure

(1) In section 78(1) of the [1968 c. 23.] Rent Act 1968 (application by lessee to rent tribunal for extension of period before notice to quit takes effect) paragraph (c) (no application may be made if the rent tribunal has previously granted an extension of less than six months) shall be omitted.

(2) In section 80 of that Act (reduction of period of notice on account of lessee's default) at the end of paragraph (c) of subsection (2) there shall be added the words “or

(d) that the condition of any furniture provided for the use of the lessee under the contract has deteriorated owing to any ill-treatment by the lessee or any person residing or lodging with him”.

Funished lettings (Scotland)

9 Furnished lettings: amendments relating to control and registration of rents

(1) In section 88(1) of the [1971 c. 28.] Rent (Scotland) Act 1971 (powers of rent tribunals on reference of Part VII contracts) in paragraph (b) (power to reduce the rent to such sum as the tribunal thinks reasonable) after the word " reduce " there shall be inserted the words " or increase " , and accordingly section 90(2) of that Act (under which, on a reference made after a rent had been registered, the tribunal had power to increase the rent payable) shall cease to have effect.

(2) For subsection (4) of section 88 of that Act (the tribunal need not entertain any reference made by a lessee or lessor alone if they are satisfied that the reference is frivolous or vexatious) there shall be substituted the following subsection:—

“(4) Where the rent under a Part VII contract has been registered under section 89 below, a rent tribunal shall not be required to entertain a reference, made otherwise than by the lessor and the lessee jointly, for the registration of a different rent for the dwelling-house concerned before the expiry of the period of 3 years beginning on the date on which the rent was last considered by the tribunal, except on the ground that, since that date, there has been such a change in the condition of the dwelling-house, the furniture or services provided, the terms of the contract or any other circumstances taken into consideration when the rent was last considered as to make the registered rent no longer a reasonable rent.”

(3) In section 89 of that Act (register of rents under Part VII contracts) after subsection (2) there shall be inserted the following subsection:—

“(2A) Where any rates in respect of a dwelling-house are borne by the lessor, the amount to be entered in the register under this section as the rent payable for the dwelling-house shall be the same as if the rates were not so borne; but the fact that they are so borne shall be noted in the register.”

(4) In section 90(1) of that Act (reconsideration of rent after registration) after the words " section 89 above " there shall be inserted the words " then, subject to section 88(4) above " and the words " on the ground of change of circumstances " shall be omitted.

(5) In section 91 of that Act (effect of registration of rent) after subsection (1) there shall be added the following subsection:—

“(1A) Where subsection (2A) of section 89 above applies, the amount entered in the register under that section shall be treated for the purposes of this section as increased for any rental period by the amount of the rates for that period ascertained in accordance with Schedule 4 to this Act.”

(6) In section 100(1) of that Act (interpretation of Part VII) after the definition of " register " there shall be inserted the following definition :—

• “' rental period ' means a period in respect of which a payment of rent falls to be made”.

10 Furnished lettings: amendments relating to security of tenure

(1) In section 93(1) of the [1971 c. 28.] Rent (Scotland) Act 1971 (application by lessee to rent tribunal for extension of period before notice to quit takes effect) paragraph (c) (no application may be made if the rent tribunal has previously granted an extension of less than six months) shall be omitted.

(2) In section 95 of that Act (reduction of period of notice on account of lessee's default) at the end of paragraph (c) of subsection (2) there shall be added the words “or

(d) that the condition of any furniture provided for the use of the lessee under the contract has deteriorated owing to any ill-treatment by the lessee or any person residing or lodging with him”.

Supplementary

11 Rent allowances

(1) On and after such day as the Secretary of State may by order made by statutory instrument appoint, so much of Part II of the [1972 c. 47.] Housing Finance Act 1972 (rent rebates and rent allowances) as requires that, in order to qualify for an allowance, a person occupying a dwelling under a Part VI letting must be a qualified person, within the meaning of section 19(12) of that Act, shall cease to have effect.

(2) The proviso to subsection (1) of section 25 of the Housing Finance Act 1972 (which, in the case of certain furnished lettings, determines the rent which is eligible to be met by a rebate or an allowance for the purposes of Schedule 3 to that Act) shall cease to have effect on the commencement date.

(3) Notwithstanding anything in subsection (2) above, in the case of a person who immediately before the commencement date was a tenant under a Part VI letting, the provisions of subsection (4) below shall apply if, for an allowance period which was current on or ended immediately before the commencement date, the tenant was entitled to an allowance towards the rent payable under the Part VI letting and, in calculating that allowance for the last week of that period which ended before the commencement date, the rent which, for the purposes of Schedule 3 to the Housing Finance Act 1972, was eligible to be met by a rebate or an allowance was that determined under paragraph (a) of the proviso to section 25(1) of that Act (the occupational element of the rent or of the residue of the rent plus 25 per cent).

(4) If, by virtue of subsection (3) above, this subsection applies in relation to a tenant, then, subject to subsection (5) below, on and after the commencement date, if and so long as—

(a) the tenant continues to occupy as his home the dwelling to which, immediately before that date, the Part VI letting referred to in subsection (3) above applied, and

(b) the tenant continues to be entitled to an allowance towards the rent payable by him for that dwelling, and

(c) that rent continues to include payment for the use of furniture,

the rent which, for the purposes of Schedule 3 to the Housing Finance Act 1972, is eligible to be met by a rebate or an allowance shall, in his case, be the amount of the rent which was so eligible for the week mentioned in subsection (3) above (in this section referred to as " the former eligible rent ").

(5) For any week of an allowance period when, apart from this subsection, subsection (4) above would apply in relation to a tenant, that subsection shall cease to apply if—

(a) the amount determined under section 25(1) of the [1972 c. 47.] Housing Finance Act 1972 as the rent which is eligible to be met by a rebate or an allowance exceeds the former eligible rent, or

(b) the rent recoverable from the tenant, exclusive of any part thereof attributable to rates, is less than the former eligible rent, or

(c) part of the dwelling is sub-let and the former eligible rent either did not take account of the occupational element of any rent payable by a sub-tenant or took account of such an element which is less than the occupational element of the rent payable for that week by the sub-tenant,

and, accordingly, from the beginning of that week the rent which is eligible to be met by a rebate or an allowance shall be that determined as mentioned in paragraph (a) above.

(6) In subsection (1) of section 25 of the Housing Finance Act 1972 after the words " of the rent" there shall be inserted, in substitution for the words there inserted by paragraph 17 of Schedule 1 to the [1973 c. 6.] Furnished Lettings (Rent Allowances) Act 1973, the words " (or if, in the case of an allowance, any amount falls to be deducted by virtue of paragraph 14 of Schedule 4 to this Act, the occupational element of the residue of the rent remaining after deducting those amounts) ".

(7) Subsections (2) and (3) of the said section 25 shall be amended as follows:—

(a) at the end of subsection (2) there shall be added the words “and

(c) less, in the case of an allowance, any amount which, in the case of the tenant concerned, is prescribed as a deduction by virtue of paragraph (c) of subsection (3) below”; and

(b) at the end of subsection (3) there shall be added the words “and

(c) prescribe deductions from rent for the purposes of subsection (2)(c) above in the case of tenants of such descriptions as may be specified in the regulations who are for the time being in receipt of awards or grants under any provision of sections 1 to 3 of the Education Act 1962 or any other award or grant which is paid out of money provided by Parliament and is determined by the Secretary of State to be an analogous award or grant,

and different provision may be made by virtue of paragraph (c) above in relation to different periods and different classes of awards or grants”.

(8) In subsection (1) of section 26 of the [1972 c. 47.] Housing Finance Act 1972 (interpretation of Part II) in the definition of " tenant " after paragraph (c) there shall be inserted the following paragraph:—

“(d) a person who is treated as a private tenant under a Part VI letting by virtue of subsection (8A) of section 19 of this Act”.

(9) The said section 26 shall apply in relation to subsections (1) to (5) above as if those subsections were included in Part II of the Housing Finance Act 1972 and, without prejudice to the application of that section, the reference in subsection (3) above to a tenant under a Part VI letting includes a reference to a person who is treated as if he were a private tenant under a Part VI letting by virtue of section 19(8A) of that Act and any reference in that subsection or subsection (4) above to a Part VI letting means, in relation to a person who is so treated, the letting referred to in the said section 19(8A).

12 Rent allowances in Scotland

(1) On and after such day as the Secretary of State may by order made by statutory instrument appoint, so much of section 16 of the Act of 1972 (rent allowances) as requires that, for certain persons to be or to be treated as private tenants, they must be qualified persons within the meaning of subsection (8) of that section, shall cease to have effect.

(2) In paragraph 15(1)(g)(ii) of Schedule 3 to the Act of 1972 (which provides that in ascertaining the amount of an allowance in respect of a furnished letting a certain amount of rent payable is to be disregarded), the words " 125 per cent. of " shall cease to have effect on the commencement date.

(3) Notwithstanding anything in subsection (2) above, in the case of a person who immediately before the commencement date was a tenant of a dwelling-house under a furnished letting, the provisions of subsection (4) below shall apply, if, for an allowance period which was current on or ended immediately before that date, the tenant was entitled to an allowance towards the rent payable under the furnished letting which was calculated, for the last week of that period which ended before that date, by reference to an amount of rent which, after making the deduction (if any) required by head (i) of paragraph 15(1)(g) of Schedule 3 to the Act of 1972, was more than the estimated fair rent referred to in head (ii) of that paragraph but not more than 125 per cent. of that estimated fair rent.

(4) If, by virtue of subsection (3) above, this subsection applies in relation to a tenant, then, if and so long as he continues on and after the commencement date to be—

(a) a tenant of the same dwelling-house under the same letting (whether or not it continues to be a furnished letting) and

(b) entitled to an allowance towards the rent under the letting concerned,

the allowance shall be calculated by reference to the amount of rent referred to in subsection (3) above until—

(i) the rent recoverable from the tenant for any week of an allowance period is less than the amount referred to in that subsection, or

(ii) the amount of rent by reference to which, but for this subsection, the allowance for any such week would be calculated is higher than the amount referred to in subsection (3) above,

whichever is the earlier; and as from the beginning of that week the allowance shall be calculated by reference to the amount of rent to which an authority would be entitled to have regard but for this subsection.

(5) Paragraph 17 of Schedule 2 to the Act of 1972 shall be amended as follows—

(a) in sub-paragraph (1) for the words " sub-paragraph (2) below" there shall be substituted the words " the following provisions of this paragraph ";

(b) at the end there shall be added the following sub-paragraphs—

“(3) It shall be the duty of every authority, for the purpose of computing the amount of an allowance towards the rent payable by tenants of such classes as may be prescribed who are for the time being in receipt of—

(a) an award or grant, being a bursary, scholarship or allowance granted under section 49(1) or 75(f) of the [1962 c. 47.] Education (Scotland) Act 1962, or

(b) any other award or grant which is paid out of money provided by Parliament and is determined by the Secretary of State to be analagous to any such bursary, scholarship or allowance,

to treat the rent as reduced by such amount as may be prescribed.

(4) In sub-paragraph (3) above " prescribed " means prescribed by regulations made by the Secretary of State by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(5) Regulations under this paragraph may make different provision in relation to different periods and different classes of awards or grants.”

(6) In this section "the Act of 1972" means the [1972 c. 46.] Housing (Financial Provisions) (Scotland) Act 1972; and section 22 of the Act of 1972 (interpretation of Part II of that Act) shall apply in relation to this section as if it were included in that Part.

13 Effect on furnished sub-tenancy of determination of superior unfurnished tenancy

(1) Without prejudice to the operation of section 1(1) above if, in a case where subsection (2) of section 18 of the [1968 c. 23.] Rent Act 1968 or, as the case may require, section 17 of the [1971 c. 28.] Rent (Scotland) Act 1971 applies (effect on sub-tenancies of determination of superior tenancy), the relevant conditions are fulfilled, the terms on which the sub-tenant is, by virtue of that subsection, deemed to become the tenant of the landlord shall not include any terms as to the provision by the landlord of furniture or services.

(2) The relevant conditions referred to in subsection (1) above are—

(a) that the tenancy or statutory tenancy which is determined as mentioned in the said section 18(2) or, as the case may require, 17(2) was neither a protected furnished tenancy nor a statutory furnished tenancy; and

(b) that, immediately before the determination of that tenancy or statutory tenancy, the sub-tenant referred to in that section was the tenant under a protected furnished tenancy or a statutory furnished tenancy; and

(c) that the landlord, within the period of six weeks beginning with the day on which the tenancy or statutory tenancy referred to in that section is determined, serves notice on the sub-tenant that this section is to apply to his tenancy or statutory tenancy.

14 Power of court, in action for possession, to reduce period of notice to quit

(1) After section 80 of the Rent Act 1968 there shall be inserted the following section:—

“80A Power of county court, in action for possession, to reduce period of notice to quit.

In any case where—

(a) a notice to quit a dwelling which is the subject of a Part VI contract has been served, and

(b) the period at the end of which the notice to quit takes effect is for the time being extended by virtue of section 77 or section 78 above, and

(c) at some time during that period the lessor institutes proceedings in the county court for the recovery of possession of the dwelling, and

(d) in those proceedings the county court is satisfied that any of paragraphs (a) to (d) of section 80(2) above applies,

the court may direct that the period referred to in paragraph (b) above shall be reduced so as to end at a date specified in the direction.”

(2) At the end of subsection (3) of section 106 of that Act (rules as to procedure) there shall be added the words " and section 80A ".

(3) After section 95 of the [1971 c. 28.] Rent (Scotland) Act 1971 there shall be inserted the following section:—

“95A Power of sheriff, in action for possession, to reduce period of notice to quit.

In any case where—

(a) a notice to quit a dwelling-house which is the subject of a Part VII contract has been served, and

(b) the period at the end of which the notice to quit takes effect is for the time being extended by virtue of section 92 or section 93 above, and

(c) at some time during that period the lessor institutes proceedings before the sheriff for possession of the dwelling-house, and

(d) in those proceedings the sheriff is satisfied that any of paragraphs (a) to (d) of section 95(2) above applies,

the sheriff may direct that the period referred to in paragraph (b) above shall be reduced so as to end at a date specified in the direction.”

15 Interpretation

(1) In this Act—

• " commencement date " means the date on which this Act comes into operation;

• " dwelling ", in relation to a furnished letting, means a house or part of a house ;

• " furnished letting " means a Part VI contract, as defined in section 70(6) of the [1968 c. 23.] Rent Act 1968 or, as the case may require, a Part VII contract, as defined in section 85(5) of the Rent (Scotland) Act 1971;

• " protected furnished tenancy ", " regulated furnished tenancy " and " statutory furnished tenancy " shall be construed in accordance with section 1(2) above;

• " the Rent Act " means, in relation to England and Wales, the [1968 c. 23.] Rent Act 1968 and, in relation to Scotland, the [1971 c. 28.] Rent (Scotland) Act 1971;

• " the relevant Part of the Rent Act " means Part VI of the Rent Act 1968 or, as the case may require, Part VII of the Rent (Scotland) Act 1971; and

• " services " has the same meaning as in the relevant Part of the Rent Act.

(2) Without prejudice to subsection (1) above, section 113(1) of the Rent Act 1968 or, as the case may require, section 133(1) of the Rent (Scotland) Act 1971 (interpretation) shall apply for the purposes of this Act other than sections 11 and 12 above as it applies for the purposes of that Act.

(3) Except in so far as the context otherwise requires, any reference in this Act to any other enactment shall be taken as referring to that enactment as amended by or under any other enactment, including this Act.

16 Transitional provisions and repeals

(1) The transitional provisions in Schedule 3 to this Act shall have effect, notwithstanding anything in the preceding provisions of this Act.

(2) The enactments specified in Schedule 4 to this Act are hereby repealed to the extent specified in the third column of that Schedule but, in the case of the enactments specified in Part II of that Schedule, only with effect from the day appointed for the purposes of subsection (1) of sections 11 and 12 above.

17 Short title, citation, application, commencement and extent

(1) This Act may be cited as the Rent Act 1974.

(2) This Act and the Rent Act 1968 may be cited together as the Rent Acts 1968 and 1974.

(3) This Act and the Rent (Scotland) Acts 1971 and 1972 may be cited together as the Rent (Scotland) Acts 1971 to 1974.

(4) In section 115 of the Rent Act 1968 (application to Isles of Scilly)—

(a) in subsection (1), after the words " this Act" there shall be inserted the words " and the Rent Act 1974 ";

(b) at the end of paragraph (e) of subsection (2) there shall be inserted the words “and

(f) any provision of this Act which is derived from the Rent Act 1974, other than a provision of Part VI of this Act, and any other provision of the Rent Act 1974”.

(5) This Act shall come into operation at the expiry of the period of two weeks beginning with the date on which it is passed.

(6) Sections 3(1), 4(1) and (2), 6, 7, 8, 11 and 14(1) and (2) of this Act and Part II of Schedules 1 and 2 to this Act do not extend to Scotland and sections 3(2), 4(3) and (4), 9, 10, 12 and 14(3) of this Act and Part III of Schedules 1 and 2 to this Act extend to Scotland only.

(7) This Act does not extend to Northern Ireland.