Counter-Inflation Act 1973

Section 14.

SCHEDULE 5 Rent Restriction

Special rent limit for existing tenancies brought within the Rent Act

1 (1) This paragraph applies to a regulated tenancy—

(a) which was granted before 8th March 1973, and

(b) which would not have been a regulated tenancy but for the provisions of subsection (1) of the principal section.

(2) Subject to the provisions of this Schedule, the recoverable rent for any contractual period of a tenancy to which this paragraph applies shall not exceed the limit specified in paragraph 2 below, and the amount of any excess shall, notwithstanding anything in any agreement, be irrecoverable from the tenant.

(3) Where a rent for the dwelling-house is registered under Part IV of the [1968 c. 23.] Rent Act 1968 which is less than the limit specified in paragraph 2 below, neither section 20(2) (registered rent as limit for contractual periods) nor section 22(2) (corresponding provision for statutory periods) of that Act shall apply to a tenancy to which this paragraph applies.

(4) Sub-paragraphs (2) and (3) above shall cease to apply if the landlord and the tenant so provide by an agreement conforming with the requirements of section 43(3) of the [1972 c. 47.] Housing Finance Act 1972 (agreement to explain the nature of the tenant's security of tenure).

(5) Sub-paragraph (2) above shall not apply where a rent for the dwelling-house is registered under Part IV of the Rent Act 1968 which is not less than the limit specified in paragraph 2 below.

(6) Section 33 of the Rent Act 1968 (enforcement provisions) shall apply as if any amount made irrecoverable by this paragraph were irrecoverable by virtue of Part III of that Act, and section 36 of that Act (adjustment for differences in lengths of rental periods) shall apply for the purposes of this paragraph.

2 (1) Where at the date of the passing of this Act Article 10 of the [S.I. 1972/1851.] Counter-Inflation (Rents) (England and Wales) Order 1972 applied to the rent under the tenancy (to which paragraph 1 applies), the said limit is the rent payable under the tenancy as limited by the said Article 10 immediately before that date.

(2) In any other case the said limit is the rent payable under the terms of the tenancy (to which paragraph 1 applies) at the passing of this Act.

Adjustment for repairs, services or rates

3 (1) This paragraph applies to a contractual period the rent for which is subject to paragraph 1(2) of this Schedule.

(2) In this paragraph "the previous terms" means the terms of the tenancy (to which paragraph 1 applies) as at the passing of this Act.

(3) Where under the terms of the tenancy there is with respect to—

(a) the responsibility for any repairs, or

(b) the provision of services by the landlord or any superior landlord, or

(c) the use of furniture by the tenant,

any difference compared with the previous terms, such as to affect the amount of the rent which it is reasonable to charge, the limit in paragraph 2 above shall be increased or decreased by an appropriate amount.

(4) Where for the contractual period there is a difference between the amount (if any) of the rates borne by the landlord or a superior landlord in respect of the dwelling-house and the amount (if any) so borne during the first rental period for which the previous terms were agreed, the limit in paragraph 2 above shall be increased or decreased by the difference.

(5) Where for the contractual period there is an increase in the cost of the provision of the services (if any) provided for the tenant by the landlord or a superior landlord compared with that cost at the time when the previous terms were agreed, such as to affect the amount of the rent which it is reasonable to charge, the limit in paragraph 2 above shall be increased by an appropriate amount.

(6) Where the previous terms provide for a variation of the rent in any of the circumstances mentioned in this paragraph, the limit shall not be further varied under this paragraph by reason of the same circumstances.

(7) Any question whether, or by what amount, the limit is increased or decreased by sub-paragraph (3) or sub-paragraph (5) of this paragraph shall be determined by the county court, and any such determination—

(a) may be made so as to relate to past rental periods, and

(b) shall have effect with respect to rental periods subsequent to the periods to which it relates until revoked or varied by a subsequent determination.

Statutory period of tenancy: no adjustment for improvements

4 Section 25 of the [1968 c. 23.] Rent Act 1968 (increase for improvements) shall not apply to a tenancy to which paragraph 1 of this Schedule applies.

Premiums

5 (1) This paragraph has effect where a premium was lawfully required and paid on the grant of a tenancy to which paragraph 1 of this Schedule applies.

(2) Nc4hing in section 86 of the Rent Act 1968 (prohibition of premiums on assignment of protected tenancies) shall prevent any person from requiring or receiving, on an assignment of the tenancy, the fraction of the premium specified below (without prejudice, however, to his requiring or receiving a greater sum in a case where he may lawfully do so under Schedule 11 to the Rent Act 1968).

(3) If there was more than one premium, sub-paragraph (2) above applies to the last of them.

(4) The said fraction is where—

(a) X is the residue of the term of the tenancy at the date of the assignment, and

(b) Y is the term for which the tenancy was granted.

(5) Sub-paragraph (1) of this paragraph shall apply where a tenancy has been assigned as it applies where a tenancy has been granted, and then Y in the said fraction shall be the residue, at the date of that assignment, of the term for which the tenancy was granted.

(6) In this and the next following paragraph " grant" includes continuance and renewal.

6 (1) Where the tenancy to which paragraph 5(1) above applies was granted on the surrender of a previous tenancy, and a premium had been lawfully required and paid on the grant, or an assignment, of the previous tenancy, the surrender value of the previous tenancy shall be treated, for the purposes of paragraph 5 above as a premium, or as the case may be as part of the premium, paid on the said grant of the tenancy.

(2) For the purposes of sub-paragraph (1) above the surrender value of the previous tenancy shall be taken to be the amount which—

(a) if the previous tenancy had been assigned instead of being surrendered, and

(b) if this paragraph had applied to it,

would have been the amount which could have been required and received on the assignment in pursuance of paragraph 5 above and this paragraph.

(3) In determining for the purposes of paragraph 5 above, or o-f this paragraph, the amount which may be or could have been required and received on the assignment of a tenancy terminable, before the end of the term for which it was granted, by a notice to the tenant, that term shall be taken to be a term expiring at the earliest date on which such a notice, given after the date of the assignment, would have been capable of taking effect.

Tenancies ending before passing of this Act

7 (1) This paragraph applies where the tenancy of a dwelling-house has come to an end at a time before the passing of this Act, and the tenancy would have been a regulated tenancy if the principal section had been in force at that time.

(2) No order for possession of the dwelling-house shall be made which would not be made if the principal section had been in force at the said time.

(3) Where a court has made an order for possession of the dwelling-house before the passing of this Act, but the order has not been executed, the court, if of opinion that the order would not have been made if this Act had come into force before the tenancy came to an end may, on the application of the person against whom it was made, rescind or vary it in such manner as the court thinks fit for the purpose of giving effect to the principal section.

(4) If the tenant under the tenancy which has come to an end duly retains possession of the dwelling-house after the passing of this Act (without any order for possession having been made, or after the rescission of such an order) he shall be deemed to do so under a statutory tenancy arising on the termination of the tenancy which has come to an end, and, subject to sub-paragraph (7) below, the terms of that tenancy (including the rent) shall be deemed to have been the same as those of the tenancy which has come to an end.

(5) Where Article 10 of the [S.I. 1972/1851.] Counter-Inflation (Rents) (England and Wales) Order 1972 applied to the rent under the tenancy, the rent under the tenancy imposed by sub-paragraph (4) above shall be the rent as limited by the said Article 10.

(6) Paragraphs 1 to 4 of this Schedule shall not apply to a statutory tenancy arising under sub-paragraph (4) above.

(7) The High Court or the county court may by order vary all or any of the terms of the tenancy imposed by sub-paragraph (4) above in any way appearing to the court to be just and equitable (and whether or not in a way authorised by the provisions of sections 23 and 24 of the [1968 c. 23.] Rent Act 1968).

(8) If at the passing of this Act the dwelling-house is occupied by a person who would, if the tenancy had been a regulated tenancy have been the " first successor " within the meaning of paragraph 4 of Schedule 1 to the [1968 c. 23.] Rent Act 1968—

(a) an application under sub-paragraph (3) above may be made by that person, and

(b) sub-paragraphs (4), (5) and (6) above shall apply where that person retains possession as they apply where the tenant retains possession.

Mortgages

8 At the end of section 93 of the Rent Act 1968 (mortgages to which Part VIII of that Act applies) there shall be inserted the following subsection—

“(5) If at the date of the passing of the Counter-Inflation Act 1973 land consisting of or including a dwelling-house was subject to a tenancy which becomes a regulated tenancy by virtue of section 14 of that Act, then in relation to that dwelling-house (and any land including that dwelling-house)—

(a) sections 94 and 95 below shall have effect as if for the reference in subsection (1)(a) above to 8th December 1965 there were substituted a reference to the date of the passing of the said Act;

(b) subsection (2)(a) of the said section 94 shall have effect as if for the reference to the appropriate day there were substituted a reference to 7th March 1973, and

(c) subsection (1)(b) of the said section 95 shall not apply.”

Grounds for possession of dwelling-house

9 If at the date of the passing of this Act a dwelling-house was subject to a tenancy which becomes a regulated tenancy by virtue of the principal section, then, in relation to that tenancy—

(a) Case 5, paragraph (b) of Case 10, and paragraph 2(a) of Part III, of Schedule 3 to the Rent Act 1968 shall have effect as if for the references in those provisions to 8th December 1965 there were substituted references to the date of the passing of this Act,

(b) Case 8 of the said Schedule 3 shall have effect as if for the reference to 23rd March 1965 there were substituted a reference to 8th March 1973, and

(c) the said paragraph 2(a) of Part III of Schedule 3 shall have effect as if for 7th June 1966 there were substituted a reference to the expiration of a period of six months beginning with the passing of this Act.

[1951 c. 65.] Reserve and Auxiliary Forces (Protection of Civil Interests Act) 1951

10 In section 16(2)(a) of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951 (protection of premises by extension of the Rent Acts) the words "on the appropriate day " shall cease to have effect, and for the words " in subsection (1)(a) of section 1" there shall be substituted the words " in paragraphs (a), (aa) or (aaa) of subsection (1) of section 1 ".

Tenancies at a low rent

11 (1) At the end of section 2(1) of the [1968 c. 23.] Rent Act 1968 there shall be inserted the following proviso :—

“Provided that paragraph (a) of this subsection shall apply in relation to a dwelling-house—

(i) in relation to which the appropriate day fell before the passing of the Counter-Inflation Act 1973, and

(ii) which had on the said appropriate day a rateable value exceeding, if it is in Greater London, £400 or, if it is elsewhere, £200,

as if for the reference in the said paragraph (a) to the appropriate day there were substituted a reference to the date of passing of the Counter-Inflation Act 1973.”.

(2) In section 2(5) of the [1954 c. 56.] Landlord and Tenant Act 1954 (as originally enacted) for paragraphs (a) and (b) there shall be substituted the words " for the purposes of this subsection the rateable value of the property is that which would be taken as its rateable value for the purposes of section 2(1)(a) of the Rent Act 1968. "

Construction

12 In this Schedule—

(a) " rates " includes water rates and charges,

(b) other expressions shall be construed as in the Rent Act 1968.