43TFirst-tier Tribunal’s powers on an application under section 43S(1)(1)

Subsection (2) applies where the First-tier Tribunal receives an application under section 43S(1)(a) in relation to a rent-increase notice given under a current tenancy.

(2)

If the Tribunal determines—

(a)

that any previous rent increase took effect less than 12 months before the original effective date, the Tribunal must make an order that the rent-increase notice is of no effect (and accordingly the rent payable under the current tenancy is unchanged),

(b)

that any previous rent increase took effect 12 months or more before the original effective date, the Tribunal must make an order stating that from the effective date the rent payable under the current tenancy is the lower of—

(i)

the rent specified in the rent-increase notice in accordance with section 43L(3)(a)(i), and

(ii)

the rent payable under the tenancy as increased by the permitted rate.

(3)

Subsection (4) applies where the First-tier Tribunal receives an application under section 43S(1)(b) in relation to a rent-increase notice given under a current tenancy.

(4)

If the Tribunal determines—

(a)

that the initial rent under the current tenancy (that is proposed to be increased by the rent-increase notice) was not set in accordance with section 43G(2) or (3) (as the case may be), the Tribunal must make an order stating that from the effective date the rent payable under the tenancy is the rent determined by the Tribunal,

(b)

that the rent payable at the start of the current tenancy (that is proposed to be increased by the rent-increase notice) was set in accordance with section 43G(2) or (3) (as the case may be), the Tribunal must make an order stating that from the effective date the rent payable under the tenancy is the lower of—

(i)

the rent specified in the rent-increase notice in accordance with section 43L(3)(a)(i), and

(ii)

the rent payable under the tenancy as increased by the permitted rate.

(5)

In determining the rent under subsection (4)(a), the First-tier Tribunal may not determine that the rent payable under the current tenancy from the effective date is more than the base rent as increased by the permitted rate.

(6)

For the purpose of subsection (2) or (4), the effective date is—

(a)

where the Tribunal makes the order 14 days or more before the original effective date, the original effective date,

(b)

otherwise, the first payment date falling at least 14 days after the day on which the Tribunal makes the order.

(7)

In this section—

“base rent” means the amount of rent that would have been payable from the start of the current tenancy had the rent been set in accordance with section 43G(2) or (3) (as the case may be),

“original effective date” means the date on which the rent would have been increased in accordance with section 43L(4) had the referral to the First-tier Tribunal not been made under section 43S(1),

“payment date” means a date on which a rent payment falls to be made in accordance with the terms of the current tenancy.