Treatment of high rents6.

(1)

Subject to paragraphs (3) and (4), where any part of the qualifying expenditure of an authority within an area listed in column (1) of Schedule 4 is attributable to any allowance granted in respect of a person whose weekly eligible rent exceeds the threshold specified in relation to that authority in column (2) of that Schedule the amount of the authority’s subsidy under this article in respect of that allowance shall be calculated in accordance with paragraph (2).

(2)

Where paragraph (1) applies–

(a)

if the allowance granted is the same as or less than the excess of eligible rent over the threshold, the amount shall be 25 per cent. of the qualifying expenditure attributable to such allowance;

(b)

if the allowance granted is greater than the excess of the eligible rent over the threshold, the amount shall be the aggregate of 25 per cent. of the portion of the qualifying expenditure attributable to such allowance which is equal to the excess and 97 per cent. of the balance.

(3)

Paragraph (1) shall not apply to an allowance payable by an authority in respect of–

(a)

rents which exceed the threshold and which are registered in respect of a dwelling under Part IV, V or VI of the Rent Act 19775 or Part V, VI or VII of the Rent (Scotland) Act 19846 or which have been determined by a rent assessment committee in respect of a dwelling under Part I of the Housing Act 19887 or Part II of the Housing (Scotland) Act 19888;

(b)

rents which exceed the threshold but which have been referred to the rent officer and not registered by him because he is satisfied the rent is at or below the fair rent level and he has in writing so notified the authority; or

(c)

rents which exceed the threshold where the relevant tenancy is one to which, before 15th January 1989, the provisions of sections 56 to 58 of the Housing Act 1980 applied9.

(4)

This article shall not apply in a case to which article 7 applies.