Explanatory Note
(This note is not part of the Order)
This Order imposes a maximum fair rent limit on the rent to be registered in respect of applications for rent registration, made after this Order comes into force, under Part IV of the Rent Act 1977, including applications made under section 13 of the Rent (Agriculture) Act 1976 and section 87 of the Rent Act 1977 (housing association tenancies).
Article 2 sets out the formula for the maximum fair rent. This is the existing registered rent for the dwelling-house plus the percentage difference between the United Kingdom Retail Prices Index published in the month immediately preceding the month in which the new determination is made and the published index for the month in which the previous rent registration (i.e. the rent registered before the current application for rent registration) was made plus 7.5% (first applications after the Order comes into force) or 5% (any subsequent applications).
Where the result of the formula would be to reduce the existing registered rent, the maximum fair rent to be registered shall be the existing registered rent at the time of the application.
Under paragraph (5) of article 2 variable service charges will not be affected by the maximum fair rent limit.
Paragraph (6) of article 2 applies the maximum fair rent limit to all applications for registered rent made after the Order comes into force where there is an existing registered rent for the dwelling-house.
Paragraph (7) of article 2 provides an exemption to the application of the maximum fair rent.
Article 3 and the Schedule to this Order make a consequential amendment to Schedule 11 of the Rent Act 1977.
The United Kingdom Retail Prices Index is published monthly by the Office for National Statistics and copies can be obtained from their offices at 1 Drummond Gate, London SW1V 2QQ (Telephone number: 0171 533 5874).