Rent Act 1977

• (b) at the time when it is granted it is a tenancy at a low rent; and

• (c) the terms of the tenancy ensure that any variation of the sums payable by the tenant otherwise than in respect of rates, services, repairs or maintenance, cannot lead to those sums exceeding an annual rate of two-thirds of the rateable value of the dwelling-house at the date when the variation is made.

For the purposes of this subsection the rateable value of a dwelling-house shall be ascertained in accordance with section 25 of this Act (disregarding subsection (4)) by reference to the value shown in the valuation list at the date when the variation is made.

• (4) Nothing in this section shall affect the recovery, in pursuance of any judgment given or order or agreement made before 20th May 1969, of any amount which it was not lawful to receive under the law in force at the time it was received.

• (5) In this section “grant” includes continuance and renewal and for the purposes of subsections (2)(c) and (3B)(d) above the terms of a tenancy inhibit an assignment or underletting if they—

• (a) preclude it; or

• (b) permit it subject to a consent but exclude section 144 of the Law of Property Act 1925 (no payment in nature of fine); or

• (c) permit it subject to a consent but require in connection with a request for consent the making of an offer to surrender the tenancy.

Interpretation of Part IX

128

• (1) In this Part of this Act, unless the context otherwise requires,—

• “furniture” includes fittings and other articles; and

• “premium” includes—

• (a) any fine or other like sum;

• (b) any other pecuniary consideration in addition to rent; and

• (c) any sum paid by way of a deposit, other than one which does not exceed one-sixth of the annual rent and is reasonable in relation to the potential liability in respect of which it is paid.

• (2) For the avoidance of doubt it is hereby declared that nothing in this Part of this Act shall render any amount recoverable more than once.

Part X — Mortgages

Mortgages to which Part X applies

129

• (1) This Part of this Act is concerned with mortgages which—

• (a) were created before the relevant date, and

• (b) are regulated mortgages as defined in section 131 of this Act.

• (2) For the purposes of this Part of this Act, “relevant date”—

• (a) in a case where, on 28th November 1967, land consisting of or including a dwelling-house was subject to a long tenancy which became a regulated tenancy on that date by virtue of section 39 of the Leasehold Reform Act 1967, means, in relation to that land, 28th November 1967;

• (b) in a case where, on 22nd March 1973, land consisting of or including a dwelling-house was subject to a tenancy which became a regulated tenancy by virtue of section 14 of the Counter-Inflation Act 1973, means, in relation to that land, 22nd March 1973;

• (c) in the case of land consisting of or including a dwelling-house subject to a regulated furnished tenancy, means, in relation to that land, 14th August 1974; and

• (d) in any other case, means 8th December 1965.

Controlled mortgages

130

Regulated mortgages

131

• (1) Subject to subsection (2) below, a mortgage which falls within section 129(1)(a) of this Act . . . is a regulated mortgage if—

• (a) it is a legal mortgage of land consisting of or including a dwelling-house which is let on or subject to a regulated tenancy, and

• (b) the regulated tenancy is binding on the mortgagee.

• (2) Notwithstanding that a mortgage falls within subsection (1) above, it is not a regulated mortgage if—

• (a) the rateable value on the appropriate day of the dwelling-house which falls within subsection (1)(a) above or, if there is more than one such dwelling-house comprised in the mortgage, the aggregate of the rateable values of those dwelling-houses on the appropriate day is less than one-tenth of the rateable value on the appropriate day of the whole of the land comprised in the mortgage, or

• (b) the mortgagor is in breach of covenant, but for this purpose a breach of the covenant for the repayment of the principal money otherwise than by instalments shall be disregarded.

• (3) Subsection (2)(a) above shall have effect, in the case of land consisting of or including a dwelling-house which on 22nd March 1973 was subject to a tenancy which became a regulated tenancy by virtue of section 14 of the Counter-Inflation Act 1973, as if for the reference to the appropriate day there were substituted a reference to 7th March 1973.

• (4) In this section “legal mortgage” includes a charge by way of legal mortgage.

• (5) Any reference in this Part of this Act to a regulated mortgage shall be construed in accordance with this section.

Powers of court to mitigate hardship to mortgagors under regulated mortgages

132

• (1) The powers of the court under this section become exercisable, in relation to a regulated mortgage, only on an application made by the mortgagor within 21 days, or such longer time as the courts may allow, after the occurrence of one of the following events:—

• (a) the rate of interest payable in respect of the mortgage is increased; or

• (b) a rent for a dwelling-house comprised in the mortgage is registered under Part IV of this Act and the rent so registered is lower than the rent which was payable immediately before the registration; or

• (c) the mortgagee, not being a mortgagee who was in possession on the relevant date, demands payment of the principal money secured by the mortgage or takes any steps for exercising any right of foreclosure or sale or for otherwise enforcing his security.

Paragraph (b) above shall not apply to a case falling within section 129(2)(b) of this Act.

• (2) If the court is satisfied on any such application that, by reason of the event in question and of the operation of this Act, the mortgagor would suffer severe financial hardship unless relief were given under this section, the court may by order make such provision—

• (a) limiting the rate of interest,

• (b) extending the time for the repayment of the principal money, or

• (c) otherwise varying the terms of the mortgage or imposing any limitation or condition on the exercise of any right or remedy in respect thereof,

as it thinks appropriate.

• (3) Where the court makes an order under subsection (2) above in relation to a mortgage which comprises other land as well as a dwelling-house or dwelling-houses subject to a regulated tenancy the order may, if the mortgagee so requests, make provision for apportioning the money secured by the mortgage between that other land and the dwelling-house or dwelling-houses.

• (4) Where such an apportionment is made, the other provisions of the order made by the court shall not apply in relation to the other land referred to in that subsection and the money secured by the other land, and the mortgage shall have effect for all purposes as two separate mortgages of the apportioned parts.

• (5) Where the court has made an order under this section it may vary or revoke it by a subsequent order.

• (6) The court for the purposes of this section is the county court , except that where an application under subsection (1) above is made in pursuance of any step taken by the mortgagee in the High Court it is the High Court.

Restrictions applicable to controlled mortgages

133

Apportionment of controlled mortgages

134

• (1) Where a controlled mortgage comprises other land as well as a dwelling-house or dwelling-houses to which, immediately before 8th June 1968. the Increase of Rent and Mortgage Interest (Restrictions) Act 1920 applied, the mortgagee may apportion the principal money secured by the mortgage between that other land and the dwelling-house or dwelling-houses by giving one month's notice in writing to the mortgagor, stating the particulars of the apportionment.

• (2) At any time before the expiry of a month's notice given under subsection (1) above, the mortgagor may dispute the amounts apportioned by the notice and, in default of agreement, the apportionment of the principal money secured by the mortgage shall be determined by a single arbitrator appointed by the President of the Royal Institution of Chartered Surveyors.

• (3) Where a notice is given under subsection (1) above then, as from the expiry of the month's notice, this Part of this Act shall cease to apply to the mortgage in question so far as it relates to the other land referred to in subsection (1) above and the money secured by the other land, and the mortgage shall have effect for all purposes as two separate mortgages of the apportioned parts.

Recovery of sums paid in excess of permitted rate of interest under controlled mortgage

135

• (1) Where a mortgagor under a controlled mortgage has paid on account of mortgage interest any amount which, by virtue of Schedule 19 to this Act, is irrecoverable by the mortgagee, the mortgagor who paid it shall be entitled to recover that amount from the mortgagee who received it or his personal representatives.

• (2) Any amount which a mortgagor is entitled to recover under subsection (1) above may, without prejudice to any other method of recovery, be deducted by the mortgagor from any mortgage interest payable by him to the mortgagee.

• (3) No amount which a mortgagor is entitled to recover under subsection (1) above shall be recoverable at any time after the expiry of 2 years from the date of payment.

Interpretation of Part X

136

In this Part of this Act, except where the context otherwise requires—

• (a) “mortgagee” and “mortgagor” include any person from time to time deriving title under the original mortgagee or mortgagor; and

• (b) “legal mortgage” in relation to regulated mortgages, includes any registered charge (within the meaning of the Land Registration Act 2002).

Part XI — General

Sublettings

Effect on sub-tenancy of determination of superior tenancy

137

• (1) If a court makes an order for possession of a dwelling-house from—

• (a) a protected or statutory tenant, or

• (b) a protected occupier or statutory tenant as defined in the Rent (Agriculture) Act 1976.

and the order is made by virtue of section 98(1) or 99(2) of this Act or, as the case may be, under Part I of Schedule 4 to that Act, nothing in the order shall affect the right of any sub-tenant to whom the dwelling-house or any part of it has been lawfully sublet before the commencement of the proceedings to retain possession by virtue of . . . this Act, nor shall the order operate to give a right to possession against any such sub-tenant.

• (2) Where a statutorily protected tenancy of a dwelling-house is determined, either as a result of an order for possession or for any other reason, any sub-tenant to whom the dwelling-house or any part of it has been lawfully sublet shall, subject to this Act, be deemed to become the tenant of the landlord on the same terms as if the tenant’s statutorily protected tenancy had continued.

• (3) Where a dwelling-house—

• (a) forms part of premises which have been let as a whole on a superior tenancy but do not constitute a dwelling-house let on a statutorily protected tenancy; and

• (b) is itself subject to a protected or statutory tenancy,

then, from the coming to an end of the superior tenancy, this Act shall apply in relation to the dwelling-house as if, in lieu of the superior tenancy, there had been separate tenancies of the dwelling-house and of the remainder of the premises, for the like purposes as under the superior tenancy, and at rents equal to the just proportion of the rent under the superior tenancy.

In this subsection “premises” includes, if the sub-tenancy in question is a protected or statutory tenancy to which section 99 of this Act applies, an agricultural holding within the meaning of the Agricultural Holdings Act 1986held under a tenancy to which that Act applied and land comprised in a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995.

• (4) In subsections (2) and (3) above “statutorily protected tenancy” means—

• (a) a protected or statutory tenancy;

• (b) a protected occupancy or statutory tenancy as defined in the Rent (Agriculture) Act 1976; or

• (c) if the sub-tenancy in question is a protected or statutory tenancy to which section 99 of this Act applies—

• (i) a tenancy of an agricultural holding within the meaning of the Agricultural Holdings Act 1986 which is a tenancy in relation to which that Act applies, or

• (ii) a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995.

• (5) Subject to subsection (6) below, a long tenancy of a dwelling-house which is also a tenancy at a low rent but which, had it not been a tenancy at a low rent, would have been a protected tenancy or an assured tenancy, within the meaning of Part I of the Housing Act 1988, shall be treated for the purposes of subsection (2) above as a statutorily protected tenancy.

• (6) Notwithstanding anything in subsection (5) above, subsection (2) above shall not have effect where the sub-tenancy in question was created (whether immediately or derivatively) out of a long tenancy falling within subsection (5) above and, at the time of the creation of the sub-tenancy—

• (a) a notice to terminate the long tenancy had been given under section 4(1) of the Landlord and Tenant Act 1954 or, as the case may be, served under paragraph 4(1) of Schedule 10 to the Local Government and Housing Act 1989; or

• (b) the long tenancy was being continued by section 3(1) of the said Act of 1954 or, as the case may be, paragraph 3 of the said Schedule 10;

unless the sub-tenancy was created with the consent in writing of the person who at the time when it was created was the landlord, within the meaning of Part I of the said Act of 1954 or, as the case may be, the said Schedule 10.

• (7) This section shall apply equally where a protected occupier of a dwelling-house, or part of a dwelling-house, has a relevant licence as defined in the Rent (Agriculture) Act 1976, and in this section “tenancy” and all cognate expressions shall be construed accordingly.

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

138

• (1) If, in a case where section 137(2) of this Act applies, the conditions mentioned in subsection (2) below are fulfilled, the terms on which the sub-tenant is, by virtue of section 137(2), 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 conditions are:—

• (a) that the statutorily protected tenancy which is determined as mentioned in section 137(2) was neither a protected furnished tenancy nor a statutory furnished tenancy; and

• (b) that, immediately before the determination of that statutorily protected tenancy, the sub-tenant referred to in section 137(2) was the tenant under a protected furnished tenancy or a statutory furnished tenancy; and

• (c) that the landlord, within the period of 6 weeks beginning with the day on which the statutorily protected tenancy referred to in section 137(2) is determined, serves notice on the sub-tenant that this section is to apply to his tenancy or statutory tenancy.

• (3) In this section “statutorily protected tenancy” has the same meaning as it has for the purposes of section 137(2) of this Act.

Obligation to notify sublettings of dwelling-houses let on or subject to protected or statutory tenancies

139

• (1) If the tenant of a dwelling-house let on or subject to a protected or statutory tenancy sublets any part of the dwelling-house on a protected tenancy, then, subject to subsection (2) below, he shall, within 14 days after the subletting, supply the landlord with a statement in writing of the subletting giving particulars of occupancy, including the rent charged.

• (2) Subsection (1) above shall not require the supply of a statement in relation to a subletting of any part of a dwelling-house if the particulars which would be required to be included in the statement as to the rent and other conditions of the sub-tenancy would be the same as in the last statement supplied in accordance with that subsection with respect to a previous subletting ofthat part.

• (3) A tenant who is required to supply a statement in accordance with subsection (1) above and who, without reasonable excuse—

• (a) fails to supply a statement, or

• (b) supplies a statement which is false in any material particular,

shall be liable to a fine not exceeding level 1 on the standard scale.

• (4) In this section—

• (a) “protected tenancy” includes a protected occupancy under the Rent (Agriculture) Act 1976;

• (b) “statutory tenancy” includes a statutory tenancy under that Act.

Fire Precautions

Modification of Act in relation to fire precautions

140

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Jurisdiction and procedure

County court jurisdiction

141

• (1) The county court shall have jurisdiction, either in the course of any proceedings relating to a dwelling or on an application made for the purpose by the landlord or the tenant, to determine any question—

• (a) as to whether a tenancy is a protected tenancy or whether any person is a statutory tenant of a dwelling-house, . . . or

• (b) as to the rent limit; or

• (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (d) as to the application of Part V and sections 103 to 106 of this Act to a contract; or

• (e) as to whether a protected, statutory or regulated tenancy is a protected, statutory or regulated furnished tenancy;

or as to any matter which is or may become material for determining any such question.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) The county court shall have jurisdiction to deal with any claim or other proceedings arising out of any of the provisions of this Act specified in subsection (5) below, notwithstanding that by reason of the amount of the claim or otherwise the case would not, apart from this subsection, be within the jurisdiction of the county court .

• (4) If, under any of the provisions of this Act specified in subsection (5) below, a person takes proceedings in the High Court which he could have taken in the county court, he shall not be entitled to recover any costs.

• (5) The provisions referred to in subsections (3) and (4) above are—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) in Part III, section 57;

• (c) Part VII, except sections 98(2) and 101;

• (d) in Part IX, sections 125 and 126;

• (e) in Part X, sections 133(1), 134 and 135; and

• (f) in this Part of this Act, section 145.

Rules as to procedure

142

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Release from provisions of Act

Release from rent regulation

143

• (1) Where the Secretary of State is satisfied with respect to every part of any area that the number of persons seeking to become tenants there—

• (a) of dwelling-houses exceeding a specified rateable value, or

• (b) of any class or description of dwelling-house or of dwelling-house exceeding a specified rateable value,

is not substantially greater than the number of such dwelling-houses in that part, he may by order provide that no such dwelling-house in the area shall be the subject of a regulated tenancy or the subject of a protected occupancy or statutory tenancy under the Rent (Agriculture) Act 1976.

• (2) An order under this section may contain such transitional provisions, including provisions to avoid or mitigate hardship, as appear to the Secretary of State to be desirable.

• (3) The power to make an order under this section shall be exercisable by statutory instrument and no such order shall have effect unless it is approved by a resolution of each House of Parliament.

Release from restricted contract provisions

144

• (1) The Secretary of State may by order provide that, as from such date as may be specified in the order, section 19 of this Act shall not apply to a dwelling the rateable value of which on such day as may be specified in the order exceeds such amount as may be so specified.

• (2) An order under this section—

• (a) may be made so as to relate to the whole of England and Wales or to such area in England and Wales as may be specified in the order, and so as to apply generally or only to, or except to, such classes or descriptions of dwellings as may be specified in the order; and

• (b) may contain such transitional provisions as appear to the Secretary of State to be desirable.

• (3) The power to make an order under this section shall be exercisable by statutory instrument and no such order shall have effect unless it is approved by a resolution of each House of Parliament.

Rents of subsidised private houses

145

Miscellaneous

Long tenancies at a low rent

146

• (1) In determining whether a long tenancy was, at any time,—

• (a) a tenancy at a low rent within the meaning of the Rent Act 1968; or

• (b) a tenancy to which, by virtue of section 12(7) of the Act of 1920, the Rent Acts did not apply;

there shall be disregarded such part (if any) of the sums payable by the tenant as is expressed (in whatever terms) to be payable in respect of rates, council tax,services, repairs, maintenance, or insurance, unless it could not have been regarded by the parties as a part so payable.

• (2) In subsection (1) above—

• “long tenancy” means a tenancy granted for a term certain exceeding 21 years, other than a tenancy which is, or may become, terminable before the end of that term by notice given to the tenant;

• “the Act of 1920” means the Increase of Rent and Mortgage Interest (Restrictions) Act 1920; and

• “the Rent Acts” means the Rent and Mortgage Interest Restrictions Acts 1920 to 1939.

Restriction on levy of distress for rent

147

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Implied term in all protected tenancies

148

It shall be a condition of a protected tenancy of a dwelling-house that the tenant shall afford to the landlord access to the dwelling-house and all reasonable facilities for executing therein any repairs which the landlord is entitled to execute.

Supplemental

Powers of local authorities for purposes of giving information

149

• (1) Any local authority to which this section applies shall have power—

• (a) to publish information, for the assistance of landlords and tenants and others, as to their rights and duties under—

• (i) sections 4 to 7 (provision of rent books) and sections 18 to 30 (service charges) of the Landlord and Tenant Act 1985,

• (ii) the Protection from Eviction Act 1977,

• (iii) Part II . . . , of the Housing Act 1980;

• (iv) this Act,

• (v) Chapters I to III of Part I of the Housing Act 1988

and as to the procedure for enforcing those rights or securing the performance of those duties, and

• (b) to publish information, for the assistance of owners and occupiers of dwelling-houses and others, as to their rights and duties under the Rent (Agriculture) Act 1976 and as to the procedure for enforcing those rights or securing the performance of those duties, and

• (c) to make any such information as is mentioned in paragraph (a) or (b) above available in any other way, and

• (d) to furnish particulars as to the availability, extent and character of alternative accommodation.

• (2) This section applies to the following local authorities:—

• (a) councils of districts , councils of counties in England in which there are no districts having district councils and councils of London boroughs;

• (aa) councils of Welsh counties and county boroughs;

• (b) the Common Council of the City of London; and

• (c) the Council of the Isles of Scilly.

Prosecution of offences

150

• (1) Offences under this Act are punishable summarily.

• (2) Proceedings for an offence under this Act . . . may be instituted by any local authority to which section 149 of this Act applies.

Service of notices on landlord's agents

151

• (1) Any document required or authorised by this Act to be served by the tenant of a dwelling-house on the landlord thereof shall be deemed to be duly served on him if it is served—

• (a) on any agent of the landlord named as such in the rent book or other similar document; or

• (b) on the person who receives the rent of the dwelling-house.

• (2) Where a dwelling-house is subject to a regulated tenancy, subsection (1) above shall apply also in relation to any document required or authorised by this Act to be served on the landlord by a person other than the tenant.

• (3) If for the purpose of any proceedings (whether civil or criminal) brought or intended to be brought under this Act, any person serves upon any such agent or other person as is referred to in paragraph (a) or paragraph (b) of subsection (1) above a notice in writing requiring the agent or other person to disclose to him the full name and place of abode or place of business of the landlord, that agent or other person shall forthwith comply with the notice.

• (4) If any such agent or other person as is referred to in subsection (3) above fails or refuses forthwith to comply with a notice served on him under that subsection, he shall be liable to a fine not exceeding level 4 on the standard scale, unless he shows to the satisfaction of the court that he did not know, and could not with reasonable diligence have ascertained, such of the facts required by the notice to be disclosed as were not disclosed by him.

• (5) So far as this section relates to Part V or IX or sections 103 to 107, of this Act, references to a landlord and to a tenant shall respectively include references to a lessor and to a lessee as defined by section 85 of this Act.

Interpretation

152

• (1) In this Act, except where the context otherwise requires,—

• “the appropriate day” has the meaning assigned to it by section 25(3) of this Act;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . “landlord” includes any person from time to time deriving title under the original landlord and also includes, in relation to any dwelling-house, any person other than the tenant who is, or but for Part VII of this Act would be, entitled to possession of the dwelling-house;

• “let” includes “sublet”;

• “long tenancy” means a tenancy granted for a term of years certain exceeding 21 years, whether or not subsequently extended by act of the parties or by any enactment;

• “protected furnished tenancy”, “regulated furnished tenancy” and “statutory furnished tenancy” mean a protected or, as the case may be, regulated or statutory tenancy—

• (a) under which the dwelling-house concerned is bona fide let at a rent which includes payments in respect of furniture, and

• (b) in respect of which the amount of rent which is fairly attributable to the use of furniture, having regard to the value of that use to the tenant, forms a substantial part of the whole rent;

• “protected tenant” and “protected tenancy” shall be construed in accordance with section 1 of this Act;

• “rates” includes water rates and charges but does not include an owner’s drainage rate as defined in section 63(2)(a) of the Land Drainage Act 1976;

• “rateable value” shall be construed in accordance with section 25 of this Act;

• “regulated tenancy” shall be construed in accordance with section 18 of this Act;

• “rent tribunal” has the meaning given by section 76(1) of this Act;

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

• “restricted contract” shall be construed in accordance with section 19 of this Act;

• “secure contract” has the same meaning as in the Renting Homes (Wales) Act 2016 (anaw 1) (see section 8 of that Act);

• “statutory tenant” and “statutory tenancy” shall be construed in accordance with section 2 of this Act;

• “tenant” includes statutory tenant and also includes a sub-tenant and any person deriving title under the original tenant or sub-tenant;

• “tenancy” includes “sub-tenancy”;

• “tenancy at a low rent” has the meaning assigned to it by section 5 of this Act.

• (2) 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.

• (3) Section 239 of the Renting Homes (Wales) Act 2016 (anaw 1) abolishes, in relation to Wales, restricted contracts and protected shorthold tenancies and provides for the cessation of certain protected and statutory tenancies.

Application to Isles of Scilly

153

• (1) With the exception of Part V, and sections 102A to 106A, of this Act (which do not apply to the Isles of Scilly) this Act applies to the Isles subject to such exceptions, adaptations and modifications as the Secretary of State may by order direct.

• (2) The power to make an order under this section shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

• (3) An order under this section may be varied or revoked by a subsequent order.

Application to Crown property

154

• (1) Subject to sections 13 and 19(5)(b) of this Act this Act shall apply in relation to premises in which there subsists, or at any material time subsisted, a Crown interest as it applies in relation to premises in which no such interest subsists or ever subsisted.

• (2) In this section “Crown interest” means an interest which belongs to Her Majesty in right of the Crown or of the Duchy of Lancaster or to the Duchy of Cornwall, or to a government department, or which is held in trust for Her Majesty for the purposes of a government department.

Modifications, amendments, transitional provisions, repeals etc.

155

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) Subject to subsection (3) below, the enactments specified in Schedule 23 to this Act shall have effect subject to the amendments specified in that Schedule.

• (3) The savings and transitional provisions in Schedule 24 to this Act shall have effect.

• (4) The inclusion in this Act of any express saving, transitional provision or amendment shall not be taken as prejudicing the operation of sections 16(1) and 17(2) of the Interpretation Act 1978 (which relates to the effect of repeals).

• (5) Subject to subsection (3) above, the enactments specified in Schedule 25 to this Act (which include enactments which were spent before the passing of this Act) are hereby repealed to the extent specified in the third column of that Schedule.

Short title, commencement and extent

156

• (1) This Act may be cited as the Rent Act 1977.

• (2) This Act shall come into force on the expiry of the period of one month beginning with the date on which it is passed.

• (3) This Act does not extend to Scotland or Northern Ireland.

SCHEDULE 1

Part I — Statutory Tenants by Succession

1

Paragraph 2 . . . below shall have effect, subject to section 2(3) of this Act, for the purpose of determining who is the statutory tenant of a dwelling-house by succession after the death of the person (in this Part of this Schedule referred to as “the original tenant”) who, immediately before his death, was a protected tenant of the dwelling-house or the statutory tenant of it by virtue of his previous protected tenancy.

2

The surviving spouse, or surviving civil partner, (if any) of the original tenant, if residing in the dwelling-house immediately before the death of the original tenant, shall after the death be the statutory tenant if and so long as he or she occupies the dwelling-house as his or her residence.

• (2) For the purposes of this paragraph, a person who was living with the original tenant as if they were a married couple or civil partners is to be treated as the spouse or civil partner of the original tenant.

• (3) If, immediately after the death of the original tenant, there is, by virtue of sub-paragraph (2) above, more than one person who fulfils the conditions in sub-paragraph (1) above, such one of them as may be decided by agreement or, in default of agreement, by the county court shall for the purposes of this paragraph be treated as the tenant’s spouse or civil partner.

3

• (1) Where paragraph 2 above does not apply, but a person who was a member of the original tenant’s family was residing with him in the dwelling-house at the time of and for the period of 2 years immediately before his death then, after his death, that person or if there is more than one such person such one of them as may be decided by agreement, or in default of agreement by the county court, shall —

• (a) in the case of a dwelling-house in England, be entitled to an assured tenancy of the dwelling-house by succession, or

• (b) in the case of a dwelling-house in Wales, be entitled to a secure contract of the dwelling-house by succession.

• (2) If the original tenant died within the period of 18 months beginning on the operative date, then, for the purposes of this paragraph, a person who was residing in the dwelling-house with the original tenant at the time of his death and for the period which began 6 months before the operative date and ended at the time of his death shall be taken to have been residing with the original tenant for the period of 2 years immediately before his death.

4

A person who becomes the statutory tenant of a dwelling-house by virtue of paragraph 2 . . . above is in this Part of this Schedule referred to as “the first successor”.

5

If, immediately before his death, the first successor was still a statutory tenant, paragraph 6 below shall have effect, for the purpose of determining who is entitled—

• (a) in the case of a dwelling-house in England, to an assured tenancy of the dwelling-house by succession, or

• (b) in the case of a dwelling-house in Wales, to a secure contract of the dwelling-house by succession after the death of the first successor.

6

• (1) Where a person who—

• (a) was a member of the original tenant’s family immediately before that tenant’s death, and

• (b) was a member of the first successor’s family immediately before the first successor’s death,

was residing in the dwelling-house with the first successor at the time of, and for the period of 2 years immediately before, the first successor’s death, that person or, if there is more than one such person, such one of them as may be decided by agreement or, in default of agreement, by the county court shall be entitled—

• (i) in the case of a dwelling-house in England, to an assured tenancy of the dwelling-house by succession , or

• (ii) in the case of a dwelling-house in Wales, to a secure contract of the dwelling-house by succession.

• (2) If the first successor died within the period of 18 months beginning on the operative date, then, for the purposes of this paragraph, a person who was residing in the dwelling-house with the first successor at the time of his death and for the period which began 6 months before the operative date and ended at the time of his death shall be taken to have been residing with the first successor for the period of 2 years immediately before his death.

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

Paragraphs 5 to 8 above do not apply where the statutory tenancy of the original tenant arose by virtue of section 4 of the Requisitioned Houses and Housing (Amendment) Act 1955 or section 20 of the Rent Act 1965.

10

• (1) Where after a succession the successor becomes the tenant of the dwelling-house by the grant to him of another tenancy, “the original tenant” and “the first successor” in this Part of this Schedule shall, in relation to that other tenancy, mean the persons who were respectively the original tenant and the first successor at the time of the succession, and accordingly—

• (a) if the successor was the first successor, and, immediately before his death he was still the tenant (whether protected or statutory), paragraph 6 above shall apply on his death,

• (b) if the successor was not the first successor, no person shall become a statutory tenant on his death by virtue of this Part of this Schedule.

• (2) Sub-paragraph (1) above applies—

• (a) even if a successor enters into more than one other tenancy of the dwelling-house, and

• (b) even if both the first successor and the successor on his death enter into other tenancies of the dwelling-house.

• (3) In this paragraph “succession” means the occasion on which a person becomes the statutory tenant of a dwelling-house by virtue of this Part of this Schedule and “successor” shall be construed accordingly.

• (4) This paragraph shall apply as respects a succession which took place before 27th August 1972 if, and only if, the tenancy granted after the succession, or the first of those tenancies, was granted on or after that date, and where it does not apply as respects a succession, no account should be taken of that succession in applying this paragraph as respects any later succession.

11

• (1) Paragraphs 5 to 8 above do not apply where—

• (a) the tenancy of the original tenant was granted on or after the operative date within the meaning of the Rent (Agriculture) Act 1976, and

• (b) both that tenancy and the statutory tenancy of the first successor were tenancies to which section 99 of this Act applies.

• (2) If the tenants under both of the tenancies falling within sub-paragraph (1)(b) above were persons to whom paragraph 7 of Schedule 9 to the Rent (Agriculture) Act 1976 applies, the reference in sub-paragraph (1)(a) above to the operative date shall be taken as a reference to the date of operation for forestry workers within the meaning of that Act.

Part II — Relinquishing Tenancies and Changing Tenants

Payments demanded by statutory tenants as a condition of giving up possession

12

• (1) A statutory tenant of a dwelling-house who, as a condition of giving up possession of the dwelling-house, asks for or receives the payment of any sum, or the giving of any other consideration, by any person other than the landlord, shall be guilty of an offence.

• (2) Where a statutory tenant of a dwelling-house requires that furniture or other articles shall be purchased as a condition of his giving up possession of the dwelling-house, the price demanded shall, at the request of the person on whom the demand is made, be stated in writing, and if the price exceeds the reasonable price of the articles the excess shall be treated, for the purposes of sub-paragraph (1) above, as a sum asked to be paid as a condition of giving up possession.

• (3) A person guilty of an offence under this paragraph shall be liable to a fine not exceeding level 3 on the standard scale.

• (4) The court by which a person is convicted of an offence under this paragraph may order the payment—

• (a) to the person who made any such payment, or gave any such consideration, as is referred to in sub-paragraph (1) above, of the amount of that payment or the value of that consideration, or

• (b) to the person who paid any such price as is referred to in sub-paragraph (2) above, of the amount by which the price paid exceeds the reasonable price.

Change of statutory tenant by agreement

13

• (1) Where it is so agreed in writing between a statutory tenant (“the outgoing tenant”) and a person proposing to occupy the dwelling (“the incoming tenant”), the incoming tenant shall be deemed to be the statutory tenant of the dwelling as from such date as may be specified in the agreement (“the transfer date”).

• (2) Such an agreement shall not have effect unless the landlord is a party thereto, and, if the consent of any superior landlord would have been required to an assignment of the previous contractual tenancy, the agreement shall not have effect unless the superior landlord is a party thereto.

• (3) If the outgoing tenant is the statutory tenant by virtue of his previous protected tenancy, then, subject to sub-paragraph (6) below, this Act shall have effect, on and after the transfer date, as if the incoming tenant had been a protected tenant and had become the statutory tenant by virtue of his previous protected tenancy.

• (4) Subject to sub-paragraphs (5) and (6) below, if the outgoing tenant is a statutory tenant by succession, then, on and after the transfer date—

• (a) this Act shall have effect as if the incoming tenant were a statutory tenant by succession, and

• (b) the incoming tenant shall be deemed to have become a statutory tenant by virtue of that paragraph of Part I of this Schedule by virtue of which the outgoing tenant became (or is deemed to have become) a statutory tenant.

• (5) If the outgoing tenant is a statutory tenant by succession, the agreement may provide that, notwithstanding anything in sub-paragraph (4) above, on and after the transfer date, this Act shall have effect, subject to sub-paragraph (6) below, as if the incoming tenant had been a protected tenant and had become the statutory tenant by virtue of his previous protected tenancy.

• (6) Unless the incoming tenant is deemed, by virtue of sub-paragraph (4)(b) above, to have become a statutory tenant by virtue of paragraph 6 or 7 of Part I of this Schedule, paragraphs 5 to 7 of that Part shall not apply where a person has become a statutory tenant by virtue of this paragraph.

• (7) In this paragraph “the dwelling” means the aggregate of the premises comprised in the statutory tenancy of the outgoing tenant.

No pecuniary consideration to be required on change of tenant under paragraph 13

14

• (1) Any person who requires the payment of any pecuniary consideration for entering into such an agreement as is referred to in paragraph 13(1) above shall be liable to a fine not exceeding level 3 on the standard scale.

• (2) The court by which a person is convicted of an offence under sub-paragraph (1) above may order the amount of the payment to be repaid by the person to whom it was paid.

• (3) Without prejudice to sub-paragraph (2) above, the amount of any such payment as is referred to in sub-paragraph (1) above shall be recoverable by the person by whom it was made either by proceedings for its recovery or, if it was made to the landlord by a person liable to pay rent to the landlord, by deduction from any rent so payable.

• (4) Notwithstanding anything in sub-paragraph (1) above, if apart from this paragraph he would be entitled to do so, the outgoing tenant may require the payment by the incoming tenant—

• (a) of so much of any outgoings discharged by the outgoing tenant as is referable to any period after the transfer date;

• (b) of a sum not exceeding the amount of any expenditure reasonably incurred by the outgoing tenant in carrying out any structural alteration of the dwelling or in providing or improving fixtures therein, being fixtures which, as against the landlord, the outgoing tenant is not entitled to remove;

• (c) where the outgoing tenant became a tenant of the dwelling by virtue of an assignment of the previous protected tenancy, of a sum not exceeding any reasonable amount paid by him to his assignor in respect of expenditure incurred by the assignor, or by any previous assignor of the tenancy, in carrying out any such alteration or in providing or improving any such fixtures as are mentioned in paragraph (b) above; or

• (d) where part of the dwelling is used as a shop or office, or for business, trade or professional purposes, of a reasonable amount in respect of any goodwill of the business, trade or profession, being goodwill transferred to the incoming tenant in connection with his becoming a statutory tenant of the dwelling or accruing to him in consequence thereof.

• (5) In this paragraph “outgoing tenant”, “incoming tenant”, “the transfer date” and “the dwelling” have the same meanings as in paragraph 13 above.

SCHEDULE 2

Part I — Provisions for Determining Application of Section 12

1

In determining whether the condition in section 12(1)(c) of this Act is at any time fulfilled with respect to a tenancy, there shall be disregarded—

• (a) any period of not more than 28 days beginning with the date on which the interest of the landlord under the tenancy becomes vested at law and in equity in an individual who, during that period, does not occupy as his residence another dwelling-house which forms part of the building or, as the case may be, flat concerned;

• (b) if, within a period falling within paragraph (a) above, the individual concerned notifies the tenant in writing of his intention to occupy as his residence another dwelling house in the building or, as the case may be, flat concerned, the period beginning with the date on which the interest of the landlord under the tenancy becomes vested in that individual as mentioned in that paragraph and ending—

• (i) at the expiry of the period of 6 months beginning on that date, or

• (ii) on the date on which that interest ceases to be so vested, or

• (iii) on the date on which the condition in section 12(1)(c) again applies,

whichever is the earlier; and

• (c) any period of not more than 2 years beginning with the date on which the interest of the landlord under the tenancy becomes, and during which it remains, vested—

• (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (ii) in trustees as such; or

• (iii) by virtue of section 9 of the Administration of Estates Act 1925, in the Probate Judge or the Public Trustee.

2

During any period when—

• (a) in the interest of the landlord under the tenancy referred to in section 12(1) is vested in trustees as such, and

• (b) that interest is . . . held on trust for any person who occupies as his residence a dwelling-house which forms part of the building or, as the case may be, flat referred to in section 12(1)(a),

the condition in section 12(1)(c) shall be deemed to be fulfilled and, accordingly, no part of that period shall be disregarded by virtue of paragraph 1 above.

3

Throughout any period which, by virtue of paragraph 1 above, falls to be disregarded for the purpose of determining whether the condition in section 12(1)(c) is fulfilled with respect to a tenancy, no order shall be made for possession of the dwelling-house subject to that tenancy, other than an order which might be made if that tenancy were or, as the case may be, had been a regulated tenancy.

4

For the purposes of section 12, a building is a purpose-built block of flats if as constructed it contained, and it contains, 2 or more flats; and for this purpose “flat” means a dwelling-house which—

• (a) forms part only of a building; and

• (b) is separated horizontally from another dwelling-house which forms part of the same building.

5

For the purposes of section 12, a person shall be treated as occupying a dwelling-house as his residence if, so far as the nature of the case allows, he fulfills the same conditions as, by virtue of section 2(3) of this Act, are required to be fulfilled by a statutory tenant of a dwelling-house.

Part II — Tenancies ceasing to fall within section 12

Tenancies ceasing to fall within section 12

6

• (1) In any case where—

• (a) a tenancy which, by virtue only of section 12, was precluded from being a protected tenancy ceases to be so precluded and accordingly becomes a protected tenancy, and

• (b) before it became a protected tenancy a rent was registered for the dwelling concerned under Part V of this Act,

the amount which is so registered shall be deemed to be registered under Part IV of this 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 day the tenancy becomes a protected tenancy.

• (2) Section 67(3) of this Act shall not apply to an application for the registration under Part IV of a rent different from that which is deemed to be registered as mentioned in sub-paragraph (1) above.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) If, immediately before a tenancy became a protected tenancy as mentioned in sub-paragraph (1)(a) above, the rates in respect of the dwelling-house concerned were borne as mentioned in subsection (3) of section 79 of this Act and the fact that they were so borne was noted as required by that subsection, then, in the application of Part IV in relation to the protected tenancy, section 71(2) of this Act shall be deemed to apply.

7

If, in a case where a tenancy becomes a protected tenancy as mentioned in sub-paragraph (1)(a) above—

• (a) a notice to quit had been served in respect of the dwelling concerned before the date on which the tenancy became a protected tenancy, and

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

• (c) that period has not expired before that date,

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

SCHEDULES 3—4.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART I — 1956 Rateable Values

1

• (1) The reference in section 17(1)(a) of this Act to the rateable value of a dwelling-house on 7th November 1956 shall be construed—

• (a) if the dwelling-house was a hereditament for which a rateable value was on that date shown in the valuation list, as a reference to the rateable value of the hereditament, or where that value differed from the net annual value, the net annual value thereof, as shown in the valuation list on that date ;

• (b) if the dwelling-house formed part only of such a hereditament, as a reference to such proportion of the said rateable value or net annual value as may be or have been agreed in writing between the landlord and tenant or determined by the county court;

• (c) if the dwelling-house consisted of or formed part of more than one such hereditament, as a reference to the aggregate of the rateable values (ascertained in accordance with paragraphs (a) and (b) above) of those hereditaments or parts.

• (2) Any apportionment of rateable value made by the county court in a case falling within sub-paragraph (1)(b) above shall be final.

2

Subject to paragraph 3 below, where, after 7th November 1956, the valuation list was altered so as to vary the rateable value of a hereditament, and the alteration—

• (a) had effect from a date not later than 7th November 1956, and

• (b) was made in pursuance of a proposal made before 1st April 1957,

the rateable value on 7th November 1956 of any dwelling-house consisting of or wholly or partly comprised in that hereditament shall be ascertained as if the amount of the rateable, or as the case may be the net annual, value of that hereditament shown in the valuation list on 7th November 1956 had been the amount of that value shown in the list as altered.

3

Where such a proposal as is referred to in paragraph 2 above was pending on 6th July 1957 and—

• (a) the proposal was for an alteration in the valuation list reducing the rateable value of the dwelling-house, but

• (b) that rateable value on 31st March 1956 was such that, if it had remained unaltered, the rateable value of the dwelling-house on 7th November 1956 would have exceeded the relevant limit specified in section 17(1)(a) of this Act,

then any alteration in the rateable value of the dwelling-house which was made in pursuance of the proposal shall be disregarded in determining whether that rateable value on 7th November 1956 did or did not exceed the relevant limit in section 17(1)(a).

4

Where—

• (a) the tenant or any previous tenant under a tenancy or a statutory tenancy which began before 6th July 1957 made or contributed to the cost of an improvement on the premises comprised in the protected or statutory tenancy; and

• (b) the improvement was made before 7th November 1956 by the execution of works amounting to structural alteration, extension or addition,

the rateable value of the premises as ascertained in accordance with paragraphs 1 to 3 above shall be taken to be reduced by such amount, if any, as may have been agreed or determined in accordance with Part III of Schedule 5 to the Rent Act 1957 (which, in certain cases, provided for a reduction of rateable value on account of certain improvements if the tenant served the necessary notice on the landlord not later than 6 weeks after the commencement of that Act).

5

If at the time of the making of such an agreement relating to the rateable value of a dwelling-house as is mentioned in paragraph 1(b) above, the landlord was himself a tenant, then, unless he was a tenant under a tenancy having a term with more than 7 years to run at that time, the agreement shall not have effect for the purposes of this Act except with the concurrence in writing of his immediate landlord.

PART II — 1939 Rateable Values

6

This Part of this Schedule shall have effect in determining the 1939 rateable value of the dwelling-house for the purposes of section 17(2)(a) of this Act.

7

If, on 6th April 1939, a rateable value was shown in the valuation list then in force with respect to a dwelling-house within the area which constituted the administrative county of London, the 1939 rateable value of that dwelling-house means that rateable value or, if the net annual value of the dwelling-house as shown in that list differed from the rateable value, that net annual value.

8

If, on 1st April 1939, a rateable value was shown in the valuation list then in force with respect to a dwelling-house outside the area which constituted the administrative county of London, the 1939 rateable value of that dwelling-house means that rateable value or, if the net annual value of the dwelling-house as shown in that list differed from the rateable value, that net annual value.

9

In relation to a dwelling-house which was first assessed after 1st April 1939 or, if it is within the area which constituted the administrative county of London, after 6th April 1939, the 1939 rateable value means the rateable value shown in the valuation list with respect to the dwelling-house on the day on which the dwelling-house was first assessed or, if the net annual value as shown in the valuation list in force on that day differed from the rateable value, that net annual value.

10

Where, for the purpose of determining the 1939 rateable value of any dwelling-house, it is necessary to apportion the 1939 rateable value of the property in which that dwelling-house is comprised, the county court may, on application by either party, make such apportionment as seems just and the decision of a county court (whether given before or after the commencement of this Act) as to the amount to be apportioned to the dwelling-house shall be final.

SCHEDULE 4

1

• (1) Subject to this Schedule, the 1956 gross value of any dwelling, for the purposes of Part II of this Act, is the gross value thereof as shown in the valuation list on 7th November 1956 or, where the dwelling forms part only of a hereditament shown in that list, such proportion of the gross value shown in that list for that hereditament as may be or have been agreed in writing between the landlord and the tenant or be determined by the county court.

• (2) Any apportionment of gross value determined by the county court for the purposes of Part II of this Act shall be final.

2

Where a dwelling is or forms part of a hereditament for which no gross value was shown in the valuation list on 7th November 1956, paragraph 1 above shall have effect in relation to the dwelling as if, for the references to that date, there were substituted references to the first subsequent date on which a gross value for that hereditament was shown in the valuation list.

3

If, in pursuance of a proposal made before 1st April 1957, or made on the ground of a change in the occupier or in the circumstances of occupation, the gross value shown for a hereditament in the valuation list was varied after 7th November 1956, then, as regards any rental periods (whether beginning before or after the variation) the 1956 gross value of a dwelling which is or forms part of that hereditament shall be ascertained by reference to the gross value as so varied.

4

• (1) Where a dwelling is or forms part of a hereditament the gross value of which, as shown in the valuation list, was arrived at after such a reduction as was provided for in section 4(3) of the Valuation for Rating Act 1953 (which related to certain hereditaments consisting partly of premises used wholly for the purposes of a private dwelling and partly of other premises) that gross value shall be deemed, for the purposes of Part II of this Act, to be further reduced by four-sevenths of so much thereof as is attributable to that part of the hereditament which was not used wholly for the purposes of a private dwelling or private dwellings ; and a certificate of the valuation officer shall be conclusive evidence of the amount so attributable.

• (2) In sub-paragraph (1) above " the valuation officer", in relation to a valuation list, means any officer of the Commissioners of Inland Revenue who was for the time being appointed by the Commissioners to be the valuation officer or one of the valuation officers, or to be the deputy valuation officer or one of the deputy valuation officers, in relation to that fist.

5

• (1) Subject to sub-paragraph (2) below, where a dwelling consists of or forms part of more than one hereditament, the 1956 gross value of the dwelling shall be ascertained by determining the 1956 gross value of each hereditament or part as if it were a separate dwelling and aggregating the gross values so determined.

• (2) In determining, for the purposes of this paragraph, the 1956 gross value of any hereditament, that gross value shall be taken to be reduced by four-sevenths if it was ascertained in accordance with the definition of gross value in section 68 of the Rating and Valuation Act 1925.

6

Where a tenant or any previous tenant under a controlled tenancy which began before 6th July 1957 made or contributed to the cost of an improvement on the premises comprised in the tenancy and the improvement was made before 7th November 1956 by the execution of works amounting to structural alteration, extension or addition, the 1956 gross value of the premises shall be reduced by such amount, if any, as may have been agreed or determined in accordance with Part III of Schedule 5 to the Rent Act 1957 (which, in certain cases, provided for a reduction in the 1956 gross value on account of certain improvements if the tenant served the necessary notice on the landlord not later than 6 weeks after the commencement of that Act).

7

If, at the time of the making of such an agreement as is referred to in paragraph 1 above, the landlord was himself a tenant, then, unless he was tenant under a tenancy having a term with more than 7 years to run at that time, the agreement shall not have effect for the purposes of Part II of this Act, except with the concurrence in writing of his immediate landlord.

8

In this Schedule the expression " valuation list" does not include any new valuation list which came into force at any time after July 1957.

SCHEDULE 5

1

For the purposes of this Act, the amount of rates for any rental period shall be taken, subject to this Schedule, to be an amount which bears to the total rates payable during the relevant rating period the same proportion as the length of the rental period bears to the length of the relevant rating period.

2

In this Schedule “the relevant rating period”, in relation to a rental period, means the rating period during which the rent for that rental period is payable.

3

The amount of the rates for any rental period which precedes the making, by the authority levying the rates, of their first demand for, or for an instalment of, the rates for the relevant rating period shall be calculated on the basis that the rates for that rating period will be the same as for the last preceding rating period.

4

• (1) On the making, by the authority levying the rates, of their first such demand, and on the making by them of any subsequent such demand, the amount of the rates for any rental period shall if necessary be recalculated on the basis that the rates for the relevant rating period will be such as appears from the information given in the demand and any previous demands.

• (2) Any such recalculation shall not affect the ascertainment of the rates for any rental period beginning more than 6 weeks before the date of the service of the demand giving rise to the recalculation.

5

If, as a result of the settlement of a proposal, the rates payable for the relevant rating period are decreased, the amount of the rates for a rental period shall be recalculated so as to give effect to the decrease; but any such recalculation shall not affect the ascertainment of the rates for any rental period beginning more than 6 weeks before the date of the settlement of the proposal.

6

In computing the rates for any rental period for the purposes of this Schedule, any discount, and any allowance made under any of the enactments relating to allowances given where rates are paid by the owner instead of by the occupier, shall be left out of account, and accordingly those rates shall be computed as if no such discount or allowance had fallen to be, or had been, allowed or made.

SCHEDULE 6

PART I — Adjustment of Rent Limit

1

• (1) This Part of this Schedule shall have effect in ascertaining the rent limit by reference to the 1956 gross value.

• (2) If under the terms of the tenancy the tenant is responsible for all repairs, the appropriate factor is four-thirds.

• (3) If under the terms of the tenancy the tenant is responsible for some but not all repairs, the appropriate factor is such number less than 2 but greater than four-thirds as may be or have been agreed in writing between the landlord and the tenant or determined by the county court.

2

• (1) In paragraph 1 above the expression " repairs " does not include internal decorative repairs, but if the landlord is responsible for internal decorative repairs under the terms of the tenancy, or neither the landlord nor the tenant is responsible therefor under the terms of the tenancy but the landlord elects to be treated for the purposes of Part II of this Act as responsible therefor,—

• (a) " seven-thirds" and " five-thirds" shall be substituted respectively for " 2 " and "four-thirds" in section 27 of this Act and in paragraph 1 above, and

• (b) in the case of an election under this paragraph the question whether the rent limit applicable to any rental period beginning after the election is to be ascertained under section 27(1) or (2) of this Act shall be determined as if the election had always had effect.

• (2) An election under this paragraph shall be made by notice in the prescribed form served on the tenant and shall continue in force notwithstanding any change in the person of the landlord.

• (3) An election under this paragraph shall not have effect if the tenant dissents from it in writing within one month of the service on the tenant of the notice under sub-paragraph (2) above.

• (4) If the tenant duly dissents, Part VII of this Act shall have effect as if, in relation to the dwelling in question, the circumstances specified in Case 1 in Schedule 15 to this Act included the case where the tenant has failed to keep the dwelling in a reasonable state of internal decorative repair, having due regard to its age, character and locality.

PART II — Abatement for Disrepair

Notification of disrepair to landlord

3

This Part of this Schedule shall have effect where the tenant under a controlled tenancy serves on the landlord a notice in the prescribed form stating that—

• (a) the dwelling or any part of it is in disrepair by reason of defects specified in the notice, and

• (b) those defects ought reasonably to be remedied, having due regard to the age, character and locality of the dwelling,

and requesting the landlord to remedy them.

Landlord's undertaking to repair and certificates of disrepair

4

• (1) If, on the expiry of 6 weeks from the service of a notice under paragraph 3 above, any of the defects specified in the notice remain unremedied, then, unless the landlord has given an undertaking in the prescribed form to remedy those defects or such of them as the tenant may agree in writing to accept as sufficient, the tenant may in the prescribed form apply to the local authority for a certificate of disrepair.

• (2) Any application under this paragraph shall be accompanied by a copy of the notice served on the landlord.

• (3) Where an application under this paragraph is made to a local authority and the local authority are satisfied—

• (a) that the dwelling or any part of it is in disrepair by reason of defects specified in the notice served on the landlord and,

• (b) that all or any of those defects ought reasonably to be remedied, having due regard to the age, character and locality of the dwelling,

they shall issue to the tenant a certificate of disrepair accordingly.

• (4) Any such certificate of disrepair shall be in the prescribed form and shall specify the defects as to which the local authority are satisfied as mentioned in sub-paragraph (3) above, stating that the local authority are so satisfied.

• (5) If, on an application by the tenant, the county court is satisfied, with respect to any defects, that the local authority have failed to issue a certificate of disrepair which ought to have been issued, the court shall direct the authority to proceed on the footing that, in relation to those defects, they are satisfied as to the matters specified in sub-paragraph (3) above ; and if, on an application by the tenant, the county court is satisfied that any defect not specified in a certificate of disrepair ought to have been specified therein, the court shall order that the defect shall be deemed to have been specified in the certificate.

• (6) The local authority shall not be concerned to inquire into any obligation as between a landlord and a tenant or into the origin of any defect; but if, on an application by the landlord, the county court is satisfied, with respect to any defect specified in a certificate of disrepair, that it is one for which the tenant is responsible, the court shall cancel the certificate with respect to that defect.

• (7) If, on an application by the landlord, the county court is satisfied with respect to any defect specified in a certificate of disrepair that it ought not to have been so specified, the court shall cancel the certificate with respect to that defect.

• (8) Where a certificate of disrepair is cancelled under this paragraph with respect to all the defects specified therein, it shall be deemed never to have had effect; and where it is so cancelled with respect to some only of the defects specified therein, it shall be deemed never to have had those defects specified therein.

5

• (1) Where, after the issue of a certificate of disrepair, the landlord applies to the local authority for the cancellation of the certificate on the ground that the defects specified in the certificate have been remedied, the local authority shall serve on the tenant a notice to the effect that, unless an objection from the tenant is received by them within 3 weeks from the service of the notice on the ground that those defects or any of them have not been remedied, they propose to cancel the certificate.

• (2) If no objection is received as mentioned in sub-paragraph (1) above, or if, in the opinion of the local authority, the objection is not justified, they shall cancel the certificate as from the date of the application or such later date as appears to them to be the date on which the defects specified in the certificate were remedied.

• (3) Where the landlord has applied to the local authority for the cancellation of a certificate of disrepair and the authority have not cancelled the certificate, the landlord may apply to the county court, and if on the application the court is satisfied that the certificate ought to have been cancelled by the local authority, the court shall order that the certificate shall cease to have effect as from the date of the order or such earlier date as may be specified in the order.

• (4) Where the local authority have cancelled a certificate of disrepair the tenant may apply to the county court, and if on the application the court is satisfied that the certificate ought not to have been cancelled, the court may order that it shall be deemed not to have been cancelled.

Abatement of rent where certificate issued or undertaking not carried out

6

• (1) Where an application for a certificate of disrepair is granted, any notice of increase served during the period beginning 6 months before the date of the application and ending when the certificate ceases to be in force shall have no effect with respect to any rental period beginning while the certificate is in force, except in so far as it specifies an increase authorised by section 29, 31 or 32 of this Act.

• (2) Where a certificate of disrepair is issued, the appropriate factor applicable to any rental period beginning while the certificate is in force shall be four-thirds and the rent limit shall be ascertained under subsection (1) of section 27 of this Act, notwithstanding anything in subsection (3) of that section or section 145(4) of this Act.

• (3) A notice of increase served while a certificate of disrepair is in force shall be void unless it contains a statement that it will not take effect while the certificate is in force, except in so far as the increase specified in it is authorised by section 29, 31 or 32 of this Act.

• (4) Without prejudice to sub-paragraphs (1) to (3) above, but subject to sub-paragraph (5) below, the tenant shall be entitled to withhold rent otherwise recoverable for rental periods beginning while the certificate of disrepair continues in force up to an aggregate amount equal to the aggregate amount of rent for rental periods which began—

• (a) on or after the date of the application for the certificate of disrepair, and

• (b) before the granting thereof,

being rent which would have been made irrecoverable by sub-paragraphs (1) to (3) above if the certificate had been in force throughout those rental periods.

• (5) The amount of rent withheld for any rental period by virtue of sub-paragraph (4) above shall not exceed the amount of rent made irrecoverable by sub-paragraphs (1) to (3) above for the first rental period beginning while the certificate is in force.

• (6) Where under paragraph 4 above an application is made to the court for the cancellation of a certificate of disrepair with respect to all the defects specified therein, and the application is made within 3 weeks after the issue of the certificate, the rent recoverable for any rental period beginning while proceedings on the application are pending shall, until those proceedings are concluded, be deemed to be the same as if the certificate had not been issued.

7

• (1) If on the expiry of 6 months from the giving of such an undertaking as is mentioned in paragraph 4 above, any defects to which the undertaking relates remain unremedied, the same consequences shall follow as if a certificate of disrepair had then been issued and had continued in force until the remedying of the defects, and (where the undertaking was given before any application for such a certificate had been made) as if such an application had been made when the undertaking was given.

• (2) Where such an undertaking has been given, the landlord or the tenant may apply to the local authority for a certificate under this sub-paragraph, and the local authority shall certify whether any, and if so which, of the defects to which the undertaking relates remain unremedied.

• (3) A certificate under sub-paragraph (2) above shall in any proceedings be evidence until the contrary is proved of the matters certified.

8

• (1) If a certificate of disrepair is issued to the tenant of a dwelling, and the dwelling, or any part of it which is in disrepair by reason of the defects specified in the certificate, is subject to a sub-tenancy which is a controlled tenancy, then unless a certificate of disrepair in respect of those defects has been issued to the subtenant, the same consequences shall follow as between the tenant and the sub-tenant as if a certificate of disrepair—

• (a) had been issued to the sub-tenant when the certificate was issued to the tenant, and

• (b) had specified the same defects as the certificate issued to the tenant, and

• (c) had been issued on an application made by the sub-tenant when the tenant applied for the certificate issued to him, and

• (d) had continued in force for the same period as that certificate.

• (2) Where paragraph 7(1) above has effect as between the landlord and the tenant, sub-paragraph (1) above shall have effect accordingly as between the tenant and the sub-tenant.

• (3) Nothing in this paragraph shall prejudice the power of the sub-tenant to obtain a certificate of disrepair or the effect of any undertaking given to the sub-tenant.

Rent limit following cancellation of certificate of disrepair in cases to which section 31 applies

9

In a case to which section 31 of this Act applies, upon the cancellation of a certificate of disrepair, the rent limit for a rental period beginning after the cancellation shall be the greater of the following amounts:—

• (a) an amount calculated under section 27 of this Act (disregarding section 31); and

• (b) an amount calculated under that section as if subsection (1)(a) required the multiplication of the 1956 gross value of the dwelling by the reduced factor specified in paragraph 6(2) above and the addition to the figure arrived at of any increase permitted under section 31.

General and supplemental

10

This Part of this Schedule shall apply while a controlled tenancy continues notwithstanding any change in the person of the landlord or the tenant.

11

• (1) The defects which may be specified in a certificate of disrepair shall not include any defects in the state of internal decorative repair unless the landlord is responsible for internal decorative repairs under the terms of the tenancy or is to be treated as responsible therefor by virtue of an election under paragraph 2 above.

• (2) In considering whether or not to issue a certificate of disrepair or what defects to specify in such a certificate, the local authority shall treat the landlord as responsible for internal decorative repairs if the application for a certificate alleges that he is responsible therefor or that he is to be treated as responsible therefor by virtue of an election under paragraph 2 above, but in any other case the local authority shall treat the landlord as not responsible for such repairs.

• (3) Paragraph 4(6) above shall apply in relation to a defect in the state of internal decorative repair as if, for the words "for which the tenant is responsible ", there were substituted " for which the landlord is not responsible and is not to be treated as responsible by virtue of an election under paragraph 2 above ".

12

• (1) On an application to the local authority for a certificate of disrepair or a certificate under paragraph 7(2) above, there shall be paid to the local authority a fee of 12 ½ pence, but where a certificate of disrepair, or a certificate under that paragraph certifying that any defects remain unremedied, is granted to the tenant he shall be entitled to deduct the fee from any subsequent payment of rent to the landlord.

• (2) If a certificate of disrepair is cancelled by the court under paragraph 4 above with respect to all the defects specified in the certificate, any sum deducted under this paragraph may be recovered by the landlord.

• (3) On an application to the local authority for the cancellation of a certificate of disrepair, there shall be paid to the local authority a fee of 121 pence.

13

In the case of a controlled tenancy of a dwelling which forms part of any other premises owned by or under the control of the landlord or a superior landlord,—

• (a) any disrepair of the roof or of any other part of those premises which results, or may result, in disrepair of the dwelling, and

• (b) any disrepair of any staircase or other approach to the dwelling contained in those premises,

shall be treated for the purposes of this Part of this Schedule as if it were disrepair of the dwelling.

14

The local authority shall serve a copy of every certificate of disrepair issued by them on the landlord.

15

• (1) In this Part of this Schedule, references to defects for which the tenant is responsible are references—

• (a) to defects for the remedying of which, as between the landlord and the tenant, the tenant is responsible; or

• (b) to defects which are due to any act, neglect or default of the tenant or any person claiming under him or to any breach by the tenant or such a person of any express agreement.

• (2) In this Part of this Schedule, except where the context otherwise requires, " local authority ", in relation to any premises, means the Council of the district or of the London borough in which the premises are situated or, if they are situated in the City of London, the Common Council of the City of London.

SCHEDULE 7

Special rent limit

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 section 14(1) of the Counter-Inflation Act 1973 (which brought certain tenancies of dwelling-houses with high rateable values within the protection of the Rent Act 1968).

• (2) Subject to 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 this Act which is less than the limit specified in paragraph 2 below, neither section 44(1) nor section 45(2) of this 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 51(4) of this Act.

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

2

• (1) Where, at 22nd March 1973, Article 10 of the Counter-Inflation (Rents) (England and Wales) Order 1972 applied to the rent under the tenancy (to which paragraph 1 above 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 above applies) at 22nd March 1973.

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) above.

• (2) In this paragraph “the previous terms” means the terms of the tenancy (to which paragraph 1 above applies) as at 22nd March 1973, and “the limit” means the limit in paragraph 2 above.

• (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 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 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 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 (5) above 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

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SCHEDULE 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation

1

• (1) In this Schedule—

• " noted amount " means an amount noted under paragraph 2(1) below;

• " period of delay " means, subject to sub-paragraph (2) below, a period of 2 years beginning with the date of registration of a rent, whether before or after the coming into force of this Act;

• " permitted increase " means the amount by which the rent for any period may be increased ;

• " previous rent limit " means, subject to sub-paragraphs (3) and (4) below, the amount which at the date of registration was recoverable by way of rent or would have been so recoverable upon service of a notice or notices of increase;

• " registered ", in relation to a rent, means registered under Part IV of this Act and "registration" shall be construed accordingly;

• " service element " means any amount calculated under paragraph 2 below;

• " services " means services provided by the landlord or a superior landlord;

• " specified sum " means £0.40 per week for a period which falls within the first year of the period of delay and £0.80 per week for a period which falls within the second year.

• (2) In the case of a rent registered on or after 8th March 1974 but before 10th March 1975, the period of delay shall be taken to have begun on the later date.

• (3) Where the rent includes an amount payable in respect of rates, the previous rent limit shall be decreased by the amount so payable, ascertained in accordance with Schedule 5 to this Act.

• (4) Where the rent under a tenancy was rendered partly irrecoverable by an order under section 11 of the Counter-Inflation Act 1973, the previous rent limit is an amount equal to the part of the rent which was recoverable immediately before 10th March 1975.

• (5) An order may substitute for the specified sum, in relation to the first year of the period of delay or the second, or to the whole period, a sum other than the sum mentioned in sub-paragraph (1) above.

• (6) An order under sub-paragraph (5) above shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Service element

2

• (1) Where—

• (a) the registered rent includes a payment in respect of services, and

• (b) the rent is not registered as a variable rent in accordance with section 71(4) of this Act, but

• (c) not less than 5 per cent. of the amount of the registered rent is in the opinion of the rent officer or rent assessment committee fairly attributable to the services,

the amount so attributable shall be noted in the register.

• (2) In the Cases mentioned in the first column of the Table below, the amount of the service element shall be calculated as specified in the second column.

Case	Service element
Case A. A specified amount or proportion was in the previous rent limit attributable to the provision of services, and came to less than the noted amount.	The service element is the difference between the amount or proportion and the noted amount
Case B. No amount or proportion attributable to the provision of services is specified, but an amount less than the noted amount appears to the rent officer or rent assessment committee to have been attributable to such provision.	The service element is the difference between— an amount bearing to the previous rent limit the same proportion as the noted amount bears to the registered rent, and the noted amount.
Case C. No amount appears to the rent officer or rent assessment committee to have been attributable in the previous rent limit to the provision of services.	The service element is the noted amount.

• (3) The amount of the service element shall be recorded in the register, and in Case C above may be recorded by adding to the note under sub-paragraph (1) above a statement that the noted amount is the service element.

General formulae for calculating increases in rent

3

• (1) Subject to sub-paragraph (4) below, the permitted increase is an increase to an amount calculated in accordance with the formula set out in sub-paragraph (2) or (3) below, where—

• PRL is the previous rent limit,

• SE is the service element,

• RR is the registered rent, and

• SS is the specified sum.

• (2) The permitted increase for a period which falls within the first year of the period of delay is an increase to the greater of the following amounts, namely—

• (a) PRL+SE+ 1/3 [RR-(PRL+SE)];

• (b) PRL+SE+SS.

• (3) The permitted increase for a period which falls within the second year of the period of delay is an increase to the greater of the following amounts, namely—

• (a) PRL+SE+ 2/3 [RR-(PRL+SE)];

• (b) PRL+SE+SS.

• (4) The maximum permitted increase by virtue of this Schedule is an increase to the registered rent.

Subsequent registrations

4

• (1) Where the registration of the rent is in a period of delay beginning with an earlier registration—