PART 4Rent
CHAPTER 2Rent variation instigated by landlord's notice
Process by which rent may be varied
31AF1Determination of rent payable
1
Where an order maker is to determine the rent payable under section 25(1) or (as the case may be) 29(1), the determination is to be made on the basis that the rent payable is the lowest of—
a
the proposed rent,
b
the open market rent,
c
where the market difference is more than 6%, the permitted rent.
2
The permitted rent is—
a
where the market difference is less than 24%, the calculated amount,
b
where the market difference is 24% or more, 12% more than the current rent.
3
The calculated amount is the amount (to the nearest £1) determined using the formula—
where—
C is the current rent,
D% is the market difference expressed as a percentage.
4
In this section—
“the proposed rent” means the rent specified in accordance with section 22(2)(a)(i) in the rent-increase notice which prompted the referral,
“the current rent” means the rent payable under the tenancy immediately before the date on which the rent would have been increased in accordance with section 22(4) had a referral to the rent officer not been made,
“the market difference” means the percentage figure (to the nearest two decimal places) determined using the formula—
where—
C is the current rent,
M is the open market rent,
“the open market rent” means the rent determined in accordance with section 32.