Leasehold Reform Act 1967

3 (1) The amount of the rent payable under a regulated tenancy arising by virtue of Part I of the [1954 c. 56.] Landlord and Tenant Act 1954 shall, subject to the provisions of that Act as to initial repairs and subject to the operation (as regards the fixing of a fair rent and otherwise) of the [1965 c. 75.] Rent Act 1965, be such amount as may be agreed between the landlord and the tenant or, in default of agreement, the same amount as the rent last payable under the long tenancy; and accordingly in the Landlord and Tenant Act 1954—

(a) for section 6(1)(b) there shall be substituted—

“(b) had not been a tenancy at a low rent and, except as regards the duration of the tenancy and the amount of the rent, had been a tenancy on the terms agreed or determined in accordance with the next following section and no other terms”; and

(b) in section 7, in subsection (1) after the word " period " there shall be inserted the words " other than the amount of the rent " ,

in subsection (2)(b) for the words (as amended by the [1957 c. 25.] Rent Act 1957) " what is to be the rent " there shall be substituted the words " as regards the rent " and in subsection (3) after the word " means " there shall be inserted the words " proposals as to the rent of the dwelling-house during the period of the statutory tenancy ".

(2) Where the rent payable under a statutory tenancy is arrived at in accordance with sub-paragraph (1) above, then the Rent Act 1965 shall apply with the following adaptations:—

(a) for purposes of section 3(3)(a) (under which the rent payable under one regulated tenancy may impose a limit on the rent payable under a later one) the tenancy shall be disregarded;

(b) section 5 (under which the rent payable for a statutory period of a tenancy is not to exceed that payable for the last contractual period) shall not apply ;

(c) section 6 (which provides for variations of rent in respect of changes in the burden on the landlord for rates, provision of services etc.) shall apply only if the rent is one arrived at by agreement, and shall then apply as if references to the last contractual period were references to the first statutory period.