Rent Act 1974

Supplementary

11 Rent allowances

(1) On and after such day as the Secretary of State may by order made by statutory instrument appoint, so much of Part II of the [1972 c. 47.] Housing Finance Act 1972 (rent rebates and rent allowances) as requires that, in order to qualify for an allowance, a person occupying a dwelling under a Part VI letting must be a qualified person, within the meaning of section 19(12) of that Act, shall cease to have effect.

(2) The proviso to subsection (1) of section 25 of the Housing Finance Act 1972 (which, in the case of certain furnished lettings, determines the rent which is eligible to be met by a rebate or an allowance for the purposes of Schedule 3 to that Act) shall cease to have effect on the commencement date.

(3) Notwithstanding anything in subsection (2) above, in the case of a person who immediately before the commencement date was a tenant under a Part VI letting, the provisions of subsection (4) below shall apply if, for an allowance period which was current on or ended immediately before the commencement date, the tenant was entitled to an allowance towards the rent payable under the Part VI letting and, in calculating that allowance for the last week of that period which ended before the commencement date, the rent which, for the purposes of Schedule 3 to the Housing Finance Act 1972, was eligible to be met by a rebate or an allowance was that determined under paragraph (a) of the proviso to section 25(1) of that Act (the occupational element of the rent or of the residue of the rent plus 25 per cent).

(4) If, by virtue of subsection (3) above, this subsection applies in relation to a tenant, then, subject to subsection (5) below, on and after the commencement date, if and so long as—

(a) the tenant continues to occupy as his home the dwelling to which, immediately before that date, the Part VI letting referred to in subsection (3) above applied, and

(b) the tenant continues to be entitled to an allowance towards the rent payable by him for that dwelling, and

(c) that rent continues to include payment for the use of furniture,

the rent which, for the purposes of Schedule 3 to the Housing Finance Act 1972, is eligible to be met by a rebate or an allowance shall, in his case, be the amount of the rent which was so eligible for the week mentioned in subsection (3) above (in this section referred to as " the former eligible rent ").

(5) For any week of an allowance period when, apart from this subsection, subsection (4) above would apply in relation to a tenant, that subsection shall cease to apply if—

(a) the amount determined under section 25(1) of the [1972 c. 47.] Housing Finance Act 1972 as the rent which is eligible to be met by a rebate or an allowance exceeds the former eligible rent, or

(b) the rent recoverable from the tenant, exclusive of any part thereof attributable to rates, is less than the former eligible rent, or

(c) part of the dwelling is sub-let and the former eligible rent either did not take account of the occupational element of any rent payable by a sub-tenant or took account of such an element which is less than the occupational element of the rent payable for that week by the sub-tenant,

and, accordingly, from the beginning of that week the rent which is eligible to be met by a rebate or an allowance shall be that determined as mentioned in paragraph (a) above.

(6) In subsection (1) of section 25 of the Housing Finance Act 1972 after the words " of the rent" there shall be inserted, in substitution for the words there inserted by paragraph 17 of Schedule 1 to the [1973 c. 6.] Furnished Lettings (Rent Allowances) Act 1973, the words " (or if, in the case of an allowance, any amount falls to be deducted by virtue of paragraph 14 of Schedule 4 to this Act, the occupational element of the residue of the rent remaining after deducting those amounts) ".

(7) Subsections (2) and (3) of the said section 25 shall be amended as follows:—

(a) at the end of subsection (2) there shall be added the words “and

(c) less, in the case of an allowance, any amount which, in the case of the tenant concerned, is prescribed as a deduction by virtue of paragraph (c) of subsection (3) below”; and

(b) at the end of subsection (3) there shall be added the words “and

(c) prescribe deductions from rent for the purposes of subsection (2)(c) above in the case of tenants of such descriptions as may be specified in the regulations who are for the time being in receipt of awards or grants under any provision of sections 1 to 3 of the Education Act 1962 or any other award or grant which is paid out of money provided by Parliament and is determined by the Secretary of State to be an analogous award or grant,

and different provision may be made by virtue of paragraph (c) above in relation to different periods and different classes of awards or grants”.

(8) In subsection (1) of section 26 of the [1972 c. 47.] Housing Finance Act 1972 (interpretation of Part II) in the definition of " tenant " after paragraph (c) there shall be inserted the following paragraph:—

“(d) a person who is treated as a private tenant under a Part VI letting by virtue of subsection (8A) of section 19 of this Act”.

(9) The said section 26 shall apply in relation to subsections (1) to (5) above as if those subsections were included in Part II of the Housing Finance Act 1972 and, without prejudice to the application of that section, the reference in subsection (3) above to a tenant under a Part VI letting includes a reference to a person who is treated as if he were a private tenant under a Part VI letting by virtue of section 19(8A) of that Act and any reference in that subsection or subsection (4) above to a Part VI letting means, in relation to a person who is so treated, the letting referred to in the said section 19(8A).

12 Rent allowances in Scotland

(1) On and after such day as the Secretary of State may by order made by statutory instrument appoint, so much of section 16 of the Act of 1972 (rent allowances) as requires that, for certain persons to be or to be treated as private tenants, they must be qualified persons within the meaning of subsection (8) of that section, shall cease to have effect.

(2) In paragraph 15(1)(g)(ii) of Schedule 3 to the Act of 1972 (which provides that in ascertaining the amount of an allowance in respect of a furnished letting a certain amount of rent payable is to be disregarded), the words " 125 per cent. of " shall cease to have effect on the commencement date.

(3) Notwithstanding anything in subsection (2) above, in the case of a person who immediately before the commencement date was a tenant of a dwelling-house under a furnished letting, the provisions of subsection (4) below shall apply, if, for an allowance period which was current on or ended immediately before that date, the tenant was entitled to an allowance towards the rent payable under the furnished letting which was calculated, for the last week of that period which ended before that date, by reference to an amount of rent which, after making the deduction (if any) required by head (i) of paragraph 15(1)(g) of Schedule 3 to the Act of 1972, was more than the estimated fair rent referred to in head (ii) of that paragraph but not more than 125 per cent. of that estimated fair rent.

(4) If, by virtue of subsection (3) above, this subsection applies in relation to a tenant, then, if and so long as he continues on and after the commencement date to be—

(a) a tenant of the same dwelling-house under the same letting (whether or not it continues to be a furnished letting) and

(b) entitled to an allowance towards the rent under the letting concerned,

the allowance shall be calculated by reference to the amount of rent referred to in subsection (3) above until—

(i) the rent recoverable from the tenant for any week of an allowance period is less than the amount referred to in that subsection, or

(ii) the amount of rent by reference to which, but for this subsection, the allowance for any such week would be calculated is higher than the amount referred to in subsection (3) above,

whichever is the earlier; and as from the beginning of that week the allowance shall be calculated by reference to the amount of rent to which an authority would be entitled to have regard but for this subsection.

(5) Paragraph 17 of Schedule 2 to the Act of 1972 shall be amended as follows—

(a) in sub-paragraph (1) for the words " sub-paragraph (2) below" there shall be substituted the words " the following provisions of this paragraph ";

(b) at the end there shall be added the following sub-paragraphs—

“(3) It shall be the duty of every authority, for the purpose of computing the amount of an allowance towards the rent payable by tenants of such classes as may be prescribed who are for the time being in receipt of—

(a) an award or grant, being a bursary, scholarship or allowance granted under section 49(1) or 75(f) of the [1962 c. 47.] Education (Scotland) Act 1962, or

(b) any other award or grant which is paid out of money provided by Parliament and is determined by the Secretary of State to be analagous to any such bursary, scholarship or allowance,

to treat the rent as reduced by such amount as may be prescribed.

(4) In sub-paragraph (3) above " prescribed " means prescribed by regulations made by the Secretary of State by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(5) Regulations under this paragraph may make different provision in relation to different periods and different classes of awards or grants.”

(6) In this section "the Act of 1972" means the [1972 c. 46.] Housing (Financial Provisions) (Scotland) Act 1972; and section 22 of the Act of 1972 (interpretation of Part II of that Act) shall apply in relation to this section as if it were included in that Part.

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

(1) Without prejudice to the operation of section 1(1) above if, in a case where subsection (2) of section 18 of the [1968 c. 23.] Rent Act 1968 or, as the case may require, section 17 of the [1971 c. 28.] Rent (Scotland) Act 1971 applies (effect on sub-tenancies of determination of superior tenancy), the relevant conditions are fulfilled, the terms on which the sub-tenant is, by virtue of that subsection, 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 relevant conditions referred to in subsection (1) above are—

(a) that the tenancy or statutory tenancy which is determined as mentioned in the said section 18(2) or, as the case may require, 17(2) was neither a protected furnished tenancy nor a statutory furnished tenancy; and

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

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

14 Power of court, in action for possession, to reduce period of notice to quit

(1) After section 80 of the Rent Act 1968 there shall be inserted the following section:—

“80A Power of county court, in action for possession, to reduce period of notice to quit.

In any case where—

(a) a notice to quit a dwelling which is the subject of a Part VI contract has been served, and

(b) the period at the end of which the notice to quit takes effect is for the time being extended by virtue of section 77 or section 78 above, and

(c) at some time during that period the lessor institutes proceedings in the county court for the recovery of possession of the dwelling, and

(d) in those proceedings the county court is satisfied that any of paragraphs (a) to (d) of section 80(2) above applies,

the court may direct that the period referred to in paragraph (b) above shall be reduced so as to end at a date specified in the direction.”

(2) At the end of subsection (3) of section 106 of that Act (rules as to procedure) there shall be added the words " and section 80A ".

(3) After section 95 of the [1971 c. 28.] Rent (Scotland) Act 1971 there shall be inserted the following section:—

“95A Power of sheriff, in action for possession, to reduce period of notice to quit.

In any case where—

(a) a notice to quit a dwelling-house which is the subject of a Part VII contract has been served, and

(b) the period at the end of which the notice to quit takes effect is for the time being extended by virtue of section 92 or section 93 above, and

(c) at some time during that period the lessor institutes proceedings before the sheriff for possession of the dwelling-house, and

(d) in those proceedings the sheriff is satisfied that any of paragraphs (a) to (d) of section 95(2) above applies,

the sheriff may direct that the period referred to in paragraph (b) above shall be reduced so as to end at a date specified in the direction.”

15 Interpretation

(1) In this Act—

• " commencement date " means the date on which this Act comes into operation;

• " dwelling ", in relation to a furnished letting, means a house or part of a house ;

• " furnished letting " means a Part VI contract, as defined in section 70(6) of the [1968 c. 23.] Rent Act 1968 or, as the case may require, a Part VII contract, as defined in section 85(5) of the Rent (Scotland) Act 1971;

• " protected furnished tenancy ", " regulated furnished tenancy " and " statutory furnished tenancy " shall be construed in accordance with section 1(2) above;

• " the Rent Act " means, in relation to England and Wales, the [1968 c. 23.] Rent Act 1968 and, in relation to Scotland, the [1971 c. 28.] Rent (Scotland) Act 1971;

• " the relevant Part of the Rent Act " means Part VI of the Rent Act 1968 or, as the case may require, Part VII of the Rent (Scotland) Act 1971; and

• " services " has the same meaning as in the relevant Part of the Rent Act.

(2) Without prejudice to subsection (1) above, section 113(1) of the Rent Act 1968 or, as the case may require, section 133(1) of the Rent (Scotland) Act 1971 (interpretation) shall apply for the purposes of this Act other than sections 11 and 12 above as it applies for the purposes of that Act.

(3) 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.

16 Transitional provisions and repeals

(1) The transitional provisions in Schedule 3 to this Act shall have effect, notwithstanding anything in the preceding provisions of this Act.

(2) The enactments specified in Schedule 4 to this Act are hereby repealed to the extent specified in the third column of that Schedule but, in the case of the enactments specified in Part II of that Schedule, only with effect from the day appointed for the purposes of subsection (1) of sections 11 and 12 above.

17 Short title, citation, application, commencement and extent

(1) This Act may be cited as the Rent Act 1974.

(2) This Act and the Rent Act 1968 may be cited together as the Rent Acts 1968 and 1974.

(3) This Act and the Rent (Scotland) Acts 1971 and 1972 may be cited together as the Rent (Scotland) Acts 1971 to 1974.

(4) In section 115 of the Rent Act 1968 (application to Isles of Scilly)—

(a) in subsection (1), after the words " this Act" there shall be inserted the words " and the Rent Act 1974 ";

(b) at the end of paragraph (e) of subsection (2) there shall be inserted the words “and

(f) any provision of this Act which is derived from the Rent Act 1974, other than a provision of Part VI of this Act, and any other provision of the Rent Act 1974”.

(5) This Act shall come into operation at the expiry of the period of two weeks beginning with the date on which it is passed.

(6) Sections 3(1), 4(1) and (2), 6, 7, 8, 11 and 14(1) and (2) of this Act and Part II of Schedules 1 and 2 to this Act do not extend to Scotland and sections 3(2), 4(3) and (4), 9, 10, 12 and 14(3) of this Act and Part III of Schedules 1 and 2 to this Act extend to Scotland only.

(7) This Act does not extend to Northern Ireland.