Rent Act 1977

27 Rent limit for controlled tenancies

(1) Subject to this Part of this Act, the rent recoverable for any rental period from the tenant under a controlled tenancy shall not exceed the following limit, that is to say a rent of which the annual rate is equal to the aggregate of—

(a) the 1956 gross value of the dwelling, determined in accordance with Schedule 4 to this Act and multiplied by the appropriate factor;

(b) the annual amount, ascertained in accordance with Schedule 5 to this Act, of any rates for the basic rental period, being rates borne by the landlord or a superior landlord; and

(c) such annual amount as may have been (or may be) agreed in writing between the landlord and the tenant or determined by the county court to be a reasonable charge for any services for the tenant provided by the landlord or a superior landlord during the basic rental period or for any furniture which, under the terms of the tenancy, the tenant was (or is) entitled to use during that period.

(2) The appropriate factor referred to in subsection (1)(a) above shall be determined as follows:—

(a) in any case where the responsibility for repairs is as specified in Part I of Schedule 6 to this Act, the appropriate factor shall be that specified in that Part of that Schedule, and

(b) in any other case, the appropriate factor shall be 2.

(3) The limit on the rent recoverable under a controlled tenancy for any rental period (in this Part of this Act referred to as " the rent limit") shall be subject—

(a) to adjustment from time to time under sections 29 to 32 of this Act and paragraph 4(1) of Schedule 20 to this Act, and

(b) to reductions as provided by Part II of Schedule 6 to this Act, in case of disrepair.

(4) Where under a controlled tenancy current on 6th July 1957, the rent recoverable for the basic rental period exceeded what would have been the rent limit for that period if ascertained under subsection (1) above, then, subject to subsection (3) above, the rent limit shall be the rent recoverable for that period.