Rent Act 1977

53 Protection where grant-aided improvement is carried out

(1) This section applies where a grant under Part I of the [1969 c. 33.] Housing Act 1969 or Part VII of the [1974 c. 44.] Housing Act 1974 has been approved in respect of works to be carried out in a dwelling-house subject to a regulated tenancy.

(2) If a rent agreement with a tenant having security of tenure of the dwelling-house takes effect—

(a) on or after the commencement of this Act, and in the period beginning with the time when the tenant's consent to the works was sought by the landlord and ending one year after the completion of the works, and

(b) at a time when no rent is registered for the dwelling-house under Part IV of this Act,

and the increase of rent effected by the agreement is wholly or partly to take account of the carrying out of the works, the requirements of subsection (4) below shall be observed as respects the agreement.

(3) The provisions of this section are without prejudice to the requirements imposed by section 51 of this Act.

(4) The requirements mentioned in subsection (2) above are that the statement in the document containing the agreement—

(a) says that a grant has been approved, and

(b) explains that, if a rent were to be registered following improvements for which a grant was payable, the rent increase up to the registered rent would be phased as follows:—

(i) if the increase exceeded £1.50 per week, the rent would be increased by 3 annual increments each of one-third of the total increase;

(ii) if the rent increase did not exceed £1.50 per week, the rent would be increased by annual increments of up to £0.50 per week up to the registered rent.