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1.—(1) The Executive shall decide whether, in its opinion, the rent payable under the tenancy of the dwelling at the relevant time is significantly higher than the rent which the landlord might reasonably have been expected to obtain under the tenancy at that time.
(2) If the Executive decides under sub-paragraph (1) that the rent is significantly higher, the Executive shall also decide the rent which the landlord might reasonably have been expected to obtain under the tenancy at the relevant time.
(3) When making a decision under this paragraph, the Executive shall have regard to the level of rent under similar tenancies of similar dwellings in the locality (or as similar as regards tenancy, dwelling and locality as is reasonably practicable) and shall assume that no one who would have been entitled to housing benefit had sought or is seeking the tenancy.
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