A deduction for under-occupancy is to be made under this paragraph where the number of bedrooms in the accommodation exceeds the number of bedrooms to which the renter is entitled under paragraphs 7 to 11.

Where a deduction is to be made, the amount of the deduction is to be determined by the formula—

$A\times B$

where—

“A”—

1. (a)

   in relation to any deduction under paragraph 33, is the amount resulting from step 2 or 3 in that paragraph (as the case may be), or

2. (b)

   in relation to any deduction under paragraph 34(3), is the amount resulting from step 3 in paragraph 34(2);

“B” is the relevant percentage.

The relevant percentage is 14% in the case of one excess bedroom.

The relevant percentage is 25% in the case of 2 or more excess bedrooms.

No deduction for under-occupation is to be made in calculating the amount of the renter's housing costs element under this Part in any case to which regulation 27(4) to (6) (equity–sharing lease) applies.