Rating and Valuation (Miscellaneous Provisions) Act 1955

12 Increase of controlled rent in consequence of revaluation

(1) The provisions of this section shall have effect in relation to a dwelling-house to which the Increase of Rent and Mortgage Interest (Restrictions) Act, 1920, applies (in this section referred to as " the dwelling-house "), where, at any time within the year beginning with the date of the coming into force of a new valuation list for the rating area in which the dwelling-house is situated, an increase in the rent payable in respect of the dwelling-house would, apart from this section and from the provisions of subsection (7) of section one of this Act, be permitted by paragraph (b) of subsection (1) of section two of the said Act of 1920 (which provides for increases of rent in respect of increases in the amounts payable by the landlord for rates).

In the following provisions of this section " relevant notice of increase " means a notice, served in conformity with subsection (2) of section three of the said Act of 1920, of the intention of the landlord to bring into effect such an increase in rent as is mentioned in this subsection, and " relevant rent", in relation to such a notice, means rent which (apart from this section and from subsection (7) of section one of this Act) would include an amount recoverable by the landlord by virtue of that notice.

(2) A relevant notice of increase, which is served before the end of the year mentioned in the preceding subsection, shall not have effect unless it is accompanied by a statement containing such information as may be prescribed with regard to the rights of the tenant in consequence of the following provisions of this section.

(3) If, where the landlord serves a relevant notice of increase, a proposal (in this section referred to as " the proposal ") is made (whether before or after the service of that notice) in such circumstances that the provisions of subsection (7) of section one of this Act have effect in relation to the dwelling-house or to a hereditament of which the dwelling-house forms part, the tenant, at any time before the proposal is settled, may serve on the landlord a notice (in this section referred to as a " suspense notice ") requiring the increase of rent to be suspended.

(4) Where a suspense notice is served, then, as respects any rent accruing due within the period beginning with the service of the notice of increase, and ending with the date on which, after the proposal is settled, the next demand for rates in respect of the dwelling-house is made (in this section referred to as " the period of suspense "), the said Act of 1920 shall have effect, subject to the two next following subsections, as if no relevant notice of increase had been served :

Provided that any rent actually paid before the service of a suspense notice shall not be recoverable by virtue of this subsection.

(5) Where a suspense notice has been served.—

(a) if the result of the proposal, when it is settled, is that no alteration is made in the valuation list in respect of the valuation to which the proposal related, the landlord may serve on any person, from whom any relevant rent accrued due within the period of suspense, a notice specifying the unpaid balance of any such rent which would have been recoverable from him if the suspense notice had not been served ;

(b) if the result of the proposal is that an alteration is made in the valuation list, but the alteration is such that there is still an increase in the amount payable by the landlord in respect of rates, the landlord may serve on any such person a notice specifying the unpaid balance of any such rent which would have been recoverable from him if—

(i) the suspense notice had not been served, and

(ii) the increase of rent specified in the relevant notice of increase had been such lesser increase as would have been permissible if the valuation list, as from the time when it came into force, had had effect as modified by the alteration.

(6) Any sum specified in a notice under the last preceding subsection shall be recoverable by the landlord from the person on whom the notice is served, and, if that person is the tenant of the dwelling-house, shall be recoverable as if it were arrears of rent:

Provided that a sum recoverable by virtue of this subsection shall not be treated as arrears of rent for the purposes of any proceedings for the recovery of possession of the dwelling-house.

(7) If, where the landlord has served a relevant notice of increase, the tenant does not serve a suspense notice, but the result of the proposal, when it is settled, is that an alteration is made in the valuation list so as to reduce the valuation to which the proposal related, any person who paid any relevant rent accruing due before the date on which the next demand for rates in respect of the dwelling-house is made—

(a) shall be entitled to recover so much of that rent as would not have been recoverable by the landlord if the relevant notice of increase had specified such lesser increase (if any) as would have been permissible if the valuation list, as from the time when it came into force, had had effect as modified by the alteration, or

(b) in a case where, in those circumstances, no such increase would have been permissible, shall be entitled to recover so much of that rent as would not have been recoverable by the landlord if the relevant notice of increase had not been served ;

and any rent recoverable by virtue of this subsection shall be recoverable from the person (if any) who on the said date is the immediate" landlord of the tenant of the dwelling-house (being a tenant of the whole of the dwelling-house who has no subtenant of the whole of the dwelling-house) or, if there is then no such tenant, shall be recoverable from the person who is then the owner of the dwelling-house.

(8) Subject to the preceding provisions of this section, a relevant notice of increase (whenever served) shall have effect, and any relevant rent shall be recoverable, as if subsection (7) of section one of this Act had not been enacted.

(9) The provisions of this section shall have effect, with the necessary modifications, in relation to a notice served under subsection (4) of section seven of the Increase of Rent and Mortgage Interest (Restrictions) Act, 1938, (which relates to notices served on prospective tenants) as if it were a notice served under subsection (2) of section three of the said Act of 1920.

(10) The power of the Minister to make regulations under section fourteen of the Rent and Mortgage Interest Restrictions (Amendment) Act, 1933, shall include power to make regulations—

(a) for prescribing the information to be contained in such a statement as is mentioned in subsection (2) of this section;

(b) for prescribing the form of any notice to be served in accordance with the preceding provisions of this section.

(11) For the purposes of this section—

(a) " dwelling house ", " landlord " and " tenant " have the same meanings as in the said Act of 1920 ;

(b) subsection (8) of section one of this Act shall apply as it applies for the purposes of subsection (7) of that section;

(c) any reference to a demand for rates in respect of the dwelling-house includes a reference to a demand for rates in respect of a hereditament of which the dwelling-house forms part;

(d) rent shall be treated as accruing due on the day on which it is payable in accordance with the terms of the relevant contract of tenancy, or of the relevant statutory tenancy (within the meaning of the Housing Repairs and Rents Act, 1954), as the case may be.