Paragraph 2 of this Schedule shall not impose any liability on the tenant to make payments to the landlord in respect of rates borne by the landlord or a superior landlord.

The following provisions of this paragraph shall apply as respects any rental period of the statutory tenancy, including one as respects which an agreement under section 11 of this Act either fixes the rent or provides that no rent is payable.

Subject to sub-paragraph (4) below, where any rates in respect of the dwelling-house are borne by the landlord or a superior landlord, the amount of the rates for the rental period, as ascertained in accordance with F1Schedule 5 to the M1Rent Act 1977, shall be recoverable from the statutory tenant as if it were rent payable under the statutory tenancy.

The tenant’s liability under sub-paragraph (3) above shall not arise unless notice in writing to that effect is served by the landlord on the tenant, and that notice shall take effect from such date as may be specified in the notice, which shall not be earlier than four weeks before service of the notice.

If the dwelling-house forms part only of a hereditament in respect of which any rates are charged, the proportion for which the statutory tenant is liable under this paragraph shall be such as may be agreed by him with the landlord, or as may be determined by the county court; and the decision of the county court shall be final.

In this paragraph “rental period” means, in relation to a statutory tenancy under which no rent is payable, any period of the statutory tenancy which would be a rental period if a rent were payable under that tenancy; and in F1Schedule 5 to the M2Rent Act 1977 as applied by sub-paragraph (3) above any reference to a rental period, or to a rating period during which the rent for a rental period is payable, shall be construed accordingly.