Paragraph 25 Rent and service charges payable by the public sector landlord
The lease shall require the public sector landlord to make payments in respect of rent and may require payments in respect of service charges.
The lease shall contain terms securing that –
the amount to be paid for rent shall not exceed –
any amount proposed as rent to the tenant of the flat in any offer made by the applicant during the consultation period, or
where the applicant’s offer proposed that the rent be calculated in a manner specified, an amount calculated in that manner;
if no offer was made to such tenant, then the amont or amounts to be paid should be comparable to those offered by the applicant during the consultation period in respect of similar flats to be included in the grant;
if there is no similar flat, the rent should be comparable to the rent of any similar flats in similar or comparable locations let omn comparable terms by a person approved under section 94 under an acquisition under Part IV of the Act whether or not to a public sector landlord;
where none of paragraphs (a) to (c) applies, any increase or decrease of rent shall be comparable to the average increases or decreases charged charged by the applicant in respect of flats included in the acquisition.
If payments are to be made in respect of service charges then the provisions of sub-paragraph (2) shall apply to such payments as if for rent there were substituted service charges.