# Landlord and Tenant Act 1954, Paragraph 7: Condition F: method for determining the initial rent


(1) Condition F is met if the rent determination terms include elements 1 and 2 (whether or not they include any other elements).
(2) Element 1: an amount of rent (the “reference amount”) is determined by reference to—
(a) the effect of inflation or any other index or multiplier on the rent under the existing tenancy,
(b) the amount of either or both of the following—
(i) actual rent for premises;
(ii) a hypothetical market rent, or other notional rent, for premises, or
(c) the amount of the tenant’s turnover.
(3) The premises for which rent falling within sub-paragraph (2)(b) is payable may be either or both of the following—
(a) the premises demised by the existing tenancy;
(b) other premises (whether real or hypothetical).
(4) The reference in this paragraph to the amount of a notional rent for premises includes an amount calculated in accordance with the rent determination terms on the basis of actual or assumed information or other assumptions (such as the use of rent determination terms which provide for a turnover rent so as to calculate an amount of notional rent on the basis of actual or assumed turnover).
(5) Element 2: the amount of the initial rent—
(a) will be different from the reference amount, or
(b) could be different from the reference amount (whether or not the amount could, alternatively, be the reference amount).

---
Source: https://www.legislation.gov.uk/ukpga/Eliz2/2-3/56/schedule/7B/paragraph/7 (the official version)
Page: https://openlegislation.uk/landlord-and-tenant-act-1954/schedule-7B/paragraph-7
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.