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Article 2 Maximum fair rent

Original text. Later amendments are not shown.

(1)

Where this article applies, the amount to be registered as the rent of the dwelling-house under Part IV shall not, subject to paragraph (5), exceed the maximum fair rent calculated in accordance with the formula set out in paragraph (2).

(2)

The formula is–

MFR=LR[1+(x-y)y+P]

where–

  • MFR is the maximum fair rent;

  • LR is the amount of the existing registered rent for the dwelling-house;

  • x is the index published in the month immediately preceding the month in which the determination of a fair rent is made under Part IV;

  • y is the published index for the month in which the rent was last registered under Part IV before the date of the application for registration of a new rent; and

  • P is 0.075 for the first application for rent registration of the dwelling-house after this Order comes into force and 0.05 for every subsequent application.

(3)

Where the maximum fair rent calculated in accordance with paragraph (2) is not an integral multiple of 50 pence the maximum fair rent shall be that amount rounded up to the nearest integral multiple of 50 pence.

(4)

If

(x-y)y+P

is less than zero the maximum fair rent shall be the existing registered rent.

(5)

In applying this article no account shall be taken of any variable sum to be included in the registered rent in accordance with section 71(4) of the 1977 Act.

(6)

Subject to paragraph (7), this article applies where an application for the registration of a new rent in respect of a dwelling-house is made after this Order comes into force and, on the date of that application, there is an existing registered rent under Part IV in respect of that dwelling-house.

(7)

This article does not apply in respect of a dwelling-house if because of a change in the condition of the dwelling-house or the common parts as a result of repairs or improvements (including the replacement of any fixture or fitting) carried out by the landlord or a superior landlord, the rent that is determined in response to an application for registration of a new rent under Part IV exceeds by at least 15% the previous rent registered or confirmed.

(8)

For the purposes of this article:

(a)

references to Part IV are to Part IV of the 1977 Act;

(b)

“common parts”, in relation to a building, includes the structure and exterior of the building and common facilities provided for the occupiers of the dwelling-houses in the building;

(c)

“index” means the monthly United Kingdom Index of Retail Prices (for all items) published by the Office for National Statistics.