Paragraph 4 Local reference rents

The rent officer shall make a determination of a local reference rent in accordance with the formula—

where—R is the local reference rent;

H is the highest rent, in the rent officer’s opinion,—

(a) which a landlord might reasonably have been expected to obtain, at the relevant time, for an assured tenancy of a dwelling F1in England, or an occupation contract of a dwelling in Wales, which meets the criteria in sub-paragraph (2); and

(b) which is not an exceptionally high rent; and

L is the lowest rent, in the rent officer’s opinion,—

(a) which a landlord might reasonably have been expected to obtain, at the relevant time, for an assured tenancy of a dwelling F2in England, or an occupation contract of a dwelling in Wales, which meets the criteria in sub-paragraph (2); and

(b) which is not an exceptionally low rent; and

The criteria are—

Where ascertaining H and L under sub-paragraph (1), the rent officer:

In sub-paragraph (2)(b)—

In sub-paragraph (3), “services" means services performed or facilities (including the use of furniture) provided for, or rights made available to, the tenant, but not F16, in the case of a tenancy where a substantial part of the rent under the tenancy is fairly attributable to board and attendance, the provision of meals (including the preparation of meals or provision of unprepared food).

For the purposes of this paragraph and paragraph 5 “broad rental market area (local reference rent)” means the area within which a tenant of the dwelling could reasonably be expected to live having regard to facilities and services for the purposes of health, education, recreation, personal banking and shopping, taking account of the distance of travel, by public and private transport, to and from those facilities and services.

A broad rental market area (local reference rent) must contain—