HC Deb 05 June 1957 vol 571 cc1409-11

Lords Amendment: In page 28, line 37, leave out from "as" to end of line 39 and insert: would have been recoverable if section one of this Act had provided in all cases for a rent limit equal to the rent recoverable from the tenant for the last rental period beginning before the time of decontrol, that rent limit being subject to adjustment under section three of this Act but not to any other alteration."—[Mr. Bevins.]

Mr. Bevins

I beg to move, That this House doth agree with the Lords in the said Amendment.

We are now on the Fourth Schedule, which governs the transitional decontrol provisions. Paragraph 3 freezes rents during the standstill period and the effect of the Amendment is to allow, in England and Wales, increases or decreases in rents and changes in rates which may take place. If rates rise it is permissible to add the increase to the rents, and vice versa.

Question put and agreed to.

Lords Amendment: In page 30, line 43, at the end to insert:

9.—(1) Where a tenancy which immediately before the time of decontrol was a controlled tenancy not falling within sub-paragraph (1) of paragraph 2 of this Schedule contains a provision (however expressed) whereby the landlord is entitled, on or after the Rent Acts ceasing to apply to the dwelling-house, to increase the rent otherwise than in respect of rates, the provision of services or the use of furniture, and the amount by which the rent may be so increased is not specified by the terms of the tenancy, the tenant may by notice in writing served on the landlord not later than three months after the time of decontrol elect that as from the service of the notice the foregoing provisions of this Schedule shall apply as if the tenancy had been such a tenancy as is mentioned in sub-paragraph (1) of paragraph 2 of this Schedule.

(2) Where a notice is served under this paragraph the tenancy to which it relates, and any sub-tenancy thereof (whether or not an immediate sub-tenancy), shall come to an end on the service of the notice; and if any such sub-tenancy was one falling within the foregoing sub-paragraph, then as from the service of the notice the foregoing provisions of this Schedule shall apply as if the sub-tenancy had been such a tenancy as is mentioned in subparagraph (1) of paragraph 2 of this Schedule.

This sub-paragraph shall not prejudice the power of a sub-tenant to serve a notice under this paragraph where no such notice has been served by a superior tenant.

(3) In the case of a tenancy falling within sub-paragraph (1) of this paragraph, the rent shall not in any case be increased under the terms of the tenancy as respects a rental period beginning before the expiration of three months after the time of decontrol.

10. For the purposes of this Schedule the power of a tenant under a tenancy for a term of years to terminate the tenancy at a specified point during the term shall not be treated as a power to terminate the tenancy by notice to quit.

Mr. H. Brooke

I beg to move, That this House doth agree with the Lords in the said Amendment.

This is a technical matter. I do not think there is any controversy about it, and I hope that the House will accept the Amendment. The Amendment was made in another place to meet the type of case which came to notice after the Bill had left this House. It is the case, which, I grant, is rare, where a tenancy is controlled, a tenancy having many years to, run, on a house which will be decontrolled under a previous Clause. This is a type of tenancy which entitles the landlord, at any time on the house becoming decontrolled, to give three months' notice of increase of rent, and, if the tenant is unwilling to pay the increase, to give him the option of surrendering the tenancy.

The House will appreciate that in that rare case, if the tenant did not agree to pay the increased rent, the house would become decontrolled almost immediately after the commencement of the Act, whereas no one else whose house becomes decontrolled is liable to receive a notice to quit that can take effect at the earliest before fifteen months after the commencement of the Act.

I hope that hon. Members will agree that it is desirable to provide for this special case, and by this Amendment we shall be giving the tenant three months after the time of decontrol in which he can elect to have the protection of the fifteen months' standstill period. It will give the tenant the same type of right as every other tenant of a house which is decontrolled and he will be safeguarded against a risk to which otherwise he might be exposed by the special terms of his lease. I am sure it is right that we should safeguard such a person from being put in an especially unfavourable position.

Mr. Mitchison

The right hon. Gentleman will agree that he hid himself from the 1922 Committee in a singular complication of circumstances before he thought of offering this small advantage to the tenant.

Question put and agreed to.

Lords Amendment: In page 31, line 23, at the end to insert: (a) in paragraph 3 for the words from `be the same as 'to the end of the paragraph there shall be substituted the words be the same as was recoverable from him for the last rental period beginning before that time';

The Solicitor-General for Scotland (Mr. William Grant)

I beg to move, That this House doth agree with the Lords in the said Amendment.

This is purely a drafting Amendment. The object is to retain for Scotland the original wording of paragraph 3 of the Fourth Schedule, which was amended at a later stage.

Question put and agreed to.