§ 'Section 21(2)(b) of the 1971 Act shall be amended by substituting for the words "section 7 of the Housing Rents and Subsidies (Scotland) Act 1975 "the words" section 36 of the 324 Tenants' Rights, Etc. (Scotland) Act 1980 "and by adding after the words" the date "the words" (which may be any date during a rental period)".'.—[Mr Rifkind.]
§ Brought up, and read the First time.
§ Mr. RifkindI beg to move, That the clause be read a Second time.
The effect of the clause is to enable increases of rent to be recovered for parts of statutory rental periods. The wording of the existing phasing rules in the Housing Rents and Subsidies (Scotland) Act 1975 is based on what was at that time the commonly held view that a notice of increase could take effect only from the beginning of a rental period. That view has been held to be incorrect in a subsequent court of judgment in the case of Avenue Properties (St. John's Wood Ltd.) v. Aisinzon in 1976, which held that a rent increase could take place during a rental period. Although there has not been a specific Scottish judicial decision on this issue, there is some doubt arising out of the English decision in an identical situation. It seems sensible to adapt the legislation to reflect the judgment of the court.
§ Mr. MillanThis is an area of the law in which there has been difficulty. The English decision has caused a certain amount of uncertainty. I am not clear on the exact definition of a rental period. That is not defined in the new clause. What does it mean? Does it mean the period over which rent is paid, which would mean that if the rent is paid weekly the rental period is a week, if it is paid monthly it is a month and if it is paid quarterly it is a quarter of the year?
The definition will make a substantial difference in some instances. If the tenant is paying a weekly rent it will not matter very much whether an increase takes place at the beginning or during the middle of the rental period. However, it will make a substantial difference if the rental period is as long as a year. There is no definition in the clause. Presumably rental period is defined elsewhere. I hope that the Minister will help us and tell us where the definition is to be found.
§ Mr. RifkindI cannot tell the right hon. Gentleman exactly where it is defined, if it is defined anywhere. I suspect 325 that a definition is to be found. Much depends on the agreement that has been reached between the tenant and the landlord. It can be weeks or months depending on the agreement that is reached between the parties when the lease is determined.
§ Question put and agreed to.
§ Clause read a Second time, and added to the Bill.