HL Deb 18 May 1971 vol 319 cc322-5

Steps mentioned in certain notices under this Act to count as improvements for certain purposes of Rent (Scotland) Act 1971

1.—(1) The following provisions of this paragraph apply where a dwelling-house which is let on or subject to a regulated or a controlled tenancy consists of or is comprised in premises with respect to which there has been issued a fire certificate covering (in whatever terms) the use of the dwelling-house as a dwelling.

(2) Subject to the following provisions of this paragraph, the amount of any expenditure incurred by the landlord in taking in relation to the relevant building a step mentioned in a notice served in connection with the premises under section 5(4), 8 (3) or (4) or 12,(8)(b) of this Act shall be treated (whether or not apart from this paragraph it would be so created)—

  1. (a) in the case of a dwelling-house let on or subject to a controlled tenancy, is expenditure on the improvement or structural alteration of the dwelling-house for the purposes of paragraph 1(3)(a) of Schedule 8 to the Act of 1971, and
  2. (b) in the case of a dwelling-house let on or subject to a regulated tenancy, as an amount expended on an improvement effected in the dwelling-house for die purposes respectively of sections 20(5) and 24(1) of the Act of 1971.

(3) If from the taking in relation to the relevant building of any such step as is referred to in sub-paragraph (2) above there accrues benefit not only to the dwelling-house but also to other premises of the landlord comprised in the relevant building, the amount to be treated as mentioned in that sub-paragraph shall be so much only of the expenditure as may be determined, by agreement in writing between the landlord and the tenant or by the sheriff, to be properly apportionable to the dwelling-house, having regard to the benefit accruing, from the taking of the step to the dwelling-house and to the other premises.

(4) Any apportionment made by the sheriff under sub-paragraph (3) above shall be final and conclusive.

(5) For the purposes of this paragraph the amount of any expenditure shall be treated as diminished by the amount of any grant paid in respect of that expenditure under any enactment.

(6) Any such step as is referred to in subparagraph (2) above shall, for the purposes of section 24(3) of the Act of 1971 (right of tenant of regulated tenancy in certain circumstances to challenge amount of expenditure on improvements), be treated (whether or not apart from this paragraph it would be so treated) as an improvement; but no application shall be made under the said section 24(3) on the ground that an improvement consisting of such a step was unnecessary.

(7) No application shall be made under the proviso to paragraph 1(3)(a) of Schedule 8 to the Act of 1971 on the ground that the expenditure on such a step as is referred to in sub-paragraph (2) above was unnecessary.

(8) The power of the Court of Session under section 124 of the Act of 1971 to make an act of sederunt and give directions for the purpose of giving effect to the provisions of that Act shall extend to the provisions of this paragraph.

(9) Expressions used in this paragraph and in the Act of 1971 have the same meaning in this paragraph as in that Act.

2. In relating to a dwelling-house consisting of or comprised in premises—

  1. (a) with respect to which there has been issued a fire certificate covering (in whatever terms) the use of the dwelling-house as a dwelling; or
  2. (b) which are the subject of an application for a fire certificate specifying as a use of the premises which it is desired to have covered by the certificate a use such that, if a certificate covering that use were issued, it would cover (in whatever terms) the use of the dwelling-house as a dwelling.

section 41 of, and Schedule 7 to, the Act of 1971 (which relate to certificates of fair rent) shall have effect as if in subsection (1)(a) of that section the reference to making improvements in the dwelling-house included a reference to taking in relation to the relevant building any steps mentioned in a Notice served in connection with the premises under section (4), 8(3) or (4) or 12(8)(b) of this Act; and any step mentioned in such a notice shall, for the purposes of the said section 41 and Schedule 7, in their application to such a dwelling-house be treated (whether or not apart from this paragraph it would be so treated) as an improvement.

Modification of Rent (Scotland) Act 1971 in cases where rent is increased by virtue of section 28(3)(b) of this Act.

3.—(1) Where, in the case of any premises consisting of a dwelling-house let on a regulated tenancy, the rent payable in respect of the premises is increased by an order of the sheriff made by virtue of section 28(3)(b) of this Act and that increase takes effect while a rent for the dwelling-house is registered under Part IV of the Act of 1971, being a rent that was so registered before the completion of the alterations or other things falling within section 28(3) of this Act of which the expense was taken into account by the sheriff in making the order, then—

  1. (a) the contractual rent limit for any contractual period beginning while the registration of that rent continues to have effect shall be what it would be for that period under section 19(2) of that Act if the rent so registered had been simultaneously increased by the same amount (and the reference in section 43(3)(a) of that Act to the limit imposed by section 19(2) shall be construed accordingly); and
  2. (b) if the regulated tenancy of the dwelling-house becomes a statutory tenancy, section 21(2) of that Act (limit of rent during statutory periods of regulated tenancy, and provision for increase up to that limit) shall have effect, in relation to any statutory period of that tenancy beginning while the registration of that rent continues to have effect, as if the rent so registered had been simultaneously increased by the same amount.

(2) Where, in the case of any premises consisting of a dwelling-house let on a regulated tenancy, the rent payable in respect of the premises is increased by an order of the sheriff made by virtue of section 28(3)(b) of this Act and that increase takes effect while no rent for the dwelling-house is registered under Part IV of the Act of 1971, then for any contractual period for which the contractual rent limit is that specified in section 19(3) of that Act, the contractual rent limit shall be increased by an amount equal to the increase effected by the order in the rent payable for that period.

(3) Where, in the case of any premises consisting of a dwelling-house let on a regulated tenancy, the rent payable in respect of the premises is increased by an order of the sheriff made by virtue of section 28(3)(6) of this Act, the contractual rent limit shall not be increased under section 20(5) of the Act of 1971 by reference to any expenditure taken into account by the sheriff in making the order.

(4) Part III of the Act of 1971 (rents under regulated tenancies) shall be amended by the insertion of the words " and paragraph 3 of Part III of the Schedule to the Fire Precautions Act 1971"—

  1. (a) in section 19 (limit of rent during contractual periods), after the words " section 43(3) of this Act " in subsection (2), and after the word " below " in subsection (3);
  2. (b) in section 21 (limit of rent during statutory periods), after the words " section 43(3) of this Act " in subsection (2), and after the word "below" in subsection (3);

(5) Expressions used in this paragraph and in Part III of the Act of 1971 have the same meaning in this paragraph as in that Part.

4.—(1) Where, in the case of any premises consisting of a dwelling-house let on a controlled tenancy, the rent payable in respect of the premises is increased by an order of the sheriff made by virtue of section 28(3)(b) of this Act then—

  1. (a) the rent limit under any controlled tenancy of the dwelling-house for any rental period beginning with or after the date on which that increase takes effect shall be increased by an amount per annum equal to the amount per annum of the increase effected by the order in the rent payable in respect of the dwelling-house; and
  2. (b) the increase effected by the order in the rent payable in respect of the dwelling-house for any rental period shall, notwithstanding anything in section 58 of the Act of 1971 (notice of increase of rent), be recoverable without the service of any notice of increase.

(2) Where, in the case of any premises consisting of a dwelling-house let on a controlled tenancy, the rent payable in respect of the premises is increased by an order of the sheriff made by virtue of section 28(3)(b) of this Act, the rent limit shall not be increased under paragraph 1(3)(a) of Schedule 8 to the Act of 1971 by reference to any expenditure taken into account by the sheriff in making the order.

(3) Expressions used in this paragraph and in Part V of the Act of 1971 (rents under controlled tenancies) have the same meaning in this paragraph as in that Part.

Meaning of " the Act of 1971

5. in this Part of this Schedule, " the Act of 1971 " means the Rent (Scotland) Act 1971." —(Baroness Tweedsn,uir of Belhelvie.]

On Question, Amendments agreed to.