§ [Nos. 1-5]
§ After Clause 7 insert the following new Clause—
§ Annual limit on private sector rent increases
§ " .—(1) Notwithstanding any registration of a rent, or any rent agreement, which (in either case) permits the rent of a dwelling-house to be increased above the existing amount payable under a registration or rent agreement, nothing in section 6 or 7 of this Act or in Schedule 2 thereto shall enable the rent to be increased in a relevant period by more than £78 above the 1025 amount which was payable for the last rental period beginning before the relevant period.
§ (2)In this section, "relevant period" means—
- (a)in a case where the rent previously payable as aforesaid was in respect of a rent registered on or before the commencement of this Act, the period of 12 months beginning with such commencement, or any subsequent period of 12 months beginning with the anniversary of such commencement;
- (b)in a case where the rent previously payable as aforesaid was in respect of a rent registered after such commencement, the period of 12 months beginning with the date of such registration, or any subsequent period of 12 months beginning with the anniversary of that date;
- (c)in a case where the rent previously payable as aforesaid was payable under a rent agreement in force before or after the commencement of this Act, the period of 12 months beginning with the date when the last increase (before or after such commencement) took effect under that agreement, or any subsequent period of 12 months beginning with the anniversary of that date.
§ (3)This section shall not affect any increase in respect of a service element within the meaning of Schedule 2 to this Act.
§ (4)The Secretary of State may by order substitute, for the sum of £78 mentioned in subsection (1) above, a sum other than that sum.
§ (5)An order under subsection (4) above shall be made by statutory instrument subject to annulment in pursuance of a resolution of cither House of Parliament, and may be varied or revoked by a subsequent order made under that subsection.
§ (6)Any notice of increase under section 21(2)(b) of the 1971 Act or any rent agreement which purports to increase the rent payable at any time above that permitted at that time in terms of this section shall have effect to increase the rent to the extent so permitted but no further.
§ (7)Section 7(9) of this Act shall apply for the interpretation of this section as it applies for the interpretation of that section."
§ The Commons agree to this Amendment, but propose the following amendments thereto:
§ Line 4, leave out from ("agreement") to (" was") in line 7 and insert (", the total of the rent payable under a regulated tenancy in a relevant period shall not, by virtue of a notice of increase or rent agreement take effect at or after the commencement of this Act, be increased by more than £78 above the rent which would be payable in a period of twelve months at the rate at which it").
§ Line 8, at end insert ("; and sections 6 and 7 of this Act shall have effect accordingly in relation to the rent payable for any rental period beginning at or after such commencement ").
§ Line 11. leave out ("on or").1026
§ Leave out lines 42 and 43 and insert—
§ ("(7) The provisions of section 6(2), (3) and (5) and section 7(4) and (9) of this Act and of paragraphs 9 and 10 of Schedule 2 thereto shall apply for the purposes of this section as they apply for the purposes of those sections.").
§ Lord HUGHES
My Lords, with the leave of the House, I beg to move that this House doth agree with the Commons in their Amendments Nos. 2 to 5 en bloc to the Lords Amendment No. 1. The purpose of those four Amendments is to simplify and clarify the provisions of the new clause which your Lordships' House inserted into the Bill preventing average rent increases of more than £1.50 per week in the private sector? in certain circumstances which are not already covered by the limit of £1.50 per week on rent increases in Clause 7 and Schedule 2 to the Bill. They do not represent any change of policy.
The effect of the new clause caused some misunderstanding when we discussed it earlier and the first amendment, to line 4, is designed to make it clear that the new clauses can only restrict rent increases which take effect at or after the commencement of the Bill (on 16th May) and not any rent increases which take place before that date. It also makes it clear that the restriction of £78 per annum is applied above the annual rent calculated at the rate of the rent for the last rental period preceding the period of twelve months in which the restriction operates. The form of the provision is altered so that it is freestanding instead of being subordinate to Clauses 6 and 7. The second Amendment, to line 8, alters the form of reference to those clauses accordingly. The third Amendment to line 11 removes unnecessary wording. The final Amendment applies certain provisions of Clauses 6 and 7 and Schedule 2 to the new clause, so that the new clause operates in the same way with regard to such matters as the exclusion from the restriction of any increase to take account of a rise in rates, or the exclusion of the categories of regulated tenancies to which Clauses 6 and 7 do not apply.
My Lords, I beg to move that this House doth agree with the Commons in their Amendments Nos. 2 to 5.
§ Moved, That this House doth agree with the Commons in the said Amendments.—(Lord Hughes.)1027
Lord CAMPBELL of CROY
My Lords, we are grateful to the noble Lord, Lord Hughes, for explaining this clarification which is being proposed by these amendments to the new clause as it left this House. We welcome this clarification. It certainly seems that there were misunderstandings among some of those who will be involved with the substance of this Bill when it leaves the House.
§ On Question, Motion agreed to.