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54 What is the effect of registering a fair rent?
From the "effective date", the landlord cannot charge more than the registered fair rent for as long as the rent. remains on the register and the tenancy is a regulated tenancy.
55 What is the "effective date"?
For rents fixed by the Rent Officer it is normally the date when the rent is registered. But if the application was made by the landlord and the new rent is registered before the old rent has run its full 3 years (see Question 51 (0, the effective date is *the day after the expiry of that 3 years. For rents fixed by the Rent Assessment Committee it is the date of their decision.
56 The registered rent is lower than the rent previously payable. Must the landlord reduce it?
Yes. The landlord must reduce the rent to the registered rent from the effective date (see Question 55). The tenant is entitled to recover from the landlord any amount of money he has paid after that date which is more than the registered rent.
57 What happens if the registered rent is higher than the rent previously payable?
The landlord can increase. the rent from the effective date (see Question 55) provided that:
(a) the tenancy is a statutory tenancy (see Question 1); or
(b) the tenancy is still a contractual tenancy and the tenancy agreement allows for rent increases.
In the case of statutory tenancies, the rent cannot be increased unless-the landlord first serves a Notice of Increase which has to be in the required form. The notice cannot be backdated by more than 4weeks.
If the tenancy is contractual and the agreement does not provide for increases in the rent, the landlord cannot increase the rent until he ends the tenancy by serving a valid notice to quit (see Questions 8, 9 and 10). A Notice of Increase giving at least the same length of notice as a valid notice to quit (see Question 10) can act as a notice to quit, ending the tenancy and increasing the rent at the same time. Again a special form must be used; in this case there can be no backdating.
58 Can the landlord increase the rent straight away to the full registered rent?
Not necessarily. If, at the date the rent was registered, the tenant was a sitting tenant, there are restrictions on the amount by which the existing rent can be increased annually up to the new registered rent.
The law limits the increase in rent which a landlord may charge at each "stage" - currently every 12 months. The maximum increase at each stage is the largest of:
(a) £104 a year (£2 a week); or
(b) one-quarter (25%) of the rent payable immediately before; or
(c) one-half of the difference between the rent payable immediately before and the new registered rent.
If any of these increases would take the rent above the new registered rent, the maximum increase is the amount which would take the rent payable up to the new registered rent.
However, if 5% or more of the rent is for services and the amount is noted separately on the rent register by the Rent Officer, or if the charge for services is registered as variable, the landlord can charge the full amount for services in addition to the maximum permitted rent increase.
59 What if the landlord serves a Notice of Increase (see Question 57) increasing the rent by more than the legally permitted amount?
The notice will enable the rent to be increased by the legally permitted amount (see Question 58) and no more. If a tenant finds he has paid more rent than the landlord is legally entitled to charge, he can recover the rent he has overpaid, either by deducting the amount from future rent payments, or by taking appropriate legal action. However, he must take any action within 2 years of making the overpayment.
60 Must the landlord issue a fresh Notice of Increase at each stage of the increases leading to the full registered rent?
No. The landlord may indicate on the first notice of increase the amount of the increase at the later stage and the date from which it will take effect. If he does not do that however, he must serve a fresh notice of increase at each stage.
61 What happens when, as a result of a reference to a Rent Assessment Committee, the rent is raised and there is a fresh registration of a higher rent?
This will depend on what increase was made following the registration of the rent fi.xed by the Rent Officer. If that increase was the maximum permitted (see Question 58), the landlord is not entitled to a further increase in rent until the next anniversary of the date on which the rent fixed by the Rent Officer was registered. If the increase was less than the permitted maximum, the landlord would be entitled to increase the rent up to the full fair rent, provided the total additional rental income did not exceed £104, or one-quarter of the rent being paid immediately before the date on which the rent fixed by the Rent Officer was registered, or one-half of the difference between that previous rent and the new registered rent.
62 What if a new rent is registered, for example, following a change of circumstances or a joint application by landlord and tenant, which is higher than the existing registered rent?
If the last 1 ncrease in rent was the permitted maximum. the landlord is not entitled to a further increase until exactly one year on from the date on which the previous rent was registered. On that date he may increase the rent by up to the permitted maximum (see Question 58).
63 Are increases in rent provided for in a rent agreement subject to a maximum annual increase?
No. There is no limit on the annual increase under a rent agreement and the landlord and tenant are free to agree the amounts involved. (But see Section G.)
64 Can the registered rent be increased to take account of variable service charges?
Yes, provided the Rent Officer or the Rent Assessment Committee has registered the rent as variable. This will only be done if they are satisfied that the terms subject to variation are reasonable. The landlord can then vary the rent in accordance with the terms accepted by the Rent Officer or the Rent Assessment Committee as reasonable.
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