(1) Section 14 of the 1988 Act (determination of rent by tribunal) is amended in accordance with subsections (3) to (9).
(2) In the title, after “of” insert “open-market”.
(3) Before subsection (1) insert—
“(A1) A tenant under an assured tenancy other than a relevant low-cost tenancy may make an application to the appropriate tribunal for the purpose of challenging the rent payable under the tenancy.
(A2) No application may be made under subsection (A1) if—
(a) the rent payable under the tenancy is pursuant to a previous determination under this section, or
(b) more than six months have elapsed since the beginning of the tenancy.
(A3) A tenant under any assured tenancy may make an application to the appropriate tribunal for the purpose of challenging a new rent proposed in a notice under section 13(2) or 13A(2).”
(4) In subsection (1)—
(a) for the words from the beginning to “that section,” substitute “Where
an application is made under subsection (A1) or (A3),”;
(b) for paragraphs (a) and (b) substitute—
“(a) which has the same periods as those of the tenancy to which the application relates;
(b) which begins—
(i) in the case of an application under subsection (A1), on the date of the application;
(ii) in the case of an application under subsection (A3), at the beginning of the new period specified in the notice; and”;
(c) in paragraph (c) for “notice” substitute “application”;
(d) omit paragraph (d) and the “and” before it.
(5) In subsection (3)—
(a) in the words before paragraph (a)—
(i) omit the words from “in relation to” to “above,”;
(ii) for “notice”, in the second place it occurs, substitute “application”;
(b) in paragraphs (a) and (b) for “service of the notice” substitute “the application”.
(6) In subsection (3A)—
(a) in the words before paragraph (a), for the words from “on” to “served,” substitute “of the application”;
(b) in paragraph (a), for “that notice was served” substitute “the application was made”.
(7) Omit subsections (6) and (7).
(8) In subsection (8) omit “of a rent for a dwelling-house”.
(9) Omit subsection (9).
(10) After section 14 of the 1988 Act insert—
“14ZA Effect of determination: rent payable
(1) This section applies where the appropriate tribunal makes a determination on an application under section 14(A1) in relation to a tenancy.
(2) The rent payable under the tenancy following the determination is—
(a) the new rent amount, and
(b) the appropriate amount (if any) in respect of rates.
(3) The rent payable under the tenancy following the determination takes effect from the date that the appropriate tribunal directs.
(4) The new rent amount is—
(a) the open-market rent, if lower than the tenancy rent, and
(b) otherwise, the tenancy rent.
(5) The date must not be earlier than the date of the application.
(6) In this section—
“the appropriate amount in respect of rates” means the amount of rent attributable to any rates borne as mentioned in section 14(5);
“the open-market rent” means the amount of rent determined by the appropriate tribunal on the application, in accordance with section 14(1);
“the tenancy rent” means the rent payable under the tenancy immediately before the determination is made, excluding the appropriate amount in respect of rates (if any).
14ZB Effect of determination: proposed new rent
(1) This section applies where the appropriate tribunal makes a determination on an application under section 14(A3) in relation to a tenancy.
(2) The rent payable under the tenancy following the determination is—
(a) the new rent amount, and
(b) the appropriate amount (if any) in respect of rates.
(3) The rent payable under the tenancy following the determination takes effect from—
(a) the beginning of the new period specified in the notice under section 13(2) or 13A(2), if that date is on or after the date of 35
the determination,
(b) the beginning of the first new period of the tenancy which begins on or after the date of the determination, if the beginning of the new period specified in the notice under section 13(2) or 13A(2) is before the date of the determination, or
(c) if it appears to the tribunal that applying paragraph (a) or (b) would cause undue hardship to the tenant, a date that the
appropriate tribunal directs.
(4) A date specified under subsection (3)(c) must fall before the end of the period of two months beginning with the date of the determination.
(5) The new rent amount is—
(a) the open-market rent, if lower than the proposed rent, and
(b) otherwise, the proposed rent.
(6) In this section—
“the appropriate amount in respect of rates” has the meaning given by section 14ZA(6);
“the open-market rent” has the meaning given by section 14ZA(6);
“the proposed rent” means the amount of rent specified in the notice under section 13(2) or 13A(2), excluding the appropriate amount in respect of rates (if any).”
(11) Omit sections 14A and 14B of the 1988 Act.
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