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Clause 23—(Rent Not To Be Increased Above Twice Gross Value)

Volume 529: debated on Thursday 8 July 1954

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Lords Amendment: In page 20, line 16, at end, insert:

(4) Subsection (2) of section seven of the Act of 1938 (which relates to the ascertainment of the amount payable by the landlord for rates) shall apply for the purposes of this section as it applies for the purpose of computing the increase of rent permissible under paragraph (b) of subsection (1) of section two of the Act of 1920.

9.0 p.m.

I beg to move, "That this House doth agree with the Lords in the said Amendment."

The Amendment is designed to bring the provisions as to the amount to be deducted for rates for the purpose of calculating or ascertaining the working of the "stopper" into line with the provisions of the Rent Acts applied by this subsection. Those provisions enable a landlord, in increasing rent on account of increased rates payable by him, to include in the increase any amount of discount or allowance made to him by the local authority for collecting them. The effect of applying this provision is that in making the calculations as to what point the stopper operates, that is the amount deducted for rates, any allowance made to the landlord by the rating authority will be treated as part of the amount payable by the tenant.

This appears to make the existing position even more complex than before. We cannot see any major harm in it, however, and therefore we do not oppose it.

Question put, and agreed to.