Rent cap for student residential tenancies
63.Paragraph 4 makes provision in relation to student residential tenancies. From the day paragraph 4 comes into force, a landlord may not increase the rent payable under the tenancy by more than the permitted rate. The permitted rate is initially set at 0% meaning that no rent increase may take effect while the permitted rate is set at that level.
64.The rent cap in relation to student residential tenancies has effect from the date on which paragraph 4 of schedule 1 of the Act comes into force rather than from 6 September 2022. This is because student residential tenancies are governed by contractual arrangements which, generally, would have been entered into before 6 September 2022 for the 2022-2023 academic year meaning that it is not considered to be necessary or appropriate to apply this provision retrospectively, that is, before the Act comes into force.
65.Subsection (7) defines “rent” for the purposes of this paragraph as not including any sums payable by the tenant under the tenancy in connection with the excessive use of any utilities by the tenant. This means that if the contractual tenancy allows the landlord to charge the tenant for an amount in respect of excessive use of energy or broadband, for example, this charge is still payable by the tenant as it is not “rent” to which the rent cap at the permitted rate (initially set at 0%) applies.