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4.—(1) Regulation 10 of the Principal Regulations (rent)(1) shall be amended in accordance with the following paragraphs.
(2) In paragraph (3)—
(a)for the words “and to regulations 11 and 12 (restrictions on unreasonable payments and rent increases)” there shall be substituted the words “and to paragraphs (6A) and (6B) and regulations 11 (maximum rent) and 12 (restrictions on rent increases)”; and
(b)in sub-paragraph (b), after “with Schedule 1” there shall be inserted the words “except in a case where an amount in respect of that ineligible charge has been deducted from a relevant rent as defined in regulation 11(13) and a maximum rent has been determined by reference to that relevant rent”.
(3) After paragraph (6) there shall be inserted the following paragraphs—
“(6A) In no case shall the amount of a person’s eligible rent as determined in accordance with the preceding paragraphs of this regulation exceed the amount of the maximum rent.
(6B) In any case where it appears to the authority that in the particular circumstances of that case the eligible rent as determined in accordance with the preceding paragraphs of this regulation is greater than it is reasonable to meet by way of housing benefit, the eligible rent shall be such lesser sum as seems to that authority to be an appropriate rent in that particular case.”.
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