Moved by
Lord Grimstone of Boscobel
4: Clause 14, page 10, line 11, at end insert—
“(8A) An award giving the tenant relief from payment of a protected rent debt is to be taken as altering the effect of the terms of tenancy in relation to the protected rent constituting the debt.
(8B) Subsection (8A) means, in particular, that—
(a) the tenant is not to be regarded as in breach of covenant by virtue of—
(i) non-payment of an amount written off by the award, or
(ii) failure to pay an amount payable under the terms of the award before it falls due under those terms;
(b) a guarantor of the tenant’s obligation to pay rent, or a former tenant who is otherwise liable for a failure by the tenant to pay rent, is not liable in respect of anything mentioned in paragraph (a)(i) or (ii);
(c) a person other than the tenant who is liable for the payment of rent on an indemnity basis is not liable—
(i) to pay any unpaid protected rent written off by the award, or
(ii) to pay an amount payable under the terms of the award before it falls due under those terms;
(d) any amount payable under the terms of the award is to be treated for the purposes of the tenancy as rent payable under the tenancy.”
Member’s explanatory statement
The amendment would clarify that an arbitrator’s award of relief from payment of protected rent alters the effect of tenancy terms as to the payment of that rent. This means that any other person liable to pay the protected rent is only liable in relation to payments required under the award.