A A o " 1 o 5 1 o eg 1 ^^^^= ^ 1 7 o I 6 > 1 o 6 ^^^= > 1 =J 1 9 ^ 1 ^^^= ^ 1 5 1919 UNIVERSITY OF CALIFORNIA LOS ANGELES SCHOOL OF LAW LIBRARY — — "I INCREASE OF RENT AND MORTGAGE INTEREST (Restrictions) j ACTS, 1915-1919. FIFTH EDITION. By THE EDITORS OP "LAW NOTES." "LAW NOTES" PUBLISHING OFFICES, 25 A 26, CHANCERY LANE. W.C. 2. 3/6 n"t TUITION FOR LEGAL EXAMINATIONS. Messrs. GIBSON & WELDON, The old-established and well-known Firm of Law Tutors, the success of whose Pupils has for many years been unique, continue to prepare Candidates, Orally or by Post, for all Legal Exami- nations—Solicitors', Bar, LL.B. Lond., &c. 'Refresher" Courses can be arranged for ex -Service Men. Prospeotus and List of Successes on application to— Messrs. CIBSON & WELDON, 27, Chancery Lane, W.C. 2. Qaxv Ijlote** Edited by Messrs. GIBSON & WELDON. Published at the "Law Noibs" Publishing Offices, 25 A 26, CHANCERY LANE, W.C. 9Um monthly. Annual Subscription, IDs. post free. This well-known periodical, now in its Thirty-Eighth year, contains a complete Digest of all reported Cases of importance for the month, New Statutes, Rules and Orders, &c, with explanatory comments, Articles on Legal Subjects and other Topics of Interest to Practi- tioners and Students of the Law, Notes on Legal Examinations, Answers to Correspondents, and much other matter of important)* to those interested in the Law. INCREASE OF RENT AND MORTGAGE INTEREST (War Restrictions) ACT, 1915, AS AMENDED BY THE COURTS (EMERGENCY POWERS) ACT. 1917. THE INCREASE OF RENT. &c. (Amendment) ACT. 1918, ank THE INCREASE OF RENT, CONTENTS. PAOH Preface iii Tarle of Cases iv Introduction 1 History and Object of the Acts 1 General Principle and Effect of the Acts 2 Scope of the Acts 3 Pent and Protection of Tenants 4 Rights of the Tenant as against a Purchaser of a House .. 6 Furnished Dwelling-houses 8 Mortgages 8 Increase of Bent and Mortgage Interest (War Pestric- tions) Act, 1915 11 Courts (Emergency Powers) Act, 1917 ,33 Increase of Rent, &c. (Amendment) Act, 1918 36 Increase of Pent and Mortgage Interest (Restrictions) Act, 1919 39 Rules 51 INDEX 74 ^ T ( in ) fcr* r t ^ PREFACE s TO THE FIFTH EDITION. We wrote in the Preface to the Fourth Edition that in view of the extensive and important alterations effected by the Increase of Rent and Mortgage Interest (Restrictions) Act, 1919, this little work had been largely rewritten, the Introduction recast, and the notes on the older Acts modified, so as to incorporate the alterations introduced by the Act of 1919. We stated that an attempt had been made in the notes to anticipate some of the more important difficulties which may be expected to arise in respect of the practical operation of this complicated and not infrequently obscure legislation. We have now to add that an unexpectedly large demand has necessitated the printing of a fresh edition, and that advantage has been taken of this to incorporate therein the additional Rules of 1919. We have also noted the few decisions since the date of the last edition, and believe that all reported cases on the Acts to the end of May, 1919, have been embodied. EDITORS OF " LAW NOTES." June, 1919. a 2 I68fi iv ) ! ABLE OF CASES PAOK Axtizans ( !o. i ■. Whitaker 20 Bain r. Fothergill 47 Bridges v. Chambers 17 Crook v. Whit bread 19 Debtor, Re A 10 Dobson v. Richards 43 Epsom Grand Stand Association v. Clarke 19, 26 Flannagan v. Shaw 20 Harcourt v. Lowe 20 Hodson, Ex parte 20, 4(i Jones v. Woodward 28 King v. York 12 London County and Westminster Bank r. Tompkins 21, 28 Lyon v. Morris 14 Eees v. Marquis of Bute 18, 33 Rex ?■. Rogers 20, 46 Santley v. Wilde 29 Sim itt v. Austin 26, Sharp Brothers and Knight v. Chant 34 Steel v. Mahoney 15, 16, 17 Stovin v. Fairbrass 20 Sutton & Sons v. Hollerton 15 Vernon Investment Association v. Welch 19. 20 Walters v. White 21, 23 Welby v. Parker 21 W rtley v. Mann 16 INTRODUCTION History and Object of the Acts, The effect of the war on the Housing Problem is unfortunately too well known to all to need explana- tion. Already in 1915 the stoppage of building and the access of population to munition and other areas had given rise to a process of rent-raising. The Act of 1915 was passed, checking this process as regards the smaller class of property ; and since the landlord's apology for rent-raising was usually that he had been required to pay a higher rate of interest by his mortgagee, the Act also imposed a check on the increase of mortgage interest. Amendments on minor points of the Act of 1915 were made by the Courts (Emergency Powers) Act, 1917, and the Increase of Rent and Mortgage Interest, &c. (Amendment) Act, 1918. In March, 1919, the position was this. Peace might be expected to "break out" at any time, and six months after that the Act of 1915 was timed to expire. It was recognised that at the end of this six months time would not be ripe for such expiry, and further, the mischief dealt with by the L915 Act in respect of the smaller class of house was now making itsolf felt as to houses of more considerable size. Consequently there was passed the Increase of Ren1 and Mortgage Interest (Restrictions) Act, L919, which (1) prolongs the operation of the 1915 Act, with, how- ever, certain alterations as from its original date of expiry ; (2) brings a further class of house within the Act, making certain modifications of the Act as to this latter kind of house. General Principle and Effect of the Acts. The general policy of the Acts is : — 4s to the 1915 Act houses, landlords must be content with the rent they were getting and mortgagees with the interest they were receiving immediately before the war. Six months, however, after "Peace" as established by Order in Council (see post, p. 39), they are free to demand 10 per cent, more rent and \ per cent, more interest (provided that as so increased the interest still does not exceed 5 per cent.). As to the 1919 Act houses, landlords and mortgagees must content themselves with the rent or interest they were getting at Christmas, 1918, plus 10 per cent, on the standard rent (as to rent) or \ per cent, on the standard rate as to interest. It is to be noted that as to this class of house the increased percentage is not dependent on the lapse of six months from " Peace," and (as to mortgage interest) is not subject to any 5 per cent, limit. If, however, an increase took place after August 3rd, 1914, and before December 26th, 1918, the position is rather more complicated (see post, p. 44). Before dealing with the Acts more in detail, there is one thing desirable to make clear at the outset. To talk of the landlord "raising the rent" (or the mortgagee "raising the interest") is to employ a convenient phrase. But it is a phrase that may mislead unless it is carefully understood that while the Acts restrict the possibility of an increase in rent or interest, they give the landlord (or mortgagee) no power of increase he does not possess apart from the Acts. Apart altogether from the Acts a landlord cannot increase the rent by simply giving notice to the tenant that the rent is increased. The tenant will not be liable unless he agrees to pay a higher rent (in virtue of the Acts not always even then), though in some cases it may be possible to infer such an agreement if after notice the tenant stays on and pays the higher rent without demur. But if the tenant has not assented to the increase, the landlord's notice that the rent is raised is not legally effective. All that the landlord can do (and the Acts will in many cases now prevent even this) is to bring pressure to bear on the tenant by giving him proper notice to quit. Similarly the mortgagee, quite apart from the Acts, cannot raise the mortgage rate of interest without the consent of the mortgagor. All he can do (and again the Acts restrict his powers as to even this) is to bring pressure to bear by calling in his mortgage. It is very important in construing the Act to have in mind throughout this fundamental legal position, and to remember that in no case can the landlord raise the rent, or the mortgagee the interest, simply by his own action. Scope of the A cts. The Acts extend to England, Scotland, and Ireland, and apply to the houses specified in sect. 2, sub-sect. 2 of the principal Act (post, p. 25), and sect. 4 of the Act of 1919 (post, p. 42), which houses we shall, for the sake of convenience, refer to as "small dwelling- houses." It will, however, be noticed that what we propose to term "small dwelling-houses" may consist, e.g., of a single room if let separately or of a flat, while on the other hand, since the 1919 Act, it may be a house of considerable size. And since in some respects there is a difference in the position of houses included originally by the principal Act and houses for the first time brought within the scope of the Acts by the Act of 1919, we shall distinguish these different classes of houses by the terms "1915 Act house" and " 1919 Act house." Rent and Protection of Truant* " 1915 Act small dwelling-houses." — A standard rent is taken, i.e., the rent on August 3rd, 1914, or if the property was not then let the last rent it was let at before. As to new houses never let till after August 3rd, 1914, the standard rent is the rent it is first let at. Where the rent is "progressive" the maximum rent is the standard rent (sect. 7, Act of 1919). Till six months after peace the landlord cannot (apart from a few exceptions) raise the rent above the standard rate, any agreement by the tenant since the war to pay a higher rate being ineffectual as from 25th November, 1915. This will be so even though there has been a change of tenants — the landlord cannot increase the rent even on letting to a new tenant. Six months after "Peace" these restrictions still •continue till Lady Day, 1921, except that from the end of the six months it will be possible (sect. 2, Act •of 1919), subject to certain conditions as to notice, to increase the rent by 10 per cent, of the standard rent. "1919 Act small dwelling-houses.''' — With regard to these where rent is increased after 25th December, 1918, the increase is ineffectual as from 4th March, 1919, if and so far as it exceeds 10 per cent, on the standard rent, but within this limit rent is increase- able even before the expiration of six months from " Peace.'' Any increase (whatever the amount) made before 26th December, 1918, is valid. As to this class of house, if the rateable value at August 3rd, 1914, exceeds the rent at that date, the rateable value and not the rent will give the figure of the standard rent (sect, 4, sub-sect. 1 (v), Act of 1919). .45 to both " 1915 and 1919 Act small dwelling- houses" — As to both classes of house rent is increase- able in certain cases : — (1) Under sect. 1, sub-sect. 1 (ii) of the principal Act (6 per cent, on the cost of post-war improvements by the landlord). (2) Under sect, 1, sub-sect. 1 (iv) of the principal Act (amount of increased rates). (3) Where the rent at August 3rd, 1914, was less than two-thirds of the rateable value (i.e., the Act does not apply to ground rents (sect. 2, sub-sect. 6 of the principal Act) ). (4) Where the rent is kv progressive " (sect. 7 of the 1919 Act). Certain methods of evasion are foreseen and guarded against. Thus, if the landlord flings any burden previously borne by himself on the tenant,. e.(/., if tlit- landlord without raising the amount of the rem requires the tenant to do repairs formerly done by the landlord, this counts as an increase of rent (principal Act, sect. 1, sub-sect. 1 (iii.) ). Nor can the landlord refuse to let or refuse to continue a tenancy unless he is paid something cash down — the tenant will be able to get back anything paid in this way aft.r the 25th November, 1915 (or after March 4th as to "1919 Act houses"), by suing for it or de- ducting- from his rent (principal Act. sect. 1, sub- sect. 2); but this does not prevent a lessor from taking a fine or premium on granting a lease for twenty-one years or more (Courts (Emergency Powers) Act, 1917, s. 4). Nor can the landlord bring pressure to bear by threatening to give notice to quit, for, apart from exceptional cases, he will not be able to turn the tenant out as long as he pays the rent as hxed by the Act (sect. 1, sub-sect. 3). A tenant can demand from the landlord a statement as to the standard rent, and failure to furnish the statement is a summary offence (Act of 1919, sect. 5, sub-sect. 1). Hights of the Tenant as against a Purchaser of a House. One of the exceptional cases in which a landlord can obtain an ejectment order, in spite of the fact that the tenant pays the standard rent and per- forms the other conditions of his tenancy, is that the premises are reasonably required by the landlord for the occupation of himself or souk; other person in his employ, or in the employ of some tenant from him. This exception was inserted in the, Act mainly with the idea of enabling a landlord of an agricultural estate to cultivate it properly. To do so it is often necessary for him to obtain possession of certain cottages to house his labourers. But the exception was taken advantage of by landlords of an entirely different character. Tenants were threatened with eviction by landlords who had bought the house over their heads for the purpose of occupying it themselves. In consequence the amending Act of 1918 was passed, whereby any person who bought the house since the 30th September, 1917, was put in an inferior position to the vendor as to getting an ejectment order with a view to occupation by himself. The Act of 1918 was further amended by sect. 5, sub-sect. 2, of the Act of 1919. The result of this combined legislation is that a purchaser of a small dwelling-house, if he bought the house after the 30th September, 1917, cannot eject the tenant so long as he pays the standard rent and performs the other conditions of the tenancy, except on the grounds of waste, or nuisance, or annoyance to neighbours, or some other ground winch appears satisfactory to the Court, or where the Court is satisfied by a certificate of the lioard of Agriculture and Fisheries that the premises are required for the occupation of a person engaged or employed in agri- cultural work of urgent national importance, or where the purchaser wants the house for occupation by him- self or his employee or his tenant's employer, and the Court, after considering all the circumstances, includ- ing especially alternative accommodation available for the tenant, thinks it reasonable to make the order {post, pp. 18, 36, 37, 38 and 46). Furnished Dwelling-houses. The general provisions of the Acts have no applica- tion to the letting of furnished dwelling-houses. Thus, the restrictions on the landlord's power of ejectment have no application, so that no additional security of tenure is given the tenant of a furnished house, nor does the Act affect a mortgage of such a house. But sect. 6 of the 1919 Act makes certain provisions as to the rents in respect of furnished dwelling-houses, pro- viding that, while the tenancy continues, rent showing more than 25 per cent, increase (not on the rent, but) on the " profits " as compared with the ic normal profit " from a similar letting in the year ending 3rd August, 1914, may be declared irrecoverable by the County Court. This however is only so where the rent or rateable value of the house would bring it within the Acts if unfurnished. The Acts have no application of any sort to lodgers. Mortgages. The Acts apply to mortgages of " small dwelling- houses," whether the mortgaged propert)^ is wholly or merely partly of that character (sect. 2, sub-sect. 2), except : — (1) Mortgages where other property is also included, if the rateable value of the small dwelling- house is less than one-tenth the rateable value of the whole of the mortgaged premises (sect. 2, sub-sect. 4). (2) Equitable charges by deposit of title-deeds or otherwise. (3) Mortgages of ground rents (sect. 2, sub-sect. 6.) As to 1915 Act houses. — The Act fixes a standard rate of interest, viz., the rate payable on August 3rd, 1914. or if the mortgage was created since that date the original rate of interest (sect. 2, sub-sect. 1 (b) ), the mortgagee being prevented as from November 25th, 1915, from raising the rate of interest above the standard rate, and any agreement by the mortgagor to pay the higher rate being unenforceable (sect. 1, sub-sect. 1). But as from six months after " Peace " (post, p. 39), the interest can be increased (1) pro- vided the increase is not more than half per cent, on the standard rate, and (2) the rate as increased does not exceed five per cent. As to 1919 Act houses. — Where the rate of interest is increased at any time after December 25th, 1918, the increase is ineffective as from March 4th, 1919, so far as it exceeds half per cent, on the standard rate. There is, however, no maximum of five per cent, as to this class of house, and the increase is good though it take place before six months after " Peace." As to both 1915 and 1919 Act houses. — A mortgagee of " small dwelling-houses" may not, unless the mort- gagor consents, during the continuance of the Act call in his mortgage or foreclose or sell or take other steps to enforce his security or to recover the principal, unless the interest is twenty-one days in arrear or the mortgagor is breaking his covenants or letting the property get into disrepair or not making payments falling due under prior incumbrances (sect. 1, sub- sect. 4). But this provision does not apply to mortgages 10 repayable by instalments spread over not less than ten years. Nor does it prevent a mortgagee from exercising bis power of sale when he was in possession on the 25th November, 1915, or (as to 1919 Act houses) 4th March, MUD, or where he does so with the mortgagor's consent, or where the mortgaged property is leasehold and the mortgagee satisfies the County Court that the security is seriously diminishing in value or otherwise in jeopardy and that it is reason- able to call it in. And the provision of course does not apply to mortgages outside the Act, e.g., equitable charges by deposit or mortgages of ground rents (sect. 2, sub-sects. 4 and 6). It must be remembered, however, that the Courts (Emergency Powers) Act, 1914, applies to all mortgages created before the 4th August, 1914, and, where the mortgagor is an officer or man in His Majesty's Forces, to mortgages created after that date but before the 11th April, 1916 (Courts (Emergency Powers) (Amendment) Act, 1916, s. 1), or before the mortgagor joined I i is Majesty's Forces, i.e., actually joined up (Courts (Emergency Powers) Act, 1917, s. 8 ; Re A Debtor, 35 T. L. R. 58)), and makes previous application to the Court necessary before the mortgagee exercises many of his remedies. INCREASE OF RENT AND MORTGAGE INTEREST (WAR RESTRICTIONS) ACT, 1915. 5 & 6 Geo. 5, c. 97. An Act to restrict, in connection with the present War, the Increase of the Rent of Small Dwelling-houses and the Increase of the Hate >. (b) In the last case, six months after "termination of the war," the tenant agrees to an increase of 10 per cent, on the rent. This agreemenl is binding in virtue of and subject to. the conditions imposed by sect. 2 of the Act of 1919. Mutatis mutandis the above examples are true of an agree- menl b\ a mortgagor to pay increased interest, and as to (b) the limit of increase being | per cent, with a maximum of 5 per cent. (sect. 3, Act of 1919). The clause applies to new tenants as to old; the landlord cannot raise the rent even on re-letting. The standard rent is fixed for (lie house, not the particular tenant {King v. York, L919 W. N. 59). As t<> " dwelling-house " see post, p. 25, and as to " standard rent " and "standard rate of interest," post, p. 23. As to the right of a tenant or mortgagor to recover overpaid rent or in- terest, see sect. 5 of the Courts ( Emergency Powers) Act, 1917, post. p. ■'>■'>. Provided that — (i) This subsection shall not apply to any rent oi mortgage interest which accrued due before the twenty-fifth day of November nineteen hundred and fifteen ; and Tin- applies to both " 1915 and 1919 Act houses," with the substituted date of 4th March, 1919. as to 1919 Act houses -eel. 4 (ii), Aft Of 1919). (ii) Where the landlord has since the commence- ment of the present war incurred, or during the continuance of this Act incurs. 13 expenditure on the improvement or struc- tural alteration of a dwelling-house (not including expenditure on decoration or repairs), an increase of rent at a rate not exceeding six per cent, per annum on the amount so expended shall not be deemed to be an increase for the purposes of this Act ; and It will be observed that no increase is possible in respect of ordinary repairs. For the notice which must be given before any increase, see proviso (vi) to this sub-sect., infra, p. 16. The question has been raised, but, so far as we know, not decided, whether street improvements would come within this clause. If the owner of a small dwelling-house " receives a notice requiring him to pave and channel the street fronting, and, on his failing to do the work, the local authority carries it through and apportions the expense on the frontagers in the usual way, has ho incurred expenditure on the improvement of the dwelling-house? It is a point on which opinions may well differ, but we incline to the view that this is not an improvement within the clause. So, too. putting the drains in order or putting in new cisterns for old or new waterclosets for old would not appear to be a ground for increasing the rent, but probably come under the head of " repairs." (iii) Any transfer to a tenant of any burden or liability previously borne by the landlord shall for the purposes of this Act be treated as an alteration of rent, and where, as the result of such a transfer, the terms on which a dwelling-house is held are on the whole less favourable to the tenant than the previous terms the rent shall be deemed to be increased, whether or not the sum periodically payable by way of rent is increased, and any increase of rent in respect of any transfer to a landlord of any burden or liability previously borne by the tenant where, as the result of such transfer. 14 the terms on which a dwelling-house is held are on the whole more favourable to the tenant than the previous terms shall be deemed not to be an increase of rent for the purposes of this Act, and if any ques- tion arises under this proviso the question shall be determined by the county court, whose decision shall be final and con- clusive ; and Illustration. — The landlord of a small dwelling-house in London let it at 34£. per annum, undertaking to do repairs, afterwards making a fresh agreement with the tenant whereby the rent remains the same, hut the tenant undertook repairs. In the view of the county court, the repairs are equivalent to 21. per annum. The rent is deemed to be increased by that amount. Semblc the tenant will bs bound by his undertaking to repair, but is only liable for 321. by way of rent. The words "final and conclusive" take away any right of appeal. {Lyon v. Morris, 19 Q. B. D. 139.) The application is made to the County Court of the district in which the dwelling-house is situate (Rule 1) by summons in Form I. (Rule 4). (iv) Where the landlord pays the rates chargeable on, or which but for the enactments relat- ing to compounding would be chargeable on, the occupier of any dwelling-house, an increase of the rent of the dwelling-house shall not be deemed to be an increase for the purposes of this Act if the amount of the increase does not exceed any increase in the amount for the time being payable by the landlord in respect of such rates over the corresponding amount paid in respect of the yearly, half yearly or other period which included the third day of August nineteen hundred and fourteen, and for the purposes of this proviso the expression "rates" includes water rents and charges ; and 15 Any actual increase in the rates can be added to the rent not merely where such increase in the rates is caused by an increase in the rate itself, but also where it is caused by an increase in the rateable value of the premises. Thus, in Steel v. Mahoney, (1918) W. N. 253; 34 T. L. R. 327, the pre-war rent was 9s. a week. In September, 1915, the landlord raised the rent to 10s. a week. There was a revision of the assessment, and the rates were increased by 4:d. a week above the pre-war rate. It was held by a Divisional Court that the landlord might recover 9s. ±d. a week. As to the amount of the increase which can be made under this sub-section, reference may usefully be made to W. H. Sutton & Sons v. Hollerton, (1918) W. N. 237. There, the house was in Manchester, where rates are payable for the yearly period June 25 to June 24. The pre-war rent was 8s. 9d. a week. On January 5, 1918, the landlord served a notice in- forming the tenant that his rent would be 9s. 9d. as from February 2, 1918, owing to an increase in rates. From the particulars served with the notice, it appeared that for the year 1915 — 1916 the rates showed an increase of 12s. 2d. over 1914 —1915; for the year 1916 — 1917 the increase was 2s. 9d., and for 1917—1918 6s. 9d. The landlord added together the total increase for the three years, making 1Z. Is. Sd., and divided that amount by 21 (the number of weeks from February 2, 1918, to June 29, 1918), which brought out the sum of Is., which he sought to add to the weekly rent. It was held by the Court of Appeal that this was wrong, for the Act only allows an increase in the rent to be made in respect of the increase in the rates on the current rating p3rioi. In this case the current rating period was the year ending June 24, 1918, the increase in the rates was 6s. 9^., and that must be divided by the number of weeks in the period, viz. 52. The result was the landlord could only increase the rent by about 2d. a week. For the notice which must first be given, see proviso (vi) to the sub-sect., infra, p. 16. (v) Where the rate of mortgage interest has been increased in compliance with, or in conse- quence of, a notice in writing demanding either repayment of the mortgage or an increased rate of interest given prior to the fourth day of August nineteen hundred and fourteen, such increase shall not be b2 16 deemed to be an increase for the purposes of this Ad ; and It will be observed thai provided the notice was given before August 4th, L914, it is immaterial Hud the mortgagor's assent to the increase was given after that date. And further, that if a mortgagor 1ms. in consequence of such notice, agreed to an increased rate per cent., though he remains liable to pay the increased rate of interest, the Acts nevertheless still restrict increase of rent. (vi) Wherever an increase of rent is by this Act permitted, no such increase shall be due or recoverable until [or in respect of any period prior to] the expiry of four clear weeks after the landlord lias served upon the tenant a notice in writing of his inten- tion to increase the rent, accompanied— (a) where the increase of rent is on ac- count of such expenditure as is mentioned in proviso (ii) to this subsection, by a statement of the improvements or altera- tions effected and of their cost ; and The words bracketed, " or in respect of any period prior to," were not in the Act originally, but were inserted by sect. 5, sub-s. 3 of the 1919 Act to meet the possibility suggested by Steel v. Mahoney, (1918) W. N. 253; 34 T. L. R. 327, which is said to have decided that the clause as it originally stood did not prevent the landlord from claiming the increase as from the date of the notice: it only suspendi d the remedy and prevented hi- suing till four weeks had expired. The facts were rather special, and it may be doubted whether the case went as far as was supposed. At any rate, the amending words introduced h\ the Ait of 1919 make the position clear for the future. The r is not only debarred from suing during the four weeks, but even when the four weeks are up cannot claim arrears of increase, so to speak, in respect of the four weeks. The increase cannot for any purpose be treated as starting till the four weeks are up. It was held under the principal Act that the notice must be given even if the expenditure was incurred and the rent in- creased before the introduction of the Act (Worll&y v. Mann r 17 (1916) W. N. 390). The same principle appears to be appli- able to 1919 Act houses. (b) where the increase of rent is on ac- count of an increase in rates, by a state- ment showing particulars of the increased amount charged in respect of rates on the dwelling-house ; and It was held under the principal Act that the notice must be given even if the rent was increased before the introduction of that Act, and if it has not been given the tenant can recover, or deduct from rent in accordance with sect. 5 of the Courts (Emergency Powers) Act, 1917, any increase paid within the preceding six months Bridges v. Chambers, (1919) W. N. 390). This principle seems equally applicable to 1919 Act houses. Formal defects in the notice by which the tenant is not in any wa3* damnified are not fatal (Steel v. Mahoney (1918), 34 T. L. R. 328). Thus, if the notice states the intention of increasing the rent by 8^. a week, whereas the landlord is only entitled to increase it by 4d., but the actual demand made i6 for id. only, the id. is recoverable (Steel v. Mahoney (1918), 34 T.L.R. 327). (c) where such a notice has been served on any tenant the increase may be con- tinued without service of any fresh notice on any subsequent tenant. (2) A person shall not in consideration of the grant, renewal, or continuance of a tenancy of any dwelling- house to which this Act applies require the payment of any fine, premium, or other like sum in addition to the rent, and where anv such payment has been made in respect of any such dwelling-house after the twenty- fifth day of November nineteen hundred and fifteen, then the amount shall be recoverable In - the tenant by whom it was made from the landlord, and may with- out prejudice to any other method of recovery be deducted from any rent payable by him to the land- lord, but this provision shall not apply to any pnvment 18 under an agreement entered into before the fourth day of August nineteen hundred and fourteen. In the application of the section to 1919 Act houses, -1th March, L919, is substituted for 25th November, 1915 (sect. 4, \r1 of 1919). This section is aimed at the institution of '"key money." Where accommodation is scarce the landlord, out of a number of prospective tenants all willing to pay a like rent, selects the one who will pay the Largest sum by way of bonus on taking- possession. In cases where the Act applies an agreement to make such a payment is not enforceable, and any such payment made can be recovered cither by suing the landlord or by deduc- tion from rent. The section, however, was found in practice to interfere with the bond fide granting of leases at a premium. In Rees v. Marquis of Bute, (1916) 2 Ch. 64, for instance, a scheme, genuinely designed and adapted for the improvement of the position of the Marquis' tenants, under which they were to receive long Leases at a reduced rent in consideration of a money payment, fell through owing to the impossibility of compelling payment of the premium. This defect was partially remedied by sect . 2 of the Courts (Emergency Powers) (No. 2) Act, 1916, which allowed the County Court to authorise the taking of a premium or fine on the granting of a lease for 21 years or more, and now, by sect. 4 of the Courts (Emergency Powers) Act, 1917, post, p. 33, leases for 21 years or upwards are taken out of this section altogether, and the provision of the Act of 1916 repealed, so that the leave of the County Court is no longer required. (3) No order for the recovery of possession of a dwelling-house to which this Act applies or for the ejectment of a tenant therefrom shall be made so long us the tenant continues to pay rent at the agreed rate us modified by this Act and performs the other con- ditions of the tenancy, except on the ground that the tenant has committed waste or has been guilty of conduct which is a nuisance or an annoyance to adjoining or neighbouring occupiers, or that the premises are reasonably required by the landlord for the occupation of himself or some other person in his employ, or in the employ of some tenant from him, or on some other ground which may be deemed satisfac- 19 tory by the court making- such order, and where such order lias been made but not executed before the pass- ing of this Act the court by which the order was made may, if it is of opinion that the order would not have been made if this Act had been in operation at the date of the making of the order, rescind or vary the order in such manner as the court may think fit for the purpose of giving effect to this Act. In the application of this sub-section to 1919 Act houses a reference to the date of the passing of the 1919 Act (viz., 2nd April, 1919) is substituted for " the passing of this Act." Under this sub-section the tenant of a dwelling-house to which the Act, as extended by the Act of 1919, applies, cannot bo turned out so long as he complies with the conditions stated, except on one of the grounds mentioned in the sub-section. In Epsom Grand Stand Association, Limifodw Clarke, 35 T. L. R. 525, it was questioned but not decided whether in an action for ejectment the sub-section is a bar to judgment or only to execution . It has been questioned whether the section protects a lessee for a fixed term from having to give up possession at the expiration of his lease, since after determination of his lease he i* no longer " a tenant." But even if the house is not " let " it was let, and will still bo within the Act in virtue of sect. 2, sub-sect. 5 of the principal Act. Moreover, a tenant who holds over is not a trespasser: he is a. tenant at sufferance. The sub-section appears to protect, him just as much as it. protects a weekly tenant who receives notice to quit and refuses to give up possession, and this view, advanced by us in previous editions, has been adopted by Mr. Justice Greer in Vernon Investment Association v. Welch (1919), 35 T.L.E. 511. The Act. it will he noticed, dues nut prevent the landlord from giving notice to quit; it merely provides thai no order for recovery of possession or for ejectment is to be made, and pie- vents double value from being recovered under the Landlord and Tenant Act, 1730, for the tenant holding over Crook v. Whitbread, 147 L. T. 80. A landlord, therefore, who wishes to obtain possession as soon as possible after the expiration of the Act, can give notice to qui! now without waiting Tor the expiration of the Act. This is a small poinl in the case of weekly tenancies, which can he terminated h\ ;i week's notice, hui of considerable importance as regards tenancies from year in year, which can (inly he terminated by half a year's notice < spiring at the end of one of the years of the tenancy 20 Where such notice to quil is given, ii is not clear what the effect of subsequent acceptance of rent would be. Usually the acceptance of rent would operate as a waiver of the notice, but wo doubl whether il could be so construed where the landlord has l>> Btatute to Lei the tenant stop on whether he wishes to do -i) or not. If it could be construed as a waiver, the only way (Kit of the difficulty would !"• for the Landlord to refuse the rent and claim it afterwards as mesne profits which is not a reason- able alternative. If ii i- intended to apply t<> the Court for possession, it is advisable that the notice to quil should specify the ground on w hich possession is required. This section protects the tenant oven though In; himself gave notice to quit, and oven if lie changes liis mind and holds over he will not be liable for double rent under the Distress for Rent Act, L737 FLammgwiv. SJmic, 1!>I!> W. X. L39; Artizans, Labourers the mortgagee who was in possessionon November 25th, 1915. It will be remembered that tic Courts 'Emergency Powers) Act, 1914, may apply, so as to- render the Court's leave necessary, though this Act does not. But the former Act does not apply to 6ales by mortgagees in possession, at any rate if the property is land and not pure per- sonalty, and a mortgagee who has appointed a receiver who is- 23 still acting is for this purpose deemed to be in possession (Courts (Emergency Powers) (No. 2) Act, 1916, s. 1 (1)). From the mention in this saving clause of the power of sale only, it was argued in Walters v. White, 33 T. L. R. 154, that in the case of a mortgage to which the Act applies the remedy of a mortgagee in possession is now limited to selling. Sargant, J., however, held that the saving clause was only inserted ex obundanti cautela, and had not this effect. A mortgagee in possession can foreclose, just as a mortgagee not in possession may foreclose, if the mortgagor has not fulfilled the conditions necessary to give him the protection of this section. And the same remark applies to the mortgagee's other remedies. Provided also that if, in the case of a mortgage of a leasehold interest, the mortgagee satisfies the county court that his security is seriously diminishing in value or is otherwise in jeopardy, and that for that reason it is reasonable that the mortgage should be called in and enforced, the court may by order authorise him to call in and enforce the same, and thereupon this subsection shall not apply to such mortgage. This obviates a hardship that might otherwise arise where money has been lent on leaseholds, and by lapse of time the term is likely to become too short to be a sufficient security for the amount advanced. As to the proper court to which to apply, see Rule 2, and see Rulo 3 (2) (b) of the Courts (Emergency Powers) Rules. 1918. The application is by summons in Form 2 (Rule 4). 2. interpretation and application. — (1) For the pur- poses of this Act except where the context otherwise requires : — I a The expression " standard rent " means the rent at which the dwelling-house was let on the third day of August nineteen hundred and fourteen, or, where the dwelling-house was not let on that date, the rent at which it was last let before that date, or, in the ease of a dwelling-house which was first let after the said third day of August, the rent ai which it was first let: [Provided that if the rateable value of the dwelling-house on the said third day 24 of August exceeds the standard rent an so defined, that rateable value shall as respects that house be deemed /<> be the standard rent. Provided that in the case of any dwelling-house let at a progressive rent payable under a tenancy agreement or lease the maximum rent pay- able under such tenancy agreement or lease shall be the standard rent]. The words in brackets wore inserted by the Act of 1919, and the proviso printed in italics only applies to 1919 Act houses. S< e seel . 4 and sect. 7 of the Act of 1919, post.) Illustration. — A " small dwelling-house " was on August 3rd, 1914, let to A. at 241. per annum. It has since been, let to B. at 26/. and then to C. at 28/. The standard rent is 24/. Houses erected after or in course of erection at 2nd April, 1919, are not within the Acts, and have no standard rent (post, p. 50). (b) The expression ''standard rate of interest" means in the case of a mortgage in force on the third day of August nineteen hundred and fourteen, the rate of interest payable at that date, or, in the case of a mortgage created since that date, the original rate of interest : While the standard rent is the same for every tenanc}' of the same property the standard interest may vary with each succes- sive mortgage thereon. If on August 3rd, 1914, there was a mortgage on a small dwelling-house carrying interest at 4 per cent, and that mortgage has been paid off and a fresh mort- gage given which carries interest at 5 per cent., the standard rate is 5 per cent, and not 4 per cent. The application of this provision in the case of a transfer of a mortgage is not very clear. Suppose that A. is the owner of property coming within this Act, which at the outbreak of the war was in mortgage to B. at 5 per cent. In December* 1914, B. called in his mortgage and A. arranged Avith C. to pay B. off and take a transfer of the mortgage, the rate of interest, however, to be in future 5^ per cent. A. joins in the transfer and gives a fresh covenant to pay 5| per cent, interest, and a new proviso for redemption is inserted. Must A. now pay 5 or 5^- per cent.? Is the existing mort- 25 gage a mortgage which was in force oil the ^Jrd Augusr,. 1914, or a mortgage created since that date? The latter, we think, the transfer being only a conveyancing device to effect what is really a new mortgage. There would have been no doubt on the point if the transaction had been carried through by reconveyance and fresh mortgage, and the mere form should make no difference. (c) The expression "rateable value'' means the rateable value on the third day of August nineteen hundred and fourteen, or, in the case of a house or part of a house first assessed after that date, the rateable value at which it was first assessed : There is no reported decision as to the meaning of " rateable value" in this clause. Probably it means the net rateable value and not the gross value. It has been held in the Countv Court that this is the true meaning (VII. Law Journal County Courts Reporter, 49). (d) The expressions " landlord," "tenant," '"mort- gagee," and "mortgagor" include any per- son from time to time deriving title under the original landlord, tenant, mortgagee, or mortgagor : (e) The expression "mortgage" includes a land charge under the Land Transfer Acts, 1875 (38 & 39 Vict, c. 87) and 1897 (60 & 61 Vict, c. 65). (2) This Act shall apply to a house or a part of a house let as a separate dwelling where such letting does not include any land other than the site of the dwelling-house and a garden or other premises within the curtilage of the dwelling-house, and where either the annual amount of the standard rent or the rate- able value of the house or part of the house does not exceed — (a) in the case of a house situate in the metro- politan police district, including therein the city of London, thirty-five pounds; 26 (b) in the case of a house situate in Scotland, thirty pounds; ami (c) in the case of a house situate elsewhere, twenty- six pounds ; and every such house or part ol* a house shall be deemed to be a dwelling-house to which this Act applies: Provided that this Act shall not apply to a dwelling-house let at a rent which includes payments in respect of hoard, attendance, or use of furniture. 1: should !»• noted that for the purpose of the Act a house may, and in practice often will, consist of a flat or even of a single room. On the other hand, where a room is let to a lodger, i.e., one who pays a sum to cover board, attendance, etc., as well as lodging, the Act has no application. As to furnished dwelling-houses, see post, p. 48. As to whether a house falls within the section two indepen- 'I nt criteria are provided. The section will apply (1) if the standard rent does not exceed an amount which varies with the Locality, or (2) if the rateable value does not exceed that amount . In other words, to be outside the section both rent and rateable value must be above the stated amount. A different principle has been applied to houses brought within the scope of the Acts for the first time by the Act of 1919 (post, p. 42). For definition of rateable value see sub-sect. 1 (c). ante, p. 25. It is important to notice that the Act only applies where the house is "let." Therefore, if a mortgagor of a small dwelling-house is himself occupying the house, there is nothing in this Act to prevent the mortgagee from calling in his money and raising the interest. The section is not very clearly drawn, and its application may give rise to difficulties where part of the premises is used as a shop. If a shop alone were let, there would be no "dwelling," and the Act would not apply. But where shop and dwelling rooms over or at the back are let together, a question may arise whether the letting includes " any land other than the site of the dwelling-house and a garden or other premises within the curtilage." Our own opinion expressed ii former editions is that the case fads within the Acts. This view is confirmed by the Court of Appeal decision in Epsom Grand Stand Association, Limited v. Clarice, 35 T.L.R. 525, where licensed premises were held to be within the Acts. In Scott v. Austin, (1919) W. N. 85, Rowlatt, J., said. 27 "premises within the curtilage" means "premises domestic- ally appurtenant to the dwelling-house." In that case the letting was of a cottage on a building estate where similar cottages were to be built, each with a small piece of ground behind it. It so happened that at one side of the cottage in question similar houses had not been built, their sites forming an open piece of ground on one side of the cottage about one-fifth of an acre in extent. This space and the cottage were let together and were surrounded by a continuous fence, the space forming a garden to the cottage. Held, it was a garden within the curtilage. (3) Where, for the purpose of determining the standard rent or rateable value of a dwelling-house to which this Act applies, it is necessary to apportion the rent at the date in relation to which the standard rent is to be fixed or the rateable value of the property in which that dwelling-house is comprised, a county court may, on application by either party, make such apportionment as seems just, and the decision of the court as to the amount to be apportioned to the dwelling-house shall be final and conclusive. This is necessary in order that where the tenancy is, e.g. of a single room it mav be possible to ascertain the standard rent or rateable value of that room. Illustration. — On August 3rd, 1914, a house was rated at 80Z. One of the upper floors is now let to a tenant. The County Court decides that of the 80Z. rateable value only 20/. is pro- perly attributable to the upper floor. The tenant of the upper floor gets the benefit of the Act. As to the words " final and conclusive," see ante, p. 14. The application is made to the County Court of the district in which the dwelling-house is situate (Rule 1) by summons in Form 3 (Rule 4). (4) Subject to the provisions of this Act, this Act shall apply to every mortgage where the mortgaged property consists of or comprises one or more dw r el)ing- liouses to which this Act applies, or any interest therein except that it shall not apply — (a) to anv mortgage compiling one or more dwell- ing-houses to which this Act applies and 28 other land if the rateable value of .such dwelling-houses is less than one-tenth of the rateable value of the whole of the land com- prised in the mortgage, or (b) to an equitable charge by deposit of title deeds or otherwise. This must be read in conjunction with .sub-sect. (2), supra. A mortgage of a farm, for instance, is not brought within the A.ots 1>\ the fad thai the rateable value of the house and buildings is more than one-tenth of the rateable value of the whole Land comprised in the mortgage; for the letting- includes the laud, and the farm house will probably not be a dwelling- house within sub-sect. 2) of this Ae due from him to the bank, and he thereby charged his interest in the property comprised in the deeds with payment of the said moneys on demand; he declared that the bank should be deemed mortgagees under the deed of all the premises thereby charged; he undertook on request to execute a legal or other mortgage of the premises; he gave the bank a power of sale on default in payment; he declared that during the continuance of the security he would hold the property charged in trust for the bank, with power to the bank to remove him from being trustee and to appoint. theinselwvs or an\ persons to be trustees and to make a declaration vesting all his said estate and interest in such new trustees: and he irrevocably appointed certain ollicials of the bank to bo his attorneys for executing certain documents, including a conveyance of his estate and interest in the premises. In 1917 the plaintiffs sued to recover the amount 29 due on the overdraft. The Court of Appeal held that the docu- ment was an " equitable charge." and therefore outside the Act of 1915, so that the action was maintainable. Pickford, L.J., was of opinion that the document was not a " mortgage " at all, which he understood to mean what Lindley, M.K., said it meant in Santley v. Wilde, (1899) 2 Ch. 474, viz., "A conveyance of land as a security for the payment of a debt or the discharge of some other obligation for which it is given." Bankes and Scrutton, L.J J., on the other hand, thought it was a mortgage, which term they said includes an equitable mortgage. But all the judges were of opinion that, whether it was a "mort- gage" or not, it certainly was an "equitable charge" within the exception, and therefore the Act did not apply to it. A formal mortgage of an equity of redemption— in other words, a second, third, or subsequent mortgage— appeai-s to be within the Act. It is not made to secure only a temporary loan. It does convey an interest in property, though only an equitable interest. This view finds support from the wording of sect. 1, sub-sect. 4, which contemplates that the Act may in some cases apply to a mortgagor who is liable to pay interest under a prior incumbrance. A covenant to surrender copyholds without any actual sur- render, the mortgagor appointing the mortgagee his attorney to make the surrender, would appear to be an equitable charge and therefore outside the Act. (5) Where this Act has become applicable to any dwelling-house or any mortgage thereon it shall con- tinue to apply thereto whether or not the dwelling- house continues to be a dwelling-house to which this Act applies. This is rather Irish, but can be made clear by an illustration. Suppose a house is just within the Acts having regard to the amount of the rent it is let at. The landlord spends 1007. in improvements and adds 61. to the rent or raises the rent by the amount of the increased rates he has to pay, both of which things he is entitled to do. Even if this brings the rent over the statutory limits mentioned in this section and sect. 4 of the 1919 Act, tho house is still within the Acts and the rent cannot bo further raised at discretion. (6) Where the rent payable; in respect of any tenancy of a dwelling-house is less than two-thirds 30 of the rateable value thereof, this Act shall not apply to that rent or tenancy nor to any mortgage by the landlord from whom the tenancy is held of his interest in the dwelling-house, and this Act shall apply in respect of such dwelling-house as if no such tenancy existed or had ever existed. Tli is section is printed as amended by sect. 7 of the Courts (Emergency Powers) Act, 1917, post, p. 35. Originally the word "standard" appeared before the word "rent" in the first line. To talk of " standard rent " in respect of a tenancy excluded from the Act was obviously a slip. " Standard rent " only exists in the case of a dwelling-house to which the Act applies. The words from "and this Act shall apply " to the end were added by the amending section. At first sight they appear contra- dictory, but the meaning obviously is that, if at the expira- tion of a tenancy where the rent is less than two-thirds of the rateable value, the rent is raised up to or above the two-thirds, the new rent becomes the standard rent, and cannot afterwards be raised (see definition of "standard rent," sect. 2 (1) (a), supra, p. 23). The chief effect of this sub-section is to take " ground rents" out of the Act. The Act docs not therefore prevent the ground landlord from increasing his "ground rent" if the property has appreciated in value when the lease falls in. Nor is he protected by the Act as against his mortgagee. 3. Rules as to procedure. — The Lord Chancellor may make such rules and give such directions as he thinks fit for the purpose of giving effect to this Act, and may by those rules or directions provide for any proceedings for the purposes of this Act being con- ducted so far as desirable in private and for the remission of any fees. The English rules are set out post, p. 51. 4. Application to Scotland and Ireland. — (1) This Act shall apply to Scotland, subject to the following modi- fications : — " Mortgage and incumbrance" mean a heritable 31 security ; "line" means grassum or considera- tion other than rent ; " mortgagor" and " mort- gagee" mean respectively the debtor and the creditor in a heritable security; "covenant" means obligation; "mortgaged property" means the heritable subject or subjects in- cluded in a heritable security ; " rateable value" means yearly value according to the valuation roll; "rateable value on the third day of August nineteen hundred and fourteen" means yearly value according to the valuation roll for the year ending fifteenth day of May nineteen hundred and fifteen; "assessed" means entered in the valuation roll ; " com- mitted waste" means " wilfully destroyed the property " ; " land " means lands and heritages ; " enactments relating to compounding" include the House-letting and Rating (Scotland) Act, 1911 (1 & 2 Geo. 5, c. 53); "rate" means as- sessment as defined in the last-mentioned Act ; " Lord Chancellor " means the Court of Session ; "rules" means act of sederunt; and "county court" means the sheriff. Sec further sect. 9 of the Act of 1919. (2) This Act shall apply to Ireland subject to the following modifications : — (a) A reference to the Lord Chancellor of Ireland shall be substituted for the reference to the Lord Chancellor ; (b) The expression "mortgage" includes a charge by registered disposition under the Local Registration of Title (Ireland) Act, 1891 (54 & 55 Vict. c. 66); (c) The expression "rateable value" means the annual rateable value under the Irish Valuation Acts: Provided that where part of a house let as a separate dwelling is not (separately valued under those Acts, the Com- c2 32 missioner <>!' Valuation and Boundary Sur- veyor may on the application of the landlord or tenant make such apportionment of the rateable value of the whole house as seems just, and his decision as to the amount to be apportioned to the pari of the house shall be final and conclusive, and that amount shall be taken to be the rateable value of the part of the house Eor the purposes of this Act but not further or otherwise - further sect. 10 of the Act of 1919. 5. Short Title and Duration.— (I) This Act maybe cited as the Increase of Rent and Mortgage Interest (War Restrictions) Act. 1915. (2) This Act sluill continue in force during the con- tinuance of the present Avar and for a period of six months thereafter and no longer, but the expiration of this Act shall not render recoverable any rent or interest, which during the continuance thereof was irrecoverable or affect the right of a tenant to recover any sum which during the continuance thereof was under tins Act recoverable by him. This is now subject to sect. 1 of the Act of 1919, post. " Continuance of the present war." See Termination of the Presenl War [Definition) Act, 1918, p. 39. A.s to sums recoverable by the tenant, see ante, p. 17, and ■ect. a of the Act of 1917, post, p. 33. 33 COURTS (EMERGENCY POWERS) ACT, 1917. 7 & 8 Geo. 5, c. 25. An Act to amend the Court* [Emergency Powers) Acts, 1914 to 1916, and the Increase of Rent and Mortgage Interest (War Restrictions) Act, 1915, and to grant relief in connexion with the present war from liabilities qo limit of the total interest to o per cent. It A\il! be observed that the clause is retrospective and applies to increases, though thej occurred before the Act if they occurred alter 25th December, 1 •16 5. Minor amendments of ihc principal Act. — (1) A landlord of a house to which the principal Act, either as originally enacted or as extended by this Act, applies shall, on being so requested by the tenant of the house, furnish to him a statement as to what is the standard rent of the house, and if he fails within fourteen days to do so, or furnishes a statement which is false in any material particular, he shall be guilty of an offence and liable on summary conviction to a fine not exceeding - ten pounds. In this connection it is important to bear in mind the defini- tion of standard rent (sect. 2, sub-s. 1 of the principal Act) and to observe that such rent is not necessarily that actually payable by the tenant, which may be a higher figure owing to the landlord having done repairs or to a rise in rates (sect. 1, 6ub-s. 1 (ii) and (iv) of the principal Act), or there may have been an increase up to 10 per cent, under this Act. In such cases the convenient thing would bo for the landlord to state the standard rate and add particulars as to the increase made. (2) Where a person who has, since the thirtieth day of September nineteen hundred and seventeen, pur- chased a house to which the principal Act, either as originally enacted or as extended by this Act, applies, requires the house for his own occupation or that of some person in his employ, or in the employ of some tenant from him, nothing in the Increase of Rent, &c. (Amendment) Act, 1918, shall be construed as pre- venting the court from making an order for the recovery of possession of the house, if, after con- sidering all the circumstances of the case, including especially the alternative accommodation available for the tenant, the court considers it reasonable to make such an order. This section imposes very considerable limits on the opera- tion of the Act of 1918 (which see ante). As to the words " person in his employ or in the employ of some tenant from him," see Rex v. Rogers, Ex parte Hodson, (1918) W. N. 128, ante, p. 20. 47 It is perhaps not clear whether " a person who has since 30th September, 1917, purchased," refers only to persons who purchased after that date and before the coming into operation of this Act (viz. 2nd April, 1919), or includes also purchasers who bought after the Act came into force. Contrast the language of sect. 4 (1), "has been since 25th December, 1918, or is hereafter increased." The Acts, indeed, give rise to a good many difficulties as regards vendor and purchaser. As already noticed, the fact of the owners desiring to sell with vacant possession is not a satisfactory ground for an ejectment order against the tenant under sect. 1, sub-s. 3 of the principal Act (Stovin v. Fairbrass, ante, p. 20). If the owner sells under a contract to give vacant possession and finds that the tenant taking advantage of the Acts refuses to go, the purchaser will be entitled to rescind his contract, and might apparently even sue for substantial damages, since it would seem that the Bain v. Fothergill (L. B,. 7 H. L. 188) rule would not apply. (See 36 Law Notes, p. 256, and cases there cited.) Where the contract for sale with vacant possession was entered into though not completed before the Act, the purchaser could apparently rescind, but no claim for damages arose. (3) The principal Act, both as originally enacted and as extended by this Act, shall have effect as if in proviso (vi) to subsection (1) of section one of that Act after the word " until" there were inserted the words " or in respect of any period prior to." See ante, p. 1G. (4) Any rooms in a dwelling-house the subject of a separate letting as a dwelling shall, for the purposes of the principal Act and this Act, be treated as a part of a house let as a separate dwelling. The object of this clause is obscure. Its effect is, no doubt, that where a tenant takes one or two rooms in a house for the purpose of dwelling in them the tenancy of the rooms will be within the Act. But since the rooms were surely, apart from this clause, " a part of a house " within sect. 2, sub-s. 2 of the principal Act, this clause appears to do no more than re] the existing rule. Accepted on this basis by the Commons as "harmless," after being inserted by the Lords, the clause may yet have unforeseen effects on the construction of the Act. d2 4S 6. Limitation on rent of houses let furnished. — (1) Where the occupier of a dwelling-house to which the principal Act, either us originally enacted or as extended by this Act, applies, lots. or has, before the passing of this Act, let the house or any part thereof at a rent which include- payment in respect of the use of furniture, ami it is proved to the satisfaction of the county court on the application of the lessee that the rent charged yields to the occupier a profit more than twenty-five per centum in excess of the normal profit as hereinafter defined, the court may order that the rent, so far as it exceeds such sum as would yield such normal profit and twenty-five per centum, shall be irrecoverable, and that the amount of any payment of rent in excess of such sum which may have been made in respect of any period after the passing of this Act. shall be repaid to the lessee, and, without prejudice to an\ other method of recovery, may be recovered by him by means of deductions from any subsequent payments of rent. (2) For the purpose of this section u normal profit 5 ' means the profit which might reasonably have been obtained From a similar letting in the year ending- on the third day of August, nineteen hundred and fourteen. This section onlj applies to dwelling-houses which, apart from the fact of their being let furnished, would fall within the .Vet. having regard to their rent and rateable value — at least this seems to be the effect, though the word- " dwelling-house to which the principal Act . . . applies are not very apt for the purpose, since the Acts do not, apart from this section, apply to houses let furnished. It may be indeed that on a strict interpretation this section has no application unless the house was on 3rd August, 1914. or has since been let unfurnished, and does not apply where there has never been a letting on 3rd August, 1914, or thereafter, except as a furnished house. The section i> retrospective, and the excess rent is recover- able for any period after 2nd April. 1919. whatever the date of the letting . Thi principal Ac! (see sect. 2, sub-8. >2 did not apply to 49 iettings of furnished houses, nor does the present section bring them within the general provisions of the Acts — furnished houses continue outside the general scope of the Acts, but are in some cases subjected to the much narrower provisions of this section. No additional security of tenure is gixen the tenant of a furnished dwelling-house, e.g. if he holds as weekly tenant the landlord can determine the tenancy by notice and the tenant must go — there is nothing to prevent the landlord suing for possession; the section only enables the County Court to in- validate a claim for rent beyond the specified limits during such period as the letting endures. The result will probably be in practice thai; landlords will refuse to let furnished houses except on weekly tenancies or quite short terms, and the tenant will therefore not find it worth his while to apply to the County Court, knowing that such action would mean an early termination of his tenancy with no chance of renewal. " Any period after the passing of this Act," i.e. after 2nd April, 1919. The section applies whenever the tenancy commenced, but only enables excess rent to be recovered by the tenant where it was paid in respect of a period after that date. The definition of normal profit may give rise to diffi- cult cases. In the case of a furnished house at the seaside, e.g. the rent and profit obtainable vary considerably according to the time of year. The words " similar letting " apparently involve a July let of 1919 being compared with a July let of 1914. For mode of application, see p. 69, post. 7. Amendment of definition of standard rent.—kt the end of paragraph (a) of subsection (1) of section two of the principal Act. the following words shall be inserted: — Provided that, in the case of any dwelling- house let at a progressive rent payable under a tenancy agreement or lease, the maximum rent payable under such tenancy agreemenl or lease shall be the standard rent. This section deals with cases of a progressive rent, i.e. a • which, beginning at a smaller figure, gradually rises from pear to year. Such cents are said to be Erequenl under various philanthropic building schemes for veteran soldiers and others. This provision enables the rent to "progress" aocording to the agreement unhampered by the restrictions of these Acts. 50 8. Exception of new houses, — Neither the principal Act nor this Act shall apply to houses erected after or in course of erection at the passing of this Act. Viz., 2nd April, 1919. 9 Application <>/' Act to Scotland. — In the application of this Act to Scotland — (a) the twenty-eighth day of May shall be sub- stituted for Lady Day and the local authority under the Public Health (Scot- land) Act, 1897, shall be substituted for the sanitary authority ; (b) as from the commencement of the extended period the principal Act shall be amended by the insertion in proviso (iv) of sub- section ( 1 ) of section one, after the word ' c dwelling-house" where first occurring therein, of the words " or where by the law of Scotland owners' rates are charge- able on the landlord of any dwelling- house.'" 10. Application of Act to Ireland. — In tin; application of this Act to Ireland — (a) the first day of May shall be substituted for Lady Day in the case of tenancies where the former day is the gale day ; (b) the medical officer of health of a dispensary district shall be substituted for the sanitary authority in section two of this Act, and the issue of certificates and the payment of fees in connexion with applications by tenants under the said section shall be subject to regulations to be made by the Local Government Hoard for Ireland. 11. Short title and construction. — T 'his Act ma)- be cited as the Increase of Rent and Mortgage Interest (Restrictions) Act, 1919, and shall be construed as one with the principal Act. 51 RULES. Rules for Ireland were made on the 2±th March, 1916. The Increase of Rent and Mortgage Interest (War Restrictions) Rules, 1916, dated January 29, 1916, made by the Lord Chancellor under the Increase of Rent and Mortgage Interest (War Restrictions) Act, 1915 (5 & 6 Geo. o, c. 97). Preliminary . The following Rules under the Increase of Rent and Mort- gage Interest (War Restrictions) Act, 1915 (in these Rules referred to as the Act), shall apply to the County Courts and to the City of London Court, which shall for the purposes of these Rules be deemed to be a county court. Rule 3 of these Rules, as to applications under the Courts (Emergency Powers) Act, 1914, shall apply also to the High Court; and the rules made under that Act shall have effect subject to that Rule. These Rules may be cited as the Increase of Rent and Mort- gage Interest (War Restrictions) Rules, 1916, and shall come into operation on the fourteenth day of February, 1916. Applications under Section 1, subsection 1, proviso (iii.); Section 1, subsection 4, pi-oviso 2; or Section 2, subsection 3. 1 . An application to the county court under the Act — a' to determine any question as to the increase of rent of a dwelling house to which the Act applies, pur- suant to proviso (iii.) to subsection 1 ol section 1; or (V to apportion the rent, or rateable value of the property in which any dwelling houso to which the Act applies is comprised, pursuant to subsection 3 of section 2, may be made to tlu rourl in the district of which ih" dwelling house is situate. 2. 1 An application to the county court under the Act 1'or an order authorising a mortgagee to call in and enforce a mortgage of a Leasehold interest to which the Act applies, pur- suant to the Becond proviso to subsecl ion 4 of section 1, may be made — (a) to the court in the district of which the mortgaged property is situate; or (b) to the court in the district of which the mortgagor resides or carries on business; or i the mortgagee resides or carries on business in the district of any court mentioned in section 84 of the County Courts Act, 1888, and the mortgagor resides or carries on business in the district of any other court mentioned in the said section, either to the court in the district of which the mortgagee resides or carries on business, or to the court in the district of which the mortgagor resides or carries on business. 3.- — (1) Subject to the provisions of this Rule, the Courts (Emergency Powers) Rules, 1914, and the County Courts (Emergency Powers) Rules, 1914, as to applications to the High Court or to the county court for leave to foreclose or realize any security to which the Courts (Emergency Powers) Act, 1914, applies, shall cease to apply to mortgages of leasehold interests to which the Increase of Rent and Mortgage Interest (War (Restrictions^ Act, 1915, applies: and this Rule shall apply in lieu thereof. L The Rules referred to are now replaced respectively by the Courts (Emergency Powers) Rules, 1918, and the Consolidated County Courts 'Emergency Powers) Rules. 1 9 1 8. By Rule 3 (2) (b) of the former applications to foreclose or realise in respect of mortgages of leasehold interests to which the Increase of Rent, &c. Act, 1915, applies are to he made to the < 'ounty Court.] 2 An application under the last preceding Rule for an order authorizing a mortgagee to call in and enforce a mortgage of a leasehold interest shall if and so far as an application for leave to foreclose or realize the security is required under the Courts (Emergency Powers) Act, 1914, be deemed to he also an appli- cation for leave to foreclose or realize the security under that Act, and no separate application under that Act shall be necessary . (3) If during the progress of the proceedings on any such application ii shall be made to appear to the court that the mortgage is one to which the Increase of Rent and Mortgage Interest (War Restrictions) Act, 1915, does not apply, but that leave to realize or enforce the security is required under the 53 Courts v Emergency Powers) Act. 1914, and that the amount of the principal sum secured hj the mortgage does not exceed five hundred pounds, the application may proceed in the county court as an application for leave to foreclose or realize the security under the last mentioned Act and the County Courts (Emergency Powers) Rules, 1914, and those rules shall apply accordingly ; but if the amount of the principal sum secured by the mortgage exceeds five hundred pounds the application shall not proceed under the last mentioned Act, unless the respondent consents to the county court having jurisdiction in the matter, in which case the court shall have jurisdiction to deal with the application as an application for leave to foreclose or realize the security under the last mentioned Act and Rules, and those Rules shall apply accordingly. [The Rules referred to are now the Consolidated County Courts (Emergency Powers) Rules. 1918.] (4) If it shall be made to appear to the court that the mort- gage is one to which neither of the above mentioned Acts applies, the application shall be struck out. 4. An application under these Rules shall be made by means of a summons according to such one of the forms in the Appen- dix as shall be applicable to the case, entitled " In the Matter of the Increase of Rent and Mortgage Interest (War Restric- tions) Act, 1915." ~P reparation, Filing, &c. of Summonses. 5 . The summons shall be prepared by the applicant and filed with the registrar, with as many copies as there are parties to be served: Provided that any summons, with the necessary copies, may, if the registrar so thinks fit, be prepared in his office: and the registrar shall examine, complete, seal, and sign the sum- mons and copies, and return the copies to the applicant for service . Service and Substituted Service. 6. — (1) The summons shall be served on every person affected thereby four clear days at least before the day fixed for the hearing of the summons, unless the judge or registrar gives leave for shorter service. [2 Service >shall lie further take Notice, that the grounds of my intended application are that the following circumstances have arisen since tho dau> of tho said determination [or order] which render it just i.7 that tho said determination [or order] should be suspended [dis- charged or variedj, viz.: — (here set out circumstances) Dated this day of , 19 . (Signed) Applicant [or Respondent], [or Applicant's [or Respondent's] Solicitor]. To (the respondent or applicant, naming him), and to Messrs. his solicitors, and to tho Registrar of the Court. 8. Order on Application for Suspension, Discharge, or Variation of Determination or Order. In tho Matter of tho Increase of Rent and Mortgage Interest (War Restrictions) Act, 1915. In the County Court of , holdon at No. of Application Between A.B. (address and description) Applicant, and CD. (address and description) Respondent. On tho application of for tho suspension [discharge or variation] of the determination [or order] made in this matter on tho day of , 19 , whereby it was determined [or ordered or declared] that (here recite determination or order) and upon hearing , It is ordered that tho said determination [or order] bo and tho same is hereby suspended [or discharged or varied] as follows: — (here set out terms of order for suspetision, discharge, or variation) 68 [Or, It is orderod that the application of the said bo and the same is hereby dismissed.] Add order as to costs, if any : see Form 6.] Dated this day of , 19 . By the Court, Registrar. To (the applicant and the respondent, naming them). 69 The Increase of Rent and Mortgage Interest (Restrictions) Rules, 1919, dated 21 May, 1919, made by the Lord Chan- cellor UNDER THE INCREASE OF RENT AND MORTGAGE INTE- REST (Restrictions) Act, 1919. County Courts, England. 1. The Increase of Rent and Mortgage Interest (War Restric- tions) Rules, 1916 (herein referred to as the principal Rules), shall with the necessary modifications apply to proceedings in the County Courts or the City of London Court with respect to houses or parts of houses or mortgages to which the Increase of Rent and Mortgage Interest (War Restrictions) Act, 1915 (in these Rules referred to as the principal Act), and the enactments amending that Act are extended by the Increase of Rent and Mortgage Interest (Restrictions) Act, 1919 (in these Rules re- ferred to as the Act of 1919). (2) In any such proceedings references in the said Rules to "the Act " shall be construed as referring to the principal Act and the enactments amending and extending the same; and the words "and the enactments amending and extending the same" shall be added in the forms in the Appendix to the said Rules after the words "In the Matter of the Increase of Rent and Mortgage Interest (War Restrictions) Act, 1915." 2. — (1) An application to the County Court under section 6 of the Act of 1919 may be made to the Court in the district of which the dwelling-house in relation to which the application is made is situate. (2r) Such application shall be made by means of a summons according to the form in the Appendix. (3) Particulars shall be appended or annexed to i!i<> sUvttinions according to the form in the Appendix. (4 I The provisions of the principal Rules as to an application to determine any question a- to the increase of rent of a dwelling- house shall apply to applications under this Rule, with the omis- sion of the word " standard " in paragraph (1) of Rule 16. (5) An order on an application under this Rule shall bo accord- ing to the form in the Appendix. 3. These Rules may be cited as the Increase of Rent and Mort- gage Interest (Restrictions) Rules, 1919, and shall be read and construed with the principal Rules, and shall come into operation on the 26th day of May, 1919. The 21st day of May, 1919. (Signed") Birkenhead, C. APPENDIX. 9. Summons on Application under Section 6 of the Increase of Rent and Mortgage Interest (Restrictions) Act, 1919. In the County Court of , holden at Iu the Matter of the Increase of Kent and Mortgage Interest (War Restrictions) Act, 1915, and the enactments amending and extending the same. No. of Application Between A.B. (address and description) and Applicant, CD. (address and description) Take Notice, that you Court on , the of in the on the part of hereunto annexed. And further take notice, that if you do not attend in person or by your solicitor at the time and place above mentioned, such proceedings will be taken and order made as the Court may think just. Dated this day of , 19 . Respondent. are hereby summoned to attend this day of , 19 , at the hour noon, on the hearing of an application of , the particulars of which are To (the respondent, naming him). By the Court, Registrar. Particulars. [To be appended or annexed to summons and, if on separate paper, with heading as in summons.] 1. On or about the day of , 19 , the respondent, the occupier of a certain dwelling-house [or of part, that is to say (here specify the part) of a certain dwelling-house] situate at and known as and being a dwelling-house to which the Increase of Rent and Mortgage Interest (War Restric- tions) Act, 1915, and the enactments amending and extending the same apply, let the said dwelling-house r or a part of the said 71 dwelling-house, that is to say (here specify the part)} to the applicant at a rout of a week [or a month, or as the case may be] , which rent includes payment in respect of furniture. 2. The applicant alleges that the rent charged for the premises so let to him yields to the respondent a profit more than 25 par cent, in excess of the profit which might reasonably have been obtained from a similar letting in the year ending on the 3rd day of August, 1914. 3. The applicant therefore applies to the Court under sect. 6 of the Increase of Rent and Mortgage Interest (Restrictions) Act, 1919— (a) for a declaration that it is proved to the satisfaction of the Court that the rent charged on the letting of the said premises by the respondent to the applicant yields to the respondent a profit more than 25 per cent, in excess of the profit which might reasonably have been obtained from a similar lotting in the year ending on the 3rd day of August, 1914, and for an assessment by the Court of the amount of such last-mentioned profit; and (b) for an order that the said rent, so far as it exceeds such sum as would yield such last-mentioned profit and 25 per cent, thereon, shall be irrecoverable; and (c) for an order that the amount of any payment of rent in excess of such sum made by the applicant in respect of any period after the passing of the said Act shall be repaid to the applicant, and may, without prejudice to any other mode of recovery, be recovered by the applicant by means of deductions from any subsequent payment of rent; and (d) for an order providing for the costs of this application. Dated this day of , 19 . Applicant. [or Applicant's Solicitor]. n 10. Order on Application under Section 6 of the Increase of Heat and Mortgage Interest {Restrictions) Act, 1919. In the County Court of , holdcn at In the Matter of the Increase of Rent and Mortgage Interest (War Restrictions) Act, 1915, and the enactments amonding and extending the ^ame. No. of Application Between A.B. (address and description) A pplicant, and CD. (address and description) Respondent. On the application of for an order under section 6 of the Increase of Rent and Mortgage Interest (Restrictions) Act, 1919, and upon hearing The Court doth declare that it is proved to its satisfaction that the rent charged on the letting by the respondent, the occupies to the applicant of a certain dwelling-house [or a part, tha. Lease, fine on granting, 6, 18. 33. Leaseholds, mortgages of, when enforceable, 23. procedure to enforce, 52. Liability, transfer of, to tenant, 5, 13. to landlord, 13. Lodgers, Act not applicable to, 8, 26. 77 Mortgages, action on covenant, 21. conditions on enforcement of, 55. consent to enforcement of, 9, 20. Courts (Emergency Powers) Acts, 10, 21, 23. equitable, whether within Act, 8, 10, 28, 29. foreclosure by, 20, 21, 23. ground rents, 8, 30. instalments, repayable by, 10, 22. interest not to be increased, 11, 41, 43 raised before War, 15, 16. leaseholds, 10, 23, 52. personal occupation of mortgagor, 26. possession, mortgagee in, 10, 22. • •• taking of, by mortgagee, 21 receiver, appointment of, 21. restrictions on enforcement of, 9, 20, 45. sale by, 21. standard interest, 23. transfer of, 24, 25. what within Act, 8, 21, 22, 23, 28, 29 Notice, defects in, 17. fresh, not necessary on change of tenant, 17. when rent raised for improvements or rates, 16 Nuisance, recovery of premises for, 18. rPATION, possession required by landlord for his own, 6, 7, 17, l°>. 36, 46. r'.RS, ejectment, restriction on making, 18, 36, 4»> making of, 55, 57. ocation or variation of, 55, Kiim'aid Rent on Interest, recovery of, 33, 34, 38 78 I OSSBSSION, mortgage*; id, vsale by, 10, 2U mortgagor in personal, 26 recovery of. by landlord, 6, 18, 86—88. 46 by mortgagee. 21 . Premium on Lease, 6, 17, 33 Private. hearing in, 54. procedure on applications, 66. Progressive Rents, 49 public-house within the Acts. 26 PllKCHASER, restriction* on ejectment bv 6. 7. 20. 36 — 38. 46 h AISING interest, meaning of, 3 restriction on, 9, 11, 43. rent, meaning of, 2. restriction on, 4, 5, 11, 43. when allowed, 5, 12—17. 40. 44. Rateable Value, meaning of, 25. sometimes constitutes standard rent, 45. Kates, notice to be given when rent raised for. 16. raising rent for increased, 14, 15. Receiver, appointment of, 21 Recovery, fine or premium, 17. overpaid rent or interest, 33, 34, 38. possession by landlord, 18. by mortgagee, 21 Registrar, applications to, 54. reference to judge, 54. rescission by judge, 54. 79 Kent, increase of, not recoverable, 4, 5, 12, 43. ground, 5, 30. less than two-thirds of rateable value, 5, 29. 30, 35. standard, 23, 24, 45, 49. when increase allowed, 5, 12 — 17, 40, 44. REPAIRS, how far ground for raising rent, 6, 12, 13, 14. Rescission of ejectment order, 17, 37, 58. orders, 55. Respondent, non-appearance of, 55. Revocation of Orders, 55. Room, single, may be dwelling-house, 26, 47. furnished, 48, 49. Rules, authority to make, 30. Sau b-? Mortgagee, 20, 21 Scotland, application of Act to, 30, 31, 50. Service of Summons, 53. Shop, whether within the Act, 26. " Small Dwelling-House," 4 Standard rate of interest, 9, 24. rent, 23, 24, 45, 49. statement as to, 46 Street Improvements, raising rent for, 13. 80 StROCTURAL A [/TERATIONS, raising rent for, 13. substituted service, 515 Summons, forms of, 57, 70. preparation and filing of, 53 service of, 53 Termination of the War," 11, 39. Transfer, mortgage 24, 25. proceedings, 54 Waste, lecovery of premises on account of, 7, 18 Water Rents and Charges, 14 :X)NUON: I'KINTED BV 0. P. ROWORTII. 88, FETTKtt LANK, 8.0, BWVERSITY of CALIFO: AT LOS ANGELES LIBRARY UNIFORM WITH THIS PAMPHLET. Price 3s. 6d. net Post free, 3s. 9d. 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