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ARRANGEMENT OF CLAUSES.

Clause.

1. Tenant's right to compensation for improvements.

2. Limitation of tenant's right in certain cases.

3. Landlord's right to object.

4. Conditions of compensation.

5. Compensation for unreasonable disturbance. 6. Continuity of possession.

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BILL

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Provide improved conditions and continuity of A.D. 1926. possession for tenants of certain houses, shops and other buildings in England and Wales.

E it enacted by the King's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, 5 as follows:

tion for

1. Subject to the provisions of this Act, a tenant of Tenant's a holding to which this Act applies may, on quitting his right to holding, claim, in the prescribed manner, compensation compensato be paid by the landlord in respect of all improvements improve10 on his holding made by him or his predecessors in title ments. which at the date of such claim add to the letting value of the holding, and are suitable to the character of the holding: Provided always that the sum to be awarded as compensation for any improvement shall, in no case, 15 exceed the capitalised value of such addition to the letting value of such holding as the tribunal shall determine to be the direct result of such improvement.

certain

2.—(1) A tenant of a holding who is quitting it shall Limitation not be entitled to any compensation in respect of any of tenant's 20 improvement when it appears to the tribunal that the right in landlord has made an offer, which in the opinion of the tribunal is reasonable, of a new tenancy or of the continuance or renewal of the tenancy, with the right to the

cases.

A.D. 1926. tenant to dispose of his interest therein, and the tenant has not accepted the offer.

Landlord's right to object.

(2) A tenant shall not be entitled to any compensation in respect of any improvement made either before or after the passing of this Act which the landlord had 5 undertaken to make, except in cases where the landlord has failed to perform his undertaking within the time agreed on between him and the tenant, or within a time which, in the opinion of the tribunal, is a reasonable time.

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3.—(1) Where a tenant of a holding proposes after the passing of this Act to make improvements in his holding he shall send to his landlord notice, in the prescribed manner, of his intention to make such improvements, together with a specification and plan 15 of the proposed improvements, and if the landlord or his known agent does not, within three months after the receipt of the notice, send notice of objection in the prescribed manner to the tenant, the tenant may proceed to make the proposed improvements; but, if 20 the landlord or his agent sends such notice objecting to all or any of the improvements, the tenant may, in the prescribed manner, apply to the tribunal, and the tribunal may, if satisfied that the improvement will add to the letting value of the holding, and is reasonable 25 and suitable to the character thereof, sanction all or any of the proposed improvements, making such modifications in the specification or plan as the tribunal thinks fit.

(2) Provided always that the landlord may, at any time after receiving the tenant's notice or during the 30 hearing by the tribunal or after the decision of the tribunal, undertake to execute the improvement himself, and may execute the same in a reasonable and proper manner, and charge the tenant with a sum not exceeding five pounds per centum per annum on the outlay 35 incurred in executing the improvement, or at the election of the tenant not exceeding such annual sum payable for a period of twenty-five years as will repay such outlay in the said period, with interest at the rate of three pounds per centum per annum. Any annual sum 40 charged against a tenant under this subsection shall be recoverable as rent.

(3) A tenant shall not be entitled to claim compensation in respect of any improvements made after the

passing of this Act unless he has given notice thereof A.D. 1926. under this section, and (in case the landlord has given notice of objection thereto) the improvements have been sanctioned by the tribunal: Provided that where any 5 sanitary or other public authority in exercise of its statutory powers requires the owner or occupier to make any improvements or execute any works in the holding, the occupier, upon the landlord's default, may make or execute (subject to the provisions of the preceding sub10 section) such improvements or works, and such improvements or works shall be deemed to be improvements within the meaning of this Act.

4. Where, in the case of any holding, there are Conditions several persons standing in the relation to each other of of compen15 landlord and tenant, the following provisions shall sations. apply:

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25

30

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Any mesne landlord against whom a claim arises

under this Act shall, at the end of his term, be
entitled to claim compensation against his
immediate landlord in like manner and on the
same conditions as if he had himself made the
improvements in question. A mesne landlord
shall not be entitled to make a claim under this
section unless he has, within the time and in the
manner prescribed, sent to his immediate land-
lord or his agent copies of all documents relating
to proposed improvements or claims which have
been sent to him, in pursuance of the last
preceding section. The said immediate land-
lord shall thereupon have, in addition to the
mesne landlord, the powers conferred by or in
pursuance of the last preceding section in like
manner as if he were the immediate landlord of
the occupying tenant, and shall, in the manner
and to the extent prescribed, be bound by the
proceedings.

unreasonable dis

5.-(1) Where the landlord, without good and Compensasufficient cause, terminates or refuses to grant a renewal tion for of the tenancy, or it is proved that an increase of rent 40 is demanded from the tenant as the result of improve- turbance. ments which have been effected at the cost of such tenant, and for which he has not, either directly or indirectly, received an equivalent from the landlord, and

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