This paragraph applies where the tenancy of a dwelling-house came to an end at a time before 22nd March 1973 and the tenancy would have been a regulated tenancy, for the purposes of the M1Rent Act 1968, if section 14 of the M2Counter-Inflation Act 1973 had been in force at that time.

If the tenant under the tenancy which came to an end duly retained possession of the dwelling-house after 22nd March 1973 without any order for possession having been made, or after the rescission of such an order, he shall be deemed to have done so under a statutory tenancy arising on the termination of the tenancy which came to an end and, subject to sub-paragraph (6) below the terms of that tenancy (including the rent) shall be deemed to have been the same as those of the tenancy which came to an end.

Any statutory tenancy arising by virtue of sub-paragraph (2) above, shall be treated as a statutory tenancy arising on the termination of a protected tenancy which was a regulated tenancy.

Where Article 10 of the M3Counter-Inflation (Rents) (England and Wales) Order 1972 applied to the rent under the tenancy, the rent under the tenancy imposed by sub-paragraph (2) above shall be the rent as limited by Article 10.

Schedule 7 to this Act shall not apply to a statutory tenancy arising under sub-paragraph (2) above.

The High Court or the county court may by order vary all or any of the terms of the tenancy imposed by sub-paragraph (2) above in any way appearing to the court to be just and equitable (and whether or not in a way authorised by the provisions of sections 46 and 47 of this Act).

If at 22nd March 1973 the dwelling-house was occupied by a person who would, if the tenancy had been a regulated tenancy, have been the “first successor” within the meaning of paragraph 4 of Schedule 1 to the M4Rent Act 1968 (which is re-enacted in Schedule 1 to this Act), sub-paragraphs (2), (4) and (5) above shall apply where that person retained possession as they apply where the tenant retained possession.