England's parliament passed the Tenant and Landlord Act in 1954 in order to protect the rights of landlords and tenants throughout the United Kingdom.
Sections 29 to 38 of the Tenant and Landlord Act describe cases where a tenant applies to the courts for a renewed term at his property, due to the landlord wishing to evict the tenant at the end of his current lease.
Section 34 describes the factors that can go into how much rent is paid if the renewed term is approved. The entire section was replaced by amendments in the 1969 Law of Property Act and 1995 Landlord and Tenant Covenant Act.
If the tenant is successful in her appeal to the courts, Part One of Section 34 states that the tenant and the landlord can either agree to a fair rent price or the court can make a fair open market rent price. However, the court must disregard four things: any effect the tenant or her predecessors have had while occupying the property, any sentimental value attached to the property, any improvements described in Part Two of the section and any benefit licenses such as a liquor license for a pub may give.
According to Part Two of Section 34, the court can take into account improvements when determining a price, unless the improvements were made by a tenant within the past 21 years, it has been improved as part of a business venture and that any prior tenants did not leave the improvements to the landlord. This part exists to ensure that landlords don't benefit unduly from the sweat equity of their tenants in a forced court settlement.
Part Three simply states that there may be provisions for varying the rent over time.
The fourth and final part of Section 34 refers to Schedule One, Paragraph Three, of the Landlord and Tenants (Covenants) Act of 1995, which is an amendment to the Landlord and Tenant Act regarding particular agreements between the landlords and tenants.
While the description of rent criteria in a court ordered new tenancy agreement occurs in Section 34, similar parts of a lease can be found in Section 33 regarding how long the lease will be for, the definition of the property in Section 32, miscellaneous terms of the lease in Section 35 and fulfilling the lease in Section 36.