Section Sch3-4 — Property Law Act 2007: Payment of rent

4 Payment of rent (1) The lessee will pay the rent payable under the lease when it falls due. (2) However, if the leased premises or any part of them are destroyed or damaged by any of the causes specified in subclause (3) to the extent that they become unfit for occupation and use by the lessee, the rent and any contribution payable by the lessee to the outgoings on those premises will abate, in fair and just proportion to the destruction or damage, until those premises— (a) have been repaired and reinstated; and (b) are again fit for occupation and use by the lessee. (3) The causes referred to in subclause (2) are— (a) fire, flood, or explosion (whether or not the fire, flood, or explosion is caused, or contributed to, by the lessee’s negligence); or (b) lightning, storm, earthquake, or volcanic activity; or (c) any other cause the risk for which the lessor has insured the premises. (4) Despite subclause (2), the lessee is not entitled to the abatement referred to in that subclause if, and to the extent that, any insurance moneys that would otherwise have been payable to the lessor for the destruction of or damage to the leased premises cannot be recovered because of an act or omission of— (a) the lessee; or (b) the lessee’s agent, contractor, or invitee; or (c) any other person under the lessee’s direction or control. (5) Any dispute arising under this clause will be referred to arbitration under the Arbitration Act 1996 . Compare: 1952 No 51 ss 106 , 107