Opening proviso - this post is offered in good faith. To my knowledge, the provision has not been repealed (NB:refs to regs etc are pre-consolidation (i.e. as the regs stood at 5 March 2006)).
The relevant provision is Reg 10(5A) of The Housing Benefit (General) Amendment Regulations 1995 . This states:
------------------------------------ The eligible rent of a person to whom regulation 7B of and Schedule A1 of the principle Regulations (entitlement to housing benefit by refugees) apply, shall be determined in accordance with regulations 10 and 11 of the principle Regulations as in force on 1st January 2006.
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This is not to be confused in any way with the provisions for "exempt accommodation" / supported housing cases.
Also, this provision does not mean rents cannot be restricted. However, it does mean that rent must be considered under "old" Reg 10 and any potential restriction must be considered under "old" Reg 11.
Regards
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