Fair Rent Determination for a Property Under the Rent Act 1977

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. LON/00BC/F77/2024/0171

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were Ground floor flat, 175 [ADDRESS] [POSTCODE]

[NAME] Mr [RESPONDENT]

Landlord Mr [APPELLANT] & Mrs [APPELLANT] c/o [NAME]

Tenant Mr [APPELLANT]

1. The fair rent is £700 Per Month (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 23 October 2025

3. The amount for services is

Per

None

4. The amount for fuel charges (excluding heating and lighting of common parts) not counting for rent allowance is

Per

None

5. The rent is not to be registered as variable.

6. The capping provisions of the Rent Acts (Maximum Fair Rent) Order 1999 apply (please see calculation overleaf).

7. Details (other than rent) where different from Rent Register entry

Mr [APPELLANT] is the tenant following the passing of Ms [APPELLANT] on the 5 June 2024.

8. For information only:

(a) The fair rent to be registered is not limited by the Rent Acts (Maximum Fair Rent) Order 1999, because it is below the maximum fair rent of £838 per month.

[NAME] of decision 23 October 2025

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 407.7

PREVIOUS RPI FIGURE Y 317.7

X 407.7 Minus Y 317.7 = (A) 90

(A) 90 Divided by Y 317.7 = (B) 0.28

First application for re-registration since 1 February 1999 - NO

If yes (B) plus 1.075 = (C) N/A

If no (B) plus 1.05 = (C) 1.33

Last registered rent* 630 Multiplied by (C) = 837.90 *(exclusive of any variable service charge)

Rounded up to nearest 50p = 838

Variable service charge No If YES add amount for services

MAXIMUM FAIR RENT = 838 Per Month

Explanatory Note

1. The calculation of the maximum fair rent, in accordance with the formula contained in the Order, is set out above.

2. In summary, the formula provides for the maximum fair rent to be calculated by:

(a) increasing the previous registered rent by the percentage change in the retail price index (the RPI) since the date of that earlier registration and

(b) adding a further 7.5% (if the present application was the first since 1 February 1999) or 5% (if it is a second or subsequent application since that date).

A 7.5% increase is represented, in the calculation set out above, by the addition of 1.075 to (B) and an increase of 5% is represented by the addition of 1.05 to (B).

The result is rounded up to the nearest 50 pence.

3. For the purposes of the calculation the latest RPI figure (x) is that published in the calendar month immediately before the month in which the Tribunal’s fair rent determination was made.

4. The process differs where the tenancy agreement contains a variable service charge and the rent is to be registered as variable under section 71(4) of the Rent Act 1977. In such a case the variable service charge is removed before applying the formula. When the amount determined by the application of the formula is ascertained the service charge is then added to that sum in order to produce the maximum fair rent.

1

Case Reference

: LON/00BC/F77/2024/171

Property : [ADDRESS] [POSTCODE]

Tenant

: Mr [APPELLANT]

Landlord : Mr [COUNSEL] & Mrs [COUNSEL] c/0 [COMPANY] : None

Date of Landlords Objection : 27 February 2024

Type of Application : Section 70, Rent Act 1977

Tribunal

: Mr [NAME] Mr [NAME] of Summary Reasons : 23 October 2025

_______________________________________________

DECISION

The sum of £700 per calendar month will be registered as the fair rent with effect from 23 October 2025, being the date, the Tribunal made the Decision. ____________________________________

© CROWN COPYRIGHT 2024 FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2

SUMMARY REASONS

Background

1. Following an objection from the Landlord to the determination of a fair rent by the Rent Officer, the Tribunal has made a determination under the provisions of the Rent Act 1977.

2. Since the registration of the rent by the Rent Officer on the 30 January 2024 the tenant Ms [APPELLANT] passed away on the 5 June 2024 and Mr [APPELLANT] became the tenant by way of succession.

4. During the course of the proceedings, the tenant and his nephew Mr [APPELLANT] originally asked for the application to be withdrawn. Subsequently, the Tribunal received an Application for Case Management for the case to be reinstated and an extension of time given. This request was agreed by the Tribunal.

3. The parties did not request a hearing to determine this matter and the Tribunal agreed with this arrangement. The Tribunal considered this case on the basis of the papers provided by the parties and the Rent Officer with the assistance of Rightmove and Google Maps.

The Inspection

4 The Tribunal inspected the property on the 23 October 2025 in the presence of the tenant Mr [APPELLANT].

Evidence

5. The Tribunal received completed Reply Statements from the parties. In addition, the Landlord’s agent provided comparable evidence of rental levels in the area which range between £1,300-£1,400 per month together with a helpful floor plan. The Tribunal had before it, the Rent Officers two Registrations and calculations for the most recent registration on the 30 January 2024 to take effect on the 16 February 2024.

Determination and Valuation

6. Having consideration of the Landlords evidence and our own expert, general knowledge of rental values in the Seven Kings area, we consider that the open market rent for the property in its current condition would be in the region of £1,250 per month From this level of rent we have made adjustments in relation to:

3 Terms of tenancy agreement, no white goods, no carpets or curtains, tenant’s improvements which include replacement kitchen units, shower cubicle and shower unit, landscaped rear garden with artificial grass and external redecoration, This equates to approximately 30%

The Tribunal has also made an adjustment for scarcity at 20%

The full valuation is shown below:

Market Rent £1,250 pm

Less

approx. 30% £375

£875

Less Scarcity

approx. 20%

£175

£700 pm

Decision

6. The uncapped fair rent initially determined by the Tribunal, for the purposes of section 70, was £700 per calendar month. The capped rent for the property according to the provisions of the Rent Acts (Maximum Fair Rent) Order 1999 is calculated at £838 per calendar month. The calculation of the capped rent is shown on the decision form.

7. In this case therefore the lower rent of £700 per calendar month is to be registered as the fair rent for this property.

Chairman: [NAME]: 23 October 2025

4

APPEAL PROVISIONS

These summary reasons are provided to give the parties an indication as to how the Tribunal made its decision. If either party wishes to appeal this decision, they should first make a request for full reasons and the details of how to appeal will be set out in the full reasons. Any subsequent application for permission to appeal should be made on Form RP PTA