Fair Rent Determination for Property Condition and Scarcity

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. LON/00BC/F77/2025/0246

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 191A [ADDRESS] [POSTCODE]

Judge P [NAME] Ms M Bygrave MRICS

Landlord [NAME]

Tenant [APPELLANT]

1. The fair rent is £249.23 Per week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 30 October 2025

3. The amount for services is - Per -

not applicable

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

- Per -

not applicable

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

8. For information only:

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 £273.50 per week prescribed by the Order.

Chairman Judge P [NAME] of decision 30 October 2025

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 406.1

PREVIOUS RPI FIGURE Y 375.3

X 406.1 Minus Y 372.8 = (A) 33.3

(A) 33.3 Divided by Y 372.8 = (B) 0.08932403

First application for re-registration since 1 February 1999 NO

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.13932403

Last registered rent* £240.00 Multiplied by (C) = £273.437768 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £273.50

Variable service charge NO If YES add amount for services

MAXIMUM FAIR RENT = £273.50 Per week

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/F77/2025/0246

Property : 191A [ADDRESS] [POSTCODE]

Tenant

: [APPELLANT]

Landlord : [RESPONDENT] [NAME] of Objection : 10 July 2025

Type of Application : Section 70, Rent Act 1977

Tribunal

: Judge P [NAME] Ms M Bygrave MRICS

Date of Reasons

: 30 October 2025

_______________________________________________

DECISION

The sum of £249.23 per week will be registered as the fair rent with effect from 30 October 2025, being the date on which the Tribunal made the Decision. ____________________________________

© CROWN COPYRIGHT 2025

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2 REASONS

Background 1. Following an objection from the Tenant 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.

No Inspection 2. In line with current procedures, the Tribunal has not inspected the Property as neither party has requested an inspection.

Evidence 3. The Tribunal has considered the findings of the Rent Officer and the other documentation provided to it. Neither party provided its own comparable evidence.

Determination and Valuation 4. With the benefit of our own general knowledge of rental values in the area as an expert Tribunal, our view is that the open market rent for the Property would be in the region of £415.38 per week if it was in good condition. From this level of rent we have made adjustments to reflect the actual condition of the Property and other relevant factors.

Overall we have made a deduction of 25% to reflect the following: the bathroom being dated and in need of repair, the existence of rodent infestation and the entrance way being filled with rubbish and furniture and having attracted rodents.

5. We have also made a 20% deduction for scarcity.

6. The full valuation is shown below:

per week Market Rent

£415.38

Less Deduction of 25% to reflect poor condition etc

£103.84

____ NEW SUB-TOTAL

£311.54

Less Scarcity at approx. 20%

£62.31

____ TOTAL

£249.23

3 7. Therefore the uncapped fair rent initially determined by the Tribunal, for the purposes of section 70, was £249.23 per week.

8. The Property qualifies for capping, and the capped rent for the Property according to the provisions of the Rent Acts (Maximum Fair Rent) Order 1999 is calculated at £273.50 per week. The calculation of the capped rent is shown on the decision form.

9. In this case the uncapped fair rent is lower than the capped rent and therefore the amount of £249.23 per week is to be registered as the fair rent for the Property.

Chairman: Judge P [NAME]: 30 October 2025