Fair Rent Determination for Property Under Rent Act 1977

OUTCOME: Allowed

Case Reference : CAM/33UC/F77/2025/0029

P:PAPERREMOTE

Property : [ADDRESS] old Catton Norwich [POSTCODE]

Applicant: [redacted]

Respondent

: [redacted] : 2 July 2025

Type of Application : Determination of the registered rent under Section 70 Rent Act 1977

Tribunal

: Mrs [NAME] and venue of : 2 October 2025 Hearing remote on the papers

_______________________________________________

DECISION ____________________________________

This has been a hearing on the papers which has not been objected to by the parties. A face to face hearing was not held because, no-one requested the same and I determined that the matter could be dealt with on the papers. The documents which I was referred to were in a bundle the contents of which I have recorded. The registered rent with effect from 2 October 2025 is £158 per week inclusive of £5 per week service charge.

© CROWN COPYRIGHT 2025

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Background

1. On 30 April 2025 the landlord applied to the rent officer for registration of a fair rent of £171.54 per week for the above property.

2. The registered rent at the date of the application was £156 per week inclusive of £3.51 service charge which had been registered by the rent officer on 4 June 2023 with effect from 4 August 2023.

3. On 26 June 2025, the rent officer registered a fair rent of £166 per week inclusive of £3.17 per week service charge with effect from 4 August 2025.

4. The landlord objected to the amount of the service charge included in the registered rent on 2 July 2025.

5. The tribunal issued Directions on 1 August 2025. Written representations were received from both the landlord no response was received from the tenant.

The Evidence

6. The landlord stated that the rent which the tenant was being charged was below the registered rent. Their only concern was the amount of the service charge, they provided a copy of the budget for 2025-26. The total cost for grounds maintenance attributable to the subject property was £259.83 per year.

7. The tenancy agreement provided for a service charge to be included in the rent for the following services: resident caretaker, garden maintenance and cleaning and lighting of communal areas.

The Law

8. When determining a fair rent I, in accordance with section 70 of the Rent Act 1977, must have regard to all the circumstances including the age, location and state of repair of the property. I also must disregard the effect of any relevant tenant’s improvements and the effect of any disrepair or any other defect attributable to the tenant or any predecessor in title under the regulated tenancy, on the rental value of the property. I am unable to take into account the tenant’s personal circumstances when assessing the fair rent.

9. In [COMPANY] v Chairman of the Greater Manchester etc Committee (1995) 28 HLR 107 and [NAME] v [NAME] (1999) QB 92 the Court of appeal emphasised:

That ordinarily a fair rent is the market rent for the property discounted for scarcity i.e. that element, if any, of the market rent, that is attributable to there being a significant shortage of similar properties in the wider locality available for letting on similar terms to that of a regulated tenancy, and

That for the purposes of determining the market rent, assured tenancy market rents are usually appropriate comparables; adjusted as necessary to reflect any relevant differences between the comparables and the subject property.

Valuation 10. The subject property is a semi-detached house, there are no internal communal areas. The budget does not include an amount for a caretaker.

11. In the first instance I determined what rent the landlord could reasonably be expected to obtain for the property in the open market if it were let today in the condition and on the terms considered usual for such an open market letting. I relied on the evidence provided by the parties and my own general knowledge of rents within Old Catton and nearby areas and concluded that if the house were in the condition usually found on the open market it would let for £250 per week.

12. However, it was first necessary to adjust the hypothetical rent of £250 per week to allow for the differences between the terms and condition considered usual for such a letting and the condition of the actual property at the valuation date, ignoring any tenant’s improvements, (disregarding the effect of any disrepair or other defect attributable to the tenant or any predecessor in title). I determined that the hypothetical rent should be reduced by £75 to reflect no central heating, lack of modernisation, floor coverings, curtains and white goods and difference in terms and conditions.

13. This leaves an adjusted market rent for the subject property of £175 per week. I am of the opinion that there is substantial scarcity for similar sized properties in Norfolk and therefore made a deduction of approximately 10% for scarcity. The uncapped fair rent is £158 per month inclusive of £5 per week service charge.

14. The fair rent is the maximum rent the landlord may charge.

Decision

15. The uncapped fair rent initially determined for the purposes of section 70, is below the maximum fair rent of £177 per week calculated under the Rent Acts (Maximum Fair Rent) Order 1999. Therefore, the rent will not be capped under the provisions of the Order.

16. Accordingly, the sum of £158 per week will be registered as the fair rent with effect from 2 October 2025 being the date of my decision.

Chairman: [NAME]: 2 October 2025

ANNEX - RIGHTS OF APPEAL

By rule 36(2) of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013, the Tribunal is required to notify the parties about any right of appeal they may have. If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber), then a written application for permission must be made to the First-tier Tribunal at the Regional Office which has been dealing with the case. The application should be made on Form RP PTA available at https://www.gov.uk/government/publications/form-rp- pta-application-for-permission-to-appeal-a-decision-to-the-upper-tribunal-lands- chamber The application for permission to appeal must arrive at the Regional Office within 28 days after the Tribunal sends written reasons for the decision to the person making the application. If the application is not made within the 28-day time limit, such application must include a request for an extension of time and the reason for not complying with the 28-day time limit; the Tribunal will then look at such reason(s) and decide whether to allow the application for permission to appeal to proceed, despite not being within the time limit. The application for permission to appeal must identify the decision of the Tribunal to which it relates (i.e. give the date, the property and the case number), state the grounds of appeal and state the result the party making the application is seeking. Please note that if you are seeking permission to appeal against a decision made by the Tribunal under the Rent Act 1977, the Housing Act 1988 or the Local Government and Housing Act 1989, this can only be on a point of law. If the First-tier Tribunal refuses to grant permission to appeal, a further application for permission may be made to the Upper Tribunal (Lands Chamber).

FR27 First-tier Tribunal – Property Chamber File Ref No. CAM/33UC/F77/2025/0029

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were [ADDRESS] old Catton Norwich [POSTCODE]

[NAME]

Landlord [COMPANY]

Tenant [APPELLANT]

1. The fair rent is £158 Per week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 2 October 2025

3. The amount for services is £5 Per week

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

Semi detached house comprising four rooms, kitchen, bathroom/wc and separate wc.

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 £177 per week prescribed by the Order.

Chairman E [NAME] of decision 2 October 2025

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 407.7

PREVIOUS RPI FIGURE Y 376.4

X 407.7 Minus Y 376.4 = (A) 31.3

(A) 31.3 Divided by Y 376.4 = (B) 0.083156

First application for re-registration since 1 February 1999 NO

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.133156

Last registered rent* £156 Multiplied by (C) = £176.77 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £177

Variable service charge NO If YES add amount for services

MAXIMUM FAIR RENT = £177 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.