Fair Rent Determination for Property Under Rent Act 1977

OUTCOME: Allowed

FR24 First-tier Tribunal – Property Chamber File Ref No. TR/LON/00BK/F77/2023/0414

Notice of the Tribunal [NAME] 1977 Schedule 11

Address of Premises The Tribunal members were [ADDRESS], [POSTCODE]

Judge Shepherd [APPELLANT]

Tenant Ms [APPELLANT]

1. The fair [NAME] is £13, 498.50 Per Year (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 06 February 2024

3. The amount for services is £1918.72 Per annum

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

N/A Per

negligible/not applicable

5. The [NAME] is not to be registered as variable.

6. The capping provisions of the [NAME] ([NAME]) Order 1999 apply (please see calculation overleaf).

7. Details (other than [NAME]) where different from [NAME] entry

8. For information only:

(a) The fair [NAME] to be registered is the maximum fair [NAME] as prescribed by the [NAME] ([NAME]) Order 1999. The [NAME] that would otherwise have been registered was £17518.72 per annum including £1918.72 per annum for services (variable).

Chairman Judge Shepherd Date of decision 6th February 2024

FR24 [NAME] FIGURE X 379

PREVIOUS RPI FIGURE Y 314.3

X 379 Minus Y 314.3 = (A) 64.7

(A) 64.7 Divided by Y 314.3 = (B) 0.20585428

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

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.25585428

Last registered [NAME]* £10748.21 Multiplied by (C) = £13498.1855 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £13498.50

Variable service charge NO If YES add amount for services £1918.72

[NAME] = £15,417.22 Per Annum

Explanatory Note

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

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

(a) increasing the previous registered [NAME] 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 [NAME] determination was made.

4. The process differs where the tenancy agreement contains a variable service charge and the [NAME] is to be registered as variable under section 71(4) of the [NAME] 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 [NAME].

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Case Reference

: LON/00BK/F77/2023/0414

Property : [ADDRESS], [POSTCODE]

Tenant

:

Ms [APPELLANT] [NAME]

Landlord : [APPELLANT] of Application : Section 70, [NAME] 1977

Tribunal : Judge Shepherd and Sarah Phillips MRICS

Date of Summary Reasons

: 13th February 2024

_______________________________________________

DECISION

The sum of £13498.50 per annum will be registered as the fair [NAME] with effect from 6th February 2024 being the date the Tribunal made the Decision. ____________________________________

© CROWN COPYRIGHT 2023

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

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SUMMARY REASONS

Background 1. Following an objection from the Tenant to the determination of a fair [NAME] by the [NAME], the Tribunal has made a determination under the provisions of the [NAME] 1977.

Inspection

2. The Tribunal did not carry out an inspection. [NAME] has carried out an inspection of the property on 13th February 2024.

Evidence 3. The Tribunal has consideration of the written submissions provided by the Tenant and landlord.

Determination and Valuation 4. Having consideration of the comparable evidence provided by the parties and our own expert, general knowledge of rental values in the area, we consider that the open market [NAME] for the property in good tenantable condition would be in the region of £26,000.00per annum From this level of [NAME] we have made adjustments in relation to: • The tenant’s repair liability under the tenancy agreement; • No white goods provided within the tenancy; • No floor covering / curtains being provided within the tenancy; • Unmodernised kitchen; • No central heating.

5. The Tribunal has also made an adjustment for scarcity.

6. The full valuation is shown below:

[NAME]

£26,000.00 per annum

Less

The tenant’s repair liability under the tenancy agreement (5%); No white goods provided within the tenancy (5%); No floor covering / curtains being provided within the tenancy (5%); Unmodernised kitchen (5%); No central heating (5%).

£6,500.00 Equals

£19,500.00 per annum

Less Scarcity approx. 20%

£3,900.00

Equals

£15,600.00 per annum Plus services

£1,918.72 [NAME]

£17,518.72 per annum

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Decision 8. The uncapped fair [NAME] initially determined by the Tribunal, for the purposes of section 70, was £ 17,518.72 per annum. The capped [NAME] for the property according to the provisions of the [NAME] ([NAME]) Order 1999 is calculated at £13,948.50. The calculation of the capped [NAME] is shown on the decision form. In this case the lower [NAME] of £13,948.50 is to be registered as the fair [NAME] or this property.

Chairman: Judge Shepherd

13th February 2024

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 request for full reasons should be made within a month. Any subsequent application for permission to appeal should be made on Form RP PTA