Fair Rent Determination for Residential Property

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. HS/LON/OOBK/F77/2025/0317

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

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

[NAME] [NAME]

Landlord [APPELLANT]

Tenant Mr [APPELLANT]

1. The fair rent is £14906 Per year (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 16 February 2026

3. The amount for services is n/a Per n/a

negligible/not applicable

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

n/a Per n/a

negligible/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.

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

n/a

8. For information only:

(a) The fair rent to be registered is the section 70 fair rent because the rent determined under the Rent Acts (Maximum Fair Rent) Order 1999 is higher.

[NAME] of decision 16 February 2026

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 408.50

PREVIOUS RPI FIGURE Y 301.1

X 408.5 Minus Y 301.1 = (A) 107.4

(A) 107.4 Divided by Y 301.10 = (B) 0.35669

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) 1.40669

Last registered rent* £ 10596.50 per year Multiplied by (C) = 14,905.99 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £14,906.00

Variable service charge no If YES add amount for services n/a

MAXIMUM FAIR RENT = £14906.00 Per year

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.

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Case Reference

: HS/LON/00BK/F77/2025/0317

Property : [ADDRESS], [POSTCODE]

Tenant

: [NAME] [APPELLANT]

Landlord : [APPELLANT] of Objection : 18 July 2025

Type of Application : Section 70, Rent Act 1977

Tribunal

: [NAME] [NAME] 0f Decision : 16 February 2026

_______________________________________________

DECISION

The sum of £14906.00 per calendar year including a service charge of £1207.89 per year, will be registered as the fair rent with effect from 16 February 2026, being the date the Tribunal made the Decision. ____________________________________

© CROWN COPYRIGHT 2026

Full REASONS

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2 Background

1. The landlord submitted an application, dated 29 April 2025, to register a fair rent of £12715.80 per year with £2735.72 per year for services. Previous to the application the Rent Officer had registered a fair rent of £10596.50 per year with £895.19 per year attributed to services from 30 April 2021.

2. Following the application the Rent Officer registered a fair rent of £14684.50 per year including £1207.89 per year effective from 18 June 2025. Following an objection from the tenant on 18 July 2025 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.

3. Directions were issued on 25 November 2025.

Inspection

4. The property is described in the Rent Register as a self-contained converted flat, with full central heating comprising two rooms, one kitchen/diner, one bathroom and one WC.

5. The Tribunal heard evidence that the tenant had with landlords' consent reconfigured the flat to produce two bedrooms, the second bedroom being a single bedroom created out of adjusting the hall and bathroom / WC area.

6. The Tribunal inspected the property and found the flat is located in a mansion block, the communal parts are clean and tidy although on the day of inspection a handrail was loose. The property has the original single glazed windows, original skirting. The tenant has installed central heating, redecorated throughout, reconfigured the flat, put in a new kitchen and a new bathroom.

Evidence

Submission by the tenant

7. The tenant has made submissions to the Tribunal prior to the hearing; these have been noted. The tenant at the hearing stated they, had installed central heating, redecorated throughout, reconfigured the flat making two bedrooms in place of the previous one, put in a new kitchen and a new bathroom.

8. The tenant considered that the value of the flat in a one-bedroom state and in a good condition should attract a 50% discount to reach the fair rent.

Submission by the landlord

9. The landlord has made no submissions to the Tribunal prior to the hearing

Nature of flat to be determined

3 10. The Tribunal determines that the property the subject of the determination is a one-bedroom flat with the layout prior to the tenant's reconfiguration, and with the pre-refurbished bathroom and kitchen.

Determination and Valuation

Valuation

11. In determining the level of rent for the fair rent, the Tribunal must carry out a valuation under section 70 of the Rent Act 1977 and then an assessment under the Rent Acts(Maximum Fair Rent) Order 1999.The latter assessment is dependent on the inflation rate between the last registered rent and the date of the current determination which is the date of hearing. The tribunal must then adopt the lower of the two figures as the fair rent to be registered.

12. Having consideration of the comparable evidence proved by the parties and our own expert general knowledge of rental values in the area, the Tribunal adopts the figure of £3300.00 per calendar month, for the property described in paragraph 10 and in good condition.

13. From this level of rent we have made adjustments in relation to: (i) terms and conditions the tenancy that is the tenant is responsible for internal decoration which is more onerous than contemporary tenancies from which the comparables are derived (ii) improvements. made by the tenant , but with the starting point the original layout (iii) the supply of curtains and carpets and (iv) general condition of the property compared with contemporary lettings.

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

Market Rent

£3300.00 pcm

Less: 30% for (i) to (iv) above;

£990.00 pcm

---------------------------------------- £2310.00 pcm

Less 20% for scarcity £462.00 pcm -----------------------------------

£ 1848.00 pcm

15. The Tribunal determines a rent under section 70 of £ 1848 pcm, which is the equivalent of £22176.00 pa including the service charge of £1207.89 pa.

Decision

4 16. The rent calculated under section 70 Rent Act 1977 is £22176,00 including a service charge of £1207.89 per year.

17. The rent calculated under the Rent Acts (Maximum Fair Rent) Order 1999 is £14906.00 per year including a service charge of £ 1207.89 per year. The rent calculated under section 70 of the Rent Act 1977 rent is higher than the rent calculated under the Rent Acts (Maximum Fair Rent) Order 1999. Therefore, the tribunal determines the rent to be registered is £14906.00 per year including a service charge of £1207.89 per year with effect from 16 February 2026.

Chairman: [NAME]: 16 February 2026

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Appeal to the Upper Tribunal A person wishing to appeal this decision to the Upper Tribunal (Property Chamber) on a point of law must seek permission to do so by making a written application to the First-tier Tribunal at the Regional Office which has been dealing with the case which application must: a. be received by the said office within 28 days after the Tribunal sends to the person making the application written reasons for the decision. b. identify the decision of the Tribunal to which it relates, state the grounds of appeal, and state the result the party making the application is seeking. If the application is not received within the 28 –day time limit, it must include a request for an extension of time and the reason for it not complying with the 28- day time limit; the Tribunal will then decide whether to extend time or not to allow the application for permission to appeal to proceed.