Fair Rent Determination for Tenancy Agreement

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. LON/00BB/F77/2025/0268

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

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

[NAME]

Landlord [NAME]

Tenant Mr [APPELLANT] and Ms [APPELLANT]

1. The fair rent is £140.00 Per week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 11 December 2025

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 rent determined under the Rent Acts (Maximum Fair Rent) Order 1999 because that determined under section 70 of Rent Act 1977 is higher.

[NAME] of decision 11 December 2025

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 407.4

PREVIOUS RPI FIGURE Y 294.3

X 407.4 Minus Y 294.3 = (A) 113.1

(A) 113.1 Divided by Y 294.3 = (B) 0.3843

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) 1.434

Last registered rent* £ 97.50 per week Multiplied by (C) = £139.84 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £140.00

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

MAXIMUM FAIR RENT = £140.00 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.

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Case Reference

: LON/00BB/F77/2025/0268

Property : [ADDRESS] [POSTCODE]

Tenant

: Mr [APPELLANT] and Ms [APPELLANT]

Landlord : [NAME] of Objection : 28 August 2025

Type of Application : Section 70, Rent Act 1977

Tribunal

: [NAME] 0f Decision : 11 December 2025

_______________________________________________

DECISION

The sum of £140.00 per week will be registered as the fair rent with effect from 11 December 2025, being the date the Tribunal made the Decision. ____________________________________

© CROWN COPYRIGHT 2025

Full REASONS

Background

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2 1. The landlord submitted an application, dated 11 June 2025, to register a fair rent of £107.25 per week. Previous to the application the Rent Officer had registered a fair rent of £97.50 per week effective from 14 October 2020. Following the application the Rent Officer registered a fair rent of £138.50 per week effective from 29 July 2025. Following an objection from the Tenant on 28 August 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.

2. Directions were issued on 15 October 2025. The determination was carried out on the papers and without an inspection. Neither party requested an inspection nor a hearing.

Inspection 3. The property is described in the Rent Register as a self-contained maisonette built around 1897, modernised with full central heating comprising – on the ground floor, one room, and one kitchen, on the first floor three rooms, and a bath/WC outside there is a garden.

Evidence

Submission by the tenant

4. The tenant submitted a written objection.

5. The written objection dated 28 August 2025 stated “I am finding it very hard to understand why you are increasing our rent when [NAME] do not maintain this property and never have for the whole duration, I have been which has been 20 plus years. The only time they attend is to check the gas boiler which is under regulations. I have renewed the fences in the rear garden, installed a £9000 kitchen, I have also refurbished the bathroom all at my own cost. I recently asked for the front of the property to be redecorated as it has deteriorated at a fast rate and they have declined. Therefore, I they [sic] are not maintaining the property as they should so do not see why an increase is necessary as I maintain this.”

6. No further information was received from the tenant.

Submission by the landlord

7. Other than the initial Application to register a fair rent no other submissions were received from the landlord.

Tribunal findings

8. The tribunal finds the uncontested nature of the subject property is; a self- contained maisonette built around 1897, modernised with full central heating comprising – on the ground floor, one room, and one kitchen, on the first floor three rooms, and a bath/WC outside there is a garden.

3 9. The tribunal has taken the evidence as to condition described in the objection letter, which is uncontested, to make a finding on the quality of the property.

Determination and Valuation

Valuation

10. 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.

11. 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 £2100.00 per calendar month.

12. 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, the kitchen, fence

(iii) the supply of curtains and carpets and

(iv) general condition of the property compared with contemporary lettings.

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

Market Rent

£2100pcm

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

£630 pcm

---------------------------------------- £1470 pcm

Less 20% for scarcity £294 pcm -----------------------------------

£ 1176 pcm

14. The Tribunal determines a rent under section 70 of £1176 pcm which is equivalent to £271.38 per week.

4 Decision

15. The rent calculated under section 70 Rent Act 1977 is £271.38 per week.

16. The rent calculated under the Rent Acts (Maximum Fair Rent) Order 1999 is £140.00 per week. 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 £140.00 per week with effect from 11 December 2025.

Chairman: [NAME]: 11 December 2025

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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.