Fair Rent Determination Under the Rent Act 1977

OUTCOME: Allowed in Part

First-tier Tribunal – Property Chamber File Ref No. LON/00AC/F77/2023/0268

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 1 [ADDRESS] [POSTCODE]

Judge Professor R [NAME] MA [APPELLANT]

Tenant Mrs [APPELLANT]

1. The fair rent is 1440 Per Calendar month (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 20 November 2023

3. The amount for services is 29.62 Per Cal month

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 £ 1600.50 per cal month including £12.62 per cal month for services.

Chairman Prof R Percival Date of decision 20 November 2023

MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 378.4

PREVIOUS RPI FIGURE Y 293.5

X 378.4 Minus Y 293.5 = (A) 84.9

(A) 84.9 Divided by Y 293.5 = (B) 0.289267

First application for re-registration since 1 February 1999 NO

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.339267

Last registered rent* 1195 Multiplied by (C) = 1600.42 *(exclusive of any variable service charge)

Rounded up to nearest 50p = 1600.50

Variable service charge NO If YES add amount for services

MAXIMUM FAIR RENT = £1600.50 Per Cal month

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.

Case Reference

: LON/00AC/F77/2023/0268

Property : 1 [ADDRESS] [POSTCODE]

Tenant

: Mrs [APPELLANT]

Landlord : [APPELLANT] of Objection : 31 July 2023

Type of Application : Section 70, Rent Act 1977

Tribunal

: Judge Professor R [NAME] MA MRICS

Date of Summary Reasons

: 20 November 2023

_______________________________________________

DECISION

The sum of £1440 per calendar month will be registered as the fair rent with effect from 20 November 2023, being the date the Tribunal made the Decision. ____________________________________

© CROWN COPYRIGHT 2023

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

SUMMARY 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.

Inspection 2. The Tribunal did not inspect the Property, having not been requested to do so, but considered this case on the basis of the papers provided by the parties.

Evidence 3. Aside from the Tenant’s letter objecting to the increase there were no written submissions from the parties, and no comparable evidence was provided. The tenant thought the increase would be difficult for her to manage.

Determination and Valuation 4. Having consideration of our own expert, general knowledge of rental values in the Edgware area, we consider that the open market rent for the Property in its current condition (based on the information contained in the Landlord’s original application for registration of fair rent and the information contained in the Rent Register) would be of £1,440 per calendar month.

5. The Tribunal has made an adjustment for scarcity.

6. The full valuation is shown below:

Market Rent per calendar month

£2,000 less deductions £1,800

less scarcity @ 20% £1,440

7. The above figure of £1,440 per calendar month is the uncapped amount inclusive of services of £29.62 per calendar month As shown on the decision sheet and on the maximum fair rent calculation sheet , this figure is below the cap so capping does not apply.

Chair:

Judge Professor R Percival

Date:

20 November 2023

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 subsequent application for permission to appeal should be made on Form RP PTA