First-tier Tribunal Adjusts Fair Rent Based on Improvements

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. HAV/24UD/F77/2024/0611

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 86 [ADDRESS] [POSTCODE]

[NAME] Mr [APPELLANT]

Landlord [APPELLANT]

Tenant Miss [APPELLANT]

1. The fair rent is £200.00 Per Week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 19 December 2024

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

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

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 do not apply because 15% exemption.

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

[NAME] of decision 19 December 2024

© CROWN COPYRIGHT 2024

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : HAV/24UD/F77/2024/0611 Property : 86 [ADDRESS] [POSTCODE] Tenant : Ms [COUNSEL] :

None

Landlord : [RESPONDENT] : None Type of Application :

Section 70 Rent Act 1977 (“the Act”) Determination by the First-Tier Tribunal of the fair rent of a property following an objection to the rent registered by the Rent Officer.

Tribunal Members : Mr [NAME] Mr [NAME] of Objection : 23rd October 2024 Date of Decision and Summary Reasons :

19th December 2024

DECISION

The Tribunal determines a rent of £200 per week with effect from 19th December 2024

HAV/24UD/F77/2024/0611

2

SUMMARY REASONS

Background 1. On 19th August 2024 the Landlord applied to the Rent Officer for the registration of a new rent for the property in accordance with Section 70 of the Rent Act 1977.

2. The rent was previously registered at £40 per week on 9th April 1990 following a determination by the Rent Officer.

3. On 14th October 2024 the Rent Officer registered a new rent of £185 per week for the property to take effect from the 14th October 2024.

4. On 23rd October 2024 the Landlord objected to this new rent and the matter was referred to the First-tier Tribunal Property Chamber (Residential Property), formerly a Rent Assessment Committee. Inspection 5. The Tribunal did not inspect the property but considered this case based on the papers provided by the parties and information freely available on the internet. Evidence

6. The Tribunal has considered the written submissions provided by the Tenant and the Landlord. Determination and Valuation 7. Open market rents, on which any decision by the Tribunal is based, are normally expressed as a monthly figure.

8. Having consideration to the comparable evidence provided by the parties and of our own expert, general knowledge of rental values in the area, we consider that the open market rent for the property in good tenable condition would be £1,600 per calendar month. This reflects the fact that the 4th bedroom is unusable.

9. Such a tenancy would normally include white goods, carpets and curtains/blinds to all be provided by the Landlord and the Landlord would also be responsible for internal repair and decoration.

10. In this case the property is not let in such condition or with white goods, carpets and curtains all supplied so some adjustments to the ‘open market rent’ are necessary.

11. Furthermore, the Tribunal has made adjustments to reflect tenant’s improvements but has not made any reduction in rent to reflect repairs undertaken by the Tenant with particular reference to roofing and drainage works.

HAV/24UD/F77/2024/0611

3 12. The Landlord has recently installed 15 double glazed windows and 2 new doors at a cost of £14,100. The Tribunal considers that this improvement will increase the existing rent of £40 per week by more than 15%. The effect of this is that the new rent will not be limited by the Rent Acts (Maximum Fair Rent) Order 1999.

13. The Tribunal noted the numbers of properties with similar accommodation within a reasonable distance of the property that are available to rent and decided that no deduction for scarcity should be made.

14. The full valuation is shown below: Full open market rent in good condition £1,600 Less deductions for:- Tenants’ liability for internal decoration

£75 Tenant’s provision of white goods

£30 Tenant’s provision of carpets and curtains

£75 Tenant’s provision of heating system

£250 Tenant’s provision of kitchen fittings

£200 Dated bathroom

£100

____

Total deduction per month

£730 TOTAL RENT PAYABLE PER MONTH

£870 (£200 per week)

15. Having made the adjustments indicated above the Fair Rent determined by the Tribunal for the purpose of section 70 of the Rent Act 1977 was £870 per month which equates to £200 per week.

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.