First-tier Tribunal Adjusts Fair Rent for Property Condition

OUTCOME: Dismissed

© CROWN COPYRIGHT

Case Reference

: BIR/44UE/F77/2025/0002

Property : 1 The Cottage Thelsford Pumping Station Wellesbourne Warwick [POSTCODE]

Tenant

: Mrs [COUNSEL] A [COUNSEL]

Tenant’s : [COUNSEL]

Landlord

: [COUNSEL] of Application : Section 70 Rent Act 1977

Tribunal Members : V Ward BSc Hons FRICS Regional Surveyor

Judge David R Salter

Date of Decision : 14 July 2025

_______________________________________________

DECISION

The sum of £132.00 per week will be registered as the fair rent with effect from 7 July 2025 being the date the Tribunal made the Decision. ____________________________________

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2

REASONS FOR THE DECISION

Background

1. The Rent Officer registered a rental of £140.00 per week on 24 January 2025, effective from the same date. Following an objection from the Tenant to the fair rent determined by the Rent Officer, the Tribunal has made a determination under the provisions of the Rent Act 1977.

2. The previous rent was £118.00 per week which was registered on 2 December 2021.

3. The Tenant first took occupation of the Property in 1978.

4. The Tribunal has considered this case on the basis of the papers provided by the parties, an inspection of the Property and having regard to its own knowledge, expertise and online research.

Inspection

5. The Tribunal carried out an inspection of the Property on 7 July 2025. Present at the inspection were the Tenant, Mrs [APPELLANT] her husband, Mr [APPELLANT], and her son, Mr [RESPONDENT] who represented her during these proceedings. The Landlord did not attend the inspection.

6. The subject Property comprises a semi-detached house which offers the following accommodation:

GF Entrance Hall, Lounge, Kitchen, Rear Lobby and Shower room incorporating WC and wash hand basin.

FF

Two double and one single bedroom.

Outside Large front garden and parking area, rear garden incorporating separate WC and various stores.

Double glazing is fitted and heating is via an LPG system.

7. The Property is situated in a rural location at the junction of [ADDRESS] and the A429 approximately one mile to the north of the village of Charlecote.

Condition

8. The items of disrepair noted by the Tenant, as set out below, were confirmed by the Tribunal at its inspection. During the previous freehold ownership, the roof was replaced, and the LPG heating system installed. In the main, other than these items, all works carried out during the tenancy, have been carried out by the Tenant. This

3 includes replacing the kitchen fitments and the erection of external stores. Before this Property could be let in the open market, it would require significant expenditure.

Submissions of the Parties

The Tenant

9. The Tenant returned the Tribunal’s Reply forms which indicated that she had fitted the kitchen and provided the carpets and curtains and white goods to the Property and further that she had provided the external stores.

10. In addition, the Tenant noted the following items of disrepair:

a) Cracks/water damage to various ceilings. b) “Blown” window panes. c) Cracking to lintels/brickwork. d) Driveway floods in heavy rainfall. e) Gate not hanging correctly. f) Draughts due to ill-fitting doors. g) Loose ridge tiles.

The Landlord

11. The Landlord did not provide any submissions.

Determination and Valuation

12. From its own expert knowledge of rental values in the area, the Tribunal considers that the open market rent for the Property in a satisfactory condition would be in the region of £1,300.00 per calendar month (i.e. £300.00 per week). From this level of rent, the Tribunal has made adjustments in relation to the following:

a) The general condition of the Property – which in the opinion of the Tribunal is poor. b) The type of heating – LPG. Again, in the opinion of the Tribunal, this would make the Property less sought after than a comparable Property fitted with a more conventional system. c) Kitchen, external stores, curtains, carpets and white goods installed/fitted by the Tenant. d) The Tenant’s liability to redecorate.

13. The Tribunal has also made an adjustment for scarcity using its own general knowledge and experience. The Tribunal considers that in the wider geographical area there is an imbalance of supply and demand impacting on rental values and has, therefore, made a deduction of 15% for scarcity.

4

14. The full valuation is shown below: Per week

Market Rent

£300.00

Less a) Items given under a) above

£80.00 b) Items given under b) above

£20.00 c) Items given under c) above

£30.00 d) Tenant’s internal decoration liability @ 5% £15.00 £145.00

£155.00 Less Scarcity @ 15%

£23.25

£131.75

Say

£132.00

Decision

15. Therefore, the Tribunal determines the Fair Rent as £132.00 per week with effect from 7 July 2025. For the avoidance of doubt this rent is not backdated but is paid from 7 July 2025 onwards.

16. The maximum fair rent permitted by the Rent Acts (Maximum Fair Rent) Order 1999 is £156.00 per week. This, therefore, has no impact on the rent determined by the Tribunal. The calculation of the capped rent is shown on the decision form.

Chairman: V Ward

Date: 7 July 2025

APPEAL PROVISIONS

If either party is dissatisfied with this decision, they may apply for permission to appeal to the Upper Tribunal (Lands Chamber) on any point of law arising from this Decision. Prior to making such an appeal, an application must be made, in writing, to this Tribunal for permission to appeal. Any such application must be made within 28 days of the issue of this statement of reasons (regulation 52 (2) of The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013) stating the grounds upon which it is intended to rely in the appeal.

5 First-tier Tribunal – Property Chamber File Ref No.

BIR/44UE/F77/2025/0002

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were: 1 The Cottage Thelsford Pumping Station Wellesbourne Warwick [POSTCODE]

V Ward BSc Hons FRICS Judge David R Salter

Landlord [NAME]

Tenant [NAME] [APPELLANT]

1. The fair rent is £132.00 Per week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 7 July 2025

3. The amount for services is - Per -

/not applicable

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 do not apply (please see calculation overleaf).

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

Semi detached house with three bedrooms.

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 £156.00 per week permitted by the Order.

Chairman V Ward Date of decision 7 July 2025

6 MAXIMUM FAIR RENT CALCULATION

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. LATEST RPI FIGURE x May-25 PREVIOUS RPI FIGURE y Dec-21 x equals (A) (A) equals (B) First application for re-registration since 1 February 1999 enter yes or no in box no If yes plus 1.075, if no plus 1.05 Last registered rent* *(exclusive of any variable service charge) Rounded up to nearest 50 pence Variable Service Charge YES/NO If YES add amount for services MAXIMUM FAIR RENT = Per Multiplied by (C) = 156.00 £ 156.00 £ week minus y divided by y 85.2 0.268177526 1.05 1.318177526 118.00 £ 155.54 £ 402.9 317.7 402.9 85.2 317.7 317.7