First-tier Tribunal Adjusts Fair Rent for Tenant Improvements

OUTCOME: Allowed

1

Case Reference:

LON/00AS/F77/2025/0231

Property: 72 [ADDRESS], [POSTCODE]

Tenant: `

Mrs [APPELLANT]

Landlord:

[NAME] of Objection:

18 June 2025

Type of Application: Section 70, Rent Act 1977

Tribunal:

Judge I [NAME]

[NAME] of Extended Reasons

: 6 October 2025

_____________________________________________

DECISION

The sum of £248.20 per week will be registered as the fair rent with effect from 6 October 2025 being the date the Tribunal made the Decision. ___________________________

© CROWN COPYRIGHT

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2

EXTENDED 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 but considered this case on the basis of the documentary evidence only.

Evidence 3. No written submissions were received from the landlord. However, the Tribunal noted that, despite the registration of a higher fair rent, the landlord, as a social landlord, does in fact charge a lower rent in accordance with its prevailing annual rent increase formulation or policy.

4. Written representations were made on behalf of the tenant variously dated from 10-12 September 2025 in which general unsupported assertions were made about the improvements she had allegedly carried out to the property having taken out a loan, for which she is still paying for. This assertion was supported by limited photographic evidence provided and was of decking and a patio roof covering. It is important to note that the tenant’s assertion about the improvements carried out by her and the cost was unchallenged by the landlord.

Accordingly, the Tribunal accepted the tenant’s evidence on this issue and applied the appropriate discount below for the rental value attributable to the improvements carried out by her.

Determination and Valuation 5. Having consideration of our own expert, general knowledge of rental values in the area of Uxbridge, we consider that the open market rent for the property in its current condition would be in the region of £474.23 per week.

6. From this level of rent we have made global adjustments in relation to:

The tenant’s decorating liability No white goods No floor covering or curtains Tenant’s improvements for tenant’s refit of kitchen, installation of new bathroom suite and redecoration, wood decking, pergola roof and turfing of the garden.

7. After deducting the amount for services, the Tribunal has also made an adjustment for scarcity.

8. The full valuation is shown below:

per week Market Rent

£474.23

Less Deductions above

)

) 35% )

£308.25

Less Service charge

£7.99

3

£300.26 Less Scarcity

approx. 20%

£60.05

£240.21 Plus Service charge

£7.99

£248.20

9. The Tribunal determines a rent of £248.20per week.

Decision 10. The rent has not been capped under the provisions of the Rent Acts (Maximum Fair Rents) Order 1999 as it is below MFR of £264 per calendar week.

Tribunal Judge: [NAME]: 6 October 2025

APPEAL PROVISIONS

These extended reasons are provided to give the parties an indication as to how the Tribunal made its decision. Any application for permission to appeal should be made on Form RP PTA.

FR27 First-tier Tribunal – Property Chamber File Ref No. LON/00AS/F77/2025/0231

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 72 [ADDRESS], [POSTCODE]

Tribunal Judge I [NAME] [NAME]

[NAME]

Tenant Mrs [APPELLANT]

1. The fair rent is 248.20 Per week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 6 October 2025

3. The amount for services is 7.99 Per week

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

N/A

8. For information only:

(a) 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 £ 265 per week including £26.32 per week for services prescribed by the Order.

Chairman Tribunal Judge I [NAME] of decision 6 October 2025

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 402.9

PREVIOUS RPI FIGURE Y 364.5

X 402.9 Minus Y 364.5 = (A) 38.4

(A) 38.4 Divided by Y 364.5 = (B) 0.10534979

First application for re-registration since 1 February 1999 NO

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.15534979

Last registered rent* 221.51 Multiplied by (C) = 255.92 *(exclusive of any variable service charge)

Rounded up to nearest 50p = 256.00

Variable service charge NO If YES add amount for services 7.99

MAXIMUM FAIR RENT = £263.99 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.