First-tier Tribunal Caps Fair Rent at £1,106.50

OUTCOME: Dismissed

FR27 First-tier Tribunal – Property Chamber File Ref No. HAV/29UQ/F77/2024/0615

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

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

[NAME] Miss [RESPONDENT]

Landlord [NAME]

Tenant Mrs [APPELLANT]

1. The fair rent is £1106.50 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 30 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 apply (please see calculation overleaf).

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

8. For information only:

(a) The fair rent to be registered is the maximum fair rent as prescribed by the Rent Acts (Maximum Fair Rent) Order 1999. The rent that would otherwise have been registered was £1435.00 per Calendar Month.

[NAME] of decision 30 December 2024

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 390.70

PREVIOUS RPI FIGURE Y 358.30

X 390.70 Minus Y 358.30 = (A) 32.40

(A) 32.40 Divided by Y 358.30 = (B) 0.0904

First application for re-registration since 1 February 1999? NO

If yes (B) plus 1.075 = (C) n/a

If no (B) plus 1.05 = (C) 1.1404

Last registered rent* £970 Multiplied by (C) = £1106.19 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £1106.50

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

MAXIMUM FAIR RENT = £1106.50 Per 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.

© CROWN COPYRIGHT 2024

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : HAV/29UQ/F77/2024/0615 Property : 1 [ADDRESS] [POSTCODE] Tenant : Mrs [COUNSEL] :

None

Landlord : [NAME] : Hadlow Estate office 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] Ms [NAME] of Objection : 29th October 2024 Date of Decision and Summary Reasons :

30th December 2024

DECISION

The Tribunal determines a rent of £1,106.50 per calendar month with effect from 30th December 2024.

HAV/29UQ/F77/2024/0615 2

SUMMARY REASONS

Background 1. On 2nd September 2024 the Landlord applied to the Rent Officer for the registration of a new rent of £1,067 per month for the property in accordance with Section 70 of the Rent Act 1977.

2. The rent was previously registered at £970 per month on 1st November 2022 following a determination by the Rent Officer.

3. On 18th October 2024 the Rent Officer registered a new rent of £1,016.50 per month for the property to take effect from the 1st November 2024.

4. On 29th 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 Landlord. The Tenant made no submission. Determination and Valuation 7. Having consideration to the comparable evidence provided 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 £1,700 per calendar month.

8. 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.

9. 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. In particular the Tribunal has made the adjustments for the Tenant’s responsibility for internal decoration, Tenant’s provision of white goods and provision of carpets and curtains, lack of double glazing and for an unmodernised kitchen.

10. 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.

HAV/29UQ/F77/2024/0615 3 11. The Energy Performance Rating for the property is ‘D’. 12. The full valuation is shown below: Full open market rent in good condition £1,700 Less deductions for:- Tenants’ liability for internal decoration

£60 Tenant’s provision of white goods

£30 Tenant’s provision of carpets and curtains

£75 Lack of double glazing

£50 Unmodernised kitchen

£50

____

Total deduction per month

£265 TOTAL MARKET RENT PAYABLE PER MONTH £1,435

13. 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 £1,435 per calendar month.

14. The Section 70 Fair Rent determined by the Tribunal is above the Maximum Fair rent of £1,106.50 permitted by the Rent Acts (Maximum Fair Rent) Order 1999.

Accordingly, the lower amount of £1,106.50 is to be registered as the Fair Rent with effect from 30th December 2024, this being the date of the Tribunal’s decision.

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.