First-tier Tribunal Caps Fair Rent at £178.50

OUTCOME: Dismissed

FR27 First-tier Tribunal – Property Chamber File Ref No. LON/00BB/F77/2025/0257

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 23 [ADDRESS] [POSTCODE]

Ms [NAME]-[NAME] (Chair) Mr [NAME] (Surveyor Member)

Landlord [NAME], [NAME] & [NAME]

Tenant Mr [APPELLANT]

1. The fair rent is £178.50 Per week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 17 November 2025

3. The amount for services is 0.00 Per 0.00

negligible/not applicable

4. The amount for fuel charges (excluding heating and lighting of common parts) not counting for rent allowance is

0.00 Per 0.00

negligible/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 the maximum fair rent as prescribed by the Rent Acts (Maximum Fair Rent) Order 1999. The rent that would otherwise have been registered was £224 per week.

[NAME] of decision 17 November 2025

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 406.10

PREVIOUS RPI FIGURE Y 374.20

X 406.10 Minus Y 374.20 = (A) 31.90

(A) 31.90 Divided by Y 374.20 = (B) 0.085249

First application for re-registration since 1 February 1999 YES/NO

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.135249

Last registered rent* 157.00 Multiplied by (C) = 178.23 *(exclusive of any variable service charge)

Rounded up to nearest 50p = 178.50

Variable service charge YES / NO If YES add amount for services NO

MAXIMUM FAIR RENT = £178.50 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.

© CROWN COPYRIGHT 2025

Case Reference : LON/0BB/F77/2025/0257 Property : 23 [ADDRESS] [POSTCODE] Tenant : Mr [APPELLANT] Landlord : Mr [APPELLANT], Mr [APPELLANT] & Mr [RESPONDENT] of Application : Section 70, Rent Act 1977 Tribunal Members : Ms TE [NAME]-[NAME] (chair) [NAME] (Surveyor Member) Date of Decision : 17 November 2025

_______________________________________________

DECISION

The sum of £178.50 per week will be registered as the fair rent with effect from 17 November 2025, being the date the Tribunal made the Decision. ____________________________________

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2 SUMMARY REASONS

Background 1. The landlord submitted an application dated 10 July 2025 to register a fair rent. The landlord proposed a rent of £850 per month. Following this application the Rent Officer registered a fair rent of £157 per week effective from 21 September 2025. The previous fair rent determined by the Rent Officer was £157 a week effective from 21 September 2023.

2. Following an objection from the landlord to the determination of this fair rent by the Rent Officer, the Tribunal has made a determination under the provisions of the Rent Act 1977. The case was determined on the papers without an inspection on 17 November 2025. Determination and Valuation

3. The property is a three bedroom Victorian mid-terraced house.

4. Some rental evidence was provided by the landlord. That, together the Tribunals own expert and general knowledge of rental values in the area, we consider that the open market rent for the property in the condition and with the amenities the market would expect to be in the region of £600 per week. This rent has then been adjusted down by 30% to reflect the tenant has provided floorings and curtains, white goods, as well as contributing to the installation of double glazing and central heating. A further reduction of 20% has been made to reflect scarcity, giving a rent of £336 per week.

5. However, The Rent Acts (Maximum Fair Rent) Order 1999, limits the amount that the rent can be increased. In this case the increase is limited to £178.50 per week

Decision

6. The uncapped fair rent initially determined by the Tribunal, for the purposes of section 70, was £336 per week. The capped rent for the property according to the provisions of the Rent Acts (Maximum Fair Rent) Order 1999 is calculated at £178.50 per week. The calculation of the capped rent is shown on the decision form. In this case the lower rent of £178.50 week is to be registered as the fair rent of this property.

Chair: [NAME]: 17 November 2025

3 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