First-tier Tribunal Caps Fair Rent at £274.50

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. HAV/00ML/F77/2025/0610

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 15 [ADDRESS] [POSTCODE]

Mr I [NAME] Mr M [NAME] Judge Clark

Landlord [APPELLANT]

Tenant Mrs [APPELLANT] [NAME]

1. The fair rent is £274.50 Per Week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 3 April 2025

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

The property has gas-fired central heating and some double glazed windows.

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 £304.62 per week.

Chairman Mr I [NAME] of decision 3 April 2025

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 394.00

PREVIOUS RPI FIGURE Dec 2022 Y 360.40

X 394.00 Minus Y 360.40 = (A) 33.60

(A) 33.60 Divided by Y 360.40 = (B) 0.0932

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) 1.1432

Last registered rent* £240.00 Multiplied by (C) = £274.37 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £274.50

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

MAXIMUM FAIR RENT = £274.50 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

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : HAV/00ML/F77/2025/0610 Property : 15 [ADDRESS] [POSTCODE] Tenant : Mrs [COUNSEL] :

None

Landlord : [RESPONDENT] : [NAME] 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 : [NAME] [NAME] Judge Clark Date of Objection : 12th February 2025 Date of Decision and Summary Reasons :

3rd April 2025

DECISION

The Tribunal determines a rent of £274.50 per week with effect from 3rd April 2025.

HAV/00ML/F77/2025/0610 2 SUMMARY REASONS

Background 1. On 9th December 2024 the Landlord’s Agent applied to the Rent Officer for the registration of a new rent of £248 per week for the property in accordance with Section 70 of the Rent Act 1977.

2. The rent was last registered at £240 per week on 14th December 2022 following a determination by the Rent Officer.

3. On 4th February 2025 the Rent Officer registered a new rent of £250 per week for the property to take effect from the 4th February 2025.

4. On 12th February 2025 the Landlord’s Agent 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. There were no written submissions from the Tenant. 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 tenantable condition would be £1,500 per calendar month. Market rents are usually expressed as a monthly figure.

8. Such a tenancy would normally include white goods, carpets and curtains/blinds to all be provided by the Landlord. 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 therefore some adjustments to the ‘open market rent’ are necessary. In addition, the Tribunal has made the adjustments for the dated bathroom.

10. The Tribunal noted the number 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.

11. The Energy Performance Rating for the property is ‘D’.

12. The full valuation is shown below:

HAV/00ML/F77/2025/0610 3 Full open market rent in good condition £1,500 Less deductions for:- Tenants’ liability for internal decoration

£50 Tenant’s provision of white goods

£30 Tenant’s provision of carpets and curtains/blinds £50 Dated bathroom

£50

____

Total deduction per month

£180 TOTAL RENT PAYABLE PER MONTH

£1,320

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 £1,320 per calendar month, equating to £304.62 per week.

14. The Section 70 Fair Rent determined by the Tribunal is above the maximum fair rent of £274.50 per week permitted by the Rent Acts (Maximum Fair Rent) Order 1999.

Accordingly, the lower amount of £274.50 is to be registered as the Fair rent with effect from 3rd April 2025, 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.