First-tier Tribunal Determines Fair Rent After Landlord Improvements

OUTCOME: Allowed

FR24 First-tier Tribunal – Property Chamber File Ref No. TR/LON/00AE/F77/2023/0286

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

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

[NAME] [APPELLANT]

Landlord [NAME]

Tenant Mr [APPELLANT]

1. The fair rent is 445.00 Per Week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 11 December 2023

3. The amount for services is Nil Per Week

negligible/not applicable

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

Nil Per Week

negligible/not applicable

5. The rent is/is not to be registered as variable.

6. The capping provisions of the Rent Acts (Maximum Fair Rent) Order 1999 apply because 15% exemption.

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

The Property has benefitted from replacement of all window fittings with new wooden framed double glazing. The Tribunal determine this improvement would increase rent by more than 15%.

[NAME] of decision 11 December 2023

FR24

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Case Reference

: TR/LON/00AE/F77/2023/0286

Property : [ADDRESS], London, [POSTCODE]

Tenant

: Mr [APPELLANT]

Landlord : [NAME] of Objection : 28 August 2023

Type of Application : Rent Act 1977

Tribunal

: [NAME] Valuer 079475

[NAME] of Summary Reasons

: 12 December 2023

_______________________________________________

DECISION

The sum of £445 per week will be registered as the fair rent with effect from 11 December 2023, being the date the Tribunal made the Decision. ____________________________________

© CROWN COPYRIGHT 2023 FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

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SUMMARY 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 and hearing 2. The Tribunal held a video hearing and then inspected the property. Mr [NAME] attended the hearing and the inspection. The Tribunal considered this case on the basis of the papers provided by the Rent Officer and the parties, inspection and oral submissions at hearing.

Evidence 3. There were written submissions from the Tenant.

Determination and Valuation 4. Having consideration of our own expert, general knowledge of rental values in the area, we consider that the open market rent for the property in a satisfactory condition would be in the region of £675 per week. From this level of rent we have made adjustments to reflect any tenant improvements, disrepair and obsolescence at the property. Details of the adjustments made are shown in the valuation table below.

5. The Landlord has installed timber framed double glazed windows to this property since the last registration. This window installation was visible at inspection and the date of the works was confirmed by Mr [NAME]. This is a material improvement to the dwelling and it is the opinion of the Tribunal the that following completion of these works the property would achieve a higher rent. The Tribunal are told the previous window fittings were aged and damaged timber frames fitted with single glazing.

6. The Tribunal carefully considered the likely impact on rental value of the window improvement and deemed it would lead to a greater than 15% increase in achievable rent. Landlord improvements to a property that result in a 15% or more increase in rental value release the dwelling from the capping provisions of the Rent Act 1977 and the Rent Acts (Maximum Fair Rent) Order 1999. Any rent increase is therefore not limited to an increase of 5% plus RPI.

5. The Tribunal has also made an adjustment for scarcity.

6. The full rental valuation is shown below. Details of the rental value with and without double glazing is provided:

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7. The Tribunal determines a rent of £ 445 per week.

Decision 8. The uncapped fair rent determined by the Tribunal [following the window???] , for the purposes of section 70, was £445 per week. The capped rent for the property according to the provisions of the Rent Acts (Maximum Fair Rent) Order 1999 do not apply. In this case the rent of £445 per week is to be registered as the fair rent for this property.

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Chairman: [NAME]: 12 December 2023

APPEAL PROVISIONS

You can only appeal this determination if the First-tier Tribunal decision was wrong on one or more points of law and you must say why the First-tier Tribunal was wrong in law. 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 subsequent application for permission to appeal should be made on Form RP PTA