First-tier Tribunal Determines Fair Rent After Tenant's Objection

OUTCOME: Allowed

© CROWN COPYRIGHT

Case Reference

: BIR/41UG/F77/2025/0023

Property : 303 [ADDRESS],

[POSTCODE]

Tenant

: Mrs [APPELLANT]

Landlord : [NAME] of Objection : The Tenant objected by letter dated 17 July 2025

Type of Application : Section 70 Rent Act 1977

Tribunal Members : Mr [NAME] (Hons) MRICS, Mrs [NAME], Mr [NAME] (Hons) FRICS FNAEA FARLA

Date of Decision : 12/2/2026

_______________________________________________

DECISION

The sum of £131.00 per week will be registered as the fair rent with effect from 12/2/2026 being the date the Tribunal made the Decision. ____________________________________

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2

REASONS FOR THE DECISION

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 papers provided by the parties and having regard to its own knowledge, expertise and online research.

Evidence

3. No written submissions were provided by the parties. From the information provided it appears that the subject property is a 3-bedroom semi-detached house.

4. As the Tenant has been in occupation of the property for a considerable period it

has been assumed that the tenant decorated the interior of the property and that

the white goods, floor finishes and curtains are supplied by the Tenant.

5. The Tribunal was aware of recent lettings in the area and of comparable

properties on the market and assessed the market rental of the property at

£1000 per month.

6. The Tribunal were not aware of any improvements that had been made to the

Property.

Determination and Valuation

7. On consideration of the comparable evidence proved by the parties, that

forwarded by the Rent Officer and the Tribunal’s own expert knowledge of rental

values in the area, the Tribunal considers that the market rent for the

property in a satisfactory condition would be in the region of £1,000 per annum.

From this level of rent, the Tribunal has adjusted in relation to the following:

Rent per Week £230.00

3 Improvements made by the Tenant £0

Curtains, carpets £10.00 per week

White goods fitted by the Tenant £10.00 per week

The Tenant’s liability to redecorate £20.00 per week

Total Deductions £40.00

Net Rent per week

£190.00 Scarcity@ 15% -£28.50 Net rent

£161.50

8. The Tribunal has also made an adjustment for scarcity using their own general

knowledge and experience. The Tribunal considers that in the wider geographical

area there is an imbalance of supply and demand impacting on rental values and

has, therefore, made a reduction of 15% for scarcity.

10. The Tribunal determines an uncapped rent of £161.50 per Week.

Decision

11. The uncapped fair rent determined by the Tribunal, for the purposes of section 70, is therefore £161.50 per week from 12/2/2026. The maximum fair rent permitted by the Rent Acts (Maximum Fair Rent) Order 1999 is £131.00 per week. This therefore limits the fair rent to be registered because it the uncapped fair rent of £161.50 per week would be above the maximum fair rent of £131.00 per week prescribed by the Order. The calculation of the capped rent is shown on the decision form.

12. The Rent determined by the Tribunal was therefore £131.00 per week with effect from 12 February 2026.

Chairman: [NAME]: 12/2/2026

4

APPEAL PROVISIONS

If either party is dissatisfied with this decision, they may apply for permission to appeal to the Upper Tribunal (Lands Chamber) on any point of law arising from this Decision. Prior to making such an appeal, an application must be made, in writing, to this Tribunal for permission to appeal. Any such application must be made within 28 days of the issue of this statement of reasons (regulation 52 (2) of The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013) stating the grounds upon which it is intended to rely in the appeal.

5 First-tier Tribunal – Property Chamber File Ref No.

BIR/41UG/F77/2025/0023

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 303 [ADDRESS] [POSTCODE]

[NAME] (Hons) MRICS Mrs [NAME] Mr [RESPONDENT] JP BSc (Hons)FRICS FNAEA FARLA

Landlord [NAME]

[NAME] [APPELLANT]

1. The fair rent is £131.00 Per Week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 8/7/2025

3. The amount for services is 0 Per Week-

/not applicable

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

not applicable - Per -

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 (please see calculation overleaf).

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

8. For information only:

The fair rent to be registered is limited by the Rent Acts (Maximum Fair Rent) Order 1999, because it is above the maximum fair rent of £131.00 permitted by the Order.

[NAME] of decision 12/2/2026

6 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 408.5

PREVIOUS RPI FIGURE Y 358.3

X 408.5 Minus Y 358.3 = (A) 50.2

(A) 50.2 Divided by Y 358.3 = (B) .140106

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

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.190106

Last registered rent* £110

Multiplied by (C) = £130.91

*(exclusive of any variable service charge)

Rounded up to nearest 50p = £131

Variable service charge NO If YES add amount for services

MAXIMUM FAIR RENT = £131.00 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.