First-tier Tribunal Determines Fair Rent for Property

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. LON/00AW/F77/2025/0267

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

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

[NAME]

Landlord [APPELLANT]

Tenant Mr [APPELLANT]

1. The fair rent is £1232.00 Per Month (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 11 December 2025

3. The amount for services is n/a Per n/a

negligible/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

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.

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 section 70 fair rent because the rent determined under the Rent Acts (Maximum Fair Rent) Order 1999 is higher.

[NAME] of decision 11 December 2025

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 407.4

PREVIOUS RPI FIGURE Y 378.4

X 407.4 Minus Y 378.4 = (A) 29.0

(A) 29 Divided by Y 378.4 = (B) 0.0766

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) 1.1266

Last registered rent* £ 1100.00 per month Multiplied by (C) = 1239.30 *(exclusive of any variable service charge)

Rounded up to nearest 50p = 1239.50

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

MAXIMUM FAIR RENT = £1239.50 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.

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Case Reference

: LON/00AW/F77/2025/0267

Property : [ADDRESS] [POSTCODE]

Tenant

: Mr [APPELLANT]

Landlord : [APPELLANT] of Objection : 27 August 2025

Type of Application : Section 70, Rent Act 1977

Tribunal

: [NAME] 0f Decision : 11 December 2025

_______________________________________________

DECISION

The sum of £1232.00 per calendar month will be registered as the fair rent with effect from 11 December 2025, being the date the tribunal made the Decision. ____________________________________

© CROWN COPYRIGHT 2025

Full REASONS

Background

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2 1. The landlord submitted an application, dated 2 July 2025, to register a fair rent of £1320.00 per month. Previous to the application the Rent Officer had registered a fair rent of £1100.00 per month effective from 28 September 2023. Following the application the Rent Officer registered a fair rent of £1221.57 per month effective from 28 September 2025. Following an objection from the tenant on 27 August 2025 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.

2. Directions were issued on 15 October 2025. The matter was determined on the papers on 11 December 2025, without an inspection. Neither party requested an inspection or a hearing.

Inspection 3. The property is described in the Rent Register as a self-contained converted flat, without central heating comprising 4 rooms, 1 kitchen a bath and a WC.

4. The tribunal did not inspect the property.

Evidence

Submission by the Tenant

5. The tenant submitted a number of documents these included; a completed Reply Form and a copy of the letter of objection.

6. The completed Reply Form, notes that the tenant did not require an inspection nor a hearing. The Reply Form notes; the flat is on the third floor, dimensions are provided. The Reply Form notes the property has double glazing, carpets, curtains and white goods supplied by the tenant. The Reply Form notes under improvements; (i) repainted and recarpeted the main bedroom, including underlay (ii) repainted second bedroom in October 2025 and (iii) repainted hallway in September 2024.

7. The letter of objection, the contents of which the tribunal notes, contained four aspects (i) challenge to the Rent Officers Maximum Fair Rent calculation, (ii) the condition of the property (iii) tenant funded works and (iv) comparisons with other similar regulated rents and (iv) hardship and proportionality. The tenant notes the carpets in the hallway and living room will need replacing soon. The tribunal notes the contents of the Reply Form.

8. Specifically on the condition of the property “the flat remains without central heating, ...no services or furniture provided by the landlord. The property is in an outdated condition, which in my view does not justify an increase of this magnitude.”

9. Specially on “tenant funded works”, any recent redecorations such as repainting and recarpeting certain rooms, were carried out at my expense.” Copies of receipts were available to the tribunal within the Reply Form.

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Submission by the Landlord

10. The landlord has submitted a completed Reply Form noting they did not request a hearing or an inspection. The form confirms there is no central heating and that the tenant supplies the curtains and carpets.

Tribunal finding

11. The property is said to have double glazing supplied according to the tenant by the tenant. The landlord in their form does not contest this but is unsure who provided the double glazing. The tribunal finds on the balance of probability the tenant supplied the double glazing.

Determination and Valuation

Valuation

12. In determining the level of rent for the fair rent, the tribunal must carry out a valuation under section 70 of the Rent Act 1977 and then an assessment under the Rent Acts(Maximum Fair Rent) Order 1999.The latter assessment is dependent on the inflation rate between the last registered rent and the date of the current determination which is the date of hearing. The tribunal must then adopt the lower of the two figures as the fair rent to be registered.

13. Having consideration of the comparable evidence proved by the parties and our own expert general knowledge of rental values in the area, the tribunal adopts the figure of £2200.00 per calendar month.

14. From this level of rent we have made adjustments in relation to: (i) terms and conditions the tenancy that is the tenant is responsible for internal decoration which is more onerous than contemporary tenancies from which the comparables are derived (ii) improvements made by the tenant, installation of double glazing (iii) the supply of curtains and carpets and (iv) general condition of the property , including no central heating ,compared with contemporary lettings.

15. The tribunal has also made an adjustment for scarcity at 20%.

Market Rent

£2200pcm

Less: 30% for (i) to (iv) above;

£ 660 pcm

---------------------------------------- £ 1540 pcm

Less 20% for scarcity £ 308 pcm

4 -----------------------------------

£ 1232 pcm

16. The tribunal determines a rent under section 70 of £ 1232 pcm.

Decision

17. The rent calculated under section 70 Rent Act 1977 is £1232 pcm.

18. The rent calculated under the Rent Acts (Maximum Fair Rent) Order 1999 is £1239.50 pcm. The rent calculated under section 70 of the Rent Act 1977 rent is lower than the rent calculated under the Rent Acts (Maximum Fair Rent) Order 1999. Therefore, the tribunal determines the rent to be registered is £1232.00 pcm with effect from 11 December 2025.

Chairman: [NAME]: 11 December 2025

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Appeal to the Upper Tribunal A person wishing to appeal this decision to the Upper Tribunal (Property Chamber) on a point of law must seek permission to do so by making a written application to the First-tier Tribunal at the Regional Office which has been dealing with the case which application must: a. be received by the said office within 28 days after the Tribunal sends to the person making the application written reasons for the decision. b. identify the decision of the Tribunal to which it relates, state the grounds of appeal, and state the result the party making the application is seeking. If the application is not received within the 28 –day time limit, it must include a request for an extension of time and the reason for it not complying with the 28- day time limit; the Tribunal will then decide whether to extend time or not to allow the application for permission to appeal to proceed.