First-tier Tribunal Determines Fair Rent for Property

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. LON/00AE/F77/2025/0086

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 61 [ADDRESS], [POSTCODE]

Tribunal Judge Sarah McKeown Mrs. A. Flynn MA MRICS

Landlord [NAME]

Tenant Mrs. [APPELLANT]. [APPELLANT]

1. The fair rent is £230 Per week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 8 May 2025

3. The amount for services is N/A Per

not applicable

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

N/A Per

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)/ do not apply because 1st registration/15% exemption.

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

[NAME] was not inspected

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 £403.20 ................. per week ......................... including £ ...................... per ................................. for services (variable).

(b) The fair rent to be registered is not limited by the Rent Acts (Maximum Fair Rent) Order 1999, because it is the same as/below the maximum fair rent of £ ................... per .................... including £ ......................................... per ................................. for services (variable) prescribed by the Order. Trib

Chairman Tribunal Judge Sarah McKeown Date of decision 8 May 2025

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 395.3

PREVIOUS RPI FIGURE Y 292

X 395.3 Minus Y 292 = (A) 103.3

(A) 103.3 Divided by Y 292 = (B) 0.353767123

First application for re-registration since 1 February 1999 NO

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.40376712

Last registered rent* £163.50 Multiplied by (C) = £229.52 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £230

Variable service charge NO If YES add amount for services

MAXIMUM FAIR RENT = £230 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.

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FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : LON/00AE/F77/2025/0086 Property : 61 [ADDRESS], [POSTCODE] Tenant : Mrs. [APPELLANT]. [APPELLANT] Landlord : [NAME] of Application : Determination of a Fair Rent – Section 70, Rent Act 1977

Tribunal Members : Judge Sarah McKeown Mrs. A. Flynn MA MRICS Date and venue of Consideration : 10 [ADDRESS] [POSTCODE]

Date of Summary Reasons : 8 May 2025

DECISION The sum of £230 per week will be registered as the fair rent with effect from 8 May 2025, being the date the Tribunal made the Decision.

SUMMARY REASONS

The Background 1. On 12 December 2024 the Rent Officer registered a rent of £227 per week, effective from 12 December 2024. Following an objection from

2 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.

2. The last registered fair rent was £163.50 per week, effective from 3 February 2020.

3. Directions were issued on 14 March 2025 by the Tribunal. The parties were directed to provide reply forms, and invited to submit any relevant information and submissions.

4. The Tribunal did not inspect [NAME] 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 1. The Tribunal has considered the representations made on behalf of the Tenant. From the information provided, it appears that 61 [ADDRESS] [POSTCODE] (“[NAME]”) is a terrace house with one room and a kitchen/diner on the ground floor and three rooms and a bathroom/WC on the first floor. [NAME] has full central heating. [NAME] is let on a weekly tenancy which commenced on 28 November 1994.

2. The landlord is responsible for repairs and external decorations. The tenant is responsible for the internal decorations and the tenancy is subject to s.11 Landlord and Tenant Act 1985.

3. No services or furniture has been provided by the Landlord. No improvements are said to have been carried out by the tenant and no replacement of fixtures or fittings. There are no allegations of disrepair.

4. Neither party has submitted any comparable evidence.

Determination and Valuation 5. Having consideration of the evidence and our own expert, general knowledge of rent values in the area, we consider that the open market rent for [NAME] in a good tenantable condition would be in the region of £560 per week. From this level of rent we have made adjustments in relation to:

3 (a) The tenant’s decorating liability, L resp for all repairs and decs; (b) No furniture provided by the Landlord; (c) White goods, curtains, carpet and floor coverings provided by the Tenant (d) The condition of [NAME]. 6. The full valuation is shown below: Per week

Market rent

£560

Less deductions as above

10% -£56

Adjusted rent

£504

Less scarcity

20% -£100.80

Fair rent

£403.20 7. The Tribunal therefore determines a rent of £403.20 per week for the purposes of s.70.

Decision 8. The uncapped fair rent initially determined by the Tribunal for the purposes of s.70 was £403.20 per week. The capped rent for [NAME] according to the provisions of the Rent Acts (Maximum Fair Rent) Order 1999 is calculated at £230 per week. The calculation of the capped rent is shown on the decision form. In this case, the lower rent of £230 per week is to be registered as the fair rent for this property. Name: Judge Sarah McKeown Date: 8 May 2025

APPEAL PROVISIONS

4

These summary reasons are provided to give the parties and 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.