First-tier Tribunal Determines Fair Rent for Property

OUTCOME: Allowed

First-tier Tribunal – Property Chamber File Ref No. LON/00AC/F77/2024/0242

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 19 [ADDRESS], [POSTCODE]

[NAME]

Landlord Mrs [APPELLANT], Mrs [APPELLANT] c/o Avenue Agency

Tenant Mrs [APPELLANT]

1. The fair rent is 1120 Per Month (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 5th November 2024

3. The amount for services is £32.63 Per Month

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

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)

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

8. For information only:

(a) 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 £1220 per Month.

[NAME] of decision 30th September 2024 5th November 2024

MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 389.9

PREVIOUS RPI FIGURE Y 314.3

X 389.9 Minus Y 314.3 = (A) 75.6

(A) 75.6 Divided by Y 314.3 = (B) 0.24

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) 1.29

Last registered rent* 945 Multiplied by (C) = 1,219.05 *(exclusive of any variable service charge)

Rounded up to nearest 50p = 1,220

Variable service charge NO If YES add amount for services

MAXIMUM FAIR RENT = £1220 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.

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

Case Reference

: LON/00AC/F77/2024/0242

Property : 19 [ADDRESS] [POSTCODE]

Tenant

: Mrs [APPELLANT]

Landlord : Mrs [APPELLANT] L [APPELLANT], Mrs [RESPONDENT] c/o Avenue Agency

Date of Objection : 17 June 2024

Type of Application : Section 70, Rent Act 1977

Tribunal

: Mr [NAME] of Summary Reasons : 30 September 2024 5 November 2024

_______________________________________________

DECISION

The sum of £1,120 per month will be registered as the fair rent with effect from 30 September 2024 being the date the Tribunal made the Decision. ____________________________________

© CROWN COPYRIGHT 2023

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

We exercise our powers under Rule 50 to correct the clerical mistake, accidental slip or omission on the front page of our Decision dated 3 October 2024. Our amendments are made in red. We have corrected our original Decision because the previous rent determined by the Tribunal on the 13th December 2021 was £940.00. This amendment does not affect the calculation of the Registered rent in accordance with the decision dated 30 September 2024.

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

Evidence

3. The Tribunal has consideration of the written submissions from both parties together with the Rent Officers calculations for the current registered rent.

Determination and Valuation

4. Having consideration of our own expert, general knowledge of rental values in the Finchley area, we consider that the open market rent for the property in a good and serviceable condition would be in the region of £1750 per month. From this level of rent we have made adjustments in relation to: partial white goods, no carpets or curtains, no central heating, secondary glazed windows and terms of the tenancy which equates to approximately 20%

5. The Tribunal has also made an adjustment for scarcity at 20%

6. The full valuation is shown below:

Market Rent £1750 pm

Less

approx. 20%

£350 Terms and condition

Leaves

£1400

Less Scarcity

approx. 20%

£280

Leaves

£1120 pm

7. The Tribunal determines a rent of £1,120 per calendar month

Decision

8. The uncapped fair rent initially determined by the Tribunal, for the purposes of section 70, was £1,120 per month. The capped rent for the property according to the provisions of the Rent Acts (Maximum Fair Rent) Order 1999 is calculated at £1,220 per calendar month. The calculation of the capped rent is shown on the decision form. In this case the lower rent of £1,120 per month is to be registered as the fair rent for this property effect from 30 September 2024 being the date the Tribunal made the Decision.

Chairman: [NAME]: 30 September 2024 5 November 2024

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 subsequent application for permission to appeal should be made on Form RP PTA