First-tier Tribunal Determines Fair Rent for Property

OUTCOME: Allowed

FR24 First-tier Tribunal – Property Chamber File Ref No. HS/LON/00AW/F77/2024/0085

Notice of the Tribunal [NAME] 1977 Schedule 11

Address of Premises The Tribunal members were First Floor Flat 17, St. [ADDRESS], [POSTCODE]

Judge Tueje Mrs Flynn MA [APPELLANT]

Tenant Mrs [APPELLANT]

1. The fair [NAME] is £2,806.50 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 02 September 2024

3. The amount for services is Not applicable Per

negligible/not applicable

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

Not applicable Per

negligible/not applicable

5. The [NAME] is not to be registered as variable.

6. The capping provisions of the [NAME] ([NAME]) Order 1999 apply (please see calculation overleaf).

7. Details (other than [NAME]) where different from [NAME] entry

The registered [NAME] relates to the total amount payable for the lower ground floor and first floor flats

8. For information only:

(a) The fair [NAME] to be registered is the maximum fair [NAME] as prescribed by the [NAME] ([NAME]) Order 1999. The [NAME] that would otherwise have been registered was £2,806.50 per calendar month.

Chairman Judge Tueje

Date of decision 2nd September 2024

FR24 [NAME] FIGURE X 387.5

PREVIOUS RPI FIGURE Y 260.6

X 387.5 Minus Y 260.6 = (A) 126.9

(A) 126.9 Divided by Y 260.6 = (B) 0.486953

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) 1.536953

Last registered [NAME]* 1826 Multiplied by (C) = 2806.48 *(exclusive of any variable service charge)

Rounded up to nearest 50p = 2806.50

Variable service charge NO If YES add amount for services

[NAME] = £2807.50 Per Cal month

Explanatory Note

1. The calculation of the maximum fair [NAME], in accordance with the formula contained in the Order, is set out above.

2. In summary, the formula provides for the maximum fair [NAME] to be calculated by:

(a) increasing the previous registered [NAME] 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 [NAME] determination was made.

4. The process differs where the tenancy agreement contains a variable service charge and the [NAME] is to be registered as variable under section 71(4) of the [NAME] 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 [NAME].

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Case Reference

: HS/LON/00AW/F77/2024/0085

Property : Lower Ground Floor Flat and [ADDRESS], [POSTCODE]

Tenant

: Mrs [APPELLANT]

Landlord : [RESPONDENT] of Objection : 8th January 2024

Type of Application : Section 70, [NAME] 1977

Tribunal

: Judge Tueje

Mrs A Flynn MA MRICS

Date of Summary Reasons

: 2nd September 2024

_______________________________________________

DECISION

The sum of £2806.50 per calendar month will be registered as the fair [NAME] with effect from 2nd September 2024, 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 Landlord to the determination of a fair [NAME] by the [NAME], the Tribunal has made a determination under the provisions of the [NAME] 1977.

Inspection 2. The Tribunal carried out an inspection of the property on 2nd September 2024.

Evidence 3. The Tribunal has considered the written submissions provided by the Tenant, and the written and oral submissions made by the Landlord’s representative.

Determination and Valuation 4. Having considered the comparable evidence provided on behalf of the Landlord, and our own [NAME], general knowledge of rental values in the area, we consider that the open market [NAME] for the property in good tenantable condition would be in the region of £6,000 for both components of the property, namely £3,500 per calendar month for the first floor and £2,500 per calendar month for the lower ground floor. From this level of [NAME] we have made adjustments to reflect the unmodernised condition of the property. The global adjustment for both components of the property amounts to £1,975.00

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

6. The full valuation is shown below:

[NAME]

£6,000 per calendar month

Less adjustments for the condition

(£1,975)

Adjusted market [NAME]

£4,025

Less Scarcity

approx. 20% (£805)

£3,220

7. Before the landlord carried out repairs to the property, which condition the Tribunal had not inspected, the [NAME] would have been £3,180 per calendar month.

8. The difference between the [NAME] for the unimproved condition of the property (i.e. before repairs were done), and the improved condition of the property (i.e. after repairs where done), is £140. £140 is less than 15% of the [NAME] previously registered for the property, which was £1,826.00.

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Decision

9. The uncapped fair [NAME] initially determined by the Tribunal, for the purposes of section 70, was £3,220 per calendar month. The capped [NAME] for the property according to the provisions of the [NAME] ([NAME]) Order 1999 is calculated at £2,806.50 per calendar month. The calculation of the capped [NAME] is shown on the decision form. In this case the lower [NAME] of £2,806.50 per calendar month is to be registered as the fair [NAME] for this property.

Chairman: Judge Tueje

Date: 2nd September 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 request for full reasons should be made within a month. Any subsequent application for permission to appeal should be made on Form RP PTA