First-tier Tribunal Determines Fair Rent for Regulated Tenancy

OUTCOME: Allowed

© CROWN COPYRIGHT 2025

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : CAM/00MF/F77/2025/0027 Property : 4 [ADDRESS] [POSTCODE] Applicant Landlord : [APPELLANT] : [NAME] Respondent Tenant : Mrs [COUNSEL] E [COUNSEL] : None Type of Application :

Section 70 [NAME] 1977 (“the Act”) Determination by the First-Tier Tribunal of the fair [NAME] of a property following an objection to the [NAME] registered by the [NAME].

Tribunal Members :

Mr [NAME] of Inspection : 6th October 2025

Date of Decision

:

6th October 2025

DECISION

CAM/00MF/F77/2025/0027

2 Summary of Decision

On 10th February 2025 the Tribunal determined a [NAME] of £805 per month with effect from 10th February 2025.

Background

1. On 5th October 2024 [NAME] applied to the [NAME] for registration of a [NAME] for the property.

2. The [NAME] was previously registered on 30th March 2022 at a figure of £765 per month week following a determination by a [NAME]. This [NAME] was effective from 30th March 2022.

3. A new [NAME] was registered by the [NAME] on 1st July 2025 at a figure of £795 per month. This new [NAME] was effective from 1st July 2025.

4. On 18th July 2025 [NAME] objected to the new [NAME] and the matter was referred to the First-tier Tribunal Property Chamber (Residential Property), formerly a [NAME].

5. The Tribunal does not routinely consider it necessary and proportionate in cases of this nature to undertake inspections or hold Tribunal hearings unless either are specifically requested by either party or a particular point arises which merits such an inspection and/or hearing.

6. The Tribunal office issued directions on 5th August 2025 which informed the parties that the Tribunal intended to determine the [NAME] on the basis of written representations but would be inspecting the property, subject to the parties requesting an oral hearing. No request was made by the parties for a hearing.

7. Both parties were invited to include photographs within their representations if they so wished.

8. [NAME] made a submission to the Tribunal which had also been copied to the Tenant.

9. These reasons address the key issues raised by the parties. They do not recite each and every point referred to either in submissions or during any hearing. However, this does not imply that any points raised, or documents not specifically mentioned were disregarded. If a point or document was referred to in the evidence or submissions that was relevant to a specific issue, then it was considered by the Tribunal. The Tribunal concentrates on those issues which, in its opinion, are fundamental to the application.

The Law

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3 10. When determining a fair [NAME] the Tribunal, in accordance with the [NAME] 1977, section 70, had regard to all the circumstances including the age, location and state of repair of the property. It also disregarded the effect of (a) any relevant tenant's improvements and (b) the effect of any disrepair or other defect attributable to the tenant or any predecessor in title under the regulated tenancy, on the rental value of the property.

11. In [COMPANY] v Chairman of the Greater Manchester etc. Committee (1995) 28 HLR 107 and [NAME] v [NAME] [1999] QB 92 the Court of Appeal emphasised

(a) that ordinarily a fair [NAME] is the market [NAME] for the property discounted for 'scarcity' (i.e. that element, if any, of the market [NAME], that is attributable to there being a significant shortage of similar properties in the wider locality available for letting on similar terms - other than as to [NAME] - to that of the regulated tenancy) and

(b) that for the purposes of determining the market [NAME], assured tenancy (market) rents are usually appropriate comparables. (These rents may have to be adjusted where necessary to reflect any relevant differences between those comparables and the subject property).

12. The Tribunal also has to have regard to the [NAME] ([NAME]) Order 1999 where applicable. Most objections and determinations of registered rents are now subject to the Order, which limits the amount of [NAME] that can be charged by linking increases to the Retail Price Index. It is the duty of the Property Tribunal to arrive at a fair [NAME] under section 70 of the Act but in addition to calculate the maximum fair [NAME] which can be registered according to the rules of the Order. If that maximum [NAME] is below the fair [NAME] calculated as above, then that (maximum) sum must be registered as the fair [NAME] for the subject property.

13. The tenancy is a statutory (protected) periodic tenancy and as such (not being for a fixed tenancy of 7 years or more) is subject to section 11 of the Landlord and Tenant Act 1985 which sets out the landlords statutory repairing obligations; the tenant is responsible for internal decorations.

The Inspection

14. The Tribunal inspected the property which comprises a semi-detached house situated in a cul-de-sac approximately ½ mile east of the centre of Wokingham.

15. The main walls are of solid brick construction all beneath a pitched slate roof. The main gable wall is part rendered. Heating is a gas-fired system.

16. The entrance door is on the side of the house giving access to a living room at the front and dining room at the rear. Beyond the dining room is a kitchen and small utility area within a former outside WC.

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4 17. A central staircase leads to a small landing with 2 bedrooms. There is a bathroom with WC that is accessed through the rear bedroom. Bedrooms have fitted wardrobes.

18. Outside there is a small front garden and there is a long garden to the rear. Parking is on street only.

19. The Tenant stated that she had been born in the house in 1944 and that she had carried out many improvements to the property including the installation of double-glazed windows, moving the outside WC inside, fitting out the kitchen and bathroom, and the provision of fitted wardrobes and cupboards.

20. The Tenant has maintained the internal decorations in good order.

Evidence and Representations

21. [NAME] submitted a Reply Form dated 20th August 2025 which gives no details regarding central heating, double glazing, carpets, curtains or white goods or the condition of the accommodation.

22. The Agent states that there is off-street parking and questions the [NAME]’s assessment of a market [NAME] but provides no evidence of what he considers that figure should be. The Agent also suggests that no reduction should be made to reflect scarcity.

23. The [NAME] assessed an open market [NAME] for the property of £1,305 per month.

Determination and Valuation

24. The Tribunal first considered whether it felt able to reasonably and fairly decide this case based on the papers submitted only, with no oral hearing. Neither party had requested a hearing. Having read and considered the papers it decided that it could do so.

25. The Tribunal found that the property is very well maintained internally and that several improvements have been made by the Tenant.

26. The accommodation is inconvenient in that the bathroom is only accessed through the rear bedroom.

27. In the first instance the Tribunal determined what [NAME] the Landlord could reasonably be expected to obtain for the property in the open market if it were let today in the good condition that is considered usual for such an open market letting. Market rents are usually expressed as a figure per month and a letting would normally include floorings, curtains and white goods to all be provided by the Landlord.

28. In determining an ‘open market [NAME]’ the Tribunal had regard to the evidence supplied by the parties and the Tribunal's own general

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5 knowledge of market [NAME] levels in the area of Wokingham. Having done so it concluded that such a likely market [NAME] would be £1,300 per calendar month.

29. However, the property was not let in a condition considered usual for a modern letting at a market [NAME]. Therefore, it was first necessary to adjust that hypothetical [NAME] of £1,300 per calendar month particularly to reflect the fact that the carpets, curtains and white goods were all provided by the Tenant which would not be the case for an open market assured shorthold tenancy.

30. Further adjustments were necessary to reflect the Tenant’s liability for internal decoration, the Tenant’s provision of kitchen fittings, bathroom fittings, accessing the ground floor WC from inside, the Tenant’s provision of double glazing and the inconvenient layout.

31. The Tribunal therefore considered that this required a total deduction of £495 month made up as follows:

Tenant’s provision of carpets £50 Tenant’s provision of white goods £30 Tenant’s provision of curtains £15 Tenant’s liability for internal decoration £50 Tenant’s bathroom fittings £75 Tenant’s kitchen fittings £100 Tenant’s provision of doble glazing £100 Internal layout, bathroom via bedroom 2 £75

TOTAL adjustment per month £495

32. The Tribunal noted the number of properties available to [NAME] in the area as advertised on Rightmove and Zoopla, and concluded that there was no substantial scarcity element in the area of Wokingham and surrounding areas.

Decision

33. Having made the adjustments indicated above the [NAME] determined by the Tribunal for the purpose of section 70 of the [NAME] 1977 was accordingly £805 per calendar month.

34. The Section 70 [NAME] determined by the Tribunal is below the maximum fair [NAME] of £1,002.50 permitted by the [NAME] ([NAME]) Order 1999 details of which are shown on the rear of the Decision Notice and accordingly we determine that the lower sum of £805 per month is registered as the [NAME] with effect from 6th October 2025.

Accordingly the sum of £805 per month will be registered as the [NAME] with effect from the 6th October 2025 this being the date of the Tribunal’s decision.

CAM/00MF/F77/2025/0027

6

RIGHTS OF APPEAL

1. A person wishing to appeal this decision to the Upper Tribunal (Lands Chamber) must seek permission to do so by making written application by email to [EMAIL] to the First-tier Tribunal at the [NAME] which has been dealing with the case.

2. The application must arrive at the Tribunal within 28 days after the Tribunal sends to the person making the application written reasons for the decision.

3. If the person wishing to appeal does not comply with the 28 day time limit, the person shall include with the application for permission to appeal a request for an extension of time and the reason for 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.

4. The application for permission to appeal must 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.

FR27 First-tier Tribunal – Property Chamber File Ref No. CAM/00MF/F77/2025/0027

Notice of the Tribunal [NAME] 1977 Schedule 11

Address of Premises The Tribunal members were 4 [ADDRESS] [POSTCODE]

[NAME]

Landlord [APPELLANT]

Tenant Mrs [APPELLANT]

1. The fair [NAME] is £805 Per Month (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 6th October 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 [NAME] allowance is

n/a Per n/a

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

Gas central heating has been fitted.

8. For information only:

(a) The fair [NAME] to be registered is not limited by the [NAME] ([NAME]) Order 1999, because it is below the maximum fair [NAME] of £1,002.50 prescribed by the Order.

[NAME] of decision 6th October 2025

FR27 [NAME] FIGURE X 407.70

PREVIOUS RPI FIGURE Y 323.50

X 407.70 Minus Y 323.50 = (A) 84.20

(A) 84.20 Divided by Y 323.50 = (B) 0.2603

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

If yes (B) plus 1.075 = (C) n/a

If no (B) plus 1.05 = (C) 1.3103

Last registered [NAME]* £765 Multiplied by (C) = £1,002.37 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £1,002.50

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

[NAME] = £1,002.50 Per 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].