First-tier Tribunal Determines Fair Rent for Residential Property

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. LON/00AY/F77/2023/0377

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

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

Tribunal Judge S. J. Walker Tribunal Member [NAME] MA MRICS

Landlord [APPELLANT]

Tenant Mr [APPELLANT] T [APPELLANT]

1. The fair rent is £908.50 Per Calendar month (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 1 February 2024

3. The amount for services is £21.48 Per Calendar month

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

negligible/not applicable

5. The rent is/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

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 £ ............................ per ................................... 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 £ 1,003 .......... per month ......... including £ 21.48 ................................ per month ...................... for services (variable) prescribed by the Order.

Chairman Tribunal Judge S. Walker Date of decision 1 February 2024

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 379

PREVIOUS RPI FIGURE Y 308.6

X 379 Minus Y 308.6 = (A) 70.4

(A) 70.4 Divided by Y 308.6 = (B) 0.22813

First [NAME] for re-registration since 1 February 1999 YES/NO

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.27813

Last registered rent* £784.50 Multiplied by (C) = £1,002.69 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £1,003

Variable service charge YES / NO If YES add amount for services

MAXIMUM FAIR RENT = £1,003 Per Calendar 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 [NAME] was the first since 1 February 1999) or 5% (if it is a second or subsequent [NAME] 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 [NAME] of the formula is ascertained the service charge is then added to that sum in order to produce the maximum fair rent.

© CROWN COPYRIGHT 2024

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : LON/00AY/F77/2023/0377 Property : [ADDRESS] [POSTCODE] Tenant : Mr. [APPELLANT].[APPELLANT]. [APPELLANT] Landlord : [APPELLANT]. Type of [NAME] : Assessment of Fair Rent Date of [NAME] : 24 October 2023 Tribunal Members : Tribunal Judge S.J. Walker Tribunal Member [NAME] MA MRICS Date of Summary Reasons : 2 February 2024

DECISION

The sum of £920 per calendar month (including £21.48 per calendar month for services) will be registered as the fair rent with effect from 1 February 2024, being the date the Tribunal made the decision.

SUMMARY

REASONS Background 1. Following an objection by the landlord dated 24 October 2023 to the Rent Officer’s valuation of the fair rent of the above property at £900 with effect from 27 September 2023, the Tribunal has made a determination. The landlord had served a notice proposing a new rent of £942 per calendar month in place of the existing rent of £784.50 per calendar month. The tenancy commenced at some time in 1969. A tenancy agreement was not included in the papers.

2 Inspection 2. The Tribunal carried out an inspection of the property on 1 February 2024.

Evidence 3. The Tribunal has considered the written submissions provided by both the landlord and the tenant. Neither party provided its own comparable evidence.

Determination and Valuation 4. Having considered our own knowledge of rental values in the area as an expert Tribunal, and bearing in mind that the property has only two bedrooms and a small boxroom, our view is that the open market rent for the property would be £1,975 per calendar month if it was in good condition.

5. To reflect the fact that the landlord has not supplied the kitchen and bathroom fixtures and fittings we have deducted 15%

6. To reflect the poor condition of the glazing we have deducted 5%

7. To reflect the fact that the landlord has not supplied white goods, carpets, curtains or furniture and the fact that the tenant has internal decorating obligations we have deducted 10%

8. To reflect the poor condition of the common areas we have deducted 5%

9. To reflect the many snagging items at the property following the provision of central heating by the landlord and the awkward layout of the property we have deducted 7.5%

10. This makes a total deduction of 42.5%

11. The Tribunal has also made a 20% deduction for scarcity.

12. The full valuation is shown below

Market Rent

per calendar month

£1,975

Less Deductions as set out above of 42.5%

£839.38

Sub-total

£1,135.62

Less Scarcity of approx. 20%

£227.12

Total

£908.50

3

Name: Tribunal Judge S.J. Walker Date: 2 February 2024

ANNEX - RIGHTS OF APPEAL

• The Tribunal is required to set out rights of appeal against its decisions by virtue of the rule 36 (2)(c) of the Tribunal Procedure (First-tier Tribunal)(Property Chamber) Rules 2013 and these are set out below.

• If a party wishes to appeal against this decision to the Upper Tribunal (Lands Chamber) then a written [NAME] for permission must be made to the First-tier Tribunal at the Regional office which has been dealing with the case.

• The [NAME] for permission to appeal must arrive at the Regional office within 28 days after the Tribunal sends written reasons for the decision to the [NAME].

• If the [NAME] is not made within the 28-day time limit, such [NAME] must include a request for an extension of time and the reason for not complying with the 28-day time limit; the Tribunal will then look at such reason(s) and decide whether to allow the [NAME] for permission to appeal to proceed despite not being within the time limit.

• The [NAME] for permission to appeal must identify the decision of the Tribunal to which it relates (i.e. give the date, the property and the case number), state the grounds of appeal, and state the result the party [NAME] the [NAME] is seeking.