First-tier Tribunal Determines Fair Rent Under Rent Act 1977

OUTCOME: Allowed

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Case Reference

: HS/LON/00AY/F77/2025/0334

Property : [ADDRESS], [POSTCODE]

Tenant

: Mr [APPELLANT]

Landlord : [APPELLANT] of Objection : 29 September 2025

Type of Application : Section 70, Rent Act 1977

Tribunal

: [NAME] [NAME] [NAME] 0f Decision : 4 February 2026

_______________________________________________

DECISION

The sum of £809.50 per calendar month will be registered as the fair rent with effect from 4 February 2026, being the date the tribunal made the Decision. ____________________________________

© CROWN COPYRIGHT 2025

Full REASONS

Background FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

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1. The landlord submitted an application, dated 8 September 2025, to register a fair rent of £908.00 per calendar month. Previous to the application the Rent Officer had registered a fair rent of £571.00 per calendar month week effective from 4 June 2013, which was then subject to appeal and a figure of £544.00 per calendar month from 8 August 2013 was determined. Following the application by the landlord, the Rent Officer registered a fair rent of £907.50 per calendar month effective from 3 November 2025. Following an objection by letter dated 29 September 2025 from the tenant to the determination of a fair rent by the Rent Officer, the tribunal has made this determination under the provisions of the Rent Act 1977.

2. Directions were issued on 11 December 2025. The matter was determined on the papers on 4 February 2026, without an inspection. Neither party requested an inspection or a hearing.

Inspection 3. The property is described in the Rent Register as a self-contained converted flat, with partial central heating, comprising two rooms, one kitchen and one bathroom/WC.

4. The tribunal did not inspect the property.

Evidence

Submission by the Tenant

5. The tribunal received a copy of the email dated 18 November 2025 objecting to the rent registered by the Rent Officer.

6. There was no Reply Form, received. The tribunal was in receipt of a letter sent to the Rent Officer by the tenant dated 1 October 2025. The letter stated the rent actually paid was £571 per calendar month. Additionally, the increase is too much. The tenant then set out details of the property, no sink in the bathroom, no heating in the bedroom, the kitchen and bathroom. That one radiator is present in the front room and a new boiler installed in 2006. The second radiator was installed by the tenant, the remainder of the house heated by plug in free standing electric oil radiators.

7. The tenant noted the landlord had replaced the kitchen sink, and a toilet sink and new taps fitted to the original 1972 bath. Additionally, that the windows are draughty, the flooring is “lino on bare floorboards” which permits noise transmission. The tenant noted that there had been water leaks although at the time of writing there were no active leaks mentioned.

Submission by the Landlord

8. The landlord submitted the original application to register a rent. Additionally, the tribunal received a copy of an email dated 3 November 2025

3 noting that they believed the property had been keep in a good state of repair by the tenant, and that an RPI increase was appropriate.

Determination and Valuation

Valuation

9. In determining the level of rent for the fair rent, the tribunal must carry out a valuation under section 70 of the Rent Act 1977 and then an assessment under the Rent Acts (Maximum Fair Rent) Order 1999.The latter assessment is dependent on the inflation rate between the last registered rent and the date of the current determination which is the date of hearing. The tribunal must then adopt the lower of the two figures as the fair rent to be registered.

10. Having consideration of the comparable evidence proved by the parties and our own expert general knowledge of rental values in the area, the tribunal adopts the figure of £2100.00 per calendar month this reflects a property of the same size but in contemporary good letting order.

11. From this level of rent we have made adjustments in relation to: (i) terms and conditions the tenancy that is the tenant is responsible for internal decoration which is more onerous than contemporary tenancies ,from which the comparables are derived (ii) improvements made by the tenant none are noted, the property is assumed to be in a 1972 condition other than the landlords improvements (iii) the supply of curtains and carpets by the tenant and (iv) general condition of the property, including condition and age of fittings eg bathroom and kitchen, and extent of landlord fitted central heating , compared with contemporary lettings.

12. The tribunal has also made an adjustment for scarcity at 20%.

Market Rent

£2100.00 pcm

Less: 40% for (i) to (iv) above;

£ 840.00 pcm

---------------------------------------- leaves £ 1260.00 pcm

Less 20% for scarcity £ 252.00 pcm -----------------------------------

leaves £ 1008.00 pcm

13. The tribunal determines a rent under section 70 of £1008.00 pcm.

Decision

4 14. The rent calculated under section 70 Rent Act 1977 is £1008.00 per month.

15. The rent calculated under the Rent Acts (Maximum Fair Rent) Order 1999 is £809.50 per calendar month. The rent calculated under section 70 of the Rent Act 1977 rent is higher than the rent calculated under the Rent Acts (Maximum Fair Rent) Order 1999. Therefore, the tribunal determines the rent to be registered is £809.50 per calendar month with effect from 4 February 2026.

Chairman: [NAME]: 4 February 2026

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Appeal to the Upper Tribunal A person wishing to appeal this decision to the Upper Tribunal (Property Chamber) on a point of law must seek permission to do so by making a written application to the First-tier Tribunal at the Regional Office which has been dealing with the case which application must: a. be received by the said office within 28 days after the Tribunal sends to the person making the application written reasons for the decision. b. 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. If the application is not received within the 28 –day time limit, it must include a request for an extension of time and the reason for it 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.

FR27 First-tier Tribunal – Property Chamber File Ref No. HS/LON/OOAY/F77/2025/0334

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

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

[NAME] [NAME] [NAME]

Landlord [APPELLANT]

Tenant Mr [APPELLANT]

1. The fair rent is £809.50 Per month (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 4 February 2026

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 rent allowance is

n/a Per n/a

negligible/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.

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

n/a

8. For information only:

(a) The fair rent to be registered is not the section 70 fair rent because the rent determined under the Rent Acts (Maximum Fair Rent) Order 1999 is lower.

[NAME] of decision 4 February 2026

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 408.5

PREVIOUS RPI FIGURE Y 284.2

X 408.5 Minus Y 284.2 = (A) 124.3

(A) 124.3 Divided by Y 284.2 = (B) 0.437

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) 1.487

Last registered rent* £ 544.00 per month Multiplied by (C) = £809.12 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £809.50

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

MAXIMUM FAIR RENT = £809.50 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.

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.