First-tier Tribunal Determines Fair Rent Under Rent Act 1977

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. FR/LON/OOBG/F77/2025/0217

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 93 [ADDRESS], [POSTCODE]

[NAME]

Landlord [NAME]

Tenant Mrs [APPELLANT]

1. The fair rent is £390.00 Per week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 23 September 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 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 the not the maximum fair rent as prescribed by the Rent Acts (Maximum Fair Rent) Order 1999 because the rent determined under the market approach section 70 is lower.

[NAME] of decision 23 September 2025

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 406.2

PREVIOUS RPI FIGURE Y 375.3

X 406.2 Minus Y 375.3 = (A) 30.90

(A) 30.90 Divided by Y 375.3 = (B) 0.0823

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) 1.1323

Last registered rent* £415.00 per week Multiplied by (C) = £469.91 per week *(exclusive of any variable service charge)

Rounded up to nearest 50p = £470.00 per week.

Variable service charge no If YES add amount for services no

MAXIMUM FAIR RENT = £470.00 Per week

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.

1

Case Reference

: FR/LON/00BG/F77/2025/0217

Property : 93 [ADDRESS],[POSTCODE]

Tenant

: Mrs [APPELLANT]

Landlord : [COMPANY] of Objection : 5 June 2025

Type of Application : Section 70, Rent Act 1977

Tribunal

: [NAME]

: 23 September 2025

_______________________________________________

DECISION

The sum of £390.00 per week will be registered as the fair rent with effect from 23 September 2025, being the date the Tribunal made the Decision. ____________________________________

© CROWN COPYRIGHT 2023

Full REASONS

Background FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2 1. The Landlord submitted an application received by the Rent Officer on 12 March 2025 to register a Fair Rent. The Landlord proposed £498.00 per week. Previous to the application the Rent Officer had registered a Fair Rent of £415.00 per week effective from 22 May 2023.

Following the application the Rent Officer registered a Fair Rent of £411.72 per week effective from 22 May 2025.

Following an objection from the Landlord on 5 June 2025 to the determination of a Fair Rent by the Rent Officer, the Tribunal has made a determination under the provisions of the Rent Act 1977.

2. The case was determined on the papers without inspection on 23 September 2025.

Property Description

3.The property is described as a terraced house with full central heating, comprising on the ground floor one room, one bathroom with WC, and a living room/ kitchen, and on the first floor three rooms, outside there is a garden.

Evidence

Submission by the tenant

4. The Tenant’s representative by letter received by the Rent Officer on 4 April 2025, noted that they took issue with an item in the application to register a fair rent, namely, number four had an outside WC, the note states that the outside WC was removed some 15-20 years ago. Additionally, it is noted that “the kitchen and bathroom in the property was built and paid for by my father (with permission from the landlord).” The note states the downstairs has damp issues. [RESPONDENT] from the removal of the outside WC by the Landlord some years ago.

Included with the papers submitted by the Rent Officer is a copy of their inspection notes dated 9 May 2025.

The inspection notes the property dates from the late 1800 and has sash windows which were replaced 10 years ago. The entrance hall is damp and the central heating pipes are exposed. There was no kitchen in the house when the tenancy commenced other than a butlers sink. The staircase is narrow and again exposed pipework. There are good amenities nearby.

3 Submission by the landlord

4. The Landlord submitted a completed Reply Form. The Reply Form notes two living rooms, three bedrooms and a bathroom. The Landlord submits that the property has central heating, and double glazing and that both these were installed by the Landlord. Further than carpets, curtains and white goods are the tenants.

In terms of improvements the Landlord notes, the double glazing was installed in 2014, the gas central heating in 2019.

The Landlord submits two comparables both said to be smaller than the subject property, these are [ADDRESS] E2, and Ebenezer Mussel House, [ADDRESS] at £3250.oo per month, furnished.

Determination and Valuation

Having consideration of the comparable evidence proved by the parties, Landlord suppling two comparables, and our own expert, general knowledge of rental values in the area, we consider that the open market rent for the property in good tenantable condition would be in the region of £3250.00 per calendar month.

From this level of rent we have made adjustments in relation to: (i) terms and conditions the tenancy dates (10%) , the terms likely to be more onerous than the contemporary tenancies from which the comparables are derived (ii) improvements made by the tenant in this case the kitchen and bathroom (20%), additionally the issues around damp the tribunal deducts 5%.

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

7. The full valuation is shown below:

Market Rent

£3250.00 per calendar month

Less 35% as above -£1137.50 per calendar month

£ 2112.50 per calendar month

Less Scarcity 20%

£422.50 per calendar month

Section 70 rent £ 1690.00 per calendar month

8. The Tribunal determines a rent under section 70 of £1690.00 per calendar month which is equivalent to £390.00 per week.

4 9. The tribunal also determined the rent under the Maximum Fair Rent Regulations this from the attached template is £470.00 per week.

10. The Rent Act 1977 provides that the rent to be registered is the lesser of the section 70 rent, and rent determined under the maximum Fair Rent Order.

Decision

9. The tribunal therefore determines the Fair Rent for the subject property is £390.00 per week from 23 September 2025.

Chairman: [NAME]: 23 September 2025

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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.