First-tier Tribunal Determines Fair Rent Under Rent Act 1977
📌 In brief
The First-tier Tribunal decided on a fair a person for a property, setting it at £1,088.50 per month. This decision was made after considering the latest Retail Price Index and applying the formula specified in the a person Act 1977.
⚖️ Legal holding
The capped fair rent is calculated according to the Rent Act 1977 and the Housing Act 1996 (Rent Act 1977) Order 1999.
📖 Technical summary
The tribunal adjusted the open market rent based on property conditions and scarcity, resulting in a capped fair rent of £1,088.50 per month.
📜 Headnote Official document
The Tribunal determined a fair rent of £1,088.50 per calendar month for a property, applying the formula for calculating the maximum fair rent under the Rent Act 1977 and the Rent Acts (Maximum Fair Rent) Order 1999.
📚 Full judgment Official document
OUTCOME: Allowed
FR27 irst-tier Tribunal – Property Chamber File Ref No. LON/00BD/F77/2025/0188
Notice of the Tribunal [NAME] 1977 Schedule 11
Address of Premises The Tribunal members were 11, [ADDRESS] [POSTCODE]
Judge [NAME]
Landlord [APPELLANT]
Tenant Mr [APPELLANT]
1. The fair [NAME] is 1088.50 Per month (excluding water rates and council tax but including any amounts in paras 3&4)
2. The effective date is 26 August 2025
3. The amount for services is
Per
not applicable
4. The amount for fuel charges (excluding heating and lighting of common parts) not counting for [NAME] allowance is
Per
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
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 £1315 per month
Chairman Judge Dutton Date of decision 26 August 2025
FR27 [NAME] FIGURE X 406.2
PREVIOUS RPI FIGURE Y 372.8
X 406.2 Minus Y 372.8 = (A) 33.4
(A) 33.4 Divided by Y 372.8 = (B) 0.0896
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) 1.14
Last registered [NAME]* 955 Multiplied by (C) = 1088.31 *(exclusive of any variable service charge)
Rounded up to nearest 50p = 1088.50
Variable service charge NO If YES add amount for services
[NAME] = £1088.50 Per Calendar 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].
Case Reference : LON/00BD/F77/2025/0188 Property : 11 [ADDRESS], [POSTCODE] Tenant : Mr [APPELLANT] Landlord : [APPELLANT] of Objection : 7 April 2025 Type of Application : Section 70, [NAME] 1977 Tribunal Members : Judge [NAME] and venue of Consideration : Paper determination Date of Decision : 26 August 2025
_______________________________________________
DECISION
The sum of £1,088.50 per calendar month will be registered as the fair [NAME] with effect from 26 August 2025 being the date the Tribunal made the Decision. ____________________________________
FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)
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 did not inspect the property but considered this case on the basis of the papers provided by the parties. Evidence 3. There were no written submissions from the parties, save that on the reply form the landlord referred to location.
Determination and Valuation 4. Having consideration of our own expert and general knowledge of rental values in the area, we consider that the open market [NAME] for the property its current condition would be in the region of £2055 per calendar month. From this level of [NAME] we have made adjustments in relation to: a. The repairing obligations of the tenant, b. the lack of white goods, curtains and carpets c. and the property condition 5. The Tribunal has also made an adjustment for scarcity.
6. The full valuation is shown below:
[NAME]
£2055 per month
Less Deductions for a to c above) approx. 20% £411.00
£1644
Less Scarcity
approx. 20% £329 (rounded)
£1,315
7. The Tribunal determines a [NAME] of £1315 per calendar month Decision 8. The uncapped fair [NAME] initially determined by the Tribunal, for the purposes of section 70, was £1315 per calendar month. The capped [NAME] for the property according to the provisions of the [NAME] ([NAME]) Order 1999 is calculated at £1,088.50 per calendar month. The calculation of the capped [NAME] is shown on the decision form. In this case the lower [NAME] of £1,088.50 per calendar month is to be registered as the fair [NAME] or this property. Chairman: Judge Dutton
Date: 26 August 2025
APPEAL PROVISIONS
These summary reasons are provided to give the parties an indication as to how the Tribunal made its decision. If [NAME] 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
📊 How courts decide similar cases
Among 12 similar decisions in this collection:
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- First-tier Tribunal (Property Chamber) Tribunal sets fair rent of £877 per month under Rent Act 1977
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- First-tier Tribunal (Property Chamber) Tribunal sets fair rent of £341 per week for property
- First-tier Tribunal (Property Chamber) First-tier Tribunal Determines Fair Rent for Property
- First-tier Tribunal (Property Chamber) Tribunal Sets Fair Rent for Tenant Under Rent Act 1977
A snapshot of this collection — not a prediction of your case's outcome.
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The fair rent was determined by applying the capping provisions of the Rent Act (Maximum Fair Rent) Order 1999.
- The maximum fair rent was calculated by increasing the previous registered rent by the percentage change in the retail price index.
- A further 5% was added to the calculation because this was a second or subsequent application since February 1, 1999.
- The final calculated rent was rounded up to the nearest 50 pence.
- The Tribunal considered its own expert knowledge of rental values in the area to determine the open market rent.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tribunal set a fair rent of £1,088.50 per month for the property.
Who was involved?
The tenant and the landlord were involved in the case.
How did the court decide, and why?
The court used the formula in the Rent Act 1977 to calculate the maximum fair rent.
Which laws or rules were applied?
The Rent Act 1977 and the Rent Acts (Maximum Fair Rent) Order 1999 were applied.
What was the argument that mattered most?
The argument centered around the calculation method for determining the fair rent.
Was the decision for or against the person who brought the case?
The decision was for the tenant, who was seeking a fair rent.
What does this mean for someone in a similar situation?
Someone in a similar situation can expect their fair rent to be calculated using the same formula.
What evidence or documents mattered?
The latest Retail Price Index figures were crucial in the calculation.
Can a decision like this be appealed?
Yes, decisions like this can be appealed to a higher court.
Is it worth getting a solicitor for a case like this?
It is recommended to seek advice from a qualified solicitor for cases involving fair rent determinations.
