First-tier Tribunal Determines Fair Rent Under Rent Act 1977

OUTCOME: Allowed

FR24 First-tier Tribunal – Property Chamber File Ref No. TR/LON/00AE/F77/2023/0318

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 112A [ADDRESS], [POSTCODE]

Tribunal Judge [NAME]

Landlord [NAME]

Tenant Mr [APPELLANT]

1. The fair rent is 190.63 Per Week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 11 December 2023

3. The amount for services is £10.63 Per week

negligible/not applicable

4. The amount for fuel charges (excluding heating and lighting of common parts) not counting for rent allowance is

Not applicable 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).

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

None

8. For information only:

(a) The fair rent to be registered is not limited by the Rent Acts (Maximum Fair Rent) Order 1999, because it is below the maximum fair rent of £198.13 per week including £10.63 per week for services (variable) prescribed by the Order.

Chairman Tribunal Judge Sarah McKeown Date of decision 11 December 2023

FR24 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 377.8

PREVIOUS RPI FIGURE Y 281.5

X 377.8 Minus Y 281.5 = (A) 96.3

(A) 96.3 Divided by Y 281.5 = (B) 0.342096

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) 1.392096

Last registered rent* £134.50 Multiplied by (C) = £187.24 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £187.50

Variable service charge YES If YES add amount for services £10.63

MAXIMUM FAIR RENT = £198.13 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.

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FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : TR/LON/00AP/F77/2023/0318 HMCTS code (paper, video, audio) : P:PAPERREMOTE

Property : 112A [ADDRESS], [POSTCODE] Tenant : Mr. [APPELLANT] Landlord : [NAME] of Application : Determination of a Fair Rent – Section 70, Rent Act 1977

Tribunal Members : Judge [NAME] and venue of Consideration : 10 [ADDRESS] [POSTCODE]

Date of Summary Reasons : 11 December 2023

Description of hearing This has been a paper hearing which the parties are taken to have consented to, as explained below. A face-to-face hearing was not held because it was not practicable and all issues could be determined in a paper hearing. The form of remote hearing was P:PAPERREMOTE. The Tribunal’s decision is below.

DECISION The sum of £190.63 per week will be registered as the fair rent with effect from 11 December 2023, being the date the Tribunal made the Decision.

2

SUMMARY REASONS

The Background 1. Following an objection from the Tenant 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. No inspection was carried out. Evidence 3. The Tribunal has considered the application by the Landlord along with, among other things: (a) The letter from the Tenant dated 5 September 2023 objecting of the proposed new rent; (b) The Reply form from the Landlord. Determination and Valuation 4. The Tribunal used its own expert, general knowledge of rental values in the area. We consider that the open market rent for the property in the condition and with the amenities the market would expect would be in the region of £800 per week. From this level of rent, we have made adjustments in relation to: (a) No furniture provided; (b) No white goods; (c) No curtains or floor coverings; (d) No central heating.

5. The full valuation is shown below: Per week

Market rent (excluding services) £375

3

Less condition & terms

40% -£150

Adjusted rent

£225

Less scarcity

20% -£45

Fair rent (excluding services)

£180

Services

£10.63

Fair rent including services

£190.63 6. The Tribunal therefore determines a rent of £190.63 per week for the purposes of s.70.

Decision 7. The uncapped fair rent initially determined by the Tribunal for the purposes of s.70 was £190.63 per week. The capped rent for the property according to the provisions of the Rent Acts (Maximum Fair Rent) Order 1999 is calculated at £198.13. The calculation of the capped rent is shown on the decision form. In this case, the lower rent of £190.63 per week is to be registered as the fair rent for this property. Name: Judge Sarah McKeown Date: 11 November 2023

APPEAL PROVISIONS

These summary reasons are provided to give the parties and indication as to how the Tribunal made its decision. If either party 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 subsequent application for permission to appeal should be made on Form RP PTA.