First-tier Tribunal Determines Fair Rent Under Rent Act 1977

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. LON/00BE/F77/2023/0258

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

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

Judge [NAME]

[APPELLANT]

Tenant Mrs [APPELLANT]

1. The fair rent is 218 Per week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 2nd November 2023

3. The amount for services is

Per

negligible/not applicable

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

Per

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 (please see calculation overleaf).

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 below the maximum fair rent of £223 per week including £ ......................................... per ................................. for services (variable) prescribed by the Order.

Chairman Judge Nicol Date of decision 2nd November 2023

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 378.4

PREVIOUS RPI FIGURE Y 305.5

X 378.4 Minus Y 305.5 = (A) 72.9

(A) 72.9 Divided by Y 305.5 = (B) 0.2386252

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) 1.2886252

Last registered rent* £173 Multiplied by (C) = 222.93 *(exclusive of any variable service charge)

Rounded up to nearest 50p = 223

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

MAXIMUM FAIR RENT = £223 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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Case Reference

: LON/00BE/F77/2023/0258

Property : [ADDRESS] [POSTCODE]

Tenant

: [APPELLANT] [NAME]

Landlord : [APPELLANT] : [NAME] of Objection : 5th January 2023

Type of Application : Section 70, Rent Act 1977

Tribunal

: Judge [NAME] of Summary Reasons

: 2nd November 2023

_______________________________________________

DECISION

The sum of £ per week will be registered as the fair rent with effect from 2nd November 2023, being the date the Tribunal made the Decision. ____________________________________

© CROWN COPYRIGHT 2023

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

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SUMMARY REASONS

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.

Inspection 2. The Tribunal inspected the property. It is a flat on the first floor of a converted house and comprises two bedrooms, a living room, a kitchen and a bathroom/WC. It is dated, with unmodernised kitchen and bathroom and single-glazed windows, some of which are in poor condition. The landlord has not provided white goods, curtains or floor coverings. In their written submissions, the landlord’s agents claimed there are communal gardens but the garden is only accessible by the ground floor tenant.

Evidence 3. Both parties completed the Tribunal’s Reply Form with some written submissions but neither provided details of any comparable properties.

Determination and Valuation 4. Having consideration of the comparable evidence used by the Rent Officer and our own expert, general knowledge of rental values in the area, we consider that the open market rent for the property would be in the region of £420 per week. From this level of rent we have made adjustments in relation to:

(a) No central heating (b) Unmodernised kitchen and bathroom (c) Single-glazed windows (d) No white goods (e) No curtains / carpets (f) Tenant's repair liability

5. The Tribunal has also made an adjustment for scarcity.

6. The full valuation is shown below:

per week Market Rent

£420

Less No central heating

) Unmodernised kitchen and bathroom ) Single-glazed windows

) No white goods

) approx. 35% No curtains / carpets

) Tenant's repair liability

)

147

3

273

Less Scarcity

approx. 20%

55

£218

Decision

7. The uncapped fair rent determined by the Tribunal, for the purposes of section 70, was £218 per week. The capped rent for the property according to the provisions of the Rent Acts (Maximum Fair Rent) Order 1999 is calculated at £223 per week. The calculation of the capped rent is shown on the decision form. In this case the lower rent of £218 per week is to be registered as the fair rent or this property.

Chairman: Judge Nicol

Date: 2nd November 2023

APPEAL PROVISIONS

These summary reasons are provided to give the parties an 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.