First-tier Tribunal Sets Fair Rent After Tenant Improvements
📌 In brief
The First-tier Tribunal decided on the fair rent for a rented property, taking into account the improvements made by the tenant such as new windows, central heating, and repairs to the roof. The tribunal also considered market conditions in setting the rent at £218 per week.
⚖️ Legal holding
A tenant is entitled to a fair rent that reflects the condition of the property and market conditions after accounting for any improvements made by the tenant.
📖 Technical summary
The Tribunal determined the fair rent for a property under the Rent Act 1977, considering improvements made by the tenant and scarcity in the rental market.
📜 Headnote Official document
The First-tier Tribunal determined a fair rent for a property under the Rent Act 1977, considering the condition of the property after tenant improvements and market conditions. The rent was set at £218 per week.
📚 Full judgment Official document
OUTCOME: Allowed
FR27 First-tier Tribunal – Property Chamber File Ref No. LON/00AC/F77/2026/0075
Notice of the Tribunal Decision
Rent Act 1977 Schedule 11
Address of Premises The Tribunal members were [ADDRESS] [POSTCODE]
[NAME] Mr [APPELLANT]
Landlord [APPELLANT]
Tenant Mrs [APPELLANT]
1. The fair rent is £218.00 Per week (excluding water rates and council tax but including any amounts in paras 3&4)
2. The effective date is 24 June 2026
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/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)/ do not apply because 1st registration/15% exemption.
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 the same as/below the maximum fair rent of £ 224.00 ........ per week ........... including £ ......................................... per ................................. for services (variable) prescribed by the Order.
[NAME] of decision 24 June 2026
FR27 MAXIMUM FAIR RENT CALCULATION
LATEST RPI FIGURE X 414.4
PREVIOUS RPI FIGURE Y 378
X 414.4 Minus Y 378 = (A) 36.4
(A) 36.4 Divided by Y 378 = (B) 0.[PHONE]
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) 1.146296296
Last registered rent* 195.00 Multiplied by (C) = 223.52 *(exclusive of any variable service charge)
Rounded up to nearest 50p = 224.00
Variable service charge YES / NO If YES add amount for services -
MAXIMUM FAIR RENT = £224.00 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.
© CROWN COPYRIGHT 2025
Case Reference : LON/00AC/F77/2026/0075 Property : [ADDRESS] [POSTCODE] Tenant : [NAME] [COUNSEL] Landlord : [COUNSEL] Landlord Representative : [RESPONDENT] of Objection : 30 January 2026 Type of Application : Section 70, Rent Act 1977 Tribunal Members : Mrs [NAME] Mr [NAME] and venue of Consideration : 11 May 2026 [ADDRESS], London Date of Decision : 24 June 2026
_______________________________________________
DECISION
The sum of £218.00 per calendar week will be registered as the fair rent with effect from 24 June 2026, being the date the Tribunal made the Decision. ____________________________________
FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)
2
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 has carried out an inspection of the property on 11 May 2026.
3. During the inspection, it was noted that the Tenant had replaced the windows at the Property, installed central heating and all carpets and floor coverings in the Property. The Tenant had also repaired a leak to the roof.
4. The main door to the Property and the front door into the home were wooden.
5. The living room had two radiators and a UPVC door to the rear yard. The room was large and was carpeted throughout. There was also an under- stair cupboard.
6. Through to the dining room from the living room, the area was carpeted, had a radiator, electric fire and UPVC double glazed windows.
7. Off from the dining room was the bedroom. This area is carpeted with a built-in wardrobe, a double bed, wardrobe and chest of drawers. The window is a wooden frame with single glazing. The boiler is located in this room which the Tenant replaced last year. There were signs of an old leak from the property above.
8. In the kitchen the Tenant had replaced the cabinets and the rear door (which is now UPVC double glazed) around 3 years ago.
9. The bathroom contains a UPVC double glazed window, tiled flooring, toilet, sink, shower, towel radiator and tiled throughout. The ceiling had signs of mould.
10. The back door has steep steps leading into the garden and the Tenant has installed a handrail. The Tenant has replaced the fence previously, the shed is the Tenant’s and the garden is generally in very good condition. The rear fence is bending and appears unstable.
3 Evidence 11. The Tribunal has consideration of the written submissions provided by the parties. Determination and Valuation 12. Having consideration of 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 £2,000 per calendar month. From this level of rent we have made adjustments in relation to the double-glazing work undertaken by the Tenant, the central heating installation carried out by the Tenant, the lack of white goods provision, no provision of floor coverings or curtains, works undertaken by the Tenant in relation to the kitchen.
13. The Tribunal has also made an adjustment for scarcity.
14. The full valuation is shown below:
per calendar month Market Rent
£2,000
Less Double glazing
) 7% Boiler installation by Tenant
) 5% Kitchen works by Tenant
) 7% Central heating installation
) 7% No curtains / floor coverings
) 5% Tenant decoration liability
) 5% No white goods provision
) 5%
£820
£1,180
Less Scarcity
approx. 20%
£236
£944
15. The Tribunal determines a rent of £944 per calendar month and this equates to £218 per week month. Decision 16. The uncapped fair rent initially determined by the Tribunal, for the purposes of section 70, was £218.00 per week. The capped rent for the property according to the provisions of the Rent Acts (Maximum Fair
4 Rent) Order 1999 is calculated at £224.00 per week. The calculation of the capped rent is shown on the decision form. In this case the lower rent of £218.00 per week is to be registered as the fair rent or this property. Chairman: [NAME]: 24 June 2026
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 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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- Employment Tribunal Employer Must Pay Back Unlawfully Deducted Wages
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 tenant was entitled to a fair rent reflecting the property's condition and market values.
- The tenant's improvements, such as replacing windows and installing central heating, reduced the fair rent.
- The lack of white goods, floor coverings, and curtains provided by the landlord reduced the fair rent.
- The tenant's liability for decoration also contributed to a lower fair rent.
- An adjustment for scarcity in the rental market was applied to further reduce the rent.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The First-tier Tribunal set a fair rent of £218 per week for a rented property.
Who was involved?
A tenant and a landlord were involved in the case, with the tribunal deciding on the fair rent.
How did the court decide, and why?
The tribunal considered improvements made by the tenant and market conditions to determine the fair rent.
Which laws or rules were applied?
The Rent Act 1977 and the Rent Acts (Maximum Fair Rent) Order 1999 were used in determining the fair rent.
What was the argument that mattered most?
The improvements made by the tenant, such as new windows and central heating, influenced the decision on the fair rent.
Was the decision for or against the person who brought the case?
The decision was in favour of the tenant, setting a lower rent than initially proposed.
What does this mean for someone in a similar situation?
Someone in a similar situation can argue that improvements they have made to their rented property should be considered when determining fair rent.
What evidence or documents mattered?
Evidence of the tenant's improvements and market rental values were important in making the decision.
Can a decision like this be appealed?
Yes, decisions from the First-tier Tribunal can often be appealed to a higher court.
Is it worth getting a solicitor for a case like this?
It is advisable to consult with a qualified solicitor for advice on your specific situation.
