First-tier Tribunal Sets Fair Rent at £132 per Week

OUTCOME: Dismissed

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Case Reference

: BIR/47UE/F77/2025/0028

Property : 7 [ADDRESS], [POSTCODE]

Tenant

: Mr [APPELLANT]. [APPELLANT]

Landlord : [APPELLANT].B. [APPELLANT] [NAME]

Landlord’s agent : [NAME], Birmingham

Date of Objection : 5 September 2025

Type of Application : Section 70 Rent Act 1977

Tribunal Members : [NAME].D. [NAME] [NAME].(Est.Man.) FRICS

A. [NAME] [NAME]. MRICS

Date of Decision : 10 March 2026

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DECISION

_____________________________________________________

The sum of £132.00 per week [NAME] be registered as the Fair Rent with effect from 10 March 2026 being the date the Tribunal made the Decision.

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2 REASONS FOR THE DECISION

Background

1 The Rent Officer registered a rent of £126.00 per week on 19 August 2025, effective from the same date. Following an objection from the Landlord 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 considered the case based on the papers provided by the parties and having regard to its own knowledge, expertise and online research.

Description

3 From the submitted papers, the accommodation comprises a traditional two storey semi-detached Victorian house with two living rooms, two bedrooms, a kitchen and bathroom in a quiet residential part of south Worcester about 1.5 miles from the city centre and two miles from Junction 7 of the M5. The property has central heating recently installed by the landlord at a cost of £7,438. The tenant provided the carpets, curtains and white goods. There is no double glazing. The property has a garden with an off-road parking space but no garage.

Evidence

4 The Landlord objected to the Rent Officer's figure as they considered no allowance made for the central heating. In the application for registered rent, Form RR1, the landlord had requested a registered rent of £140.00 per week.

5 The Tenant offered no comments.

Determination and Valuation

6 The Tribunal has considered the evidence provided by the parties. The landlord had requested a fair rent of £140.00 per week, equivalent to £606 per month, but supplied no evidence as to whether they considered there should be an allowance for the condition of the house or scarcity, and provided no comparable evidence to support their figure.

7 In our expert opinion, we find the current market rental value of a house such as this in good condition to be around £1,000 per month (£230.00 per week), fully fitted with a reasonable kitchen, bathroom, double glazing, carpets, curtains and white goods provided by the landlord. However, the property is not in that condition and we deduct the following sums from the calculation:

3

a) No double glazing

£10.00 per week

b) Tenant's carpets and curtains

£20.00 per week

c) Tenant's white goods

£ 5.00 per week

Reduction for lack of facilities

£35.00 per week

8 The Tribunal has made an adjustment for scarcity using its own general knowledge and experience. The Tribunal considers that in the wider geographical area there is an imbalance of supply and demand impacting on rental values and has therefore made a deduction of 10% for scarcity.

9 The Tribunal's valuation is as follows:

Market Rent

£230.00 per week

Less

Reduction for lack of facilities

£ 35.00 per week

£195.00 per week

Less

Scarcity @ 10%

£ 19.50 per week

£175.50 per week

Decision

10 The Fair Rent calculated by the Tribunal is £175.50 per week. However, the maximum fair rent permitted by the Rent Acts (Maximum Fair Rent) Order 1999 is capped at £132.00 per week which limits the rent determined by the Tribunal. The calculation of the capped rent is shown on the decision form.

11 The Tribunal therefore determines the Fair Rent as £132.00 (One Hundred and Thirty Two Pounds) per week with effect from 10 March 2026.

Chairman: [NAME]: 10 March 2026

APPEAL PROVISIONS

If either party is dissatisfied with this decision, they may apply for permission to appeal to the Upper Tribunal (Lands Chamber) on any point of law arising from this Decision. Prior to making such an appeal, an application must be made, in writing, to this Tribunal for permission to appeal. Any such application must be made within 28 days of the issue of this statement of reasons (regulation 52 (2) of The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013) stating the grounds upon which it is intended to rely in the appeal.

4 First-tier Tribunal – Property Chamber File Ref No.

BIR/47UE/F77/2025/0028

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were: 7 Foxwell St., Worcester, [POSTCODE]

[NAME].(Est.Man.) [NAME]. MRICS

Landlord [COMPANY]

Tenant E [APPELLANT]

1. The fair rent is £132.00 Per week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 10 March 2026

3. The amount for services is N/A Per

/not applicable

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

N/A Per

/ 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

N/A

8. For information only:

The fair rent to be registered is the maximum fair as prescribed by the Rent Acts (Maximum Fair Rent) Order 1999. The rent that would have otherwise been registered was £175.50 per week.

[NAME] of decision 10 March 2026

5 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE x 406.4

PREVIOUS RPI FIGURE y 374.2

X 406.4 Minus y 374.2 = (A) 32.2 (A) 32.2 divided by y 374.2 = (B) 0.0860

First application for re-registration since 1 February 1999 - NO

If yes (B) plus 1.075 = (C) N/A

If no (B) plus 1.05 = (C) 1.136

Last registered rent* £116.00 Multiplied by (C) = £131.77 *(exclusive of any variable service charge)

Rounded up to nearest 50 pence = £132.00

Variable service charge - No

If YES add amount for services

MAXIMUM FAIR RENT = £132.00 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 Committee'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.

N/A