First-tier Tribunal Sets Fair Rent at £140 Per Week

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. TR/LON/00AE/F77/2024/0206

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 17 [ADDRESS], [POSTCODE]

Judge [NAME], [APPELLANT] [NAME]

1. The fair rent is £140 Per week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 6 September 2024

3. The amount for services is Not Applicable Per

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 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

Not Applicable

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 £ 214 per week.

Judge Judge Bernadette MacQueen Date of decision 6 September 2024

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 387.5

PREVIOUS RPI FIGURE Y 213.5

X 387.5 Minus Y 213.5 = (A) 174

(A) 174 Divided by Y 213.5 = (B) 0.814988

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

If yes (B) plus 1.075 = (C) Not Applicable

If no (B) plus 1.05 = (C) 1.864988

Last registered rent* £114.50 Multiplied by (C) = £213.54 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £214.00

Variable service charge NO If YES add amount for services Not Applicable

MAXIMUM FAIR RENT = £214.00 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.

1

Case Reference

: LON/00AE/F77/2024/0206

Property : 17 [ADDRESS], [POSTCODE]

Tenant

: [NAME]

Landlord : [APPELLANT] of Objection : 16 April 2024

Type of Application : Section 70, Rent Act 1977

Tribunal

: Judge [NAME], MRICS

Date of Hearing : 6 September 2024

Date of Summary Reasons

: 9 September 2024

_______________________________________________

DECISION

The sum of £140 per week will be registered as the fair rent with effect from 6 September 2024, being the date the Tribunal made the Decision. ____________________________________

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2 © CROWN COPYRIGHT 2024

SUMMARY REASONS

Background

1. On 19 February 2024 the Landlord applied for rent of £134 per week to be registered for the Property. The rent officer determined the rent at £190 per week.

2. Following an objection from the Tenant to the determination of a fair rent by the Rent Officer, the Tribunal made a determination under the provisions of the Rent Act 1977.

Hearing and Inspection

3. At the request of the Tenant, the Tribunal held a short hearing before travelling to the Property to complete an inspection on 6 September 2024.

4. The Landlord wrote to the Tribunal to acknowledge the appeal and informed the Tribunal that they had nothing further to add and would await the Tribunal’s decision.

5. In reaching its decision the Tribunal considered the written submissions provided by the Tenant, which were confirmed in oral submissions to the Tribunal at the hearing, and its inspection of the Property.

Determination and Valuation

6. The Property was a loft conversion comprised of 1 bedroom, 1 living room, a kitchen and a bathroom. Central heating and double glazing were provided by the Landlord.

7. Having consideration of the Tribunal’s own expert general knowledge of rental values in the area, the Tribunal considered that the open market rent for the Property in its current condition would be in the region of £250 per week.

8. This hypothetical rent was adjusted to allow for the differences between the terms and conditions considered usual for such a letting in today’s market and the condition of the actual property at the date of the determination under the Rent Act 1977. Any rental benefit derived from Tenant’s improvements was disregarded.

9. The following deductions were made:

3 Kitchen and White goods

10%

Carpets and Curtains

5%

No landlord internal decoration

5%

No landlord internal repairs

5%

Toilet and WC

5%

Total

30%

10. A further deduction for scarcity of 20% was then made to reach an uncapped Fair Rent for the purposes of section 70 of the Rent Act 1977. A final uncapped rent of £140 per week was determined.

Decision

11. The capped rent for the Property according to the provisions of the Rent Acts (Maximum Fair Rent) Order 1999 is calculated at £214.00 per week. The calculation of the capped rent is shown on the decision form.

12. In this case, the lower rent of £140 per week is to be registered as the fair rent for this Property.

Judge Bernadette MacQueen

Date: 9 September 2024

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