First-tier Tribunal Sets Fair Rent Below Maximum Allowed

OUTCOME: Allowed

FR24 First-tier Tribunal – Property Chamber File Ref No. TR/LON/00AF/F77/2023/0325

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 30 [ADDRESS], [POSTCODE]

Judge I [NAME] MA [COMPANY]

Tenant Mr [APPELLANT]

1. The fair rent is 960.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 15 January 2024

3. The amount for services is

Per

not applicable

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

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:

(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 £1105 per calendar month.

Chairman Tribunal Judge Mohabir Date of decision 15 January 2024

FR24 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 377.3

PREVIOUS RPI FIGURE Y 307.4

X 377.3 Minus Y 307.4 = (A) 69.9

(A) 69.9 Divided by Y 307.4 = (B) 0.227391

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) 1.22739

Last registered rent* 865 Multiplied by (C) = 1104.94 *(exclusive of any variable service charge)

Rounded up to nearest 50p = 1105

Variable service charge NO If YES add amount for services

MAXIMUM FAIR RENT = £1105 Per Cal month

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/00AF/F77//2023/0325

Property: 30 [ADDRESS], [POSTCODE]

Tenant:

Mr [APPELLANT]

Landlord: [NAME] ( London ) [RESPONDENT] of Application: 7 August 2023

Type of Application: Assessment of Fair Rent

Tribunal:

Judge I [NAME] MA MRICS

Date of Summary Reasons:

15 January 2024

_______________________________________________

DECISION

The sum of £960 per calendar month will be the rent with effect from 15 January 2024 , being the date of the Tribunal’s decision ____________________________________

© CROWN COPYRIGHT 2023

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2 SUMMARY REASONS

Background 1. Following an objection from the Tenant dated 19 Sept 2023 to the Rent Officer’s valuation of the fair rent of the above property at £1020 with effect from 27 September 2023, the Tribunal has made a determination. The landlord had served a notice proposing a new rent of £950 per calendar month in place of the existing rent of £865 per calendar month. The tenancy commenced on 1st August 1983. A tenancy agreement was not included in the papers.

Inspection 2. The Tribunal did not inspect the Property, having not been requested to do so, but considered this case on the basis of the papers provided by the parties.

Evidence 3. The tenant provided evidence of room sizes and stated that he would have paid the rent as requested by the landlord but the Rent Officer assessment was too high .

Determination and Valuation 4. Having consideration of our own expert, general knowledge of rental values in the Bromley BR2 area and particularly taking into account rents of houses with three bedrooms and bearing in mind the property has a shower not a bathroom, the tribunal considered that the fair rent for the Property in its current condition based on the information provided and having regard to the Maximum Fair Rent Formula, to us would be £960 per calendar month.

Chair: Tribunal Judge Mohabir

Date: 15 January 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