First-tier Tribunal Sets Fair Rent for Crondall Property

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. HAV/24UG/F77/2026/0005

Notice of the Tribunal [NAME] 1977 Schedule 11

Address of Premises The Tribunal members were: 19 St. [ADDRESS] [POSTCODE]

[NAME] [NAME] [NAME] [RESPONDENT]

Landlord [NAME] [APPELLANT] [NAME] and [NAME] [APPELLANT]

Tenant [NAME] [APPELLANT]

1. The fair [NAME] is £1,520.00 Per Calendar Month (To exclude Water Rates and Council Tax but to include any amounts in paragraphs 3 & 4).

2. The effective date is 2 April 2026

3. The amount for services is n/a Per n/a

not applicable

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

n/a Per n/a

not applicable

5. The [NAME] is not to be registered as variable.

6. The capping provisions of the [NAME] ([NAME]) Order 1999 do not apply (please see calculation overleaf).

7. Details (other than [NAME]) where different from [NAME] entry

PREMISES Outside: Unallocated off-street parking for 2/3 cars, gardens (front and rear), two brick-built stores and a shed.

8. For information only:

The fair [NAME] to be registered is not limited by the [NAME] ([NAME]) Order 1999, because it is below the maximum fair [NAME] of £1,640.00 per Calendar Month (with no sum attributable to services (variable)) prescribed by the Order.

[NAME] [NAME] [NAME] of decision 2 April 2026

FR27 [NAME] FIGURE X 408.2

PREVIOUS RPI FIGURE Y 271.8

X 408.2 Minus Y 271.8 = (A) 136.4

(A) 136.4 Divided by Y 271.8 = (B) 0.50184

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

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.55184

Last registered [NAME]* £1,056.50 Multiplied by (C) = £1,639.52 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £1,640.00

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

[NAME] = £1,640.00 Per Month

Explanatory Note

1. The calculation of the maximum fair [NAME], in accordance with the formula contained in the Order, is set out above.

2. In summary, the formula provides for the maximum fair [NAME] to be calculated by:

(a) increasing the previous registered [NAME] 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 [NAME] determination was made.

4. The process differs where the tenancy agreement contains a variable service charge and the [NAME] is to be registered as variable under section 71(4) of the [NAME] 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 [NAME].

1

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case reference : HAV/24UG/F77/2026/0005

Property : 19 St. [ADDRESS], [POSTCODE]

Applicant landlords : [NAME] [COUNSEL] and [NAME] [COUNSEL] : [NAME] [COUNSEL] [NAME]

Respondent tenant : [NAME] [COUNSEL] : [NAME] [COUNSEL] of application : Determination of a [NAME] 70, [NAME] 1977

Tribunal members : [NAME] [NAME] [NAME] [NAME] [NAME] of consideration : 2 April 2026

Date of decision : 2 April 2026

DECISION

© CROWN COPYRIGHT 2026

HAV/24UG/F77/2026/0005 2

Decision of the Tribunal On 2 A p r i l 2 0 2 6 the Tribunal determined a [NAME] of £1,520.00p (One Thousand, Five Hundred and Twenty Pounds) per Calendar Month to take effect from 2 April 2026. Background 1. On 7 November 2025 [NAME] [NAME] [NAME] submitted the landlords’ application for re-registration of [NAME] (‘RR1’) to the [NAME] to register a fair [NAME] of £1,850.00p per Calendar Month for 19 St. [ADDRESS], [POSTCODE] (‘the property’).

2. At paragraph 8 of the RR1 it is confirmed there are no services provided under the tenancy. Similarly, in paragraph 10 it is confirmed there is no furniture provided.

3. This was an application to re-register the fair [NAME] from its previous registration of [NAME] for the property by the [NAME] of £1,056.50p per Calendar Month, effective from 26 February 2018.

4. At paragraph 11 of the RR1, the [NAME] now is stated as ‘[NAME] paid as set in your 2018 determination’ which the Tribunal notes is £1,056.50p per Calendar Month.

5. A new [NAME] of £1,251.00 per Calendar Month was registered by the [NAME], effective from 29 December 2025. The sums for (d) Amount for fuel charges (excluding heating and lighting of common parts) not counting for [NAME] allowance and for (e) Noted amount attributable to services, are both blank.

6. In a letter dated 23 January 2026 to The Valuation Office Agency (‘the VOA’) (sent to NSO Helpdesk (VOA)), sent by post and by email, [NAME] [NAME] submitted the landlords’ objection to the new [NAME] registered and the matter was referred to the First-Tier Tribunal Property Chamber (Residential Property), formerly a [NAME].

7. The Tribunal issued Directions dated 13 February 2026. The Tribunal considers it neither necessary nor proportionate in cases of this nature to undertake an inspection, nor to hold a Tribunal hearing unless either are specifically requested by either party or a particular point arises which merits such an inspection and/or hearing.

8. The Tribunal in its Directions informed the parties that, unless either party objected, the Tribunal intended to determine the [NAME] on the papers (written representations), paragraph 5.

9. Similarly, the parties were informed the Tribunal will not inspect the property but will seek to view it on the internet; and goes on to say if it considers it necessary, it may carry out an external inspection, paragraph 6.

10. The parties were directed to complete and return their [NAME] (‘Statement’) to form their statement of case, within specific time limits, paragraphs 8 – 12 inclusive. The Statement provides for photographs to be attached, to assist the Tribunal to understand the case

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and to help the party to present the issues. 11. [NAME] [NAME] has given a Statement on behalf of the landlords and [NAME] [APPELLANT] has given a Statement on behalf of the tenant. Both Statements have been given in accordance with the Tribunal’s Directions, albeit the Tribunal notes [NAME] [NAME] predates that of [NAME] [NAME]. The Property 12. 19 St. [ADDRESS] is described in the [NAME] as a semi-detached house, circa 1945-1964 with full central heating and accommodation comprising: ground floor – one room, one kitchen/diner and one WC, first floor – three rooms and one bathroom/WC, and outside – garage, stores and garden.

13. In her [NAME] [NAME] has confirmed that garaging is no longer provided. The photograph in the bundle of the parking area shows it is ‘shared’ with No.

18. The Tribunal understands the ‘outside’ now to comprise – unallocated off-street parking for 2/3 cars, gardens (front and rear), two brick-built stores and a shed.

14. From its view of the property on the internet, 19 St. [ADDRESS] is of brick construction with a pitched tiled roof. [NAME] [NAME] has provided the Tribunal with external photographs of the property.

15. Crondall is to the northwest of Farnham, to the south of the A287. St. [ADDRESS] is off [ADDRESS] and runs into [ADDRESS]. The Tenancy Agreement 16. [NAME] [NAME] says a tenancy agreement is not included as there has never been one in writing. From the [NAME] the Tribunal understands the tenancy commenced in 2004.

17. The tenant is responsible for the payment of Council Tax and Water Rates. Section 11 of the Landlord and Tenant Act 1985 (‘the 1985 Act’) applies. The tenant is responsible for internal decorations. The landlord is responsible for repairs and external decorations. Neither furniture nor any services are provided under the tenancy. [NAME]

18. The Tribunal has considered the case de novo (from anew) and has limited its considerations to reach its decision to those points in the papers relevant to the determination of the fair [NAME].

19. In addition to the RR1 with its covering letter dated 7 November 2025, [NAME] [NAME] has submitted her Statement dated 27 February 2026 and a letter to the VOA dated 23 January 2026, both with further submissions, which include comparable lettings’ evidence given on behalf of the landlords. 20. [NAME] [NAME] says the information in the [NAME] is not accurate and says, ‘…garaging is no longer provided…There is now a large parking area for 2/3 cars immediately adjoining the house/garden. New shed in garden replaces the garage storage.’

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[NAME] [NAME]

21. Under ‘Features’, [NAME] [NAME] says the landlords have provided central heating and maintains the same (but adds the tenant provided two radiators 25 plus years ago), double glazing, off-street parking and private gardens. Under ‘other’, [NAME] [NAME] goes on to say ‘See attached details and description above. Two brick-built stores attached to house and a garden shed.’ The description includes ‘…gardens to front and rear...’ 22. In her letter to the VOA dated 23 January 2026, [NAME] [NAME] sets out her argument to request the Tribunal to determine the fair [NAME] at £1,594 per calendar month based on the capping legislation. The letter comprises paragraphs with headings: introduction, the property – which includes a description of the house, the village of Crondall and its amenities, market [NAME] – a schedule of comparable three-bedroom properties in the area and confirmation, pursuant to discussions with local lettings’ agents, the market [NAME] to be in the region of £1,850 pcm to £1,900 pcm, tenant’s improvements – the tenant installed two or three radiators 25 years plus ago, for which [NAME] [NAME] goes on to say she has not made an adjustment for, scarcity – there is no imbalance between supply and demand in the area for three-bedroom properties, maximum fair [NAME] – computation to £1,594 pcm based on the RPIs for February 2018 and November 2025, Council Tax and Service Charges – the Tribunal is not required to consider these, and conclusion – the market [NAME] is in the range of £1,850 pcm to £1,900 pcm, accordingly the capping legislation applies (in her subsequent letter sent to the Tribunal dated 27 February 2026 [NAME] [NAME] assessment of the market [NAME] is in the range of £1,900 pcm to £1,950 pcm), the maximum fair [NAME] is to be registered at £1,594 pcm as per the computation provided.

23. Under ‘Improvements’, [NAME] [APPELLANT] says the tenant keeps the property in good order and carried out some improvements to the property many years ago. [NAME] [NAME] adds central heating and double glazing were installed by the landlords 15 years plus ago and the boiler was replaced by the landlords in January 2024. At this juncture the Tribunal notes whereas the installation of central heating and double glazing are improvements within the meaning of the legislation, the replacement of a boiler are works of day-to-day maintenance which are the responsibility of the landlords in any event.

24. Under ‘Disrepair/Defects’ [NAME] [NAME] says the kitchen and bathroom equipment fittings are old, but functional. [NAME] [APPELLANT] concludes to say, ‘Tenant maintains décor and provide white goods as per S11 Landlord and Tenant Act 1985 [sic].’ 25. Under ‘Any Other Comments’, [NAME] [APPELLANT] says, ‘The property is located on the edge of this desirable village with extensive views over the surrounding countryside. The village has a shop, two churches, a school, doctors’ surgery, café and a lively community.’ 26. Under ‘Your assessment of the rental value of the property’, [NAME] [NAME] has attached a schedule of comparable market evidence with associated

HAV/24UG/F77/2026/0005 5

lettings details to assist the Tribunal. The headings in the columns of the schedule are: property name, description, rooms (including in some cases an area (basis of measurement not specified)), outdoor facilities, furnished, responsibility for repairs and redecorations, [NAME] – per calendar month, marketed (understood by the Tribunal to be the month in which the property was let) and comment(s).

27. There are eight (8) properties in the schedule with rental values ranging from £1,795 pcm to £2,475 pcm. The dates range from May 2023 to February 2026. [NAME] [NAME] has highlighted property 4 as the ‘best comparable.’ Property 4 is described as a three-bedroom, end of terrace house in St. [ADDRESS], with front and rear gardens, off-street parking, unfurnished, section 11 of the 1985 Act applies and let in January 2025 for £1,900 pcm. Under ‘comment’, [NAME] [NAME] says the property is similar to the subject but is situated in a less attractive location. In the copy lettings’ particulars provided, the property is described as, ‘In the delightful and highly sought after village of Crondall a three-bedroom end of terrace property with living room and open plan kitchen/dining room. Situated in a private enclosed corner plot with garden, garage and parking for several vehicles.’ 28. [NAME] [NAME] comments on the outline, comparable evidence in the [NAME]’s bundle. [NAME] [NAME] does not consider that properties in urban areas circa eight to nine miles distant from the subject property to be comparable to this village location. 29. [NAME] [NAME] confirms the maximum fair [NAME] order should be applied as no extensive improvement works have been carried out to the property since the [NAME]’s last determination.

30. Under ‘Whether the demand for such properties exceeds supply’, [NAME] [NAME] says at the time of writing rightmove.co.uk shows there are 26 (twenty-six), three-bedroom properties available within three miles of the subject property and therefore we do not consider there is any scarcity of supply in the market for three-bedroom houses in this area. [NAME] [NAME] 31. [NAME] [NAME] has submitted a Statement to the Tribunal, with a covering letter, both of which are dated 16 February 2026. [NAME] [NAME] confirms she does not require a meeting with regards to this matter but wishes to express some concerns regarding the documentation presented. [NAME] [NAME] says she has not provided a copy of her Statement to the landlords. 32. [NAME] [APPELLANT] says the Applicant’s submission that four off-street parking spaces are available for use at the property, suggests these are for the exclusive use of the tenant. That is not the case. The four parking spaces are for shared use with the tenant at the neighbouring property, also in the ownership of the Applicant. 33. [NAME] [APPELLANT] goes on to say the comparable evidence provided by [NAME] [NAME] does not seem to be reflective of the nature of the subject property. In essence, the subject property is outdated in comparison with the comparable lettings’ properties and [NAME] [NAME] concludes to reference the

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internal improvements made at the cost of the tenant. 34. [NAME] [APPELLANT] has provided the Tribunal with a sketch plan to show the layout of the property. The sketch plan shows the accommodation to comprise, ground floor – entrance hall/lobby, living room, kitchen/diner and WC. first floor – three bedrooms and one bathroom/WC. Outside there are two sheds.

35. Under ‘Features’, [NAME] [APPELLANT] says both the landlords and the tenant have provided the central heating, and the landlords have provided double glazing. The tenant has provided carpets (floor coverings), curtains and the white goods. There are private gardens and the off-street parking is not exclusive but shared with the next-door neighbours.

36. Under ‘Improvements’, [NAME] [NAME] says a new boiler was fitted in January 2025 (the Tribunal has commented on this at paragraph 23 above). No other improvements have been carried out to the property since the last registration of fair [NAME].

37. There are no services provided. Under ‘Disrepairs/Defects, [NAME] [NAME] says there is a crack in the wall in bedroom one, first reported in 2013 and remains outstanding. The house fittings are all outdated, forty plus years old and all were provided by the tenant (the Tribunal understands the house fittings to include the kitchen, bathroom/WC and WC equipment). The house was unfurnished. 38. [NAME] [NAME] is silent on, any other comments, her assessment of the rental value of the property, whether the maximum fair [NAME] order should not apply and whether demand for such properties exceeds supply. The Law When determining a fair [NAME], the Tribunal, in accordance with the [NAME] 1977 (‘the Act’), section 70, had regard to all the circumstances including the age, location and state of repair of the property. It also disregarded the effect of (a) any relevant tenant's improvements and (b) the effect of any disrepair or any other defect attributable to the tenant or any predecessor in title under the regulated tenancy, on the rental value of the property. [COMPANY] v [NAME] of the Greater Manchester & [NAME] (1995) 28 HLR 107 and [NAME] v [NAME] [1999] QB 92 the Court of Appeal emphasised: (a) that ordinarily a fair [NAME] is the market [NAME] for the property discounted for 'scarcity' (i.e. that element, if any, of the market [NAME], that is attributable to there being a significant shortage of similar properties in the wider locality available for letting on similar terms - other than as to [NAME] - to that of the regulated tenancy) and (b) that for the purposes of determining the market [NAME], assured tenancy (market) rents are usually appropriate comparable lettings. (These rents may have to be adjusted where necessary to reflect any relevant differences between those comparable lettings and the

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subject property).

39. Section 72A - Amounts attributable to services: In order to assist authorities to give effect to the housing benefit scheme under Part VII of the Social Security Contributions and Benefits Act 1992 or to assist the Secretary of State in the administration of universal credit, where a [NAME] is registered, there shall be noted on the register the amount (if any) of the registered [NAME] which, in the opinion of the [NAME] officer or appropriate tribunal, is fairly attributable to the provision of services, except any amount which is negligible in the opinion of the officer or, as the case may be, the tribunal.

40. The Tribunal is also to have regard to the [NAME] ([NAME]) Order 1999 (‘the Order’), where applicable. Most objections and determinations of registered rents are now subject to the Order, which limits the amount of [NAME] that can be charged by linking increases to the Retail Price Index (‘RPI’). It is the duty of the Property Tribunal to arrive at a fair [NAME] under section 70 of the Act, but in addition to calculate the maximum fair [NAME] which can be registered according to the rules of the Order.

41. If that maximum [NAME] is below the fair [NAME] calculated as above, then that (maximum) sum must be registered as the fair [NAME] for the subject property.

42. Section 2(7) of the Order is as follows, ‘This article does not apply in respect of a dwelling-house if because of a change in the condition of the dwelling-house or the common parts as a result of repairs or improvements (including the replacement of any fixture or fitting) carried out by the landlord or a superior landlord, the [NAME] that is determined in response to an application for registration of a new [NAME] under Part IV exceeds by at least 15% the previous [NAME] registered or confirmed.’ [NAME] [NAME] has confirmed no extensive improvement works have been carried out to the property since the last registration of fair [NAME]. The Tribunal expands briefly on this later.

43. The tenancy is a statutory (protected) periodic tenancy and as such (not being for a fixed tenancy of 7 years or more) is subject to section 11 of the Landlord and Tenant Act 1985, which sets out the landlords’ statutory repairing obligations; the tenant is responsible for internal decorations. Considerations and Valuation 44. Having reviewed the papers, the Tribunal first considered whether it felt able to decide this case reasonably and fairly based on the papers submitted only, with neither an inspection, nor an oral hearing. Having read and considered the papers the Tribunal decided it could do so.

45. In the first instance the Tribunal determined the market [NAME] per calendar month which the landlords could reasonably expect to receive on the valuation date, 2 April 2026, on the assumptions the property was in good condition, with carpets (flooring coverings), curtains and white goods provided by the landlords.

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46. The Tribunal has been provided with a screenshot of the [NAME]’s comparable lettings of twelve (12) semi-detached, four-room houses in the GU10, Blackwater Valley, postcode. The market rents range from £1,000 per Month to £2,500 per Month. The date range is from June 2025 to November 2025. 47. [NAME] [NAME] has provided the Tribunal with her comparable lettings’ evidence, which is outlined in paragraphs 22, 26 and 27 above; on which [NAME] [NAME] has given her submissions. [NAME] [NAME] has assessed the market [NAME] to be in the range of £1,900 per calendar month to £1,950 per calendar month.

48. Taking the above into consideration and of its own general knowledge of market rents in the area, at the valuation date, the Tribunal determined the market [NAME] of the property to be £1,800 per calendar month, before any adjustment(s) which it deemed appropriate to be applied.

49. From the submissions given by [NAME] [NAME] on behalf of the landlords and [NAME] [APPELLANT] on behalf of the tenant, and the information provided by the [NAME] in its ‘Determination’ screen shot, the Tribunal has determined adjustments are required to be applied to the market [NAME] to reflect: (1) the tenant’s partial provision of central heating, (2) no carpets (floor coverings) and curtains, (3) the tenant’s provision of the White Goods, (3) the tenant’s internal decorations’ obligation, (4) the tenant’s provision of what is now an unmodernised kitchen, and (5) the tenant’s provision of what are now an unmodernised bathroom/WC and WC.

50. The Tribunal concluded that a deduction in aggregate of £280 per calendar month is to be applied to the market [NAME], made up of as follows:

Tenant’s partial provision of Central Heating £10 No Carpets (floor coverings) and Curtains £50 Tenant’s provision of the White Goods £45 Tenant’s internal decorations’ obligation £25 Tenant’s unmodernised kitchen £75 Tenant’s unmodernised bathroom/WC and WC £75 £ Per Calendar Month £280 51. £1,800 per calendar month minus £280 per calendar month to equal £1,520 per calendar month.

52. Turning to the question of scarcity, that is whether demand for such properties exceeds the corresponding supply, [NAME] [NAME] has addressed the valuation question and has supported her opinion there is no imbalance between supply and demand in the area with evidence of the quantum of three-bedroom properties available to let within three miles of the subject property.

53. Whereas the [NAME] has made a deduction for scarcity from its adjusted market [NAME] of £139.00p per Calendar Month (10%), with its general knowledge of the lettings market in the area, coupled with [NAME]/24UG/F77/2026/0005 9

[NAME] evidence on the subject, the Tribunal has concluded there is no adjustment required for scarcity in this registration of fair [NAME].

Accordingly, the uncapped fair [NAME] is £1,520 per Calendar Month.

54. The Tribunal is required to calculate the maximum fair [NAME] prescribed by the Order in which the sum attributable to services in this application is ‘nil’. The Tribunal has calculated the maximum fair [NAME] prescribed by the Order to equal £1,640.00p (One Thousand, Six Hundred and Forty Pounds) per Calendar Month, when rounded up to the nearest 50 (Fifty) pence. Decision 55.

Accordingly, the Tribunal determined the [NAME] of the property to be re-registered at £1,520.00p (One Thousand, Five Hundred and Twenty Pounds) per Calendar Month, to take effect from 2 April 2026.

56. The capping provisions of the [NAME] ([NAME]) Order 1999 do not apply because the [NAME] determined at paragraph 51 above is below that prescribed by the Order.

RIGHTS OF APPEAL

1. A person wishing to appeal this decision to the Upper Tribunal (Lands Chamber) must seek permission to do so by making a written application by email to [EMAIL] to the First-tier Tribunal at the Regional office which has been dealing with the case.

2. The application must arrive at the Tribunal within 28 days after the Tribunal sends to the person making the application written reasons for the decision.

3. If the person wishing to appeal does not comply with the 28 days’ time limit, the person shall include with the application for permission to appeal a request for an extension of time and the reason for not complying with the 28 days’ time limit; the Tribunal will then decide whether to extend time or not to allow the application for permission to appeal to proceed.

4. The application for permission to appeal must identify the decision of the Tribunal to which it relates, state the grounds of appeal and state the result the party making the application is seeking.