First-tier Tribunal Sets Fair Rent for Flat in Eaton Manor, Hove

OUTCOME: Other

FR27 First-tier Tribunal – Property Chamber File Ref No. HAV/00ML/F77/2025/0641

Notice of the Tribunal [NAME] 1977 Schedule 11

Address of Premises The Tribunal members were: Flat 112, [NAME], [ADDRESS], [POSTCODE]

[NAME] [NAME] Mr [APPELLANT]

Landlord [APPELLANT]

Tenant Mrs [APPELLANT]

1. The fair [NAME] is £18,600.00 Per Annum (To exclude Water Rates and Council Tax but to include any amounts in paragraphs 3 & 4)

2. The effective date is 12 January 2026

3. The amount for services is £2,255.77 Per Annum

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

£346.62 Per Annum

5. The [NAME] is to be registered as variable.

6. The capping provisions of the [NAME] ([NAME]) Order 1999 apply (please see calculation overleaf).

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

8. For information only:

(a) The fair [NAME] to be registered is not limited by the [NAME] ([NAME]) Order 1999, because it is below the maximum fair [NAME] of £20,046 per Annum including £2,255.77 per Annum for services (variable) prescribed by the Order.

[NAME] [NAME] [NAME] of decision 12 January 2026

FR27 [NAME] FIGURE X 405.6

PREVIOUS RPI FIGURE Y 377.3

X 405.6 Minus Y 377.3 = (A) 28.3

(A) 28.3 Divided by Y 377.3 = (B) 0.07501

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) 1.12501

Last registered [NAME]* £15,813 Multiplied by (C) = £17,789.73 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £17,790

Variable service charge YES If YES add amount for services £2,255.77

[NAME] = £20,046 Per Annum

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].

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FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case reference : HAV/00ML/F77/2025/0641

Property : Flat 112, [NAME], [ADDRESS], [POSTCODE]

Applicant landlord : [APPELLANT] : Ms [RESPONDENT] & Ms [APPELLANT], both of [APPELLANT]

Respondent tenant : Mrs [COUNSEL] : None

Type of application : Determination of a [NAME] 70, [NAME] 1977

Tribunal members : Mr [NAME] [NAME] Mr [NAME] of consideration : 12 January 2026

Date of decision : 12 January 2026

DECISION

© CROWN COPYRIGHT 2026

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Decision of the Tribunal On 1 2 J a n u a r y 2 0 2 6 the Tribunal determined a [NAME] of £18,600 (Eighteen Thousand Six Hundred Pounds) Per Annum to take effect from 12 January 2026. Background 1. On 10 September 2025 the landlord’s Agent (Ms [RESPONDENT] of [NAME]) submitted an application for registration of [NAME] (‘RR1’) to the [NAME] to register a fair [NAME] of £18,975.60 per Annum plus variable service charge for Flat 112, [NAME], [ADDRESS], [POSTCODE] (‘the property’).

2. Paragraph 7 of the RR1, ‘Include any amount for services and/or furniture provided by the landlord…’ is blank. However, at paragraph 9 £2,340.00 per Annum of the proposed [NAME] is stated as due to these services, which is in conflict with what has been proposed hitherto.

3. This was an application to re-register the fair [NAME] from its previous registration of [NAME] for the property by the First-tier Tribunal of £18,153 per Year, effective from 29 November 2023. In its November 2023 decision, the amount for fuel charges is £434.44 per Year, and the noted amount attributable to services is £2,340 per Year (variable). Under Remarks, the fair [NAME] to be registered is the maximum fair [NAME] as prescribed by the [NAME] ([NAME]) Order 1999. The uncapped [NAME] was £19,920 per Year.

4. At paragraph 12 of the RR1, the [NAME] now is stated as £15,813.00 per Annum plus variable service charge. £15,813.00 per annum plus £2,340.00 per annum to equal £18,153 per annum.

5. A new [NAME] of £17,800.00 per Year was registered by the [NAME], effective from 29 November 2025. The amount for (d) Amount for fuel charges (excluding heating and lighting of common parts) not counting for [NAME] allowance is £346.62 per Year.

6. The amount for (e) Noted amount attributable to services is £2,255.77 per Year.

7. In an email dated 20 November 2025 to The Valuation Office Agency (‘[NAME]’) (sent to [NAME] ([NAME])) Ms [RESPONDENT] submitted the landlord’s objection to the new [NAME] registered and the matter was referred to the First-Tier Tribunal Property Chamber (Residential Property), formerly a [NAME].

8. The Tribunal issued Directions dated 5 December 2025. The Tribunal does not consider it necessary and proportionate in cases of this nature neither 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.

9. 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.

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10. 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.

11. 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 and to help the party to present the issues.

12. Ms [RESPONDENT] has submitted a Statement on behalf of the landlord and Mrs [RESPONDENT] has submitted a Statement on her own behalf. Both parties’ Statements were given in accordance with the Tribunal’s Directions. The Property 13. [NAME] (‘the building’) is 1960’s purpose-built block of flats over lower ground, ground and six upper floors. [ADDRESS] lies parallel to [ADDRESS], which in turn runs in a south to northerly direction in between [ADDRESS] and the A270, [ADDRESS].

14. The building is on the east side of [ADDRESS], just to the south of its junction with [ADDRESS]. The nearest railway station is Hove.

15. The property is described in the RR1 as self-contained purpose-built flat on the ground floor with accommodation comprising: four rooms, one kitchen, one bathroom/WC and one shower room. The Tenancy Agreement 16. The Tribunal has not been provided with a copy of the tenancy agreement, although from the RR1 completed by Ms [NAME] it is understood to have commenced on 23 April 1997.

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. No furniture is 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 submitted by Ms [NAME], Ms [NAME] submitted her Statement on 18 December 2025. Ms [NAME] confirms the information in the [NAME] register is accurate, other than the [NAME].

20. Ms [NAME] description of the property aligns with that of the [NAME]: ground floor, four rooms, one kitchen, one bathroom/WC and one shower room.

21. Under ‘Features’, Ms [NAME] says Central Heating, Double Glazing,

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Carpets & Curtains have all been provided by the landlord. There is off- street parking and communal gardens too.

22. Under ‘Improvements’, the Tribunal notes the landlord installed double glazing 12 to 15 years ago.

23. Under ‘Service Charges’, Ms [NAME] says ‘’See attached schedule previously provided upon application. (Page 6 below).’ The papers include the Lease Expenditure Accounts for the years 2022 and 2023 at [NAME]. The independent Accountants’ report has been carried out by [NAME] [COMPANY].

24. Under ‘Disrepair/Defects’ Ms [NAME] says neither repairs nor defeats [sic] reported or noted. ‘Original features within the bathroom and kitchen.’ Under ‘Any Other Comments’ Ms [NAME] says ‘’Hove station a short walk from [NAME]. Local bus routes available to locations along the Sussex coast. Within close distance to local shops and supermarkets.’’ 25. Under ‘Your assessment of the rental value of the property’ Ms [NAME] says [NAME] is a large block of flats of about 146 units built in the mid 1960’s in a residential district of Hove fronting onto three different roads. All local facilities are within easy reach.

26. Ms [NAME] then goes on to outline ‘The self-contained flat is on the forth floor [sic]…’ And confirms the right to park in the communal grounds is, in effect, on a first-come, first-served basis.

27. Ms [NAME] then refers to four lettings in [NAME], each on assured shorthold tenancies, with responsibilities as per section 11 of the 1985 Act. In outline as follows:

1. Flat 110 – 81 square metres, three rooms, one kitchen, one bathroom/WC - £23,641 per Annum, £1,970 per Calendar Month.

2. Flat 118 – 86 square metres, four rooms, one kitchen, two bathroom/WC’s - £30,984 per Annum, £2,582 per Calendar Month.

3. Flat 127 – 85 square metres, four rooms, one kitchen, two bathroom/WC’s - £26,796 per Annum, £2,233 per Calendar Month.

4. Flat 137 – 92 square metres, four rooms, one kitchen, two bathroom/WC’s - £27,480 per Annum, £2,290 per Calendar Month.

28. Ms [NAME] has provided a computation for the [NAME] to exclude the services element based on the October 2025 RPI. Ms [NAME] concludes to say there are currently 19 (nineteen) comparable properties available to let within a one-half mile radius of the property, so scarcity of supply is not inflating rental prices in the area.

29. Mrs [NAME] submitted her Statement on 29 December 2025. In addition, Mrs [NAME] wrote to [NAME] on 5 October 2025 pursuant to the RR1 having been submitted.

30. Mrs [NAME] confirms the information in the [NAME] register is accurate, other

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than the [NAME].

31. Mrs [NAME] description of the property aligns with that of Ms [NAME] and describes it as: ground floor, reception room, kitchen, three bedrooms, one bathroom/WC and one shower room.

32. Under ‘Features’, Mrs [NAME] says whereas the Central Heating and Double Glazing have been provided by the landlord, the Carpets and Curtains have been provided by the tenant.

33. Under ‘Improvements’, the form is blank. Under ‘Service Charges’, Mrs [NAME] says the rubbish is removed, the communal areas are cleaned, hot water and central heating are provided.

34. Under ‘Disrepair/Defects’ Mrs [NAME] says the kitchen is original and the bathroom and shower room fixtures and fittings date from the 1960’s.

35. Under ‘Your assessment of the rental value of the property’ Mrs [NAME] says she agrees with the [NAME]’s determination of fair [NAME] at £17,800 per annum due to the factors listed overleaf. The factors listed are, in outline: (1) we have been tenants of this flat for over 50 years, (2) the kitchen, bathroom and shower room are in excess of 50 years old, (3) being on the ground floor, we are subject to noise disturbance from the intercom and garages below, and (4) the annual service charge of £2,600 per annum is higher than the majority of similar properties.

36. Mrs [NAME] concludes to say there are flats available in the block currently.

37. In her letter dated 5 October 2025 to [NAME], Mrs [NAME] says they moved into the flat in March 1974. Nothing has been done to modernise the flat since that time. There are currently eight flats vacant in the block. About six new blocks have been built within a mile from us, many of which will be to let, so there is no scarcity. 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

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(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 subject property).

38. 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.

39. 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.

40. 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.

41. 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 [NAME], 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.’ 42. 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 landlord’s statutory repairing obligations; the tenant is responsible for internal decorations. Considerations and Valuation 43. 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.

44. In the first instance the Tribunal determined the market [NAME] per calendar month the landlord could reasonably expect to receive on the valuation date, 12 January 2026, on the assumptions the property was in good condition, with carpets (flooring coverings), curtains and white

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goods provided by the landlord.

45. Ms [RESPONDENT] has provided comparable lettings evidence in her Statement on which she has relied. Whereas the comparable lettings evidence provided by Ms [NAME] is of assistance to the Tribunal, there are gaps in the information with respect to each letting, typically: the floor each flat is on, its position within the building, its condition at the time of letting, and the month and year of the letting.

46. In addition, the Tribunal has been provided with a screen shot from [NAME] of the [NAME]’s valuation to determine the fair [NAME] at £17,800 per annum, which includes the market [NAME] at £20,400 per annum, equivalent to £1,700 per calendar month.

47. To determine the market [NAME], the Tribunal has considered the evidence given by Ms [NAME], the screen shot from [NAME], and its own general knowledge of market rents in Brighton and Hove.

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 £1,850 per calendar month, before any adjustment(s) which it deemed appropriate to be applied.

49. From the submissions given by Ms [NAME] and Mrs [NAME] in their Statements, Mrs [NAME] letter to [NAME] and the information provided by the [NAME], the Tribunal has determined adjustments are required to be applied to the market [NAME] to reflect: (1) the tenant’s provision of carpets (floor coverings) and curtains, (2) the tenant’s provision of the White Goods, (3) the tenant’s internal decorations’ obligation, (4) the unmodernised kitchen, and (5) the unmodernised bathroom/WC and shower room/WC.

50. The Tribunal concluded that a deduction in aggregate of £300 per calendar month be applied to the market [NAME], made up of as follows:

No Carpets (floor coverings) and Curtains £75 White Goods £30 Internal decorations’ obligation £45 An unmodernised kitchen £100 An unmodernised bathroom/WC and shower/WC £50 £ Per Calendar Month £300 51. £1,850 per calendar month minus £300 per calendar month to equal £1,550 per calendar month (£18,600 per annum).

52. Turning to the question of scarcity, that is whether the demand for such properties exceeds the supply, both parties have given evidence to support the argument that a scarcity of supply is not having an inflationary effect on rental values (prices) in the area.

Accordingly, coupled with its general knowledge of the lettings market in the area, the Tribunal has concluded there is no adjustment required for scarcity in this registration of fair [NAME].

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53. In accordance with section 72A of the Act, the Tribunal is required to calculate: (1) (d) the amount for fuel charges (excluding heating and lighting of common parts) not counting for [NAME] allowance, and (2) (e) the amount attributable to services. These sums are to be recorded in the [NAME] and are required for the [NAME] calculation.

54. At paragraph 23 above the Tribunal confirms it has been provided the Lease Expenditure Account for [NAME] for the year ended 24 December 2023, which includes the corresponding figures for the year ended 24 December 2022.

55. However, whereas the Tribunal understands the service charge applicable to the property is a variable amount, the apportionment for the same has not been provided.

56. In the re-registration of fair [NAME] effective from 29 November 2025, the [NAME] includes (d) the amount for fuel charges to be £346.62 per Year and (e) the amount attributable to services to be £2,255.77 per Year. In the absence of any other sums having been provided by the parties, the Tribunal has adopted these figures for the purposes of its [NAME] computation.

57. Incorporating the amount attributable services at paragraph 56 above and the corresponding sum provided for the previous registration in the RR1, the Tribunal calculated the maximum fair [NAME] prescribed by the order to be £20,046 (Twenty Thousand and Forty-Six Pounds) Per Annum. Decision 58.

Accordingly, the Tribunal determined the [NAME] of the property be re-registered at £18,600 (Eighteen Thousand Six Hundred Pounds) Per Annum, to take effect from 12 January 2026.

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

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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.