First-tier Tribunal Sets Fair Rent for London Property

OUTCOME: Allowed

FR24 First-tier Tribunal – Property Chamber File Ref No. MAM/LON/00BG/F77/2023/0338

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 31 [ADDRESS], [POSTCODE]

Judge I [NAME] MA MRICS

Landlord [NAME]

Tenant Mr [APPELLANT] & Mrs [APPELLANT]

1. The fair rent is £231.00 Per Week (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 not applicable Per

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

not applicable Per

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

None known.

8. For information only:

(a) The fair rent to be registered is the maximum fair rent as prescribed by the Rent Acts (Maximum Fair Rent) Order 1999. The rent that would otherwise have been registered was £298 per week.

Chairman Judge I Mohabir Date of decision 15 January 2024

FR24 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 377.3

PREVIOUS RPI FIGURE Y 285

X 377.3 Minus Y 285 = (A) 92.3

(A) 92.3 Divided by Y 285 = (B) 0.323860

First application for re-registration since 1 February 1999 NO

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.373860

Last registered rent* 168 Multiplied by (C) = 230.80 *(exclusive of any variable service charge)

Rounded up to nearest 50p = 231

Variable service charge YES If YES add amount for services

MAXIMUM FAIR RENT = £231 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/00BG/F77/2023/0338

Property: 31 [ADDRESS] [POSTCODE]

Tenants: `

Mr [RESPONDENT] [NAME] &

Mrs [RESPONDENT]

Landlord: [NAME] of Objection:

31 August 2023

Type of Application: Section 70, Rent Act 1977

Tribunal:

Judge I [NAME] MA MRICS

Date of Summary Reasons:

15 January 2024

_______________________________________________

DECISION

The sum of £ 231 week will be registered as the fair rent with effect from 15 January 2024 being the date the Tribunal made the Decision. ____________________________________

© CROWN COPYRIGHT 2023

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2 SUMMARY REASONS

Background 1. Following an objection from the Tenant 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 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. Neither the Tenant nor Landlord made written submissions, though the Tenants did state in the letter of objection that because of a roof leak water damage has left two upper rooms “ almost unusable”. This was not refuted by the Landlord. They also stated that because of inflation and the cost of living pressures, the increase was unwelcome.

Determination and Valuation 4. Having consideration of our own expert, general knowledge of rental values Stepney area of London,, we consider that the rent for the Property in its current condition (based on the information contained in the Landlord’s original application for registration of fair rent and the information contained in the Rent Register and also the tenants’ statement of objection ) and having viewed the property in [ADDRESS] would be £231 per week , which takes into account a reduction for scarcity. This is after the cap has been applied under the provisions of the Rent Acts (Maximum Fair Rents ) Order 1999.

Chair: Judge I 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