First-tier Tribunal Sets Fair Rent for London Property

OUTCOME: Allowed

FR24 First-tier Tribunal – Property Chamber File Ref No. LON/00AG/F77/2023/0254

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

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

[NAME] [NAME] Mr [RESPONDENT]

Landlord [APPELLANT]

Tenant Mr [APPELLANT]

1. The fair rent is 11760.00 Per Year (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 09 November 2023

3. The amount for services is 1714.39 Per year

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/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

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 below the maximum fair rent of £14213.50 per year including £1714.39 per year for services prescribed by the Order.

[NAME] of decision 9 November 2023

FR24 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 378.4

PREVIOUS RPI FIGURE Y 295.4

X 378.4 Minus Y 295.4 = (A) 83

(A) 83 Divided by Y 295.4 = (B) 0.280975

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

If yes (B) plus 1.075 = (C) 1.3309749

If no (B) plus 1.05 = (C)

Last registered rent* 10679 Multiplied by (C) = 14213.48 *(exclusive of any variable service charge)

Rounded up to nearest 50p = 14213.50

Variable service charge NO If YES add amount for services

MAXIMUM FAIR RENT = £14213.50 Per year

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.

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Case Reference

: TR/LON/00AG/F77/2023/0254

Property : [ADDRESS], [POSTCODE]

Tenant

: Mr [APPELLANT]

Landlord : [APPELLANT] of Objection : 19 December 2022

Type of Application : Section 70, Rent Act 1977

Tribunal

: Mr [NAME] [NAME] of Summary Reasons

: 9 November 2023

_______________________________________________

DECISION

The sum of £11760.00 per year inclusive of £1714.39 for services will be registered as the fair rent with effect from 9 November 2023, being the date the Tribunal made the Decision. ____________________________________

© CROWN COPYRIGHT 2023

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

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SUMMARY REASONS

Background

1. Following an objection from the Landlord 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 has carried out an inspection of the property on 9 November 2023.

Evidence

3. The Tribunal has consideration of the written submissions provided by the Tenant. There were no written submissions from the Landlord.

Determination and Valuation

4. The Tribunal has to find two figures, the market rent adjusted for scarcity and the capped rent with the lower figure being registered.

5. Having consideration of our own expert, general knowledge of rental values in the area, we consider that the open market rent for the property in the condition and with the amenities the market would expect/ it’s current condition would be in the region of £21000.00 per year inclusive of services. From this level of rent we have made adjustments in relation to:

a. The tenants improvements including the kitchen, wardrobes and double glazing b. No carpets curtains or white goods

The Tribunal has also made an adjustment for scarcity.

6. The full valuation is shown below:

Fair rent PA Market rent 21,000.00 £ less condition & terms 30% 6,300.00 -£ adjusted rent 14,700.00 £ less scarcity off adj rent 20% 2,940.00 -£ Fair rent 11,760.00 £

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Decision

7. The uncapped fair rent initially determined by the Tribunal, for the purposes of section 70, was £11760.00 per year inclusive of £1714.39 for services. The capped rent for the property according to the provisions of the Rent Acts (Maximum Fair Rent) Order 1999 is calculated at £14213.50 per year. The calculation of the capped rent is shown on the decision form. In this case the lower rent of £11760.00 per year is to be registered as the fair rent for this property.

Chairman: [NAME]: 9 November 2023

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