First-tier Tribunal Sets Fair Rent for Property

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. LON/00AW/F77/2025/0154

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

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

Ms S [NAME] Ms [RESPONDENT] [APPELLANT]

Landlord [APPELLANT]

Tenant [NAME] [APPELLANT]

1. The fair rent is £21,275 Per annum (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 2 July 2025

3. The amount for services is £322.18 Per annum

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

8. For information only:

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 £22,675.50 per annum prescribed by the Order.

Chairman S [NAME] of decision 2 July 2025

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 402.9

PREVIOUS RPI FIGURE Y 345.2

X 402.9 Minus Y 345.2 = (A) 57.7

(A) 57.7 Divided by Y 345.2 = (B) 0.167

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) 1.217

Last registered rent* £18,630 Multiplied by (C) = £22,675.49 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £22,675.50

Variable service charge NO If YES add amount for services

MAXIMUM FAIR RENT = £22,675.50 Per annum

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

: LON/00AW/F77/2025/0154

Property : [ADDRESS], [POSTCODE]

Tenant

: [NAME]

Landlord : [APPELLANT] of Objection : 9 March 2025

Type of Application : Section 70, Rent Act 1977

Tribunal

: Ms [NAME]

[NAME] [NAME]

: 2 July 2025

_______________________________________________

DECISION

The sum of £21,275 per annum will be registered as the fair rent with effect from 2 July 2025, being the date the Tribunal made the Decision. ____________________________________

© CROWN COPYRIGHT 2025

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 carried out an inspection of the property on 2 July 2025. The Tenant, Mr [APPELLANT], was present. The Landlord did not attend.

3. The Tribunal found the Property to be a fourth floor one bedroom flat with living room, kitchen, bathroom and separate WC.

Evidence

4. The Tribunal has consideration of the reply forms submitted by the Landlord and the Tenant.

5. The Tribunal is also in receipt of information provided by the Rent Officer, which shows a fixed service charge of £322.18 per annum.

Determination and Valuation

6. 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 good tenantable condition would be in the region of £2,600 per calendar month.

7. The Tribunal were cognisant of similar sized properties in the area in superior specification buildings in the vicinity being let for in excess of £3,000 per month. The rent of £2,600 per calendar month adopted by the Tribunal takes into account the nature of the building, with common parts shared with the ground floor commercial tenant, the access to the Property being up four significant flights of stairs (no lift) and the issues of water pressure and minor cracking/staining.

8. From this level of rent we have made adjustments in relation to:

• The Tenant having provided all white goods, floor and window coverings and other furnishings. • The scaffolding and netting surrounding the property, which affects the light entering and view from the property, as well as general inconvenience, including dust.

9. The Tribunal has also made an adjustment for scarcity.

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10. The full valuation is shown below:

Per calendar month MARKET RENT £2,600 Less Tenant's provision of white goods, furniture, etc ) approx. 5% £130.00 Scaffolding/netting surrounding building ) approx. 10% £260.00 Market rent less deductions £2,210.00 Less £26.85 per month for services £2,183.15

Less scarcity approx. 20% £436.63 Market rent less deductions, services and scarcity £1,746.52 Plus £26.85 per month for services £1,773.37 ADJUSTED MARKET RENT £1,773

11. The Tribunal determines a rent of £1,773 per calendar month and this equates to approximately £21,275 per annum.

Decision

12. The uncapped fair rent initially determined by the Tribunal, for the purposes of section 70, was £21,275 per annum. The capped rent for the property according to the provisions of the Rent Acts (Maximum Fair Rent) Order 1999 is calculated at £22,675.50 per annum. The calculation of the capped rent is shown on the decision form. In this case the lower rent of £21,275 per calendar annum is to be registered as the fair rent for this property.

Chairman: [NAME]: 2 July 2025

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 request for full reasons should be made within a month. Any subsequent application for permission to appeal should be made on Form RP PTA