First-tier Tribunal Sets Fair Rent for Property

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. LON/00BK/F77/2025/0058

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 57 [ADDRESS] [POSTCODE]

[NAME] Mr [APPELLANT]

Landlord [NAME] c/o [NAME]

Tenant Mrs [APPELLANT] [NAME]

1. The fair rent is £47,520 Per annum (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 14 April 2025

3. The amount for services is

Per

not applicable

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:

(a) 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 £55,784 per annum.

[NAME]

14 April 2025

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 394

PREVIOUS RPI FIGURE Y 317.7

X 394 Minus Y 317.7 = (A) 76.3

(A) 76.3 Divided by Y 317.3 = (B) 0.24

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

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.29

Last registered rent* 43243 Multiplied by (C) = 55783.47 *(exclusive of any variable service charge)

Rounded up to nearest 50p = 55784

Variable service charge NO If YES add amount for services

MAXIMUM FAIR RENT = £55,784 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.

1

Case Reference

: LON/00AL/F77/2025/0058

Property : 57 [ADDRESS] [POSTCODE]

Tenant

: Mrs [APPELLANT] [NAME]

Landlord : [NAME], c/o [NAME] of Objection : 12 December 2024

Type of Application : Section 70, Rent Act 1977

Tribunal

: Mr [NAME] Mr [NAME] of Summary Reasons

: 14 April 2025

_______________________________________________

DECISION

The sum of £47,520 per annum will be registered as the fair rent with effect from 14 April 2025, 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 inspected the property on the 14 April 2025 in the presence of the Tenant.

Evidence 3. The parties did not request a hearing, and the Tribunal has consideration of completed Reply Forms from the parties together with a floor plan and a schedule of Improvements undertaken by Mrs [NAME]. The parties did not provide the Tribunal with comparable evidence of rental values for similar properties in the area.

Determination and Valuation 4. Having consideration of our own expert, general knowledge of rental values in the St Johns Wood area, we consider that the open market rent for the property in its current condition would be in the region of £132,000 per annum. (£11,000 per month). From this level of rent we have made adjustments in relation to:

The onerous terms of tenancy, (the tenant has full repairing and insuring obligations) no white goods, no carpets, complete refurbishment of the property, external decorations, reconstruction of garage, driveway, external steps and conservatory, no central heating, improvements in accordance with the tenant’s schedule which equates to approximately 55%

5. The Tribunal has also made an adjustment for scarcity at 20%

6. The full valuation is shown below:

Market Rent £132,000 pa

Less

approx. 55% £72,600

£59,400

Less Scarcity

approx. 20%

£11,880

3

£47,520

7. The Tribunal determines a rent of £47,520 per calendar annum.

Decision

8. The uncapped fair rent initially determined by the Tribunal, for the purposes of section 70, was £47,520 per annum. The capped rent for the property according to the provisions of the Rent Acts (Maximum Fair Rent) Order 1999 is calculated at £55,784 per annum. The calculation of the capped rent is shown on the decision form. In this case the lower rent of £47,520 per annum is to be registered as the fair rent or this property.

Chairman: [NAME]: 14 April 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 subsequent application for permission to appeal should be made on Form RP PTA