First-tier Tribunal Sets Fair Rent for Property

OUTCOME: Allowed

First-tier Tribunal – Property Chamber File Ref No. LON/00AZ/F77/2024/0153

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 313A [ADDRESS], [POSTCODE] [NAME] Mr [APPELLANT] c/o [APPELLANT]

Tenant Mr [APPELLANT]

1. The fair rent is £620 Per Month (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 16th August 2024

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 £640.50 per month.

[NAME] of decision 16th August 2024

MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 387.3

PREVIOUS RPI FIGURE Y 317.7

X 387.3 Minus Y 317.7 = (A) 69.6

(A) 69.6 Divided by Y 317.7 = (B) 0.22

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

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.27

Last registered rent* 504 Multiplied by (C) = 640.08 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £640.50

Variable service charge NO If YES add amount for services

MAXIMUM FAIR RENT = £640.50 Per Month

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.

Case Reference

: LON/00AZ/F77/2024/0153

Property : 313A Sydenham, London [POSTCODE]

Tenant

: [NAME]

Landlord : [APPELLANT] c/o [NAME] of Objection : 6 February 2024

Type of Application : Section 70, Rent Act 1977

Tribunal

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

: 16 August 2024

_______________________________________________

DECISION

The sum of £620 per calendar Month will be registered as the fair rent with effect from 16 August 2024, being the date, the Tribunal made the Decision. ____________________________________

© CROWN COPYRIGHT 2023

SUMMARY REASONS FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

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 and relied on the information provided by the Rent Officer together with [ADDRESS] and its expert knowledge.

Evidence 3.. The Tribunal had copies of the Valuation Office Agency correspondence including the rent registers effective 19th January 2022 and 22nd January 2024 together with the calculations for the most recent registration.

The Tenant provided detailed information in connection with the property in the completed Reply Form together with helpful photographs. No comparable evidence was provided by the parties. The Landlord did not provide any written submissions.

The Hearing

5. A hearing took place at 10.00am on the 16th August 2024 attended by the Tenant Mr [APPELLANT]. The [NAME] confirmed it had read the papers and asked Mr [NAME] to present his case, with particular reference to the condition of the flat and the entrance. The Tribunal found the evidence submitted by Mr [NAME] to be reliable and credible and had no reason to reject this.

Determination and Valuation 6. Having consideration of our own expert, general knowledge of rental values in the Sydenham area, we consider that the open market rent for the property in its current condition would be in the region of £1,550 per calendar month (From this level of rent we have made adjustments in relation to:

Terms of tenancy, no white goods, no carpets or curtains, rot infestation to sash windows, unmodernised condition, no central heating , evidence of mould to the walls via water penetration, poor rear entrance and location over commercial premises which equates to approximately 50%

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

8.. The full valuation is shown below:

Market Rent £1,550 pcm

Less (as above)

approx. 50% £775

Leaves: £775

Less Scarcity

approx. 20%

£155

Leaves: £620 pcm

9. The Tribunal determines a rent of £620 per calendar month

Decision

10. The uncapped fair rent initially determined by the Tribunal, for the purposes of section 70, was in accordance with the above calculations being £620 per calendar month. The capped rent for the property according to the provisions of the Rent Acts (Maximum Fair Rent) Order 1999 is calculated at £640.50 per calendar month. The calculation of the capped rent is shown on the decision form. In this case the lower rent of £620.00 per calendar month is to be registered as the fair rent for this property.

Chairman: [NAME]: 16 August 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