First-tier Tribunal Sets Fair Rent for Property Under Rent Act 1977

OUTCOME: Dismissed

FR27 First-tier Tribunal – Property Chamber File Ref No. HAV/29UQ/F77/2025/0605

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 1 [ADDRESS] [POSTCODE]

Mr I Perry BSc FRICS Mr N Robinson FRICS Judge Arrow

Landlord The Hadlow Estate

Tenant [NAME] [APPELLANT]

1. The fair rent is £1040.50 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 6 March 2025

3. The amount for services is n/a Per n/a

not applicable

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

n/a Per n/a

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)/ do not apply because 1st registration/15% exemption.

7. Details (other than rent) where different from Rent Register entry

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 £1385.00 per Calendar Month.

Chairman Mr I Perry BSc FRICS Date of decision 6 March 2025

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 391.70

PREVIOUS RPI FIGURE Y 360.30

X 391.70 Minus Y 360.30 = (A) 31.40

(A) 31.40 Divided by Y 360.30 = (B) 0.0871

First application for re-registration since 1 February 1999 NO

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.1371

Last registered rent* £915.00 Multiplied by (C) = £1040.44 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £1040.50

Variable service charge NO If YES add amount for services

MAXIMUM FAIR RENT = £1040.50 Per Calendar 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.

© CROWN COPYRIGHT 2025

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : HAV/29UQ/F77/2025/0605 Property : 1 [ADDRESS] [POSTCODE] Tenant : [NAME] :

None

Landlord : The Hadlow Estate Representative : None Type of Application :

Section 70 Rent Act 1977 (“the Act”) Determination by the First-Tier Tribunal of the fair rent of a property following an objection to the rent registered by the Rent Officer.

Tribunal Members : Mr I R Perry FRICS Mr N I Robinson FRICS Judge I Arrow Date of Objection : 15th January 2025 Date of Decision and Summary Reasons :

6th March 2025

DECISION

The Tribunal determines a rent of £1,040.50 per month with effect from 6th March 2025.

HAV/29UQ/F77/2025/0605 2

SUMMARY REASONS

Background 1. On 19th November 2024 the Landlord applied to the Rent Officer for the registration of a new rent for the property in accordance with Section 70 of the Rent Act 1977.

2. The rent was previously registered at £915 per month on 18th January 2025 following a determination by the Rent Officer.

3. On 3rd January 2025 the Rent Officer registered a new rent of £1,005 for the property to take effect from the 18th January 2025.

4. On 15th January 2025 the Landlord objected to this new rent and the matter was referred to the First-tier Tribunal Property Chamber (Residential Property), formerly a Rent Assessment Committee. Inspection 5. The Tribunal did not inspect the property but considered this case based on the papers provided by the parties and information freely available on the internet. Evidence

6. The Tribunal has considered the written submissions provided by the Landlord. There were no written submissions from the Tenant. Determination and Valuation 7. Having consideration to the comparable evidence provided and 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 £1,650 per month.

8. Such a tenancy would normally include white goods, carpets and curtains/blinds to all be provided by the Landlord and the Landlord would also be responsible for internal repair and decoration.

9. In this case the property is not let in such condition or with white goods, carpets and curtains all supplied so some adjustments to the ‘open market rent’ are necessary. In addition the Tribunal has made the adjustments for the Tenant’s responsibility for internal decoration, general wants of repair and an unmodernised kitchen.

10. The Tribunal noted the numbers of properties with similar accommodation within a reasonable distance of the property that are available to rent and decided that no deduction for scarcity should be made.

11. The full valuation is shown below:

HAV/29UQ/F77/2025/0605 3 Full open market rent in good condition £1,650 Less deductions for:- Tenants’ liability for internal decoration

£60 Tenant’s provision of white goods

£30 Tenant’s provision of carpets

£60 Tenant’s provision of curtains

£15 Unmodernised kitchen

£50 General wants of repair

£50

____

Total deduction per month

£265 TOTAL RENT PAYABLE PER MONTH

£1,385

12. Having made the adjustments indicated above the Fair Rent determined by the Tribunal for the purpose of section 70 of the Rent Act 1977 was £1,385 per calendar month.

13. The Section 70 Fair Rent determined by the Tribunal is above the maximum fair rent of £1,040.50 permitted by the Rent Acts (Maximum Fair Rent) Order 1999.

Accordingly, the lower amount of £1040.50 is to be registered as the Fair rent with effect from 6th March 2025, this being the date of the Tribunal’s decision.

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.