First-tier Tribunal sets fair rent for property under Rent Act 1977

OUTCOME: Allowed

FR24 First-tier Tribunal – Property Chamber File Ref No. GB/LON/00AY/F77/2024/0127

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

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

Judge [NAME] [NAME]

Landlord [NAME]

Tenant Mr [APPELLANT]

1. The fair rent is £239.84 Per Week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 20 May 2024

3. The amount for services is £17.34 Per Week

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

not applicable Per

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 the maximum fair rent as prescribed by the Rent Acts (Maximum Fair Rent) Order 1999. The rent that would otherwise have been registered was £ 245.34 per week including £17.34 per week for services (variable).

Chairman Judge O’[NAME] of decision 20 May 2024

FR24 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 383

PREVIOUS RPI FIGURE Y 292.6

X 383 Minus Y 292.6 = (A) 90.4

(A) 90.4 Divided by Y 292.6 = (B) .3089542

First application for re-registration since 1 February 1999 NO

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.3589542

Last registered rent* 163.50 Multiplied by (C) = 222.50 *(exclusive of any variable service charge)

Rounded up to nearest 50p = 222.5

Variable service charge YES If YES add amount for services 17.34

MAXIMUM FAIR RENT = £239.84 Per Week

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/00AY/F77/2024/0127

Property : [ADDRESS] [POSTCODE]

Tenant

: Mr [APPELLANT]

Landlord : [APPELLANT] of Objection : 1 February 2024

Type of Application : Section 70, Rent Act 1977

Tribunal : Judge O’[NAME], [NAME] of Summary Reasons

: 20 May 2024

_______________________________________________

DECISION

The sum of £239.84 will be registered as the fair rent with effect from 20 May 2024, being the date the Tribunal made the Decision. ____________________________________

© CROWN COPYRIGHT 2023

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

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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. Tribunal did not inspect the property but considered this case on the basis of the papers provided by the parties.

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. Having consideration of 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 £380 per week. From this level of rent we have made adjustments in relation to:

• Tenants liability to repair/redecorate • No white goods • No curtains or floor coverings • General disrepair • Leaks and damp issues

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

6. The full valuation is shown below:

Market Rent

£380 per week

Less

• tenant’s repair liability -5% • no white goods -5% • no curtains/floor coverings -5% • General disrepair -5% • Leak and damp issues -5%

£95

£275

Less Scarcity

approx. 20%

£57

Fair Rent

£228

3 Decision 8. The uncapped fair rent initially determined by the Tribunal, for the purposes of section 70, was £228 per week. The capped rent for the property according to the provisions of the Rent Acts (Maximum Fair Rent) Order 1999 is calculated at £222.50 per week. The calculation of the capped rent is shown on the decision form. In this case the lower rent of £222.50 per week, plus service charges of £17.34, is to be registered as the fair rent for this property.

Chairman: [NAME]: 20 May 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 request for full reasons should be made within a month. Any subsequent application for permission to appeal should be made on Form RP PTA