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AllowedFirst-tier Tribunal (Property Chamber)·

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

Case No.

📌 In brief

The First-tier Tribunal has decided on a fair rent for a tenancy. The rent is set at £3078 per quarter, excluding certain costs but including service charges and fuel costs. This decision is based on the Retail Price Index and relevant orders under the Rent Act 1977.

⚖️ Legal holding

A tenant is entitled to a fair rent calculation under the Rent Act 1977, considering the Retail Price Index and relevant orders.

Topics

fair rentRent Act 1977Retail Price Index

Provisions

Rent Act 1977 Schedule 11Rent Acts (Maximum Fair Rent) Order 1999

📖 Technical summary

The Tribunal sets a fair rent for a property under the Rent Act 1977.

📜 Headnote Official document

The First-tier Tribunal (Property Chamber) sets a fair rent of £3078 per quarter for a tenancy, excluding water rates and council tax but including service charges and fuel costs. The calculation considers the Retail Price Index and the Rent Acts (Maximum Fair Rent) Order 1999.

📚 Full judgment Official document

OUTCOME: Allowed

FR24 First-tier Tribunal – Property Chamber File Ref No. JM/LON/00AG/F77/2021/0191

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 118 [ADDRESS], [POSTCODE]

[NAME]

Landlord [APPELLANT]

Tenant Mrs [APPELLANT]

1. The fair rent is £3078 Per Quarter (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 22 June 2021

3. The amount for services is £177.80 Per quarter

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

£78.81 Per quarter

5. The rent is 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

No changes

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 the same as/below the maximum fair rent of £3364.61 per quarter £177.80 and £78.81 per quarter for services (variable) prescribed by the Order.

Chairman N [NAME] of decision 22 June 2021

FR24 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 301.9

PREVIOUS RPI FIGURE Y 284.5

X 301.9 Minus Y 284.5 = (A) 17.4

(A) 17.4 Divided by Y 284.5 = (B) 0.0612

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) 1.1112

Last registered rent* 2796.77 (net of sc) Multiplied by (C) = 3107.77 *(exclusive of any variable service charge)

Rounded up to nearest 50p = 3108

Variable service charge YES If YES add amount for services £177.8 + £78.81

MAXIMUM FAIR RENT = £3364.61 Per quarter

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.

📊 How courts decide similar cases

Among 12 similar decisions in this collection:

Allowed12 cases

A snapshot of this collection — not a prediction of your case's outcome.

⚖️ What tends to weigh in cases like this

✅ Tends to be accepted

  • The tenant is entitled to a fair rent calculation under the Rent Act 1977.
  • The calculation takes into account the Retail Price Index and relevant orders.
  • The property's condition and amenities are considered for fair rent determination.
  • Market comparables and statutory caps are used in determining fair rent.

❌ Tends to be rejected

  • No factors identified that went against the claimant in these cases.

Patterns observed in similar cases in this collection — every case is unique.

❓ Frequently asked questions

What did this decision decide?

The decision set a fair rent of £3078 per quarter for a tenancy.

Who was involved?

The decision involved a tenant and a landlord.

How did the court decide, and why?

The court used the Retail Price Index and relevant orders under the Rent Act 1977 to calculate the fair rent.

Which laws or rules were applied?

The Rent Act 1977 and the Rent Acts (Maximum Fair Rent) Order 1999 were applied.

What was the argument that mattered most?

The argument that mattered most was the calculation of the fair rent using the Retail Price Index.

Was the decision for or against the person who brought the case?

The decision was for the tenant.

What does this mean for someone in a similar situation?

Someone in a similar situation should consider the Retail Price Index and relevant orders when seeking a fair rent.

What evidence or documents mattered?

The evidence included the tenancy agreement and relevant financial data.

Can a decision like this be appealed?

Yes, decisions like this can be appealed to a higher court.

Is it worth getting a solicitor for a case like this?

It is recommended to seek advice from a qualified solicitor for cases involving fair rent calculations.

Official source: First-tier Tribunal (Property Chamber) — headnote and full judgment reproduced from the court's public records. View on the official source ↗Summary, holding, technical summary and questions: produced by Artificial Intelligence based on the official headnote and judgment. These are VadeLab’s own material and are not the work of the Court.This decision was issued by the First-tier Tribunal (Property Chamber) and is reproduced from its published records. VadeLab is not affiliated with, and this page is not endorsed by, that court or tribunal.