First-tier Tribunal Sets Fair Rent Under Rent Act 1977

OUTCOME: Allowed

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Case Reference

: BIR/OOGG/F77/2025/0013

Property : 56 [ADDRESS] [POSTCODE]

Tenant

: Mr [APPELLANT]

Landlord : [NAME] of Objection : 7th February 2025

Type of Application : Section 70 Rent Act 1977

Tribunal Members : Mr [NAME] Mrs [NAME] of Decision : 10th March 2026

_______________________________________________

DECISION

The sum of £519.00 per month will be registered as the fair rent with effect from 10th March 2026 being the date the Tribunal made the Decision. ____________________________________

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2 REASONS FOR THE DECISION

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 but considered this case on the basis of the papers provided by the parties and having regard to its own knowledge, expertise and online research.

Evidence

3. The Tribunal has considered the written submissions provided by the Tenant.

4. From the information provided it appears that the subject property comprises of a relatively modern terraced house. The accommodation is understood to comprise of one living room, dining kitchen, W.C and stores on the ground floor. On the first floor are three bedrooms and bathroom with W.C. Based on the Rent Register the property is understood to have full central heating. Based on internet mapping, the Tribunal understands that the property is double glazed.

5. The tenant submits:

a) He has lived in the property for 39 years. b) He has always maintained the property in good condition. c) The level of increase is excessive and more than he can afford. d) The proposed increase amounts to almost £113.00 in addition to the £400.00 already paid.

6. The landlord made no submissions.

Determination and Valuation

7. On consideration of the comparable evidence proved by the parties, that

forwarded by the Rent Officer and the Tribunal’s own expert knowledge of rental

values in the area, the Tribunal considers that the open market rent for the

property in a satisfactory condition would be in the region of £725.00 per month.

From this level of rent, the Tribunal has made adjustments in relation to the

following:

a) Curtains, carpets and white goods fitted by the Tenant. b) The Tenant’s liability to redecorate.

3 8. The Tribunal notes that the tenant submits in 5(d) above that the proposed increase is some £113.00 per month. According to the papers submitted to the Tribunal it appears that the rent registered in September 2021 was £460.00 per month and the rent registered in January 2025 was £500.00 per month. The Tribunal calculates this as being a proposed increase of £40.00 per month.

9. The Tribunal has also made an adjustment for scarcity using their own general

knowledge and experience. The Tribunal considers that in the wider geographical

area there is an imbalance of supply and demand impacting on rental values and

has, therefore, has made a reduction of 15% for scarcity.

9. The full valuation is shown below:

Market Rent

£725.00 per month

Less a) Items given under a) above

£60.00

b) Tenant’s internal decoration liability @ 5% £37.00

Less Scarcity @ 15%

£109.00

£206.00

£519.00

10. The Tribunal determines an uncapped rent of £519.00 per month.

Decision

11. The uncapped fair rent determined by the Tribunal, for the purposes of section 70, is therefore £519.00 per month. The maximum fair rent permitted by the Rent Acts (Maximum Fair Rent) Order 1999 is £629.00 per month. This therefore has no impact on the rent determined by the Tribunal. The calculation of the capped rent is shown on the decision form.

Chairman: [NAME]: 10th March 2026

APPEAL PROVISIONS

If either party is dissatisfied with this decision, they may apply for permission to appeal to the Upper Tribunal (Lands Chamber) on any point of law arising from this Decision. Prior to making such an appeal, an application must be made, in writing, to this Tribunal for permission to appeal. Any such application must be made within 28 days of the issue of this statement of reasons (regulation 52 (2) of The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013) stating the grounds upon which it is intended to rely in the appeal.

4 First-tier Tribunal – Property Chamber File Ref No.

BIR/OOGG/F77/2025/0013

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 56 [ADDRESS] [POSTCODE]

[NAME] Mrs [APPELLANT] [NAME] Mr [APPELLANT]

1. The fair rent is £519.00 Per Month (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 10th March 2026

3. The amount for services is £1.63 Per Month

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

N/A Per -

5. The rent is/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:

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 £XXX permitted by the Order/ The fair rent to be registered is limited by the Rent Acts (Maximum Fair Rent) Order 1999, because it is above the maximum fair rent of £XXX permitted by the Order.

[NAME] of decision 10th March 2026

5 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 406.4

PREVIOUS RPI FIGURE Y 308.6

X 406.4 Minus Y 308.6 = (A) 97.8

(A) 97.8 Divided by Y 308.6 = (B) 0.3169

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) 1.3669

Last registered rent* 460.00 Multiplied by (C) = £628.77 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £629.00

Variable service charge NO If YES add amount for services

MAXIMUM FAIR RENT = £629.00 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.