First-tier Tribunal Sets Fair Rent Under Rent Act 1977

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. LON/00AF/F77/2024/0656

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

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

Judge S [NAME] [NAME]

Landlord The [APPELLANT]

Tenant Ms [APPELLANT]

1. The fair rent is £229.84 Per week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 14 January 2025

3. The amount for services is £9.20 Per week

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

£5.01 Per week

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).

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 £235.20 per week including £9.20 per week for services (variable) prescribed by the Order.

[NAME] of decision 14 January 2025

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 390.9

PREVIOUS RPI FIGURE Y 345.2

X 390.9 Minus Y 345.2 = (A) 45.7

(A) 45.7 Divided by Y 345.2 = (B) 0.132387

First [NAME] for re-registration since 1 February 1999 NO

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.182387

Last registered rent* £191.08 (225.00 – 33.92 services) Multiplied by (C) = 225.93 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £226

Variable service charge YES If YES add amount for services £9.20

MAXIMUM FAIR RENT = £235.20 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 [NAME] was the first since 1 February 1999) or 5% (if it is a second or subsequent [NAME] 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 [NAME] 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/00AF/F77/2024/0656

Property : [ADDRESS] [POSTCODE]

Tenant

: Ms [APPELLANT]

Landlord : The [RESPONDENT] of Objection : 12 September 2024

Type of [NAME] : Section 70, Rent Act 1977

Tribunal

: Judge S [NAME] [NAME] [ ] RICS

Date

: 14 January 2025

_______________________________________________

DECISION

The sum of £229.92 per week will be registered as the fair rent with effect from 14 January 2025, being the date the Tribunal made the Decision. ____________________________________

© CROWN COPYRIGHT 2023

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

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REASONS

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.

2. The lease was granted on 16 November 1987. The property is a maisonette, built in the 1970’s. It consists of one room and a kitchen on the first floor and two rooms and a bathroom/WC on the second floor. It is said to include a car space.

Inspection 3. The Tribunal did not inspect the maisonette but considered this case on the basis of the papers provided by the parties.

Evidence 4. The Tribunal has consideration of the written submissions provided by the Tenant.

The Tenant’s objections 5. The Tenant says firstly that the rent register shows she has the benefit of a car space, she denies this. However, it does appear on the previous registration and we do not have sight of the lease to disprove this.

6. The Tenant says secondly that her block is due to be demolished. However, we are valuing the maisonette at the current date. There is no evidence offered of the current standard by either party. Accordingly, we make no reduction because of this.

Determination and Valuation 7. Having consideration 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 in the region of £380.00 per week.

8. We make a deduction from the open market rent to allow for:

(a) the difference between the condition of the maisonette and a property in good tenantable condition; and

(b) the decorating obligations in the lease; and

(c) the provision of floor coverings, curtains etc.

What about white goods referred to by the RO?

9. The amount we allow for reductions is 25%, giving an adjusted figure of £285.00 per week.

10. From this figure we deduct the service charge of £9.20 per week,

3 resulting in a figure of £275.80.

11. We allow a reduction of 20% for scarcity which is £55.16. This produces a figure of £220.64 per week.

12. It is then necessary to add back on the service charge of £9.20 per week.

13. This produces a fair rent of £229.84 per week.

Decision

14. The Tribunal therefore determines a rent of £229.84 per week for the purposes of section 70 Rent Act 1977.

Chairman: [NAME]: 14 January 2025

Rights of appeal

By rule 36(2) of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013, the Tribunal is required to notify the parties about any right of appeal they may have.

If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber), then a written [NAME] for permission must be made to the First-tier Tribunal at the Regional Office which has been dealing with the case. The [NAME] should be made on the Tribunal Form RP PTA which is available at https://www.gov.uk/government/publications/form-rp-pta-[NAME]-for- permission-toappeal-a-decision-to-the-upper-tribunal-lands-chamber.

The [NAME] for permission to appeal must arrive at the Regional Office within 28 days after the Tribunal sends written reasons for the decision to the [NAME].

If the [NAME] is not made within the 28-day time limit, such [NAME] must include a request for an extension of time and the reason for not complying with the 28-day time limit; the Tribunal will then look at such reason(s) and decide whether to allow the [NAME] for permission to appeal to proceed, despite not being within the time limit.

The [NAME] for permission to appeal must identify the decision of the Tribunal to which it relates (i.e. give the date, the property and the case number), state the grounds of appeal and state the result the party [NAME] the [NAME] is seeking. Please note that if you are seeking permission to appeal against a decision made by the Tribunal under the Rent Act 1977, the Housing Act

4 1988 or the Local Government and Housing Act 1989, this can only be on a point of law.

If the First-tier Tribunal refuses to grant permission to appeal, a further [NAME] for permission may be made to the Upper Tribunal (Lands Chamber).