Tribunal Adjusts Fair Rent After Inspecting Property Conditions

OUTCOME: Allowed

FR24 First-tier Tribunal – Property Chamber File Ref No. LON/00AP/F77/2019/0159

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

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

Ms [NAME] BA (Hons) DipLaw LLM Mrs [APPELLANT] MA [APPELLANT]

Tenant Mr [APPELLANT]

1. The fair rent is £9464.00 Per Annum (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 08 November 2019

3. The amount for services is £536.87 Per Annum

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

£172.77 Per Annum

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

N/A

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 below the maximum fair rent of £10,011.50 per annum including £536.87 per annum for services prescribed by the Order.

Chairman Ms [NAME] BA (Hons) DipLaw LLM Date of decision 8/11/19

FR24 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 291

PREVIOUS RPI FIGURE Y 274.7

X 291 Minus Y 274.7 = (A) 16.3

(A) 16.3 Divided by Y 274.7 = (B) 0.059337

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) 1.09337

Last registered rent* 9024.50 Multiplied by (C) = 10,011.22 *(exclusive of any variable service charge)

Rounded up to nearest 50p = 10,011.50

Variable service charge NO If YES add amount for services

MAXIMUM FAIR RENT = £10,011.50 Per Annum

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.

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case Reference : LON/00AP/F77/2019/0159 Property : 69 [ADDRESS] [POSTCODE] Tenant :

Mr. [APPELLANT]

Landlord :

[APPELLANT]. Represented by [RESPONDENT] of Application : Fair rent Tribunal Members : Judge Tagliavini Mrs A Flynn, MA, MRICS

Date and venue of hearing

: 8 [ADDRESS] [POSTCODE]

Date of Decision Date of Reasons

: 8 November 2019 30 January 2020

REASONS _____________________________________________________________________

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Summary decision of the tribunal:

I The tribunal registers the rent payable in respect of 69 [ADDRESS] [POSTCODE] as £9,464.00 per annum with effect from 8th November 2019.

_________________________________________________

The application

1. This is an objection by Mr. [APPELLANT], the tenant of 69 [ADDRESS] [POSTCODE] (“the premises”) to the capped rent registered by the Rent Officer of £9,965.00 per annum with effect from 11th August 2019 of which £536.87 is attributable to services and £172.77 attributable to fuel charges. The last registered rent was £9,024.50 per annum with effect from 11 August 2017.

The premises

2. The subject premises comprise a self-contained purpose built flat with partial central heating and comprising 3 rooms, kitchen and bathroom/w.c. The tenancy is subject to section 11 of the Landlord and Tenant 1985.

The Applicant’s evidence

3. At the request of the tenant an oral hearing was held by the tribunal at which he attended. In his oral evidence to the tribunal Mr. [NAME] said that the increase from the last registered rent was too high and instead it should be an increase in the region of 7.5%. Mr. [NAME] told the tribunal that he has only one radiator in the hallway and that as the supply of hot water is irregular he has a bath at 5a.m or 6 a.m. as it “runs out” during the day.

4. Mr. [NAME] told the tribunal that as his flat is located next to the lift on the ground floor he regularly gets disturbed by the sound of it being used. Mr. [NAME] added that he had not been notified of the 2017 registered rent and had paid in the region of £8,000 per annum and appeared to accord with the Respondent’s notice seeking an increase to the registered rent from the £682.50 currently being charged.

The Respondent’s evidence

5. In the landlord’s Application for Registration of Fair Rent dated 26/06/2019 a rent of £315 per week was requested thereby representing an increase on the £682.50 per month said to being charged. The Respondent did not attend the oral hearing and was not represented.

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The tribunal’s inspection

6. The tribunal carried out an inspection of the subject property on 8 November 2019. It found the interior of the larger bedroom to be in an overall fair condition although with signs of mould and water leakage in the bathroom and a piece of broken glass in the second bedroom. However, the tribunal found there to a limited number of electrical sockets in the premises and the central heating to be limited to one radiator in the hallway. The tribunal also found the presence of damp underneath the living room window.

7. The tribunal also noted the location of the flat near to the ground floor lift.

The tribunal’s decisions and reasons

8. The tribunal took as its starting point a market rent of £325 per week in line with schedule of market rents provided to it of £300 to £550 per week 2 bed properties in the N10 postcode.

9. However, in light of its findings on inspection the tribunal determined that a deduction f 30% should be made to reflect the lack of full central heating; the dated kitchen and bathroom; the lack of curtains and carets and the terms and conditions of the tenancy. This provided an adjusted figure of £227.50 per week.

10. The tribunal then made a 20% deduction to reflect scarcity in the Greater London area which provided an uncapped fair rent of £182.00 per week or £9,464 per annum.

11. As neither party had objected the figure attributable to services or ,the tribunal adopted this figure for the purpose of its own calculation of the fair rent to be registered.

12. In accordance with the Rent Acts (Maximum Fair Rent) Order 1999 the tribunal carried out the calculation required (see sheet previously provided to the parties). This produced a figure of £10,011.50 per annum.

13. As the capped figure was higher than the uncapped fair rent the tribunal registered the lower of these figures. Therefore, the rent to be registered with effect from 8th November 2019 is £9,464 per annum.

14. In conclusion the tribunal appreciates that the increase in rent appears to be higher than expected by Mr. [NAME]. However, this appears to be attributable to the Respondent having failed to seek the payment of the rent registered on 11 August 2017 of £9,024.50 and amounting to £752 per month/£174.00 per week. However, this is a matter for the

4 landlord if it seeks to charge a lower than registered rent and is not a matter within the jurisdiction of the tribunal.

Signed: Judge Tagliavini

Dated: 30 January 2020