Tribunal Adjusts Fair Rent for Property Considering Multiple Factors

OUTCOME: Allowed

© CROWN COPYRIGHT 2026

Case Reference : HS/LON/00AG/F77/2025/0307 Property : [ADDRESS], [POSTCODE] Tenant : Mr [APPELLANT] Landlord : [COMPANY] of Objection : 11 September 2025 Type of Application : Section 70, Rent Act 1977 Tribunal Members : Mr [NAME] and venue of Consideration : 2 February 2026 – 10 [ADDRESS], [POSTCODE] Date of Decision : 2 February 2026 Date of Summary Reasons : 2 February 2026

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DECISION

The sum of £1,252.50 per calendar month will be registered as the fair rent with effect from 2 February 2026, being the date the Tribunal made the Decision. ____________________________________

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

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SUMMARY 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. Inspection 2. I did not inspect the property but considered this case on the basis of the papers provided by the parties. Evidence 3. I had consideration of the written submissions provided by the Tenant and the Landlord. Determination and Valuation 4. Having consideration of my own expert, general knowledge of rental values in the area, I consider that the open market rent for the property in good tenantable condition would be in the region of £2,500 per calendar month. From this level of rent I have made adjustments in relation to: a. The lease terms at the property being less attractive than would generally be expected in the market as regards the tenant’s liability for internal decorations. b. The tenant’s provision of white goods, curtains, floor coverings and other similar furnishings which would usually be provided by a landlord. c. Damp issues at the property. d. The property being single glazed.

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

6. The full valuation is shown below:

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7. The Tribunal determines a rent of £1,370 per calendar month including £115.66 per calendar month for services. Decision 8. The uncapped fair rent initially determined by the Tribunal, for the purposes of section 70, was £1,370 per calendar month. The capped rent for the property according to the provisions of the Rent Acts (Maximum Fair Rent) Order 1999 is calculated at £1,252.50 per calendar month. The calculation of the capped rent is shown on the decision form. In this case the lower rent of £1,252.50 per calendar month including £115.66 per calendar month for services is to be registered as the fair rent for this property.

9. It is worth noting that there are disputes of fact between the parties as regards whether the property is located on the lower ground floor or ground floor, and whether the property has double glazing or not. In considering the above determination, I have adopted the tenant’s position on both disputes (that the subject property is on the lower ground floor and that it is single glazed) – as in any event this results in a rent figure higher than the ‘capped’ rent as set out above. It is therefore neither necessary nor proportionate to arrange a hearing to resolve those disputes of fact, as the only impact would be a higher uncapped rent, which would not affect the (capped) amount actually to be registered. Chairman: [NAME]: 2 February 2026

4 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

FR27 First-tier Tribunal – Property Chamber File Ref No. HS/LON/00AG/F77/2025/0307

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

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

Mr [APPELLANT]

Landlord [COMPANY]

Tenant Mr [APPELLANT]

1. The fair rent is £1,252.50 Per Cal Month (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 2 February 2026

3. The amount for services is £115.66 Per Cal Month

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

N/A Per

not applicable

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

Both parties aver that the subject property is a flat, not a bungalow.

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 £1,370 per calendar month including £115.66 per calendar month for services.

[NAME] of decision 2 February 2026

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 408.5

PREVIOUS RPI FIGURE Y 214.4

X 408.5 Minus Y 214.4 = (A) 194.1

(A) 194.1 Divided by Y 214.4 = (B) 0.905317

First application for re-registration since 1 February 1999 NO

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.955317

Last registered rent* £640.50 Multiplied by (C) = £1,252.38 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £1,252.50

Variable service charge NO If YES add amount for services N/A

MAXIMUM FAIR RENT = £1,252.50 Per Cal 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.