Tribunal Adjusts Fair Rent for Tenancy Based on Property Condition

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. HAV/43UC/F77/2025/0632

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 20 [ADDRESS] [POSTCODE]

[NAME] Mr [RESPONDENT] [APPELLANT] ([NAME]) Ltd

Tenant Mr [APPELLANT]

1. The fair rent is £1,151.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 10 November 2025

3. The amount for services is n/a Per n/a

not applicable

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

n/a Per n/a

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

None

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 £1,180.00 per Calendar Month.

[NAME] of decision 10 November 2025

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 406.1

PREVIOUS RPI FIGURE Y 376.6

X 406.1 Minus Y 376.6 = (A) 29.5

(A) 29.5 Divided by Y 376.6 = (B) 0.0783

First application for re-registration since 1 February 1999 NO

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.1283

Last registered rent* £1,020.00 Multiplied by (C) = £1,150.90 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £1,151.00

Variable service charge NO If YES add amount for services

MAXIMUM FAIR RENT = £1,151.00 Per Calendar 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.

© CROWN COPYRIGHT 2025

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : HAV/43UC/F77/2025/0632 Property : 20 [ADDRESS], [POSTCODE] Applicant Tenant : Mr [COUNSEL] : None Respondent Landlord : [RESPONDENT] ([NAME]) [RESPONDENT]. Representative : Lifespace, 16-[ADDRESS], Southend-on-Sea [POSTCODE] Type of Application : Section 70 Rent Act 1977 (“the Act”) Determination by the First-Tier Tribunal of the fair rent of a property following an objection to the rent registered by the Rent Officer Tribunal Members : Mr [NAME] Mr [NAME] of Objection : 1 October 2025

Date of Decision & Summary Reasons

:

10 November 2025

DECISION

The Tribunal determines a rent of £1,151 per month with effect from 10 November 2025.

HAV/43UC/F77/2025/0632 2 Summary of Decision

1. The Tribunal determined a Fair Rent of £1,151 per month to take effect from 10 November 2025.

Background 2. On 8 October 2025 the Landlord applied to the Rent Officer for the registration of a new rent for the property in accordance with Section 70 of the Rent Act 1977.

3. The rent was previously registered at £1020 per month on 21 August 2023 following a determination by the Rent Officer.

4. On 18 August 2025 the Rent Officer registered a new rent of £1,008 per month for the property to take effect from 15 September 2025.

5. The Landlord objected to this new rent on 1 October 2025 and the matter was referred to the First-tier Tribunal Property Chamber (Residential Property), formerly a Rent Assessment Committee.

Inspection 6. The Tribunal did not inspect the property but considered this case based on the papers provided by the parties and information freely available on the internet.

Evidence

7. The Tribunal has considered the written submissions provided by the Tenant and the Landlord.

Determination and Valuation

8. Having consideration to the comparable evidence provided and 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 £1,800 per calendar month.

9. Such a tenancy would normally include white goods, carpets and curtains/blinds to all be provided by the Landlord. The Landlord would also be responsible for internal repair and decoration.

10. In this case the property is not let in that condition, rather, the Tribunal is informed, it was unmodernised and extensive works have, on the Tenant’s submission, been carried out: notably floor-levelling and fitting of a modern

HAV/43UC/F77/2025/0632 3 kitchen. The Landlord submitted that it had supplied carpets and curtains for the Property, this is denied by the Tenant.

11. The Tribunal noted the numbers of properties with similar accommodation within a reasonable distance of the property that are available to rent and decided that no deduction for scarcity should be made.

12. In consequence of that, the Tribunal’s estimate of an open market rent for such a property in good condition is £1800 per month, from which deductions should be made for

Condition (30%)

£540 Absence of white goods & furnishings £80

------------- Total adjustment per month

£620

TOTAL RENT PAYABLE PER MONTH £1,180

13. Having made the adjustments indicated above the Fair Rent determined by the Tribunal for the purpose of section 70 of the Rent Act 1977 was £1,180 per calendar month.

14. The Section 70 Fair Rent determined by the Tribunal is above the statutory maximum fair rent of 1,151 per month permitted by the Rent Acts (Maximum Fair Rent) Order 1999. Accordingly, the lower amount of £1,151 per month is to be registered as the Fair Rent with effect from 10 November 2025, this being the date of the Tribunal’s decision.

HAV/43UC/F77/2025/0632 4

RIGHTS OF APPEAL

1. A person wishing to appeal this decision to the Upper Tribunal (Lands Chamber) must seek permission to do so by making written application to the First-tier Tribunal at the [NAME] which has been dealing with the case. Where possible you should send your application for permission to appeal by email to [EMAIL] as this will enable the First-tier Tribunal [NAME] to deal with it more efficiently.

2. The application must arrive at the Tribunal within 28 days after the Tribunal sends to the person making the application written reasons for the decision.

3. If the person wishing to appeal does not comply with the 28-day time limit, the person shall include with the application for permission to appeal a request for an extension of time and the reason for not complying with the 28-day time limit; the Tribunal will then decide whether to extend time or not to allow the application for permission to appeal to proceed.

4. The application for permission to appeal must identify the decision of the Tribunal to which it relates, state the grounds of appeal, and state the result the party making the application is seeking.

5. Either party seeking to appeal a decision are referred to form RPPTA.