Tribunal Determines Fair Rent for Property Under Rent Act 1977

OUTCOME: Allowed

FR24 First-tier Tribunal – Property Chamber File Ref No. GB/LON/00AG/F77/2024/0091

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

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

Judge Shepherd R Waterhouse FRICS

Landlord [NAME] [APPELLANT]

Tenant Mr [APPELLANT]

1. The fair rent is £1654.50 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 16 May 2024

3. The amount for services is not applicable Per

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

not applicable Per

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

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 £1900.80 Per month.

Chairman Judge Shepherd Date of decision 16 May 2024

FR24 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 383.00

PREVIOUS RPI FIGURE Y 293.30

X 383.00 Minus Y 293.30 = (A) 89.70

(A) 89.70 Divided by Y 293.30 = (B) 0.3058

First application for re-registration since 1 February 1999 NO

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.3558

Last registered rent* 1220 Multiplied by (C) = £1654.11 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £1654.50

Variable service charge NO If YES add amount for services

MAXIMUM FAIR RENT = £1654.50 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.

Case Reference

: LON/OOAG/F77/2024/0091

Property : [ADDRESS] [POSTCODE]

Tenant

: [APPELLANT]. [APPELLANT]

Landlord : [APPELLANT] of Application : Section 70, Rent Act 1977

Tribunal : Judge Shepherd and Richard

Waterhouse FRICS

Date of Summary Reasons

: 16th May 2024

_______________________________________________

DECISION

The sum of £1654.50 per calendar month will be registered as the fair rent with effect from 16th May 2024 being the date the Tribunal made the Decision. ____________________________________ FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

© CROWN COPYRIGHT 2023

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. The Tribunal carried out an inspection on 16th May 2024. [NAME] has carried out an inspection of the property on 13th February 2024.

Evidence 3. The Tribunal has consideration of the written submissions provided by the Tenant and landlord.

Determination and Valuation 4. Having consideration of the comparable evidence proved by the parties and 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 £2100 per calendar month. From this level of rent we have made adjustments in relation to:

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

6. The full valuation is shown below:

Market rent£ 3300 per calendar month.

Less Terms - £330 per month

Less condition- £594 per month

Less scarcity- £475.20 per month

Equals- £1900.80 pcm

The maximum fair rent is £1654.50 pcm

Therefore the Tribunal determines a rent of £1654.50 per calendar month.

Decision 8. The uncapped fair rent initially determined by the Tribunal, for the purposes of section 70, was £1900.80 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 £1654.50. The calculation of the capped rent is shown on the decision form. In this case the lower rent of £1654.50 is to be registered as the fair rent or this property.

Chairman: Judge Shepherd

16th May 2024

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