Tribunal Determines Fair Rent Using Maximum Fair Rent Formula

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. LON/00AP/F77/2023/0256

Notice of the Tribunal [NAME] 1977 Schedule 11

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

Judge [NAME]

Landlord [COMPANY]

Tenant Ms [APPELLANT]

1. The fair [NAME] is 231 Per week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 31st October 2023

3. The amount for services is

Per

not applicable

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

Per

not applicable

5. The [NAME] is/is not to be registered as variable.

6. The capping provisions of the [NAME] ([NAME]) Order 1999 apply (please see calculation overleaf).

7. Details (other than [NAME]) where different from [NAME] entry

8. For information only:

(a) The fair [NAME] to be registered is the maximum fair [NAME] as prescribed by the [NAME] ([NAME]) Order 1999. The [NAME] that would otherwise have been registered was £320 per week.

Chairman Judge Nicol Date of decision 31st October 2023

FR27 [NAME] FIGURE X 378.4

PREVIOUS RPI FIGURE Y 275.3

X 378.4 Minus Y 275.3 = (A) 103.1

(A) 103.1 Divided by Y 275.3 = (B) 0.374500545

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) 1.424500545

Last registered [NAME]* 162 Multiplied by (C) = 230.7690883 *(exclusive of any variable service charge)

Rounded up to nearest 50p = 231

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

[NAME] = £231 Per week

Explanatory Note

1. The calculation of the maximum fair [NAME], in accordance with the formula contained in the Order, is set out above.

2. In summary, the formula provides for the maximum fair [NAME] to be calculated by:

(a) increasing the previous registered [NAME] 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 [NAME] determination was made.

4. The process differs where the tenancy agreement contains a variable service charge and the [NAME] is to be registered as variable under section 71(4) of the [NAME] 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 [NAME].

1

Case Reference

: LON/00AP/F77/2023/0256

Property : [ADDRESS] [POSTCODE]

Tenant

: [APPELLANT]

Landlord : [COMPANY] of Objection : 5th January 2023

Type of Application : Section 70, [NAME] 1977

Tribunal

: Judge [NAME] of Summary Reasons

: 31st October 2023

_______________________________________________

DECISION

The sum of £231 per week will be registered as the fair [NAME] with effect from 31st October 2023, being the date the Tribunal made the Decision. ____________________________________

© CROWN COPYRIGHT 2023

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2 SUMMARY REASONS

Background 1. Following an objection from the Tenant to the determination of a fair [NAME] by the [NAME], the Tribunal has made a determination under the provisions of the [NAME] 1977.

Inspection 2. The Tribunal did not inspect the property but considered this case on the basis of the papers provided by the parties.

Evidence 3. There were no written submissions from the parties.

Determination and Valuation 4. Having consideration of the comparable evidence used by the [NAME] and our own expert, general knowledge of rental values in the area, we consider that the open market [NAME] for the property would be in the region of £500 per week. From this level of [NAME] we have made adjustments in relation to:

(a) External disrepair (b) No white goods (c) No curtains / carpets (d) Tenant's repair liability

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

6. The full valuation is shown below:

per week [NAME]

£500

Less External disrepair

) No white goods

) No curtains / carpets

) approx. 20% Tenant's repair liability

)

100

400

Less Scarcity

approx. 20%

80

£320

Decision

8. The uncapped fair [NAME] initially determined by the Tribunal, for the purposes of section 70, was £320 per week. The capped [NAME] for the property according to the provisions of the [NAME] ([NAME]) Order 1999 is calculated at £231 per week. The calculation of the capped [NAME] is shown on

3 the decision form. In this case the lower [NAME] of £231 per week is to be registered as the fair [NAME] or this property.

Chairman: Judge Nicol

Date: 31st October 2023

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 subsequent application for permission to appeal should be made on [NAME].