Tribunal Sets Capped Fair Rent for Residential Tenancy

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. LON/00AZ/F77/2025/0028

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

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

Judge Tagliavini Mrs S Redmond MRICS

Landlord [COMPANY]

Tenant Ms [APPELLANT] [NAME]

1. The fair rent is £187.50 Per week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 2 April 2025

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 rent allowance is

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)/ do not apply because 1st registration/15% exemption.

7. Details (other than rent) where different from Rent Register entry

Self-contained converted flat circa 1800-1918 with 3 rooms, kitchen-diner, bathroom/w.c, w.c. and shared garden

8. For information only:

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 £252.00 per week.

Chairman Judge Tagliavini

Date of decision 2 April 2025

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 394

PREVIOUS RPI FIGURE Y 356.2

X 394 Minus Y 356.2 = (A) 37.8

(A) 37.8 Divided by Y 356.2 = (B) 0.10612

First application for re-registration since 1 February 1999 NO

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.15612

Last registered rent* 162 Multiplied by (C) = 187.29 *(exclusive of any variable service charge)

Rounded up to nearest 50p = 187.50

Variable service charge NO If YES add amount for services

MAXIMUM FAIR RENT = £187.50 Per week

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.

1

Case Reference

: LON/00AZ/F77/2025/0028

Property : [ADDRESS] [POSTCODE]

Tenant

: [APPELLANT] [NAME]

Landlord : [COMPANY] of Objection : 26 November 2024

Type of Application : Section 70, Rent Act 1977

Tribunal

: Judge Tagliavini

Mrs S Redmond MRICS

Date

: 2 April 2025

_______________________________________________

DECISION

The sum of £187.50 per week will be registered as the fair rent with effect from 2 April 2025 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

rent by the Rent Officer, the Tribunal has made a determination under

the provisions of the Rent Act 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 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 its current

condition would be in the region of £420 per week. From this level of

rent we made adjustments of 25% in relation to:

Terms of tenancy

Curtains and carpets

White goods

Dated kitchen and bathroom

Partial central heating

5. The Tribunal has also made an adjustment of 20% for scarcity.

6. The valuation is shown below:

Market Rent £420.00 per week

Less 25%

£315.00

Less

Scarcity 20% £252.00

7. The Tribunal determines a rent of £252.00 per week.

3 Decision

8. The uncapped fair rent initially determined by the Tribunal, for the

purposes of section 70, was £252.00 per week. The capped rent for the

property according to the provisions of the Rent Acts (Maximum Fair

Rent) Order 1999 is calculated at £187.50. The calculation of the capped

rent is shown on the decision form. In this case the lower rent of

£187.50 per week is to be registered as the fair rent or this property.

Chairman: Judge Tagliavini

Date: 2 April 2025

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