Tribunal Sets Fair Rent Adjusted for Disrepair and Scarcity

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. LON/00AN/F77/2025/0119

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 154A [ADDRESS] [POSTCODE]

[NAME] [NAME]

Landlord [APPELLANT]

Tenant Miss [APPELLANT]

1. The fair rent is £996.00 Per month (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 24 June 2025

3. The amount for services is

Per

negligible/not applicable

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

Per

negligible/not applicable

5. The rent is/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

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 £ ............................ per ................................... including £ ...................... per ................................. for services (variable).

(b) The fair rent to be registered is not limited by the Rent Acts (Maximum Fair Rent) Order 1999, because it is the same as/below the maximum fair rent of £ 1163.00 ...... per month ......... including £ ......................................... per ................................. for services (variable) prescribed by the Order.

[NAME] of decision 24 June 2025

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 402.9

PREVIOUS RPI FIGURE Y 356.2

X 402.9 Minus Y 356.2 = (A) 46.7

(A) 46.7 Divided by Y 356.2 = (B) 0.13111

First [NAME] for re-registration since 1 February 1999 YES/NO

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.18111

Last registered rent* 983.50 Multiplied by (C) = 1162.62 *(exclusive of any variable service charge)

Rounded up to nearest 50p = 1163.00

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

MAXIMUM FAIR RENT = £1163.00 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 [NAME] was the first since 1 February 1999) or 5% (if it is a second or subsequent [NAME] 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 [NAME] 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/00AN/F77/2025/0119 Property :

Tenant

: Miss [APPELLANT]

Landlord : [APPELLANT] of Objection : 8 January 2025

Type of [NAME] : Section 70, Rent Act 1977

Tribunal

: Mr [NAME] [NAME] of Summary Reasons

: 24 June 2025

_______________________________________________

DECISION

The sum of £996.00 per calendar month will be registered as the fair rent with effect from 24 June 2025, being the date the Tribunal made the Decision. ____________________________________

© CROWN COPYRIGHT 2023

SUMMARY REASONS FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2

Background

1. Following an objection from the Landlord 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. The Tribunal has considered the written submissions provided by the [NAME].

Determination and Valuation

4. In the absence of rental comparables provided by the parties the tribunal has relied on its own expert, general knowledge of rental values in the area. We consider that the open market rent for the property in the condition and with the amenities the market would expect would be in the region of £2075.00 per calendar month. From this level of rent we have made adjustments in relation to:

a. Disrepair including structural issues damp and mould b. No white goods apart from cooker c. Tenants improvements

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

6. The full valuation is shown below:

Decision

7. The uncapped fair rent initially determined by the Tribunal, for the purposes of section 70, was £996.00 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 £1163.00 per calendar month. The calculation of the capped rent is shown on the decision form. Fair rent PM Market rent 2,075.00 £ less condition & terms 40% 830.00 -£ adjusted rent 1,245.00 £ less scarcity off adj rent 20% 249.00 -£ Fair rent 996.00 £

3 In this case the lower rent of £996.00 per calendar month is to be registered as the fair rent or this property.

Chairman: [NAME]: 24 June 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 subsequent [NAME] for permission to appeal should be made on Form RP PTA

1

Case Reference

: LON/00AN/F77/2025/0119 Property

Tenant

: Miss [APPELLANT]

Landlord : T [APPELLANT] of Objection : 8 January 2025

Type of [NAME] : Section 70, Rent Act 1977

Tribunal

: Mr [NAME] [NAME] of Reasons : 11 November 2025

_______________________________________________

DECISION

© CROWN COPYRIGHT 2023

REASONS

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2 Background

1. The property was previously the subject of a registered rent of £983.50 per month registered on 18 October 2022 and effective from the same date.

2. Following an [NAME] by the landlord the rent was registered on 11 December 2024 and effective from the same date at £999 per week. with an uncapped rent of £333.00 per week.

3. Following an objection from the Landlord 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. Summary reasons were issued on 24 June 2025 and a request for full reasons was not made until 5 November 2025.

Inspection

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

5. The property is described as a self-contained flat over commercial premises circa 1919 to 1944 with central heating and comprising 2 rooms, kitchen and bathroom/WC.

Evidence

6. The Tribunal has considered the written submissions provided by the [NAME]. The Tenant gave a detailed account of disrepair and advice from the Local Authority who were considering an HSSRA assessment for hazards supported by some photographs. The disrepair included details of cracking and dampness.

7. The Landlord wrote a letter of rebuttal but provided no supporting documents or photographs. The Landlord does not appear to have inspected for some time.

8. The tribunal considered both sets of representations and preferred those of the tenant given the greater detail and photographic evidence

The Law

9. When determining a fair rent in accordance with section 70 of the Rent Act 1977, the tribunal has regard to all the circumstances (other than personal circumstances) including the age, location and state of repair of the property.

10. In [COMPANY] v Chairman of the Greater Manchester etc. Committee (1995) 28 HLR 107 and [NAME] v [NAME] [1999] QB 92 the Court of Appeal emphasized that ordinarily a fair rent is the market rent for the property discounted for 'scarcity' (i.e.

3 that element, if any, of the market rent, that is attributable to there being a significant shortage of similar properties in the wider locality available for letting on similar terms - other than as to rent - to that of the regulated tenancy) and that for the purposes of determining the market rent, assured tenancy (market) rents are usually appropriate comparables. These rents may have to be adjusted where necessary to reflect any relevant differences between those comparables and the subject property.

11. The rent has been previously registered, and the Rent Acts (Maximum Fair Rent) Order 1999 therefore applies unless there are significant improvements made by the Landlord which increase the rent which would be registered by more than 15%. There are no such improvements in this case. The previous registration is therefore the starting point for assessing the new rent under the Order. The Order sets out the basis for calculating the new rent which is the increase in the Retail Prices Index from the last registration date plus 5% where the rent has previously been registered.

Determination and Valuation

12. In the absence of rental comparables provided by the parties the tribunal has relied on its own expert, general knowledge of rental values in the area. We consider that the open market rent for the property in the condition and with the amenities the market would expect would be in the region of £2075.00 per calendar month. From this level of rent we have made adjustments in relation to:

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

14. The full valuation is shown below:

Decision

15. The uncapped fair rent initially determined by the Tribunal, for the purposes of section 70, was £996.00 per calendar month. The capped rent for the property according to the provisions of the Rent Acts Fair rent PM Market rent 2,075.00 £ less condition & terms 40% 830.00 -£ adjusted rent 1,245.00 £ less scarcity off adj rent 20% 249.00 -£ Fair rent 996.00 £

4 (Maximum Fair Rent) Order 1999 is calculated at £1163.00 per calendar month. The calculation of the capped rent is shown on the decision form. In this case the lower rent of £996.00 per calendar month is to be registered as the fair rent or this property.

Chairman: [NAME]: 11 November 2025

Rights of appeal

By rule 36(2) of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013, the Tribunal is required to notify the parties about any right of appeal they may have.

If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber), then a written [NAME] for permission must be made to the First- tier Tribunal at the Regional Office which has been dealing with the case. The [NAME] should be made on Form RP PTA available at https://www.gov.uk/government/publications/form-rp-pta-[NAME]-for- permission-to-appeal-a-decision-to-the-upper-tribunal-lands-chamber

The [NAME] for permission to appeal must arrive at the Regional Office within 28 days after the Tribunal sends written reasons for the decision to the [NAME].

If the [NAME] is not made within the 28-day time limit, such [NAME] must include a request for an extension of time and the reason for not complying with the 28-day time limit; the Tribunal will then look at such reason(s) and decide whether to allow the [NAME] for permission to appeal to proceed, despite not being within the time limit.

The [NAME] for permission to appeal must identify the decision of the Tribunal to which it relates (i.e. give the date, the property and the case number), state the grounds of appeal and state the result the party [NAME] the [NAME] is seeking. Please note that if you are seeking permission to appeal against a decision made by the Tribunal under the Rent Act 1977, the Housing Act 1988 or the Local Government and Housing Act 1989, this can only be on a point of law.

5 If the First-tier Tribunal refuses to grant permission to appeal, a further [NAME] for permission may be made to the Upper Tribunal (Lands Chamber).