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AllowedFirst-tier Tribunal (Property Chamber)·

Tribunal Sets Fair Rent Below Maximum Fair Rent

Case No.

📌 In brief

The First-tier Tribunal (Property Chamber) decided on a fair rent of £105 per week for a tenant, which is below the maximum fair rent allowed under the law.

⚖️ Legal holding

A tenant is entitled to a fair rent set by the Tribunal, provided it does not exceed the maximum fair rent as calculated under the Rent Acts (Maximum Fair Rent) Order 1999.

Topics

fair rentmaximum fair rentrent acts

Provisions

Rent Act 1977 Schedule 11Rent Acts (Maximum Fair Rent) Order 1999

📖 Technical summary

The Tribunal sets a fair rent of £105 per week, below the maximum fair rent of £142 per week.

📜 Headnote Official document

The First-tier Tribunal (Property Chamber) set a fair rent of £105 per week for a tenant, below the maximum fair rent of £142 per week, as calculated under the Rent Acts (Maximum Fair Rent) Order 1999.

📚 Full judgment Official document

OUTCOME: Allowed

FR24 First-tier Tribunal – Property Chamber File Ref No. MAN/00BU/F77/2023/0002

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 3 [ADDRESS] [POSTCODE]

[NAME] Mr [RESPONDENT] [NAME]

Landlord [APPELLANT]

Tenant Mr [APPELLANT]

1. The fair rent is £105.00 Per Week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 27 July 2023

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.

The fair rent to be registered is not limited by the Rent Acts (Maximum Fair Rent) Order 1999, because it is below the maximum fair rent of £142.00 per week prescribed by the Order.

[NAME] of decision 27 July 2023

FR24 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 375.3

PREVIOUS RPI FIGURE Y 294.3

X 375.3 Minus Y 294.3 = (A) 81.0

(A) 81.0 Divided by Y 294.3 = (B) 0.275

First application for re-registration since 1 February 1999: NO

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.325

Last registered rent* £107 Multiplied by (C) = 141.80 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £142.00

Variable service charge NO If YES add amount for services

MAXIMUM FAIR RENT = £142.00 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.

📊 How courts decide similar cases

Among 12 similar decisions in this collection:

A snapshot of this collection — not a prediction of your case's outcome.

⚖️ What tends to weigh in cases like this

✅ Tends to be accepted

  • The tenant is entitled to a fair rent that reflects market conditions.
  • The tenant is entitled to a fair rent calculation based on the Retail Price Index (RPI).
  • The tenant is entitled to a fair rent that reflects the property's condition and market conditions.
  • The tenant is entitled to a fair rent set by the Tribunal under the Rent Act 1977.
  • The tenant is entitled to a fair rent determined by the Tribunal using the Maximum Fair Rent formula.

Patterns observed in similar cases in this collection — every case is unique.

❓ Frequently asked questions

What did this decision decide?

The Tribunal set a fair rent of £105.00 per week for an assured tenancy.

What was the dispute about?

The dispute was about the fair rent for an assured tenancy, specifically whether it should be set above or below the maximum fair rent threshold.

How did the court decide, and why?

The court decided to set the fair rent at £105.00 per week, as it was below the maximum fair rent threshold of £142.00 per week.

Which laws or rules were applied?

The Rent Act 1977 and its Schedule 11 were applied to determine the fair rent.

What was the argument that mattered most?

The argument that mattered most was the calculation of the fair rent using the Retail Price Index and the maximum fair rent threshold.

Was the decision for or against the person who brought the case?

The decision was for the person who brought the case, as the fair rent was set below the maximum fair rent threshold.

What does this mean for someone in a similar situation?

For someone in a similar situation, the decision means that their fair rent can be set below the maximum fair rent threshold if the calculations support it.

What evidence or documents mattered?

The evidence and documents that mattered included the calculation of the fair rent using the Retail Price Index and the relevant provisions of the Rent Act 1977.

Official source: First-tier Tribunal (Property Chamber) — headnote and full judgment reproduced from the court's public records. View on the official source ↗Summary, holding, technical summary and questions: produced by Artificial Intelligence based on the official headnote and judgment. These are VadeLab’s own material and are not the work of the Court.This decision was issued by the First-tier Tribunal (Property Chamber) and is reproduced from its published records. VadeLab is not affiliated with, and this page is not endorsed by, that court or tribunal.