Tribunal Sets Fair Rent for Property at £192.69 Weekly

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. HAV/29UQ/F77/2025/0600

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

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

[NAME] [NAME] Judge Rai

Landlord [NAME]

Tenant Mr P Winter

1. The fair rent is £192.69 Per Week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 10 February 2025

3. The amount for services is n/a Per n/a

not applicable

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

n/a Per n/a

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).

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

8. For information only:

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 £215.00 per Week prescribed by the Order.

[NAME] of decision 10 February 2025

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 392.10

PREVIOUS RPI FIGURE Y 312.00

X 392.10 Minus Y 312.00 = (A) 80.10

(A) 80.1 Divided by Y 312.00 = (B) 0.2567

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

If yes (B) plus 1.075 = (C) n/a

If no (B) plus 1.05 = (C) 1.3067

Last registered rent* £164.50 Multiplied by (C) = £214.95 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £215.00

Variable service charge? NO If YES add amount for services n/a

MAXIMUM FAIR RENT = £215.00 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.

© CROWN COPYRIGHT 2025

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : HAV/29UQ/F77/2025/0600 Property : [ADDRESS] [POSTCODE] Tenant : Mr [COUNSEL] :

None

Landlord : [NAME] : None Type of Application :

Section 70 Rent Act 1977 (“the Act”) Determination by the First-Tier Tribunal of the fair rent of a property following an objection to the rent registered by the Rent Officer.

Tribunal Members : [NAME] [NAME] Judge C Rai Date of Objection : 10th December 2024 Date of Decision and Summary Reasons :

10th February 2025

DECISION

The Tribunal determines a rent of £192.69 per week with effect from 10th February 2025.

HAV/29UQ/F77/2024/0600 2 SUMMARY REASONS

Background 1. On 5th October 2024 the Landlord applied to the Rent Officer for the registration of a new rent for the property in accordance with Section 70 of the Rent Act 1977.

2. The rent was previously registered at £164.50 per week on 21st October 2021 following a determination by the Rent Officer.

3. On 18th November 2024 the Rent Officer registered a new rent of £213.50 per week to take effect from 18th November 2024.

4. On 10th December 2024 the Tenant objected to this new rent and the matter was referred to the First-tier Tribunal Property Chamber (Residential Property), formerly a Rent Assessment Committee. Inspection 5. The Tribunal did not inspect the property but considered this case based on the papers provided by the parties and information freely available on the internet. Evidence

6. The Tribunal has considered the written submissions provided by both the Tenant and the Landlord. Determination and Valuation 7. Having consideration to the comparable evidence provided and of 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 £1,200 per calendar month. Rents are normally expressed as a monthly figure. This includes a reduction to allow for the unusual situation of the property adjacent to the Sunnyside Community Hall with its many associated uses and to reflect its situation within a mixed use building.

8. Such a tenancy would normally include white goods, carpets and curtains/blinds to all be provided by the Landlord and the Landlord would also be responsible for internal repair and decoration.

9. In this case the property is not let in such condition or with white goods, carpets and curtains all supplied so some adjustments to the ‘open market rent’ are necessary. The Tribunal has also made adjustments for the [NAME] responsibility for internal decoration, partial night store heating, lack of double glazing, [NAME] improvements including provision of kitchen fittings and French doors.

HAV/29UQ/F77/2024/0600 3 10. The Tribunal noted the number of properties with similar accommodation within a reasonable distance of the property that are available to rent and decided that no deduction for scarcity should be made. 11. The full valuation is shown below: Full open market rent in good condition £1,200 Less deductions for:- Tenants’ liability for internal decoration

£55 [NAME] provision of white goods

£45 [NAME] provision of carpets and curtains

£65

Lack of central heating, double glazing/poor insulation £100 [NAME] provision of kitchen, improvements including French doors

£100

____

Total deduction per month

£365 TOTAL RENT PAYABLE PER MONTH

£835

12. Having made the adjustments indicated above, the Fair Rent determined by the Tribunal for the purpose of section 70 of the Rent Act 1977 was £835 per calendar month which equates to £192.69 per week.

13. The Section 70 Fair Rent determined by the Tribunal is below the maximum fair rent of £215 per week permitted by the Rent Acts (Maximum Fair Rent) Order 1999 details of which are shown on the rear of the Decision Notice and accordingly we determine that the limit set by the Order does not apply in this case.

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.

© CROWN COPYRIGHT 2025

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : HAV/29UQ/F77/2025/0600 Property : [ADDRESS] [POSTCODE] Applicant Landlord : [NAME] : None Respondent Tenant : Mr [COUNSEL] : None Type of Application :

Tribunal Members : [NAME] [NAME] Judge C Rai

Date of Inspection : None. Determined on the papers

Date of Decision

:

10th February 2025

DECISION

HAV/29UQ/F77/2025/0600

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Summary of Decision

On 10th February 2025 the Tribunal determined a Fair Rent of £192.69 per week with effect from 10th February 2025.

Background

1. On 5th October 2024 the Landlord applied to the Rent Officer for registration of a Fair Rent for the property.

2. The rent was previously registered on 21st October 2021 at a figure of £164.50 per week following a determination by a Rent Officer. This rent was effective from 21st October 2021.

3. A new rent was registered by the Rent Officer on 18th November 2024 at a figure of £213.50 per week. This new rent was effective from 18th November 2024. The rent determined was capped as being the maximum permitted at that date under the provisions of the Rent Acts (Maximum Fair Rent) Order 1999.

4. On 10th December 2024 the Tenant objected to the new rent and the matter was referred to the First-tier Tribunal Property Chamber (Residential Property), formerly a Rent Assessment Committee.

5. The Tribunal does not routinely consider it necessary and proportionate in cases of this nature to undertake inspections or hold Tribunal hearings unless either are specifically requested by either party or a particular point arises which merits such an inspection and/or hearing.

6. The Tribunal office issued directions on 8th January 2025 which informed the parties that the Tribunal intended to determine the rent on the basis of written representations subject to the parties requesting an oral hearing. No request was made by the parties for an inspection or a hearing.

7. Both parties were invited to include photographs and video within their representations if they so wished and were informed that the Tribunal might also consider information about the property available on the internet.

8. Both the Landlord and Tenant made submissions to the Tribunal. The Landlord stated that she had not sent a copy of her Statement to the Tenant.

9. These reasons address the key issues raised by the parties. They do not recite each and every point referred to either in submissions or during any hearing. However, this does not imply that any points raised, or documents not specifically mentioned, were disregarded. If a point or document was referred to in the evidence or submissions that was relevant to a specific issue, then it was considered by the Tribunal. The Tribunal

HAV/29UQ/F77/2025/0600

3 concentrates on those issues which, in its opinion, are fundamental to the application. The Law

10. When determining a fair rent the Tribunal, in accordance with the Rent Act 1977, section 70, had regard to all the circumstances including the age, location and state of repair of the property. It also disregarded the effect of (a) any relevant tenant's improvements and (b) the effect of any disrepair or other defect attributable to the tenant or any predecessor in title under the regulated tenancy, on the rental value of the property.

11. 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 emphasised

(a) that ordinarily a fair rent is the market rent for the property discounted for 'scarcity' (i.e. 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

(b) 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).

12. The Tribunal also has to have regard to the Rent Acts (Maximum Fair Rent) Order 1999 where applicable. Most objections and determinations of registered rents are now subject to the Order, which limits the amount of rent that can be charged by linking increases to the Retail Price Index. It is the duty of the Property Tribunal to arrive at a fair rent under section 70 of the Act but in addition to calculate the maximum fair rent which can be registered according to the rules of the Order. If that maximum rent is below the fair rent calculated as above, then that (maximum) sum must be registered as the fair rent for the subject property.

13. The tenancy is a statutory (protected) periodic tenancy and as such (not being for a fixed tenancy of 7 years or more) is subject to section 11 of the Landlord and Tenant Act 1985 which sets out the landlords statutory repairing obligations; the tenant is responsible for internal decorations.

The Property

14. From the information provided and available on the internet, the property can be described as a pre-1918 converted maisonette forming part of a detached building. The accommodation includes a Hall, Living Room, Kitchen/Diner, Study, WC and Utility/Storeroom all at ground level with 2 Bedrooms and a Bathroom at first floor level.

HAV/29UQ/F77/2025/0600

4 15. The property forms part of a larger original house that has been divided with part used commercially. Outside there are gardens and parking.

16. Heating is from a gas fire and some electric night store heaters. The property has no central heating system or double glazing and there is no Energy Performance Certificate available.

17. The property is on the edge of the village of Rusthall and faces onto Rusthall Common.

18. The property is situated adjacent to Sunnyside Community Hall.

Evidence and Representations

19. The original tenancy began in 1971.

20. In her representations to the Tribunal the Landlord provides a sketch plan of the accommodation and photographs of the outside of the building including the garden, and internal photographs showing ceiling repair and a new fitted gas fire.

21. The Landlord states that carpets, curtains and white goods are all provided by the Tenant and she lists various repairs carried out between August 2022 and August 2024 which include the provision of insulation above the kitchen and study.

22. The Landlord also provides examples of comparable properties available to rent in the area with asking rents of £1,350 to £1,850 per month.

23. The Tenant provided the Tribunal with a copy email dated 29th November 2004 from the Environmental Protection Team at Tunbridge Wells Borough Council advising that some sound insulation was recommended within the property.

24. The Tenant also provided photographs showing the fitted kitchen which he had installed, including appliances, together with photographs of a French door, fitted Shower and screen, fire surround and hearth, and some secondary double glazing all of which he had fitted.

25. The Tenant also states that the gardens include a shared access to the adjacent Sunnyside Hall which limits his privacy, that users of the Hall often encroach onto his parking area and that use of the Hall can lead to noise nuisance.

26. Although rents for residential property are usually expressed as a monthly figure the Rent Officer assessed an open market rent for the property of £323 per week, equating to £1,400 per month, and then made adjustments to arrive at a statutory Fair Rent.

HAV/29UQ/F77/2025/0600

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Valuation

27. The Tribunal first considered whether it felt able to reasonably and fairly decide this case based on the papers submitted only, with no oral hearing. Neither party had requested an inspection or hearing. Having read and considered the papers with helpful photographs it decided that it could do so.

28. In the first instance the Tribunal determined what rent the Landlord could reasonably be expected to obtain for the property in the open market if it were let today in the good condition that is considered usual for such an open market letting. Market rents are usually expressed as a figure per month and a letting would normally include floorings, curtains and white goods to all be provided by the Landlord.

29. In determining an ‘open market rent’ the Tribunal had regard to the evidence supplied by the parties and the Tribunal's own general knowledge of market rent levels in the area of Tunbridge Wells. Having done so it concluded that such a likely market rent would be £1,200 per calendar month. This includes an adjustment for the nuisance caused by the adjacent Hall and being located within a mixed-use building.

30. However, the property was not let in a condition considered usual for a modern letting at a market rent. Therefore, it was first necessary to adjust that hypothetical rent of £1,200 per calendar month particularly to reflect the fact that the carpets, curtains and white goods were all provided by the Tenants which would not be the case for an open market assured shorthold tenancy.

31. Further adjustments were necessary to reflect the Tenants liability for internal decoration, the improvements made by the Tenant and general condition.

32. The Tribunal therefore considered that this required a total deduction of £365 per month made up as follows:

[NAME] provision of carpets £50 [NAME] provision of curtains £15 [NAME] provision of white goods £45 [NAME] liability for internal decoration £55 Lack of central heating £50 Poor thermal insulation/ lack of double galzing £50 Tenants provision of kitchen £50 [NAME] improvements including French door £50

TOTAL per month £365

33. The Tribunal noted the number of properties available to rent in the area as advertised on Rightmove and Zoopla and concluded that there was no substantial scarcity element in the area of Tunbridge Wells.

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Decision

34. Having made the adjustments indicated above, the Fair Rent determined by the Tribunal for the purpose of section 70 of the Rent Act 1977 was accordingly £835 per month which equates to £192.69 per week.

35. The Section 70 Fair Rent determined by the Tribunal is below the maximum fair rent of £215 per week permitted by the Rent Acts (Maximum Fair Rent) Order 1999 and accordingly we determine that the lower sum of £192.69 per week is registered as the Fair Rent with effect from 10th February 2025.

Accordingly, the sum of £192.69 per week will be registered as the Fair Rent with effect from the 10th February 2025 this being the date of the Tribunal’s decision.

RIGHTS OF APPEAL

1. A person wishing to appeal this decision to the Upper Tribunal ([NAME]) must seek permission to do so by making written application by email to [EMAIL] to the First-tier Tribunal at the [NAME] which has been dealing with the case.

2. The application must arrive at the Tribunal within 28 days after the Tribunal sends to the person making the application written reasons for the decision.

3. If the person wishing to appeal does not comply with the 28 day time limit, the person shall include with the application for permission to appeal a request for an extension of time and the reason for not complying with the 28 day time limit; the Tribunal will then decide whether to extend time or not to allow the application for permission to appeal to proceed.

4. The application for permission to appeal must identify the decision of the Tribunal to which it relates, state the grounds of appeal, and state the result the party making the application is seeking.