Tribunal Sets Fair Rent for Property Based on Rent Act 1977

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. HAV/29UH/F77/2025/0639

Notice of the Tribunal [NAME] 1977 Schedule 11

Address of Premises The Tribunal members were: 17 [ADDRESS], [POSTCODE]

[NAME] [NAME] Mr [RESPONDENT]

Landlord [RESPONDENT]

Tenants Mr [RESPONDENT] & Mrs [NAME]

1. The fair [NAME] is £180.50 Per Week (To exclude Water Rates and Council Tax but to include any amounts in paragraphs 3 & 4)

2. The effective date is 12 January 2026

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 [NAME] allowance is

n/a Per n/a

not applicable

5. The [NAME] 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 £201.00p Per Week including £Nil per Week for services.

[NAME] [NAME] [NAME] of decision 12 January 2026

FR27 [NAME] FIGURE X 405.6

PREVIOUS RPI FIGURE Y 317.7

X 405.6 Minus Y 317.7 = (A) 87.9

(A) 87.9 Divided by Y 317.7 = (B) 0.27668

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) 1.32668

Last registered [NAME]* £136.00 Multiplied by (C) = £180.43 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £180.50

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

[NAME] = £180.50 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].

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FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case reference : HAV/29UH/F77/2025/0639

Property : 17 [ADDRESS], [POSTCODE]

Applicant landlord : [APPELLANT] : [NAME] [COUNSEL] [NAME], [COMPANY]

Respondent tenants : Mr [COUNSEL] E [COUNSEL] and Mrs [COUNSEL] : None

Type of application : Determination of a [NAME] 70, [NAME] 1977

Tribunal members : Mr [NAME] [NAME] [NAME] Mr [NAME] of consideration : 12 January 2026

Date of decision : 12 January 2026

DECISION

© CROWN COPYRIGHT 2026

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Decision of the Tribunal On 1 2 J a n u a r y 2 0 2 6 the Tribunal determined a [NAME] of £180.50p (One Hundred and Eighty Pounds and Fifty Pence) Per Week to take effect from 12 January 2026. Background 1. On 2 September 2025 the landlord’s Agent ([NAME] [RESPONDENT] [NAME] of [COMPANY]) submitted an application for re-registration of [NAME] (‘RR1’) to the [NAME] to register a fair [NAME] of £1,000 per Calendar Month for 17 [ADDRESS], [POSTCODE] (‘the property’).

2. Paragraph 7 of the RR1, ‘Include any amount for services and/or furniture provided by the landlord…’ is blank. However, in paragraph 8 it is confirmed that no services are provided under the tenancy. Similarly, in paragraph 9, it is confirmed that no furniture is provided under the tenancy.

3. This was an application to re-register the fair [NAME] from its previous registration of [NAME] for the property by the [NAME] of £136.00 per Week, effective from 18 January 2022. In its January 2022 decision, under Remarks, the fair [NAME] to be registered is the maximum fair [NAME] as prescribed by the [NAME] ([NAME]) Order 1999. The uncapped [NAME] was £157.00 per Week.

4. At paragraph 12 of the RR1, the [NAME] now is stated as £588.88 per Calendar Month.

5. A new [NAME] of £181.50 per Week was registered by the [NAME], effective from 23 October 2025. The amounts for (d) Amount for fuel charges (excluding heating and lighting of common parts) not counting for [NAME] allowance and for (e) Noted amount attributable to services are both blank. The uncapped [NAME] is stated as £182.84 per Week.

6. In a letter dated 3 November 2025 to The Valuation Office Agency (‘the VOA’) (sent to NSO Helpdesk (VOA)) Mrs [NAME] submitted the tenants’ objection to the new [NAME] registered and the matter was referred to the First-Tier Tribunal Property Chamber (Residential Property), formerly a [NAME].

7. The Tribunal issued Directions dated 26 November 2025. The Tribunal does not consider it necessary and proportionate in cases of this nature neither to undertake an inspection, nor to hold a Tribunal hearing unless either are specifically requested by either party or a particular point arises which merits such an inspection and/or hearing.

8. The Tribunal in its Directions informed the parties that, unless either party objected, the Tribunal intended to determine the [NAME] on the papers (written representations), paragraph 5.

9. Similarly, the parties were informed the Tribunal will not inspect the property but will seek to view it on the internet; and goes on to say if it considers it necessary, it may carry out an external inspection, paragraph 6.

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10. The parties were directed to complete and return their [NAME] (‘Statement’) to form their statement of case, within specific time limits, paragraphs 8 – 12 inclusive. The Statement provides for photographs to be attached, to assist the Tribunal to understand the case and to help the party to present the issues.

11. Whereas the landlord’s representative has not submitted a Statement, Mrs [COUNSEL] on behalf of the tenants has done so. Mrs [NAME] has been given in accordance with the Tribunal’s Directions. The Property 12. [ADDRESS] is an end of terrace, two-story house with a plaque on the front elevation which reads ‘[ADDRESS] 1902’. Originally it would have been of traditional brick construction with a pitched roof. Subsequently, the elevations have been rendered and the roof is artificial slate. 13. [ADDRESS] runs in a west to east direction in between The Landway and [ADDRESS]. Junction 7 of the M20 is to the northwest, [ADDRESS] is to the southwest and the nearest railway station is Bearsted to the northeast. Number 17 is on the northern side of the road.

14. The property is described in the [NAME] as a terraced house, circa 1800-1918, without central heating, with accommodation comprising: ground floor – two rooms and one kitchen, first floor – two rooms and one bathroom/WC, and outside – stores and garden. The Tenancy Agreement 15. The Tribunal has not been provided with a copy of the tenancy agreement, although from the RR1 it is understood to have commenced on 24 May 1971.

16. The tenant is responsible for the payment of Council Tax and Water Rates. Section 11 of the Landlord and Tenant Act 1985 (‘the 1985 Act’) applies. The tenant is responsible for internal decorations. The landlord is responsible for repairs and external decorations. Neither furniture nor any services are provided under the tenancy. [NAME]

17. The Tribunal has considered the case de novo (from anew) and has limited its considerations to reach its decision to those points in the papers relevant to the determination of the fair [NAME].

18. In addition to the RR1 submitted by [NAME] [NAME], Mrs [NAME] submitted her Statement on 23 December 2025. Mrs [NAME] confirms the information in the [NAME] is accurate, other than the [NAME].

19. Mrs [NAME] description of the property aligns with that of the [NAME]: ground floor – lounge, dining room and kitchen, first floor – two bedrooms and one bathroom/WC.

20. Under ‘Features’, Mrs [NAME] says the property has off-street parking and private gardens.

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21. Under ‘Improvements’, Mrs [NAME] refers to the consultation with the [NAME] at the property on 10 October 2025. Mr and Mrs [RESPONDENT] attended the consultation. The landlord did not send a representative. Mrs [COUNSEL] says ‘’The [NAME] report of the visit on 10/10/25 contains inaccuracies. There are no new taps in the bathroom. There is no secondary glazing. The screeded kitchen floor was done by the tenant in appx 1988. There is no replacement rear door. No new sash cords anywhere [sic].’’ 22. Under ‘Disrepair/Defects’ Mrs [NAME] says ‘‘Sitting room – windows do not open / dining room – windows do not open + unsafe floorboards / front bedroom – damp patch on ceiling / front bedroom windows do not open / back bedroom windows do not open / bathroom not updated since 1971 / kitchen not updated since 1988.’’ 23. Under ‘Any Other Comments’ Mrs [NAME] says ‘’Outside has big cracks running the vertical length of house / [NAME] increased by 33% despite limited improvements / back yard floods in rainy weather.’’ 24. Mrs [NAME] makes no submissions of her assessment of the rental value, whether the [NAME] is to apply or not, and whether demand exceeds supply for the property.

25. The Tribunal has also been provided with a copy of the tenants’ letter to the [NAME] officer dated 21 September 2025 in which the consultation is requested. In their letter, Mr and Mrs [NAME] refer to: a few bad repairs in March 2023, a bad leak in the kitchen in January 2024, and a Gas inspection on 1 September 2025. The Law When determining a fair [NAME], the Tribunal, in accordance with the [NAME] 1977 (‘the Act’), 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 any other defect attributable to the tenant or any predecessor in title under the regulated tenancy, on the rental value of the property. [COMPANY] v [NAME] of the Greater Manchester & [NAME] (1995) 28 HLR 107 and [NAME] v [NAME] [1999] QB 92 the Court of Appeal emphasised: (a) that ordinarily a fair [NAME] is the market [NAME] for the property discounted for 'scarcity' (i.e. that element, if any, of the market [NAME], 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 [NAME] - to that of the regulated tenancy) and (b) that for the purposes of determining the market [NAME], assured tenancy (market) rents are usually appropriate comparable lettings. (These rents may have to be adjusted where necessary to reflect any relevant differences between those comparable lettings and the subject property).

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26. Section 72A - Amounts attributable to services: In order to assist authorities to give effect to the housing benefit scheme under Part VII of the Social Security Contributions and Benefits Act 1992 or to assist the Secretary of State in the administration of universal credit, where a [NAME] is registered, there shall be noted on the register the amount (if any) of the registered [NAME] which, in the opinion of the [NAME] officer or appropriate tribunal, is fairly attributable to the provision of services, except any amount which is negligible in the opinion of the officer or, as the case may be, the tribunal.

27. The Tribunal is also to have regard to the [NAME] ([NAME]) Order 1999 (‘the Order’), where applicable. Most objections and determinations of registered rents are now subject to the Order, which limits the amount of [NAME] that can be charged by linking increases to the Retail Price Index (‘RPI’). It is the duty of the Property Tribunal to arrive at a fair [NAME] under section 70 of the Act, but in addition to calculate the maximum fair [NAME] which can be registered according to the rules of the Order.

28. If that maximum [NAME] is below the fair [NAME] calculated as above, then that (maximum) sum must be registered as the fair [NAME] for the subject property.

29. Section 2(7) of the Order is as follows, ‘This article does not apply in respect of a dwelling-house if because of a change in the condition of the dwelling-house or the common parts as a result of repairs or improvements (including the replacement of any fixture or fitting) carried out by the landlord or a superior landlord, the [NAME] that is determined in response to an application for registration of a new [NAME] under Part IV exceeds by at least 15% the previous [NAME] registered or confirmed.’ 30. 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 landlord’s statutory repairing obligations; the tenant is responsible for internal decorations. Considerations and Valuation 31. Having reviewed the papers, the Tribunal first considered whether it felt able to decide this case reasonably and fairly based on the papers submitted only, with neither an inspection, nor an oral hearing. Having read and considered the papers the Tribunal decided it could do so.

32. In the first instance the Tribunal determined the market [NAME] per calendar month (per week) the landlord could reasonably expect to receive on the valuation date, 12 January 2026, on the assumptions the property was in good condition, with carpets (flooring coverings), curtains and white goods provided by the landlord.

33. The Tribunal has been provided with a screen shot of the [NAME]’s markets rents of terraced houses with three and four rooms in the ME14 postcode. The dates range from 1 November 2024 to 7 October 2025 with rental values from £161.54 per Week up to £357.69 per Week. The

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Tribunal has also been provided with a screen shot of the [NAME]’s valuation of the property to the uncapped [NAME] of £182.84 per Week, in which the market [NAME] is £288.46 per Week (to equal £15,000 per Annum or £1,250 per Calendar Month).

34. To determine the market [NAME], the Tribunal notes that neither party has provided any valuation evidence. The Tribunal has considered the screen shots from the VOA, and its own general knowledge of market rents in the Maidstone area.

35. Having consulted the National Energy Performance Register online, the Tribunal noted the property to have an Energy Performance Certificate (‘EPC’) Rating of ‘G’ and a recorded floor area of 77 M2 (square metres).

36. Taking the above into consideration and of its own general knowledge of market rents in the area, at the valuation date, the Tribunal determined the market [NAME] of the property to be £1,250 per calendar month, before any adjustment(s) which it deemed appropriate to be applied.

37. From the submissions given by Mrs [NAME] in her Statement and her letter to the [NAME] dated 21 September 2025 and the information provided by the [NAME], the Tribunal has determined adjustments are required to be applied to the market [NAME] to reflect: (1) no central heating, (2) no double glazing (poor thermal insulation), (3) the tenants provision of carpets (floor coverings) and curtains, (4) the tenants provision of the White Goods, (5) the tenants internal decorations’ obligation, (6) the unmodernised kitchen, (7) the unmodernised bathroom/WC, and (8) general disrepair of the property.

38. The Tribunal concluded a deduction in aggregate of £380 per calendar month be applied to the market [NAME], made up of as follows:

No Central Heating £100 No Double Glazing (poor thermal insulation) £25 No Carpets (floor coverings) and Curtains £25 White Goods £30 Internal decorations’ obligation £25 An unmodernised kitchen £75 An unmodernised bathroom/WC £50 General disrepair £50 £ Per Calendar Month £380 39. £1,250 per calendar month minus £380 per calendar month to equal £870 per calendar month (to equal £10,440 per annum or £200.77p per Week).

40. Turning to the question of scarcity, that is whether the demand for such properties exceeds the supply, neither party has given any evidence on the subject. The [NAME] has made a deduction from its adjusted market [NAME] of 5% for the same. With its general knowledge of the lettings market in the area, the Tribunal has concluded there is no adjustment required for scarcity in this registration of fair [NAME].

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Accordingly, the uncapped fair [NAME] is £201.00p per Week, when rounded up to the nearest 50 (Fifty) pence.

41. The Tribunal is required to calculate the maximum fair [NAME] prescribed by the Order in which the sum attributable to services is ‘nil’. The Tribunal has calculated the maximum fair [NAME] prescribed by the Order to equal £180.50p (One Hundred and Eighty Pounds and Fifty Pence) per Week, when rounded up to the nearest 50 (Fifty) pence. Decision 42.

Accordingly, the Tribunal determined the [NAME] of the property to be re-registered at £180.50p (One Hundred and Eighty Pounds and Fifty Pence) Per Week, to take effect from 12 January 2026.

43. The capping provisions of the [NAME] ([NAME]) Order 1999 do apply because the [NAME] determined at paragraph 39 above is greater than that prescribed by the Order.

RIGHTS OF APPEAL

1. A person wishing to appeal this decision to the Upper Tribunal (Lands Chamber) must seek permission to do so by making a written application by email to [EMAIL] to the First-tier Tribunal at the Regional office 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 days’ 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 days’ 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.