Tribunal Sets Fair Rent for Property Under Rent Act 1977

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. HAV/29UB/F77/2024/0505

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

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

[NAME] Mr [APPELLANT]

Landlord [COMPANY]

Tenant Mr [APPELLANT]

1. The fair rent is £198.50 Per week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 21 October 2024

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:

(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 £206.00 per week.

[NAME] of decision 21 October 2024

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE Sept 2024 X 388.60

PREVIOUS RPI FIGURE Sept 2019 Y 291.00

X 388.60 Minus Y 291.00 = (A) 97.60

(A) 97.60 Divided by Y 291.00 = (B) 0.3354

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) 1.3854

Last registered rent* £143.00 Multiplied by (C) = £198.11 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £198.50

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

MAXIMUM FAIR RENT = £198.50 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.

© CROWN COPYRIGHT 2024

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : HAV/29UB/F77/2024/0505 Property : [ADDRESS] [POSTCODE] Tenant : Mr [COUNSEL] :

None

Landlord : [COMPANY] : 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 : Mr [NAME] Mr [NAME] S [NAME] of Objection : 16th August 2024 Date of Summary Reasons :

21st October 2024

DECISION

The Tribunal determines a rent of £198.50 per week with effect from 21st October 2024

HAV/29UB/F77/2024/0505

2

SUMMARY REASONS

Background 1. On 26th June 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 £143 per week on 24th September 2019 following a determination by the Rent Officer.

3. On 8th August 2024 the Rent Officer registered a new rent of £178 per week for the property to take effect from the 24th September 2024.

4. On 16th August 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 the Tenant and the Landlord. Determination and Valuation 7. Having consideration to the comparable evidence provided by the parties 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 tenable condition would be £1,400 per calendar month. Market rents are usually quoted as a monthly figure.

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. In particular the Tribunal has made the adjustments for white goods, flooring and curtains, internal decoration liability, partial central heating, dated kitchen and bathroom fittings, location and antisocial behaviour.

10. The Tribunal noted the numbers 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:

HAV/29UB/F77/2024/0505

3 Full monthly open market rent in good condition £1400 Less deductions for:- Tenants’ liability for internal decoration

£50 Tenant’s provision of white goods

£30 Tenant’s provision of carpets and curtains

£75 Partial central heating

£50 Dated kitchen and bathroom £150 Location £150

____

Total deduction per month £505 TOTAL RENT PAYABLE PER MONTH £895 TOTAL RENT PAYABLE PER WEEK £206.54

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 £206.54 per week.

13. The Section 70 Fair Rent determined by the Tribunal is above the maximum fair rent of £198.50 per week permitted by the Rent Acts (Maximum Fair Rent) Order 1999.

Accordingly, the lower amount of £198.50 is to be registered as the Fair Rent with effect from 21st October 2024, this being the date of the Tribunal’s decision.

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.