Tribunal Sets Fair Rent for Residential Tenancy

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. LON/00AN/F77/2025/0220

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 4 [ADDRESS] [POSTCODE]

Judge S [NAME] [NAME]

Landlord [COMPANY]

[APPELLANT] [NAME]

1. The fair rent is £268.96 Per WEEK (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 30/09/25

3. The amount for services is 0 Per

negligible/not applicable

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

0 Per

negligible/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)/ do not apply because 1st registration/15% exemption.

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 £ 299.00.

[NAME] of decision 30/09/25

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 407.7

PREVIOUS RPI FIGURE Y 375.3

X 407.7 Minus Y 375.3 = (A) 32.4

(A) 32.4 Divided by Y 375.3 = (B) 0.086

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) 1.136

Last registered rent* £263.00 Multiplied by (C) = £298.86 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £299.00

Variable service charge NO If YES add amount for services

MAXIMUM FAIR RENT = £299.00 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.

1

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : LON/00AN/F77/2025/0220 Property : 4 [ADDRESS] [POSTCODE] Applicant: [redacted] Respondent : [redacted] Determination of a Fair Rent under section 70 of the Rent Act 1977 Tribunal Members : Judge S [NAME] [NAME] and Venue of Meeting

: 30 [ADDRESS] [POSTCODE] Date of Written Reasons : 30 September 2025

DECISION

Decision of the Tribunal Background

1. On 02 May 2025, the rent officer received an application from the landlord to register a rent for 4 [ADDRESS] [POSTCODE] (“the property”). A rent of £263 uncapped per week had previously been registered on 24 July 2023 with effect from 24 July 2023. On 30 May

2 2025, the rent officer determined the rent at £269.03 per week with effect from 24 July 2025.

2. Subsequently, the rent officer received an objection to the rent registered from the landlord.

3. The rent officer duly referred the objection to the Tribunal under paragraph 6 of schedule 11 to the Rent Act 1977.

4. The landlord is responsible for repairs and external decorations. s.11 Landlord and [APPELLANT] 1985 applies. The [APPELLANT] is responsible for internal decorations.

5. Neither party requested an inspection or a hearing.

6. The tenancy began in 1971.

The law

7. The Tribunal proceeded to determine what would be a fair rent in accordance with the terms of section 70 of the Rent Act 1977.

Valuation

8. The property consists of a converted flat in a pre-1918 building. There is no central heating. It consist of a cellar, 2 rooms, kitchen/diner, one w/c, on bathroom and a garden. It is let unfurnished.

9. The valuation officer used an open market rent of £1,850 per month before deductions. There is evidence of similar rents in the area including one elsewhere in [ADDRESS] (this is a modern garden flat but very small being only 273 sq ft) and where the quoted price is £1,900 per month. There is also a flat in [ADDRESS] (modern 1st floor 1 bed with a balcony 549 sq ft) which has been let and where the quoting price was £2,000 per month.

10. The range of values for 1 bedroom flats in the immediate vicinity is £1,900 to £2,000 per month based on quoted rents, so probably £1,850 to £1,950 for actual rents.

11. It is not clear how big the property is. Given that it is a converted flat rather than purpose built, we have taken the lower end of the rental range.

12. So, based on our knowledge and experience, a comparable property let on an assured shorthold tenancy in this neighbourhood would attract a rent of £1,850 per month.

13. The Tribunal considered that the following deductions should be made:

3 (1) 5% to reflect that no white goods were provided by the landlord; (2) 5% to reflect that there is no double glazing; (3) 10% to reflect that the condition of the kitchens and bathroom when un- modernised were below that to be expected in an assured shorthold tenancy. (4) 10% to reflect that there is no central heating provided by the landlord.

14. The deduction of 30% from the figure of £1,850 per month, leaves an adjusted market rent of £1,295 per month. This equates to £298.85 per week.

15. Again, based on our knowledge and experience of properties in different areas of Greater London, and in particular SW6, we would deduct 10% for scarcity. This gives a figure of £268.96 per week.

Capping

16. The fair rent to be registered is not limited by the Rent Acts (Maximum Fair Rent) Order 1999.

The decision

17. The Tribunal therefore concluded that the fair rent would be £268.96 per week.

18. This rent will take effect from 30 September 2025, being the date of the decision.

[NAME]: 30 September 2025

ANNEX - RIGHTS OF APPEAL

If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber) then a written application for permission must be made to the First-tier Tribunal at the Regional office which has been dealing with the case.

i. The application for permission to appeal must arrive at the Regional office within 28 days after the Tribunal sends written reasons for the decision to the person making the application.

ii. If the application is not made within the 28 day time limit, such application 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 application for permission to appeal to proceed despite not being within the time limit.

iii. The application 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 making the application is seeking.

4