Tribunal Sets Fair Rent for Residential Tenancy

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. FR/LON/00BD/F77/2025/0092

Notice of the Tribunal [NAME] 1977 Schedule 11

Address of Premises The Tribunal members were 37 [ADDRESS], [POSTCODE] Tribunal Judge [NAME]

Landlord [NAME]

Tenant Mrs. [APPELLANT]. F. [APPELLANT]

1. The fair [NAME] is £1,536 Per month (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 12 May 2025

3. The amount for services is N/A Per

not applicable

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

N/A Per

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

7. Details (other than [NAME]) where different from [NAME] entry

[NAME] was not inspected

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 £ ............................ per week ......................... including £ ...................... per ................................. for services (variable).

(b) The fair [NAME] to be registered is not limited by the [NAME] ([NAME]) Order 1999, because it is below the maximum fair [NAME] of £ 1,546 per month including £ ......................................... per ................................. for services (variable) prescribed by the Order. Trib

Chairman Tribunal Judge Sarah McKeown Date of decision 12 May 2025

FR27 [NAME] FIGURE X 395.3

PREVIOUS RPI FIGURE Y 360.4

X 395.3 Minus Y 360.4 = (A) 34.9

(A) 34.9 Divided by Y 360.3 = (B) 0.[PHONE]

First application for re-registration since 1 February 1999 NO

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.14686372

Last registered [NAME]* £1348 Multiplied by (C) = £1,545.97 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £1,546

Variable service charge NO If YES add amount for services

[NAME] = £1,546 Per month

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 : FR/LON/00BD/F77/2025/0092 Property : 37 [ADDRESS], [POSTCODE] Tenant : Mrs. [APPELLANT]. F. [APPELLANT] Landlord : [APPELLANT] of Application : Determination of a [NAME] 70, [NAME] 1977

Tribunal Members : Judge [NAME] and venue of Consideration : 10 [ADDRESS] [POSTCODE]

Date of Summary Reasons : 12 May 2025

DECISION The sum of £1,536 per calendar month will be registered as the fair [NAME] with effect from 12 May 2025, being the date the Tribunal made the Decision.

SUMMARY REASONS

The Background 1. On 18 December 2024 the [NAME] registered a [NAME] of £1,440 per calendar month, effective from 18 January 2025. Following an

2 objection from the landlord to the determination of a fair [NAME] by the [NAME], the Tribunal has made a determination under the provisions of the [NAME] 1977.

2. The last registered fair [NAME] was £1,348 per calendar month, effective from 18 January 2023.

3. Directions were issued on 20 March 2025 by the Tribunal. The parties were directed to provide reply forms, and invited to submit any relevant information and submissions.

4. The Tribunal did not inspect [NAME] but considered this case on the basis of the papers provided by the parties and having regard to its own knowledge, expertise and online research.

Evidence 5. From the information provided, it appears that 37 [ADDRESS], [POSTCODE] (“[NAME]”) is a self-contained purpose-built flat, on the ground floor with full central heating, comprising one living room, two bedrooms, one kitchen and a bathroom/WC (as set out on the floor plan provided by the landlord). There is use of a private garden at the rear. [NAME] is let on a monthly tenancy which commenced on 25 March 1970.

6. The Tribunal has considered the representations from the landlord. In summary, these says that the [NAME] increase is not in line with a recent [NAME] registration carried out for a similar property and the deduction made from the market [NAME] may be excessive (although it is said that I was not clear how the figure was reached).

7. The tenancy is subject to s.11 Landlord and Tenant Act 1985. Council Tax is paid for by the tenant.

8. No services or furniture has been provided by the Landlord. No improvements are said to have been carried out since the last [NAME] registration. There are no allegations of disrepair.

9. Neither party has submitted any comparable evidence.

Determination and Valuation

3 10. Having consideration of the evidence and our own expert, general knowledge of [NAME] values in the area, we consider that the open market [NAME] for [NAME] in a good tenantable condition would be in the region of £2,400 per calendar month. From this level of [NAME] we have made adjustments in relation to: (a) No services provided by the landlord; (b) The repairing obligations as set out above – tenant responsible for internal decorations; (c) No furniture provided by the Landlord; (d) White goods, curtains, carpet and floor coverings provided by the Tenant (e) No double-glazing.

11. The full valuation is shown below: Per month

[NAME]

£2,400

Less deductions as above

20% -£480

[NAME]

£1,920

Less scarcity

20% -£384

[NAME]

£1,536

12. The Tribunal therefore determines a [NAME] of £1,536 per calendar month for the purposes of s.70.

Decision

4 13. The uncapped fair [NAME] initially determined by the Tribunal for the purposes of s.70 was £1,536 per calendar month. The capped [NAME] for [NAME] according to the provisions of the [NAME] ([NAME]) Order 1999 is calculated at £1,546 per calendar month. The calculation of the capped [NAME] is shown on the decision form. In this case, the lower [NAME] of £1,536 per calendar month is to be registered as the fair [NAME] for this property. Name: Judge Sarah McKeown Date: 12 May 2025

APPEAL PROVISIONS

These summary reasons are provided to give the parties and 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 subsequent application for permission to appeal should be made on Form RP PTA.