Tribunal Sets Fair Rent for Tenancy Agreement

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. LON/00AP/F77/2025/0120

Notice of the Tribunal [NAME] 1977 Schedule 11

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

Judge Tagliavini Mrs S [COMPANY]

Tenant Ms [APPELLANT]

1. The fair [NAME] is £195.65 Per week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 3 June 2025

3. The amount for services is £9.15 Per week

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

Per

not applicable

5. The [NAME] is 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 £241.83 per week.

(b) The fair [NAME] to be registered is not limited by the [NAME] ([NAME]) Order 1999, because it is below the maximum fair [NAME] per week of £237.00 including per £15.10 per week for services (variable) prescribed by the Order.

Chairman Judge Tagliavini

Date of decision 3 June 2025

FR27 [NAME] FIGURE X 402.2

PREVIOUS RPI FIGURE Y 317.7

X 402.2 Minus Y 317.7 = (A) 84.5

(A) 84.5 Divided by Y 317.7 = (B) 0.26597

First application for re-registration since 1 February 1999 NO

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.31597

Last registered [NAME]* 141.50 Multiplied by (C) = 186.21 *(exclusive of any variable service charge)

Rounded up to nearest 50p = 186.50

Variable service charge Yes If YES add amount for services 9.15

[NAME] = £195.65 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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Case Reference

: LON/00AP/F77/2025/0120

Property : [ADDRESS] [POSTCODE]

Tenant

: Ms [APPELLANT]

Landlord : [COMPANY] of Objection : 4 February 2025

Type of Application : Section 70, [NAME] 1977

Tribunal

: Judge Tagliavini

Mrs S Redmond MRICS

Date

: 3 June 2025

_______________________________________________

DECISION

The sum of £195.65 per week (including variable service charges of £9.15) will be registered as the fair [NAME] with effect from 3 June 2025 being the date the Tribunal made the Decision. ____________________________________

© CROWN COPYRIGHT 2023

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

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SUMMARY REASONS

Background

1. Following an objection from the Tenant to the determination of a fair [NAME] by the [NAME], the Tribunal has made a determination under the provisions of the [NAME] 1977.

Inspection

2. The Tribunal did not inspect the property but considered this case on the basis of the papers.

Evidence

3. Neither party provided the tribunal with written submissions in respect of this appeal although the tribunal had regard to the information provided previously.

Determination and Valuation

4. Having consideration of the comparable evidence proved by the parties and our own expert, general knowledge of rental values in the area, we consider that the open market [NAME] for the property in its current condition, would be in the region of £400 per week. From this level of [NAME] we have made adjustments of 25% in relation to:

Terms of tenancy (decorations) Disrepair Lack of white goods Lack of curtains and carpets

Adjusted market [NAME]: £290.85 per week (net of service charges of £9.15)

5. The Tribunal has also made an adjustment of 20% for scarcity which provides a weekly [NAME] of £232.68. To this is added service charges of £9.15 per week.

6. The full valuation is shown below:

[NAME]

£400 per week

Less

25% £100

[NAME] £300

AMR net of service charge £290.85

Less Scarcity 20% £58.17

3 Net AMR adjusted for scarcity £232.68

Plus service charges £9.15

[NAME]:

£241.83 per week

7. The Tribunal determines a [NAME] of £241.83 per week.

Decision

8. The uncapped fair [NAME] initially determined by the Tribunal, for the purposes of section 70, was £241.83 per week including £9.15 variable service charge. The capped [NAME] for the property according to the provisions of the [NAME] ([NAME]) Order 1999 is calculated at £195.65 per week.

9. The calculation of the capped [NAME] is shown on the decision form. In this case the lower [NAME] of £195.65 per week is to be registered as the fair [NAME] for this property.

Chairman: Judge Tagliavini

Date: 3 June 2025

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