Tribunal Sets Fair Rent for Tenancy in London

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. LON/00AE/F77/2024/0230

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

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

[NAME]

Landlord [APPELLANT] c/o [NAME]

Tenant Miss [APPELLANT]

1. The fair rent is 3036 Per Quarter (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 24th September 2024

3. The amount for services is 251.32 Per Quarter

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

Per

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

The property has two rooms, kitchen, bathroom/wc. Gas central heating installed by tenant.

8. For information only:

(a) The fair rent to be registered is not limited by the Rent Acts (Maximum Fair Rent) Order 1999, because it is the same below the maximum fair rent of £3136.50 per quarter.

[NAME] of decision

24th September 2024

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 389.9

PREVIOUS RPI FIGURE Y 317.7

X 389.9 Minus Y 317.7 = (A) 72.2

(A) 72.2 Divided by Y 317.7 = (B) 0.227

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) 1.277

Last registered rent* 2456 Multiplied by (C) = 3136.31 *(exclusive of any variable service charge)

Rounded up to nearest 50p = 3136.50

Variable service charge NO If YES add amount for services

MAXIMUM FAIR RENT = £3136.50 Per Quarter

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.

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Case Reference

: LON/00AE/F77/2024/0230

Property : [ADDRESS], [POSTCODE]

Tenant

: Miss [APPELLANT]

Landlord : [APPELLANT] c/o [NAME] of Objection : 9 April 2024

Type of Application : Section 70, Rent Act 1977

Tribunal

: Mr [NAME] of Summary Reasons

: 24 September 2024

_______________________________________________

DECISION

The sum of £3,036 per quarter will be registered as the fair rent with effect from 24 September 2024 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 rent by the Rent Officer, the Tribunal has made a determination under the

Evidence

3. The Tribunal has consideration of the written submissions from both parties together with the Rent Officers calculations for the current registered rent.

Determination and Valuation

4. Having consideration of our own expert, general knowledge of rental values in the [ADDRESS] area, we consider that the open market rent for the property in a good and serviceable condition would be in the region of £6,900 per quarter. (£2,300 per month) From this level of rent we have made adjustments in relation to: the damp and mould to the basement main walls, central heating installed by the tenant, no white goods, no carpets or curtains, dated kitchen and bathroom fittings and terms of the tenancy which equates to approximately 45%

5. The Tribunal has also made an adjustment for scarcity at 20%

6. The full valuation is shown below:

Market Rent £6,900 pq

Less

approx. 45%

£3,105 Terms and condition

Leaves

£3,795

Less Scarcity

approx. 20%

£759

Leaves

£3060 pq

3 7. The Tribunal determines a rent of £3,036 per calendar quarter

Decision

8. The uncapped fair rent initially determined by the Tribunal, for the purposes of section 70, was £3,036 per quarter. The capped rent for the property according to the provisions of the Rent Acts (Maximum Fair Rent) Order 1999 is calculated at £3,136.50 per calendar quarter. The calculation of the capped rent is shown on the decision form. In this case the lower rent of £3,036 per quarter is to be registered as the fair rent for this property effect from 24 September 2024 being the date the Tribunal made the Decision.

Chairman: [NAME]: 24 September 2024

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 subsequent application for permission to appeal should be made on Form RP PTA