Tribunal Sets Fair Rent of £792.00 Per Month

OUTCOME: Allowed

FR24 First-tier Tribunal – Property Chamber File Ref No. GB/LON/00BF/F77/2024/0165

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 62 [ADDRESS], [POSTCODE]

[NAME] [NAME]

[APPELLANT]

Tenant Ms [APPELLANT] R [APPELLANT]

1. The fair rent is £792.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 2 July 2024

3. The amount for services is £55.00 Per Calendar Month

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

not applicable Per

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 not limited by the Rent Acts (Maximum Fair Rent) Order 1999, because it is the same as/below the maximum fair rent of £ 936.00 per month including £55.00 per month for services prescribed by the Order.

[NAME] of decision 2 July 2024

FR24 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 386.40

PREVIOUS RPI FIGURE Y 317.7

X 386.40 Minus Y 317.7 = (A) 68.7

(A) 68.7 Divided by Y 317.7 = (B) 0.21624

First application for re-registration since 1 February 1999 NO

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.26624

Last registered rent* 695.5 Multiplied by (C) = 880.67 *(exclusive of any variable service charge)

Rounded up to nearest 50p = 881.00

Variable service charge NO If YES add amount for services 55.00

MAXIMUM FAIR RENT = £936.00 Per month

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

: GB/LON/00BF/F77/2024/0165

Property : 62 [ADDRESS], [POSTCODE]

Tenant

: [NAME]

Landlord : [APPELLANT] of Objection : 28 February 2024

Type of Application : Section 70, Rent Act 1977

Tribunal

: Mr [NAME] [NAME] of Summary Reasons

: 2 July 2024

_______________________________________________

DECISION

The sum of £792.00 per calendar month will be registered as the fair rent with effect from 2 July 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 Landlord to the determination of a fair rent by the Rent Officer, the Tribunal has made a determination under the provisions of the Rent Act 1977.

Inspection

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

Evidence

3. The Tribunal has consideration of the reply form provided by the Landlord. There were no other written submissions from the parties. The papers included a schedule of services in the block but these include matters which are the landlords responsibility under s11 of the Landlord and Tenant Act 1985. The previous registered rent was set by the tribunal and included a variable service charge. The current registration under appeal includes a fixed amount for services. There is no objection to the amount registered by the Rent Officer.

Determination and Valuation

4. In the absence of rental comparables provided by the parties the tribunal has relied on its own expert, general knowledge of rental values in the area and considers that the open market rent for the property in the condition and with the amenities the market would expect would be in the region of £1,500.00 per calendar month. From this level of rent we have made adjustments in relation to:

No central heating, carpets curtains or white goods provided by the landlord

5. The Tribunal has also made an adjustment for scarcity.

6. The full valuation is shown below:

Fair rent PCM Market rent 1,650.00 £ less condition & terms 40% 660.00 -£ adjusted rent 990.00 £ less scarcity off adj rent 20% 198.00 -£ Fair rent 792.00 £

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7. The Tribunal determines a s70 rent of £792.00 per calendar month.

Decision

8. The uncapped fair rent initially determined by the Tribunal, for the purposes of section 70, was £792.00 per calendar month. The capped rent for the property according to the provisions of the Rent Acts (Maximum Fair Rent) Order 1999 is calculated at £918.50 per calendar month. The calculation of the capped rent is shown on the decision form. In this case the lower rent of £792.00 per calendar month is to be registered as the fair rent or this property.

Chairman: [NAME]: 2 July 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