Tribunal Sets Fair Rent Under Rent Act 1977

OUTCOME: Allowed

FR27 First-tier Tribunal – Property Chamber File Ref No. FR/LON/00BG/F77/2025/0224

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 43B [ADDRESS], [POSTCODE]

[NAME]

[COMPANY]

Tenant Mrs [APPELLANT]

1. The fair rent is £271.50 Per week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 14 October 2025

3. The amount for services is £23.55 Per week

negligible/not applicable

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

n/a Per n/a

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.

7. Details (other than rent) where different from Rent Register entry

n/a

8. For information only:

(a) The fair rent to be registered is the maximum fair rent as prescribed by the Rent Acts (Maximum Fair Rent) Order 1999 because the rent determined under the market approach section 70 is higher.

[NAME] of decision 14 October 2025

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 407.7

PREVIOUS RPI FIGURE Y 305.50

X 407.7 Minus Y 305.50 = (A) 102.20

(A) 102.20 Divided by Y 305.50 = (B) 0.3345

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) 1.38433

Last registered rent* £196.00 per week Multiplied by (C) = £271.37 per week *(exclusive of any variable service charge)

Rounded up to nearest 50p = £271.50 per week inc £23.55 pw service charge

Variable service charge no If YES add amount for services no

MAXIMUM FAIR RENT = £271.50 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.

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Case Reference

: FR/LON/00BG/F77/2025/0224

Property : 43B [ADDRESS], [POSTCODE]

Tenant

: Mrs [APPELLANT]

Landlord : [COMPANY] of Objection : 22 June 2025

Type of Application : Section 70, Rent Act 1977

Tribunal

: [NAME]

: 14 October 2025

_______________________________________________

DECISION

The sum of £271.50 per week including service charge of £23.55 per week will be registered as the Fair Rent with effect from 14 October 2025, being the date the Tribunal made the Decision. ____________________________________

© CROWN COPYRIGHT 2023

Full REASONS

Background FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2 1. The Landlord submitted an application received by the Rent Officer on 2 April 2025 to register a Fair Rent. The Landlord proposed £196.20 per week including £23.55 per week for services. Previous to the application the Rent Officer had registered a Fair Rent of £196.00 per week, including £18.83 per week for services effective from 26 July 2021.

Following the application the Rent Officer registered a Fair Rent of £263.50 per week effective from 29 May 2025.

Following an objection from the Tenant on 22 June 2025 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.

2. The case was determined on the papers without inspection on 14 October 2025

Property Description

3.The property is described as a self-contained maisonette modernised with full central heating comprising on the first floor two rooms, one kitchen, and second floor two rooms, one bathroom, and a WC.

Evidence

Submission by the tenant

4. The Tenant’s objection dated 22 June 2025 noted that the house “needs a lot of improvements, the fitted kitchen is getting really old and breaking, the windows need to be repaired”.

The tenant made no further submissions.

Submission by the landlord

5. The Landlord submitted an application to register a Fair Rent dated 2 April 2025. The landlord made no further submissions.

Determination and Valuation

6. The Tribunal has not been supplied with any comparable evidence. The Tribunal is an expert Tribunal and using its expertise of rents in the area determines that a rent of £3400 per month for a property on a contemporary tenancy agreement and in good tenantable condition.

From this level of rent we have made adjustments in relation to: (i) terms and conditions the tenancy dates (10%) , the terms likely to be more onerous than

3 the contemporary tenancies from which the comparables are derived (ii)condition of the flat (10%).

In terms of condition the tribunal has little to go on save the description within the objection notice.

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

7. The full valuation is shown below:

Market Rent

£3400.00 per calendar month

Less 20% as above -£720 per calendar month --------------------------------------------

£ 2680.00 per calendar month

Less Scarcity 20%

£536.00 per calendar month

Section 70 rent £ 2144.00 per calendar month

8. The Tribunal determines a rent under section 70 of £2144.00 per calendar month which is equivalent to £494.76 per week, including the service charge of £23.66 per week.

9. The Tribunal also determined the rent under the Maximum Fair Rent Regulations this from the attached template is £271.50 per week including £23.55 per week.

10. The Rent Act 1977 provides that the rent to be registered is the lesser of the section 70 rent, and rent determined under the Maximum Fair Rent Order.

Decision

11. The Tribunal therefore determines the Fair Rent for the subject property is £271.50 per week including service charge of £23.55 per week from 14 October 2025.

Chairman: [NAME]: 14 October 2025

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Appeal to the Upper Tribunal A person wishing to appeal this decision to the Upper Tribunal (Property Chamber) on a point of law must seek permission to do so by making a written application to the First-tier Tribunal at the Regional Office which has been dealing with the case which application must: a. be received by the said office within 28 days after the Tribunal sends to the person making the application written reasons for the decision. b. identify the decision of the Tribunal to which it relates, state the grounds of appeal, and state the result the party making the application is seeking. If the application is not received within the 28 –day time limit, it must include a request for an extension of time and the reason for it not complying with the 28- day time limit; the Tribunal will then decide whether to extend time or not to allow the application for permission to appeal to proceed.