Tribunal Sets Fair Rent Under Rent Act 1977

OUTCOME: Allowed

FR24 First-tier Tribunal – Property Chamber File Ref No. TR/LON/00AP/F77/2024/0212

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 26 [ADDRESS], [POSTCODE]

Tribunal Judge S.J. Walker Tribunal Member [NAME] MA [COMPANY]

Tenant Mrs [APPELLANT]

1. The fair rent is £254.50 Per Week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 27 August 2024

3. The amount for services is n/a Per

negligible/not applicable

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

0.00 Per

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 (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 the maximum fair rent as prescribed by the Rent Acts (Maximum Fair Rent) Order 1999. The rent that would otherwise have been registered was £300 per week.

Chairman Tribunal Judge S.J. Walker Date of decision 27 August 2024

FR24 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 387.5

PREVIOUS RPI FIGURE Y 276

X 387.5 Minus Y 276 = (A) 111.5

(A) 111.5 Divided by Y 276 = (B) 0.403986

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) 1.453986

Last registered rent* £175 Multiplied by (C) = £254.45 *(exclusive of any variable service charge)

Rounded up to nearest 50p = £254.50

Variable service charge NO If YES add amount for services

MAXIMUM FAIR RENT = £254.50 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.

© CROWN COPYRIGHT 2024

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : LON/00AP/F77/2024/0212 Property : 26, [ADDRESS], London. [POSTCODE]. Tenant : Mrs. [APPELLANT]. [APPELLANT] Landlord : [COMPANY]. Type of Application : Assessment of Fair Rent Date of Application : 23 April 2024 Tribunal Members : Tribunal Judge S.J. Walker Tribunal Member [NAME] MA MRICS Date of Summary Reasons : 27 August 2024

DECISION

The sum of £254.50 per week will be registered as the fair rent with effect from 27 August 2024, being the date the Tribunal made the decision.

SUMMARY REASONS Background 1. Following an objection by the tenant dated 23 April 2024 to the Rent Officer’s valuation of the fair rent of the above property at £250.50 per week with effect from 9 April 2024, the Tribunal has made a determination. The tenancy commenced on 4 December 1989. A tenancy agreement was not included in the papers.

Inspection 2. The Tribunal carried out an inspection of the property on 27 August 2024.

2

Evidence 3. The Tribunal has considered the written submissions provided by the tenant. No submissions were provided by the landlord. Neither party provided its own comparable evidence.

Determination and Valuation – Market Rent 4. Having considered our own knowledge of rental values in the area as an expert Tribunal, our view is that the open market rent for the property would be in the region of £500 to £550 per week if it were in good condition. We erred on the side of caution and decided that the lower figure should apply and decided that the open market rent in good condition would be £500.

5. To reflect the fact that the landlord has provided no carpets, curtains, white good or furniture we have deducted 10%.

6. To reflect the poor condition of the windows and the other defects in the property we have deducted 10%.

7. To reflect the fact that the tenant has liabilities for repair and decoration we have deducted 5%.

8. This makes a total deduction of 25%

9. The Tribunal has also made a 20% deduction for scarcity from this reduced figure.

10. The full valuation is shown below Market Rent

per week

£500 Less Deductions as set out above of 25%

£125

Sub-total

£375

Less Scarcity of approx. 20%

£75

Total

£300

The Capped Rent 11. This is a case where the provisions of the Rent Acts (Maximum Fair Rent) Order 1999 apply. The previous rent was capped at £175 per week. The Tribunal’s calculation in accordance with the statutory formula is attached to this summary decision. This results in a maximum fair rent of £254.50 per week. This is higher than the maximum fair rent determined by the rent officer as time has passed since that determination resulting in a higher retail prices index figure.

3 12. As the capped rent is lower than the market rent set out above, the capped rent must be registered as the fair rent.

Name: Tribunal Judge S.J. Walker Date: 27 August 2024

ANNEX - RIGHTS OF APPEAL

• The Tribunal is required to set out rights of appeal against its decisions by virtue of the rule 36 (2)(c) of the Tribunal Procedure (First-tier Tribunal)(Property Chamber) Rules 2013 and these are set out below.

• If a party wishes to appeal against this decision to the Upper Tribunal (Lands Chamber) then a written application for permission must be made to the First-tier Tribunal at the Regional office which has been dealing with the case.

• The application for permission to appeal must arrive at the Regional office within 28 days after the Tribunal sends written reasons for the decision to the person making the application.

• If the application is not made within the 28-day time limit, such application must include a request for an extension of time and the reason for not complying with the 28-day time limit; the Tribunal will then look at such reason(s) and decide whether to allow the application for permission to appeal to proceed despite not being within the time limit.

• The application for permission to appeal must identify the decision of the Tribunal to which it relates (i.e. give the date, the property and the case number), state the grounds of appeal, and state the result the party making the application is seeking.