Tribunal Sets Maximum Fair Rent for Tenancy

OUTCOME: Allowed

FR24 First-tier Tribunal – Property Chamber File Ref No. BIR/17UK/F77/2019/0021

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 1 [ADDRESS], [POSTCODE]

Mr [NAME] J [NAME]

Landlord [APPELLANT] & [COMPANY]

Tenant Mrs [APPELLANT] [NAME]

1. The fair rent is £92.00 Per week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 9 July 2019

3. The amount for services is --- Per ---

not applicable

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

n/a

8. For information only:

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 £96.50 per week.

Chairman Mr [NAME] J Ellis Date of decision 9 July 2019

FR24 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 289.2

PREVIOUS RPI FIGURE Y 270.6

X 289.2 Minus Y 270.6 = (A) 18.6 (A) 18.6 Divided by Y 270.6 = (B) 0.068736

First application for re-registration since 1 February 1999 NO

If yes (B) plus 1.075 = (C)

If no (B) plus 1.05 = (C) 1.118736

Last registered rent* 86 Multiplied by (C) = 96.21131 *(exclusive of any variable service charge)

Rounded up to nearest 50p = 96.50

Variable service charge NO If YES add amount for services ---

MAXIMUM FAIR RENT = £96.50 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.

FIRST - TIER TRIBUNAL

PROPERTY CHAMBER

(RESIDENTIAL PROPERTY)

Case Reference : BIR/17UK/F77/2019/0021

Property : 1, [ADDRESS], Walton on Trent, Derbyshire. [POSTCODE]

Applicant: [redacted]

Applicant’s : [APPELLANT]

Respondent: [redacted]

Respondent’s : None Representative

Application : Application for determination of fair rent

Under s70 Rent Act 1977 and the Rent Acts

(Maximum Fair Rent) Order 1999 Tribunal : Tribunal Judge P. J. Ellis.

Tribunal Member [NAME].

Date of Inspection : 09 July 2019 And Decision

Date Reasons Issued : 25 July 2019

DECISION _____________________________________________________ © CROWN COPYRIGHT 2019

Introduction

1. On 09 July 2019 the Tribunal inspected [ADDRESS], Walton on Trent, Derbyshire [POSTCODE](the Property) in response to an application by [APPELLANT] on behalf of the [APPELLANT] and [COMPANY] from a decision of the rent officer to determine a fair rent.

2. The rent officer determined the rent for the Property in the sum of £90.00 per week with effect from 1 May 2019. Before the rent officer’s determination the rent had been £86.00pw. Following objection to the rent registered the matter was referred to the Tribunal on 3 June 2019 3. Mrs [APPELLANT]. [APPELLANT]. [APPELLANT] is the regulated tenant of the Property. She has lived in the Property for many years. The Tribunal made its determination after the inspection and issued it to the parties on 9 July 2019. By letter dated 12 July 2019 the Respondent asked the Tribunal for its reasons for the decision.

4. The Tribunal received a brief submission from the Applicant including two comparables and a short submission from Mrs [NAME] without any comparable evidence in support. Her evidence was restricted to a description of work undertaken by her throughout her tenancy.

5. Mr [NAME] Manager of [COMPANY] attended the inspection but made no further submissions. Mrs [NAME] was present during the inspection. The Property 6. The property was a two bedroom semi-detached cottage constructed of rendered brick under a tile roof with an extension to the rear and a conservatory at the side. It had double glazed windows and gas central heating.

7. The accommodation provided Conservatory, Living/Dining Room, Kitchen, Hall, Ground Floor Bathroom and Two First Floor Double Bedrooms.

8. There was a small garden at the side and a larger garden and garage on the other side of [ADDRESS].

9. The roof of the entire terrace was replaced three years ago but flashing to the subject property chimney was inadequate leading to some ingress of damp in one bedroom. Cracked render was also noted on the front elevation. A conservatory of part brick and wooden window frames was added some years ago. The window frames showed some signs of rot.

10. A garage and garden are located across [ADDRESS] which is a narrow lane cul de sac. Its surface is not tarmac coated. The Parties Submissions 11. The Applicant contended the rent should be £103.20 per week having regard to other properties within the same geographical location and comparable market tenancies available through [NAME]. However, the Applicant asserted there is a fairly limited supply of rented accommodation available within the immediate location of the Property.

12. It identified two properties as comparable namely a. [ADDRESS] on Trent a two bedroom semi-detached house offered at £575.00pcm (£133.00pw) b. [ADDRESS], Stapenhill also a two bedroom semi-detached house offered at £615.00pcm (£142.00pw). Both comparable properties had the benefit of modernised bathroom & kitchen, floor coverings, white goods and garage for which it conceded a discount of £25.00pw from the suggested market rent of £133.00 for the subject Property. The Applicant then deducted a further £4.80 to deduce its suggested rent of £103.20pw.

13. Mrs [NAME] did not adduce any evidence of comparable properties but made a submission regarding work carried out at the Property by her or paid for by

her. There was no dispute that over the years Mrs [NAME] had carried out the improvements and items of maintenance and repair which were described to the Tribunal on the inspection. They were as follows: Kitchen units, electric shower and tiling, bathroom cupboard, fitted wardrobes in Bedroom 2, new skirting board in Living/Dining Room and both Bedrooms, cupboard in the passage leading to the Bathroom, 2 new internal doors, radiator in the Conservatory and partial loft insulation over the Kitchen and Bathroom. The Tenant had also added a trim to the conservatory, greenhouse, garden shed, outside light and outside tap. Also Mrs [NAME] owned the carpets and curtains and white goods with the exception of the cooker Decision 14. The Tribunal accepted the Applicants submission that there were few properties available for rent within the immediate location of the Property. Having reviewed the Applicants comparables and identified further properties of its own it also accepted that the market rent for a two bedroom property in the area was £132.50pw.

15. Adjustments by deduction made by the Tribunal : a. Carpets & Curtains

8.50 b. White Goods

4.00 c. Shower & tiling

1.50 d. Sundry maintenance and minor improvements and repair 7.50 e. ground floor bathroom

5.00 f. Decorating liability not less than 5% 7.00

Total for adjustments 33.50

Adjusted weekly rent before scarcity 99.00 Scarcity 10% £10.00 89.00

Add for garage and conservatory 3.00

Rent before Capping 92.00

16. The Tribunal determined the maximum fair rent at the sum of £92.00 pw and rejects the Applicants suggestion the rent should be £103.20.

Appeal

17. If either of the parties is dissatisfied with this decision they may apply to this Tribunal for permission to appeal to the Upper Tribunal (Lands Chamber) on a question of law only. Any such application must be received within 28 days after these written reasons have been sent to them rule 52 of The Tribunal Procedure (First-tier Tribunal)(Property Chamber) Rules 2013).

Judge PJ Ellis Chair