Scarcity and Fair/Regulated Rents

You are here : Member Forums General Discussion Scarcity and Fair/Regulated Rents
This topic has been locked as no posts have been made within the last 90 days.
E
Eddie P
1 Posts
0 Thanks
Hi,

I own a flat in Hendon subject to a Fair Rent and as confirmed on the recent reregistration by the Rent Officer and then on appeal to the First Tier Tribunal, the RPI linked maximum increase is not applicable (on this occasion) due to recent works that I have carried out.

When fixing the rent, the rent officer made a deduction for scarcity of 8% and on appeal the Tribunal deducted 20%.

I have been granted permission to appeal to the Upper Tribunal.

When considering whether or not to grant the appeal, the First Tier Tribunal stated that the Tribunal "habitually adopts a 20% allowance for scarcity thoughout Greater London and that the norm adopted by the rent officers is to low", adding that "the appeal decision would therefore be of potential importance to fair rents throughout Greater London and beyond".

In monetary terms the difference between 8% and 20% equates to about 140 per month, so not a huge amount but definitely worth having and in all probability this reduction will apply foe many many years to come. It is also somewhat galling that the rent for essentially the same flat upstairs subject to an AST is 900 per month more than the Tribunal determination.

So, a bit of a specialist question, but is anyone able to assist with any means of assessing scarcity when calculating fair rents. A possible starting point could be current statistics showing the supply and demand for different types of rented properties in the Hendon, N/W London or Greater London areas.

Thanks in advance.

Eddie P
21/05/2016 14:55

Want to read more?

This is a members only forum, if you want to read more you need to login to your membership, if you are not a member, click here to join.

This topic has been locked as no posts have been made within the last 90 days.
Landlord & Investment Show
Martin Co
Envirovent
Landlord Broadband

Share this page