Fair rent
A fair rent is a special form of rent control that applies to many older regulated tenancies under the Rent Act 1977, mainly in the legacy part of the Private Rented Sector (PRS). Instead of you setting the market rent, an independent rent officer or tribunal registers a fair rent for the property, and that figure, plus any allowed increase is the maximum you can lawfully charge your residential tenant.
Fair rent takes account of the property’s condition, location and facilities, but discounts some of the scarcity value that drives open market rent payments. You can normally only seek an increase by applying to re-register the fair rent after a minimum period, rather than using Section 13 or purely contractual tenancy conditions.
From a landlord’s perspective, properties with registered fair rents often generate lower rental income than comparable assured tenancies or other modern private tenancies, and they can be harder to sell, as any buyer inherits a sitting tenant on controlled rent. However, all the modern compliance duties still apply, including fit for human habitation, rental standards, Awaab’s Law on damp and mould, energy efficiency rules, and engagement with the Private Rented Sector Ombudsman and PRS Database under the Renters’ Rights Act.
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