First-tier Tribunal Adjusts Fair Rent Based on Property Condition

OUTCOME: Allowed

© CROWN COPYRIGHT FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : CAM/00ME/F77/2023/0031 Property : 3 [ADDRESS], [POSTCODE] Applicant (Landlord) : [COMPANY] c/o [NAME] (UK) [RESPONDENT], Exchange House, Petworth, West Sussex, GU 28 0BF Agent: [APPELLANT] ([NAME] UK) Respondent (Tenant) : Mr [APPELLANT] of [NAME] : Determination of a fair rent under section 70 of the Rent Act 1977 Tribunal members : Tribunal Judge Bernadette MacQueen Tribunal Member [NAME], FRICS Date of decision : 20 November 2023

DECISION

2 Description of Hearing An inspection of [NAME] took place on 20th November 2023 at 11.30am. There was also due to be a telephone hearing at 3pm on 20th November 2023, however the Tribunal waited until 3.10pm, but no party joined this hearing. The tribunal has therefore made its decision based on its inspection of [NAME] and the documents submitted by the Applicant and the Respondent. Decision The tribunal determined a fair rent of £675 per month with effect from 20th November 2023. Reasons Background 1. On 21st April 2023 the landlord made an [NAME] to register the rent of [NAME] at £956 per month.

2. On 6th June 2o23 the Rent Officer registered a Fair Rent of £684 per calendar month with effect from 6th June 2023.

3. This was in lieu of the previous registered rent of £655.00 per calendar month week from 20th July 2015.

4. The Landlord objected, and the matter was referred to the First Tier Tribunal, Property Chamber.

5. The Tribunal issued directions on 15th September 2023. Parties were requested to complete a pro forma supplying detail of the accommodation on a room-by-room basis, the features of [NAME] (central heating, white goods, double glazing, carpets and curtains) and other property attributes and any further comments that they may wish the tribunal to take into consideration. This could include any repairs and improvements that had been made, any comments on the condition of [NAME] and rentals of similar properties – should they wish to rely on these. [NAME]

6. The tribunal inspected [NAME] on 20th November 2023. The tenant, Mr [APPELLANT] and Mrs [APPELLANT] were present at the inspection. 7. [NAME] is a 19th century black and white cottage gate house comprising of three-bedroom semi-detached property of brick construction with a tiled roof.

3 8. There is no central heating, and the windows are in poor condition.

9. The accommodation comprises a garden, two reception rooms and a kitchen on the ground floor, two bedrooms and a bathroom on the first floor, and a bedroom on the second floor which is accessed from the second bedroom on the first floor.

10. The kitchen has been refitted by the tenant who has also supplied the white goods.

11. The bathroom has also been refitted by the tenant.

12. The bedrooms are compact with two single and one double.

13. The carpets, floor coverings and curtains were provided by the tenant. 14. [NAME] is in poor condition and there is evidence of damp. In particular there are tiles missing from the roof. The law 15. The relevant law is set out in section 70 of the 1977 Act and the MFR Order. We are to have regard to all the circumstances (other than personal circumstances) and in particular to the age, character, locality and state of repair of [NAME]. We are to disregard the effect on the rental value of any improvements carried out by the tenant (other than in pursuance of the terms of the tenancy). We are also required (by s.70(2)) to assume that the demand for similar rented properties in the locality does not significantly exceed the supply of such properties for rent; in effect, if such scarcity exists, we are to adjust the rental figure so that the fair rent is not affected by it.

16. In [COMPANY] v Chairman of the Greater Manchester etc. Committee (1995) 28 HLR 107 and [NAME] v [NAME] [1999] QB 92, the Court of Appeal confirmed that for the purposes of determining the market rent (before [NAME] any necessary adjustments), open market assured tenancy rents are usually appropriate comparables.

17. By section 72 of the 1977 Act, if the rent is determined by the tribunal, the registration of the rent takes effect from the date we make our decision. Representations – landlord 18. No representations were received from the landlord. Representations – tenant 19. The tenant said that they had provided the carpets and curtains and white goods and had carried out all of the work to [NAME]. The only exception

4 was a small conservatory which the landlord had built to replace the one erected by the teanant, however the tenant pointed to water that was coming into the room.

20. The tenant had installed a bath, sink and shower to the bathroom and cupboards and white goods to the kitchen 21. The tenant had built a new fireplace in a reception room. Determination 22. First, we need to determine the rent which the landlord could reasonably expect to obtain for [NAME] in the open market if it were let today in the condition and on the terms now usual for open market lettings.

23. Neither party has supplied comparables. The Rent Officer provided a list of comparables from East Thames Valley that range from £1,150.00 to £3,000.00 per calendar month. Using its knowledge and experience it estimated that the open market rent is in the region of £1, 350.00 per calendar month. This takes into account the small size of [NAME].

24. We then need to adjust this open market rent to reflect that the landlord has not provided carpets, curtains and white goods, the tenants provision of the kitchen units, bathroom fixtures and other improvements and to allow for their internal repairing obligations.

25. For this the tribunal has made an adjustment of £600.00 per month to arrive at a rent before consideration of scarcity of £750.00 per month.

26. We then considered whether there should be an adjustment for “scarcity” as referred to in paragraph 15 and decided that there should be an adjustment of 10%. This results in a rent of £675.00 per month.

27. The provisions of the Rent Acts (Maximum Fair Rent) Order 1999 require that the registered rent is either the capped Fair Rent, details of which are attached to the decision notice, or the Fair Rent decided by the Tribunal whichever is the lower.

28. The capped rent is £991.50 per month. This is higher than the rent assessed by the Tribunal as set out above and therefore, the rent determined by the tribunal of £675 per month is to be registered. Name: Tribunal Judge Bernadette MacQueen Date: 20 November 2023 Rights of appeal

5 By rule 36(2) of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013, the tribunal is required to notify the parties about any right of appeal they may have. If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber), then a written [NAME] for permission must be made to the First-tier Tribunal at the [NAME] which has been dealing with the case. The [NAME] for permission to appeal must arrive at the [NAME] within 28 days after the tribunal sends written reasons for the decision to the [NAME]. If the [NAME] is not made within the 28-day time limit, such [NAME] 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 [NAME] for permission to appeal to proceed, despite not being within the time limit. The [NAME] for permission to appeal must identify the decision of the tribunal to which it relates (i.e. give the date, [NAME] and the case number), state the grounds of appeal and state the result the party [NAME] the [NAME] is seeking. If the tribunal refuses to grant permission to appeal, a further [NAME] for permission may be made to the Upper Tribunal (Lands Chamber).