First-tier Tribunal denies jurisdiction over rent increase notice

OUTCOME: Dismissed

© CROWN COPYRIGHT 2014

FIRST-TIER TRIBUNAL

PROPERTY CHAMBER

(RESIDENTIAL PROPERTY)

Case Reference :

CAM/33UE/MNR/2021/0059

P:PAPERREMOTE

Property :

[ADDRESS]

King’s Lynn Norfolk [POSTCODE]

Applicant: [redacted]

Respondent: [redacted]

Decision in Relation to S.13 of the

Housing Act 1988

Tribunal Member :

[NAME] and venue of

Hearing : Remote hearing on the papers

Date of Decision : 15 December 2021

DECISION

The Tribunal does not have jurisdiction to determine this [NAME] for the

reasons stated below.

This has been a hearing on the papers which has been consented to by the

parties. The form of remote hearing was P:PAPERREMOTE. A face to face

hearing was not held because it was not practicable and all the issues could be

determined on the papers. The documents that I was referred to are in a an

unnumbered bundle, the contents of which I have recorded.

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Background:

1. The landlord served a notice of increase on the tenant which proposed a

new rent of £700 per month with effect from 15 September 2021.

2. The Tribunal issued Directions on 20 October. The tenants had stated

in their [NAME] that they considered the landlord’s notice to be

invalid because the original tenancy agreement contains a rent review

mechanism. The issue of whether the landlord’s notice was invalid

would be considered as a preliminary issue.

3. Written representations were received by both parties regarding both

the jurisdictional issue and the appropriate rent if the landlord’s notice

was determined to be valid.

The Law:

4. The statutory provisions relating to when the tenant may refer the

notice to the tribunal are contained in section 13 of the Act which is set

out below.

The Tenancy agreement

The original tenancy was for a period of 12 months commencing on 15

December 2017. By Schedule 3 clause 6 of the agreement “The

Landlord can increase the rent every twelve months on the

anniversary of the date on which the Tenancy began (“the Rent

Increase Date”). The increase is to be calculated according to the rise

in the Retail Prices Index from the start of the Tenancy or the

anniversary date whichever is the later. To avoid doubt if the

Landlord does not increase the rent in any year this will not affect the

Landlord’s rights to increase the Rent in subsequent years.”

The evidence

6. The landlord stated that the contractual tenancy had come to an end

by effluxion of time and that the tenancy agreement allows the

tenancy to continue on a monthly basis after the expiry of the initial

term by agreement butthat there was no agreement.

7. It had been the landlord’s intention to grant a tenancy of one year on

an Assured Tenancy basis with no agreement as to a continuation and

that on the expiry of the initial term the tenancy should become a

statutory tenancy from month to month. Accordingly, no

communication took place with the Applicant tenants on the expiry of

the term and no agreement was made as to its continuation on a

contractual basis.

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8. The tenants stated that they were of the opinion that the rent increase

clause in the tenancy agreement was binding on both parties. The

rent increase clause specifically comes into effect at the anniversary

of the commencement of the tenancy; the date that the original fixed

term expired. The rent, if increased in line with the agreement,

should be £655.88 per month.

9. The tenants referred to a letter from the landlord dated 8 October

2018 confirming that “we are happy for you to continue your

tenancy for the foreseeable future.”

10. The tenants stated that if they were occupying under a new tenancy

then the appropriate documents including an electrical installation

report should have been provided but no new documentation had

been provided.

Facts Found

11. Clause 6 of Schedule 3 of the tenancy agreement which is binding on

the parties provides that the rent for a particular period of the

tenancy will or may be greater than the rent for an earlier period.

The Tribunal’s decision

12. The Tribunal does not have jurisdiction to deal with the [NAME]

because the tenancy agreement included a clause setting out the rent

review mechanism.

Reasons for the Decision

13. The wording of Clause 6 of Schedule 3 of the tenancy agreement

precludes an [NAME] to the Tribunal, section 13 (1) (b) of the Act

applies.

Chairman: [NAME] 15 December 2021

Appendix of relevant legislation

Section 13 Housing Act 1988

Increases of rent under assured periodic tenancies.

(1) This section applies to—

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(a)a statutory periodic tenancy other than one which, by virtue of paragraph 11

or paragraph 12 in Part I of Schedule 1 to this Act, cannot for the time being be

an assured tenancy; and

(b)any other periodic tenancy which is an assured tenancy, other than one in

relation to which there is a provision, for the time being binding on the tenant,

under which the rent for a particular period of the tenancy will or may be

greater than the rent for an earlier period.

ANNEX - RIGHTS OF APPEAL

i. 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 Regional office which has been

dealing with the case.

ii. The [NAME] for permission to appeal must arrive at the Regional

office within 28 days after the Tribunal sends written reasons for

the decision to the [NAME].

iii. 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.

iv. The [NAME] 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 [NAME] the [NAME] is seeking.