First-tier Tribunal Determines Capped Rent Increase for Assured Tenancy

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. LON/00AM/MNR/2023/0357

Notice of the Tribunal Decision and Register of Rents under Assured Periodic Tenancies (Section 14 Determination)

Housing Act 1988 Section 14

Address of Premises The Tribunal members were 169 [ADDRESS], [POSTCODE]

[NAME]

Landlord [RESPONDENT] A [ADDRESS], Harringay, London, [POSTCODE]

Tenant Mr [APPELLANT] & Mr [APPELLANT] [NAME]

1. The rent is: £ 1653.75 Per Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 3rd September 2023

*3. The amount included for services is not applicable

Per

*4. Service charges are not included

5. Date assured tenancy commenced 3rd August 2023

6. Length of the term or rental period 12 Months

7. Allocation of liability for repairs In accordance with agreement

8. Furniture provided by landlord or superior landlord Dining table, 4 dining chairs, 2 bed frames and mattresses, drawer unit, coffee table.

9. Description of premises A purpose built two bedroom first floor flat forming part of a five storey block built in 1938 with 2 bedrooms, living room, kitchen, bathroom, lavatory.

[NAME] of Decision 31st October 2023

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Case Reference

: LON/OOAM/MNR/2023/0357

Property : 169 [ADDRESS] [POSTCODE]

TenantS

: Mr [RESPONDENT] [NAME] & Mr [RESPONDENT] [NAME]

Landlord : Mr [RESPONDENT] of Objection : 15th March 2023

Type of Application : Determination of a Market Rent sections 13 & 14 of the Housing Act 1988

Tribunal

: Mr [NAME] of Summary Reasons

: 31st October 2023

_______________________________________________

DECISION

The Tribunal determines a rent of £1,653.75 per calendar month with effect from 3rd April 2023. ____________________________________

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2 © CROWN COPYRIGHT 2023

SUMMARY REASONS

Background

1. On the 31st August 2023 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £2,000 per month in place of the existing rent of £1,575 per month to take effect from 3rd September 2023.

2. On the 15th August 2023 under Section 13(4)(a) of the Housing Act 1988, the Tenant referred the Landlord’s notice proposing a new rent to the Tribunal for determination of a market rent.

Inspection

3. The Tribunal did not inspect the property but considered this case on the basis of the papers provided by the parties.

Evidence

4. The Tribunal has consideration of the written submissions provided by the landlord and tenant together with a comparable evidence, photographs and floor plan.

Determination and Valuation

5. In the agreement there is a clause on the first page of the agreement clause 1 Terms of the Tenancy. It states, The Landlord and Tenant may renew this contract for a term to be fixed and agreed mutually at the time of renewal and may, at that time, vary any terms and conditions contained herein and there will be a 5% cap on the rent increase for an additional 12 months.

6. So the first thing the Tribunal must decide is: should this clause be considered, when calculating the rent in accordance with the Act. The rent review clause provides a clearly set out mechanism to determine the rent and surely it was what each party contemplated when a rent review takes place. The Tribunal must be obliged to take into consideration this clause in the agreement. Clause 1 must be a relevant consideration in the calculation of the rent review and cannot be put to one side.

For these reasons the Tribunal will carry out two calculations and the lesser of the two will be the new rental figure.

7. Firstly, having consideration of the parties’ comparable evidence together with our own expert, general knowledge of rental values in the Homerton area, we consider that the open market rent for the property in its current condition would be £1,850 per month. From this level of rent we have made no adjustments in relation to condition.

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8. The 5% capped increase provides a rental figure of £1,653.75 per month.

9. The Tribunal determines a rent of £1,653.75 per calendar month.

Decision 10. The Tribunal therefore determined that the rent at which the subject property might reasonably be expected to be let in the open market by a willing Landlord under an assured tenancy governed by the relevant clause in the agreement was £1,653.75 per calendar month.

11. The Tribunal directs the new rent of 1,653.75 to take effect on the 3rd September 2023. This being the date set out in the Landlord’s Notice of Increase and the Tribunal was satisfied that a starting date of that specified in the Landlord’s notice would cause the tenant undue hardship.

Chairman: [NAME]: 31 October 2023

APPEAL PROVISIONS

These summary reasons are provided to give the parties an indication as to how the Tribunal made its decision. If either party wishes to appeal this decision, they should first make a request for full reasons and the details of how to appeal will be set out in the full reasons. Any subsequent application for permission to appeal should be made on Form RP PTA.