First-tier Tribunal Determines Fair Market Rent for Assured Tenancy

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. HAV/00ML/MNR/2024/0625

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 [ADDRESS] [POSTCODE]

[NAME] Miss [RESPONDENT]

Landlord Mr [RESPONDENT] c/o [APPELLANT], 45 [ADDRESS], [POSTCODE]

Tenant Mr [APPELLANT]

1. The rent is: £ 950.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 25 September 2024

3. The amount included for services is not applicable n/a Per n/a

4. Date assured tenancy commenced 25 January 2024

5. Length of the term or rental period Monthly

6. Allocation of liability for repairs Landlord

7. Furniture provided by landlord or superior landlord

8. Description of premises First Floor split-level Studio Flat with separate Kitchen and Shower Room.

[NAME] of Decision 30 December 2024

© CROWN COPYRIGHT 2024

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : HAV/00ML/MNR/2024/0625 Property : [ADDRESS] [POSTCODE]

Applicant Tenant : Mr [COUNSEL] :

None

Respondent Landlord : Dr [COUNSEL] : [COMPANY] of Application :

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

Tribunal Members : Mr [NAME] Ms [NAME] D [NAME] of Application : 23rd August 2024 Date of Decision :

30th December 2024

DECISION

The Tribunal determines a rent of £950 per calendar month with effect from 25th September 2024.

HAV/00ML/MNR/2024/0625 2 SUMMARY REASONS

Background 1. On 20th August 2024 [NAME] served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £950 per month in place of the existing rent of £900 per month to take effect from 25th September 2024.

2. On 23rd August 2024 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 based on the papers provided by the parties and information freely available on the internet. Evidence

4. The Tribunal has considered the written submissions provided by the Parties. Determination and Valuation 5. Having given consideration to the comparable evidence provided by the parties and of its own expert, general knowledge of rental values in the area, the Tribunal did not disagree with the rent proposed by the Landlord that the open market rent for the property in good tenable condition would be £950 per calendar month.

6. Such a tenancy would normally include white goods, carpets, curtains/blinds and associated fittings to all be provided by the Landlord, as they are in this case.

7. The Tenant made no representation that the starting date for the new rent specified in the Landlord’s notice would cause the Tenant undue hardship.

8.

Accordingly, the Tribunal directed that the new rent of £950 per month should take effect from 25th September 2024, this being the date specified in the notice.

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 request for full reasons should be made within a month. Any subsequent application for permission to appeal should be made on Form RP PTA.

© CROWN COPYRIGHT 2025

Applicant Tenant : Mr [COUNSEL] :

None

Respondent Landlord : Dr [COUNSEL] : [RESPONDENT] of Application :

Tribunal Members : Mr [NAME] Ms [NAME] of Application : 23rd August 2024

Date of Decision

:

30th December 2024

Date of full reasons

:

17th February 2025

DECISION

HAV/00ML/MNR/2024/0625

2

Summary of Decision

1. On 30th December 2024 the Tribunal determined a market rent of £950 per month to take effect from 25th September 2024. Background 2. The case concerned the determination of a market rent for the subject property following a referral of the Landlord’s notice of increase of rent by the Tenant pursuant to sections 13 and 14 Housing Act 1988.

3. On 20th August 2024 [NAME] served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £950 per month, in place of the existing rent of £900 per month, to take effect from 25th September 2024. The notice complied with the legal requirements.

4. On 23rd August 2024 the Tenant applied to the Tribunal under Section 13(4) (a) of the Housing Act 1988.

5. The Tribunal does not routinely consider it necessary and proportionate in cases of this nature to undertake inspections or hold Tribunal hearings unless either are specifically requested by either party or a particular point arises which merits such an inspection and/or hearing.

6. The Tribunal issued Directions on 19th November 2024 informing the parties that, unless either party objected, the Tribunal intended to determine the rent based on written representations. The parties were invited to make submissions which could include photographs or videos. 7. [NAME] submitted papers by the specified dates setting out their respective case. The papers were also copied to the Tenant. The Tenant made no further representations.

8. Neither party objected to the matter being determined without an oral hearing, so the Tribunal determined the case on 30th December 2024 based on Application and the written representations received.

9. These reasons address the key issues raised by the parties. They do not recite each and every point referred to either in submissions or during any hearing. However, this does not imply that any points raised, or documents not specifically mentioned were disregarded. If a point or document was referred to in the evidence or submissions that was relevant to a specific issue, then it was considered by the Tribunal. The Tribunal concentrates on those issues which, in its opinion, are fundamental to the application. The Law

S14 Determination of Rent by First-tier Tribunal

HAV/00ML/MNR/2024/0625

3 (1) Where, under subsection (4) (a) of section 13 above, a tenant refers to a First-tier Tribunal a notice under subsection (2) of that section, the Tribunal shall determine the rent at which, subject to subsections (2) and (4) below, the Tribunal consider that the dwelling-house concerned might reasonably be expected to be let in the open market by a [NAME] under an assured tenancy-

(a) which is a periodic tenancy having the same periods as those of the tenancy to which the notice relates; (b) which begins at the beginning of the new period specified in the notice; (c) the terms of which (other than relating to the amount of the rent) are the same as those of the tenancy to which the notice relates; and (d) in respect of which the same notices, if any, have been given under any of Grounds 1 to 5 of Schedule 2 to this Act, as have been given (or have effect as if given) in relation to the tenancy to which the notice relates.

(2) In making a determination under this section, there shall be disregarded-

(a) any effect on the rent attributable to the granting of a tenancy to a sitting tenant; (b) any increase in the value of the dwelling-house attributable to a relevant improvement carried out by a person who at the time it was carried out was the tenant, if the improvement- (i) was carried out otherwise than in pursuance of an obligation to his immediate landlord, or (ii) was carried out pursuant to an obligation to his immediate landlord being an obligation which did not relate to the specific improvement concerned but arose by reference to consent given to the carrying out of that improvement; and (c) any reduction in the value of the dwelling-house attributable to a failure by the tenant to comply with any terms of the tenancy.

(3) For the purposes of subsection (2)(b) above, in relation to a notice which is referred by a tenant as mentioned in subsection (1) above, an improvement is a relevant improvement if either it was carried out during the tenancy to which the notice relates, or the following conditions are satisfied, namely-

(a) that it was carried out not more than twenty-one years before the date of service of the notice; and (b) that, at all times during the period beginning when the improvement was carried out and ending on the date of service of the notice, the dwelling- house has been let under an assured tenancy; and (c) that, on the coming to an end of an assured tenancy at any time during that period, the tenant (or, in the case of joint tenants, at least one of them) did not quit.

(4) In this section "rent" does not include any service charge, within the meaning of section 18 of the Landlord and Tenant Act 1985, but, subject to that, includes

HAV/00ML/MNR/2024/0625

4 any sums payable by the tenant to the landlord on account of the use of furniture, in respect of council tax or for any of the matters referred to in subsection (1) (a) of that section, whether or not those sums are separate from the sums payable for the occupation.

The Property 10. From the information given in the papers and available on the internet, the property comprises a first floor flat within a converted 5-storey period dwelling, itself within the centre of Brighton, about 600 metres from Brighton Beach.

11. The accommodation comprises a Studio Room, separate Kitchen and Shower Room with WC. The Energy Performance Rating is ‘E’. Submissions 12. The initial tenancy began on 25th January 2024 at a rent of £900 per month. 13. [NAME] states that the Kitchen was refurbished approximately 5 years ago, the Shower Room was replaced and modernised in March 2024, the fridge and cooker hood were replaced in 2024 and new roller blinds fitted in February 2024.

14. The Agent states that the Tenant had complained about a drafty window and a gap between a skirting board and carpet, that the window had been draught proofed, and the gap noted was not found to a serious defect.

15. The Agent suggests that the property is in good order and that a full rent of £950 per month to £1,100 per month can be justified.

16. Photographs of the property show it to be in good and clean condition. Consideration and Valuation

17. The Tribunal first considered whether it felt able to reasonably and fairly decide this case based on the papers submitted only with no oral hearing. Having read and considered the papers it decided that it could do so.

18. The Tribunal is required to determine the rent at which the subject property might reasonably be expected to be let in the open market by a [NAME] under an assured tenancy. The personal circumstances of the Parties are not relevant to this issue.

19. The Tribunal found the property to be an attractive Studio, with separate Kitchen, presented in good order.

20. Having carefully considered the representations from the parties and associated correspondence and using its own judgement and knowledge of rental values in Brighton area, the Tribunal did not disagree that the open market rent proposed by [NAME] for the property in good and tenantable condition is £950 per month.

HAV/00ML/MNR/2024/0625

5 21. The Tenant made no representation that the starting date for the new rent specified in the Landlord’s notice would cause the Tenant undue hardship. Determination 22. The Tribunal therefore decided that the rent at which the subject property might reasonably be expected to be let in the open market by a [NAME] under the terms of this assured tenancy was £950 per month.

23. The Tribunal directed that the new rent of £950 per month should take effect from 25th September 2024, this being the date specified in the notice.

RIGHTS OF APPEAL

1. A person wishing to appeal this decision to the Upper Tribunal (Lands Chamber) must seek permission to do so by making written application to the First-tier Tribunal at the Regional office which has been dealing with the case. Where possible you should send your application for permission to appeal by email to [EMAIL] as this will enable the First-tier Tribunal Regional office to deal with it more efficiently.

2. The application must arrive at the Tribunal within 28 days after the Tribunal sends to the person making the application written reasons for the decision.

3. If the person wishing to appeal does not comply with the 28-day time limit, the person shall include with the application for permission to appeal a request for an extension of time and the reason for not complying with the 28-day time limit; the Tribunal will then decide whether to extend time or not to allow the application for permission to appeal to proceed.

4. The application for permission to appeal must identify the decision of the Tribunal to which it relates, state the grounds of appeal, and state the result the party making the application is seeking.