First-tier Tribunal Determines Fair Market Rent for Assured Tenancy

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. CHI/00MR/MNR/2023/0166

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 54 [ADDRESS], [POSTCODE]

[NAME] Mr [RESPONDENT] Mr [RESPONDENT]

[NAME] [RESPONDENT], [ADDRESS], [POSTCODE]

Tenant Miss [APPELLANT]

1. The rent is: £ 236.50 Per Week (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 03 July 2023

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

4. Date assured tenancy commenced 10 February 1997

5. Length of the term or rental period Weekly

6. Allocation of liability for repairs Landlord

7. Furniture provided by landlord or superior landlord None

8. Description of premises 2 storey 3 bedroom terraced house.

[NAME] of Decision 21 August 2023

© CROWN COPYRIGHT 2023

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : CHI/00MR/MNR/2023/0166 Property : 54 [ADDRESS] [POSTCODE]

Applicant Tenant : Ms [COUNSEL] :

None

Respondent Landlord : [RESPONDENT] : None Type of Application :

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

Tribunal Members : Mr [NAME] Mr [NAME] Mr [NAME] of Inspection : None. Paper determination Date of Decision :

21st August 2023

DECISION

CHI/29UE/MNR/2023/0162

2 Summary of Decision

1. On 21st August 2023 the Tribunal determined a market rent of £236.50 per week to take effect from 3rd July 2023.

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 1st June 2023 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £126.73 per week, equating to £549.16 per month, in place of the existing rent of £118.44 per week equating to £513.24 per month, to take effect from 3rd July 2023. The notice complied with the legal requirements.

4. On 21st June 2023 the Tenant applied to the Tribunal under Section 13(4) (a) of the Housing Act 1988.

5. The Tribunal does not 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 7th July 2023 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. The Landlord made a brief submission to the Tribunal, copied to the Tenant, but the Tenant made no further submission.

8. Neither party objected to the matter being determined without an oral hearing, so the Tribunal determined the case on 21st August 2023 based on the written representations received. The Property 9. From the information given in the papers and available on the internet, the property comprises a bay-fronted inner terraced house of brick construction beneath a slate roof situated in a residential area about 0.5 miles the sea front.

10. The accommodation includes a Living Room, Kitchen/Dining Room, 3 Bedrooms and Bathroom with WC. Outside there is a rear garden and no off- street parking. Local parking is permit controlled. Submissions 11. The initial tenancy began on 10th February 1997. The Landlord is a Social Housing provider which charges a social “formula” rent rather than a market rent.

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3 12. In the absence of any contrary evidence the Tribunal based its assessment on the Tenant providing carpets, curtains and white goods and the Tribunal noted that the Kitchen and Bathroom fittings pre-date the Tenancy and are therefore in excess of 26 years old. The Law

S14 Determination of Rent by First-tier Tribunal

(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

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4 (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 [NAME], 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 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.

Consideration and Valuation

13. 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.

14. 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 Tenant are not relevant to this issue.

15. Rents for residential property are normally quoted and charged on a monthly basis.

16. Having carefully considered the representations from the parties and associated correspondence, and using its own judgement and knowledge of rental values in Southsea, the Tribunal decided that the market rent for the subject property if let today in a condition that was usual for such an open market letting would be £1,350 per month.

17. However, the property is not let in a condition that is usual in the open market so a number of adjustments to this figure are necessary.

18. Using its experience the Tribunal decided that the following adjustments should be made: Tenant’s provision of white goods £30 Tenant’s provision of carpets £50 Tenant’s provision of curtains £20 Dated Kitchen £150 Dated Bathroom £75

____ TOTAL per month £325

19. 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.

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5 Determination 20. 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 £1,025 per month which equates to £236.54 per week, rounded to £236.50.

21. The Tribunal is aware that this rent is higher than the rent specified by the Landlord. There is no requirement on the Landlord to charge this higher rent. The rent charged by the Landlord is subject to the formula issued by the Regulator of Social Housing.

22. The Tribunal directed that the new rent of £236.50 per month would take effect from 3rd July 2023 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.