First-tier Tribunal Determines Fair Market Rent for Assured Tenancy

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. CHI/19UH/MNR/2023/0075

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 40 [ADDRESS], [POSTCODE]

[NAME] [NAME] Mr [RESPONDENT]

[RESPONDENT], [ADDRESS], [POSTCODE]

Tenant Mrs [APPELLANT]

1. The rent is: £ 152.30 Per Week (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 10 April 2023

3. The amount included for services is £32.98 Per Week

4. Service charges are variable

5. Date assured tenancy commenced 3 December 2018

6. Length of the term or rental period Weekly

7. Allocation of liability for repairs Landlord

8. Furniture provided by landlord or superior landlord

9. Description of premises Ground floor sheltered flat comprising Living Room, Kitchen, Bedroom and Wet Room.

[NAME] of Decision 31 May 2023

© CROWN COPYRIGHT 2023

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : CHI/19UH/MNR/2023/0075 Property : 40 [ADDRESS] [POSTCODE]

Applicant Tenant : Mrs [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] Mrs [NAME] [NAME] of Inspection : None. Paper determination Date of Decision :

31st May 2023

DECISION

CHI/19UH/MNR/2023/0075

2

Summary of Decision 1. On 31st May 2023 the Tribunal determined a market rent of £152.30 per week to take effect from 10th April 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 23rd February 2023 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £111.13 per week in place of the existing rent of £100.03 per week to take effect from 10th April 2023. The notice complied with the legal requirements.

4. An accompanying letter to the Notice informed the Tenant that the variable service charge would also increase to £32.98 per week so that the total charge would be £144.11 per week from 10th April 2023.

5. On 28th March 2023 the Tenant applied to the Tribunal under Section 13(4) (a) of the Housing Act 1988.

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

7. The Tribunal issued directions on 19th April 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.

8. Both parties submitted papers which were also copied to the other party.

9. Neither party objected to the matter being determined without an oral hearing, so the Tribunal determined the case on 31st May 2023 based on the written representations received. The Property 10. From the information given in the papers and available on the internet the property comprises a ground floor sheltered flat set within a mixed residential area in the village of Martinstown, some 3.5 miles southwest of Dorchester. There are limited amenities in the village and no bus service.

11. The accommodation includes a canopy Porch, Living Room, Kitchen, Bedroom and Wet Room with WC. Outside there is off-street parking. Within the development there are communal gardens and a communal room. The property has central heating and double glazing.

CHI/19UH/MNR/2023/0075

3 12. The Tenant provides carpets, curtains and white goods. The Tenant is responsible for keeping the inside of the property clean and tidy. The communal room and grounds are serviced by the Landlord. Submissions 13. The initial tenancy began on 3rd December 2018, the agreement having been signed on 29th November 2018.

14. The Tenant states that the Bedroom suffers from damp/excess moisture, that the windows are original and not energy efficient and that the kitchen units are in poor condition. She supplied several photographs of the kitchen in support of this.

15. The Tenant also states that she is on a waiting list for 2-bedroom accommodation with Dorset Home Choice who charge cheaper rents. 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

CHI/19UH/MNR/2023/0075

4 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 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 16. 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.

17. 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. Market rents are normally expressed as a monthly figure. The personal circumstances of the parties are not relevant to this issue.

18. Having carefully considered the representations from the parties and associated correspondence and using its own judgement and knowledge of rental values in and around Dorchester, 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 £725 per month. This takes into account the lack of amenities.

19. However, the property is not let on the same terms as a normal open market letting and a number of adjustments need to be made to reflect this, although the Tribunal cannot take into account the personal circumstances of either party.

20. Using its experience, the Tribunal decided that an adjustment of £30 per month should be made to reflect the Tenant’s provision of white goods, £15 per month

CHI/19UH/MNR/2023/0075

5 for floorings, £5 per month for curtains and £15 per month for repair issues. A total deduction of £65 per month.

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 £660 per month which equates to £152.30 per week including the cost of the services provided.

23. The Tribunal is aware that this rent is higher than the rent requested by the Landlord. There is no obligation on the Landlord to charge this higher figure.

24. The Tribunal directed that the new rent of £152.30 per week should take effect from 10th April 2023, this being the date specified in the Notice.

25. It should be noted that the tenancy contains a variable service charge within the meaning of section 18 of the Landlord and Tenant Act 1985. It follows that in accordance with Housing Act 1988, section 14(4) the rent determined by the Tribunal for this application is exclusive of that service charge which will therefore be recoverable in addition to the rent determined.

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.