First-tier Tribunal Determines Fair Market Rent for Assured Tenancy

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. CHI/00ML/MNR/2022/0036

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] Mr [RESPONDENT] [NAME]

Landlord [NAME] c/o [NAME], 45 [ADDRESS], [POSTCODE]

Tenant Mr [APPELLANT]

1. The rent is: £ 580.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 15 April 2022

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

4. Date assured tenancy commenced 27 August 2011

5. Length of the term or rental period Monthly

6. Allocation of liability for repairs Landlord

7. Furniture provided by landlord or superior landlord None

8. Description of premises Bedsitting room, kitchenette, shared showers and WC.

[NAME] of Decision 8 June 2022

© CROWN COPYRIGHT 2022

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : CHI/00ML/MNR/2022/0036 Property :

[ADDRESS] [POSTCODE]

Landlord : Mr [COUNSEL] H & Miss [COUNSEL] R [COUNSEL] :

[NAME]

Tenant : Mr [COUNSEL] : None Type of Application :

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

Tribunal Members :

Mr [NAME] Mr [NAME] [NAME] of Inspection : None. Paper determination

Date of Decision

:

8th June 2022

DECISION

CHI/00ML/MNR/2022/0036 2

Summary of Decision

1. On 8th June 2022 the Tribunal determined a market rent of £580 per month to take effect from 15th April 2022. 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 14th February 2022 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £580 per month in place of the existing rent of £495 per month to take effect from 15th April 2022. The notice complied with the legal requirements.

4. On 1st April 2022 the Tenant applied to the Tribunal under Section 13(4) (a) of the Housing Act 1988.

5. The Coronavirus pandemic and considerations of health have caused a suspension of inspections and Tribunal hearings in person until further notice.

6. The Tribunal issued directions on 19th April 2022 informing the parties that the Tribunal intended to determine the rent based on written representations and that the Tribunal would seek to view the property on the internet. The parties were invited to make submissions which could include photographs or videos. The Landlord was ordered to send any documentation to the Tenant by 3rd May 2022 and the Tenant was ordered to respond by 17th May 2022.

7. Both parties submitted papers which had been copied to the other party.

8. On 6th June 2022 the Landlord made an application for an amendment to the Tribunal’s directions “in view of the unexpected dispute over condition of the property” and sought to include an inventory dated 14th January 2021. The Property 9. From the information given in the papers and available on the internet the subject property comprises a single room on the ground floor of a three-storey end terrace property that has been converted into a House of Multiple Occupation.

10. Within the property there are seven let rooms each comprising a Bed/Sitting room with shared shower and WC facilities. Each room contains a Kitchen area. The shower rooms were refurbished in 2018.

11. Room 3 is let with carpets and curtains included and a Kitchen area with sink, cooker and fridge. Heating, hot water, rates and water rates are all

CHI/00ML/MNR/2022/0036 3 included within the rent. There is metered electricity to the room paid for by the Tenant.

12. The property is some 200 metres from the seafront/beach and all main amenities are within a reasonable distance. Submissions 13. Both parties submitted helpful photographs of the inside of the room, the interior of the building and the external elevation.

14. The Landlord also submitted a valuation letter from a local letting agent and details of other properties to let in the general area ranging from £568 per month to £800 per month. Some of these properties were studio flats with their own bathroom facilities and some were for similar bedsitting rooms ranging from £600 per month to £650 per month.

15. In his application the Tenant states that the kitchen unit in his room is close to collapse, his cooker glass is broken, and his window locks are partially broken. He also refers to an external repair issue with an upper floor window. 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 willing landlord 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-

CHI/00ML/MNR/2022/0036 4 (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 [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 16. The first decision the Tribunal needed to make was whether to allow further submissions from the Landlord, namely an inventory from January 2021.

17. As no objection to the original Directions had been received from either party in time, and no evidence had come to light that was not available when the original submissions were made, the Tribunal determined that it would not extend the time given within the original directions and would decide the case based on the documents already received.

18. The Tribunal then 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.

19. 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

CHI/00ML/MNR/2022/0036 5 willing Landlord under an assured tenancy. The personal circumstances of the Tenant are not relevant to this issue.

20. Having carefully considered the representations from the parties and associated correspondence and using its own judgment and knowledge of rental values in the Brighton area, the Tribunal decided that the market rent for the subject property if let today in as good condition that was usual for such an open market letting would be £630 per month.

21. However, the property is not in a condition that would command such a rent and adjustments need to be made to this ‘open market’ rent to take account of the poor external condition as evidenced by the photographs provided by both parties, and to reflect the repair issues within Room 3 itself.

22. Using its experience the Tribunal decided that the following adjustments should be made: Broken cooker glass to Room 3 £10 Disrepair to Kitchen unit/sink and window catches £20 General disrepair to outside of building £20

____ TOTAL per month £50

23. 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 24. 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 willing Landlord under the terms of this assured tenancy was £580 per month.

25. The Tribunal directed that the new rent of £580 per month should take effect from 15th April 2022, 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.

CHI/00ML/MNR/2022/0036 6 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.