First-tier Tribunal Determines Fair Market Rent for London Property

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. GB/LON/00AJ/MNR/2024/0079

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 176C [ADDRESS], [POSTCODE]

[NAME]

[RESPONDENT] 72-74 [ADDRESS], [POSTCODE]

[APPELLANT] [NAME]

1. The rent is: £900.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 26 July 2024

*3. The amount included for services is/is

negligible/not applicable Nil Per

*4. Service charges are variable and are not included

5. Date assured tenancy commenced 5th August 2015

6. Length of the term or rental period Monthly

7. Allocation of liability for repairs Landlord repairs

8. Furniture provided by landlord or superior landlord None

9. Description of premises A self contained bedsitting room flat of 12 m2 approximately with kitchen and bathroom / wc

Chairman [NAME] of Decision 26 July 2024

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case Reference : GB/LON/00AJ/MNR/2024/0079

Hearing Type : By way of Written Representation

Property : 176C [ADDRESS] [POSTCODE]

Applicant: [redacted] : Not applicable.

Respondent : [redacted]

Representative : Not applicable.

Type of [NAME] : Referral in Respect of Market Rent Under Section 13 of the Housing Act 1988

Tribunal Members : [NAME] Chairman

Date of Hearing : 26th July 2024

Date of Full Reasons : 26th July 2024

STATEMENT OF FULL REASONS ON AN [NAME] FOR DETERMINATION OF A MARKET RENT UNDER S. 13 AND 14 OF THE HOUSING ACT 1988.

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REASONS

Background

1. On 5 February 2024 the Landlord served a Notice under Section 13(2) of the Housing Act 1988 proposing an increase in the rent of the above property from the passing rent of £1,053.78 per month to £1,150.00 per month.

2. On 19 February 2024 the [APPELLANT] made an [NAME] to the Tribunal for the determination of a market rent.

3. On 23 April 2024 the Tribunal wrote to the parties requesting a copy of a tenancy agreement.

4. The original tenancy was believed to have begun 5 August 2015.

5. By way of a letter dated 23 April 2024, the Tribunal issued directions. These required the Landlord to provide details of evidence on which they wished to rely by way of reply by 14 May 2024. The [APPELLANT] was directed to do the same by 28 May 2024 and the Landlord was given until 4 June 2024 for his response thereto.

6. Both parties took the opportunity to make submissions.

7. In consideration of the market rental value of the subject property, the Tribunal has taken into consideration all documentation before it including various letters and any reply forms returned by the parties.

8. By way of a letter / email dated 23 April 2024, the [APPELLANT] stated that the property has no central heating and carpets and curtains were not supplied but the property is double-glazed.

9. The [APPELLANT]’s reply form does not contain any details of any defects or improvements that the [APPELLANT] has made to the property.

10. The [APPELLANT] confirmed that they did not require a hearing nor an inspection to be undertaken.

11. In the Landlord’s reply form, the Landlord states that the property does have central heating and that they have provided carpets and curtains.

12. They also point out that the property has a parking space.

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13. In an email dated 10 May 2024, and reiterated on the Landlord’s reply form the Landlord states that they no longer wish to increase the rent of the above property and wished to withdraw their notice.

14. The Tribunal wrote to the parties on this particular issue in an email dated 9th July 2024 and specifically asked in light of this whether the [APPELLANT] wished to withdraw their [NAME].

15. By way of an email to the Tribunal dated 9th July 2024 the Tribunal confirmed that they did not wish to withdraw their [NAME] and wished the Tribunal to proceed with its determination of an open market rent for the property.

16. No response was received from the Landlord .

17. Taking into consideration the opposing position of each of the parties, the Tribunal is of the opinion that it continues to have Jurisdiction as a result of the [APPELLANT]’s [NAME] which has not been withdrawn.

18. As a result the Tribunal continued to determine the [NAME] and make an assessment of the market rent on 26th July 2024

The Law

19. When determining a market rent in accordance with the Housing Act 1988 Section 13 regard must be had to all of the circumstances (other than personal circumstances) including the age, location and state of repair of the property, matters contained within the rent, repairing obligations, etc. This means that issues such as the tenants ability to pay the rent or bills associated with the property are not a consideration for the tribunal in assessing the rent.

Valuation

20. The Tribunal understands that the property comprises a top floor flat in a building understood to comprise a commercial unit on the ground floor with the remainder to the rear and upper floors converted to a number of residential units. The subject property is understood to comprise:

A self-contained flat of approximately 12m2 , a bedsitting room, kitchen and bathroom/wc.

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21. Following consideration of the written submissions given by both parties, and using the Tribunals own knowledge and experience of the rental market in the suburbs of London , the Tribunal finds that the market rental value of the property would be £900 per month .

Valuation calculation

22. Open market rent £900 per month

Deduction for adjustments detailed above £ Nil

The Tribunal therefore determines that the market rental value of the property should be set at a figure of £900 per month.

Chairman:

[NAME] Chairman

Date: 26th July 2024

ANNEX OF RIGHTS FOR MARKET RENTS

By Rule 36(2) of the Tribunal procedure, (First-tier Tribunal) (Property Chamber) Rules 2013 the Tribunal is required to notify the parties about any right of appeal they might have.

If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber), then a written [NAME] for permission must be made to the First-tier Tribunal at the regional office which has been dealing with this case

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The [NAME] for permission to appeal must arrive at the regional office within 28 days after the Tribunal sends written reasons for the Decision to the [NAME].

If the [NAME] is not made within the 28 day time limit, such [NAME] must include a request for an extension of time and the reason for not complying with the 28 day time limit; the Tribunal will then look at such reason(s) and decide whether to allow the [NAME] for permission to appeal to proceed, despite not being within the time limit.

The [NAME] for permission to appeal must identify the decision of the Tribunal to which it relates (i.e. give the date, the property, and the case number), state the grounds of appeal and state the result the party [NAME] the [NAME] is seeking. Any appeal in respect of the Housing Act 1988 should be on a point of law.

If the Tribunal refuses to grant permission to appeal, a further [NAME] for permission may be made to the Upper Tribunal (Lands Chamber).