First-tier Tribunal Determines Fair Market Rent for Tenant's Property

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. HAV/00MS/MNR/2025/0699

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 24 [ADDRESS] [POSTCODE]

[NAME] Mr [RESPONDENT]

Landlord Ms [RESPONDENT] c/o [RESPONDENT] t/as [NAME] (Winchester & Salisbury) [COMPANY], [ADDRESS], [POSTCODE]

Tenant Ms [APPELLANT] [NAME]

1. The rent is: £ 905.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 30 May 2025

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

4. Date assured tenancy commenced 30 October 2017

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 Third floor 2-bedroom flat.

[NAME] of Decision 28 July 2025

© CROWN COPYRIGHT 2025

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : HAV/00MS/MNR/2025/0699 Property : 24 [ADDRESS] [POSTCODE]

Applicant Tenant : Ms [COUNSEL] :

None

Respondent Landlord : [COUNSEL] : [RESPONDENT] t/a [NAME] :

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

Tribunal Members : Mr [NAME] Mr [NAME] of Application : 22nd May 2025 Date of Decision : 28th July 2025

DECISION

The Tribunal determines a rent of £905 per calendar month with effect from 30th May 2025.

HAV/00MS/MNR/2025/0699

SUMMARY REASONS

Background 1. On 4th April 2025 [NAME] served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £1,100 per month in place of the existing rent of £725 per month to take effect from 30th May 2025.

2. On 22nd May 2025 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 Tenant and [NAME]. 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 determines that the open market rent for the property in good tenantable condition would be £1,150 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.

7. In this case the property is not let in such condition or with white goods, carpets and curtains all supplied so some adjustments to the ‘open market rent’ are necessary. In particular the Tribunal has made the adjustments for carpets/flooring, curtains, white goods, dated kitchen, general wants of repair including bath panel.

8. The full valuation is shown below: Full open market rent in good condition £1,150 Less deductions for:- [NAME] provision of white goods

£20 [NAME] provision of carpets/flooring

£40 [NAME] provision of curtains

£10 Dated kitchen

£100 General wants of repair

£75

HAV/00MS/MNR/2025/0699

____ TOTAL RENT PAYABLE PER MONTH

£905

9. 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 £905 per month.

10. 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.

11.

Accordingly, the Tribunal directed that the new rent of £905 per month should take effect from 30th May 2025 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

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : HAV/00MS/MNR/2025/0699 Property : 24 [ADDRESS] [POSTCODE] Applicant Tenant : Ms [COUNSEL] :

None

Respondent Landlord : [COUNSEL] :

[RESPONDENT] t/a [NAME] :

Tribunal Members : Mr [NAME] Mr [NAME] of Inspection : None, determined on the papers

Date of Decision

:

26th July 2025

DECISION

HAV/00MS/MNR/2025/0699 2

Summary of Decision

1. On 26th July 2025 the Tribunal determined a market rent of £905 per month to take effect from 30th May 2025.

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 4th April 2025 [NAME] served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £1,100 per month, in place of the existing rent of £725 per month, to take effect from 30th May 2025. The notice complied with the legal requirements.

4. On 22nd May 2025 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. On 6th June 2025 the Tribunal issued Directions 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] and the Tenant submitted papers by the specified dates setting out their respective case. The papers were also copied to the opposing Party.

8. The Tribunal determined the case on 26th July 2025 based on the 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

(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

HAV/00MS/MNR/2025/0699 3 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 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

HAV/00MS/MNR/2025/0699 4 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 third floor flat within a purpose built 4-storey block of similar flats on the northern side of Southampton.

11. The block is elevated above the road at the front with steps up from the pathway but has a level approach from the south side of the block.

12. There is a wide range of amenities within the city.

13. The accommodation comprises a Hall, Living Room, Kitchen, 2 Bedrooms, Bathroom and a Store.

14. The property has gas-fired central heating and double-glazed windows. The Energy Performance Rating is ‘C’.

15. The building has rendered elevations beneath a tiled roof. There is no outside space or parking. Submissions 16. The initial tenancy began on 30th October 2017 at a rent of £650 per month.

17. The Agent’s submission states that a cooker is provided but carpets and curtains are provided by the Tenant.

18. The Agent continues to list changes made in the last 6 years including a new boiler in 2021 but also states that a new kitchen and front door are planned but not yet fitted. Flooring to the kitchen and bathroom was replaced in 2024.

19. The Agent states that rents in [ADDRESS] range from £900 to £1,300 per month and quotes 2 nearby lettings at £1,250 and £1,300 per month.

20. The Agent also provides a Property Condition Report prepared by [NAME] on 20th March 2025 which includes several photographs showing a rather dated kitchen with flaking paint, and scaffolding to the outside of the building but otherwise the property seems to be in reasonable order.

21. The [NAME] statement confirms the Agent’s comments as to maintenance and replacement flooring but states that the kitchen flooring is badly fitted.

22. The Tenant states that she has repainted walls affected by fungus and lists other repair issues and includes photographs taken on 18th June 2025 which show general wants of repair throughout the flat including the ‘tired’ kitchen fittings.

23. The Tenant also includes a surveyor’s report dated 15th February 2024 with photographs. The report describes the store as a third bedroom and suggests a number of remedial works including a kitchen refit, new flooring to the

HAV/00MS/MNR/2025/0699 5 bathroom, treatment of walls for fungus/mould and increased ventilation or use of a mobile dehumidifier to reduce condensation and resultant mould.

Consideration and Valuation

24. 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.

25. 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.

26. Having carefully considered the representations from the parties and associated correspondence and using its own judgement and knowledge of rental values in Southampton 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 £1,150 per month.

27. Such an open market letting would be for a tenantable property in good order with the Landlord responsible for internal decoration and on the basis that carpets, curtains and white goods would all be provided by the Landlord.

28. This is not the case with this property, so the Tribunal needs to adjust the rent to reflect the [NAME] provision of some white goods, curtains and some flooring.

29. In addition, the Tribunal needs to reflect the dated kitchen and general wants of repair throughout.

30. Using its experience the Tribunal decided that the following adjustments should be made: [NAME] provision of white goods £20 [NAME] provision of carpets/flooring £40 [NAME] provision of curtains/blinds £10 Dated kitchen £100 General wants of repair £75

____ TOTAL deductions per month £245

31. 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 32. 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 £905 per month.

HAV/00MS/MNR/2025/0699 6 33. The Tribunal directed that the new rent of £905 per month should take effect from 30th May 2025, 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.