First-tier Tribunal Determines Fair Rent for Property

OUTCOME: Allowed in Part

Case Reference : CAM/22UK/F77/2024/0014

P:PAPERREMOTE

Property : 3 Lodge Farm Cottages Woodham Walter Maldon Essex [POSTCODE]

Applicant: [redacted]

Respondent: [redacted] : 10 April 2024

Type of [NAME] : Determination of the registered rent under Section 70 Rent Act 1977

Tribunal

: Mrs [NAME] and venue of : 22 July 2024 Hearing

remote on the papers after an

external inspection

_______________________________________________

DECISION ____________________________________

This has been a hearing on the papers which has been consented to by the parties. A face to face hearing was not held because no-one requested the same. The documents that I was referred to were in an electronic bundle the contents of which we have recorded. The registered rent with effect from 22 July 2024 is £765 per month.

© CROWN COPYRIGHT

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Background

1. On 28 January 2024 the landlord applied to the rent officer for registration of a fair rent of £857.50 per month for the above property.

2. The registered rent at the date of the [NAME] was £725 per month which had been registered by the rent officer on 27 April 2022 with effect from the same date.

3. On 28 March 2024, the rent officer registered a fair rent of £765 per month. with effect from 27 April 2024.

4. The landlord objected to the registered rent on 10 April 2024.

5. The tribunal issued Directions on 22 May 2024. Written representations were received from both the landlord and the tenant.

The Inspection

6. I inspected the property externally with the permission of the tenant as he was not able to be present and stated that he had not received notification of my appointment.

7. The property is a semi-detached house set in a large garden of approaching half an acre, which is laid mainly to lawn with a small orchard area to the side. It is situated approximately eight miles from Chelmsford and Witham railway stations and three miles from Maldon town centre.

8. Access is via an unmade track leading to Lodge Farm. The property overlooks open land. There was a single garage to the left of the house, the roof had a number of slipped and broken tiles.

9. Externally the decorative order of both the house and garage is poor. There were broken tiles on the steps leading up to the front door, an entire row of tiles was missing from the step to the side door. The windows are single glazed Crittall style windows. The timber front door is in poor condition.

10. The accommodation comprises living room, kitchen/diner and wc on the ground floor and two double and one single bedroom and bathroom on the first floor.

The Evidence

11. The landlord stated that the maximum fair rent had not been registered for a number of years. If the maximum fair rent had been registered on each occasion the rent would be higher. The current fair rent was too low.

12. The landlord agreed that it was appropriate to make deductions for no central heating, unmodernised kitchen and bathroom, single glazed windows and no floor coverings or white goods. However, the landlord did not agree that there should be any deduction for being a rural property or scarcity.

13. The landlord stated that at the time of writing (June 2024) there were ten houses to rent within the CM9 postcode area, three of which were new build to rent, ignoring those the average rent was £1599 per month. However, of those, three were detached, two estate houses, one terraced and one a rural semi-detached house but without a garage. The rent for latter was £1,195 per month.

14. The tenant stated that he had supplied the fitted kitchen and provided a wash basin to the ground floor wc. There was no wc on the first floor.

The Law

15. When determining a fair rent the tribunal, in accordance with section 70 of the Rent Act 1977, must have regard to all the circumstances including the age, location and state of repair of the property. It also must disregard the effect of any relevant tenant’s improvements and the effect of any disrepair or any other defect attributable to the tenant or any predecessor in title under the regulated tenancy, on the rental value of the property. The Tribunal is unable to take into account the tenant’s personal circumstances when assessing the fair rent.

16. In [COMPANY] v Chairman of the Greater Manchester etc Committee (1995) 28 HLR 107 and [NAME] v [NAME] (1999) QB 92 the Court of appeal emphasised:

That ordinarily a fair rent is the market rent for the property discounted for scarcity i.e. that element, if any, of the market rent, that is attributable to there being a significant shortage of similar properties in the wider locality available for letting on similar terms to that of a regulated tenancy, and

That for the purposes of determining the market rent, assured tenancy market rents are usually appropriate comparables; adjusted as necessary to reflect any relevant differences between the comparables and the subject property.

Valuation 17. In the first instance I determined what rent the landlord could reasonably be expected to obtain for the property in the open market if it were let today in the condition and on the terms considered usual for such an open market letting. I relied on the landlord’s comparables and my own general knowledge of rental values in this part of mid Essex and concluded that the likely market rent for the property in fully refurbished condition would be £1400 per month.

18. However, it was first necessary to adjust the hypothetical rent of £1400 to allow for the differences between the terms and condition considered usual for such a letting and the condition of the actual property at the

valuation date, ignoring any tenant’s improvements, (disregarding the effect of any disrepair or other defect attributable to the tenant or any predecessor in title). I determined that the hypothetical rent should be reduced by £550 to reflect the condition of the property including the single glazed windows, the lack of central heating, modernisation, floor coverings and white goods and the terms and conditions of the tenancy.

19. This leaves an adjusted market rent for the subject property of £850 per month. I am of the opinion that there is substantial scarcity for similar properties within commuting distance of the mainline stations in Essex and therefore made a deduction of 10% from the adjusted market rent to reflect this element. The uncapped fair rent is £765 per month. Decision

20. The uncapped fair rent initially determined by me, for the purposes of section 70, is below the maximum fair rent of £873.50 under the Rent Acts (Maximum Fair Rent) Order 1999. Therefore, the rent will not be capped under the provisions of the Order.

19. Accordingly, the sum of £765 per month will be registered as the fair rent with effect from 22 July 2024 being the date of my decision.

Chairman: [NAME]: 22 July 2024

ANNEX - RIGHTS OF APPEAL

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 may 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 the case. The [NAME] should be made on Form RP PTA available at https://www.gov.uk/government/publications/form-rp-pta-[NAME]-for- permission-to-appeal-a-decision-to-the-upper-tribunal-lands-chamber 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. Please note that if you are seeking permission to appeal against a decision made by the Tribunal under the Rent Act 1977, the Housing Act 1988 or the Local Government and Housing Act 1989, this can only be on a point of law. If the First-tier Tribunal refuses to grant permission to appeal, a further [NAME] for permission may be made to the Upper Tribunal (Lands Chamber).