First-tier Tribunal Determines Market Rent for Property

OUTCOME: Allowed

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FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : CAM/00MD/MNR/2024/0610 HMCTS code : V:CVPREMOTE

Property : 97 [ADDRESS], [POSTCODE] Applicant (Tenant) : [NAME] and [NAME] Respondent (Landlord) : [RESPONDENT] of application : Determination of a Market Rent: Sections 13 and 14 Housing Act 1988 Tribunal members : Mr [NAME] [NAME] of Determination : 20 February 2025

DECISION

The Hearing was held by means of CVP video conferencing. The documents that the Tribunal was referred to are in bundles from the Applicant and the Respondent. The Tribunal has noted the contents and the decision is below.

2

Decision The Tribunal determined a market rent of £1,975 per calendar month effective from 23 November 2024.

Reasons Background

1. On 19 October 2024, the Landlord served notice under section 13 (2) of the Housing Act 1988 to increase the passing rent from £1,800 per calendar month (pcm) to £2,050 per month with effect from 23 November 2024.

2. This rent is stated to be exclusive of Council Tax, Water Charges and fixed service charges.

3. The Tenant made an application dated 17 October 2024 to the Tribunal in reliance on section 13 (4) of the Housing Act 1988.

4. The Tribunal issued directions on 24 October 2024, inviting the Parties to submit any further representations (including any photographs and details of rentals for similar properties) they wished the Tribunal to consider.

[NAME]

5. The Tribunal did not inspect [NAME] but has relied upon the representations of the Parties together with information in the public domain including Google Earth Pro. 6. [NAME] comprises an end terraced house of brick and tile construction providing WC, kitchen, utility and lounge at ground floor level together with three bedrooms and family bathroom at first floor. There is a garage together with external car parking and a garden to the rear. 7. [NAME] has central heating and UPVC double glazing throughout. The Tenancy 8. The Tenant occupied [NAME] by virtue of an Assured Shorthold Tenancy that commenced 23 December 2021 for a term of 12 months.

9. The rent reserved under this Tenancy was £1,595pcm.

10. The Tenant’s obligations are set out within the Tenancy at Section 1. The Tribunal has had regard to the provisions set out therein.

3 11. The Landlord’s obligations are set out in Section 2. In this regard, the Landlords’ obligations in respect of the maintenance of [NAME] and appliances are set out in clauses 2.4 and 2.5 respectively. The Tribunal notes clause 2.4 (ii) which seeks to make the Landlord’s liability conditional upon the Tenant providing written notice and would remind the Landlord that these are statutory obligations. The Law 12. Section 5 (3) of the Act provides that the periodic tenancy arising on expiry of the Assured Shorthold Tenancy is one: “(a) taking effect in possession immediately on the coming to an end of the fixed term tenancy; (b) deemed to have been granted by the person who was the landlord under the fixed term tenancy immediately before it came to an end to the person who was then the tenant under that tenancy; (c) under which the premises which are let are the same dwelling- house as was let under the fixed term tenancy; (d) under which the periods of the tenancy are the same as those for which rent was last payable under the fixed term tenancy; and (e) under which, subject to the following provisions of this Part of this Act, the other terms are the same as those of the fixed term tenancy immediately before it came to an end, except that any term which makes provision for determination by the landlord or the tenant shall not have effect while the tenancy remains an assured tenancy” 13. Section 14 (1) of the 1988 Act provides that the Tribunal is required to determine the rent at which [NAME] might reasonably be expected to let in the open market by a willing landlord under an assured tenancy: a. “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 rent) are the same as those of the existing tenancy.” 14. Section 14 (2) of the 1988 Act requires the Tribunal to disregard: a. “Any effect on the rent attributable to the granting of a tenancy to a sitting tenant;

4 b. Any increase in the value of the dwelling-house attributable to a relevant improvement (as defined by section 14 (3) of the Act) otherwise than as an obligation; 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.” 15. Section 11 of the Landlord and Tenant Act 1985 (the 1985 Act), provides that the Tribunal is to imply a covenant by the Landlord: a. “to keep in repair the structure and exterior of the dwelling- house (including drains, gutters and external pipes), b. to keep in repair and proper working order the installations in the dwelling-house for the supply of water, gas and electricity and for sanitation (including basins, sinks, baths and sanitary conveniences, but not other fixtures, fittings and appliances for making use of the supply of water, gas or electricity), and c. to keep in repair and proper working order the installations in the dwelling-house for space heating and heating water.” 16. Section 14 (7) of the 1988 Act states: “Where a notice under section 13(2) above has been referred to the appropriate tribunal, then, unless the landlord and the tenant otherwise agree, the rent determined by the appropriate tribunal (subject, in a case where subsection (5) above applies, to the addition of the appropriate amount in respect of rates) shall be the rent under the tenancy with effect from the beginning of the new period specified in the notice or, if it appears to the appropriate tribunal that that would cause undue hardship to the tenant, with effect from such later date (not being later than the date the rent is determined) as the appropriate tribunal may direct.” Representations – The Tenant 17. The Tenant provided copies of emails which set out various items of historic disrepair and dealings with the Landlord including an Improvement Notice.

18. It was apparent that the Tenant was concerned with the level of rent increase being sought by the Landlord and wished to highlight disrepair and maintenance matters. Representations – The Landlord 19. The Landlord completed the Reply Form and attached an Inspection Report dated 4 September 2024, a copy of the Rightmove Property Listing dated December 2020 of [NAME], copies of Rightmove

5 listings for other properties and emails from [NAME] and [NAME] in respect of current opinions of rental value as set out below: a. Mr [NAME] of [NAME] advised by way of email dated 17 September 2024, a range of £1,800 to £2,150 per month with a suggested asking price of £1,995 per month. b. [NAME] [NAME] advised, by way of email dated 19 September 2024, a range of £2,000 to £2,200 per month. 20. [NAME] nor [NAME] [RESPONDENT] appear to have inspected [NAME].

21. The Landlord also made submissions in response to the Tenant’s concerns regarding previous engagement with the Tenant and matters of disrepair. Determination 22. The Tribunal has had regard to all the correspondence and evidence provided by the Parties but is unable to refer to or make observations in respect of each point and document provided to it.

23. In determining the market rent, the Tribunal has regard to prevailing levels of rent in the general locality and achieved rental values in respect of other properties of comparable accommodation and provision that would be likely to be considered by a [NAME]. The current rent, and the period that has passed since that rent was agreed or determined is not relevant.

24. Previous changes in rent are not, therefore, relevant as the Tribunal is required to assess the rent that would be offered by a [NAME] who has no knowledge of the existing or previous rents. Similarly, historic rents achieved elsewhere are of limited relevance.

25. The legislation requires the Tribunal to have regard to market demand assuming that the landlord is willing. The Tribunal is unable to have any regard to the personal circumstances or identities of the actual landlord and tenant in assessing the level of rent.

26. It is therefore irrelevant whether or not the Landlord requires the rent to be at a certain level to fund its liabilities and/or its repair obligations under the lease or whether the Tenant feels that the services provided by the Landlord are “value for money.” As such, the cost of property maintenance to the Landlord does not affect the rent that would be offered by a [NAME] in the market and must be disregarded.

27. The Tenant accepted that the matters of disrepair set out in their representations together with those issues set out in the Improvement Notice have been addressed such that, save for the boiler recently breaking, there are no outstanding issues.

6 28. The Parties brought the Tribunal’s attention to [ADDRESS] which is currently on the market at an asking rent of £1,900 per month. The Tribunal has considered this evidence whilst mindful of the differences between the properties (e.g., the lack of a garage), the fact that this is an asking rather than agreed rent and recent market movements since the proposed effective date set out in the section 13 (1) Notice.

29. The Tribunal has reviewed all the evidence provided and determines the market rental of [NAME] to be £1,975 pcm. The rent payable may not, therefore, exceed this figure. However, this does not prevent the Landlord from charging a lower figure.

30. This rent is effective from 23 November 2024. Name: [NAME] [NAME]: 20 February 2025

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 application for permission must be made to the First-tier Tribunal at the regional office which has been dealing with the case. The application for permission to appeal must arrive at the regional office within 28 days after the tribunal sends written reasons for the decision to the person making the application. If the application is not made within the 28-day time limit, such application 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 application for permission to appeal to proceed, despite not being within the time limit. The application for permission to appeal must identify the decision of the tribunal to which it relates (i.e., give the date, [NAME], and the case number), state the grounds of appeal and state the result the party making the application is seeking. If the tribunal refuses to grant permission to appeal, a further application for permission may be made to the Upper Tribunal (Lands Chamber).

MR22 First-tier Tribunal – Property Chamber File Ref No. CAM/MD/MNR/2024/0610

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 97 [ADDRESS], [POSTCODE]

[NAME] [NAME]

Landlord [NAME] [NAME], 188 [ADDRESS], [POSTCODE]

Tenant UK [NAME]

1. The rent is: £ 1,975 Per month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 23 November 2024

3. The amount included for services is

not applicable Per

4. Date assured tenancy commenced 23 December 2021

5. Length of the term or rental period 12 months

6. Allocation of liability for repairs Tenant liable for internal repairs. LL to comply with s11 LTA 1985

8. Furniture provided by landlord or superior landlord N/A

9. Description of premises [NAME] comprises an end terraced house of brick and tile construction providing WC, kitchen, utility and lounge at ground floor level together with three bedrooms and family bathroom at first floor. There is a garage together with external car parking and a garden to the rear. [NAME] has central heating and UPVC double glazing throughout.

Chairman P [NAME] of Decision 20 February 2025