First-tier Tribunal Determines Market Rent for Property

© CROWN COPYRIGHT

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : CAM/33UG/MNR/2023/0098 HMCTS code : P:PAPERREMOTE

Property : 24 [ADDRESS], [POSTCODE] Applicant (Tenant) : [NAME_1] Respondent (Landlord) : [NAME_3] (represented by [NAME_6] [NAME_8])

Type of application : Determination of a Market Rent: Sections 13 and 14 Housing Act 1988 Tribunal members : [NAME_10] [NAME_12] Date of Determination : 25 September 2023

This has been a remote determination on the papers which the parties are taken to have consented to, as explained below. The form of determination was a paper determination described above as P:PAPERREMOTE 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.

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Decision The Tribunal determined a market rent of £1,375 per month effective from 1 August 2023.

Reasons Background

1. The Landlord served an undated notice pursuant to section 13 (2) of the Housing Act 1988 to increase the passing rent from £1,600 per month to £1,650 per month with effect from 1 August 2023.

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

3. The Tenant made an application on 19 July 2023 to the Tribunal in reliance on section 13 (4) of the Housing Act 1988.

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

5. The Tribunal did not inspect the Property and relied upon the evidence of the Parties in this regard together with independent investigations of publicly accessible information.

Preliminary Issues 6. Section 13 (2) of the Housing Act 1988 requires, for the purposes of securing an increase in the rent: “…a notice in the prescribed form proposing a new rent to take effect at the beginning of a new period of the tenancy specified in the notice, being a period beginning not earlier than— (a) the minimum period after the date of the service of the notice.” 7. In addition, the prescribed form provides a box for the insertion of a date and Guidance Note 13 states “You or your agent… …must sign and date this notice.” 8. The section 13 (2) Notice was undated and it is therefore necessary for the Tribunal to consider whether it should proceed with this matter.

3 9. This Tribunal does not have jurisdiction to determine the validity of section 13 (2) notices and this is a matter for the County Court. However, paragraph 48 of the Court of Appeal Decision in Mooney v Whiteland [2023] EWCA Civ 67 states:

“That is not to say that a rent assessment committee may not sometimes need to take a view whether a notice is valid. If it considers that a notice is invalid, it may decline to proceed until the question has been determined by the court. Conversely, if it considers that a notice is valid and that objections are without substance, it may proceed to determine the appropriate rent, but its determination will not prevent a tenant from disputing the validity of the notice.”

10. The Tribunal understands from the Tenant that the section 13 (2) Notice was received on 27 June 2023 such it is not disputed that the Landlord has provided the requisite notice as required by statute.

11. The Tribunal is therefore of the opinion that, although the Landlord has not dated the section 13 (2) Notice as expressly required, it was, on the basis of the Tenant’s confirmation, served within the statutory timescales and the Tribunal can proceed.

12. However, as set out in the Mooney case, this does not preclude the Tenant from challenging the validity of the Landlord’s notice at the County Court should they decide to do so.

The Property 13. The Tribunal understands from the Parties’ representations that the Property comprises a modern detached house providing a kitchen/diner, WC, porch, office (external access) and lounge at ground floor level and three bedrooms with family bathroom at first floor level. There is also a garden to the rear and garage to the side with extensive open car parking at the front.

14. The Property benefits from underfloor heating, central heating, double glazing, carpets, modern bathroom suite and a full suite of white goods to the kitchen.

15. The Tribunal notes from Google images that there was previously a garage set back from the house and a car port in the position of the current garage. However, it appears from the on-line Rightmove Sales Particulars that the former garage was converted into the office and the former car port was converted into the garage.

16. There is no evidence of a planning application having been submitted to Broadland District Council (the Local Planning Authority) but, as far as it is material to the immediate matter, the Tribunal has assumed that these alterations fell under permitted rights and/or are protected from

4 enforcement due to the effluxion of time such that the Tenant is entitled to full lawful use thereof.

17. In addition, the Tribunal has, by comparing historic Google Images (i.e., July 2008) with the Rightmove Sales Particulars, concluded that the images and floor plans available on Rightmove do not relate to the previous sale but are more recent. However, the Tribunal also notes that the Property is shown in the photographs as being entirely vacant and devoid of furniture which suggests that the Tenant was not in occupation as at the date of these photographs.

18. The Tribunal has relied upon a combination of the statements made by the Parties to the Tribunal, the Rightmove details, Google images and the “as existing” floor plans submitted to the Local Planning Authority by the Landlord in 2016 in respect of a refused planning application for a single storey front extension (ref: 20161137).

19. The EPC rating for the Property is C with effect from 15 June 2020 and the assessed floor area is 144 sqm. The Tenancy 20. The Tenant took occupation pursuant to an Assured Shorthold Tenancy commencing 1 September 2022 for a term of 6 months.

21. The initial rent under this Tenancy was £1,600 per month to be paid on the 29th of each month.

22. Clause 11.1 of the AST required the Tenant: “To take reasonable steps to keep the interior of the Premises and the Fixtures and Fittings in the same decorative order and condition throughout the Term as at the start of the Tenancy as noted in the inventory and Schedule of Condition. The Tenant is not responsible for the following  fair wear and tear;  any damage cause by fire…  repairs for which the Landlord has responsibility (these are set out in clause 27.3 of this Agreement)  damage covered by the Landlord’s insurance policy.” 23. Clause 27.3 requires the Landlord: “To comply with the obligations to repair the Premises as set out in sections 11 to 16 of the Landlord and Tenant Act 1985...”

5 The Law 24. 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” 25. Section 14 of the 1988 Act provides that the Tribunal is required to determine the rent at which the Property 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.” 26. 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; 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.”

6 27. Examples of a tenant’s failure to comply with the terms of the lease may include, for example, a lack of redecoration.

28. 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.” 29. 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 30. The Tenant emailed the Tribunal on 30 August 2023 stating: “Upon careful analysis of the current property rental rates in our area, I’ve noticed a significant disparity between our current rental expenses and the prevailing rates in the market. This comparison is further underscored by the rental amount that the landlord is currently requesting from us. As evident from the attached photos, the local property rental market seems to be offering rental properties at rates notably lower than what we have been paying. This trend indicates a potentially favorable opportunity for us to optimize our budget while maintaining a comfortable living arrangement.” 31. The Tenant’s attachments set out the following evidence: a. [NAME_13], Drayton – 4 bedroom house (188 sqm) - £1,250 pcm

7 b. [NAME_14], Taverham – 3/4 bedroom chalet (98.1 sqm)- £1,500 pcm c. [NAME_15], Ringland – 4 bedroom detached house - £1,350 pcm 32. The Landlord was not copied into this email as required by the Direction 2 as issued by the Tribunal on 25 July 2023. However, the Tenant has informed the Tribunal that this email was forwarded separately to the Landlord’s agent. Representations – The Landlord 33. [NAME_6] [NAME_8] completed the Reply Form on behalf of the Landlord and his firm ([NAME_8]) are currently advertising properties to let in the vicinity, no rental evidence was provided to the Tribunal either by or on behalf of the Landlord.

34. Similarly, [NAME_5] did not respond to or comment in respect of the evidence provided by the Tenant despite the fact that the [NAME_14] property referred to by the Tenant is currently being marketed by his firm and the asking rent has recently been reduced from £1,500 pcm (as stated by the Tenant) to £1,400 pcm. Determination 35. 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 prospective tenant. The current rent and the period that has passed since that rent was agreed or determined is not relevant.

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

37. In addition, historic matters between the actual landlord and tenant are not relevant to the rent likely to be offered by a prospective tenant. The Tribunal can therefore only have regard to the Property as it actually exists on the relevant date of the proposed rent review having regard to the statutory assumptions.

38. As set out above, section 14 of the 1988 Act requires the Tribunal to determine the rent at which the Property might reasonably be expected to let with effect from the date specified for commencement of the new rent as set out in the section 13(2) Notice.

39. In effect, the Property is assumed to have been vacated, fully redecorated and be available on the market for occupation by an incoming tenant.

8 40. As set out above, the Landlord elected not to submit any evidence in support of the proposed rent of £1,650 pcm. In contrast, the Tenant submitted evidence in support of the contention that the proposed rent is excessive relative to other property but did not state what rent the Tribunal should determine in place of the Landlord’s proposal.

41. The Tribunal has reviewed the evidence provided by the Tenant and has taken account of the fact that, as the reduction in the asking rent of the [NAME_14] property took place after the effective date of the proposed rent (i.e., 1 August 2023), this is not a matter that would have been known to a prospective tenant as at the valuation date.

42. However, the reduction in the asking rent is helpful to the extent that it is indicative of market conditions as at the valuation date.

43. The Tribunal understands that the [NAME_13] property extends to 188 sqm and the [NAME_14] property extends to 98.1 sqm. However, the Tribunal has no further information in respect of [NAME_15] property.

44. The Tribunal has taken the evidence submitted to it into account but also applied its own expertise and knowledge. In this regard, the Tribunal determines the market rental of the Property as at the effective date to be £1,375 pcm. The rent payable may not, therefore, exceed this figure.

45. However, this does not prevent the Landlord from charging a lower figure.

Name: [NAME_16] [NAME_12] Date: 25 September 2023

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 either party is dissatisfied with this decision, they may apply for permission to appeal to the Upper Tribunal (Lands Chamber) on any point of law arising from this Decision. Prior to making such an appeal, an application must be made, in writing, to this Tribunal for permission to appeal. Any such application must be made within 28 days of the issue of this decision to the person making the application (regulation 52 (2) of The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rule 2013).

9 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, the property, 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).

10 First-tier Tribunal – Property Chamber File Ref No. CAM/33UG/MNR/2023/0098

Notice of the Tribunal Decision and Register of Rents under Assured Periodic Tenancies (Section 14 Determination)

Housing Act 1988 Section 14

Address of [ADDRESS], [POSTCODE]

[NAME_10] [NAME_12]

Landlord [NAME_3] C/O [NAME_8] 297 [ADDRESS] [POSTCODE]

Tenant [NAME_1]

1. The rent is: £ 1,375 Per month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 1 August 2923

3. The amount included for services is

not applicable Per

4. Date assured tenancy commenced 1 September 2022 5. Length of the term or rental period 6 months 6. Allocation of liability for repairs Tenant liable for internal repairs subject to exclusions 8. Furniture provided by landlord or superior landlord N/A 9. Description of premises The Property comprises a modern detached house providing a kitchen/diner, WC, porch, office (external access) and lounge at ground floor level and three bedrooms with family bathroom at first floor level. There is also a garden to the rear and garage to the side with extensive open car parking at the front. It benefits from underfloor heating, central heating, double glazing, carpets, modern bathroom suite and a full suite of white goods to the kitchen.

11 Chairman P [NAME_11] Date of Decision 25 September 2023

© CROWN COPYRIGHT

Amended under Rule 50 on 16 October 2023

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Reasons Background

Preliminary Issues 6. Section 13 (2) of the Housing Act 1988 requires, for the purposes of securing an increase in the rent: “…a notice in the prescribed form proposing a new rent to take effect at the beginning of a new period of the tenancy specified in the notice, being a period beginning not earlier than— (a) the minimum period after the date of the service of the notice.” 7. In addition, the prescribed form provides a box for the insertion of a date and Guidance Note 13 states “You or your agent… …must sign and date this notice.”

3 8. The section 13 (2) Notice was undated and it is therefore necessary for the Tribunal to consider whether it should proceed with this matter. 9. This Tribunal does not have jurisdiction to determine the validity of section 13 (2) notices and this is a matter for the County Court. However, paragraph 48 of the Court of Appeal Decision in Mooney v Whiteland [2023] EWCA Civ 67 states:

The Property 13. The Tribunal understands from the Parties’ representations that the Property comprises a modern detached house providing a kitchen/diner, WC, porch, office (external access) and lounge at ground floor level and four bedrooms with family bathroom at first floor level. There is also a garden to the rear and garage to the side with extensive open car parking at the front.

16. There is no evidence of a planning application having been submitted to Broadland District Council (the Local Planning Authority) but, as far

4 as it is material to the immediate matter, the Tribunal has assumed that these alterations fell under permitted rights and/or are protected from enforcement due to the effluxion of time such that the Tenant is entitled to full lawful use thereof.

5

The Law 24. 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” 25. Section 14 of the 1988 Act provides that the Tribunal is required to determine the rent at which the Property 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.” 26. 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; 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.”

Name: [NAME_16] [NAME_12] Date: 25 September 2023

Rights of appeal

Housing Act 1988 Section 14

Address of [ADDRESS], [POSTCODE]

[NAME_10] [NAME_12]

Landlord [NAME_3] C/O [NAME_8] 297 [ADDRESS] [POSTCODE]

Tenant [NAME_1]

2. The date the decision takes effect is: 1 August 2023

3. The amount included for services is not applicable Per

4. Date assured tenancy commenced 1 September 2022 5. Length of the term or rental period 6 months

6. Allocation of liability for repairs Tenant liable for internal repairs subject to exclusions

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

9. Description of premises The Property comprises a modern detached house providing a kitchen/diner, WC, porch, office (external access) and lounge at ground floor level and four bedrooms with family bathroom at first floor level. There is also a garden to the rear and garage to the side with extensive open car parking at the front. It benefits from underfloor heating, central heating, double glazing, carpets, modern bathroom suite and a full suite of white goods to the kitchen.

11 Chairman P [NAME_11] Date of Decision 25 September 2023

© CROWN COPYRIGHT

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Decision The Tribunal determined a market rent of £1,625 per month effective from 1 August 2023.

Reasons Background

6. The Tribunal issued a Determination on 25 September 2023. However, the Landlord requested permission to appeal on 23 October 2023. Having reviewed the grounds of that request, the Tribunal decided to set aside the previous Determination for the reasons set out in its letter dated 24 October 2023.

7. The Tribunal notes that the emails dated 27 October 2023, 6 November 2023 and 13 November 2023 as sent to the Tribunal by the Landlord include an email from the Tenant to the Landlord dated 30 August 2023 that states “Hi gary (sic) please see attached the rental examples that I have sent to the court regarding the case.”

8. These suggest that the Landlord had, in fact, received that email from the Tenant contrary to the statements provided by the Landlord to the Tribunal in seeking permission to appeal.

9. Nevertheless, the Tribunal has continued with this re-determination having regard to the over-riding principle of justice.

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Preliminary Issues 10. Section 13 (2) of the Housing Act 1988 requires, for the purposes of securing an increase in the rent: “…a notice in the prescribed form proposing a new rent to take effect at the beginning of a new period of the tenancy specified in the notice, being a period beginning not earlier than— (a) the minimum period after the date of the service of the notice.” 11. In addition, the prescribed form provides a box for the insertion of a date and Guidance Note 13 states “You or your agent… …must sign and date this notice.” 12. The section 13 (2) Notice was undated and it is therefore necessary for the Tribunal to consider whether it should proceed with this matter.

13. This Tribunal does not have jurisdiction to determine the validity of section 13 (2) notices and this is a matter for the County Court. However, paragraph 48 of the Court of Appeal Decision in Mooney v Whiteland [2023] EWCA Civ 67 states:

14. The Tribunal understands from the Tenant that the section 13 (2) Notice was received on 27 June 2023 such it is not disputed that the Landlord has provided the requisite notice as required by statute.

15. The Tribunal is therefore of the opinion that, although the Landlord has not dated the section 13 (2) Notice as expressly required, it was, on the basis of the Tenant’s confirmation, served within the statutory timescales and the Tribunal can proceed.

16. However, as set out in the Mooney case, this does not preclude the Tenant from challenging the validity of the Landlord’s notice at the County Court should they decide to do so.

The Property 17. The Tribunal has been provided with a copy of the letting details by the Landlord and, in the absence of carrying out an inspection, has relied upon these as being an accurate description of the Property.

4 18. The Tribunal notes that the Property comprises a modern detached house providing a kitchen/diner, WC, porch, office (external access) and lounge at ground floor level and four bedrooms with family bathroom at first floor level. There is also a garden to the rear and garage to the side with extensive open car parking at the front.

19. The Property benefits from underfloor heating, central heating, double glazing, carpets, modern bathroom suite and a full suite of white goods to the kitchen. The Tenancy 20. The Tenant took occupation pursuant to an Assured Shorthold Tenancy commencing 1 September 2022 for a term of 6 months.

22. Clause 11.1 of the AST required the Tenant: “To take reasonable steps to keep the interior of the Premises and the Fixtures and Fittings in the same decorative order and condition throughout the Term as at the start of the Tenancy as noted in the inventory and Schedule of Condition. The Tenant is not responsible for the following  fair wear and tear;  any damage cause by fire…  repairs for which the Landlord has responsibility (these are set out in clause 27.3 of this Agreement)  damage covered by the Landlord’s insurance policy.” 23. Clause 27.3 requires the Landlord: “To comply with the obligations to repair the Premises as set out in sections 11 to 16 of the Landlord and Tenant Act 1985...” The Law 24. 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;

5 (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” 25. Section 14 of the 1988 Act provides that the Tribunal is required to determine the rent at which the Property 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.” 26. 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; 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.” 27. Examples of a tenant’s failure to comply with the terms of the lease may include, for example, a lack of redecoration.

28. 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

6 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.” 29. 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 30. The Tenant emailed the Tribunal on 30 August 2023 stating: “Upon careful analysis of the current property rental rates in our area, I’ve noticed a significant disparity between our current rental expenses and the prevailing rates in the market. This comparison is further underscored by the rental amount that the landlord is currently requesting from us. As evident from the attached photos, the local property rental market seems to be offering rental properties at rates notably lower than what we have been paying. This trend indicates a potentially favourable opportunity for us to optimize our budget while maintaining a comfortable living arrangement.” 31. The Tenant’s attachments set out the following evidence: a. [NAME_13], Drayton – 4 bedroom house (188 sqm) - £1,250 per month b. [NAME_14], Taverham – 3/4 bedroom chalet (98.1 sqm)- £1,500 per month c. [NAME_15], Ringland – 4 bedroom detached house - £1,350 per month Representations – The Landlord 32. [NAME_5] provided evidence as follows: a. [NAME_18], Taverham – four/five bedroom detached house (152.6 sq m) with double garage - £1,800 per month

7 b. [NAME_19], Taverham – four bedroom detached house - £1,400 per month c. [NAME_14], Taverham –3/4 bedroom chalet (98.1 sqn) - £1,500 per month d. [NAME_20], Taverham – 4 bedroom detached house - £1,800 per month e. [NAME_21], Hellesdon – 3/4 bedroom detached house - £1,400 per month f. [NAME_22], Horsford – 4 bedroom house - £1,650 per month g. [NAME_23], Norwich – four bedroom semi- detached house - £1,650 per month h. [NAME_24], Hellesdon – three bedroom semi-detached house - £1,300 per month i. Best Price Guide 1 January 2023 to 16 August 2023 for [POSTCODE] + 3 miles 33. [NAME_25] (agent for the Landlord) emailed the Tribunal on 4 November 2023 and attached three reports which are considered below.

34. Report A comprised a “Best Price Guide” for properties marketed between 1 September 2022 to 30 November 2022 in respect of the postcode of [POSTCODE] + 3 miles whilst Report B comprised a “Best Price Guide” for the same area but for the period 1 September 2022 to 30 July 2023.

35. In addition, [NAME_25] provided a copy of the ONS “Index of Private Housing Rental Prices, UK:March 2023.” 36. [NAME_25] emailed the Tribunal on 13 November 2023 stating “Please see attached additional property added by third party agent over the weekend.” 37. This Property comprises a four-bedroom detached property available to let from 8 January 2024 in [ADDRESS] at an asking rent of £1,650 per month. The Tribunal understands from a comparison of the letting details with Google images that this property is [ADDRESS]. Determination 38. 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 prospective tenant.

8 The current rent and the period that has passed since that rent was agreed or determined is not relevant.

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

40. In addition, historic matters between the actual landlord and tenant are not relevant to the rent likely to be offered by a prospective tenant. The Tribunal can therefore only have regard to the Property as it actually exists on the relevant date of the proposed rent review having regard to the statutory assumptions.

41. As set out above, section 14 of the 1988 Act requires the Tribunal to determine the rent at which the Property might reasonably be expected to let with effect from the date specified for commencement of the new rent as set out in the section 13(2) Notice.

42. In effect, the Property is assumed to have been vacated, fully redecorated and be available on the market for occupation by an incoming tenant.

43. The Tribunal has noted the evidence submitted by both the Tenant and the Landlord and is grateful to both Parties for their assistance in this regard.

44. Overall, whilst the Tribunal appreciates that the evidence of [ADDRESS] postdates the Valuation Date and could not have been envisaged as at the Valuation Date it would not be appropriate to ignore this evidence due to the fact that it is in the same location and, with the exception of the side extension, appears to be materially the same as the Property.

45. In this regard, whilst the Tribunal would normally make an addition on account of the side extension, it is the case that, as the Landlord has argued, there has been rental growth and this is an asking rather than an actual rent. As such, any addition for the extension would be counterbalanced by adjustments to the rent on account of market growth and allowing for a slight reduction in rent to be agreed.

46. The Tribunal has not relied upon this evidence in isolation and has had full regard to all the evidence submitted by both Parties which gives it confidence that the determined rent is fair and reasonable.

47. In this regard, the Tribunal determines the market rental of the Property as at the effective date to be £1,625 per month. The rent payable may not, therefore, exceed this figure.

48. However, this does not prevent the Landlord from charging a lower figure.

9

Name: [NAME_16] [NAME_12] Date: 21 December 2023

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 either party is dissatisfied with this decision, they may apply for permission to appeal to the Upper Tribunal (Lands Chamber) on any point of law arising from this Decision. Prior to making such an appeal, an application must be made, in writing, to this Tribunal for permission to appeal. Any such application must be made within 28 days of the issue of this decision to the person making the application (regulation 52 (2) of The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rule 2013). 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, the property, 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).

Housing Act 1988 Section 14

Address of [ADDRESS], [POSTCODE]

[NAME_10] [NAME_12]

Landlord [NAME_3] C/O [NAME_8] 297 [ADDRESS] [POSTCODE]

Tenant [NAME_1]

1. The rent is: £ 1,625 Per month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 1 August 2023

3. The amount included for services is not applicable Per

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

9. Description of premises The Property comprises a modern detached house providing a kitchen/diner, WC, porch, office (external access) and lounge at ground floor level and three bedrooms with family bathroom at first floor level. There is also a garden to the rear and garage to the side with extensive open car parking at the front. It benefits from underfloor heating, central heating, double glazing, carpets, modern bathroom suite and a full suite of white goods to the kitchen.

11 Chairman P [NAME_11] Date of Decision 21 December 2023

© CROWN COPYRIGHT

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : CAM/33UG/MNR/2023/0098 HMCTS code : P:PAPERREMOTE Property : 24 [ADDRESS], [POSTCODE] Applicant (Tenant) : [NAME_1] Respondent (Landlord) : [NAME_3] (represented by [NAME_6] [NAME_8]) Type of application : Application for permission to appeal Tribunal members : [NAME_16] [NAME_12] Date of Decision : 7 February 2024

DECISION

Description of hearing This has been a remote determination on the papers which the parties are taken to have consented to, as explained below. The form of determination was a paper hearing described above as P:PAPERREMOTE. The issues were decided on the papers.

2 Decision 1. The Tribunal has considered the Applicant’s request for permission to appeal to the Upper Tribunal Lands Chamber dated 5 February 2024 in respect of the Determination dated 21 December 2023 and determines that:

a. It will not review its Decision; and

b. Permission be refused for appeal to the Upper Tribunal Lands Chamber.

2. The Respondent may make a further application for permission to appeal directly to the Upper Tribunal (Lands Chamber). Any such application must be made no later than 14 days after the date on which the First-tier Tribunal sent notice of this refusal to the party applying for permission to appeal.

3. Where possible, the Respondent should make any further application for permission to appeal online using the Upper Tribunal’s online document filing system, called CE-File. This will enable the Upper Tribunal to deal with it more efficiently and will enable the parties to follow the progress of the application and submit any additional documents quickly and easily.

4. Information about how to register to use CE-File can be found by going to the following web address:

https://www.judiciary.uk/wp-content/uploads/2021/07/Practice-Note-on- CE-filing-Lands-Chamber-17.6.21_.pdf

5. Alternatively, it is possible to submit an application for permission to appeal by email to: [EMAIL].

6. The Upper Tribunal can also be contacted by post or by telephone at: Upper Tribunal (Lands Chamber), 5th [ADDRESS] [POSTCODE] (Tel: [PHONE]).

Reasons 7. The relevant provisions in respect of appeals concerning the amount of the rent increase are set out at Section 9 of the Practice Directions of the Upper Tribunal (Lands Chamber) dated 19 October 2020 (the “Practice Directions” which can be found at the following link: https://www.judiciary.uk/guidance-and-resources/upper-tribunal-lands- chamber-practice-directions/ 8. Paragraph 9.3 of the Practice Directions provides that decisions concerning rent increases may only be appealed to the Upper Tribunal Lands Chamber on a point of law.

3 9. No points of law have been raised by the Tenant and the Tribunal is therefore unable to grant permission for a referral to the Upper Tribunal Lands Chamber.

10. Notwithstanding this point, the Tribunal has considered whether there are sufficient grounds for a review of its Determination but, for the reasons set out below has concluded that there are not.

11. For clarity, the quotations are reproduced exactly as they appeared in the original documents/emails. The Tenant’s Appeal 12. The Tenant’s appeal stated: “I am appealing the decision due to late evidence taken from [NAME_9] taken into account but mine wasn’t also numerous properties that [NAME_9] submitted as evidence was fabricated saying that properties had been let but in fact they were actually sold. Also when a property says let on rightmove there is no way of knowing if a lower amount has been accepted and I know that the property on Shakespear way that they evidenced after the deadline that was included in their claim was rented at a lower cost than advertised.” 13. No further points were raised and no evidence was provided to support the allegations. The Landlord’s Response 14. [NAME_6] [NAME_8] emailed the Tribunal on 6 February 2024 stating: “I would like confirm that [NAME_9] have not fabricated evidence regarding the numerous properties we provided. I have signed tenancy agreements and would be happy to provide this information with you if required.” 15. No further points were raised. Commentary 16. The Determination was provided to the Parties by email on 2 January 2024. As set out in that Determination an application for permission to appeal must be made within 28 days of the issuing of a determination. In this context, the Tenant’s application was not received by this Tribunal until 5 February 2024 and is therefore out of time. Nevertheless, the Tribunal has reviewed the grounds for seeking permission to appeal and comment as follows.

17. The Tribunal is satisfied that that both Parties were afforded full opportunity to review and respond to each other’s evidence prior to the issuing of the Determination and no new facts or evidence has been raised that would warrant a setting aside of that Determination.

4 18. The Determination stated the following: “43. The Tribunal has noted the evidence submitted by both the Tenant and the Landlord and is grateful to both Parties for their assistance in this regard.” and, “46. The Tribunal has not relied upon this evidence in isolation and has had full regard to all the evidence submitted by both Parties which gives it confidence that the determined rent is fair and reasonable.” 19. The Tribunal rejects the assertion that it did not take the Tenant’s evidence into account and the actual position was made clear in the Determination as set out above.

20. The Tribunal has no information before it as to whether any of the comparable properties were sold. However, the fact that one or more of the properties may or may not have been sold does not invalidate or alter the rental evidence provided to the Tribunal. In this regard, the Tribunal has been provided with no evidence to support the Tenant’s allegations of fabrication and [NAME_5] has provided a written statement refuting these allegations.

21. The Tribunal understands achieved rents may, but not always, be below asking rents and this is a matter that has been considered.

22. In summary, the Tribunal has taken all the available evidence into account together with its own knowledge and expertise of the residential letting market and nothing has been brought to its attention within these latest exchanges that would warrant amending the Determination.

Name: [NAME_16] [NAME_12] Date: 7 February 2024