First-tier Tribunal Determines Market Rent for Residential Property

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. MAN/00BS/MNR/2019/0040

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 146 [ADDRESS] [POSTCODE]

[NAME] Mrs [RESPONDENT] 1st Floor Citygate, St James' Boulevard, Newcastle upon Tyne, [POSTCODE]

Tenant Mr [APPELLANT]

1. The rent is: £ 175.00 Per Week (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 31 May 2019

The amount included for services is Not applicable Per

4. Date assured tenancy commenced 22 February 2013

5. Length of the term or rental period Periodic tenancy

6. Allocation of liability for repairs S11 Landlord & Tenant Act 1985

7. Furniture provided by landlord or superior landlord None

8. Description of premises 3 Bedroom detached property with double glazing, central heating and garage

[NAME] of Decision 19 July 2019

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FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case Reference

: MAN/00BS/MNR/2019/0040

Property : 146 [ADDRESS], [POSTCODE]

Landlord

: [RESPONDENT]: : [APPELLANT]

Tenant

: Mr [APPELLANT] of Application : Determination of a market rent under The Housing Act 1988 Section 13

Tribunal Members : Mrs AJ Rawlence MRICS (Chair)

Mrs H Clayton JP

Date of Decision : 19 July 2019

Date of Reasons : 23 August 2019

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STATEMENT OF REASONS

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© CROWN COPYRIGHT 2019

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Background

1. This is an application dated 21 May 2019 to the First-tier Tribunal – Property Chamber by the Tenant of the above property Mr [APPELLANT] under section 13(4) of the Housing Act 1988 (“the Act”), referring a notice served on him by the Landlord, [RESPONDENT], proposing a new rent of £175.00 per week in place of the existing rent of £160.00 per week.

2. The Landlord’s notice was dated 12 April 2019 and the date inserted in the notice for the commencement of the new rent was 31 May 2019.

3. The tenancy under which Mr [NAME] occupies the property is a periodic tenancy which commenced on 22 February 2013.

Inspection

4. The Tribunal inspected the Property on 19 July 2019. The Tribunal were accompanied by the Tenant and the [NAME].

5. The property was a three bedroom detached house with double glazing, central heating and a garage. It was situated next to a commercial property belonging to BT Openreach and had previously been occupied by the tenant’s parents under a GPO tenancy.

6. The accommodation provided Hall, Front and Rear Living Rooms, small Kitchen with pantry and store. At first floor were two Double Bedrooms, one Single Bedroom and Bathroom with original basin.

7. The white goods were provided by the Tenant and central heating had been installed by the Tenant’s mother under a grant scheme. The Landlord has subsequently replaced the boiler and maintained the heating system.

8. The Tenant had supplied all the carpets, curtains and furniture.

9. The Property had gardens to the front and rear and vehicular access to the garage at the side.

10. The Tribunal noted the following items of disrepair:

The property had been partially rewired in 2012 with a new circuit board. There were only single sockets in each Bedroom. The agent noted that a 5 year review was due. Cracks were noted above the door of the rear Living room and there was evidence of movement in the bay extension to the Kitchen. Defective plaster under window on the stairs Crack in the corner of the Double Bedroom Poor condition of garage

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Defective downpipe on the Rear Elevation and two stepped fractures, one by the Rear Living Room and a larger one by the store. Debris in the gutter on the Front Elevation

Tenant’s works

11. The Tenant had carried out the following works:

Worktop in the Kitchen

Written representations

12. No written representations were made the Tenant.

13. The Landlord sent written representation dated 13 June 2019 where evidence was provided of four bedroom detached houses in the area. One property had recently been let at £1,400 per calendar month but the remaining two properties were still on the market at £3,200 and £3,000 respectively.

The Law

14. In accordance with the terms of section 14 of the Act the Tribunal proceeded to determine the rent at which it considered that the subject property might reasonably be expected to let on the open market by a willing Landlord under an assured tenancy.

15. In so doing the Tribunal, as required by section 14(1), ignored the effect on the rental value of any relevant Tenant’s improvements, as defined in section 14 (2).

The Decision

16. The Tribunal’s decision was sent to both parties.

17. By letters dated 12 August 2019 both parties requested a statement of reasons.

Reasons for the Decision

18. In the first instance the Tribunal 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 that is considered usual for such an open market letting. It did this by having regard to the evidence supplied by the Landlord and Tribunal’s own general knowledge of market rent levels. The Tribunal concluded that such a likely market rent would be £300.00 per week.

19. However, the actual property is not in the condition considered usual for a modern letting at a market rent. Therefore, it was first necessary to adjust that hypothetical rent of £300.00 per week to allow for the differences between the condition considered usual for such a letting and the condition of the actual property as observed by the Tribunal

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(disregarding the effect of any disrepair or other defect attributable to the Tenants or any predecessor in title). The Tribunal considered that this required a deduction of £30.00 per week in respect of the carpets, curtains and white goods which were provided by the Tenant and a deduction of £50.00 per week to reflect the small basic Kitchen and unmodernised Bathroom. The Tribunal made a further deduction of £45.00 to reflect lack of modern sockets and items of disrepair.

20. The Tribunal therefore confirmed that the rent at which the property might reasonably be expected to be let on the open market would be £175 per week.

21. This rent will take effect from 31 May 2019 being the date specified in the notice.

22. If either party is dissatisfied with this decision, they may apply for permission to appeal to the Upper Tribunal (Lands Chamber), on a point of law only. Any such application must be made to the First-tier Tribunal within 28 days of this decision (Rule 52 (2) of The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013.

[NAME]

23 August 2019