First-tier Tribunal Determines Market Rent for Room in Multiple Occupation

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. JM/LON/00AL/MNR/2022/0097

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 10 [ADDRESS], [POSTCODE]

[NAME]

Landlord [RESPONDENT] 55 The Village, London, [POSTCODE]

Tenant [APPELLANT]

1. The rent is: £ 450.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 16 June 2022

*3. The amount included for services is

not applicable N/A Per

*4. Service charges are variable and are not included

5. Date assured tenancy commenced 16 August 2013

6. Length of the term or rental period Monthly

7. Allocation of liability for repairs As per agreement

8. Furniture provided by landlord or superior landlord Bed, wardrobe and chest of drawers.

9. Description of premises First floor room in house in multiple occupation, shared use of lounge, kitchen, bathroom/wc and garden.

Chairman E [NAME] of Decision 16 August 2022

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Case Reference : JM/LON/00AL/MNR/2022/0097

P:PAPERREMOTE

Property : 10 [ADDRESS] [POSTCODE]

Applicant: [redacted]

: -

Respondent: [redacted]

[RESPONDENT]

: -

Date of Application : 13 June 2022

Type of Application : Determination of the market rent under Section 14 Housing Act 1988

Tribunal

: Mrs [NAME] and venue of : 16 August 2022 Determination

remote hearing on the papers.

_______________________________________________

DECISION ____________________________________

The market rent as at 16 June 2022 is £450 per month.

This has been a remote hearing which has been consented to by the parties. The form of remote hearing was P:PAPERREMOTE. A face-to-face hearing was not held because it was not practicable and all issues could be determined in a remote hearing. The documents that the Tribunal were referred to are in a bundle, the contents of which have been noted. The order made is described below.

© CROWN COPYRIGHT FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

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Background

1. On 13 June 2022, the tenant referred to the Tribunal a notice of increase of rent served by the landlord under section 13 of the Housing Act 1988.

2. The landlord's notice, which was dated 12 May 2022 proposed a rent of £600 per month with effect from 16 June 2022 in place of the existing rent of £350 per month.

3. The tenant first occupied the property on 16 February 2013 at £350 per month. The tenancy agreement refers to a house however it is clear from the correspondence from both parties that it in fact relates only to room 10 on the first floor, the agreement includes a clause prohibiting sharers occupying the house.

4. Directions were issued by the tribunal on 22 June 2022.

5. The parties did not object to the matter being dealt with on the papers. Prior to its consideration of the application both the landlord and the tenant sent to the tribunal written representations.

The Evidence 6. The tenant stated that the house is shared with a mother and her three children. He is responsible for a share of the energy bills for the whole house which last winter amounted to £200 per month. He referred to some rooms available to rent which he considered to be superior to his own at asking rents of £600 per month inclusive of all bills. He was of the opinion that the market rent for his north facing rom was £400 - £450 per month.

7. The landlord stated that this is a road of Edwardian houses. He had taken advice from estate agents regarding the rental value of the room. He had not increased the rent since the tenant had moved in consequently the increase is larger than it would have been if he had increased the rent in the past. He was of the opinion that he could have sought a higher rent but he wished to be reasonable. The landlord referred to asking rents of four two bedroom flats at asking rents ranging from £1350 to £1900 per month. The law

8. In accordance with the terms of section 14 Housing Act 1988 the Tribunal proceeded to determine the rent at which it considered that the subject property might reasonably be expected to be let on the open market by a willing landlord under an assured tenancy.

9. In so doing the Tribunal, as required by section 14(1), ignored the effect on the rental value of the property of any relevant tenant's improvements as defined in section 14(2) of that Act.

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Valuation

10. In coming to its decision, the Tribunal had regard to the evidence supplied by the landlord and the tenant. The range of rents for the comparables reflected their location, the type of property, their amenities and whether bills were included in the rent.

11. The Tribunal concluded that the rent at which the property might reasonably be expected to be let on the open market in its current condition would be £450 per month exclusive of utility bills.

The decision

12. The Tribunal determines the open market rental value of the room is £450 per month effective from 16 June 2022 in accordance with the effective date on the landlord’s notice

Chairman: [NAME]: 16 August 2022

__________________________________

ANNEX - RIGHTS OF APPEAL

i. 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.

ii. 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.

iii. 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.

iv. 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.

Appendix Housing Act 1988

4 14 Determination of rent by rent assessment committee. (1)Where, under subsection (4) (a) of section 13, a tenant refers to a rent assessment committee a notice under subsection (2) of that section, the committee shall determine the rent at which, subject to subsections (2) and (4) below, the committee consider that the dwelling-house concerned might reasonably be expected to be let in the open market by a willing landlord 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

5 (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 or for any of the matters referred to in subsection (1) (a) of that section, whether or not those sums are separate from the sums payable for the occupation of the dwelling-house concerned or are payable under separate agreements…. (7)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 … 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.

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