First-tier Tribunal Determines Rent for Assured Tenancy

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. LON/00AT/MNR/2025/0706

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 35 [ADDRESS], [POSTCODE]

[NAME] Mr [RESPONDENT] [NAME]

Landlord [RESPONDENT] ([NAME]) [RESPONDENT] 16/[ADDRESS] on Sea Essex [POSTCODE]

[NAME]

1. The rent is: £ 186.75 Per Week (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 10 March 2025

*3. The amount included for services is not applicable

Per

*4. Service charges are not included

5. Date assured tenancy commenced Succession of Regulated Tenancy

6. Length of the term or rental period Monthly Assured Periodic Tenancy

7. Allocation of liability for repairs In accordance with standard agreement

8. Furniture provided by landlord or superior landlord None

9. Description of premises An end of terrace two storey Victorian house: Accommodation comprises 2 living rooms, 2 bedrooms, bathroom/WC rear garden.

[NAME] of Decision 22 July 2025

© CROWN COPYRIGHT

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : LON/00AT/MNR/2025/0706 Property : 35 [ADDRESS], [POSTCODE] Applicant (Tenant) :

Mr [COUNSEL] : None Respondent (Landlord) : [RESPONDENT] ([NAME]) [RESPONDENT] : None Type of [NAME] : Section 13(4) Housing Act 1988 Tribunal members : Mr [NAME] Mr [NAME] : 10 [ADDRESS] [POSTCODE] Date of Reasons : 22 July 2025

REASONED DECISION

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Decision of the tribunal (1) Having heard evidence and submissions from the parties, considered all the documentation provided and inspected the property, the Tribunal determines that the rent that the property in its current condition as at the 10 March 2025 might reasonably be expected to achieve under an assured tenancy is £186.75 per week. Background 1. The tenant has lived in the property all his life and an Assured Periodic Tenancy was created in 2004 following the passing of the tenant’s grandfather The landlord subsequently purchased the property at auction in 2007.

2. On the 8 January 2025 the landlord served a notice pursuant to section 13(2) of the Housing Act 1988 seeking to increase the rent from £138.50 per week to £276 per week, being an increase of £137.50 per week, effective from 10 March 2025.

3. By an [NAME] dated the 21 February 2025, the tenant referred that notice to the Tribunal for a determination of the market rent. The Tribunal issued Directions for the conduct of the matter on 2 May 2025.

4. These reasons address in summary form the key issues raised by the parties. They do not recite each point referred to in submissions but concentrate on those issues which, in the Tribunal’s view, are fundamental to the determination.

The Evidence 5. The Tribunal has before it a bundle of evidence which includes a background to the case, the [NAME], the Directions, the completed reply statements on behalf of the landlord and tenant. The landlord submitted details of comparable lettings in the general area which ranged from £1,800 pcm through to £2,000 pcm. The Hearing 6. The hearing took place at 10.45 am on the 22 July 2025 and was attended by Mr. [APPELLANT] the tenant.

7. At the hearing Mr. [APPELLANT] was provided with the opportunity to outline his case. He stated he was no stranger to the Tribunal and he set out a

3 chronology of events and the various improvements undertaken by him during the course of his occupation as a Shorthold Periodic Tenant. The Tribunal explained to the tenant the methodology for the calculation of the rental value. The Tenant’s Case 8. Over the period of some 70 years the grandparents of the tenant and his undertook all repairs and improvements to the property. Since 2004, the tenant has installed gas central heating to radiators in 2011. In 2008, the tenant provided new sanitary fittings and kitchen units. He provided a new close boarded fence on the flank boundary and replastered a number of walls and ceilings. The ground floor bay window has original single glazed sash windows which are suffering from rot infestation. Inspection 9. The Tribunal inspected the property following the hearing on the morning of 22 July 2025 in the presence of the tenant. The property is an end of terrace two storey Victorian house with a pitched and slate roof and brick elevations. The property is located in an established mixed residential area close to [ADDRESS], local amenities, Hounslow town centre and underground stations.

10. The accommodation comprises: 2 bedrooms, living room, dining room, kitchen, bathroom/wc. The windows are partially double glazed and there is gas central heating installed by the tenant. There is a rear garden and roadside permit parking. Apart from the tenant’s improvements the house is unmodernized and poorly maintained. It is evident the property has been severely neglected by the landlord in the past years. The Law 11. The rules governing a determination are set out in section 14 of the Housing Act 1988. In particular, the Tribunal is to determine the rent at which the property might reasonably be expected to be let in the open market by a willing landlord under an assured tenancy, subject to disregards in relation to the nature of the tenancy (i.e. it being granted to a “sitting tenant”) and any increase or reduction in the value due to the tenant’s improvements or failure to comply with the terms of the tenancy. In the absence of any evidence to the contrary, the Tribunal has proceeded on the basis that the landlord is responsible for repairs to the structure, exterior and any installations pursuant to section 11 of the Landlord and Tenant Act 1985 and the tenant for interior decoration. The Valuation

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12. The applicant and current tenant Mr [APPELLANT] seceded the previous tenant Mr [APPELLANT] grandfather. The previous tenant held the property under a protected tenancy. Upon succession by the current tenant Mr [APPELLANT] the law provides that the successor tenant Mr [APPELLANT] holds the property under a secure assured tenancy. All improvements carried out by the previous tenant under the protected tenancy revert to the landlord. All repairs and improvements carried out by the current tenant Mr [APPELLANT] under the secure assured tenancy fall to be excluded from the valuation.

13. Having carefully considered all the evidence the Tribunal considers that the rent that would be achieved a good marketable condition with reasonably modern kitchen and bathroom fittings, modern services, carpets, curtains and white goods supplied by the landlord would be £415 per week (£1800 per month). This figure is based upon the comparable evidence provided by the landlord, and the Tribunal’s professional judgement and experience of rental values in the Hounslow area.

14. Next, the Tribunal needs to adjust that hypothetical rent of £440 per week to allow for the significant improvements undertaken by the tenant, no carpets and curtains or white goods supplied by landlord. All in all, the property requires significant refurbishment and redecoration.

15. The Tribunal has considered very carefully the information provided by the tenant and the findings during the inspection. Using its own expertise, the Tribunal considers that a deduction of 55% should be applied in order to take account of the above matters. This provides a deduction of £228.25 per week from the hypothetical rent. This reduces the figure to £186.75 per week.

16. It should be noted that this figure cannot be a simple arithmetical calculation and is not based upon capital costs but is the Tribunal’s estimate of the amount by which the rent would need to be reduced to attract a tenant.

17. Therefore, the Tribunal directs the new rent of £186.75 per week to take effect on the 10 March 2025. This, being the date of the landlord’s notice.

[NAME] 22 July 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 [NAME] for permission must be made to the First- tier Tribunal at the regional office which has been dealing with the case. 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].

6 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. If the tribunal refuses to grant permission to appeal, a further [NAME] for permission may be made to the Upper Tribunal (Lands Chamber).