First-tier Tribunal Reviews Tenant's Rent Increase Appeal

OUTCOME: Allowed

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : MAN/32UH/MNR/2021/0212 Property : 1 Cottage, West Firsby, Lincolnshire [POSTCODE] Applicant : [redacted] : In person Respondent : [redacted] : Mr [COUNSEL] of Application : Housing Act 1988 Section 13 Tribunal Members : Tribunal Judge J. E. Oliver Tribunal Member [NAME] of Determination : 3rd March 2022 Date of Decision : 7th March 2022

DECISION

Decision

1. The Tribunal has jurisdiction to deal with the application. 2. The rent payable for 1 Cottage West Firsby, Lincolnshire (‘[NAME]”) is £550 per calendar month with effect from 3rd October 2021.

Application

3. This is an application by Ms [APPELLANT] (“the Applicant”) for the determination of the rent payable in respect of [NAME], pursuant to Section 13 of the Housing Act 1988 (‘the Act”).

4. The Applicant entered into a tenancy agreement for [NAME] on 2nd November 2016, providing for the commencement of the tenancy on 3rd November 2016, for a period of 6 months at a rent of £525 per calendar month. The tenancy has continued since that date with no increase in rent.

5. The Landlord of [NAME], [RESPONDENT] (“the Respondent”), served a notice to increase the rent for [NAME] (“the Notice”) from the rent of £525 per calendar month to £550 per calendar month. The Notice, dated 19th August 2021, stated the increase was to take effect from 3rd October 2021.

6. The Applicant objected to the proposed increase and filed an application with the First-tier Tribunal dated 29th September 2021 for the issue to be determined.

7. Both the Applicant and the Respondent made written submissions to the Tribunal. The Tribunal was unable to carry out an inspection of [NAME] due to the restrictions imposed by Covid-19.

Accordingly, the Tribunal relied upon the photographs and written representations made by the parties in making its determination.

8. Neither party requested a hearing.

Inspection

9. The Tribunal did not undertake an inspection of [NAME], for the reasons already stated.

Accordingly, the Tribunal relied upon the submissions of the parties, their own knowledge and expertise and enquiries of the lettings market in the Lincolnshire area. 10. [NAME] is a brick-built semi-detached property with a tiled roof situate in West Firsby Lincolnshire. [NAME] sits on the edge of a working farm in a rural location. It comprises an entrance hall with utility area, sitting/dining area, sitting room, kitchen, bathroom and 3 bedrooms. There are gardens to both the front and rear of [NAME]. 11. [NAME] is described as having partial double-glazing and central heating.

Submissions

12. The Respondent provided the Tribunal with evidence of comparable rents relating to other properties in West Firsby and all on the same estate belonging to it. 13. 2 Cottage West Firsby, being the cottage adjoining [NAME], was let on 13th March 2020 at a rent of £575 per month. The size is given at 1,195 sq ft, equivalent to £5.77 per sq ft. The Respondent advised [NAME] is also 1,195 sq ft with the proposed rent of £550 per calendar month equating to £5.52 per sq ft.

14. These were:

2 Cottage, West Firsby

Rent: £575 per month Rent commencement date: 13th March 2020 Size (sq ft): 1,195 Rent per sq ft: £5,77

3 Cottage, West Firsby

Rent: £650 per month Rent commencement date: 10th March 2021 Size (sq ft): 1.027 Rent per sq ft: £7.59

4 Cottage, West Firsby

Rent: £500 per month Rent commencement date: 1st October 2021 Size (sq ft): 1,027 Rent per sq ft: £5.84

Greystones, West Firsby

Rent: £620 per month Rent commencement date: 29th October 2021 Size (sq ft): 1,170 Rent per sq ft: £6.36

Shepherd’s Cottage, West Firsby

Rent: £685 per month Rent commencement date: 1st October 2021 Size (sq ft): 1,616 Rent per sq ft: £5.09

Top Farm, West Firsby

Rent: £665 per month Rent commencement date: 24th October 2021 Size (sq ft): 1,416 Rent per sq ft: £5.64

15. The Applicant confirmed that her tenancy included the use of a single garage. However, whilst [NAME] is in good repair, there have been no upgrades to the kitchen, bathroom or heating for 20 years. 16. In respect of the comparable properties provided, the Applicant advised as follows:

2 Cottage

This property has full double glazing and was let in March 2020 after upgrades to the kitchen, bathroom and heating “in recent years”.

3 Cottage, West Firsby

This was let in March 2021 after refurbishment and has double glazing throughout. It also has a detached garage and additional outbuildings.

Greystones, Shepherd’s Cottage and Top Farm Cottgae West Firsby

These are detached houses with large gardens but have no garage or outbuildings.

17. The Applicant stated that of the comparable properties, all the tenants are existing tenants who have entered into new tenancy agreements, having previously held Assured Shorthold tenancies for their properties. It was disputed the market evidence should be relied upon since the tenants had little choice other than to agree the increase in their rents. They had the choice of agreeing the rents or relocating.

Determination

18. The Tribunal firstly considered whether it had jurisdiction to deal with the application. The tenancy must be one that falls within section 13 of the Act.

19. The criteria for this are: a the tenant must have exclusive occupancy of [NAME]; b [NAME] must be a dwelling house; c the dwelling house must be let as a separate property; d the tenant must be an individual; e the tenant must occupy [NAME] as their principal home; All these conditions are met in this case.

20. The following criteria must then be satisfied:

a the tenancy is a periodic tenancy that makes no provision for a rent increase; b any rent increase is in the prescribed form; c the rent increase must be 52 weeks after the commencement of the tenancy; d the rent increase must also be 52 weeks after any previous increase; e the notice period for the increase must be at least one month; f the notice must be signed by the landlords; g the proposed rent must be specified to take effect at the beginning of a new period of the tenancy.

21. The Tribunal determined all these requirements are met.

21. The Tribunal thereafter considered the appropriate market rent for [NAME]. In determining this, the Tribunal considered the comparable evidence provided to it.

22. The Tribunal determined that [NAME] at 2 Cottage, West Firsby was good evidence of the open market rent for a property in the area. It was identical to [NAME]. The Tribunal noted 2 Cottage had undertaken some refurbishment, although the parties did not provide full details of this, other than to confirm it had double glazing throughout.

23. The Tribunal considered the Applicant’s concerns regarding the new rents agreed by the tenants of the comparable properties. However, it noted there had been no increase in the rent since the original tenancy in 2016. The Respondent was now seeking an increase of £25 per month. In the light of the increase in market rents in [NAME] market over a period of 5 years, this is a modest increase. The increase also reflects the slightly lower standard of accommodation at [NAME] when compared with 2 Cottage.

24. The rent for [NAME] is therefore in the sum of £550 per calendar month with effect from 3rd October 2021 , being the date of increase in the Notice.