First-tier Tribunal Sets Fair Rent Based on Property Condition

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. LON/00AM/MNR/2023/0467

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 53 [ADDRESS], [POSTCODE]

[NAME] Mr [RESPONDENT] [NAME]

[ADDRESS], [POSTCODE]

Tenant Mr [APPELLANT]

1. The rent is: £ 1250 Per Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 22 December 2023

*3. The amount included for services is not applicable

Per

*4. Service charges are not included

5. Date assured tenancy commenced 22 August 2005

6. Length of the term or rental period Succession

7. Allocation of liability for repairs In accordance with agreement

8. Furniture provided by landlord or superior landlord None

9. Description of premises A purpose built first floor flat forming part of a mid terrace Victorian building. Accommodation comprises three bedrooms, living room, kitchen, shower room, lavatory.

[NAME] of Decision 15th February 2024

1

Case Reference

: LON/OOAM/MNR/2023/0467

Property : 53 [ADDRESS] [POSTCODE]

Tenant

: Mr [COUNSEL]

Landlord : Mr [COUNSEL] : None

Date of Objection : 9th November 2023

Type of Application : Determination of a Market Rent sections 13 & 14 of the Housing Act 1988

Tribunal

: Mr [NAME] [NAME] of Summary Reasons

: 15th February 2024

_______________________________________________

DECISION

The Tribunal determines a rent of £1,250 per calendar month with effect from 22 December 2023. ____________________________________

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2 © CROWN COPYRIGHT 2023

SUMMARY REASONS

Background

1. On the 3rd November 2023 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £1,500 per month in place of the existing rent of £1,100 per month to take effect from 22nd December 2023.

2. On the 9th November 2023 under Section 13(4)(a) of the Housing Act 1988, the Tenant referred the Landlord’s notice proposing a new rent to the Tribunal for determination of a market rent.

Inspection

3. The Tribunal inspected the property on the 15th February in the presence of the tenant.

Evidence

4. The Tribunal has had consideration to the inspection and the written submissions provided by the tenant and the landlord together with the comparable evidence.

Determination and Valuation

5. Having consideration of our own expert, general knowledge of rental values in the [ADDRESS] area, we consider that the open market rent for the property in good lettable condition with modern fittings and services would be £2,500 per month. Using our own expertise, we considered that deductions of 50% should applied to take into account the terms of the tenancy, and the condition of the property. The property is suffering from severe damp and mould due to neglect to the fabric of the building. There is partial central heating. The kitchen and sanitary fittings are very dated and there is significant cracking to wall plaster. All in all, this property is in need of significant refurbishment and upgrade of services., This provides a deduction of £1,250 per month from the hypothetical rent. This reduces the figure to £1,250 per month.

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.

6. The Tribunal determines a rent of £1,250 per calendar month.

3 Decision

7. The Tribunal therefore determined that the rent at which the subject property might reasonably be expected to be let in the open market by a willing Landlord under an assured tenancy in its current condition was £1,250 per calendar month.

8. The Tribunal directs the new rent of £1,250 to take effect on the 22nd December 2023. This being the date set out in the Landlord’s Notice of Increase and the Tribunal was satisfied that a starting date of that specified in the Landlord’s notice would not cause the tenant undue hardship.

Chairman: [NAME]: 15th February 2024

APPEAL PROVISIONS

These summary reasons are provided to give the parties an indication as to how the Tribunal made its decision. If either party wishes to appeal this decision, they should first make a request for full reasons and the details of how to appeal will be set out in the full reasons. Any subsequent application for permission to appeal should be made on Form RP PTA.