First-tier Tribunal sets fair rent for Bedford property at £114 per week

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FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : CAM/00KB/F77/2023/0043 Property : Flat 6 (Ground Floor Rear Flat) 41 [ADDRESS], [POSTCODE] Applicants (Landlord)

: [APPELLANT]

Respondent (Tenant ) : [APPELLANT] of [NAME] : Determination of a fair rent under section 70 of the Rent Act 1977 Tribunal members : [NAME](Hons)

Date of decision : 20 November 2023

DECISION

Description of hearing This has been a remote determination on the papers which the parties are taken to have consented to, as explained below. The documents that I was referred to are as submitted by the Applicant and the Respondent. I have noted the contents and my decision is below.

2 Decision The tribunal determined a fair rent of £114 per week with effect from 20 November 2023

Reasons Background

1. On 17 June 2023 the landlord made an [NAME] to register the rent of the property at £700 per month (£161.53 week).

2. On 11 September 2023 the Rent Officer registered a Fair Rent of £114.00 per week, with effect from the same date. This was in lieu of the previous registered rent of £105 per week from 17 September 2023.

3. The Landlord objected, and the matter was referred to the First Tier Tribunal, Property Chamber.

4. The Tribunal issued directions on 21 September 2023, inviting the parties to submit any further representations (including any photographs and details of rentals for similar properties) they wished the tribunal to consider. Reply forms, photographs, further details and submissions were provided by the parties.

The property 5. The tribunal inspected the property on 20 November 2023. The tenant was present at the inspection accompanied by his son.

6. The Property is a self-contained ground floor flat in a pre-1900 conversion. Access is from the rear of the property, from a communal yard/drying area.

7. The accommodation comprises a living room, kitchen, bedroom and a bathroom. The property has double glazing and is heated via wall mounted electric heaters. The carpets, curtains and white goods were provided by the tenant.

8. The kitchen is small, and the units are dated as is the bathroom where there is a bath, wc and whb but no shower.

9. There is parking to the front of the property and on road parking available outside the property.

10. The property appeared to be in reasonable condition but was stacked with the tenant’s possession such that walls and surfaces were hard to view.

3 The law

11. The relevant law is set out in section 70 of the 1977 Act and the MFR Order. We are to have regard to all the circumstances (other than personal circumstances) and in particular to the age, character, locality and state of repair of the Property. We are to disregard the effect on the rental value of any improvements carried out by the tenant (other than in pursuance of the terms of the tenancy). We are also required (by s.70(2)) to assume that the demand for similar rented properties in the locality does not significantly exceed the supply of such properties for rent; in effect, if such scarcity exists, we are to adjust the rental figure so that the fair rent is not affected by it.

12. In [COMPANY] v Chairman of the Greater Manchester etc. Committee (1995) 28 HLR 107 and [NAME] v [NAME] [1999] QB 92, the Court of Appeal confirmed that for the purposes of determining the market rent (before [NAME] any necessary adjustments), open market assured tenancy rents are usually appropriate comparables.

13. By section 72 of the 1977 Act, if the rent is determined by the tribunal, the registration of the rent takes effect from the date we make our decision.

Representations – landlord

14. In his written representations the landlord said that they believed that the increase from £105 to £114 was not in line with current market rates for comparable properties in the area.

15. They had supplied two comparables from Right Move which they said demonstrated that similar properties on [ADDRESS] were currently being rented for amounts ranging from £650 to £695 per calendar month equivalent to £150 to £160 per week. These rates indicated that the proposed rent increase was significantly lower than the prevailing rates for similar properties on the same street.

16. They understood the importance of adhering to the Rent Acts (Maximum Fair Rent) Order 1999 and believed that the appeal was consistent with the principles of fairness and equity in rental agreements.

Representations – tenant

17. The tenant, in his written submission confirmed the accommodation and stated that the condition of all rooms was fair. They also confirmed that the landlord had supplied the heating and the double glazing and that the white goods and carpets and curtains were theirs.

4 Determination

18. First, we need to determine the rent which the landlord could reasonably expect to obtain for the Property in the open market if it were let today in the condition and on the terms now usual for open market lettings.

19. The landlord has supplied two comparables in the area, but both appear to be of a finish and fit out which are superior to the subject property, and both are asking rents – rather than rents achieved.

20. This is a small flat, located in a convenient position for Bedford centre. Based on the limited evidence provided and using its knowledge and experience that this would attract a rent of £630 per month.

21. We then need to adjust this open market rent to disregard the tenant’s goods, reflect the dated kitchen and bathroom, and allow for their internal repairing obligations.

22. To reflect this, the tribunal has made an adjustment of £130 per month to arrive at a fair rent of £500 per month (£115 per week).

23. We then considered whether there should be an adjustment for “scarcity” as referred to in paragraph 15 and decided that there should be no adjustment.

24. On this basis the Tribunal has accepted the rent set by the Rent Officer of £114 per week.

25. The provisions of the Rent Acts (Maximum Fair Rent) Order 1999 require that the registered rent is either the capped Fair Rent, details of which are attached to the decision notice, or the Fair Rent decided by the Tribunal whichever is the lower.

26. The capped rent is £134.00 per week. This is higher than the rent assessed by the Tribunal as set out above and therefore, the rent determined by the tribunal of £114 per week is to be registered.

Name: [NAME](Hons) Date: 20 November 2023

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), which must be on a point of law, then a written [NAME] for

5 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]. 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).