First-tier Tribunal Sets Market Rent at £1,500 for Assured Tenancy

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. CHI/43UH/MNR/2022/0109

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 13 Broadacre, Staines, Surrey, [POSTCODE]

[NAME] Mr [RESPONDENT] Mr [RESPONDENT] [NAME]

Landlord [NAME] c/o [NAME], [ADDRESS], [POSTCODE]

Tenant Ms [APPELLANT]

1. The rent is: £ 1500.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 01 October 2022

3. The amount included for services is not applicable n/a Per n/a

4. Date assured tenancy commenced 01 December 2017

5. Length of the term or rental period Monthly

6. Allocation of liability for repairs Landlord

7. Furniture provided by landlord or superior landlord None

8. Description of premises Modern inner terraced house with 3 bedrooms.

[NAME] of Decision 8 November 2022

© CROWN COPYRIGHT 2022

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : CHI/43UH/MNR/2022/0109 Property :

13 Broadacre Staines Surrey [POSTCODE]

Landlord : G S & [COUNSEL] :

[NAME]

Tenant : Ms [COUNSEL] : None Type of Application :

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

Tribunal Members : Mr [NAME] Mr [NAME] Mr [NAME] of Inspection : None. Paper determination Date of Decision :

8th November 2022

DECISION

CHI/43UH/MNR/2022/0109 2 Summary of Decision

1. On 8th November 2022 the Tribunal determined a market rent of £1,500 per month to take effect from 1st October 2022.

Background 2. The case concerned the determination of a market rent for the subject property following a referral of the Landlord’s notice of increase of rent by the Tenant pursuant to sections 13 and 14 Housing Act 1988.

3. On 30th August 2022 the Landlord’s Agent served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £1,550 per month in place of the existing rent of £1,365 per month to take effect from 1st October 2022. The notice complied with the legal requirements.

4. On 5th September 2022 the Tenant applied to the Tribunal under Section 13(4) (a) of the Housing Act 1988.

5. The Coronavirus pandemic and considerations of health have caused a suspension of inspections and Tribunal hearings in person until further notice.

6. The Tribunal issued directions on 30th September 2022 informing the parties that, unless either party objected, the Tribunal intended to determine the rent based on written representations. The parties were invited to make submissions which could include photographs or videos.

7. Both parties submitted detailed papers by the specified dates very clearly setting out their respective cases. The papers were also copied to the other party.

8. Neither party objected to the matter being determined without an oral hearing, so the Tribunal determined the case on 8th November 2022 based on the written representations received. The Property 9. From the information given in the papers and available on the internet, the property comprises a modern mid-terraced house with brick elevations beneath a tiled roof. The property is situated in a small cul-de-sac of similar properties close to Staines Railway Station on the eastern side of Staines. All main amenities are within reasonable distance.

10. The accommodation comprises a Hall with WC off, Living Room and Kitchen all at ground level. Stairs rise from the Hall to a Landing, three Bedrooms and a Bathroom with WC. Outside there are gardens to front and rear and a garden Shed. Parking is limited to on-street only.

11. The property has gas central heating, double glazed windows and a ‘C’ Energy Performance Rating.

12. Carpets, curtains and white goods are all provided by the Landlord although the Tenant has substituted her own curtains to some rooms.

CHI/43UH/MNR/2022/0109 3 Submissions 13. The initial tenancy began on 1st December 2017 and the rent was increased to £1,350 on 1st December 2018.

14. The Landlord’s Agent states that the Kitchen was refitted in 2016 and the electrical wiring was renewed in 2021. The Agent also provided details of repairs and replacements that have taken place during the tenancy, supported by contractors and suppliers’ invoices.

15. The Tribunal was supplied with photographs by both parties including some taken on 7th October 2022 which show some minor repairs needed, slight deterioration in decorations and some black mould growth.

16. The Tribunal was also supplied with details of 4-bedroom terraced and semi- detached properties available to let in the general area at rents between £1,500 and £2,250 per month. The Law

S14 Determination of Rent by First-tier Tribunal

(1) Where, under subsection (4) (a) of section 13 above, a tenant refers to a First-tier Tribunal a notice under subsection (2) of that section, the Tribunal shall determine the rent at which, subject to subsections (2) and (4) below, the Tribunal 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 [NAME]; (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

CHI/43UH/MNR/2022/0109 4 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 (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 [NAME], 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, in respect of council tax 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.

Consideration and Valuation

17. The Tribunal first considered whether it felt able to reasonably and fairly decide this case based on the papers submitted only with no oral hearing. Having read and considered the papers it decided that it could do so.

18. The Tribunal is required to determine 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. The personal circumstances of the [NAME] are not relevant to this issue.

19. Having carefully considered the representations from the parties and associated correspondence and using its own judgement and knowledge of rental values in the Staines area the Tribunal decided that the market rent for the subject property if let today in a condition that was usual for such an open market letting would be £1,550 per month.

20. Based on its knowledge the Tribunal finds that the market for this type of property is very sensitive to condition and inventory and therefore decided that this rent should be adjusted slightly to take account of the number of relatively small repair issues identified in the photographs provided. The Tribunal considered that a monthly figure of £50 should fairly reflect this.

CHI/43UH/MNR/2022/0109 5 21. The Tenant made no representation that the starting date for the new rent specified in the Landlord’s notice would cause the Tenant undue hardship. Determination 22. The Tribunal therefore decided that the rent at which the subject property might reasonably be expected to be let in the open market by a willing Landlord under the terms of this assured tenancy was £1,500 per month.

23. The Tribunal directed that the new rent of £1,500 per month should take effect from 1st October 2022, this being the date specified in the notice.

RIGHTS OF APPEAL

1. A person wishing to appeal this decision to the Upper Tribunal (Lands Chamber) must seek permission to do so by making written application to the First-tier Tribunal at the Regional office which has been dealing with the case. Where possible you should send your application for permission to appeal by email to [EMAIL] as this will enable the First-tier Tribunal Regional office to deal with it more efficiently.

2. The application must arrive at the Tribunal within 28 days after the Tribunal sends to the person making the application written reasons for the decision.

3. If the person wishing to appeal does not comply with the 28-day time limit, the person shall include with the application for permission to appeal a request for an extension of time and the reason for not complying with the 28-day time limit; the Tribunal will then decide whether to extend time or not to allow the application for permission to appeal to proceed.

4. The application for permission to appeal must identify the decision of the Tribunal to which it relates, state the grounds of appeal, and state the result the party making the application is seeking.