First-tier Tribunal Sets Market Rent at £1,750 per Month

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. CAM/26UE/MNR/2025/0672

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 [ADDRESS], [POSTCODE]

[NAME] [NAME]

Landlord [RESPONDENT] and [RESPONDENT] J [RESPONDENT] 4 [ADDRESS], [POSTCODE]

[NAME]

1. The rent is: £ 1,750 Per month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 28 May 2025

3. The amount included for services is

not applicable Per

4. Date assured tenancy commenced 28 August 2021

5. Length of the term or rental period 12 months

6. Allocation of liability for repairs LL to comply with s11 LTA 1985

8. Furniture provided by landlord or superior landlord N/A

9. Description of premises The Property comprises a duplex flat over a parade of shops. The Tribunal understands that, prior to this immediate letting, the Property was occupied as an office that was converted to residential use in circa 2021. The accommodation comprises an open-plan lounge and kitchen on the first floor and two bedrooms together with an ensuite and shower room on the second floor. There is double glazing and central heating throughout and the Property is fitted to a modern standard. There is an allocated car parking space.

Chairman P [NAME] of Decision 29 August 2025

© CROWN COPYRIGHT

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : CAM/26UE/MNR/2025/0672 HMCTS code : P:PAPERREMOTE

Property : [ADDRESS], [POSTCODE] Applicant (Tenant) : [APPELLANT] Respondent (Landlord) : [APPELLANT] and [RESPONDENT] of [NAME] : Determination of a Market Rent: Sections 13 and 14 Housing Act 1988 Tribunal members : Mr [NAME] [NAME] of Determination : 29 August 2025

DECISION

This has been a remote determination on the papers which the parties are taken to have consented to, as explained below. The form of determination was a paper determination described above as P:PAPERREMOTE The documents that the Tribunal was referred to are in bundles from the Applicant and the Respondent. The Tribunal has noted the contents and the decision is below.

2

Decision The Tribunal determined a market rent of £1,750 pm effective from 28 May 2025.

Reasons Background 1. The Landlord served notice under section 13 (2) of the Housing Act 1988 on 17 April 2025 to increase the passing rent from £1,400 per month to £1,750 per month with effect from 28 May 2025.

2. The Tenant made an [NAME] dated 26 April 2025 to the Tribunal in reliance on section 13 (4) of the Housing Act 1988.

3. This rent in all cases is stated to be exclusive of Council Tax, Water Charges and fixed service charges.

4. The Tribunal issued directions on 15 May 2025, inviting the Parties to submit any further representations (including any photographs and details of rentals for similar properties) they wished the tribunal to consider.

Property 5. The Tribunal inspected the Property on 21 July 2024.

6. The Property comprises a duplex flat over a parade of shops. The Tribunal understands that, prior to this immediate letting, the Property was occupied as an office that was converted to residential use in circa 2021.

7. The accommodation comprises an open-plan lounge and kitchen on the first floor and two bedrooms together with an ensuite and shower room on the second floor. There is double glazing and central heating throughout and the Property is fitted to a modern standard. There is an allocated car parking space. Tenancy 8. The Tenant first occupied the Property by virtue of a Tenancy dated 28 August 2021 and commencing the same day at an initial rent of £1,400 pm and a term of 12 months.

9. Clause 5 of the Tenancy grants the right to use one parking space within the covered bay within the common yard at the rear of the Parade.

10. Clause 38 requires the Tenant to “…keep the Property in good repair and condition and in good decorative order.”

3 11. The Tenancy is silent in respect of the Landlord’s repair obligations. However, section 11 of the Landlord and Tenant Act 1985 applies as set out below.

12. A statutory Periodic Tenancy arose on expiry of the term of the Tenancy. The Law 13. Section 5 (3) of the Act provides that the periodic tenancy arising on expiry of the Assured Shorthold Tenancy is one: “(a) taking effect in possession immediately on the coming to an end of the fixed term tenancy; (b) deemed to have been granted by the [NAME] under the fixed term tenancy immediately before it came to an end to the [NAME] under that tenancy; (c) under which the premises which are let are the same dwelling- house as was let under the fixed term tenancy; (d) under which the periods of the tenancy are the same as those for which rent was last payable under the fixed term tenancy; and (e) under which, subject to the following provisions of this Part of this Act, the other terms are the same as those of the fixed term tenancy immediately before it came to an end, except that any term which makes provision for determination by the landlord or the tenant shall not have effect while the tenancy remains an assured tenancy” 14. Section 14 (1) of the 1988 Act provides that the Tribunal is required to determine the rent at which the Property might reasonably be expected to let in the open market by a willing landlord under an assured tenancy: a. “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 rent) are the same as those of the existing tenancy.” 15. Section 14 (2) of the 1988 Act requires the Tribunal to disregard: a. “Any effect on the rent attributable to the granting of a tenancy to a sitting tenant;

4 b. Any increase in the value of the dwelling-house attributable to a relevant improvement (as defined by section 14 (3) of the Act) otherwise than as an obligation; 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.” 16. Section 11 of the Landlord and Tenant Act 1985 (the 1985 Act), provides that the Tribunal is to imply a covenant by the Landlord: a. “to keep in repair the structure and exterior of the dwelling- house (including drains, gutters and external pipes), b. to keep in repair and proper working order the installations in the dwelling-house for the supply of water, gas and electricity and for sanitation (including basins, sinks, baths and sanitary conveniences, but not other fixtures, fittings and appliances for [NAME] use of the supply of water, gas or electricity), and c. to keep in repair and proper working order the installations in the dwelling-house for space heating and heating water.” 17. Section 14 (7) of the 1988 Act states: “Where a notice under section 13(2) above has been referred to the appropriate tribunal, then, unless the landlord and the tenant otherwise agree, the rent determined by the appropriate tribunal (subject, in a case where subsection (5) above applies, to the addition of the appropriate amount in respect of rates) shall be the rent under the tenancy with effect from the beginning of the new period specified in the notice or, if it appears to the appropriate tribunal that that would cause undue hardship to the tenant, with effect from such later date (not being later than the date the rent is determined) as the appropriate tribunal may direct.” Representations – The Tenant 18. The Tenant completed the Reply Form. Concerns were raised in respect of ant-social behaviour and personal matters. Representations – The Landlord 19. The Landlord emailed the Tribunal on 26 May 2025 enclosing a Reply Form, a Photographic Inventory of the Property prior to first occupation by the Tenant and a number of advertisements for other flats.

20. The Landlord commented as follows: a. The Property was converted from offices in 2021 and “…built to a high standard of insultation against sound and heat loss, with

5 new double-glazed windows, full wall and roof space insulation. Kitchens were fitted with modern appliances; the bath and shower rooms had modern plumbing and sanitary ware.” b. “…. comparable rents have increased by over 35% since she first occupied the flat at the end of August 2024 (sic)” c. “Our identical flat, No. 1 8 Furzehill Parade, was let in April 2024, at a rent of £1,750 per calendar month…” d. “…. Following complaints that the rooms were not adequately warmed, we installed larger radiators to provide stronger heating. An early complaint of mould formation in the master bedroom was found to be due to a deficient seal around the window frame and was fully rectified at our expense. The recent report of mould in the second bedroom was attributed to condensation, possibly from clothes draying, and a builder is in process of remedying this at time of writing.” Determination 21. In determining the market rent, the Tribunal has regard to prevailing levels of rent in the general locality and achieved rental values in respect of other properties of comparable accommodation and provision.

22. The current rent, and the period that has passed since that rent was agreed or determined is not relevant. Previous changes in rent are, therefore, disregarded as the Tribunal is required to assess the rent that would be offered by a prospective tenant who has no knowledge of the existing or previous rents. Similarly, historic rents are of limited relevance.

23. The legislation requires the Tribunal to have regard to market demand assuming that the landlord is willing. The Tribunal is therefore unable to have any regard to the personal circumstances or identities of the [NAME] landlord and tenant in assessing the level of rent.

24. It is therefore irrelevant whether or not the Landlord requires the rent to be at a certain level to fund its liabilities and/or its repair obligations under the lease or whether the Tenant feels that the services provided by the Landlord are “value for money.” As such, the cost of mortgage payments and property maintenance to the Landlord does not affect the rent that would be offered by a prospective tenant in the market and must be disregarded. Similarly, the ability, or otherwise, of the Tenant to pay the rent demanded cannot be taken into account.

25. As such, whilst the Tribunal understands the Tenant’s personal circumstances it is unable to have regard to them and must assuming that the Property is “vacant and to let.”

6 26. In this regard, whilst the valuation exercise assumes that, regardless as to the condition of the Property, a hypothetical tenant would be prepared to take occupation and negotiate a rent, it does not follow that the [NAME] and the hypothetical tenant are one and the same. As such, the [NAME] may be prepared to pay a certain level of rent to remain in occupation for personal reasons whereas the hypothetical tenant is bidding on the assumption that the Property is vacant and to let.

27. The Tribunal places the greatest weight on the letting of No.1 @ 8 Furzehill Parade, in April 2024, at a rent of £1,750 per calendar month. In this regard, the Tribunal notes the Tenant’s comments in respect of their experiences at the Property. However, the market would take into account that it is only a four-minute walk from the train station and close to Tesco and Aldi and the general retail area whilst also benefitting from off-street car parking.

28. Bearing these matters in mind, the Tribunal has reviewed all the evidence provided, relied upon its own expertise and knowledge of such matters and determines the market rental of the Property to be £1,750 per month. The rent payable may not, therefore, exceed this figure. However, this does not prevent the Landlord from charging a lower figure.

29. This rent is to be effective from 28 May 2025.

Name: [NAME] [NAME]: 29 August 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]. 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.

7 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).