First-tier Tribunal Sets Market Rent for Assured Tenancy

OUTCOME: Allowed in Part

MR22 First-tier Tribunal – Property Chamber File Ref No. CHI/24UG/MNR/2023/0217

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], Church Crookham, Hampshire, [POSTCODE]

[NAME] Mr [RESPONDENT]

Landlord [COMPANY] c/o [NAME], 2 [ADDRESS], [POSTCODE]

Tenant Miss [APPELLANT] [NAME]

1. The rent is: £ 1275.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 29 September 2023

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

4. Date assured tenancy commenced 29 March 2018

5. Length of the term or rental period Periodic Tenancy

6. Allocation of liability for repairs In accordance with agreement

7. Furniture provided by landlord or superior landlord None

8. Description of premises

A system built mid terrace house with 3 bedrooms, living room, kitchen, bathroom, cloakroom, garage in block.

[NAME] of Decision 24 October 2023

© CROWN COPYRIGHT 2023

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : CHI/24UG/MNR/2023/0217 Property : [ADDRESS], Church Crookham, Hampshire, [POSTCODE] Applicant Tenant : Miss [COUNSEL] [NAME] :

None

Respondent Landlord : [NAME]) [RESPONDENT] : [NAME] of Application :

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

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

24th October 2023

DECISION

2

Summary of Decision 1. On the 24th October 2023 the Tribunal determined a market rent of £1,275 per month to take effect from 29th September 2023. 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 the 23rd August 2023 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £1,350 per month in place of the existing rent of £1,100 per month to take effect from 29th September 2023. The notice complied with the legal requirements.

4. On the 1st September 2023 the Tenant appealed to the Tribunal under Section 13(4) (a) of the Housing Act 1988.

5. The Tribunal does not consider it necessary and proportionate in cases of this nature to undertake inspections or hold Tribunal hearings unless either are specifically requested by either party or a particular point arises which merits such an inspection and/or hearing.

6. The Tribunal issued directions on 20th September 2023 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. The Tribunal did not receive significant representations from either party and the rent appeal statements were not completed.

8. Neither party objected to the matter being determined without an oral hearing, so the Tribunal determined the case on the 24th October 2023 based on the limited documents received. The Property 9. From the information given in the papers and available on Rightmove and Google maps, the property comprises a system built mid-terrace two storey house evidently built during the 1970s with render and tile hung elevations under a pitched roof. The accommodation comprises three bedrooms, living room, kitchen, bathroom/WC and cloakroom. There is a garage in a block. The property is located in walkway position and forms part of an established estate close to Church Crookham and Fleet.

10. There is gas central heating, double glazed windows and carpets which are some 17 years old. There is a Beko oven in the kitchen. It is unknown whether curtains and white goods were provided at the commencement of the tenancy.

3

Submissions 11. The assured shorthold tenancy agreement was provided which commenced on the 29th March 2018 for a period of 6 months, 12. As previously mentioned, the parties did not complete the Rent Appeal Statements and limited submissions were provided by the tenant in a covering letter dated 1st September 2023.

13. In this letter, it is stated that No 151 has had the rent increased to £1,125 in July 2023, with new floor coverings, curtains, and white goods. Further, it is stated No 145 has recently let at £1,200 in a completely refurbished condition. Finally, No’s 156 and 50, being 4 bedroom houses recently let at £1,300 and £1,137.40 respectively. In each of these cases, no evidence was provided of these transactions and therefore, the Tribunal is only able to place limited weight on this evidence.

14. The Energy Performance Rating for the property confirms an energy rating of C69, above average and it is confirmed the floor area is 86m2. 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 sitting tenant; (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

4 (ii) was carried out pursuant to an obligation to his immediate landlord being an obligation which did not relate to the specific improvement 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 joint tenants, 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 15. 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.

16. 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 Tenant are not relevant to this issue.

17. Having carefully considered the limited representations from the parties and associated correspondence and using its own judgement and knowledge of rental values in the Church Crookham 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 £1,350 per month.

18. However, the property is not let in such a condition as would command this full rent and the Tribunal needs to make some adjustment to this full rent to allow for the dated condition of the fittings.

19. The Tribunal has considered very carefully each parties submissions and using its own expertise, considers that a deduction of £75 is appropriate in order to

5 take account of the general lack of refurbishment. This reduces the rental figure to £1,275 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.

20. 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 21. 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 £1,275 per month.

22. The Tribunal directed that the new rent of £1,275 per month should take effect from 29th September 2023, this being the date specified in the Notice.

23. In reaching its decision the Tribunal is aware that the average rate for rental properties in the Southeast has increased every quarter since 2019, according to the online property portal Rightmove. The increase in rents has be accentuated by a lack of supply and significant demand.

[NAME] 24th October 2023

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 by email to [EMAIL] to the First-tier Tribunal at the Regional office which has been dealing with the case.

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.