First-tier Tribunal Sets Market Rent for Assured Tenancy

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. CHI/29UH/MNR/2021/0058

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 15 [ADDRESS], [POSTCODE]

[NAME] Mr [RESPONDENT] Mr [RESPONDENT]

Landlord Mr [RESPONDENT] [NAME] 16 [ADDRESS], [POSTCODE]

Tenant Mr [APPELLANT]

1. The rent is: £ 900.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 06 June 2021

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

4. Date assured tenancy commenced 06 June 2018

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 Terraced house with three bedrooms.

[NAME] of Decision 29 July 2021

© CROWN COPYRIGHT 2021

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : CHI/29UH/MNR/2021/0058 Property :

15 [ADDRESS] [POSTCODE]

Landlord : Mr [COUNSEL] : None Tenant : Mr [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. Decided on papers Date of Decision : 29th July 2021

DECISION

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2

Summary of Decision

1. On 29th July 2021 the Tribunal determined a market rent of £900 per month to take effect from 6th June 2021.

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 March 2021 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £975 per month in place of the existing rent of £782.95 per month to take effect from 6th June 2021. The original tenancy had been for two years commencing 6th June 2018. The notice complied with the legal requirements.

4. On 1st June 2021 the Tenant made an application 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 28th June 2021 informing the parties that 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 Tenant submitted papers by the specified dates. The papers were also copied to the Landlord. A Tribunal was convened for 29th July 2021 using video conferencing.

The Property 8. The property is described as a former local authority owned terraced house and appears to have rendered elevations beneath a pitched and tiled roof.

9. The accommodation includes a Living Room, Kitchen, three Bedrooms, Bathroom and Garden. The property has double-glazed windows and a central heating system.

10. The property is situated in a residential area about two miles to the South of the centre of Maidstone. Shopping, transport and schools are within reasonable distance.

Submissions 11. The Tenant states that following “a huge leak from a split radiator in the Bathroom” he has replaced the tiled flooring to the ground floor, renewed the Kitchen ceiling and is replastering the kitchen walls damaged in the same leak. He has also replaced a fence, laid a timber

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3 deck in the garden and installed new 6ft. high driveway gates to improve security.

12. The Tenant states that carpets, curtains and white goods are not included with the property, that a number of the double-glazed windows are ‘blown’ and that the Kitchen units are old and in poor condition. He provided thirty-nine photographs in support of his application and suggests that the cost of repairs he has carried out should be reflected in the rent and argues that the rent should not be increased.

13. The landlord made no representations.

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 [NAME] 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 concerned but arose by reference to consent given to the carrying out of that improvement; and

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4 (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 14. 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.

15. 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 [NAME] under an assured tenancy. The personal circumstances of the Tenant are not relevant to this issue.

16. Having carefully considered the representations from the parties and associated correspondence and using its own judgement and knowledge of rental values in Maidstone 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 £1,250 per month.

17. However, the property is not in such condition as would normally be expected to achieve such a rent and the Tribunal decided that a number of adjustments should be made to reflect this.

18. The Tribunal decided that deductions should be made for the lack of a modern Kitchen, lack of a modern Bathroom, Tenant’s provision of carpets and curtains, the Tenant’s provision of some white goods and general disrepair as evidenced in the photographs provided.

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5 19. Using its experience, the Tribunal decided that the following adjustments should be made:

Tenant’s provision of white goods £50 Tenant’s provision of carpets and curtains £50 Dated kitchen £100 Dated bathroom £50 General disrepair including ‘blown’ windows £100

____ TOTAL £350

20. The Tribunal noted that the Tenant had carried out some repairs to the property and whilst he may have felt that he had improved security the Tribunal decided that this did not justify any further reductions to the rent. 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 [NAME] under the terms of this assured tenancy was £900 per month. 22. The Tribunal directed that the new rent of £900 per month should take effect from 6th June 2021, this being the date within 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.

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.

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6 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