First-tier Tribunal Sets Market Rent for Assured Tenancy Property

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. CAM/22UQ/MNR/2025/0613

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 35 [ADDRESS] [POSTCODE]

[NAME] [NAME]

Landlord [NAME] C/O [ADDRESS], [POSTCODE]

[NAME], T Haoughton and [NAME]

1. The rent is: £ 1,950 Per month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 17 January 2025

3. The amount included for services is

not applicable Per

4. Date assured tenancy commenced 20 November 2023

5. Length of the term or rental period 12 months

6. Allocation of liability for repairs Tenant liable for internal 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 modern semidetached house of brick and tile providing a lounge, dining room, hallway, kitchen and shower room at ground floor level and four bedrooms with a family bathroom at first floor level. There is hard surfaced off-road car parking for two vehicles and a private garden to the rear.

[NAME] of Decision 15 May 2025

© CROWN COPYRIGHT

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : CAM/22UQ/MNR/2025/0613 HMCTS code : P:PAPERREMOTE

Property : 35 [ADDRESS], [POSTCODE] Applicant (Tenant) : V [APPELLANT], T [APPELLANT] and [NAME] Respondent (Landlord) : [RESPONDENT] of [NAME] : Determination of a Market Rent: Sections 13 and 14 Housing Act 1988 Tribunal members : Mr [NAME] [NAME] of Determination : 15 May 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 £1,950 per calendar month effective from 17 January 2025.

Reasons Background

1. The Landlord served notice under section 13 (2) of the Housing Act 1988 on 5 December 2024 to increase the passing rent from £1,600 per month to £2,200 per month with effect from 17 January 2025.

2. The Tenant made an [NAME] dated 27 December 2024 to the Tribunal in reliance on section 13 (4) of the Housing Act 1988.

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

4. The Tribunal issued directions on 23 January 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 has not inspected the Property but has relied upon the submissions of the Parties together with information in the public domain including Google Images and Rightmove Sales Particulars.

6. The Property comprises a modern semidetached house of brick and tile providing a lounge, dining room, hallway, kitchen and shower room at ground floor level and four bedrooms with a family bathroom at first floor level.

7. There is hard surfaced off-road car parking for two vehicles and a private garden to the rear.

8. The freehold interest is currently on the market at an asking price of £400,000 on the basis of vacant possession. Tenancy 9. The Tenant occupied the Property by virtue of an Assured Shorthold Tenancy that commenced 20 November 2023 for a term of 12 months.

10. The rent reserved under this Tenancy was £1,600 pcm.

3 11. The definition of the demised Premises states: “References to “the Premises” include reference to any parts or parts of the Premises and the curtilage of the same, together with the garden, garage and parking space...” 12. The Tenant’s obligations in respect of repair and cleaning are set out in Section B of the Tenancy. The Landlord’s obligations are set out in Section D.

13. The Tribunal has reviewed the entirety of the Tenancy but only drawn attention to those matters directly relevant to these proceedings. The Law 14. 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 person who was the landlord 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” 15. 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.” 16. Section 14 (2) of the 1988 Act requires the Tribunal to disregard:

4 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 (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.” 17. 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.” 18. 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 The Tenant completed the Reply Form but did not submit any further representations to set out its opinion of value or evidence. Representations – The Landlord 19. The Landlord explained the background behind the letting of the Property and set out that other rentals in the locality start at £2,250 per month.

5 Determination 20. For clarity, the Tribunal has had regard to all the correspondence and evidence provided by the Parties but is unable to refer to or make observations in respect of each point and document provided to it.

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 that would be likely to be considered by a prospective tenant. The current rent, and the period that has passed since that rent was agreed or determined is not relevant.

22. Previous changes in rent are not, therefore, relevant 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 achieved elsewhere 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 actual 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.

25. The Tribunal has reviewed all the evidence provided and applied its own knowledge of the market. In this regard, it determines the market rental of the Property as at the effective dated to be £1,950 pcm. The rent payable may not, therefore, exceed this figure. However, this does not prevent the Landlord from charging a lower figure.

26. This rent is to be effective from 17 January 2025.

Name: [NAME] [NAME]: 15 May 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.

6 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. 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).