First-tier Tribunal Sets Market Rent for Property

OUTCOME: Allowed

First-tier Tribunal – Property Chamber File Ref No. FR/LON/00AR/MNR/2025/0668

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 FLAT 6 HEATH PARK ROAD ROMFORD ESSEX [POSTCODE]

[NAME]

[NAME]

Landlord [RESPONDENT] [COMPANY] [NAME]

*4. Service charges are not included

[NAME] of Decision 27th May 2025

5. Date assured tenancy commenced 27TH AUGUST 2019

6. Length of the term or rental period MONTHLY

7. Allocation of liability for repairs LANDLORD REPAIRS

8. Furniture provided by landlord or superior landlord None

9. Description of premises A converted self-contained 2 bedroomed flat

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case Reference : FR/LON/00AR/MNR/2025/0668

Hearing Type : Face to Face

Property : [ADDRESS], [POSTCODE]

Applicant: [redacted] : In person

Respondent: [redacted] : [COUNSEL] [NAME] of [RESPONDENT] of Objection : 24 January 2025

Type of Application : Referral in Respect of Market Rent Under Section 13 of the Housing Act 1988

Tribunal Members : [NAME]

[NAME] of Hearing : 27 May 2025

Date of Inspection : 27 May 2025

Date of Full Reasons : 27 May 2025

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STATEMENT OF FULL REASONS ON AN APPLICATION FOR DETERMINATION OF A MARKET RENT UNDER S. 13 AND 14 OF THE HOUSING ACT 1988. REASONS

Background

1. On 20 December 2024 the landlord served a Notice under Section 13(2) of the Housing Act 1988 proposing an increase in the rent of the above property from the passing rent of £1,450.00 per month to £1,575.00 per month.

2. On 24 January 2025 the [APPELLANT] made an application to the Tribunal for the determination of a market rent.

3. The original tenancy was believed to have begun 27 August 2019.

4. The [APPELLANT] occupies the property by way of an Assured Periodic Tenancy.

5. By way of a letter dated 25 March 2025, the Tribunal issued directions. These required the landlord to provide details of evidence on which they wished to rely by way of reply by 16 April 2025. The [APPELLANT] was directed to do the same by 30 April 2025 and the landlord was given until 7 May 2025 for his response thereto.

6. On 28 April 2025 the Tribunal wrote to the parties confirming details for a hearing date and inspection to take place on 27 May 2025.

7. Both parties took the opportunity to make submissions.

8. In consideration of the Market rental value of the subject property, the Tribunal has taken into consideration all documentation before it, including letters and any reply forms returned by the parties.

9. By way of their application dated 24 January 2025, the [APPELLANT] states that they have not made any improvement to the property but have undertaken some decoration.

10. In the [APPELLANT]’s Reply form the [APPELLANT] says that they do require both a hearing and an inspection. They confirm the accommodation to comprise a kitchen / dining area with two bedrooms and a bathroom but state that there is not a living room as such. They mention cracks and blown plaster, an overflowing sink, that the oven is not working fully and that there are leaks in the bathroom. They also advise that there is no heating in the bathroom and this causes some damp and mould.

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Finally, the tenants confirm that the property has double glazing and central hearing and a parking space but no garden.

In addition to the above, the [APPELLANT] does provide some comparable evidence for the calculation of the open market rental value by way of internet screenshots. These are all purpose built flats in relatively modern blocks and all comprise two bedrooms the rents ranging from £1,425.00 per month to £1,500.00 per month.

11. In the landlord’s Reply form the landlord confirms that they require neither an inspection nor a hearing. They do, however, provide floor plans of the property and photographs and confirm that the property is double glazed, centrally heated and benefits from a parking space with communal gardens serving the block.

12. The landlords point out the benefits of the location and proximity to shops and transport facilities.

13. The landlords also provide comparable evidence by way of internet screenshots. These range from £1,650.00 per calendar month to £1,800.00 per calendar month and they are also mainly of 2 bedroomed flats in relatively modern purpose built blocks with one of the comparable properties within a converted 1930s house.

14. From the floor plan, one is able to ascertain that the kitchen / diner referred to by the tenants is, in fact, an open plan lounge / kitchen and that the flat has a total floor area of some 678ft².

15. On 27 May 2025, on the basis of paper submissions and evidence given at the hearing, the Tribunal determined the Market rent of the above property at £1,550 .00 per month

Hearing

16. At the hearing both sides gave evidence. the [APPELLANT] had the benefit of an interpreter.

17. Under questioning the [APPELLANT] confirmed that they had not in fact undertaken any redecoration at the property. they confirmed that they had use of communal garden and that while the property still suffered from mould the oven was no working and there was no longer a leak in the bathroom .

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18. Overall they confirmed that they has a good relationship with the management Agency

19. The [APPELLANT] referred the tribunal to the comparable properties that she had previously detailed and advised that in her opinion the open market rental value of the property in its current condition was £1,500 per month.

20. They advised that they had not seen the landlords reply form and were unable to comment on their comparable however they advised that their appeal was based fundamentally on their affordability.

21. For the landlord Mr [RESPONDENT] of AIG, the managing agents , confirmed that they had mailed a copy of the reply form to the [APPELLANT] on 27th March when it was emailed to the tribunal. The [APPELLANT] advised that she had requested email correspondence to her son which the landlord refuted.

22. The Landlord detailed the method they used when advising their landlords of a rent increase. referencing their comparables thy said that in their opinion the rent could be set at a figure higher than that in the notice (between £1,600 and £1,800 ) but where a [APPELLANT] had complied with the terms of their tenancy they advised their Landlords to seek a slightly reduced rent and this was the case here .

23. Finally, Mr [NAME] confirmed that he was aware of the tenants evidence . he said that while there were properties on the market at lower rent than his comparable evidence showed he was of the opinion that the subject property was better than average and and thus comparables in a higher rent range were more appropriate.

Hardship

24. On the issue of hardship, the [APPELLANT] advised that they were not working due to ill health and that their only income was from benefits . They confirmed that the property was occupied by them and their son.

25. No evidence of the tenants financial position was produced .

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Inspection

26. The Tribunal attended the property to undertake an inspection at 12:30 on 27th May

27. The accommodation comprises: A lounge / kitchen, 2 bedrooms and bathroom / WC

28. During the inspection, both [APPELLANT] and [NAME] representing the Landlord were present.

29. On arrival the Tribunal notified the parties that they should be provided with access to all possible areas of the property but that she could not provide any additional evidence nor engage in conversation about the property nor the rental value thereof.

30. All rooms were accessible.

31. The flat is a good sized two bedroomed flat . Cracks referred to in the tenants’ submissions were seen but plaster was not blown. The presence of cracks reflect a general lack of maintenance and while the flat is relatively modern there are cracks, worn flooring, mould and peeling paint in the bathroom .and a general need for redecoration. This in the tribunals view would affect the rental value.

The Law

32. When determining a market rent in accordance with the Housing Act 1988 Section 13 regard must be had to all of the circumstances (other than personal circumstances) including the age, location and state of repair of the property, matters contained within the rent, repairing obligations, etc. This means that issues such as the [APPELLANT]’s ability to pay the rent or bills associated with the property are not a consideration for the tribunal in assessing the rent.

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Valuation

33. Following consideration of the written and photographic submissions given by both parties, the hearing and taking into account the Tribunal’s inspection and using its own knowledge and experience of the rental market in Romford, the Tribunal finds that the market rental value of the property, in its current condition is £1,550.00 per month.

Hardship

34. Taking into account the oral submissions by both parties, the Tribunal is of the opinion that there was insufficient evidence for the tribunal to make an allowance to the [APPELLANT] on the grounds of hardship. The effect date of the rent increase is therefore the date within the landlords notice , 27th January 2025.

Chairman:

[NAME] Chairman

Date:

27 May 2025

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ANNEX OF RIGHTS FOR MARKET RENTS

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 might have.

If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber), then a written application for permission must be made to the First-tier Tribunal at the regional office which has been dealing with this case

The application for permission to appeal must arrive at the regional office within 28 days after the Tribunal sends written reasons for the Decision to the person making the application.

If the application is not made within the 28 day time limit, such application 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 application for permission to appeal to proceed, despite not being within the time limit.

The application 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 making the application is seeking. Any appeal in respect of the Housing Act 1988 should be on a point of law.

If the Tribunal refuses to grant permission to appeal, a further application for permission may be made to the Upper Tribunal (Lands Chamber).