First-tier Tribunal Sets New Market Rent for Assured Tenancy

OUTCOME: Dismissed

MR22 First-tier Tribunal – Property Chamber File Ref No. GB/LON/00AU/MNR/2024/0117

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 21 [ADDRESS], [POSTCODE]

R [NAME]

Landlord [NAME], [ADDRESS], [POSTCODE]

Tenant Mrs [APPELLANT]

1. The rent is: £ 692.30 Per Week (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 11 July 2024

*3. The amount included for services is/is

negligible/not applicable 3.21 Per Week

*4. Service charges are variable and are not included

5. Date assured tenancy commenced 29 May 2002

6. Length of the term or rental period Weekly assured

7. Allocation of liability for repairs Landlord

8. Furniture provided by landlord or superior landlord n/a

9. Description of premises 3 Bedroom terraced house small outside paved space

Chairman R [NAME] of Decision 11 July 2024

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FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case reference : LON/OOAU/MNR/2024/0017

Property : 21 [ADDRESS]

[POSTCODE]

[NAME] : [COUNSEL] : In Person

Respondent Landlord : [NAME] : In Person

Type of application : Determination of a Market Rent

Sections 13 & 14 Housing Act 1988

Tribunal member(s) : [NAME] of determination : 11 July 2024

Date of reasons : 11 July 2024

REASONS

© CROWN COPYRIGHT

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Decision of the Tribunal

On 11 July 2024 the Tribunal determined a Market Rent of £692.30 per week including services, to take effect from 11 July 2024. It should be noted that the amount determined represents the market rent determined under section 13, the landlord may choose to charge less.

Background

1. By way of an application received by the Tribunal on 29 February 2024 the [NAME] of 21 [ADDRESS] , [POSTCODE] (hereinafter referred to as “the property”) referred a Notice of Increase in Rent (“the Notice”) by the Respondent landlord of the property under Section 13 of the Housing Act 1988 (“the Act”) to the Tribunal.

2. The Notice, dated 6 February 2024, proposed a new rent of £188.95 per week plus £3.21 per week service charge per week totaling £ 192.16 per week in lieu of a passing rent of £175.49 per week with minus £0.67 per week service charge totaling £174.77 per week.

3. The property was let to the Tenants by way of a weekly Assured Tenancy agreement commencing 20 May 2002. A copy of the tenancy agreement was provided.

4. On 15 May 2024, the Tribunal issued Directions advising the parties that it considered the matter suitable for determination on the papers unless either party objected, in writing, within 7 days. In accord with current Tribunal policy the parties were advised that no inspection would be undertaken. No objections were received.

5. The Directions required the Landlord and Tenant to submit their completed statements to the Tribunal by 5 June 2024 and 12 June 2024 respectively, with copies to be sent to the other party. Both parties complied.

6. Having reviewed the submissions, the Tribunal concluded that the matter remained capable of being determined fairly, justly and efficiently on the papers, consistent with the overriding objective of the Tribunal.

7. These reasons address in summary form the key issues raised by the parties. They do not recite each point referred to in submissions but concentrate on those issues which, in the Tribunal’s view, are fundamental to the determination.

Law

8. In accordance with the terms of Section 14 of the Act, the Tribunal is required to determine the rent at which it considers the subject property might reasonably be expected to let on the open market, by a willing Landlord, under an assured tenancy, on the same terms as the actual tenancy.

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9. In so doing, and in accordance with the Act, the Tribunal ignores any increase in value attributable to tenants’ improvements and any decrease in value due to the tenants’ failure to comply with any terms of the tenancy.

The Property

10. The Tribunal did not inspect the property. From the Application form it is understood to comprise a terraced house with a living room and open plan kitchen, three bedrooms, one ground floor WC, a first-floor bathroom and a paved outside area.

Submission – Tenants

11. The Tenants’ submissions, excluding consideration of personal circumstances which are to be disregarded in setting a market rent under the Act, can be summarised as follows.

12. From the Application Form, the tenants had improved the property by ; installing a breakfast bar in the kitchen, slate floor in the kitchen, wooded flooring in living room, hallway and ground floor bedroom, lino in ground floor WC and first floor bathroom, and carpeting in the two upstairs bedrooms, landing and stairs.

13. From the Application Form, the Landlord being responsible for external, internal repairs and the Tenant to keep the fixtures and fittings in good order. Additionally, the Tenancy Agreement and the Notice of Increase of Rent were included.

14. The Tenant returned a completed Reply Form noting the property is double glazed, has central heating both supplied by the landlord and curtains/carpets and white goods supplied by the tenant. There is an allocated off-road parking space. A new kitchen and new boiler were fitted in 2021. 15. Additional concern expressed over the size of the rent increase and potential hardship occurring.

Submissions- Landlord

16. There were no submissions from the landlord.

Determination

17. The Tribunal has carefully considered all the submissions before it.

18. The Tribunal determines a market rent for a property by reference to rental values generally and, in particular, to the rental values for comparable properties in the locality. The Tribunal has no regard to the current rent and the period of time which that rent has been charged, nor does it take into account the percentage increase which the proposed rent represents to the passing rent. In addition, the legislation makes it clear that the Tribunal is unable to account for the personal circumstances of either the Landlord or the Tenant.

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19. The date at which the Tribunal assesses the rent is the effective date contained within the landlord’s Notice which, in this instance, is the 1 April 2024. The Tribunal disregards any improvements made by the tenants but has regard to the impact on rental value of disrepair which is not due to a failure of the tenant to comply with the terms of the tenancy.

20. In the first instance, the Tribunal determined what rent the Landlord could reasonably be expected to obtain for the property in the open market, if it were let on the effective date and in the condition that is considered usual for such a market letting.

21. The Landlord relies upon a basket of comparable properties advertised as available to let.

22. The Tribunal weighed the parties’ comparable evidence against its own expert knowledge as a specialist Tribunal and having regard to the nature, specification and size of the subject property determined £3000.00 per month, equivalent to £692.30 per week including the services provided for under the tenancy.

23. The Tribunal is grateful for the submissions on condition by the tenant.

24. Accordingly, the Tribunal finds no adjustments are warranted and the rent determined is £692.30 per week, including the services provided for under the tenancy.

25. The Tenants made no submissions to the Tribunal in regard to delaying the effective date of the revised rent on the ground of undue hardship under section 14(7) of the Act. However there was evidence of hardship within the application. Accordingly, the rent of £692.30 per week will take effect from 11 July 2024.

[NAME]: 11 July 2024

RIGHTS OF APPEAL

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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.