First-tier Tribunal Sets New Market Rent for Assured Tenancy

OUTCOME: Allowed in Part

MR22 First-tier Tribunal – Property Chamber File Ref No. CHI/29UN/MNR/2023/0224

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 190 [ADDRESS], [POSTCODE]

[NAME] Miss [RESPONDENT] Mr [RESPONDENT]

Landlord Ms [RESPONDENT] 69 [ADDRESS], [POSTCODE]

Tenant Ms [APPELLANT]

1. The rent is: £ 1100.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 22 September 2023

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

4. Date assured tenancy commenced 22 February 2021

5. Length of the term or rental period Monthly

6. Allocation of liability for repairs Landlord

7. Furniture provided by landlord or superior landlord

8. Description of premises 3 bedroom terraced house.

[NAME] of Decision 20 November 2023

© CROWN COPYRIGHT 2023

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : CHI/29UN/MNR/2023/0224 Property : 190 [ADDRESS] [POSTCODE]

Applicant Tenant : Ms [COUNSEL] :

None

Respondent Landlord : Ms [COUNSEL] : None Type of Application :

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

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

20th November 2023

DECISION

CHI/29UN/MNR/2023/0224

2 Summary of Decision 1. On 20th November 2023 the Tribunal determined a market rent of £1,100 per month to take effect from 22nd 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 17th August 2023 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £1,200 per month in place of the existing rent of £925 per month to take effect from 22nd September 2023. The notice complied with the legal requirements.

4. On 8th September 2023 the Tenant applied 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 3rd October 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. Neither party made any further submission to the Tribunal.

8. Neither party objected to the matter being determined without an oral hearing, so the Tribunal determined the case on 20th November 2023 based on the written documents received. The Property 9. From the information given in the papers and available on the internet, the property comprises an inner-terraced house within a residential area on the south-west outskirts of Westgate-on-Sea. The front elevation is rendered and the roof is slate covered.

10. There are local shops in Westgate-on-Sea with more extensive amenities at Margate or Birchington.

11. The Energy Performance Rating is ‘D’ and the certificate states that the property is double-glazed and has gas-fired central heating. Submissions 12. The initial tenancy began on 22nd February 2021 at a rent of £900 per month.

13. The Tenant says in her application that she has upgraded the garden, states that several doors do not operate as they should, that she has installed a shower

CHI/29UN/MNR/2023/0224

3 screen, that the electrics are poor, and some waste pipes do not function properly. 14. The Tenant also states that there are some damp/mould problems and that she has been served a section 21 Notice to vacate the property. 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 [NAME], or (ii) was carried out pursuant to an obligation to his [NAME] 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

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4 (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 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, and notwithstanding the lack of representations from the Landlord, it decided that it could do so.

16. The Tribunal noted that the property is currently being offered for sale and the Tribunal was able to view details for the property, with photographs, on line.

17. 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.

18. Having carefully considered the representations from the parties and associated correspondence and using its own judgement and knowledge of rental values in north Kent, 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 £1,150 per month which reflects the fact that the Bathroom is on the ground floor which does not suit many prospective tenants.

19. In addition, the Tribunal needs to reflect the Tenant’s improvements including the provision of the shower screen and should also reflect the general condition as described by the Tenant. These had not been challenged by the Landlord.

20. Using its experience the Tribunal decided that the following adjustments should be made: Tenant’s improvements £10 General condition including damp/mould £40

____ TOTAL per month £50

21. 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.

CHI/29UN/MNR/2023/0224

5

Determination 22. 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 £1,100 per month. 23. The Tribunal directed that the new rent of £1,100 per month should take effect from 22nd September 2023, this being the date specified in 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. Where possible you should send your application for permission to appeal by email to [EMAIL] as this will enable the First-tier Tribunal Regional office to deal with it more efficiently.

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.